Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Feb. 28, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | MUFG Americas Holdings Corp | |
Entity Central Index Key | 1011659 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $0 | |
Entity Common Stock, Shares Outstanding | 136,330,831 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | UB |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Loans | $2,805 | $2,641 | $2,439 |
Securities | 452 | 469 | 527 |
Other | 13 | 13 | 6 |
Total interest income | 3,270 | 3,123 | 2,972 |
Interest Expense | |||
Deposits | 238 | 248 | 214 |
Commercial paper and other short-term borrowings | 5 | 5 | 9 |
Long-term debt | 165 | 154 | 147 |
Total interest expense | 408 | 407 | 370 |
Net Interest Income | 2,862 | 2,716 | 2,602 |
(Reversal of) provision for credit losses | 6 | -29 | 8 |
Net interest income after (reversal of) provision for credit losses | 2,856 | 2,745 | 2,594 |
Noninterest Income | |||
Service charges on deposit accounts | 203 | 209 | 209 |
Trust and investment management fees | 104 | 135 | 119 |
Trading account activities | 71 | 61 | 101 |
Securities gains, net | 18 | 178 | 108 |
Credit facility fees | 122 | 111 | 105 |
Merchant banking fees | 124 | 93 | 89 |
Brokerage commissions and fees | 53 | 46 | 39 |
Card processing fees, net | 34 | 34 | 32 |
Fees from affiliates | 319 | 0 | 0 |
Other, net | 75 | 9 | 16 |
Total noninterest income | 1,123 | 876 | 818 |
Noninterest Expense | |||
Salaries and employee benefits | 1,785 | 1,631 | 1,479 |
Net occupancy and equipment | 296 | 306 | 267 |
Professional and outside services | 256 | 250 | 228 |
Regulatory assessments | 57 | 74 | 65 |
Intangible asset amortization | 52 | 65 | 81 |
Other | 453 | 451 | 463 |
Total noninterest expense | 2,899 | 2,777 | 2,583 |
Income before income taxes and including noncontrolling interests | 1,080 | 844 | 829 |
Income tax expense | 274 | 195 | 220 |
Net Income including Noncontrolling Interests | 806 | 649 | 609 |
Deduct: Net loss from noncontrolling interests | 19 | 18 | 19 |
Net Income attributable to MUAH | $825 | $667 | $628 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income Attributable to MUAH | $825 | $667 | $628 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Net change in unrealized gains (losses) on cash flow hedges | 5 | -8 | 41 |
Net change in unrealized gains (losses) on investment securities | 183 | -487 | 266 |
Foreign currency translation adjustment | -7 | -4 | 1 |
Net change in gains (losses) on pension and other postretirement benefits | -286 | 389 | -13 |
Total other comprehensive income (loss) | -105 | -110 | 295 |
Comprehensive Income (Loss) Attributable to MUAH | 720 | 557 | 923 |
Comprehensive loss from noncontrolling interests | -19 | -18 | -19 |
Total Comprehensive Income (Loss) | $701 | $539 | $904 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $1,759 | $1,863 |
Interest bearing deposits in banks | 3,930 | 4,329 |
Federal funds sold and securities purchased under resale agreements | 62 | 11 |
Total cash and cash equivalents | 5,751 | 6,203 |
Trading account assets (includes $69 at December 31, 2014 and $8 at December 31, 2013 of assets pledged as collateral) | 1,114 | 851 |
Securities available for sale | 13,724 | 15,817 |
Securities held to maturity (Fair value $8,412 at December 31, 2014 and $6,439 at December 31, 2013) | 8,291 | 6,509 |
Loans held for investment | 76,804 | 68,312 |
Allowance for loan losses | -537 | -568 |
Loans held for investment, net | 76,267 | 67,744 |
Premises and equipment, net | 621 | 688 |
Goodwill | 3,225 | 3,228 |
Other assets | 4,685 | 4,854 |
Total assets | 113,678 | 105,894 |
Deposits: | ||
Noninterest bearing | 30,534 | 26,495 |
Interest bearing | 55,470 | 53,606 |
Total deposits | 86,004 | 80,101 |
Commercial paper and other short-term borrowings | 2,704 | 2,563 |
Long-term debt | 6,972 | 6,547 |
Trading account liabilities | 894 | 540 |
Other liabilities | 1,889 | 1,675 |
Total liabilities | 98,463 | 91,426 |
Commitments, contingencies and guarantees—See Note 20 | ||
MUAH stockholder's equity: | ||
Preferred stock: Authorized 5,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock, par value $1 per share: Authorized 300,000,000 shares, 136,330,831 shares issued and outstanding as of December 31, 2014 and 136,330,830 as of December 31, 2013 | 136 | 136 |
Additional paid-in capital | 7,232 | 7,191 |
Retained earnings | 8,346 | 7,512 |
Accumulated other comprehensive loss | -729 | -624 |
Total MUAH stockholder's equity | 14,985 | 14,215 |
Noncontrolling interests | 230 | 253 |
Total equity | 15,215 | 14,468 |
Total liabilities and equity | $113,678 | $105,894 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Trading account assets pledged as collateral | $69 | $8 |
Fair value of securities held to maturity | $8,412 | $6,439 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $1 | $1 |
Common stock, share authorized | 300,000,000 | 300,000,000 |
Common stock, share issued | 136,330,831 | 136,330,830 |
Common stock, share outstanding | 136,330,831 | 136,330,830 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholder's Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
In Millions, except Share data | |||||||
BALANCE, beginning at Dec. 31, 2011 | $11,801 | $136 | $5,989 | $6,217 | ($809) | $268 | |
BALANCE beginning, shares at Dec. 31, 2011 | 136,330,830 | ||||||
Net income (loss) | 609 | 628 | -19 | ||||
Other comprehensive income (loss), net of tax | 295 | 295 | |||||
Compensation - restricted stock units | 5 | 5 | |||||
Other | 15 | 15 | |||||
Net change | 924 | 5 | 628 | 295 | -4 | ||
BALANCE, ending at Dec. 31, 2012 | 12,725 | 136 | 5,994 | 6,845 | -514 | 264 | |
BALANCE ending, shares at Dec. 31, 2012 | 136,330,830 | ||||||
Net income (loss) | 649 | 667 | -18 | ||||
Other comprehensive income (loss), net of tax | -110 | -110 | |||||
Compensation - restricted stock units | -5 | -5 | |||||
Capital Contribution from BTMU | [1] | 1,200 | 1,200 | ||||
Other | 9 | 2 | 7 | ||||
Net change | 1,743 | 1,197 | 667 | -110 | -11 | ||
BALANCE, ending at Dec. 31, 2013 | 14,468 | 136 | 7,191 | 7,512 | -624 | 253 | |
BALANCE beginning, shares at Dec. 31, 2013 | 136,330,830 | ||||||
Net income (loss) | 806 | 825 | -19 | ||||
Other comprehensive income (loss), net of tax | -105 | -105 | |||||
Compensation - restricted stock units | 10 | 10 | |||||
Capital Contribution from BTMU | [1] | 31 | 31 | ||||
Capital Contribution from BTMU, shares | [1] | 1 | |||||
Other | [1] | 5 | 9 | -4 | |||
Net change | 747 | 41 | 834 | -105 | -23 | ||
Net change, shares | 1 | ||||||
BALANCE, ending at Dec. 31, 2014 | $15,215 | $136 | $7,232 | $8,346 | ($729) | $230 | |
BALANCE ending, shares at Dec. 31, 2014 | 136,330,831 | ||||||
[1] | For additional information on the capital contribution, refer to Note 21 to these consolidated financial statements. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash Flows from Operating Activities: | ||||||
Net income including noncontrolling interests | $806 | $649 | $609 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||
(Reversal of) provision for credit losses | 6 | -29 | 8 | |||
Depreciation, amortization and accretion, net | 324 | 434 | 416 | |||
Stock-based compensation—restricted stock units | 34 | 21 | 5 | |||
Deferred income taxes | 103 | 61 | 81 | |||
Net gains on sales of securities | -18 | -178 | -108 | |||
Net decrease (increase) in trading account assets | -263 | 357 | -74 | |||
Net decrease (increase) in other assets | -71 | -312 | 357 | |||
Net increase (decrease) in trading account liabilities | 354 | -355 | -144 | |||
Net increase (decrease) in other liabilities | 408 | 363 | -531 | |||
Loans originated for sale | -841 | -622 | -211 | |||
Net proceeds from sale of loans originated for sale | 839 | 599 | 148 | |||
Pension and other benefits | -80 | -262 | -26 | |||
Other, net | 21 | -37 | -70 | |||
Total adjustments | 816 | 40 | -149 | |||
Net cash provided by (used in) operating activities | 1,622 | 689 | 460 | |||
Cash Flows from Investing Activities: | ||||||
Proceeds from sales of securities available for sale | 1,376 | 8,340 | 6,845 | |||
Proceeds from paydowns and maturities of securities available for sale | 2,373 | 3,451 | 7,657 | |||
Purchases of securities available for sale | -1,317 | -11,106 | -9,499 | |||
Proceeds from paydowns and maturities of securities held to maturity | 1,047 | 501 | 238 | |||
Purchases of securities held to maturity | -2,845 | -1,682 | -941 | |||
Proceeds from sales of loans | 196 | 254 | 202 | |||
Net decrease (increase) in loans | -8,664 | -4,912 | -4,100 | |||
Net cash acquired from (paid for) acquisitions | 0 | -3,185 | 53 | |||
Other, net | -686 | -192 | -65 | |||
Net cash provided by (used in) investing activities | -8,520 | -8,531 | 390 | |||
Cash Flows from Financing Activities: | ||||||
Net increase (decrease) in deposits | 5,903 | 5,224 | 4,230 | |||
Net increase (decrease) in commercial paper and other short-term borrowings | 141 | 1,200 | -2,670 | |||
Proceeds from Contributed Capital | 0 | 1,200 | 0 | |||
Proceeds from issuance of subordinated debt due to BTMU | 0 | 1,050 | 0 | |||
Proceeds from issuance of long-term debt | 749 | 1,999 | 895 | |||
Repayment of long-term debt | -318 | -2,103 | -2,025 | |||
Other, net | -25 | -25 | 1 | |||
Change in noncontrolling interests | -4 | 9 | 15 | |||
Net cash provided by (used in) financing activities | 6,446 | 8,554 | 446 | |||
Net change in cash and cash equivalents | -452 | 712 | 1,296 | |||
Cash and cash equivalents at beginning of period | 6,203 | 5,491 | 4,195 | |||
Cash and cash equivalents at end of period | 5,751 | 6,203 | 5,491 | |||
Cash Paid During the Period For: | ||||||
Interest | 408 | 396 | 404 | |||
Income taxes, net | 38 | 15 | 207 | |||
Acquisitions: | ||||||
Fair value of assets acquired | 0 | 3,487 | 7,655 | |||
Fair value of liabilities assumed | 0 | 573 | 6,139 | |||
Transfer of assets and liabilities from BTMU: | ||||||
Carrying amount of assets acquired | 70 | [1] | 0 | [1] | 0 | [1] |
Carrying amount of liabilities assumed | 31 | [1] | 0 | [1] | 0 | [1] |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||||||
Securities available for sale transferred to securities held to maturity | 0 | 4,386 | 155 | |||
Net transfer of loans held for investment to loans held for sale | 196 | 246 | 155 | |||
Transfer of loans held for investment to OREO | 28 | 49 | 100 | |||
Carrying amount of securities held to maturity immediately prior to transfer to securities available for sale | $0 | $0 | $1,112 | |||
[1] | For additional information on the transfer of assets and liabilities from BTMU, refer to Note 21 to these consolidated financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Nature of Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies and Nature of Operations | duction | ||||||||||||
MUFG Americas Holdings Corporation (MUAH) is a financial holding company and a bank holding company whose principal subsidiary is MUFG Union Bank, N.A. (MUB). The Company provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. | |||||||||||||
On November 4, 2008, the Company became a privately held company (privatization transaction). All of the Company's issued and outstanding shares of common stock are owned by BTMU. | |||||||||||||
Principles of Consolidation and Basis of Financial Statement Presentation | |||||||||||||
The consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The primary beneficiary of a VIE is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. Results of operations from VIEs are included from the dates that the Company became the primary beneficiary. All intercompany transactions and balances with consolidated entities are eliminated in consolidation. | |||||||||||||
The Company accounts for equity investments over which it exerts significant influence using the equity method of accounting. Non-marketable equity investments where the Company does not exert significant influence are accounted for at cost. Investments accounted for under both the equity method and cost method are included in other assets. | |||||||||||||
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP) The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below. | |||||||||||||
The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management's expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company's results of operations and financial condition in the near term. Significant estimates made by management in the preparation of the Company's financial statements include, but are not limited to, the fair value of assets acquired and liabilities assumed (Note 2), the evaluation of other-than-temporary impairment on investment securities (Note 3), the allowance for credit losses (Note 4), purchased credit-impaired loans (Note 4), goodwill impairment (Note 6), fair value of financial instruments (Note 11), hedge accounting (Note 12), pension accounting (Note 15), and income taxes (Note 17). | |||||||||||||
During 2014, the Company identified that certain noncash items related to the amortization and accretion of interest income and expense on loans held for investment, and activities related to loan syndications, had been reported as cash flows from investing activities but should have been presented as cash flows from operating activities. The loan syndication activities were also incorrectly reported as noncash transfers from loans held for investment to loans held for sale in the supplemental schedule of noncash investing and financing activities. The Company corrected the prior period presentations to conform to the presentation adopted in 2014. The Company has evaluated the effect of the incorrect presentation and determined that the errors were not material, either individually or in the aggregate, to any of the Company’s previously filed annual or quarterly consolidated financial statements. | |||||||||||||
The following tables display the affected line items for 2013 and 2012: | |||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||
(Dollars in millions) | As Previously Reported | Reclassification Amounts | As Revised | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Depreciation, amortization and accretion, net | $ | 509 | $ | (75 | ) | $ | 434 | ||||||
Loans originated for sale | (276 | ) | (346 | ) | (622 | ) | |||||||
Net proceeds from sale of loans originated for sale | 226 | 373 | 599 | ||||||||||
Net cash provided by (used in) operating activities | 737 | (48 | ) | 689 | |||||||||
Cash Flows from Investing Activities: | |||||||||||||
Proceeds from sales of loans | 627 | (373 | ) | 254 | |||||||||
Net decrease (increase) in loans | (5,333 | ) | 421 | (4,912 | ) | ||||||||
Net cash provided by (used in) investing activities | (8,579 | ) | 48 | (8,531 | ) | ||||||||
Cash Flows from Financing Activities: | |||||||||||||
Net cash provided by (used in) financing activities | 8,554 | — | 8,554 | ||||||||||
Net change in cash and cash equivalents | $ | 712 | $ | — | $ | 712 | |||||||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||||||||
Net transfer of loans held for investment to loans held for sale | $ | 592 | $ | (346 | ) | $ | 246 | ||||||
For the Year Ended December 31, 2012 | |||||||||||||
(Dollars in millions) | As Previously Reported | Reclassification Amounts | As Revised | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Depreciation, amortization and accretion, net | $ | 518 | $ | (102 | ) | $ | 416 | ||||||
Loans originated for sale | (58 | ) | (153 | ) | (211 | ) | |||||||
Net proceeds from sale of loans originated for sale | 34 | 114 | 148 | ||||||||||
Net cash provided by (used in) operating activities | 601 | (141 | ) | 460 | |||||||||
Cash Flows from Investing Activities: | |||||||||||||
Proceeds from sales of loans | 316 | (114 | ) | 202 | |||||||||
Net decrease (increase) in loans | (4,355 | ) | 255 | (4,100 | ) | ||||||||
Net cash provided by (used in) investing activities | 249 | 141 | 390 | ||||||||||
Cash Flows from Financing Activities: | |||||||||||||
Net cash provided by (used in) financing activities | 446 | — | 446 | ||||||||||
Net change in cash and cash equivalents | $ | 1,296 | $ | — | $ | 1,296 | |||||||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||||||||
Net transfer of loans held for investment to loans held for sale | $ | 308 | $ | (153 | ) | $ | 155 | ||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents include cash and due from banks, interest bearing deposits in banks, and federal funds sold and securities purchased under resale agreements, which have original maturities less than 90 days. | |||||||||||||
Resale and Repurchase Agreements | |||||||||||||
Transactions involving purchases of securities under agreements to resell (reverse repurchase agreements or reverse repos) or sales of securities under agreements to repurchase (repurchase agreements or repos) are accounted for as collateralized financings except where the Company does not have an agreement to sell (or purchase) the same or substantially the same securities before maturity at a fixed or determinable price. These agreements accounted for as collateralized financings are recorded at the amounts at which the securities were acquired or sold, plus accrued interest, and are carried at amortized cost. The Company's policy is to obtain possession of collateral with a market value equal to or in excess of the principal amount financed under resale agreements. Collateral is valued daily, and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. | |||||||||||||
Trading Account Assets and Liabilities | |||||||||||||
Trading account assets and liabilities are recorded at fair value and include certain securities and derivatives. Securities are classified as trading when management acquires them with the intent to hold for short periods of time in order to take advantage of anticipated changes in fair values or as an accommodation to customers. Substantially all of the securities have a high degree of liquidity and a readily determinable fair value. Interest on securities classified as trading is included in interest income, and realized gains and losses from sale and unrealized fair value adjustments are recognized in noninterest income. | |||||||||||||
Derivatives included in trading account assets and liabilities are entered into for trading purposes or as an accommodation to customers. Contracts primarily include interest rate swaps and options, commodity swaps and options, foreign exchange contracts and equity options relating to our market-linked CD product. The Company nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Changes in fair values and realized income or expense for trading asset and liability derivatives are included in noninterest income. | |||||||||||||
Securities | |||||||||||||
Securities are classified based on management's intent and are recorded on the consolidated balance sheet as of the trade date, when acquired in a regular-way trade. Debt securities for which management has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Debt securities and equity securities with readily determinable fair values that are not classified as trading assets or held to maturity are classified as available for sale and are carried at fair value, with the unrealized gains or losses reported net of taxes as a component of AOCI in stockholder's equity until realized. | |||||||||||||
Interest income on debt securities classified as either available for sale or held to maturity includes the amortization of premiums and the accretion of discounts using a method that produces a level yield and is included in interest income on securities. | |||||||||||||
Debt securities in the available for sale and held to maturity portfolios are subject to impairment testing when their fair value is lower than amortized cost at the end of a reporting period. | |||||||||||||
Realized gains and losses on the sale of available for sale securities are included in net interest income. The specific identification method is used to calculate realized gains and losses on sales. | |||||||||||||
Securities available for sale that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral. | |||||||||||||
Other-than-Temporary Impairment | |||||||||||||
Debt securities available for sale and debt securities held to maturity are subject to impairment testing when a security's fair value is lower than its amortized cost. Debt securities with unrealized losses are considered other-than-temporarily impaired if we intend to sell the debt security, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or if we do not expect to recover the entire amortized cost basis of the security. If we intend to sell the security, or if it is more likely than not that we will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if we do not expect to sell a debt security we must evaluate the expected cash flows to be received and determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts related to factors other than credit losses are recorded in other comprehensive income. For further information on our other-than-temporary impairment analysis, see Note 3 to our Consolidated Financial Statements in this Form 10-K. | |||||||||||||
Marketable equity securities are subject to testing for other-than-temporary impairment when there is a severe or sustained decline in market price below the amount recorded for that investment. The Company considers the issuer's financial condition, capital strength, and near-term prospects in assessing whether other-than-temporary impairment exists. An other-than-temporary impairment results in a write-down recognized in earnings equal to the entire difference between the carrying amount and fair value of the equity security. | |||||||||||||
Loans Held for Investment, Purchased Credit-Impaired Loans, Other Acquired Loans and Loans Held for Sale | |||||||||||||
Loans held for investment are reported at the principal amounts outstanding, net of charge-offs, unamortized nonrefundable loan fees, direct loan origination costs, purchase premiums and discounts, and a historical fair value adjustment related to the Company's privatization transaction. Where loans are held for investment, the net basis adjustment excluding charge-offs on the loan is generally recognized in interest income on an effective yield basis over the contractual loan term. | |||||||||||||
Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest. Loans are generally placed on nonaccrual when such loans have become contractually past due 90 days with respect to principal or interest. Past due status is determined based on the contractual terms of the loan and the number of payment cycles since the last payment date. Interest accruals are continued past 90 days for certain small business loans and consumer installment loans, which are charged off at 120 days. For the commercial loan portfolio segment, interest accruals are also continued for loans that are both well-secured and in the process of collection. | |||||||||||||
When a loan is placed on nonaccrual status, all previously accrued but uncollected interest is reversed against current period interest income. When full collection of the outstanding principal balance is in doubt, subsequent payments received are first applied to unpaid principal and then to uncollected interest. A loan may be returned to accrual status at such time as the loan is brought fully current as to both principal and interest, and such loan is considered to be fully collectible on a timely basis. The Company's policy also allows management to continue the recognition of interest income on certain loans placed on nonaccrual status. This portion of the nonaccrual portfolio is referred to as "Cash Basis Nonaccrual" under which the accrual of interest is suspended and interest income is recognized only when collected. This policy applies to consumer portfolio segment loans and commercial portfolio segment loans that are well-secured and in management's judgment are considered to be fully collectible but the timely collection of payments is in doubt. | |||||||||||||
A TDR is a restructuring of a loan in which the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan subject to such a restructuring is accounted for as a TDR. A TDR typically involves a modification of terms such as a reduction of the interest rate below the current market rate for a loan with similar risk characteristics or extending the maturity date of the loan without corresponding compensation or additional support. The Company measures impairment of a TDR using the methodology described for individually impaired loans (see "Allowance for Loan Losses" below). For the consumer portfolio segment, TDRs are initially placed on nonaccrual and typically, a minimum of six consecutive months of sustained performance is required before returning to accrual status. For the commercial portfolio segment, the Company generally determines accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, the consideration of demonstrated performance by the borrower under the previous terms. | |||||||||||||
Except for certain transactions between entities under common control, loans acquired in a transfer, including business combinations, are recorded at fair value at the acquisition date, factoring in credit losses expected to be incurred over the life of the loan. | |||||||||||||
For acquired loans where there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments, the loans are accounted for as purchased credit-impaired loans. This guidance requires that the excess of the cash flows initially expected to be collected over the loan's fair value at the acquisition date (i.e., the accretable yield) be accreted into interest income over the loan's estimated remaining life using the effective yield method, provided that the timing and amount of future cash flows is reasonably estimable. Accordingly, such loans are not classified as nonaccrual and are considered to be accruing. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. Accordingly, an allowance for loan losses is not carried over or recorded for purchased credit-impaired loans as of the acquisition date. Substantially all of the remaining purchased credit-impaired loans are aggregated within pools based on common risk characteristics, which results in the pool becoming the unit of account. | |||||||||||||
Subsequent to acquisition of purchased credit-impaired loans, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions that are reflective of current market conditions. If there is a probable decrease in cash flows expected to be collected (other than due to decreases in interest rate indices or changes in prepayments), the Company charges the provision for credit losses, resulting in an increase to the allowance for loan losses. If there is a probable and significant increase in cash flows expected to be collected, the Company will first reverse any previously established allowance for loan losses and then increase interest income as a prospective yield adjustment over the remaining life of the pool of loans, which also has the effect of reclassifying a portion of the nonaccretable difference to accretable yield. The impact of changes in variable interest rates is recognized prospectively as adjustments to interest income. | |||||||||||||
Modifications of purchased credit-impaired loans that are accounted for within loan pools do not result in the removal of these loans from the pool even if the modification would otherwise be considered a TDR. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Accordingly, modifications of loans within such pools are not considered TDRs. | |||||||||||||
For other acquired loans, the purchase premium or discount is accreted to interest income over the remaining contractual life of the loans when the loans are performing, or immediately upon sale or prepayment. | |||||||||||||
Loans held for sale, which are recorded in other assets, are carried at the lower of cost or fair value and measured on an individual basis for commercial loans and on an aggregate basis for residential mortgage loans. Changes in fair value are recognized in other noninterest income. Nonrefundable fees, direct loan origination costs, and purchase premiums and discounts related to loans held for sale are deferred and recognized as a component of the gain or loss on sale. Contractual interest earned on loans held for sale is recognized in interest income. | |||||||||||||
The Company primarily offers two types of leases to customers: 1) direct financing leases where the assets leased are acquired without additional financing from other sources, and 2) leveraged leases where a substantial portion of the financing is provided by debt with no recourse to the Company. Direct financing leases and leverage leases are recorded based on the amount of minimum lease payments receivable, unguaranteed residual value accruing to the benefit of the lessor, unamortized initial direct costs, and are reduced for any unearned income. Leveraged leases are also recorded net of any nonrecourse debt. | |||||||||||||
Allowance for Loan Losses | |||||||||||||
The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable estimated losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current period operating results and decreased by the amount of charge-offs, net of recoveries. The Company's methodology for assessing the appropriateness of the allowance consists of several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, and the unallocated allowance. Management estimates probable losses inherent in the portfolio based on a loss emergence period. The loss emergence period is the estimated average period of time between a material adverse event that affects the creditworthiness of a borrower and the subsequent recognition of a loss. Updates of the loss emergence period are performed when significant events cause management to reexamine data. Management develops and documents its systematic methodology for determining the allowance for loan losses by first dividing its portfolio into segments—the commercial segment, consumer segment and purchased credit-impaired loans. The Company further divides the portfolio segments into classes based on initial measurement attributes, risk characteristics or its method of monitoring and assessing credit risk. The classes for the Company include commercial and industrial, commercial mortgage, construction, residential mortgage, home equity and other consumer loans, and purchased credit-impaired loans. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. | |||||||||||||
For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by applying loss factors to outstanding loans and most unused commitments, based on the internal risk rating of such loans. Loss factors are based on historical loss experience and may be adjusted for significant qualitative considerations that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Those qualitative considerations are based upon management's evaluation of certain risks that may be identified from current conditions and developments within the portfolio that are not directly measured in the computation of the loss factors. Loss factors for individually graded credits are derived from a loan migration application that tracks historical losses over an economic cycle, which management believes captures the inherent losses in our loan portfolio. | |||||||||||||
For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. The Company estimates the allowance for loans collectively evaluated for impairment based on forecasted losses. For the purchased credit-impaired segment, we charge the provision for loan losses, resulting in an increase to the allowance for loan losses when there is a probable decrease in cash flows expected to be collected. | |||||||||||||
The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses based on incurred loss events that are currently not reflected in the derived loss factors. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and environmental conditions change. | |||||||||||||
Estimates of cash flows expected to be collected for purchased credit-impaired loans are updated each reporting period. If there is a probable decrease in expected cash flows to be collected after acquisition (other than due to decreases in interest rate indices or changes in voluntary prepayments), the Company charges the provision for loan losses and establishes an allowance for loan losses. | |||||||||||||
The Company individually evaluates for impairment larger nonaccruing loans within the commercial portfolio. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. Loans are considered impaired when the evaluation of current information regarding the borrower's financial condition, loan collateral, and cash flows indicates that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including interest payments. The amount of impairment is measured using the present value of expected future cash flows discounted at the loan's effective rate, the loan's observable market price, or the fair value of the collateral, if the loan is collateral dependent. | |||||||||||||
The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments. | |||||||||||||
Significant risk characteristics considered in estimating the allowance for credit losses include the following: | |||||||||||||
• | Commercial and industrial—industry specific economic trends and individual borrower financial condition | ||||||||||||
• | Construction and commercial mortgage loans—type of property (i.e., residential, commercial, industrial), geographic concentrations, and risks and individual borrower financial condition | ||||||||||||
• | Residential mortgage and consumer—historical and expected future charge-offs, borrower's credit, property collateral, and loan characteristics | ||||||||||||
Loans are charged-off in whole or in part when they are considered to be uncollectible. Loans in the commercial loan portfolio segment are generally considered uncollectible based on an evaluation of borrower financial condition as well as the value of any collateral. Loans in the consumer portfolio segment are generally considered uncollectible based on past due status or the execution of certain TDR modifications such as discharge through Chapter 7 bankruptcy and the value of any collateral. Recoveries of amounts previously charged off are recorded as a recovery to the allowance for loan losses. | |||||||||||||
Allowance for Losses on Unfunded Credit Commitments | |||||||||||||
The Company maintains an allowance for losses on unfunded credit commitments to absorb losses inherent in those commitments upon funding. The Company's methodology for assessing the appropriateness of this allowance is the same as that used for the allowance for loan losses (see "Allowance for Loan Losses" above) and incorporates an assumption based upon historical experience of likely utilization of the commitment. The allowance for losses on unfunded credit commitments is classified as other liabilities and the change in this allowance is recognized in the provision for credit losses. Losses on unfunded credit commitments are identified when exposures committed to customers facing difficulty are drawn upon, and subsequently result in charge-offs. | |||||||||||||
Premises and Equipment | |||||||||||||
Premises and equipment are carried at cost, less accumulated depreciation and amortization, impairment, and fair value adjustments related to the Company's privatization transaction. Depreciation and amortization are calculated using the straight-line method over the estimated useful life of each asset. Lives of premises range from ten to fifty years; lives of furniture, fixtures and equipment range from three to eight years. Leasehold improvements are amortized over the term of the respective lease or the estimated useful life of the improvement, whichever is shorter. | |||||||||||||
Long-lived assets that are held for use are evaluated periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is determined if the expected undiscounted future cash flows of a long-lived asset or group of assets is lower than its carrying amount. In the event of impairment, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset. The impairment loss is recognized in noninterest expense. Restoration of a previously recognized impairment loss is prohibited. | |||||||||||||
Goodwill and Identifiable Intangible Assets | |||||||||||||
Intangible assets represent purchased assets that lack physical substance and can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold, exchanged, or licensed. Intangible assets are recorded at fair value at the date of acquisition. | |||||||||||||
Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances. Intangible assets that have finite lives, which include core deposit intangibles, customer relationships, non-compete agreements and trade names, are amortized either using the straight-line method or a method that patterns the manner in which the economic benefit is consumed. Intangible assets are amortized over their estimated periods of benefit, which range from three to forty years. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | |||||||||||||
Goodwill is assessed for impairment at least annually at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill. Goodwill impairment is recognized through a direct write down to its carrying amount and subsequent reversals of goodwill impairment are prohibited. | |||||||||||||
FDIC Indemnification Asset | |||||||||||||
In conjunction with the FDIC-assisted acquisitions of Frontier and Tamalpais in 2010, the Company entered into loss share agreements with the FDIC. Under the terms of the purchase and assumption and loss share agreements, the FDIC will reimburse the Company for certain losses on the covered assets, subject to specific compliance, servicing, notification and reporting requirements. | |||||||||||||
At the date of the acquisitions, the Company recorded an indemnification asset at fair value based on the present value of cash flows expected to be collected from the FDIC under the loss share agreements. Subsequent to acquisition, the indemnification asset is accounted for on the same basis as the related FDIC covered assets and is linked to the losses on those assets. The difference between the carrying amount and the undiscounted cash flows that the Company expects to collect from the FDIC is amortized into noninterest income over the life of the FDIC indemnification asset. Any increases in expected cash flows of covered loans due to decreases in expected credit losses are amortized over the lesser of the contractual term of the FDIC loss share agreement and the remaining life of the indemnified assets. Any decreases in cash flows of the covered loans due to increases in expected credit losses will increase the FDIC indemnification asset and adjust the provision for credit losses. At the date of the acquisitions, the Company also recorded a standalone liability for the FDIC's ability to clawback a portion of the loss share reimbursements paid to the Company. Because such consideration is contingently payable to the FDIC, the Company accounts for this liability as a form of contingent consideration that is recorded at fair value through noninterest expense. | |||||||||||||
Other Real Estate Owned | |||||||||||||
OREO represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. OREO is initially recorded in other assets at the date physical possession is received at the fair value as established by a current appraisal, adjusted for estimated costs to sell the asset. Any write-down on the date of transfer from loan classification is charged to the allowance for loan losses. Subsequently, OREO is measured at the lower of the acquisition date fair value or fair value less estimated costs to sell the asset. OREO values are reviewed on an ongoing basis and subsequent declines in an individual property's fair value are recognized in earnings in the current period or in certain instances as a charge to the allowance for loan losses. The net operating results from these assets are included in the current period in noninterest expense as foreclosed asset expense. | |||||||||||||
Other Investments | |||||||||||||
The Company invests in private equity investments, which include direct investments in private companies. These nonmarketable equity investments are initially recorded at cost and are accounted for using the cost or equity method of accounting depending on whether the Company has significant influence over the investee. Under the equity method, the investment is adjusted for the Company's share of the investee's net income or loss for the period. Under the cost method, dividends received are recognized in other noninterest income, and dividends received in excess of the investee's earnings are considered a return of investment and are recorded as a reduction of investment cost. These investments are evaluated for other-than-temporary impairment if events or conditions indicate that it is probable that the carrying amount of the investment will not be fully recovered in the foreseeable future. If an investment is determined to be other-than-temporarily impaired, it is written down to its fair value through earnings. Fair value is estimated based on a company's business model, current and projected financial performance, capital needs and our exit strategy. As a practical expedient, fair value can also be estimated using the net asset value of the fund. All of these investments are included within other assets and any other-than-temporary impairment is recognized in other noninterest income. | |||||||||||||
The Company invests in limited liability partnerships and other entities operating qualified affordable housing projects. These LIHC investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. The unguaranteed LIHC investments are initially recorded at cost, and subsequently accounted for under the equity method of accounting with equity method losses recognized through noninterest expense. These investments are reviewed periodically for impairment. | |||||||||||||
The Company invests in guaranteed LIHC investments where the availability of tax credits are guaranteed by a creditworthy entity. The investments are initially recorded at cost. When certain criteria are met, the investment is amortized over the period the tax credits are allocated to provide a constant effective yield, as a component of income tax expense. In other instances, the investment is accounted for under the equity method of accounting with equity method losses recorded in noninterest expense. These investments are reviewed periodically for impairment. | |||||||||||||
The Company also invests in limited liability entities and trusts that operate renewable energy projects, either directly or indirectly. Tax credits, taxable income and distributions associated with these renewable energy projects may be allocated to investors according to the terms of the partnership agreements. These investments are accounted for under the equity method and are reviewed periodically for impairment, considering projected operating results and realizability of tax credits. | |||||||||||||
Derivative Instruments Used in Hedging Relationships | |||||||||||||
The Company enters into a variety of derivative contracts as a means of managing the Company's interest rate exposure and designates such derivatives under qualifying hedge relationships. All such derivative instruments are recorded at fair value and are included in other assets or other liabilities. The Company offsets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the company and the derivative counterparty. | |||||||||||||
At hedge inception, the Company designates a derivative instrument as a hedge of the fair value of a recognized asset or liability (i.e., fair value hedge), or a hedge of the variability in the expected future cash flows associated with either an existing recognized asset or liability or a probable forecasted transaction (i.e., cash flow hedge). | |||||||||||||
Where hedge accounting is applied at hedge inception, the Company formally documents its risk management objective and strategy for undertaking the hedge, which includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the hedge's effectiveness will be assessed prospectively and retrospectively. Both at the inception of the hedge and on an ongoing basis, the hedging instrument must be highly effective in offsetting changes in fair values or cash flows of the hedged item in order to qualify for hedge accounting. | |||||||||||||
For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. For cash flow hedges, only ineffectiveness resulting from over-hedging is recorded in earnings as an adjustment to noninterest expense, with other changes in the fair value of the derivative instrument recognized in other comprehensive income. The amount in other comprehensive income is subsequently reclassified to net interest income in the period in which the cash flow from the hedged item is recognized in earnings. If a derivative instrument is no longer determined to be highly effective as a designated hedge, hedge accounting is discontinued and subsequent fair value adjustments of the derivative instrument are recorded in earnings. | |||||||||||||
Transfers of Financial Assets | |||||||||||||
Transfers of financial assets in which the Company has surrendered control over the transferred assets are accounted for as sales. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold significant call options and has not written significant put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of transfer. | |||||||||||||
Transfer Pricing | |||||||||||||
As a result of the business integration initiative, employees of the Company perform management and support services to BTMU in connection with the operation and administration of BTMU’s businesses in the Americas. In consideration for the services provided, BTMU pays the Company fees under a master services agreement, which reflects market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Revenue is recognized based on the gross amount billed to BTMU without netting the associated costs to perform those services. Gross presentation is deemed appropriate in these instances as the Company acts as a principal when providing these services directly to BTMU. | |||||||||||||
Operating Leases | |||||||||||||
The Company enters into a variety of lease contracts generally for premises and equipment as a lessee. Lease contracts that do not transfer substantially all of the benefits and risks of ownership and do not meet the accounting requirements for capital lease classification are treated as operating leases. The Company accounts for the payments of rent on these contracts on a straight-line basis over the lease term. At inception of the lease term, any periods for which no rents are paid or escalation clauses are stipulated in the lease contract are included in the determination of the rent expense and recognized ratably over the lease term. | |||||||||||||
The Company records liabilities for legal obligations associated with the future retirement of buildings and leasehold improvements at fair value when incurred. The assets are increased by the related liability and depreciated over the shorter of the estimated useful life of that asset or the lease term. | |||||||||||||
Income Taxes | |||||||||||||
The Company files consolidated U.S. federal income tax returns, foreign tax returns and various combined and separate company state income tax returns. | |||||||||||||
Management evaluates two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period and includes income tax expense related to the Company's uncertain tax positions. Management determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. A tax position that meets the "more likely than not" recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Foreign taxes paid are generally applied as credits to reduce U.S. federal income taxes payable. Interest and penalties are recognized as a component of income tax expense. | |||||||||||||
Employee Pension and Other Postretirement Benefits | |||||||||||||
The Company provides a variety of pension and other postretirement benefit plans for eligible employees and retirees. Provisions for the costs of these employee pension and other postretirement benefit plans are accrued and charged to expense when the benefit is earned. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's ultimate parent company, MUFG, to employees. Stock-based compensation is measured at fair value on the grant date and is recognized in the Company's results of operations on a straight-line basis over the vesting period. The amortization of stock-based compensation reflects estimated forfeitures adjusted for actual forfeitures experience. | |||||||||||||
Business Combinations | |||||||||||||
The Company accounts for all business combinations using the acquisition method of accounting. Except for certain transactions between entities under common control, assets and liabilities acquired are recorded at fair value at the acquisition date, with the excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) recorded as goodwill. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. The recognition at the acquisition date of an allowance for loan losses is not carried over or recorded as of acquisition date, as credit-related factors are incorporated directly into the fair value measurement of the loans. | |||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||
Accounting for Investments in Qualified Affordable Housing Projects | |||||||||||||
In January 2014, the FASB issued ASU 2014-1, Accounting for Investments in Qualified Affordable Housing Projects, which amends guidance on the accounting for investments in qualified affordable housing projects and permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method, if certain conditions are met. Under the proportional amortization method, reporting entities amortize the initial cost of the investment in proportion to tax credits and tax benefits received and recognize the amortization as a component of income tax expense. This guidance is effective for interim and annual periods beginning on January 1, 2015 with early adoption permitted. The guidance is required to be applied retrospectively to all periods presented upon adoption. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | |||||||||||||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |||||||||||||
In January 2014, the FASB issued ASU 2014-4, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which provides guidance on when an in-substance repossession or foreclosure of residential real estate has occurred and when a creditor should derecognize the consumer mortgage loan and recognize the residential real estate. The guidance clarifies that an in-substance repossession or foreclosure occurs upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. In addition, the standard requires additional interim and annual disclosures. The guidance is effective for interim and annual periods beginning on January 1, 2015, with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | |||||||||||||
Presentation of Financial Statements and Property, Plant and Equipment and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |||||||||||||
In April 2014, the FASB issued ASU 2014-8, Presentation of Financial Statements and Property, Plant and Equipment and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the criteria for reporting discontinued operations and requires additional disclosures for discontinued operations which meet the new criteria. The amendments in ASU 2014-8 limit discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have or will have a major effect on an entity’s operations and financial results. The guidance is effective for interim and annual periods beginning on January 1, 2015 with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
In May 2014, the FASB issued ASU 2014-9, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts, and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning on January 1, 2017. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. | |||||||||||||
Transfers and Servicing - Amendments to Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure | |||||||||||||
In June 2014, the FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. Additionally, the guidance requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. It also requires enhanced disclosures about repurchase agreements and other similar transactions. The guidance is effective on January 1, 2015. Earlier application is prohibited. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | |||||||||||||
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | |||||||||||||
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the completion of the employee’s requisite service period is a performance condition under the accounting guidance for share-based awards. The standard clarifies that the performance target would not be reflected in estimating the fair value of the award at the grant date. Instead, compensation cost for the award would be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. | |||||||||||||
Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure | |||||||||||||
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure, which provides guidance on the accounting for the classification of foreclosed loans that are fully-government-guaranteed. The guidance clarifies that a residential mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the loan has both of the following characteristics: (1) The loan has a government guarantee that is not separable from the loan before foreclosure entitling the creditor to the full unpaid principal balance of the loan, and (2) At the time of foreclosure, the creditor has the intent to make a claim on the guarantee and the ability to recover the full unpaid principal balance of the loan through the guarantee. The guidance is effective for interim and annual periods beginning on January 1, 2015, with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | |||||||||||||
Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity | |||||||||||||
In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, which provides guidance on identifying whether the host contract in certain hybrid instruments is in the form of debt or equity. Such identification impacts the analysis of whether an embedded derivative exists in the instrument. The standard requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). Under this approach, an entity would determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or result of operations. | |||||||||||||
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | |||||||||||||
In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which eliminates the need to determine whether to classify an item as an extraordinary item in the income statement. Under current guidance, a reporting entity is required to separately classify, present and disclose extraordinary events apart from events that are unusual in nature or occur infrequently (but not both). The existing presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be expanded to include items that are both unusual in nature and occur infrequently. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. The guidance may be applied either prospectively or retrospectively. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. | |||||||||||||
Amendments to the Consolidation Analysis | |||||||||||||
In February 2015, the FASB issued ASU 2015-02, which is intended to improve current GAAP by making changes to targeted areas of the consolidation guidance. This standard simplifies current GAAP as it reduces the number of consolidation models by eliminating specialized consolidation guidance for certain investment funds that are exempt from applying the VIE model. The standard also changes the determination of whether limited partnerships and similar entities are VIEs or voting interest entities, the evaluation of the fees paid to decision makers and the application of the related-party guidance in determining whether a controlling financial interest exists. The guidance is effective for periods beginning on January 1, 2016, with early adoption permitted. The standard may be applied using a modified or full retrospective approach. Management is currently evaluating the impact to the Company’s financial position and results of operations. |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations |
Acquisition of PB Capital Corporation | |
During the second quarter of 2013, the Company acquired PB Capital Corporation's institutional CRE lending division for $3.7 billion in cash. The acquisition expands the Company's CRE presence in the U.S., and provides geographic and asset class diversification. Excluding the effects of purchase accounting adjustments, the Company acquired approximately $3.5 billion in loans. The final fair value of the assets acquired totaled $3.4 billion, resulting in goodwill of $238 million, which was allocated to the Company's Commercial Banking reporting segment. | |
Other Acquisitions | |
In November 2013, we completed the acquisition of First Bank Association Bank Services, a unit of First Bank, which provides a full range of banking services to homeowners associations and community management companies. We acquired approximately $570 million in deposits in this transaction. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities are presented below. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 7,649 | $ | 2 | $ | 91 | $ | 7,560 | |||||||||||||||||||||||||||||
Privately issued | 166 | 3 | 1 | 168 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,689 | 15 | 13 | 1,691 | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2,527 | 4 | 37 | 2,494 | |||||||||||||||||||||||||||||||||
Other | 8 | 1 | — | 9 | |||||||||||||||||||||||||||||||||
Asset Liability Management securities | 12,039 | 25 | 142 | 11,922 | |||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 1,719 | 49 | 27 | 1,741 | |||||||||||||||||||||||||||||||||
Other | 53 | — | 1 | 52 | |||||||||||||||||||||||||||||||||
Equity securities | 8 | 2 | 1 | 9 | |||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 13,819 | $ | 76 | $ | 171 | $ | 13,724 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 73 | $ | — | $ | — | $ | 73 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | 9,194 | 2 | 296 | 8,900 | |||||||||||||||||||||||||||||||||
Privately issued | 220 | 4 | 2 | 222 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,947 | 8 | 85 | 1,870 | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2,670 | 25 | 22 | 2,673 | |||||||||||||||||||||||||||||||||
Other | 34 | 1 | — | 35 | |||||||||||||||||||||||||||||||||
Asset Liability Management securities | 14,138 | 40 | 405 | 13,773 | |||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 1,968 | 35 | 43 | 1,960 | |||||||||||||||||||||||||||||||||
Other | 81 | — | 5 | 76 | |||||||||||||||||||||||||||||||||
Equity securities | 7 | 1 | — | 8 | |||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 16,194 | $ | 76 | $ | 453 | $ | 15,817 | |||||||||||||||||||||||||||||
The Company's securities available for sale with a continuous unrealized loss position at December 31, 2014 and 2013 are shown below, identified for periods less than 12 months and 12 months or more. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 611 | $ | 1 | $ | 6,258 | $ | 90 | $ | 6,869 | $ | 91 | |||||||||||||||||||||||||
Privately issued | 9 | — | 49 | 1 | 58 | 1 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 143 | — | 842 | 13 | 985 | 13 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 657 | 6 | 1,481 | 31 | 2,138 | 37 | |||||||||||||||||||||||||||||||
Other | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||
Asset Liability Management securities | 1,420 | 7 | 8,631 | 135 | 10,051 | 142 | |||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 75 | 3 | 937 | 24 | 1,012 | 27 | |||||||||||||||||||||||||||||||
Other | — | — | 22 | 1 | 22 | 1 | |||||||||||||||||||||||||||||||
Equity securities | 1 | 1 | 5 | — | 6 | 1 | |||||||||||||||||||||||||||||||
Total securities available for sale | $ | 1,496 | $ | 11 | $ | 9,595 | $ | 160 | $ | 11,091 | $ | 171 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 8,508 | $ | 293 | $ | 147 | $ | 3 | $ | 8,655 | $ | 296 | |||||||||||||||||||||||||
Privately issued | 72 | 2 | 18 | — | 90 | 2 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,274 | 80 | 58 | 5 | 1,332 | 85 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 1,879 | 21 | 10 | 1 | 1,889 | 22 | |||||||||||||||||||||||||||||||
Other | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||
Asset Liability Management securities | 11,733 | 396 | 234 | 9 | 11,967 | 405 | |||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 537 | 18 | 778 | 25 | 1,315 | 43 | |||||||||||||||||||||||||||||||
Other | 15 | 1 | 34 | 4 | 49 | 5 | |||||||||||||||||||||||||||||||
Equity Securities | 5 | — | — | — | 5 | — | |||||||||||||||||||||||||||||||
Total securities available for sale | $ | 12,290 | $ | 415 | $ | 1,046 | $ | 38 | $ | 13,336 | $ | 453 | |||||||||||||||||||||||||
At December 31, 2014, the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost. | |||||||||||||||||||||||||||||||||||||
Agency RMBS consist of securities guaranteed by a U.S. government agency or a government-sponsored agency such as Fannie Mae, Freddie Mac, and Ginnie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency RMBS resulted from changes in interest rates and not from changes in credit quality. At December 31, 2014, the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers' guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses. | |||||||||||||||||||||||||||||||||||||
CMBS are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on CMBS resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2014, the Company expects to recover the entire amortized cost basis of these securities. | |||||||||||||||||||||||||||||||||||||
The CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of December 31, 2014, the Company expects to recover the entire amortized cost basis of these securities. | |||||||||||||||||||||||||||||||||||||
Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimated the unrealized loss projections for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying obligor or collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of December 31, 2014, the Company expects to recover the entire amortized cost basis of these securities. | |||||||||||||||||||||||||||||||||||||
The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | One Year or | Over One Year | Over Five Years | Over Ten Years | Total Fair | ||||||||||||||||||||||||||||||||
Less | Through | Through | Value | ||||||||||||||||||||||||||||||||||
Five Years | Ten Years | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | — | $ | 13 | $ | 458 | $ | 7,089 | $ | 7,560 | |||||||||||||||||||||||||||
Privately issued | — | 4 | — | 164 | 168 | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | 36 | 1,655 | 1,691 | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 30 | 80 | 572 | 1,812 | 2,494 | ||||||||||||||||||||||||||||||||
Other | — | 2 | 7 | — | 9 | ||||||||||||||||||||||||||||||||
Asset Liability Management securities | 30 | 99 | 1,073 | 10,720 | 11,922 | ||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 72 | 547 | 663 | 459 | 1,741 | ||||||||||||||||||||||||||||||||
Other | 5 | 12 | 4 | 31 | 52 | ||||||||||||||||||||||||||||||||
Total debt securities available for sale | $ | 107 | $ | 658 | $ | 1,740 | $ | 11,210 | $ | 13,715 | |||||||||||||||||||||||||||
The proceeds from sales of securities available for sale and gross realized gains and losses for the years ended December 31, 2014, 2013 and 2012 are shown below. The specific identification method is used to calculate realized gains and losses on sales. | |||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 1,376 | $ | 8,340 | $ | 6,845 | |||||||||||||||||||||||||||||||
Gross realized gains | 23 | 190 | 113 | ||||||||||||||||||||||||||||||||||
Gross realized losses | — | 3 | 2 | ||||||||||||||||||||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||||||||||||
The securities held to maturity consist of U.S. Treasury securities and U.S. government-sponsored agency securities. Management has asserted the positive intent and ability to hold these securities to maturity. At December 31, 2014 and 2013, the amortized cost, gross unrealized gains and losses recognized in Other Comprehensive Income (OCI), carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Recognized in | Not Recognized in | ||||||||||||||||||||||||||||||||||||
OCI | OCI | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Carrying | Gross | Gross | Fair | ||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Amount | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 486 | $ | — | $ | — | $ | 486 | $ | 3 | $ | — | $ | 489 | |||||||||||||||||||||||
U.S. government-sponsored agencies | 125 | — | — | 125 | — | — | 125 | ||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | 6,002 | 6 | 66 | 5,942 | 76 | 5 | 6,013 | ||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,820 | — | 82 | 1,738 | 53 | 6 | 1,785 | ||||||||||||||||||||||||||||||
Total securities held to maturity | $ | 8,433 | $ | 6 | $ | 148 | $ | 8,291 | $ | 132 | $ | 11 | $ | 8,412 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Recognized in | Not Recognized in | ||||||||||||||||||||||||||||||||||||
OCI | OCI | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Carrying | Gross | Gross | Fair | ||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Amount | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | $ | 5,065 | $ | 7 | $ | 77 | $ | 4,995 | $ | 8 | $ | 69 | $ | 4,934 | |||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,606 | — | 92 | 1,514 | 3 | 12 | 1,505 | ||||||||||||||||||||||||||||||
Total securities held to maturity | $ | 6,671 | $ | 7 | $ | 169 | $ | 6,509 | $ | 11 | $ | 81 | $ | 6,439 | |||||||||||||||||||||||
For securities held to maturity, the amount recognized in OCI primarily reflects the unrealized gains or losses at date of transfer to the held to maturity classification, net of amortization. Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. | |||||||||||||||||||||||||||||||||||||
The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2014 and 2013 are shown below, separately for periods less than 12 months and 12 months or more. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | ||||||||||||||||||||||||||||
Value | in OCI | in OCI | Value | in OCI | in OCI | Value | in OCI | in OCI | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies—residential mortgage backed securities | $ | 399 | $ | — | $ | 1 | $ | 2,341 | $ | 66 | $ | 4 | $ | 2,740 | $ | 66 | $ | 5 | |||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 134 | — | — | 1,552 | 82 | 6 | 1,686 | 82 | 6 | ||||||||||||||||||||||||||||
Total securities held to maturity | $ | 533 | $ | — | $ | 1 | $ | 3,893 | $ | 148 | $ | 10 | $ | 4,426 | $ | 148 | $ | 11 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | ||||||||||||||||||||||||||||
Value | in OCI | in OCI | Value | in OCI | in OCI | Value | in OCI | in OCI | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | $ | 3,873 | $ | 76 | $ | 68 | $ | 54 | $ | 1 | $ | 1 | $ | 3,927 | $ | 77 | $ | 69 | |||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,016 | 46 | 10 | 489 | 46 | 2 | $ | 1,505 | $ | 92 | $ | 12 | |||||||||||||||||||||||||
Total securities held to maturity | $ | 4,889 | $ | 122 | $ | 78 | $ | 543 | $ | 47 | $ | 3 | $ | 5,432 | $ | 169 | $ | 81 | |||||||||||||||||||
The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Over One Year | Over Five Years | Over Ten Years | Total | ||||||||||||||||||||||||||||||||||
Through Five Years | Through Ten Years | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||||||||||||||||
U.S. Treasury | $ | 486 | $ | 489 | $ | — | $ | — | $ | — | $ | — | $ | 486 | $ | 489 | |||||||||||||||||||||
U.S. government-sponsored agencies | 25 | 25 | 100 | 100 | — | — | 125 | 125 | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | 1 | 1 | — | — | 5,941 | 6,012 | 5,942 | 6,013 | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 49 | 50 | 793 | 836 | 896 | 899 | 1,738 | 1,785 | |||||||||||||||||||||||||||||
Total securities held to maturity | $ | 561 | $ | 565 | $ | 893 | $ | 936 | $ | 6,837 | $ | 6,911 | $ | 8,291 | $ | 8,412 | |||||||||||||||||||||
Securities Pledged as Collateral | |||||||||||||||||||||||||||||||||||||
The Company separately identifies in the consolidated balance sheets, securities pledged as collateral in secured borrowings and other arrangements when the secured party can sell or repledge the securities. If the secured party cannot resell or repledge the securities that have been placed as collateral, those securities are not separately identified. | |||||||||||||||||||||||||||||||||||||
At December 31, 2014, the Company had $7.5 billion of securities available for sale pledged as collateral where the secured party cannot resell or repledge such securities. The following available for sale securities have been pledged: $0.6 billion to secure borrowings, $0.2 billion to support unrealized losses on derivative contracts and $6.7 billion to secure public and trust department deposits. | |||||||||||||||||||||||||||||||||||||
At December 31, 2014, the Company accepted securities as collateral for reverse repurchase agreements of $61 million, none of which has been repledged and $69 million in securities that it has given as collateral for repurchase agreements, none of which has been repledged. At December 31, 2013, the Company accepted securities as collateral for secured lending that it is permitted by contract to sell or repledge of $10 million (none of which have been repledged), respectively. These securities were received as collateral for secured lending activities and are not recognized on the Company's balance sheet. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses | ||||||||||||||||||||||||
The following table provides the outstanding balances of loans at December 31, 2014 and 2013. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Commercial and industrial | $ | 27,623 | $ | 23,528 | |||||||||||||||||||||
Commercial mortgage | 14,016 | 13,092 | |||||||||||||||||||||||
Construction | 1,746 | 905 | |||||||||||||||||||||||
Lease financing | 800 | 854 | |||||||||||||||||||||||
Total commercial portfolio | 44,185 | 38,379 | |||||||||||||||||||||||
Residential mortgage | 28,977 | 25,547 | |||||||||||||||||||||||
Home equity and other consumer loans | 3,117 | 3,280 | |||||||||||||||||||||||
Total consumer portfolio | 32,094 | 28,827 | |||||||||||||||||||||||
Total loans held for investment, before purchased credit-impaired loans | 76,279 | 67,206 | |||||||||||||||||||||||
Purchased credit-impaired loans(1) | 525 | 1,106 | |||||||||||||||||||||||
Total loans held for investment(2) | 76,804 | 68,312 | |||||||||||||||||||||||
Allowance for loan losses | (537 | ) | (568 | ) | |||||||||||||||||||||
Loans held for investment, net | $ | 76,267 | $ | 67,744 | |||||||||||||||||||||
-1 | Includes $126 million and $251 million as of December 31, 2014 and December 31, 2013, respectively, of loans for which the Company will be reimbursed a portion of any future losses under the terms of the FDIC loss share agreements. Of these FDIC covered loans, $9 million and $15 million as of December 31, 2014 and December 31, 2013, respectively, were not accounted for under accounting guidance for loans acquired with deteriorated credit quality. | ||||||||||||||||||||||||
-2 | Includes $151 million and $88 million at December 31, 2014 and December 31, 2013, respectively, for net unamortized discounts and premiums and deferred fees and costs. | ||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||
The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment: | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
(Reversal of) provision for loan losses | 52 | (13 | ) | — | (57 | ) | (18 | ) | |||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | 2 | — | 2 | ||||||||||||||||||||
Other | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||
Loans charged-off | (38 | ) | (11 | ) | (1 | ) | — | (50 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 33 | 4 | 1 | — | 38 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 465 | $ | 49 | $ | 3 | $ | 20 | $ | 537 | |||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 418 | $ | 124 | $ | 1 | $ | 110 | $ | 653 | |||||||||||||||
(Reversal of) provision for loan losses | 18 | (29 | ) | — | (33 | ) | (44 | ) | |||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||
Decrease in allowance covered by FDIC indemnification | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||||
Loans charged-off | (44 | ) | (30 | ) | (3 | ) | — | (77 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 29 | 4 | 12 | — | 45 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 474 | $ | 138 | $ | 17 | $ | 135 | $ | 764 | |||||||||||||||
(Reversal of) provision for loan losses | (25 | ) | 78 | — | (25 | ) | 28 | ||||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
Decrease in allowance covered by FDIC indemnification | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||||
Loans charged-off | (88 | ) | (95 | ) | (13 | ) | — | (196 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 57 | 3 | 5 | — | 65 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 418 | $ | 124 | $ | 1 | $ | 110 | $ | 653 | |||||||||||||||
The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 18 | $ | 16 | $ | — | $ | — | $ | 34 | |||||||||||||||
Collectively evaluated for impairment | 447 | 33 | — | 20 | 500 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 3 | — | 3 | ||||||||||||||||||||
Total allowance for loan losses | $ | 465 | $ | 49 | $ | 3 | $ | 20 | $ | 537 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 164 | $ | 338 | $ | 1 | $ | — | $ | 503 | |||||||||||||||
Collectively evaluated for impairment | 44,021 | 31,756 | — | — | 75,777 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 524 | — | 524 | ||||||||||||||||||||
Total loans held for investment | $ | 44,185 | $ | 32,094 | $ | 525 | $ | — | $ | 76,804 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19 | $ | 20 | $ | — | $ | — | $ | 39 | |||||||||||||||
Collectively evaluated for impairment | 402 | 49 | — | 77 | 528 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 1 | — | 1 | ||||||||||||||||||||
Total allowance for loan losses | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 266 | $ | 339 | $ | 3 | $ | — | $ | 608 | |||||||||||||||
Collectively evaluated for impairment | 38,113 | 28,488 | — | — | 66,601 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 1,103 | — | 1,103 | ||||||||||||||||||||
Total loans held for investment | $ | 38,379 | $ | 28,827 | $ | 1,106 | $ | — | $ | 68,312 | |||||||||||||||
Nonaccrual and Past Due Loans | |||||||||||||||||||||||||
The following table presents nonaccrual loans as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 55 | $ | 44 | |||||||||||||||||||||
Commercial mortgage | 40 | 51 | |||||||||||||||||||||||
Total commercial portfolio | 95 | 95 | |||||||||||||||||||||||
Residential mortgage | 231 | 286 | |||||||||||||||||||||||
Home equity and other consumer loans | 40 | 46 | |||||||||||||||||||||||
Total consumer portfolio | 271 | 332 | |||||||||||||||||||||||
Total nonaccrual loans, before purchased credit-impaired loans | 366 | 427 | |||||||||||||||||||||||
Purchased credit-impaired loans | 9 | 15 | |||||||||||||||||||||||
Total nonaccrual loans | $ | 375 | $ | 442 | |||||||||||||||||||||
Troubled debt restructured loans that continue to accrue interest | $ | 283 | $ | 367 | |||||||||||||||||||||
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above) | $ | 184 | $ | 225 | |||||||||||||||||||||
The following tables show an aging of the balance of loans held for investment, excluding purchased credit-impaired loans, by class as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Aging Analysis of Loans | |||||||||||||||||||||||||
(Dollars in millions) | Current | 30 to | 90 Days or | Total Past Due | Total | ||||||||||||||||||||
89 Days | More Past | ||||||||||||||||||||||||
Past Due | Due | ||||||||||||||||||||||||
Commercial and industrial | $ | 28,392 | $ | 19 | $ | 12 | $ | 31 | $ | 28,423 | |||||||||||||||
Commercial mortgage | 13,991 | 21 | 4 | 25 | 14,016 | ||||||||||||||||||||
Construction | 1,744 | 2 | — | 2 | 1,746 | ||||||||||||||||||||
Total commercial portfolio | 44,127 | 42 | 16 | 58 | 44,185 | ||||||||||||||||||||
Residential mortgage | 28,802 | 112 | 63 | 175 | 28,977 | ||||||||||||||||||||
Home equity and other consumer loans | 3,084 | 20 | 13 | 33 | 3,117 | ||||||||||||||||||||
Total consumer portfolio | 31,886 | 132 | 76 | 208 | 32,094 | ||||||||||||||||||||
Total loans held for investment, excluding purchased credit-impaired loans | $ | 76,013 | $ | 174 | $ | 92 | $ | 266 | $ | 76,279 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Aging Analysis of Loans | |||||||||||||||||||||||||
(Dollars in millions) | Current | 30 to | 90 Days or | Total Past Due | Total | ||||||||||||||||||||
89 Days | More Past | ||||||||||||||||||||||||
Past Due | Due | ||||||||||||||||||||||||
Commercial and industrial | $ | 24,310 | $ | 66 | $ | 6 | $ | 72 | $ | 24,382 | |||||||||||||||
Commercial mortgage | 13,004 | 68 | 20 | 88 | 13,092 | ||||||||||||||||||||
Construction | 891 | 14 | — | 14 | 905 | ||||||||||||||||||||
Total commercial portfolio | 38,205 | 148 | 26 | 174 | 38,379 | ||||||||||||||||||||
Residential mortgage | 25,342 | 114 | 91 | 205 | 25,547 | ||||||||||||||||||||
Home equity and other consumer loans | 3,238 | 23 | 19 | 42 | 3,280 | ||||||||||||||||||||
Total consumer portfolio | 28,580 | 137 | 110 | 247 | 28,827 | ||||||||||||||||||||
Total loans held for investment, excluding purchased credit-impaired loans | $ | 66,785 | $ | 285 | $ | 136 | $ | 421 | $ | 67,206 | |||||||||||||||
Loans 90 days or more past due and still accruing totaled $3 million and $5 million at December 31, 2014 and 2013, respectively. Purchased credit-impaired loans that were 90 days or more past due and still accruing totaled $47 million and $124 million at December 31, 2014 and 2013. | |||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||
Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that are internally risk graded as special mention, substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Adversely classified credits are those that are internally risk graded as substandard or doubtful. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions. | |||||||||||||||||||||||||
The following tables summarize the loans in the commercial portfolio segment and commercial loans within the purchased credit-impaired loans segment monitored for credit quality based on internal ratings, excluding $98 million and $213 million covered by FDIC loss share agreements, at December 31, 2014 and 2013, respectively. The amounts presented reflect unpaid principal balances less charge-offs. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Pass | Special Mention | Classified | Total | |||||||||||||||||||||
Commercial and industrial | $ | 27,471 | $ | 452 | $ | 360 | $ | 28,283 | |||||||||||||||||
Construction | 1,729 | 18 | — | 1,747 | |||||||||||||||||||||
Commercial mortgage | 13,522 | 128 | 183 | 13,833 | |||||||||||||||||||||
Total commercial portfolio | 42,722 | 598 | 543 | 43,863 | |||||||||||||||||||||
Purchased credit-impaired loans | 37 | 38 | 128 | 203 | |||||||||||||||||||||
Total | $ | 42,759 | $ | 636 | $ | 671 | $ | 44,066 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Pass | Special Mention | Classified | Total | |||||||||||||||||||||
Commercial and industrial | $ | 23,346 | $ | 576 | $ | 313 | $ | 24,235 | |||||||||||||||||
Construction | 879 | 14 | — | 893 | |||||||||||||||||||||
Commercial mortgage | 12,562 | 142 | 228 | 12,932 | |||||||||||||||||||||
Total commercial portfolio | 36,787 | 732 | 541 | 38,060 | |||||||||||||||||||||
Purchased credit-impaired loans | 48 | 204 | 362 | 614 | |||||||||||||||||||||
Total | $ | 36,835 | $ | 936 | $ | 903 | $ | 38,674 | |||||||||||||||||
The Company monitors the credit quality of its consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment and purchased credit-impaired loans segment, which excludes $28 million and $38 million of loans covered by FDIC loss share agreements, at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Accrual | Nonaccrual | Total | ||||||||||||||||||||||
Residential mortgage | $ | 28,746 | $ | 231 | $ | 28,977 | |||||||||||||||||||
Home equity and other consumer loans | 3,077 | 40 | 3,117 | ||||||||||||||||||||||
Total consumer portfolio | 31,823 | 271 | 32,094 | ||||||||||||||||||||||
Purchased credit-impaired loans | 196 | — | 196 | ||||||||||||||||||||||
Total | $ | 32,019 | $ | 271 | $ | 32,290 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Accrual | Nonaccrual | Total | ||||||||||||||||||||||
Residential mortgage | $ | 25,261 | $ | 286 | $ | 25,547 | |||||||||||||||||||
Home equity and other consumer loans | 3,234 | 46 | 3,280 | ||||||||||||||||||||||
Total consumer portfolio | 28,495 | 332 | 28,827 | ||||||||||||||||||||||
Purchased credit-impaired loans | 242 | — | 242 | ||||||||||||||||||||||
Total | $ | 28,737 | $ | 332 | $ | 29,069 | |||||||||||||||||||
The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location. | |||||||||||||||||||||||||
The following tables summarize the loans in the consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment monitored for credit quality based on refreshed FICO scores and refreshed LTV ratios at December 31, 2014 and 2013. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs. During the fourth quarter 2014, the Company changed the presentation of its LTV ratios to better align with management's methodology used to analyze credit quality. Prior period amounts have been adjusted to conform to the current year presentation. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
FICO scores | |||||||||||||||||||||||||
(Dollars in millions) | 720 and Above | Below 720 | No FICO | Total | |||||||||||||||||||||
Available(1) | |||||||||||||||||||||||||
Residential mortgage | $ | 22,505 | $ | 5,717 | $ | 493 | $ | 28,715 | |||||||||||||||||
Home equity and other consumer loans | 2,209 | 754 | 83 | 3,046 | |||||||||||||||||||||
Total consumer portfolio | 24,714 | 6,471 | 576 | 31,761 | |||||||||||||||||||||
Purchased credit-impaired loans | 73 | 111 | 13 | 197 | |||||||||||||||||||||
Total | $ | 24,787 | $ | 6,582 | $ | 589 | $ | 31,958 | |||||||||||||||||
Percentage of total | 77 | % | 21 | % | 2 | % | 100 | % | |||||||||||||||||
-1 | Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
FICO scores | |||||||||||||||||||||||||
(Dollars in millions) | 720 and Above | Below 720 | No FICO | Total | |||||||||||||||||||||
Available(1) | |||||||||||||||||||||||||
Residential mortgage | $ | 19,614 | $ | 5,301 | $ | 459 | $ | 25,374 | |||||||||||||||||
Home equity and other consumer loans | 2,283 | 839 | 81 | 3,203 | |||||||||||||||||||||
Total consumer portfolio | 21,897 | 6,140 | 540 | 28,577 | |||||||||||||||||||||
Purchased credit-impaired loans | 94 | 135 | 15 | 244 | |||||||||||||||||||||
Total | $ | 21,991 | $ | 6,275 | $ | 555 | $ | 28,821 | |||||||||||||||||
Percentage of total | 76 | % | 22 | % | 2 | % | 100 | % | |||||||||||||||||
-1 | Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
LTV ratios | |||||||||||||||||||||||||
(Dollars in millions) | Less than or Equal to 80 | Greater than 80 and Less than 100 Percent | Greater than or Equal to 100 | No LTV | Total | ||||||||||||||||||||
Percent | Percent | Available(1) | |||||||||||||||||||||||
Residential mortgage | $ | 27,162 | $ | 1,430 | $ | 92 | $ | 31 | $ | 28,715 | |||||||||||||||
Home equity loans | 2,364 | 270 | 118 | 50 | 2,802 | ||||||||||||||||||||
Total consumer portfolio | 29,526 | 1,700 | 210 | 81 | 31,517 | ||||||||||||||||||||
Purchased credit-impaired loans | 131 | 45 | 18 | 1 | 195 | ||||||||||||||||||||
Total | $ | 29,657 | $ | 1,745 | $ | 228 | $ | 82 | $ | 31,712 | |||||||||||||||
Percentage of total | 94 | % | 5 | % | 1 | % | — | % | 100 | % | |||||||||||||||
-1 | Represents loans for which management was not able to obtain refreshed property values. | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
LTV ratios | |||||||||||||||||||||||||
(Dollars in millions) | Less than or Equal to 80 | Greater than 80 and Less than 100 Percent | Greater than or Equal to 100 | No LTV | Total | ||||||||||||||||||||
Percent | Percent | Available(1) | |||||||||||||||||||||||
Residential mortgage | $ | 23,613 | $ | 1,477 | $ | 231 | $ | 53 | $ | 25,374 | |||||||||||||||
Home equity loans | 2,492 | 356 | 203 | 52 | 3,103 | ||||||||||||||||||||
Total consumer portfolio | 26,105 | 1,833 | 434 | 105 | 28,477 | ||||||||||||||||||||
Purchased credit-impaired loans | 152 | 57 | 31 | — | 240 | ||||||||||||||||||||
Total | $ | 26,257 | $ | 1,890 | $ | 465 | $ | 105 | $ | 28,717 | |||||||||||||||
Percentage of total | 91 | % | 7 | % | 2 | % | — | % | 100 | % | |||||||||||||||
-1 | Represents loans for which management was not able to obtain refreshed property values. | ||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2014 and 2013. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $33 million and $43 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 100 | $ | 212 | |||||||||||||||||||||
Commercial mortgage | 28 | 38 | |||||||||||||||||||||||
Total commercial portfolio | 128 | 250 | |||||||||||||||||||||||
Residential mortgage | 308 | 315 | |||||||||||||||||||||||
Home equity and other consumer loans | 30 | 24 | |||||||||||||||||||||||
Total consumer portfolio | 338 | 339 | |||||||||||||||||||||||
Total restructured loans, excluding purchased credit-impaired loans(1) | $ | 466 | $ | 589 | |||||||||||||||||||||
-1 | Amounts exclude $1 million and $3 million of TDRs covered by FDIC loss share agreements at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
In 2014, TDR modifications in the commercial portfolio segment were primarily composed of interest rate changes, maturity extensions, covenant waivers, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, primarily all of the modifications were composed of interest rate reductions and maturity extensions. There were charge-offs of $2 million related to TDR modifications in the year ended December 31, 2014 and none for the year ended December 31, 2013. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs is measured on an individual loan basis or in pools with similar risk characteristics. | |||||||||||||||||||||||||
The following table provides the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Dollars in millions) | Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment(1) | Investment(2) | Investment(1) | Investment(2) | ||||||||||||||||||||||
Commercial and industrial | $ | 111 | $ | 111 | $ | 161 | $ | 158 | |||||||||||||||||
Commercial mortgage | 23 | 23 | 70 | 69 | |||||||||||||||||||||
Total commercial portfolio | 134 | 134 | 231 | 227 | |||||||||||||||||||||
Residential mortgage | 28 | 27 | 104 | 103 | |||||||||||||||||||||
Home equity and other consumer loans | 11 | 11 | 9 | 8 | |||||||||||||||||||||
Total consumer portfolio | 39 | 38 | 113 | 111 | |||||||||||||||||||||
Total | $ | 173 | $ | 172 | $ | 344 | $ | 338 | |||||||||||||||||
-1 | Represents the recorded investment in the loan immediately prior to the restructuring event. | ||||||||||||||||||||||||
-2 | Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. | ||||||||||||||||||||||||
Amounts above exclude TDRs covered by FDIC loss share agreements with pre-modification and post-modification balances of $4 million and $4 million, respectively, for the year ended December 31, 2014. There were no restructurings related to loans covered by FDIC loss share agreements for the year ended December 31, 2013. | |||||||||||||||||||||||||
The following table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2014 and 2013, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 10 | $ | 10 | |||||||||||||||||||||
Commercial mortgage | 8 | 2 | |||||||||||||||||||||||
Total commercial portfolio | 18 | 12 | |||||||||||||||||||||||
Residential mortgage | 8 | 16 | |||||||||||||||||||||||
Home equity and other consumer loans | 1 | 2 | |||||||||||||||||||||||
Total consumer portfolio | 9 | 18 | |||||||||||||||||||||||
Total | $ | 27 | $ | 30 | |||||||||||||||||||||
For the consumer portfolio, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses for situations where impairment is measured using the present value of expected future cash flows discounted at the loan's effective interest rate. | |||||||||||||||||||||||||
Loan Impairment | |||||||||||||||||||||||||
Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan. | |||||||||||||||||||||||||
The following tables show information about impaired loans by class as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal | ||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in millions) | With an | Without an | Total | Allowance | With an | Without an | |||||||||||||||||||
Allowance | Allowance | for Impaired | Allowance | Allowance | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Commercial and industrial | $ | 89 | $ | 35 | $ | 124 | $ | 14 | $ | 120 | $ | 39 | |||||||||||||
Commercial mortgage | 37 | 3 | 40 | 4 | 39 | 3 | |||||||||||||||||||
Total commercial portfolio | 126 | 38 | 164 | 18 | 159 | 42 | |||||||||||||||||||
Residential mortgage | 198 | 110 | 308 | 16 | 211 | 127 | |||||||||||||||||||
Home equity and other consumer loans | 6 | 24 | 30 | — | 7 | 37 | |||||||||||||||||||
Total consumer portfolio | 204 | 134 | 338 | 16 | 218 | 164 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 330 | 172 | 502 | 34 | 377 | 206 | |||||||||||||||||||
Purchased credit-impaired loans | — | 1 | 1 | — | — | 2 | |||||||||||||||||||
Total | $ | 330 | $ | 173 | $ | 503 | $ | 34 | $ | 377 | $ | 208 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal | ||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in millions) | With an | Without an | Total | Allowance | With an | Without an | |||||||||||||||||||
Allowance | Allowance | for Impaired | Allowance | Allowance | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Commercial and industrial | $ | 117 | $ | 104 | $ | 221 | $ | 16 | $ | 121 | $ | 114 | |||||||||||||
Commercial mortgage | 33 | 12 | 45 | 3 | 36 | 15 | |||||||||||||||||||
Total commercial portfolio | 150 | 116 | 266 | 19 | 157 | 129 | |||||||||||||||||||
Residential mortgage | 220 | 95 | 315 | 20 | 236 | 108 | |||||||||||||||||||
Home equity and other consumer loans | 4 | 20 | 24 | — | 4 | 34 | |||||||||||||||||||
Total consumer portfolio | 224 | 115 | 339 | 20 | 240 | 142 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 374 | 231 | 605 | 39 | 397 | 271 | |||||||||||||||||||
Purchased credit-impaired loans | 2 | 1 | 3 | — | 2 | 6 | |||||||||||||||||||
Total | $ | 376 | $ | 232 | $ | 608 | $ | 39 | $ | 399 | $ | 277 | |||||||||||||
The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2014, 2013 and 2012 for the commercial, consumer and purchased credit-impaired loans portfolio segments. | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | Average | Recognized | Average | Recognized | Average | Recognized | |||||||||||||||||||
Recorded | Interest | Recorded | Interest | Recorded | Interest | ||||||||||||||||||||
Investment | Income | Investment | Income | Investment | Income | ||||||||||||||||||||
Commercial and industrial | $ | 188 | $ | 5 | $ | 243 | $ | 14 | $ | 201 | $ | 12 | |||||||||||||
Commercial mortgage | 36 | 2 | 53 | 9 | 107 | 1 | |||||||||||||||||||
Construction | — | — | 8 | 3 | 44 | 2 | |||||||||||||||||||
Total commercial portfolio | 224 | 7 | 304 | 26 | 352 | 15 | |||||||||||||||||||
Residential mortgage | 310 | 10 | 293 | 10 | 221 | 8 | |||||||||||||||||||
Home equity and other consumer loans | 27 | 2 | 22 | 1 | 7 | 1 | |||||||||||||||||||
Total consumer portfolio | 337 | 12 | 315 | 11 | 228 | 9 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 561 | 19 | 619 | 37 | 580 | 24 | |||||||||||||||||||
Purchased credit-impaired loans | 2 | — | 4 | — | 8 | 1 | |||||||||||||||||||
Total | $ | 563 | $ | 19 | $ | 623 | $ | 37 | $ | 588 | $ | 25 | |||||||||||||
During 2014, the Company transferred a net $203 million of commercial loans from held for investment to held for sale, and sold $196 million of commercial loans. No consumer loans were sold or transferred from held for investment to held for sale. | |||||||||||||||||||||||||
During 2013, the Company transferred a net $246 million of commercial loans from held for investment to held for sale, and sold $254 million of commercial loans. No consumer loans were sold or transferred from held for investment to held for sale. | |||||||||||||||||||||||||
Loans Acquired in Business Combinations | |||||||||||||||||||||||||
The Company accounts for certain loans acquired in business combinations in accordance with accounting guidance related to loans acquired with deteriorated credit quality (purchased credit-impaired loans). The following table presents the outstanding balances and carrying amounts of the Company's purchased credit-impaired loans at December 31, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Total outstanding balance | $ | 889 | $ | 1,733 | |||||||||||||||||||||
Carrying amount | 516 | 1,091 | |||||||||||||||||||||||
The accretable yield for purchased credit-impaired loans for the years ended December 31, 2014, 2013, and 2012 was as follows: | |||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Accretable yield, beginning of period | $ | 378 | $ | 590 | $ | 424 | |||||||||||||||||||
Additions | — | 31 | 171 | ||||||||||||||||||||||
Accretion | (268 | ) | (336 | ) | (297 | ) | |||||||||||||||||||
Reclassifications from nonaccretable difference during the period | 178 | 93 | 292 | ||||||||||||||||||||||
Accretable yield, end of period | $ | 288 | $ | 378 | $ | 590 | |||||||||||||||||||
Loan Concentrations | |||||||||||||||||||||||||
The Company's most significant concentration of credit risk within its loan portfolio includes residential mortgage loans, loans made to the real estate industry sector, financial and insurance industry, power and utilities industry, oil and gas industry, and manufacturing industry. At December 31, 2014, the Company had $29 billion in residential mortgage loans, primarily in California. The Company had $16 billion in loans made to the real estate industry and an additional $6 billion in unfunded commitments. At December 31, 2014, the Company had $5 billion in loans made to the financial and insurance industry and an additional $5 billion in unfunded commitments. At December 31, 2014, the Company had $5 billion in loans made to the power and utilities industry and an additional $9 billion in unfunded commitments. At December 31, 2014, the Company had $4 billion in loans made to the oil and gas industry and an additional $4 billion in unfunded commitments. At December 31, 2014, the Company had $4 billion in loans made to the manufacturing industry and an additional $3 billion in unfunded commitments. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Premises and Equipment and Other Assets | |||||||||||||||||||||||||
Premises and Equipment | Premises and Equipment and Other Assets | ||||||||||||||||||||||||
Premises and Equipment | |||||||||||||||||||||||||
Premises and equipment are carried at cost, less accumulated depreciation and amortization. As of December 31, 2014 and 2013, the amounts were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Dollars in millions) | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | |||||||||||||||||||
Depreciation and | Value | Depreciation and | Value | ||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Land | $ | 148 | $ | — | $ | 148 | $ | 154 | $ | — | $ | 154 | |||||||||||||
Premises | 601 | (334 | ) | 267 | 621 | (328 | ) | 293 | |||||||||||||||||
Leasehold improvements | 301 | (230 | ) | 71 | 298 | (218 | ) | 80 | |||||||||||||||||
Furniture, fixtures and equipment | 682 | (547 | ) | 135 | 670 | (509 | ) | 161 | |||||||||||||||||
Total | $ | 1,732 | $ | (1,111 | ) | $ | 621 | $ | 1,743 | $ | (1,055 | ) | $ | 688 | |||||||||||
Rental, depreciation and amortization expenses were as follows: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Rental expense of premises | $ | 113 | $ | 111 | $ | 85 | |||||||||||||||||||
Less: rental income | 10 | 9 | 8 | ||||||||||||||||||||||
Net rental expense | $ | 103 | $ | 102 | $ | 77 | |||||||||||||||||||
Depreciation and amortization of premises and equipment | $ | 103 | $ | 110 | $ | 102 | |||||||||||||||||||
Future minimum lease payments at December 31, 2014 were as follows: | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | ||||||||||||||||||||||||
Years ending December 31,: | |||||||||||||||||||||||||
2015 | $ | 130 | |||||||||||||||||||||||
2016 | 131 | ||||||||||||||||||||||||
2017 | 118 | ||||||||||||||||||||||||
2018 | 103 | ||||||||||||||||||||||||
2019 | 85 | ||||||||||||||||||||||||
Thereafter | 501 | ||||||||||||||||||||||||
Total minimum lease payments | $ | 1,068 | |||||||||||||||||||||||
Minimum rental income due in the future under subleases | $ | 105 | |||||||||||||||||||||||
The Company's leases are for land, branch or office space. A majority of the leases provide for the payment of taxes, maintenance, insurance, and certain other expenses applicable to the leased premises. Many of the leases contain extension provisions and escalation clauses. These leases are generally renewable and may in certain cases contain provisions and options to expand or contract space, renew or terminate the lease or purchase the leased premises at predetermined contractual dates. In addition, escalation clauses may exist, which are tied to either a predetermined rate or may change based on a specified percentage increase or the Consumer Price Index. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, the Company had a liability of $6 million for asset retirement obligations. These obligations include environmental remediation on buildings and the removal of leasehold improvements from leased premises to be vacated in cases where management has sufficient information to estimate the obligation's fair value. | |||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||
The following table shows the balances of other assets as of December 31, 2014 and 2013. | |||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Other investments | $ | 2,711 | $ | 2,211 | |||||||||||||||||||||
Prepaid expenses | 145 | 509 | |||||||||||||||||||||||
Intangible assets | 240 | 290 | |||||||||||||||||||||||
OREO | 36 | 57 | |||||||||||||||||||||||
Other | 1,553 | 1,787 | |||||||||||||||||||||||
Total other assets | $ | 4,685 | $ | 4,854 | |||||||||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||||||||||||
As a result of the acquisition of PB Capital Corporation, the Company recorded goodwill and intangibles assets totaling $238 million and less than $1 million, respectively. As a result of the acquisition of First Bank Association Bank Services, the Company recorded goodwill of $30 million. See Note 2 to these consolidated financial statements for information on the Company's business combinations. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill during 2014 and 2013 are shown in the table below. | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Goodwill, beginning of year | $ | 3,228 | $ | 2,942 | |||||||||||||||||||||
Net change from business combinations | (3 | ) | 286 | ||||||||||||||||||||||
Goodwill, end of year | $ | 3,225 | $ | 3,228 | |||||||||||||||||||||
For impairment testing, goodwill was assigned to the following operating segments at December 31, 2014 and 2013: | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Retail Banking & Wealth Markets | $ | 1,524 | $ | 1,527 | |||||||||||||||||||||
Commercial Banking | 1,034 | 1,034 | |||||||||||||||||||||||
U.S. Corporate Banking | 149 | 149 | |||||||||||||||||||||||
Transaction Banking | 251 | 251 | |||||||||||||||||||||||
Investment Banking & Markets | 253 | 253 | |||||||||||||||||||||||
Asian Corporate Banking | 14 | 14 | |||||||||||||||||||||||
Goodwill, end of year | $ | 3,225 | $ | 3,228 | |||||||||||||||||||||
The Company reviews its goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The annual goodwill impairment test was performed as of October 1, 2014, and no impairment was recognized. | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Dollars in millions) | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Core deposit intangibles | $ | 565 | $ | (468 | ) | $ | 97 | $ | 667 | $ | (530 | ) | $ | 137 | |||||||||||
Trade names | 114 | (21 | ) | 93 | 114 | (16 | ) | 98 | |||||||||||||||||
Customer relationships | 60 | (25 | ) | 35 | 63 | (22 | ) | 41 | |||||||||||||||||
Other | 29 | (14 | ) | 15 | 25 | (11 | ) | 14 | |||||||||||||||||
Total intangible assets with a definite useful life | $ | 768 | $ | (528 | ) | $ | 240 | $ | 869 | $ | (579 | ) | $ | 290 | |||||||||||
Total amortization expense for 2014, 2013 and 2012 was $53 million, $65 million and $81 million, respectively. | |||||||||||||||||||||||||
Estimated future amortization expense at December 31, 2014 is as follows: | |||||||||||||||||||||||||
(Dollars in millions) | Core Deposit | Trade Name | Customer | Other | Total Identifiable | ||||||||||||||||||||
Intangibles (CDI) | Relationships | Intangible Assets | |||||||||||||||||||||||
Years ending December 31, : | |||||||||||||||||||||||||
2015 | $ | 30 | $ | 3 | $ | 5 | $ | 4 | $ | 42 | |||||||||||||||
2016 | 18 | 3 | 5 | 3 | 29 | ||||||||||||||||||||
2017 | 14 | 3 | 4 | 2 | 23 | ||||||||||||||||||||
2018 | 7 | 3 | 4 | 1 | 15 | ||||||||||||||||||||
2019 | 6 | 3 | 3 | 1 | 13 | ||||||||||||||||||||
Thereafter | 22 | 78 | 14 | 4 | 118 | ||||||||||||||||||||
Total estimated amortization expense | $ | 97 | $ | 93 | $ | 35 | $ | 15 | $ | 240 | |||||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||||||||||||||||||||||
In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs. | |||||||||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||||||||
The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Consolidated Assets | Consolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Interest Bearing | Loans Held for | Other Assets | Total Assets | Other Liabilities | Total | |||||||||||||||||||||||
Deposits in | Investment, net | Liabilities | |||||||||||||||||||||||||||
Banks | |||||||||||||||||||||||||||||
LIHC investments | $ | 9 | $ | — | $ | 230 | $ | 239 | $ | — | $ | — | |||||||||||||||||
Leasing investments | 10 | 653 | 147 | 810 | 80 | 80 | |||||||||||||||||||||||
Total consolidated VIEs | $ | 19 | $ | 653 | $ | 377 | $ | 1,049 | $ | 80 | $ | 80 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Consolidated Assets | Consolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Interest Bearing | Loans Held for | Other Assets | Total Assets | Long-Term Debt | Total | |||||||||||||||||||||||
Deposits in | Investment, net | Liabilities | |||||||||||||||||||||||||||
Banks | |||||||||||||||||||||||||||||
LIHC investments | $ | 9 | $ | — | $ | 262 | $ | 271 | $ | 4 | $ | 4 | |||||||||||||||||
Leasing investments | 1 | 750 | 8 | 759 | — | — | |||||||||||||||||||||||
Total consolidated VIEs | $ | 10 | $ | 750 | $ | 270 | $ | 1,030 | $ | 4 | $ | 4 | |||||||||||||||||
LIHC Investments | |||||||||||||||||||||||||||||
The Company sponsors, manages and syndicates two LIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered a primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments. | |||||||||||||||||||||||||||||
Leasing Investments | |||||||||||||||||||||||||||||
The Company has leasing investments primarily in the wind, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments. | |||||||||||||||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||||||||
The following tables present the Company’s carrying amounts related to the unconsolidated VIEs and location on the consolidated balance sheets at December 31, 2014 and 2013. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Unconsolidated Assets | Unconsolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Securities | Loans Held for | Other Assets | Total Assets | Other | Total | Maximum | ||||||||||||||||||||||
Available for | Investment | Liabilities | Liabilities | Exposure to | |||||||||||||||||||||||||
Sale | Loss | ||||||||||||||||||||||||||||
LIHC investments | $ | 25 | $ | 163 | $ | 1,117 | $ | 1,305 | $ | 433 | $ | 433 | $ | 1,305 | |||||||||||||||
Leasing investments | — | 21 | 886 | 907 | 55 | 55 | 923 | ||||||||||||||||||||||
Other investments | — | 29 | 20 | 49 | — | — | 51 | ||||||||||||||||||||||
Total unconsolidated VIEs | $ | 25 | $ | 213 | $ | 2,023 | $ | 2,261 | $ | 488 | $ | 488 | $ | 2,279 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Unconsolidated Assets | Unconsolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Securities | Loans Held for | Other Assets | Total Assets | Other | Total | Maximum | ||||||||||||||||||||||
Available for | Investment | Liabilities | Liabilities | Exposure to | |||||||||||||||||||||||||
Sale | Loss | ||||||||||||||||||||||||||||
LIHC investments | $ | 122 | $ | 158 | $ | 1,000 | $ | 1,280 | $ | 445 | $ | 445 | $ | 1,280 | |||||||||||||||
Leasing investments | — | — | 700 | 700 | — | — | 700 | ||||||||||||||||||||||
Other investments | — | 15 | 12 | 27 | — | — | 27 | ||||||||||||||||||||||
Total unconsolidated VIEs | $ | 122 | $ | 173 | $ | 1,712 | $ | 2,007 | $ | 445 | $ | 445 | $ | 2,007 | |||||||||||||||
LIHC Investments | |||||||||||||||||||||||||||||
The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds, and therefore is not considered the primary beneficiary and does not consolidate these investments. | |||||||||||||||||||||||||||||
Leasing Investments | |||||||||||||||||||||||||||||
The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by a third party sponsor. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments. | |||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||
The Company has direct equity investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments. |
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Deposits [Abstract] | |||||
Deposits | Deposits | ||||
At December 31, 2014, the Company had $3.7 billion in interest bearing time deposits with a remaining term of greater than one year, of which $1.0 billion related to deposits of $100,000 and over. Maturity information for all interest bearing time deposits with a remaining term of greater than one year is summarized below. | |||||
(Dollars in millions) | December 31, | ||||
2014 | |||||
Due after one year through two years | $ | 1,570 | |||
Due after two years through three years | 1,134 | ||||
Due after three years through four years | 812 | ||||
Due after four years through five years | 167 | ||||
Due after five years | 20 | ||||
Total | $ | 3,703 | |||
Commercial_Paper_and_Other_Sho
Commercial Paper and Other Short-Term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short-term Debt [Abstract] | |||||||||
Commercial Paper and Other Short-Term Borrowings | Commercial Paper and Other Short-Term Borrowings | ||||||||
The following is a summary of the Company's commercial paper and other short-term borrowings: | |||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||
Federal funds purchased and securities sold under repurchase agreements, with weighted average interest rates of 0.12% and 0.07% at December 31, 2014 and December 31, 2013 | $ | 111 | $ | 39 | |||||
Commercial paper, with weighted average interest rates of 0.16% and 0.19% at December 31, 2014 and December 31, 2013, respectively | 2,593 | 2,524 | |||||||
Total commercial paper and other short-term borrowings | $ | 2,704 | $ | 2,563 | |||||
Federal funds purchased and securities sold under repurchase agreements: | |||||||||
Maximum outstanding at any month end | $ | 329 | $ | 359 | |||||
Average balance during the year | 170 | 263 | |||||||
Weighted average interest rate during the year | 0.14 | % | 0.12 | % | |||||
Commercial paper: | |||||||||
Maximum outstanding at any month end | $ | 3,322 | $ | 3,655 | |||||
Average balance during the year | 2,542 | 2,393 | |||||||
Weighted average interest rate during the year | 0.16 | % | 0.18 | % | |||||
Other borrowed funds: | |||||||||
Term federal funds purchased: | |||||||||
Maximum outstanding at any month end | $ | 252 | $ | 269 | |||||
Average balance during the year | 43 | 50 | |||||||
Weighted average interest rate during the year | 0.14 | % | 0.15 | % | |||||
All other borrowed funds: | |||||||||
Maximum outstanding at any month end | $ | — | $ | — | |||||
Average balance during the year | 54 | 45 | |||||||
Weighted average interest rate during the year | 2.06 | % | 1.71 | % | |||||
In September 2008, the Company established a $500 million, three-year unsecured revolving credit facility with BTMU. This credit facility was renewed and expires in July 2017. For additional information regarding the Company's revolving credit facility with BTMU, see Note 21 to our Consolidated Financial Statements included in this Form 10-K. | |||||||||
At December 31, 2014, federal funds purchased and securities sold under repurchase agreements had a weighted average remaining maturity of two days. The commercial paper outstanding had a weighted average remaining maturity of 47 days. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-Term Debt | ||||||||
Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt: | |||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||
Debt issued by MUAH | |||||||||
Senior debt: | |||||||||
Fixed rate 3.50% notes due June 2022 | $ | 398 | $ | 397 | |||||
Subordinated debt to BTMU: | |||||||||
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 1.63% at December 31, 2014 and 1.63% at December 31, 2013 | 300 | 300 | |||||||
Junior subordinated debt payable to trusts(1): | |||||||||
Floating rate notes with maturities ranging from March 2033 to September 2036. These notes bear a combined weighted-average rate of 2.35% at December 31, 2014 and 2.60% at December 31, 2013 | 52 | 66 | |||||||
Total debt issued by MUAH | 750 | 763 | |||||||
Debt issued by MUB and other subsidiaries | |||||||||
Senior debt: | |||||||||
Fixed FHLB advances with maturities ranging from February 2015 to February 2016. These notes bear a combined weighted-average rate of 2.56% at December 31, 2014 and 2.55% at December 31, 2013 | 800 | 800 | |||||||
Floating rate notes due June 2014. These notes, which bear interest at 0.95% above 3-month LIBOR, had a rate of 1.19% at December 31, 2013 | — | 300 | |||||||
Fixed rate 3.00% notes due June 2016 | 700 | 699 | |||||||
Fixed rate 1.50% notes due September 2016 | 499 | 499 | |||||||
Floating rate notes due September 2016. These notes, which bear interest at 0.75% above 3-month LIBOR, had a rate of 1.00% at December 31, 2014 and 1.00% at December 31, 2013 | 500 | 500 | |||||||
Fixed rate 2.125% notes due June 2017 | 499 | 499 | |||||||
Fixed rate 2.625% notes due September 2018 | 1,000 | 1,000 | |||||||
Fixed rate 2.250% notes due May 2019 | 499 | — | |||||||
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 0.63% at December 31, 2014 | 250 | — | |||||||
Note payable: | |||||||||
Fixed rate 6.03% notes due July 2014 (related to consolidated VIE) | — | 4 | |||||||
Subordinated debt: | |||||||||
Fixed rate 5.95% notes due May 2016 | 711 | 718 | |||||||
Subordinated debt due to BTMU: | |||||||||
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.2% above 3-month LIBOR, had a rate of 1.45% at December 31, 2014 and 1.45% at December 31, 2013 | 750 | 750 | |||||||
Capital lease obligations with a combined weighted-average interest rate of 4.92% at December 31, 2014 and 4.88% at December 31, 2013 (1) | 14 | 15 | |||||||
Total debt issued by MUB and other subsidiaries | 6,222 | 5,784 | |||||||
Total long-term debt | $ | 6,972 | $ | 6,547 | |||||
-1 | Long-term debt assumed through acquisitions | ||||||||
Senior Debt | |||||||||
The Floating Rate Notes due May 2017 (May 2017 Notes) and the Fixed Rate 2.250% Notes due May 2019 (May 2019 Notes) were issued to purchasers at a price of 100% and 99.774% of their principal amount, respectively. The Bank may redeem any of the May 2017 Notes, in whole or in part, on May 5, 2016 at a redemption price equal to 100% of the principal amount being redeemed plus accrued interest. The Bank may redeem any of the May 2019 Notes, in whole or in part, on or after April 6, 2019 at a redemption price equal to 100% of the principal amount being redeemed plus accrued interest. None of the Senior Notes are subject to repayment at the option of the holders prior to maturity. Interest payments are due quarterly for the May 2017 Notes and semi-annually for May 2019 Notes. | |||||||||
The Floating Rate Notes (Floating Rate Notes) due September 2016, the Fixed Rate 1.50% Notes due September 2016 and the Fixed Rate 2.625% Notes (Fixed Rate Notes) due September 2018 were issued to purchasers at a price of 100%, 99.746% and 99.977% of their principal amount, respectively. The Floating Rate Notes are not redeemable at the option of the Bank prior to maturity. The Bank may redeem either of the Fixed Rate Notes, in whole or in part, on and after August 26, 2016 at a redemption price equal to 100% of the principal amount being redeemed plus interest accrued to, but excluding, the date of redemption upon not less than 30 nor more than 60 days' notice provided by the Bank to holders. None of the Senior Notes are subject to repayment at the option of the holders prior to maturity. Interest payments are due on March 26, June 26, September 26 and December 26 of each year for the Floating Rate Notes and on March 26 and September 26 of each year for the Fixed Rate Notes. | |||||||||
The net proceeds from the sale of the Senior Notes were used by the Bank for general corporate purposes in the ordinary course of its banking business and were issued as part of the Bank’s $8 billion bank note program under which the Bank may issue, from time to time, senior unsecured debt obligations with maturities of more than one year from their respective dates of issue and subordinated debt obligations with maturities of five years or more from their respective dates of issue. After issuing the Senior Notes, there is $1.9 billion available for issuance under the program. | |||||||||
FHLB Senior Debt | |||||||||
The Bank borrows periodically from the FHLB on a medium-term basis. The advances are secured by certain of the Bank's assets and bear either a fixed or a floating interest rate. The floating rates are tied to the three-month LIBOR plus a spread, reset every 90 days. At December 31, 2014, the $800 million in FHLB advances had a weighted average remaining maturity of approximately 22 months. As of December 31, 2014 and 2013, the Bank had pledged loans and securities of $54.7 billion and$50.8 billion, respectively, as collateral for short- and medium-term advances from the Federal Reserve Bank and FHLB. | |||||||||
Junior Subordinated Debt payable to Trusts | |||||||||
The junior subordinated debt payable to trusts was assumed from our PCBC acquisition. These trusts were formed for the sole purpose of issuing preferred securities to third party investors. The proceeds from issuing the preferred securities were used by the trusts to purchase junior subordinated debt issued by PCBC prior to the acquisition. The junior subordinated debt qualifies as Tier 1 risk-based capital under Federal Reserve guidelines. | |||||||||
Subordinated Debt due to BTMU | |||||||||
On June 28, 2013, the Bank borrowed $750 million from BTMU under a subordinated debt agreement. The subordinated debt bears interest at a rate of three-month LIBOR plus 1.2%, payable quarterly, and will mature on June 28, 2023. The terms and conditions of the agreement are equivalent to those which would apply in a similar transaction with a non-related party. The Bank may prepay the subordinated debt prior to the stated maturity in whole or in part on or after June 28, 2018, but only if the Bank obtains prior written approval of the OCC. The subordinated debt due to BTMU is a junior obligation to the Bank's existing and future outstanding senior indebtedness, and qualifies as Tier 2 capital under the federal banking agency risk-based capital guidelines. | |||||||||
On December 27, 2013, the Company borrowed $300 million from BTMU under a subordinated debt agreement. The subordinated debt bears interest equal to a per annum rate of three-month LIBOR plus 1.38%, payable quarterly, and matures on December 27, 2023. The terms and conditions of the agreement are equivalent to those which would apply in a similar transaction with a non-related party. The Company may prepay the subordinated debt prior to the stated maturity date in whole or in part on or after December 27, 2018 but only if the Company obtains the prior written approval of the Federal Reserve. The subordinated debt due to BTMU is a junior obligation to the Company's existing and future outstanding senior indebtedness, and qualifies as Tier 2 capital under the federal banking agency risk-based capital guidelines. | |||||||||
Senior Debt Issued Subsequent to December 31, 2014 | |||||||||
On February 10, 2015, MUAH issued $250 million in aggregate principal amount of Floating Rate Senior Notes due 2018, $450 million in aggregate principal amount of 1.625% Fixed Rate Senior Notes due 2018, $1 billion in aggregate principal amount of 2.25% Fixed Rate Senior Notes due 2020, and $500 million in aggregate principal amount of 3.00% Fixed Rate Senior Notes due 2025. The net proceeds will be used by the Company for general corporate purposes, including working capital, acquisitions and other business opportunities. |
Fair_Value_Measurement_and_Fai
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | —Fair Value Measurement and Fair Value of Financial Instruments | ||||||||||||||||||||
Valuation Methodologies | |||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices, and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities. | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company's estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability, and reliability of the information used to determine fair value. | |||||||||||||||||||||
Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities. Since the valuations are based on quoted prices that are readily available in an active market, they do not entail a significant degree of judgment. | |||||||||||||||||||||
Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3: Valuations are based on at least one significant unobservable input that is supported by little or no market activity and is significant to the fair value measurement. Values are determined using pricing models and discounted cash flow models that include management judgment and estimation, which may be significant. | |||||||||||||||||||||
In assigning the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are measured at fair value. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. The level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Therefore, an item may be classified in Level 3 even though there may be many significant inputs that are readily observable. | |||||||||||||||||||||
Valuation Processes. The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee's responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes, and other valuation processes. The valuation committee reports to the Company's Risk & Capital Committee and meets at least quarterly. | |||||||||||||||||||||
Independent Price Verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variance within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee. | |||||||||||||||||||||
A description of the valuation methodologies used for certain financial assets and liabilities measured at fair value is as follows: | |||||||||||||||||||||
Recurring Fair Value Measurements: | |||||||||||||||||||||
Trading Account Assets: Trading account assets are recorded at fair value and primarily consist of securities and derivatives held for trading purposes. See discussion below on securities available for sale, which utilize the same valuation methodology as trading account securities. See also discussion below on derivatives valuation. | |||||||||||||||||||||
Securities Available for Sale: Securities available for sale are recorded at fair value based on readily available quoted market prices, if available. These highly liquid securities are classified as Level 1 and include exchange traded equities. If such quoted market prices are not available, management utilizes third-party pricing services and broker quotations from dealers in the specific instruments. These securities are classified as Level 2 and include U.S treasuries, U.S. government-sponsored agencies, RMBS and CMBS, CLOs, and certain other debt securities. If no market prices or broker quotes are available, internal pricing models are used. To the extent possible, these pricing model valuations utilize observable market inputs obtained for similar securities. Typical inputs include LIBOR and U.S. Treasury yield curves, benchmark yields, consensus prepayment estimates and credit spreads. When pricing model valuations use significant unobservable inputs, the securities are classified as Level 3. These other debt securities primarily include direct bank purchase bonds. The valuation of these securities is based upon a return on equity method, which incorporates a market-required return on capital, probability of default and loss severity. | |||||||||||||||||||||
Other Assets: Other assets include interest rate hedging contracts and other risk management derivatives; see discussion below on derivatives. | |||||||||||||||||||||
Derivatives: The Company's derivatives are primarily traded in over-the-counter markets where quoted market prices are not readily available. The Company values its derivatives using pricing models that are widely accepted in the financial services industry with inputs that are observable in the market or can be derived from or corroborated by observable market data. These models reflect the contractual terms of the derivatives including the period to maturity and market observable inputs such as yield curves and option volatility. Valuation adjustments are made to reflect counterparty credit quality and to consider the creditworthiness of the Company. These derivatives, which are included in trading account assets, trading account liabilities, other assets and other liabilities are generally classified as Level 2. Trading account assets and trading account liabilities include Level 3 derivatives comprised of embedded derivatives contained in market-linked CDs and perfectly matched over-the-counter options, whose fair value is obtained through unadjusted third party broker quotes, which incorporate significant unobservable inputs. | |||||||||||||||||||||
Trading Account Liabilities: Trading account liabilities are recorded at fair value and primarily consist of securities sold, not yet purchased and derivatives. See discussion above on derivatives valuation. Securities sold, not yet purchased consist of U.S. Government securities and are classified as Level 2, which utilize the same valuation methodology as trading account securities. | |||||||||||||||||||||
Other Liabilities: The fair value of the Company's FDIC clawback liability is determined using a discounted cash flow model with significant unobservable inputs, which include probability of default and loss severity. The FDIC clawback liability is classified as Level 3. Other liabilities also includes interest rate hedging contracts and other risk management derivatives; see discussion above on derivatives. | |||||||||||||||||||||
Nonrecurring Fair Value Measurements: | |||||||||||||||||||||
Individually Impaired Loans: Individually impaired loans are valued at the time the loan is identified as impaired based on the present value of the remaining expected cash flows. Because the discount factor applied is based on the loan's original effective yield rather than a current market rate, that present value does not represent fair value. However, as a practical expedient, an impaired loan may be measured based on a loan's observable market price or the underlying collateral securing the loan (provided the loan is collateral dependent), which does approximate fair value. Collateral may be real estate or business assets, including equipment. The value of collateral is determined based on independent appraisals. Appraised values may be adjusted based on management's historical knowledge, changes in market conditions from the time of valuation, and management's knowledge of the client and the client's business. The loan's market price is determined using market pricing for similar assets, adjusted for management judgment. Impaired loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly. Impaired loans that are adjusted to fair value based on underlying collateral or the loan's market price are classified as Level 3. | |||||||||||||||||||||
Loans Held for Sale: Residential mortgage and commercial loans held for sale are recorded at the lower of cost or fair value. The fair value of fixed-rate residential loans is based on whole loan forward prices obtained from GSEs. These loans are classified as Level 2. The fair value of commercial loans held for sale may be based on secondary market offerings for loans with similar characteristics or a valuation methodology utilizing the appraised value to outstanding loan balance ratio. These loan values are classified as Level 3. | |||||||||||||||||||||
Private Equity Investments: Private equity investments are recorded either at cost or using the equity method and are evaluated for impairment. The valuation of these investments requires significant management judgment due to the absence of quoted market prices, lack of liquidity and the long-term nature of these assets. When required, the fair value of the investments was estimated using the net asset value or based on the investee's business model, current and projected financial performance, capital needs and our exit strategy. Private equity investments are generally classified as Level 3. | |||||||||||||||||||||
Other Real Estate Owned: OREO represents collateral acquired through foreclosure and is initially recorded at fair value as established by a current appraisal, adjusted for disposition costs. Subsequently, OREO is measured at lower of cost or fair value. OREO values are reviewed on an ongoing basis and any subsequent decline in fair value is recorded as a foreclosed asset expense in the current period. The value of OREO is determined based on independent appraisals and is generally classified as Level 3. | |||||||||||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||||
The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, by major category and by valuation hierarchy level. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||
Adjustment (1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 69 | $ | — | $ | — | $ | 69 | |||||||||||
U.S. government-sponsored agencies | — | 125 | — | — | 125 | ||||||||||||||||
State and municipal securities | — | 10 | — | — | 10 | ||||||||||||||||
Interest rate derivative contracts | — | 928 | 5 | (172 | ) | 761 | |||||||||||||||
Commodity derivative contracts | — | 417 | 5 | (392 | ) | 30 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 104 | 1 | (63 | ) | 43 | |||||||||||||||
Equity derivative contracts | — | — | 300 | (224 | ) | 76 | |||||||||||||||
Total trading account assets | 1 | 1,653 | 311 | (851 | ) | 1,114 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
U.S. government and government-sponsored agencies | — | 7,560 | — | — | 7,560 | ||||||||||||||||
Privately issued | — | 168 | — | — | 168 | ||||||||||||||||
Privately issued - commercial mortgage-backed securities | — | 1,691 | — | — | 1,691 | ||||||||||||||||
Collateralized loan obligations | — | 2,494 | — | — | 2,494 | ||||||||||||||||
Other | — | 9 | — | — | 9 | ||||||||||||||||
Other debt securities: | |||||||||||||||||||||
Direct bank purchase bonds | — | — | 1,741 | — | 1,741 | ||||||||||||||||
Other | — | 3 | 49 | — | 52 | ||||||||||||||||
Equity securities | 9 | — | — | — | 9 | ||||||||||||||||
Total securities available for sale | 9 | 11,925 | 1,790 | — | 13,724 | ||||||||||||||||
Other assets: | |||||||||||||||||||||
Interest rate hedging contracts | — | 36 | — | (36 | ) | — | |||||||||||||||
Other derivative contracts | — | — | 2 | — | 2 | ||||||||||||||||
Total other assets | — | 36 | 2 | (36 | ) | 2 | |||||||||||||||
Total assets | $ | 10 | $ | 13,614 | $ | 2,103 | $ | (887 | ) | $ | 14,840 | ||||||||||
Percentage of Total | — | % | 92 | % | 14 | % | (6 | )% | 100 | % | |||||||||||
Percentage of Total Company Assets | — | % | 12 | % | 2 | % | (1 | )% | 13 | % | |||||||||||
Liabilities | |||||||||||||||||||||
Trading account liabilities: | |||||||||||||||||||||
Interest rate derivative contracts | $ | 1 | $ | 829 | $ | — | $ | (667 | ) | $ | 163 | ||||||||||
Commodity derivative contracts | — | 403 | 5 | (93 | ) | 315 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 78 | 1 | (24 | ) | 56 | |||||||||||||||
Equity derivative contracts | — | — | 299 | — | 299 | ||||||||||||||||
Securities sold, not yet purchased | — | 61 | — | — | 61 | ||||||||||||||||
Total trading account liabilities | 2 | 1,371 | 305 | (784 | ) | 894 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | — | — | 105 | — | 105 | ||||||||||||||||
Interest rate hedging contracts | — | 4 | — | (3 | ) | 1 | |||||||||||||||
Other derivative contracts | — | 1 | 2 | — | 3 | ||||||||||||||||
Total other liabilities | — | 5 | 107 | (3 | ) | 109 | |||||||||||||||
Total liabilities | $ | 2 | $ | 1,376 | $ | 412 | $ | (787 | ) | $ | 1,003 | ||||||||||
Percentage of Total | — | % | 137 | % | 41 | % | (78 | )% | 100 | % | |||||||||||
Percentage of Total Company Liabilities | — | % | 1 | % | — | % | (1 | )% | — | % | |||||||||||
-1 | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||
Adjustment (1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||
U.S. government-sponsored agencies | — | 116 | — | — | 116 | ||||||||||||||||
State and municipal securities | — | 5 | — | — | 5 | ||||||||||||||||
Other loans | — | 140 | — | — | 140 | ||||||||||||||||
Interest rate derivative contracts | 1 | 705 | 7 | (212 | ) | 501 | |||||||||||||||
Commodity derivative contracts | — | 67 | 9 | (66 | ) | 10 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 30 | 2 | (18 | ) | 15 | |||||||||||||||
Equity derivative contracts | — | — | 253 | (197 | ) | 56 | |||||||||||||||
Total trading account assets | 2 | 1,071 | 271 | (493 | ) | 851 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. government-sponsored agencies | — | 73 | — | — | 73 | ||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
U.S government and government-sponsored agencies | — | 8,900 | — | — | 8,900 | ||||||||||||||||
Privately issued | — | 222 | — | — | 222 | ||||||||||||||||
Privately issued - commercial mortgage-backed securities | — | 1,870 | — | — | 1,870 | ||||||||||||||||
Collateralized loan obligations | — | 2,673 | — | — | 2,673 | ||||||||||||||||
Other | — | 35 | — | — | 35 | ||||||||||||||||
Other debt securities: | |||||||||||||||||||||
Direct bank purchase bonds | — | — | 1,960 | — | 1,960 | ||||||||||||||||
Other | — | 18 | 58 | — | 76 | ||||||||||||||||
Equity securities | 8 | — | — | — | 8 | ||||||||||||||||
Total securities available for sale | 8 | 13,791 | 2,018 | — | 15,817 | ||||||||||||||||
Other assets: | |||||||||||||||||||||
Interest rate hedging contracts | — | 8 | — | — | 8 | ||||||||||||||||
Other derivative contracts | — | 1 | 1 | — | 2 | ||||||||||||||||
Total other assets | — | 9 | 1 | — | 10 | ||||||||||||||||
Total assets | $ | 10 | $ | 14,871 | $ | 2,290 | $ | (493 | ) | $ | 16,678 | ||||||||||
Percentage of Total | — | % | 89 | % | 14 | % | (3 | )% | 100 | % | |||||||||||
Percentage of Total Company Assets | — | % | 14 | % | 2 | % | — | % | 16 | % | |||||||||||
Liabilities | |||||||||||||||||||||
Trading account liabilities: | |||||||||||||||||||||
Interest rate derivative contracts | $ | 3 | $ | 606 | $ | — | $ | (379 | ) | $ | 230 | ||||||||||
Commodity derivative contracts | — | 53 | 8 | (33 | ) | 28 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 26 | 2 | (11 | ) | 18 | |||||||||||||||
Equity derivative contracts | — | — | 254 | — | 254 | ||||||||||||||||
Securities sold, not yet purchased | — | 10 | — | — | 10 | ||||||||||||||||
Total trading account liabilities | 4 | 695 | 264 | (423 | ) | 540 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | — | — | 96 | — | 96 | ||||||||||||||||
Interest rate hedging contracts | — | 13 | — | — | 13 | ||||||||||||||||
Other derivative contracts | — | 1 | 3 | — | 4 | ||||||||||||||||
Total other liabilities | — | 14 | 99 | — | 113 | ||||||||||||||||
Total liabilities | $ | 4 | $ | 709 | $ | 363 | $ | (423 | ) | $ | 653 | ||||||||||
Percentage of Total | 1 | % | 109 | % | 55 | % | (65 | )% | 100 | % | |||||||||||
Percentage of Total Company Liabilities | — | % | 1 | % | — | % | — | % | 1 | % | |||||||||||
-1 | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. | ||||||||||||||||||||
The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. Level 3 available for sale securities at December 31, 2014 primarily consist of direct bank purchase bonds. The Company's policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period. | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Trading | Securities | Other | Trading | Other | ||||||||||||||||
Assets | Available for | Assets | Liabilities | Liabilities | |||||||||||||||||
Sale | |||||||||||||||||||||
Asset (liability) balance, beginning of period | $ | 271 | $ | 2,018 | $ | 1 | $ | (264 | ) | $ | (99 | ) | |||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||
Included in income before taxes | 61 | — | 1 | (61 | ) | (8 | ) | ||||||||||||||
Included in other comprehensive income | — | 29 | — | — | — | ||||||||||||||||
Purchases/additions | 4 | 197 | — | — | — | ||||||||||||||||
Sales | — | — | — | (5 | ) | — | |||||||||||||||
Settlements | (25 | ) | (454 | ) | — | 25 | — | ||||||||||||||
Asset (liability) balance, end of period | $ | 311 | $ | 1,790 | $ | 2 | $ | (305 | ) | $ | (107 | ) | |||||||||
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | $ | 61 | $ | — | $ | 1 | $ | (61 | ) | $ | (8 | ) | |||||||||
For the Year Ended | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Trading | Securities | Other | Trading | Other | ||||||||||||||||
Assets | Available for | Assets | Liabilities | Liabilities | |||||||||||||||||
Sale | |||||||||||||||||||||
Asset (liability) balance, beginning of period | $ | 136 | $ | 1,499 | $ | — | $ | (136 | ) | $ | (95 | ) | |||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||
Included in income before taxes | 119 | — | — | (120 | ) | (4 | ) | ||||||||||||||
Included in other comprehensive income | — | 28 | — | — | — | ||||||||||||||||
Purchases/additions | 24 | 700 | 1 | — | — | ||||||||||||||||
Sales | — | (14 | ) | — | (16 | ) | — | ||||||||||||||
Settlements | (8 | ) | (195 | ) | — | 8 | — | ||||||||||||||
Asset (liability) balance, end of period | $ | 271 | $ | 2,018 | $ | 1 | $ | (264 | ) | $ | (99 | ) | |||||||||
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | $ | 119 | $ | — | $ | — | $ | (120 | ) | $ | (4 | ) | |||||||||
The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2014. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Level 3 | Valuation Technique(s) | Significant Unobservable | Range of Inputs | Weighted | ||||||||||||||||
Fair Value | Input(s) | Average | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Direct bank purchase bonds | $ | 1,741 | Return on equity | Market-required return on capital | 8.0 - 10.0 | % | 9.9 | % | |||||||||||||
Probability of default | 0.0 - 25.0 | % | 0.5 | % | |||||||||||||||||
Loss severity | 10.0 - 60.0 | % | 31.1 | % | |||||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | $ | 105 | Discounted cash flow | Probability of default | 0.1 - 100.0 | % | 58.4 | % | |||||||||||||
Loss severity | 0.0 - 100.0 | % | 39.1 | % | |||||||||||||||||
The direct bank purchase bonds use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default, and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement. | |||||||||||||||||||||
The FDIC clawback liability uses a discounted cash flow valuation technique. This technique uses significant unobservable inputs such as probability of default and loss severity. Increases (decreases) in probability of default and loss severity would result in a lower (higher) liability. | |||||||||||||||||||||
Fair Value Measurement on a Nonrecurring Basis | |||||||||||||||||||||
Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the years ended December 31, 2014 and 2013 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment. | |||||||||||||||||||||
31-Dec-14 | Loss for the Year Ended December 31, 2014 | ||||||||||||||||||||
(Dollars in millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Value | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Impaired loans | $ | 109 | $ | — | $ | — | $ | 109 | $ | (37 | ) | ||||||||||
Other assets: | |||||||||||||||||||||
OREO | 15 | — | — | 15 | (6 | ) | |||||||||||||||
Total | $ | 124 | $ | — | $ | — | $ | 124 | $ | (43 | ) | ||||||||||
31-Dec-13 | Loss for the Year Ended December 31, 2013 | ||||||||||||||||||||
(Dollars in millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Value | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Impaired loans | $ | 59 | $ | — | $ | — | $ | 59 | $ | (47 | ) | ||||||||||
Other assets: | |||||||||||||||||||||
OREO | 21 | — | — | 21 | (11 | ) | |||||||||||||||
Private equity investments | — | — | — | — | (5 | ) | |||||||||||||||
Total | $ | 80 | $ | — | $ | — | $ | 80 | $ | (63 | ) | ||||||||||
Loans include individually impaired loans that are measured based on the fair value of the underlying collateral or the fair value of the loan. The fair value of impaired loans was determined based on appraised values of the underlying collateral or market pricing for the loan, adjusted for management judgment, as of the measurement date. The fair value of OREO was primarily based on independent appraisals. | |||||||||||||||||||||
Fair Value of Financial Instruments Disclosures | |||||||||||||||||||||
In addition to financial instruments recorded at fair value in the Company's financial statements, the disclosure of the estimated fair value of financial instruments that are not carried at fair value is also required. Excluded from this disclosure requirement are lease financing arrangements, investments accounted for under the equity method, employee pension and other postretirement obligations and all nonfinancial assets and liabilities, including goodwill and other intangible assets such as long-term customer relationships. The fair values presented are estimates for certain individual financial instruments and do not represent an estimate of the fair value of the Company as a whole. | |||||||||||||||||||||
Certain financial instruments that are not recognized at fair value on the consolidated balance sheet are carried at amounts that approximate fair value due to their short-term nature. These financial instruments include cash and due from banks, interest bearing deposits in banks, federal funds sold and purchased, securities purchased under resale agreements, securities sold under repurchase agreements and commercial paper. In addition, the fair value of deposits with no stated maturity, such as noninterest bearing demand deposits, interest bearing checking, and market rate and other savings are deemed to equal their carrying amounts. | |||||||||||||||||||||
Financial instruments for which their carrying amounts do not approximate fair value include securities held to maturity, loans, FDIC indemnification asset, interest bearing deposits with stated maturities, certain other short-term borrowings, long-term debt and off-balance sheet instruments. | |||||||||||||||||||||
Securities Held to Maturity: The fair value of U.S. government agency and government-sponsored agencies RMBS, CMBS and CLOs classified as held to maturity are based on unadjusted third party pricing service prices. | |||||||||||||||||||||
Loans: The fair value of purchased credit-impaired loans was estimated using a discounted cash flow methodology that considered factors including the type of loan and related collateral, risk classification, term of loan, performance status and current discount rates. The fair values of mortgage loans were estimated based on quoted market prices for loans with similar credit and interest rate risk characteristics. The fair values of other loans were estimated based upon the type of loan and maturity and were determined by discounting the future expected cash flows using the current origination rates for similar loans made to borrowers with similar credit ratings and include adjustments for liquidity premiums. | |||||||||||||||||||||
FDIC Indemnification Asset: The fair value of the FDIC indemnification asset was estimated using the present value of the cash flows that the Company expects to collect from the FDIC under the loss share agreements. | |||||||||||||||||||||
Interest Bearing Deposits: The fair values of savings accounts and certain money market accounts were based on the amounts payable on demand at the reporting date. The fair value of fixed maturity CDs was estimated using a discounted cash flow calculation that applies current interest rates being offered on certificates with similar maturities. | |||||||||||||||||||||
Commercial Paper and Other Short-Term Borrowings: The fair values of Federal Reserve Bank term borrowings, FHLB borrowings and term federal funds purchased were estimated using a discounted cash flow calculation that applies current market rates for applicable maturities. The carrying amounts of other short-term borrowed funds were assumed to approximate their fair value due to their limited duration. | |||||||||||||||||||||
Long-Term Debt: The fair value of senior and subordinated debt was estimated using either a discounted cash flow analysis based on current market interest rates for debt with similar maturities and credit quality or estimated using market quotes. The fair value of junior subordinated debt payable to trusts was estimated using market quotes of similar securities. | |||||||||||||||||||||
Off-Balance Sheet Instruments: Commitments to extend credit and issued standby and commercial letters of credit are instruments that generate ongoing fees, which are recognized over the term of the commitment period. In situations where the credit quality of the counterparty to a commitment has declined, the Company records a reserve. A reasonable estimate of the fair value of these instruments is the carrying amount of deferred fees plus the related reserve. | |||||||||||||||||||||
The tables below present the carrying amount and estimated fair value of certain financial instruments by the level of valuation assumptions held by the Company as of December 31, 2014 and 2013. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 5,751 | $ | 5,751 | $ | 5,751 | $ | — | $ | — | |||||||||||
Securities held to maturity | 8,291 | 8,412 | — | 8,412 | — | ||||||||||||||||
Loans held for investment (1) | 75,475 | 77,324 | — | — | 77,324 | ||||||||||||||||
FDIC indemnification asset | 52 | 5 | — | — | 5 | ||||||||||||||||
Other assets | 7 | 6 | — | — | 6 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | $ | 86,004 | $ | 86,076 | $ | — | $ | 86,076 | $ | — | |||||||||||
Commercial paper and other short-term borrowings | 2,704 | 2,704 | — | 2,704 | — | ||||||||||||||||
Long-term debt | 6,972 | 7,073 | — | 7,073 | — | ||||||||||||||||
Off-Balance Sheet Instruments | |||||||||||||||||||||
Commitments to extend credit and standby and commercial letters of credit | $ | 269 | $ | 269 | $ | — | $ | — | $ | 269 | |||||||||||
-1 | Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 6,203 | $ | 6,203 | $ | 6,203 | $ | — | $ | — | |||||||||||
Securities held to maturity | 6,509 | 6,439 | — | 6,439 | — | ||||||||||||||||
Loans held for investment, net of allowance for loan losses(1) | 66,898 | 68,132 | — | — | 68,132 | ||||||||||||||||
FDIC indemnification asset | 141 | 95 | — | — | 95 | ||||||||||||||||
Other assets | 3 | 3 | — | — | 3 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | $ | 80,101 | $ | 80,228 | $ | — | $ | 80,228 | $ | — | |||||||||||
Commercial paper and other short-term borrowings | 2,563 | 2,563 | — | 2,563 | — | ||||||||||||||||
Long-term debt | 6,547 | 6,709 | — | 6,709 | — | ||||||||||||||||
Off-Balance Sheet Instruments | |||||||||||||||||||||
Commitments to extend credit and standby and commercial letters of credit | $ | 273 | $ | 273 | $ | — | $ | — | $ | 273 | |||||||||||
-1 | Excludes lease financing, net of related allowance. |
Derivative_Instruments_and_Oth
Derivative Instruments and Other Financial Instruments Used For Hedging | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Derivative Instruments and Other Financial Instruments Used For Hedging | Derivative Instruments and Other Financial Instruments Used For Hedging | ||||||||||||||||||||||||||||
The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes and, subject to certain limits, may take market risk when buying and selling derivatives for its own account. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value. | |||||||||||||||||||||||||||||
Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments. | |||||||||||||||||||||||||||||
The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated and qualifying as hedging instruments as of December 31, 2014 and December 31, 2013, respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively. | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
(Dollars in millions) | Notional | Asset | Liability | Notional | Asset | Liability | |||||||||||||||||||||||
Amount | Derivatives | Derivatives | Amount | Derivatives | Derivatives | ||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||
Interest rate contracts | $ | 9,750 | $ | 34 | $ | 4 | $ | 4,300 | $ | 8 | $ | 13 | |||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||||
Interest rate contracts | 500 | 2 | — | — | — | — | |||||||||||||||||||||||
Not designated and qualifying as hedging instruments: | |||||||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||||||
Interest rate contracts | 46,944 | 933 | 830 | 44,427 | 713 | 609 | |||||||||||||||||||||||
Commodity contracts | 4,741 | 422 | 408 | 5,714 | 76 | 61 | |||||||||||||||||||||||
Foreign exchange contracts | 5,661 | 106 | 80 | 5,645 | 33 | 29 | |||||||||||||||||||||||
Equity contracts | 3,797 | 300 | 299 | 4,027 | 253 | 254 | |||||||||||||||||||||||
Other contracts | — | — | — | 140 | — | — | |||||||||||||||||||||||
Total Trading | 61,143 | 1,761 | 1,617 | 59,953 | 1,075 | 953 | |||||||||||||||||||||||
Other risk management | 286 | 2 | 3 | 185 | 2 | 4 | |||||||||||||||||||||||
Total derivative instruments | $ | 71,679 | $ | 1,799 | $ | 1,624 | $ | 64,438 | $ | 1,085 | $ | 970 | |||||||||||||||||
We recognized net losses of $1 million and net losses of $6 million on other risk management derivatives for the years ended December 31, 2014 and 2013, respectively, which are included in other noninterest income. | |||||||||||||||||||||||||||||
Derivatives Designated and Qualifying as Hedging Instruments | |||||||||||||||||||||||||||||
The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans, CDs, borrowings, and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges. | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
The Company used interest rate swaps with a notional amount of $9.75 billion at December 31, 2014 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans. To the extent effective, payments received (or paid) under the swap contract offset fluctuations in interest income on loans caused by changes in the relevant LIBOR index. At December 31, 2014, the weighted average remaining life of the current cash flow hedges was approximately 3.37 years. | |||||||||||||||||||||||||||||
For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in earnings in the period in which they arise. At December 31, 2014, the Company expects to reclassify approximately $103 million of income from AOCI to net interest income during the year ending December 31, 2015. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations or the addition of other hedges subsequent to December 31, 2014. | |||||||||||||||||||||||||||||
The following tables present the amount and location of the net gains and losses recorded in the Company's consolidated statements of income and changes in stockholder's equity for derivatives designated as cash flow hedges for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | Gain (Loss) Reclassified from | Gain (Loss) Recognized in Income | |||||||||||||||||||||||||||
Recognized in OCI on | Accumulated OCI | on Derivative Instruments (Ineffective Portion) | |||||||||||||||||||||||||||
Derivative Instruments | into Income (Effective Portion) | ||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
For the Years Ended | For the Years Ended | For the Years Ended | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||||||
Derivatives in cash flow hedging relationships | |||||||||||||||||||||||||||||
Interest income | $ | 115 | $ | 44 | |||||||||||||||||||||||||
Interest rate contracts | $ | 126 | $ | 29 | Interest expense | 2 | (1 | ) | Noninterest expense (1) | $ | 2 | $ | — | ||||||||||||||||
Total | $ | 126 | $ | 29 | $ | 117 | $ | 43 | $ | 2 | $ | — | |||||||||||||||||
-1 | Amount recognized was less than $1 million in 2013. | ||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||
The Company engages in an interest rate hedging strategy in which one or more interest rate swaps are associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigates the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, U.S. dollar LIBOR. | |||||||||||||||||||||||||||||
For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings. | |||||||||||||||||||||||||||||
The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the year ended December 31, 2014: | |||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||||||||||||||
Interest rate risk on long-term debt | $ | 2 | $ | (1 | ) | $ | 1 | ||||||||||||||||||||||
Total | $ | 2 | $ | (1 | ) | $ | 1 | ||||||||||||||||||||||
There were no fair value hedges during 2013. | |||||||||||||||||||||||||||||
Derivatives Not Designated and Qualifying as Hedging Instruments | |||||||||||||||||||||||||||||
Trading Derivatives | |||||||||||||||||||||||||||||
Derivative instruments classified as trading include both derivatives entered into as an accommodation for customers and, subject to certain limits, for the Company's own account. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures. | |||||||||||||||||||||||||||||
The Company offers market-linked CDs, which allow the client to earn the higher of either a minimum fixed rate of interest or a return tied to either equity, commodity or currency indices. The Company offsets its exposure to the embedded derivative contained in market-linked CDs with a matched over-the-counter option. Both the embedded derivative (when bifurcated) and hedge options are recorded at fair value with the realized and unrealized changes in fair value recorded in noninterest income within trading account activities. | |||||||||||||||||||||||||||||
The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the twelve months ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Trading derivatives: | |||||||||||||||||||||||||||||
Interest rate contracts | $ | 36 | $ | 30 | |||||||||||||||||||||||||
Equity contracts | 3 | — | |||||||||||||||||||||||||||
Foreign exchange contracts | 19 | 18 | |||||||||||||||||||||||||||
Commodity contracts | 8 | 2 | |||||||||||||||||||||||||||
Other contracts | 1 | — | |||||||||||||||||||||||||||
Total | $ | 67 | $ | 50 | |||||||||||||||||||||||||
Offsetting Assets and Liabilities | |||||||||||||||||||||||||||||
The Company primarily enters into derivative contracts and repurchase agreements with counterparties utilizing a standard International Swaps and Derivatives Association master netting agreement or master repurchase agreements, which generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. | |||||||||||||||||||||||||||||
The following tables present the offsetting of financial assets and liabilities as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
(Dollars in millions) | Gross Amounts | Gross Amounts | Net Amounts | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||
of Recognized | Offset in | Presented in | Instruments | Received/Pledged | |||||||||||||||||||||||||
Assets/Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Derivative assets | $ | 1,799 | $ | 887 | $ | 912 | $ | 113 | $ | — | $ | 799 | |||||||||||||||||
Securities purchased under resale agreements | 62 | — | 62 | 61 | — | 1 | |||||||||||||||||||||||
Total | $ | 1,861 | $ | 887 | $ | 974 | $ | 174 | $ | — | $ | 800 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 1,624 | $ | 787 | $ | 837 | $ | 162 | $ | — | $ | 675 | |||||||||||||||||
Securities sold under repurchase agreements | 68 | — | 68 | 68 | — | — | |||||||||||||||||||||||
Total | $ | 1,692 | $ | 787 | $ | 905 | $ | 230 | $ | — | $ | 675 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in Balance Sheet | |||||||||||||||||||||||||||||
(Dollars in millions) | Gross Amounts | Gross Amounts | Net Amounts | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||
of Recognized | Offset in | Presented in | Instruments | Received/Pledged | |||||||||||||||||||||||||
Assets/Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Derivative assets | $ | 1,085 | $ | 493 | $ | 592 | $ | 79 | $ | — | $ | 513 | |||||||||||||||||
Securities purchased under resale agreements | 10 | — | 10 | 10 | — | — | |||||||||||||||||||||||
Total | $ | 1,095 | $ | 493 | $ | 602 | $ | 89 | $ | — | $ | 513 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 970 | $ | 423 | $ | 547 | $ | 144 | $ | — | $ | 403 | |||||||||||||||||
Securities sold under repurchase agreements | 8 | — | 8 | 8 | — | — | |||||||||||||||||||||||
Total | $ | 978 | $ | 423 | $ | 555 | $ | 152 | $ | — | $ | 403 | |||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | ||||||||||||||||||||
The following table presents the change in each of the components of accumulated other comprehensive loss and the related tax effect of the change allocated to each component. | |||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 82 | $ | (32 | ) | $ | 50 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (15 | ) | 6 | (9 | ) | ||||||||||||||||
Net change | 67 | (26 | ) | 41 | |||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | 187 | (74 | ) | 113 | |||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (107 | ) | 42 | (65 | ) | ||||||||||||||||
Reclassification of unrealized (gains) losses on held to maturity securities transferred to securities available for sale | 301 | (118 | ) | 183 | |||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (9 | ) | 4 | (5 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | (24 | ) | 9 | (15 | ) | ||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | 90 | (35 | ) | 55 | |||||||||||||||||
Net change | 438 | (172 | ) | 266 | |||||||||||||||||
Foreign currency translation adjustment | 2 | (1 | ) | 1 | |||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Amortization of transition amount | 1 | (1 | ) | — | |||||||||||||||||
Recognized net actuarial gain (loss)(1) | 99 | (39 | ) | 60 | |||||||||||||||||
Pension and other benefits arising during the year | (121 | ) | 48 | (73 | ) | ||||||||||||||||
Net change(1) | (21 | ) | 8 | (13 | ) | ||||||||||||||||
Net change in AOCI | $ | 486 | $ | (191 | ) | $ | 295 | ||||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 29 | $ | (11 | ) | $ | 18 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (43 | ) | 17 | (26 | ) | ||||||||||||||||
Net change | (14 | ) | 6 | (8 | ) | ||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | (401 | ) | 157 | (244 | ) | ||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (178 | ) | 70 | (108 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (75 | ) | 30 | (45 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | (12 | ) | 5 | (7 | ) | ||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | (137 | ) | 54 | (83 | ) | ||||||||||||||||
Net change | (803 | ) | 316 | (487 | ) | ||||||||||||||||
Foreign currency translation adjustment | (7 | ) | 3 | (4 | ) | ||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Recognized net actuarial gain (loss)(1) | 116 | (46 | ) | 70 | |||||||||||||||||
Pension and other benefits arising during the year | 526 | (207 | ) | 319 | |||||||||||||||||
Net change(1) | 642 | (253 | ) | 389 | |||||||||||||||||
Net change in AOCI | $ | (182 | ) | $ | 72 | $ | (110 | ) | |||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 126 | $ | (50 | ) | $ | 76 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (117 | ) | 46 | (71 | ) | ||||||||||||||||
Net change | 9 | (4 | ) | 5 | |||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | 348 | (136 | ) | 212 | |||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (18 | ) | 7 | (11 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (48 | ) | 19 | (29 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | — | — | — | ||||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | 19 | (8 | ) | 11 | |||||||||||||||||
Net change | 301 | (118 | ) | 183 | |||||||||||||||||
Foreign currency translation adjustment | (11 | ) | 4 | (7 | ) | ||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Amortization of prior service costs | (17 | ) | 7 | (10 | ) | ||||||||||||||||
Recognized net actuarial gain (loss)(1) | 62 | (24 | ) | 38 | |||||||||||||||||
Pension and other benefits arising during the year | (517 | ) | 203 | (314 | ) | ||||||||||||||||
Net change(1) | (472 | ) | 186 | (286 | ) | ||||||||||||||||
Net change in AOCI | $ | (173 | ) | $ | 68 | $ | (105 | ) | |||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
The following table presents the change in accumulated other comprehensive loss balances. | |||||||||||||||||||||
(Dollars in millions) | Net | Net | Foreign | Pension and | Accumulated | ||||||||||||||||
Unrealized | Unrealized | Currency | Other | Other | |||||||||||||||||
Gains (Losses) | Gains (Losses) | Translation | Benefits | Comprehensive | |||||||||||||||||
on Cash | on Securities | Adjustment | Adjustment | Loss | |||||||||||||||||
Flow | |||||||||||||||||||||
Hedges | |||||||||||||||||||||
Balance, December 31, 2011 | $ | (17 | ) | $ | (107 | ) | $ | — | $ | (685 | ) | $ | (809 | ) | |||||||
Other comprehensive income before reclassifications | 50 | 148 | 1 | — | 199 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (9 | ) | 118 | — | (13 | ) | 96 | ||||||||||||||
Balance, December 31, 2012 | $ | 24 | $ | 159 | $ | 1 | $ | (698 | ) | $ | (514 | ) | |||||||||
Balance, December 31, 2012 | $ | 24 | $ | 159 | $ | 1 | $ | (698 | ) | $ | (514 | ) | |||||||||
Other comprehensive income before reclassifications | 18 | (379 | ) | (4 | ) | — | (365 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (26 | ) | (108 | ) | — | 389 | 255 | ||||||||||||||
Balance, December 31, 2013 | $ | 16 | $ | (328 | ) | $ | (3 | ) | $ | (309 | ) | $ | (624 | ) | |||||||
Balance, December 31, 2013 | $ | 16 | $ | (328 | ) | $ | (3 | ) | $ | (309 | ) | $ | (624 | ) | |||||||
Other comprehensive income before reclassifications | 76 | 194 | (7 | ) | — | 263 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (71 | ) | (11 | ) | — | (286 | ) | (368 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 21 | $ | (145 | ) | $ | (10 | ) | $ | (595 | ) | $ | (729 | ) | |||||||
Management_Stock_Plans
Management Stock Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Management Stock Plans | Management Stock Plans | ||||||||||||
In April 2010, the Company adopted the UnionBanCal Plan (UNBC Plan). Under the UNBC Plan, the Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's indirect parent company, MUFG, to key employees at the discretion of the Executive Compensation and Benefits Committee of the Board of Directors (the Committee). The Committee determines the number of shares, vesting requirements and other features and conditions of the restricted stock units. Under the UNBC Plan, MUFG ADRs are purchased in the open market upon the vesting of the restricted stock units, through a revocable trust. There is no amount authorized to be issued under the UNBC Plan since all shares are purchased in the open market. These awards generally vest pro-rata on each anniversary of the grant date and become fully vested three years from the grant date, provided that the employee has completed the specified continuous service requirement. Generally, the grants vest earlier if the employee dies, is permanently and totally disabled, retires under certain grant, age and service conditions, or terminates employment under certain conditions. | |||||||||||||
Under the UNBC Plan, the restricted stock unit participants do not have dividend rights, voting rights or other stockholder rights. The grant date fair value of these awards is equal to the closing price of the MUFG ADRs on date of grant. | |||||||||||||
Effective July 1, 2014, the U.S. branch banking operations of BTMU were integrated under the Bank's operations and the Company assumed the obligations of the stock bonus plan established by BTMU Headquarters for the Americas (HQA Plan). The HQA Plan is substantially similar to the UNBC Plan however, participants in the HQA Plan are entitled to “dividend equivalent credits” on their unvested restricted stock units when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the participants would have received on the shares had the shares been issued to the participants when the restricted stock units were granted. Accumulated dividend equivalents are paid to participants in cash on an annual basis. | |||||||||||||
The following table is a summary of the UNBC Plan and the HQA Plan, which together are presented as the "Stock Bonus Plans": | |||||||||||||
Grant Date | Units | Fair Value | Vesting | Pro-rata | |||||||||
Granted | of Stock | Duration | Vesting Date | ||||||||||
April 15, 2012 | 4,816,795 | 4.78 | 3 years | April 15 | |||||||||
July 15, 2012 | 74,175 | 4.72 | 3 years | July 15 | |||||||||
April 15, 2013 | 3,656,340 | 6.66 | 3 years | April 15 | |||||||||
July 15, 2013 | 78,725 | 6.67 | 3 years | July 15 | |||||||||
April 15, 2014 | 9,135,710 | 5.4 | 3 years | April 15 | |||||||||
July 10, 2014 | 56,056 | 5.91 | 3 years | July 10 | |||||||||
15-Sep-14 | 46,552 | 5.8 | 3 years | 15-Sep | |||||||||
The following table is a rollforward of the restricted stock units under the Stock Bonus Plans for the years ended December 31, 2014 and 2013. | |||||||||||||
Restricted Stock Units | |||||||||||||
2014 | 2013 | ||||||||||||
Units outstanding, beginning of year | 7,851,017 | 8,857,884 | |||||||||||
Activity during the year: | |||||||||||||
HQA Plan units outstanding as of July 1, 2014 | 3,315,313 | — | |||||||||||
Granted | 9,238,318 | 3,735,065 | |||||||||||
Vested | (4,351,084 | ) | (4,325,661 | ) | |||||||||
Forfeited | (952,075 | ) | (416,271 | ) | |||||||||
Units outstanding, end of year | 15,101,489 | 7,851,017 | |||||||||||
The following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs: | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Compensation costs | $ | 34 | $ | 21 | $ | 18 | |||||||
Tax benefit | 13 | 8 | 7 | ||||||||||
Unrecognized compensation costs | 42 | 27 | 26 | ||||||||||
Employee_Pension_and_Other_Pos
Employee Pension and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Employee Pension and Other Postretirement Benefits | Employee Pension and Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
Retirement Plan | |||||||||||||||||||||||||||||||||||||
The Company maintains the Union Bank Retirement Plan (the Pension Plan), which is a noncontributory qualified defined benefit pension plan covering substantially all of the domestic employees of the Company. The Pension Plan provides retirement benefits based on years of credited service and the final average compensation amount, as defined in the Pension Plan. Employees become eligible for the Pension Plan after 1 year of service. Effective October 1, 2012, the Company established a new cash balance formula for all future eligible employees; such participants receive annual pay credits based on eligible pay multiplied by a percentage determined by their age and years of service, and also receive an annual interest credit based on 30-year Treasury bond yields. All participants become vested upon completing 3 years of vesting service. | |||||||||||||||||||||||||||||||||||||
In April 2014, the Company amended the Pension Plan to transition the majority of participants to the cash balance formula for benefits earned after December 31, 2014. Benefits earned under a final average pay formula became fixed as of that date for such participants. The cash balance formula provides the same benefits that apply to all eligible employees hired after October 1, 2012. | |||||||||||||||||||||||||||||||||||||
Effective July 1, 2014, the U.S. branch banking operations of BTMU were integrated under the Bank's operations. The Company assumed the service cost associated with employees of BTMU’s banking operations in the Americas who became employees of the Bank. These employees became eligible to participate in the Pension Plan on January 1, 2015. | |||||||||||||||||||||||||||||||||||||
The Company's funding policy is to make contributions between the minimum required and the maximum deductible amount as allowed by the Internal Revenue Code. Contributions are intended to provide not only for benefits attributed to services to date, but also for those expected to be earned in the future. | |||||||||||||||||||||||||||||||||||||
In December 2014, the Company's Pension Plan was amended and restated as the MUFG Union Bank, N.A. Retirement Plan. This change became effective January 1, 2015. | |||||||||||||||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||
The Company maintains the Union Bank Health Benefit Plan and the Union Bank Employee Insurance Plan, which are qualified plans providing certain healthcare benefits for its retired employees and life insurance benefits for those employees who retired prior to January 1, 2001, which together are presented as "Other Benefits Plan." The healthcare cost is shared between the Company and the retiree. The life insurance plan is noncontributory. The accounting for the Other Benefits Plan anticipates future cost-sharing changes that are consistent with the Company's intent to maintain a level of cost-sharing at approximately 25% to 50%, depending on the retiree's age and length of service with the Company. Assets set aside to cover such obligations are primarily invested in mutual funds and insurance contracts. The Union Bank Health Benefit Plan was also amended in April 2014 to discontinue the availability of retiree health benefits for the majority of employees. | |||||||||||||||||||||||||||||||||||||
In December 2014, the Union Bank Health Benefit Plan and the Union Bank Employee Insurance Plan were amended and restated as the MUFG Union Bank, N.A. Health Benefit Plan and MUFG Union Bank, N.A. Employee Insurance Plan, respectively. This change became effective January 1, 2015. | |||||||||||||||||||||||||||||||||||||
The following table sets forth the fair value of the assets in the Company's Pension Plan and Other Benefits Plan as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
Pension Plan | Other Benefits | ||||||||||||||||||||||||||||||||||||
Plan | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,716 | $ | 2,019 | $ | 245 | $ | 210 | |||||||||||||||||||||||||||||
Actual return on plan assets | 164 | 391 | 14 | 37 | |||||||||||||||||||||||||||||||||
Employer contributions | 100 | 380 | 13 | 12 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 7 | 7 | |||||||||||||||||||||||||||||||||
Benefits paid | (83 | ) | (74 | ) | (22 | ) | (21 | ) | |||||||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 2,897 | $ | 2,716 | $ | 257 | $ | 245 | |||||||||||||||||||||||||||||
The investment objective for the Company's Pension Plan and Other Benefits Plan, collectively the Plans, is to maximize total return within reasonable and prudent levels of risk. The Plans' asset allocation strategy is the principal determinant in achieving expected investment returns on the Plans' assets. The Pension Plan asset allocation strategy favors equities, with a target allocation of 63% in equity securities, 25% in debt securities, and 12% in real estate investments. Similarly, the Other Benefits Plan asset allocation strategy favors equities with a target allocation of 70% in equity securities and 30% in debt securities. Additionally, the Other Benefits Plan holds an investment in an insurance contract with Hartford Life that is separate from the target allocation. Actual asset allocations may fluctuate within acceptable ranges due to market value variability. If market fluctuations cause an asset class to fall outside of its strategic asset allocation range, the portfolio will be re-balanced as appropriate. A core equity position of domestic large cap and small cap stocks will be maintained, in conjunction with a diversified portfolio of international equities and fixed income securities. Plan asset performance is compared against established indices and peer groups to evaluate whether the risk associated with the portfolio is appropriate for the level of return. | |||||||||||||||||||||||||||||||||||||
The Company periodically reviews the Plans' strategic asset allocation policy and the expected long-term rate of return for plan assets. The investment return volatility of different asset classes and the liability structure of the plans are evaluated to determine whether adjustments are required to the Plans' strategic asset allocation policy, taking into account the principles established in the Company's funding policy. Management periodically reviews and adjusts the long-term rate of return on assets assumption for the Plans based on the expected long-term rate of return for the asset classes and their weightings in the Plans' strategic asset allocation policy and taking into account the prevailing economic and regulatory climate and practices of other companies both within and outside our industry. | |||||||||||||||||||||||||||||||||||||
The following table provides the fair value by level within the fair value hierarchy of the Company's period-end assets by major asset category for the Pension Plan and Other Benefits Plan. For information about the fair value hierarchy levels, refer to Note 11 to these consolidated financial statements. The Plans do not hold any equity or debt securities issued by the Company or any related parties. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Pension Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 52 | $ | — | $ | 53 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 251 | — | 251 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 442 | — | 442 | |||||||||||||||||||||||||||||||||
Equity securities | 295 | 6 | — | 301 | |||||||||||||||||||||||||||||||||
Real estate funds | — | — | 270 | 270 | |||||||||||||||||||||||||||||||||
Limited partnerships | — | 138 | 28 | 166 | |||||||||||||||||||||||||||||||||
Mutual funds | 1,422 | — | — | 1,422 | |||||||||||||||||||||||||||||||||
Other | 6 | 23 | — | 29 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 1,724 | $ | 912 | $ | 298 | $ | 2,934 | |||||||||||||||||||||||||||||
Accrued dividends and interest receivable | 7 | ||||||||||||||||||||||||||||||||||||
Net pending trades | (44 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 2,897 | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Pension Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 28 | $ | — | $ | 28 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 230 | — | 230 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 364 | — | 364 | |||||||||||||||||||||||||||||||||
Equity securities | 233 | — | — | 233 | |||||||||||||||||||||||||||||||||
Real estate funds | — | — | 242 | 242 | |||||||||||||||||||||||||||||||||
Limited partnerships | — | 134 | 22 | 156 | |||||||||||||||||||||||||||||||||
Common collective funds | — | 60 | — | 60 | |||||||||||||||||||||||||||||||||
Mutual funds | 1,407 | — | — | 1,407 | |||||||||||||||||||||||||||||||||
Other | (1 | ) | 28 | — | 27 | ||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 1,639 | $ | 844 | $ | 264 | $ | 2,747 | |||||||||||||||||||||||||||||
Accrued dividends and interest receivable | 4 | ||||||||||||||||||||||||||||||||||||
Net pending trades | (35 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 2,716 | |||||||||||||||||||||||||||||||||||
Level 3 Assets for Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Real Estate Funds | Limited Partnership | Total | ||||||||||||||||||||||||||||||||||
Beginning balance—January 1, 2014 | $ | 242 | $ | 22 | $ | 264 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 21 | 5 | 26 | ||||||||||||||||||||||||||||||||||
Purchases, issuances, sales, and settlements, net | 7 | 1 | 8 | ||||||||||||||||||||||||||||||||||
Ending balance—December 31, 2014 | $ | 270 | $ | 28 | $ | 298 | |||||||||||||||||||||||||||||||
Level 3 Assets for Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Real Estate Funds | Limited Partnership | Total | ||||||||||||||||||||||||||||||||||
Beginning balance—January 1, 2013 | $ | 156 | $ | 18 | $ | 174 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 18 | — | 18 | ||||||||||||||||||||||||||||||||||
Purchases, issuances, sales, and settlements, net | 68 | 4 | 72 | ||||||||||||||||||||||||||||||||||
Ending balance—December 31, 2013 | $ | 242 | $ | 22 | $ | 264 | |||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3 | — | $ | 3 | ||||||||||||||||||||||||||||||
U.S. Government securities | — | 36 | — | 36 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 23 | — | 23 | |||||||||||||||||||||||||||||||||
Municipal bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Mutual funds | 136 | — | — | 136 | |||||||||||||||||||||||||||||||||
Pooled separate account | — | 65 | — | 65 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 136 | $ | 128 | $ | — | $ | 264 | |||||||||||||||||||||||||||||
Net pending trades | (7 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 257 | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||
Municipal bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Mutual funds | 133 | — | — | 133 | |||||||||||||||||||||||||||||||||
Pooled separate account | — | 63 | — | 63 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 133 | $ | 118 | $ | — | $ | 251 | |||||||||||||||||||||||||||||
Net pending trades | (6 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 245 | |||||||||||||||||||||||||||||||||||
A description of the valuation methodologies used to determine the fair value of the Plans' assets included within the tables above is as follows: | |||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents include short-term investments of government securities and other debt securities with remaining maturities of less than three months. These short-term investments are classified as Level 2 measurements based on unadjusted prices for similar securities in an active market. | |||||||||||||||||||||||||||||||||||||
U.S. Government Securities | |||||||||||||||||||||||||||||||||||||
U.S. Treasury securities are fixed income securities that are debt instruments issued by the United States Department of the Treasury. These securities are classified as Level 2 measurements based on valuations provided by a third-party pricing provider using quoted market prices in an active market for similar securities. | |||||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. These securities are classified as Level 2 measurements based on valuations provided by a third-party pricing provider using quoted market prices in an active market for similar securities. | |||||||||||||||||||||||||||||||||||||
Corporate Bonds | |||||||||||||||||||||||||||||||||||||
Corporate bonds are fixed income securities in investment-grade bonds of U.S. issuers from diverse industries. These securities are classified as Level 2 based on valuations provided by a third-party pricing provider using quoted market prices in an active market for similar securities. | |||||||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||||||
Equity securities are common stock and the fair value is recorded based on quoted market prices obtained from an exchange. These securities are classified as Level 1 measurements based on unadjusted prices for identical instruments in active markets. | |||||||||||||||||||||||||||||||||||||
Real Estate Funds | |||||||||||||||||||||||||||||||||||||
Real estate funds invest in real estate property with a focus on apartment complexes and retail shopping centers. The valuations of these investments require significant judgment due to the absence of quoted market prices, lack of liquidity and the scarcity of observable sales of similar assets. The values are estimated by adjusting the previous quarter's net asset value for the current quarter's income and depreciation. These funds are classified as Level 3 measurements due to the use of significant unobservable inputs and judgment to estimate fair value. | |||||||||||||||||||||||||||||||||||||
Limited Partnerships | |||||||||||||||||||||||||||||||||||||
Limited partnerships invest in equity securities of diverse foreign companies in developed markets across diverse industries. Limited partnerships are valued using the net asset value of the partnership at the end of the period. These partnerships are classified as Level 2 measurements due to the use of quoted market prices of the underlying securities in actively traded markets as the primary input to derive the net asset value. | |||||||||||||||||||||||||||||||||||||
Limited partnerships also invest in real estate properties. These partnerships' value is estimated by adjusting the previous quarter's net asset value for the current quarter's income and depreciation. These partnerships are classified as Level 3 measurements due to the use of significant unobservable inputs and judgment to estimate fair value. | |||||||||||||||||||||||||||||||||||||
Common Collective Funds | |||||||||||||||||||||||||||||||||||||
Common collective funds invest in bonds of U.S. and foreign issuers and in equity securities of U.S. and foreign real estate companies. These funds are valued using the net asset value of the fund at the end of the period. These funds are classified as Level 2 measurements due to the use of quoted market prices of the underlying securities in actively traded markets as the primary input to derive the net asset value. | |||||||||||||||||||||||||||||||||||||
Mutual Funds | |||||||||||||||||||||||||||||||||||||
Mutual funds invest in equity securities that seek to track the performance of the Standard & Poor's 500, S&P Completion and the EAFE® indexes. These funds are valued using an exchange traded net asset value at the end of the period. These mutual funds are classified as Level 1 measurements based on unadjusted quoted prices for identical instruments in active markets. | |||||||||||||||||||||||||||||||||||||
Pooled Separate Account | |||||||||||||||||||||||||||||||||||||
The pooled separate account is an investment with Hartford Life Company. The investment consists of four funds that mainly invest in U.S. agency guaranteed mortgage-backed securities, investment-grade bonds of U.S. issuers from diverse industries, and exchange traded equity securities of U.S. and foreign companies. These funds are valued using quoted market prices of the funds' underlying investments to derive the funds' net asset value at the end of the period. This investment is classified as a Level 2 measurement due to the use of quoted market prices of similar securities in actively traded markets as the primary input to derive the net asset value. | |||||||||||||||||||||||||||||||||||||
The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2014 and 2013. In addition, the table sets forth the over (under) funded status at December 31, 2014 and 2013. This pension benefits table does not include the obligations for the ESBPs. | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,717 | $ | 2,046 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 2,263 | $ | 2,394 | $ | 270 | $ | 293 | |||||||||||||||||||||||||||||
Service cost | 75 | 87 | 10 | 14 | |||||||||||||||||||||||||||||||||
Interest cost | 105 | 99 | 11 | 11 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 7 | 7 | |||||||||||||||||||||||||||||||||
Actuarial loss/(gain) | 607 | (243 | ) | 42 | (34 | ) | |||||||||||||||||||||||||||||||
Effect of plan amendments | (150 | ) | (29 | ) | |||||||||||||||||||||||||||||||||
Medicare Part D subsidy | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Benefits paid | (83 | ) | (74 | ) | (22 | ) | (21 | ) | |||||||||||||||||||||||||||||
Benefit obligation, end of year | 2,817 | 2,263 | 290 | 270 | |||||||||||||||||||||||||||||||||
Fair value of plan assets, end of year | 2,897 | 2,716 | 257 | 245 | |||||||||||||||||||||||||||||||||
Over (Under) funded status | $ | 80 | $ | 453 | $ | (33 | ) | $ | (25 | ) | |||||||||||||||||||||||||||
During October 2014 the Society of Actuaries published a series of updated mortality tables and projection scales for use in measuring pension liabilities. The Company has adopted the new mortality tables and a modified projection scale for use in the actuarial calculations for the December 31, 2014 pension and other postretirement obligations and the 2015 net periodic pension cost. The new tables resulted in an increase of $232 million and $35 million to the projected benefit obligations of the Pension plan and Other Benefits plan, respectively, at December 31, 2014. | |||||||||||||||||||||||||||||||||||||
The following table illustrates the changes that were reflected in AOCI during 2014, 2013 and 2012. Pension benefits do not include the ESBPs. | |||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | ||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Net Actuarial | Prior Service Credit | Transition Assets | Net Actuarial | Prior Service Credit | ||||||||||||||||||||||||||||||||
(Gain) Loss | (Gain) Loss | ||||||||||||||||||||||||||||||||||||
Amounts Recognized in Other Comprehensive Loss: | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,016 | $ | — | $ | 1 | $ | 90 | $ | — | |||||||||||||||||||||||||||
Arising during the year | 115 | — | — | (2 | ) | — | |||||||||||||||||||||||||||||||
Recognized in net income during the year | (89 | ) | — | (1 | ) | (8 | ) | — | |||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,042 | $ | — | $ | — | $ | 80 | $ | — | |||||||||||||||||||||||||||
Arising during the year | (468 | ) | — | — | (56 | ) | — | ||||||||||||||||||||||||||||||
Recognized in net income during the year | (107 | ) | — | — | (7 | ) | — | ||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 467 | $ | — | $ | — | $ | 17 | $ | — | |||||||||||||||||||||||||||
Arising during the year | 636 | (150 | ) | — | 46 | (28 | ) | ||||||||||||||||||||||||||||||
Recognized in net income during the year | (59 | ) | 12 | — | (1 | ) | 5 | ||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 1,044 | $ | (138 | ) | $ | — | $ | 62 | $ | (23 | ) | |||||||||||||||||||||||||
At December 31, 2014 and 2013, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Gross | Tax | Net of Tax | Gross | Tax | Net of Tax | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,044 | $ | 411 | $ | 633 | $ | 62 | $ | 25 | $ | 37 | |||||||||||||||||||||||||
Prior service credit | (138 | ) | (54 | ) | (84 | ) | (23 | ) | (9 | ) | (14 | ) | |||||||||||||||||||||||||
Pension and other benefits adjustment | 906 | 357 | 549 | 39 | 16 | 23 | |||||||||||||||||||||||||||||||
Executive Supplemental Benefits Plans | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | 39 | 15 | 24 | — | — | — | |||||||||||||||||||||||||||||||
Prior service credit | (2 | ) | (1 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||||||||
Executive supplemental benefits plans adjustment | 37 | 14 | 23 | — | — | — | |||||||||||||||||||||||||||||||
Pension and other benefits adjustment | $ | 943 | $ | 371 | $ | 572 | $ | 39 | $ | 16 | $ | 23 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Gross | Tax | Net of Tax | Gross | Tax | Net of Tax | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 467 | $ | 184 | $ | 283 | $ | 17 | $ | 7 | $ | 10 | |||||||||||||||||||||||||
Pension and other benefits adjustment | 467 | 184 | 283 | 17 | 7 | 10 | |||||||||||||||||||||||||||||||
Executive Supplemental Benefits Plans | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | 26 | 10 | 16 | — | — | — | |||||||||||||||||||||||||||||||
Executive supplemental benefits plans adjustment | 26 | 10 | 16 | — | — | — | |||||||||||||||||||||||||||||||
Pension and other benefits adjustment | $ | 493 | $ | 194 | $ | 299 | $ | 17 | $ | 7 | $ | 10 | |||||||||||||||||||||||||
The Company expects to make a $175 million cash contribution to the Pension Plan in 2015. | |||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments and Subsidies | |||||||||||||||||||||||||||||||||||||
The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years and Medicare Part D Subsidies are expected to be received over the next 10 years. This table does not include the ESBPs. | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Pension | Postretirement | Medicare Part D | ||||||||||||||||||||||||||||||||||
Benefits | Benefits | Subsidies | |||||||||||||||||||||||||||||||||||
Years ending December 31, | |||||||||||||||||||||||||||||||||||||
2015 | $ | 92 | $ | 15 | $ | 1 | |||||||||||||||||||||||||||||||
2016 | 104 | 16 | 1 | ||||||||||||||||||||||||||||||||||
2017 | 114 | 17 | 1 | ||||||||||||||||||||||||||||||||||
2018 | 123 | 18 | 1 | ||||||||||||||||||||||||||||||||||
2019 | 132 | 19 | 1 | ||||||||||||||||||||||||||||||||||
Years 2020 - 2024 | 795 | 101 | 6 | ||||||||||||||||||||||||||||||||||
The following tables summarize the weighted average assumptions used in computing the present value of the benefit obligations and the net periodic benefit cost. | |||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | ||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Discount rate in determining net periodic benefit cost prior to Plan amendments | 4.9 | % | 4.2 | % | 4.6 | % | 3.9 | % | |||||||||||||||||||||||||||||
Discount rate in determining net periodic benefit cost after Plan amendments | 4.5 | n/a | 4.2 | n/a | |||||||||||||||||||||||||||||||||
Discount rate in determining benefit obligations at year end | 3.9 | 4.9 | 3.8 | 4.6 | |||||||||||||||||||||||||||||||||
Rate of increase in future compensation levels for determining net periodic benefit cost | 4.7 | 4.7 | — | — | |||||||||||||||||||||||||||||||||
Rate of increase in future compensation levels for determining benefit obligations at year end | 4.7 | 4.7 | — | — | |||||||||||||||||||||||||||||||||
Expected return on plan assets | 7.5 | 7.5 | 7.5 | 7.5 | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Superannuation, | |||||||||||||||||||||||||||||||||||
SERP (1) and ESBP | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | Years Ended | |||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
Service cost (2) | $ | 81 | $ | 87 | $ | 77 | $ | 10 | $ | 14 | $ | 14 | $ | 1 | $ | 1 | $ | 2 | |||||||||||||||||||
Interest cost | 105 | 99 | 101 | 11 | 11 | 12 | 4 | 3 | 2 | ||||||||||||||||||||||||||||
Expected return on plan assets | (193 | ) | (166 | ) | (147 | ) | (18 | ) | (15 | ) | (13 | ) | — | — | — | ||||||||||||||||||||||
Amortization of prior service credit | (12 | ) | — | — | (5 | ) | — | 1 | — | — | — | ||||||||||||||||||||||||||
Recognized net actuarial loss | 59 | 107 | 89 | 1 | 7 | 8 | 2 | 2 | 2 | ||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 40 | $ | 127 | $ | 120 | $ | (1 | ) | $ | 17 | $ | 22 | $ | 7 | $ | 6 | $ | 6 | ||||||||||||||||||
-1 | Supplemental Executive Retirement Plan | ||||||||||||||||||||||||||||||||||||
-2 | Pension Benefits for 2014 includes $6 million of service cost associated with transferred employees as a result of the business integration initiative. | ||||||||||||||||||||||||||||||||||||
At December 31, 2014 and 2013, the following amounts were forecasted to be recognized in 2015 and 2014 net periodic benefit costs, respectively. | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Pension | Other | Pension | Other | |||||||||||||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 109 | $ | 5 | $ | 55 | $ | — | |||||||||||||||||||||||||||||
Prior service credit | (18 | ) | (8 | ) | — | — | |||||||||||||||||||||||||||||||
Amounts to be reclassified from accumulated other comprehensive loss | $ | 91 | $ | (3 | ) | $ | 55 | $ | — | ||||||||||||||||||||||||||||
The Company's assumed weighted-average healthcare cost trend rates are as follows. | |||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 7.53 | % | 7.71 | % | 8.31 | % | |||||||||||||||||||||||||||||||
Rate to which cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||||||||||||||
Year the rate reaches the ultimate trend rate | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||||||||
The healthcare cost trend rate assumptions have a significant effect on the amounts reported for the Health Plan. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects: | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | One-Percentage- | One-Percentage- | |||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | (2 | ) | ||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 19 | (22 | ) | ||||||||||||||||||||||||||||||||||
Executive Supplemental Benefit Plans | |||||||||||||||||||||||||||||||||||||
The Company has several ESBPs, which provide eligible employees with supplemental retirement benefits. The plans are nonqualified defined benefit plans and unfunded. The accrued liability for ESBPs included in other liabilities on the Company's consolidated balance sheets was $98 million and $85 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||
Section 401(k) Savings Plans | |||||||||||||||||||||||||||||||||||||
The Company has a defined contribution plan authorized under Section 401(k) of the Internal Revenue Code. All benefits-eligible employees are eligible to participate in the plan. Employees may contribute up to 75% of their pre-tax covered compensation or up to 10% of their after-tax covered compensation through salary deductions to a combined maximum of 75% of total covered compensation, subject to statutory limits. Effective January 1, 2014, the Company contributes 100% of every pre-tax dollar an employee contributes up to the first 3% of the employee's pre-tax covered compensation and 50% of every pre-tax dollar an employee contributes on the next 2% of the employee's pre-tax covered compensation, for a maximum matching opportunity of 4%. Employees are fully vested in the Company's matching contributions immediately. All employer contributions are tax deductible by the Company. The Company's combined matching contribution expense was $37 million, $32 million and $29 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Other_Noninterest_Expense
Other Noninterest Expense | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Noninterest Expense | Other Noninterest Expense | ||||||||||||
The detail of other noninterest expense is as follows. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Software | $ | 94 | $ | 83 | $ | 70 | |||||||
LIHC investment amortization | 89 | 76 | 63 | ||||||||||
Advertising and public relations | 39 | 61 | 57 | ||||||||||
Communications | 40 | 45 | 39 | ||||||||||
Data processing | 32 | 36 | 36 | ||||||||||
Other | 159 | 150 | 198 | ||||||||||
Total other noninterest expense | $ | 453 | $ | 451 | $ | 463 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The following table is an analysis of the effective tax rate. | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Net tax effects of: | |||||||||||||
State income taxes, net of federal income tax benefit | 7 | 5 | 6 | ||||||||||
Tax-exempt interest income | (2 | ) | (1 | ) | (1 | ) | |||||||
Tax credits | (13 | ) | (13 | ) | (10 | ) | |||||||
Other | (2 | ) | (3 | ) | (3 | ) | |||||||
Effective tax rate | 25 | % | 23 | % | 27 | % | |||||||
The components of income tax expense were as follows. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Taxes currently payable: | |||||||||||||
Federal | $ | 82 | $ | 79 | $ | 93 | |||||||
State | 76 | 43 | 32 | ||||||||||
Foreign | 13 | 12 | 14 | ||||||||||
Total currently payable | 171 | 134 | 139 | ||||||||||
Taxes deferred: | |||||||||||||
Federal | 72 | 71 | 62 | ||||||||||
State | 28 | (8 | ) | 20 | |||||||||
Foreign | 3 | (2 | ) | (1 | ) | ||||||||
Total deferred | 103 | 61 | 81 | ||||||||||
Total income tax expense | $ | 274 | $ | 195 | $ | 220 | |||||||
The components of the Company's net deferred tax balances as of December 31, 2014 and 2013 were as follows. | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowance for credit losses | $ | 283 | $ | 287 | |||||||||
Accrued expense, net | 272 | 216 | |||||||||||
Unrealized losses on pension and postretirement benefits | 389 | 204 | |||||||||||
Unrealized net losses on securities available for sale | 97 | 262 | |||||||||||
Fair value adjustments for valuation of FDIC covered assets | 159 | 183 | |||||||||||
Other | 110 | 97 | |||||||||||
Total deferred tax assets | 1,310 | 1,249 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Leasing | 759 | 698 | |||||||||||
Intangible assets | 99 | 105 | |||||||||||
Pension liabilities | 389 | 363 | |||||||||||
Other | 5 | 17 | |||||||||||
Total deferred tax liabilities | 1,252 | 1,183 | |||||||||||
Net deferred tax asset | $ | 58 | $ | 66 | |||||||||
At December 31, 2014, we had net operating loss and tax credit carry forwards for which related deferred tax assets of $38 million and $43 million, respectively, were recorded. The net operating loss and tax credit carry forwards expire in varying amounts through 2033. | |||||||||||||
Deferred tax assets are evaluated for realization based on the existence of sufficient taxable income of the appropriate character. Management has determined that no valuation allowance is required. | |||||||||||||
The changes in unrecognized tax positions were as follows. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 16 | $ | 269 | $ | 274 | |||||||
Gross increases as a result of tax positions taken during prior periods | — | 1 | 7 | ||||||||||
Gross decreases as a result of tax positions taken during prior periods | (10 | ) | (256 | ) | (13 | ) | |||||||
Gross increases as a result of tax positions taken during current period | 2 | 2 | 1 | ||||||||||
Balance, end of year | $ | 8 | $ | 16 | $ | 269 | |||||||
The amount of unrecognized tax positions that would affect the effective tax rate, if recognized, was $7 million, $12 million and $113 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company recognizes interest and penalties as a component of income tax expense. For 2014, 2013 and 2012, the Company reversed $3 million and $12 million and $14 million of gross interest and penalties as a benefit to income tax expense, respectively. As of December 31, 2014, there was no accrual recorded for gross interest and penalties. As of December 31, 2013 and 2012, we accrued $3 million, and $15 million of gross interest and penalties, respectively. | |||||||||||||
The Company is subject to U.S. federal income tax as well as various state and foreign income taxes. With limited exception, the Company is not open to examination for periods before 2010 by U.S. federal and state taxing authorities. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||||||
Regulatory Capital Requirements | Regulatory Capital Requirements | |||||||||||||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and the Bank's prompt corrective action classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. Prompt corrective action provisions are not applicable to BHCs such as the Company. The Bank is subject to laws and regulations that limit the amount of dividends it can pay to the Company. | ||||||||||||||||||||||||||
Quantitative measures established by regulation to help ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to quarterly average assets (as defined). As of December 31, 2014, management believes the capital ratios of the Bank met all regulatory requirements of "well-capitalized" institutions, which are 10% for the Total risk-based capital ratio and 6% for the Tier 1 risk-based capital ratio. Furthermore, management believes, as of December 31, 2014 and 2013, that the Company and the Bank met all capital adequacy requirements to which they are subject. | ||||||||||||||||||||||||||
The Company's and the Bank's capital amounts and ratios are presented in the following tables. | ||||||||||||||||||||||||||
Actual | Minimum | |||||||||||||||||||||||||
Regulatory | ||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||
(Dollars in millions) | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||
Capital Ratios for the Company (U.S. Basel I): | ||||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 12,367 | 12.79 | % | ≥ | $ | 3,867 | 4 | % | |||||||||||||||||
Total capital (to risk-weighted assets) | 14,246 | 14.74 | ≥ | 7,733 | 8 | |||||||||||||||||||||
Tier 1 leverage(1) | 12,367 | 11.25 | ≥ | 4,396 | 4 | |||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 11,471 | 12.41 | ≥ | 3,696 | 4 | |||||||||||||||||||||
Total capital (to risk-weighted assets) | 13,499 | 14.61 | ≥ | 7,393 | 8 | |||||||||||||||||||||
Tier 1 leverage(1) | 11,471 | 11.27 | ≥ | 4,073 | 4 | |||||||||||||||||||||
-1 | Tier 1 capital divided by quarterly average assets (excluding certain intangible assets). | |||||||||||||||||||||||||
Actual | Minimum | To Be Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||
Regulatory | ||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||
(Dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Capital Ratios for the Bank: | ||||||||||||||||||||||||||
As of December 31, 2014 (U.S. Basel III): | ||||||||||||||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) | $ | 12,087 | 13.09 | % | ≥ | n/a | n/a | ≥ | n/a | n/a | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 12,088 | 13.09 | ≥ | $ | 5,080 | 5.5 | % | ≥ | $ | 5,542 | 6 | % | ||||||||||||||
Total capital (to risk-weighted assets) | 13,656 | 14.78 | ≥ | 7,389 | 8 | ≥ | 9,237 | 10 | ||||||||||||||||||
Tier 1 leverage(1) | 12,088 | 11.09 | ≥ | 4,361 | 4 | ≥ | 5,452 | 5 | ||||||||||||||||||
As of December 31, 2013 (U.S. Basel I): | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 11,274 | 12.94 | ≥ | 3,485 | 4 | ≥ | 5,228 | 6 | ||||||||||||||||||
Total capital (to risk-weighted assets) | 12,990 | 14.91 | ≥ | 6,970 | 8 | ≥ | 8,713 | 10 | ||||||||||||||||||
Tier 1 leverage(1) | 11,274 | 11.13 | ≥ | 4,051 | 4 | ≥ | 5,063 | 5 | ||||||||||||||||||
-1 | Tier 1 capital divided by quarterly average assets (excluding certain intangible assets). |
Restrictions_on_Cash_and_Due_f
Restrictions on Cash and Due from Banks, Securities, Loans and Dividends | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Cash and Investments [Abstract] | |
Restrictions on Cash and Due from Banks, Securities, Loans and Dividends | Restrictions on Cash and Due from Banks, Securities, Loans and Dividends |
Federal Reserve regulations require the Bank to maintain reserve balances based on the types and amounts of deposits received. The required reserve balances were $549 million and $398 million at December 31, 2014 and 2013, respectively. | |
As of December 31, 2014 and 2013, loans of $54.2 billion and $50.2 billion, respectively, were pledged as collateral for borrowings, including those to the Federal Reserve Bank and FHLB, to secure public and trust department deposits, and for repurchase agreements as required by contract or law. See Note 3 to these consolidated financial statements for the carrying amounts of securities that were pledged as collateral. | |
The Federal Reserve Act restricts the amount and the terms of both credit and non-credit transactions between a bank and its non-bank affiliates. Such transactions may not exceed 10% of the bank's capital and surplus (which for this purpose represents Tier 1 and Tier 2 capital, as calculated under the risk-based capital guidelines, plus the balance of the allowance for loan losses excluded from Tier 2 capital) with any single non-bank affiliate and 20% of the bank's capital and surplus with all its non-bank affiliates. Transactions that are extensions of credit may require collateral to be held to provide added security to the bank. See Note 18 to these consolidated financial statements for further discussion of risk-based capital. At December 31, 2014, $366 million remained outstanding from Bankers Commercial Corporation on notes payable to the Bank and $121 million remained outstanding from all other non-bank affiliates. The Bankers Commercial Corporation notes were fully collateralized with equipment lease assets. | |
The declaration of a dividend by the Bank to the Company is subject to the approval of the OCC if the total of all dividends declared in the current calendar year plus the preceding two years exceeds the Bank's total net income in the current calendar year plus the preceding two years. The payment of dividends is also limited by minimum capital requirements imposed on national banks by the OCC. |
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees | ||||
The following table summarizes the Company's commitments. | |||||
(Dollars in millions) | 31-Dec-14 | ||||
Commitments to extend credit | $ | 34,991 | |||
Issued standby and commercial letters of credit | $ | 5,836 | |||
Other commitments | $ | 175 | |||
Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. | |||||
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. Additionally, the Company enters into risk participations in bankers' acceptances wherein a fee is received to guarantee a portion of the credit risk on an acceptance of another bank. The majority of these types of commitments have terms of 1 year or less. At December 31, 2014, the carrying amount of the Company's risk participations in bankers' acceptances and standby and commercial letters of credit totaled $4 million. Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded credit commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet. | |||||
The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer. | |||||
Other commitments include commitments to fund principal investments and other securities. | |||||
Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately-held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate. | |||||
The Company has rental commitments under long-term operating lease agreements. For detail of these commitments, see Note 5 to these consolidated financial statements. | |||||
The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of December 31, 2014, the current exposure to loss under these contracts totaled $20 million, and the maximum potential exposure to loss in the future was estimated at $39 million. | |||||
The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Effective July 1, 2014, the U.S. branch banking operations of BTMU were integrated under the Bank's operations. The integration did not involve a legal entity combination, but rather an integration of personnel and certain business and support activities. As a result of this initiative, all of BTMU's banking activities in the Americas are managed by employees of the Bank, which includes the addition of approximately 2,300 U.S. employees formerly employed by BTMU. This initiative also included the transfer of ownership of BTMU’s U.S. corporate customer list, available-for-sale securities of $70 million and employee-related liabilities to the Bank. Immediately after the transfer, the transferred liabilities were adjusted to conform to the Company's GAAP accounting policies resulting in a $9 million increase in retained earnings and a $9 million decrease in liabilities, resulting in total liabilities transferred of $30 million. The Company's additional paid-in capital increased by $31 million. | |
As a result of this initiative, the Bank and BTMU entered into a master services agreement, which provides for employees of the Bank to perform and make available various business, banking, financial, and administrative and support services (the Services) and facilities for BTMU in connection with the operation and administration of BTMU's businesses in the U.S. (including BTMU's U.S. branches). In consideration for the Services, BTMU pays to the Bank fee income, which reflects market-based pricing. Costs related to the Services performed by the transferred employees are primarily reflected in salaries and employee benefits expense. For the year ended December 31, 2014, the Company recorded $319 million in fee income from this initiative, including $206 million related to support services provided by the Company to BTMU. Substantially offsetting the fee income was $193 million, primarily in salaries and benefits expense, related to these support services. The remaining fee income was recognized through revenue sharing agreements with BTMU, with associated costs included within the Company’s 2014 results. The Company also recorded $14 million of expenses due to BTMU, which are included within noninterest expense. Amounts due from and to BTMU, which are included in other assets and other liabilities, respectively, are generally settled monthly and were $61 million and $16 million, respectively, at December 31, 2014. | |
Prior to July 1, 2014, independent of the business integration initiative, the Company had, and expects to have in the future, banking transactions and other transactions in the ordinary course of business with BTMU and with its affiliates. During 2014, 2013 and 2012, such transactions included, but were not limited to, purchases and sales of loans, purchases and sales of interest rate derivatives and foreign exchange transactions, funds transfers, custodianships, investment advice and management, customer referrals, facility leases, and administrative and trust services. In September 2008, the Company established a $500 million, three-year unsecured revolving credit facility with BTMU. This credit facility was renewed and expires in July 2017. As of December 31, 2014, the Company had no outstanding balance under this facility. In the opinion of management, these transactions were made at rates, terms and conditions prevailing in the market and do not involve more than the normal risk of collectability or present other unfavorable features. In addition, some compensation for services rendered to the Company is paid to the expatriate officers from BTMU, and reimbursed by the Company to BTMU under a service agreement. The Company incurred expenditures related to the implementation of Basel III, which were reimbursed by BTMU, of $15 million in 2014, and expenditures related to the implementation of Basel II, which were reimbursed by BTMU, of $19 million and $39 million in 2013 and 2012, respectively. | |
The Company received a $1.2 billion common equity contribution from BTMU and also issued $300 million of subordinated debt to BTMU during the fourth quarter of 2013. During the second quarter of 2013, the Bank issued $750 million of subordinated debt to BTMU. See Note 10 to these consolidated financial statements for more information on subordinated debt due to BTMU. | |
At December 31, 2014 and 2013, the Company had derivative contracts totaling $634 million and $735 million, respectively, in notional balances, with $1 million in net unrealized gains and $7 million in net unrealized losses with BTMU and its affiliates in 2014 and 2013, respectively. In 2014, 2013 and 2012, the Company recorded noninterest income of $38 million, $33 million and $21 million, respectively, and noninterest expenses of $9 million, $13 million and $18 million, respectively, for fees paid, revenue sharing and facility and staff arrangements. | |
The Company may extend credit to BTMU, in the form of daylight overdrafts in BTMU's accounts with the Company in the ordinary course of business. There were no overdraft balances outstanding as of December 31, 2014 and 2013. |
Business_Segments
Business Segments | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||
Business Segments | Business Segments | ||||||||||||||||||||||||||||||||
The Company has five reportable segments: Retail Banking & Wealth Markets, Commercial Banking, U.S. Corporate Banking, Transaction Banking, and Investment Banking & Markets. Below is a detailed description of these reportable segments. | |||||||||||||||||||||||||||||||||
Retail Banking & Wealth Markets | |||||||||||||||||||||||||||||||||
Retail Banking & Wealth Markets offers a range of banking products and services to individuals and small businesses, including high net worth individuals and institutional clients, delivered generally through a network of branches, private banking offices, ATMs, broker mortgage referrals, telephone services, and web-based and mobile banking applications. These products and services include mortgages, home equity lines of credit, consumer and commercial loans, deposit accounts, financial planning and investments. | |||||||||||||||||||||||||||||||||
The Consumer Lending Division provides the centralized origination, underwriting, processing, servicing, collection and administration for consumer assets including residential mortgages. | |||||||||||||||||||||||||||||||||
The Consumer and Business Banking Division serves its customers through 353 full-service branches in California and 46 full-service branches in Washington and Oregon, as well as through ATMs, call centers, web-based and mobile internet banking applications and through alliances with other financial institutions. Consumer and Business Banking provides checking and deposit products and services; bill and loan payment, merchant, and various types of financing and investment services; and products including credit cards. | |||||||||||||||||||||||||||||||||
The Wealth Markets Division serves its customers through the Private Bank; UnionBanc Investment Services, LLC, a subsidiary of MUB and a registered broker-dealer and investment advisor; and Asset Management which includes Highmark, a subsidiary of MUB and a registered investment advisor. Wealth Markets provides investment management and advisory services to institutional clients, wealth planning, deposits and risk management strategies, trust and estate administration, as well as investment sub-advisory services to the unaffiliated Highmark Funds. Products provided to its customers include traditional brokerage, managed accounts, annuities, mutual funds, fixed income products and insurance and customized lending. | |||||||||||||||||||||||||||||||||
Commercial Banking | |||||||||||||||||||||||||||||||||
Commercial Banking provides a broad spectrum of commercial credit products including commercial loans, accounts receivable, inventory, trade and real estate financing to primarily U.S.-based corporate customers with annual sales generally ranging from $15 million to $2 billion. Commercial Banking offers its customers a range of noncredit services and products, which include global treasury management and capital markets solutions, foreign exchange and various interest rate risk and commodity risk management products through cooperation with other segments. | |||||||||||||||||||||||||||||||||
Commercial Banking is comprised of five main divisions: Western Markets, which serves companies primarily in California, Oregon and Washington; Petroleum, which serves oil and gas companies; Expansion Markets, which serves clients nationally, outside of the western states, and also targets certain defined industries such as entertainment and technology; Specialized Products, which focuses on specific industries on a national basis including commercial finance, funds finance, environmental services, non-profits, healthcare, and transportation, aerospace and defense; and Real Estate Industries, which serves professional real estate investors and developers. Additionally, through its Community Development Finance unit, tax credit investments are made in affordable housing projects, as well as construction and permanent financing. | |||||||||||||||||||||||||||||||||
U.S. Corporate Banking | |||||||||||||||||||||||||||||||||
U.S. Corporate Banking provides commercial lending products, including commercial loans, lines of credit and project financing, to corporate customers with revenues generally greater than $2 billion. The segment employs an industry-focused strategy including dedicated coverage teams in General Industries, Power and Utilities, Oil and Gas, Telecom and Media, Technology, Healthcare, Public Finance, and Financial Institutions (predominantly Insurance and Asset Managers). By working with the Company's other segments, U.S. Corporate Banking offers its customers a range of noncredit services, which include global treasury management and capital market solutions, and foreign exchange and various interest rate risk and commodity risk management products. | |||||||||||||||||||||||||||||||||
Transaction Banking | |||||||||||||||||||||||||||||||||
Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. This segment also manages the digital banking channels for retail, small business, wealth management and commercial clients, as well as commercial product development. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations. | |||||||||||||||||||||||||||||||||
Investment Banking & Markets | |||||||||||||||||||||||||||||||||
Investment Banking & Markets, which includes Global Capital Markets of the Americas, works with the Company's other segments to provide customers structured credit services, including project finance, leasing and equipment finance, and securitizations. Investment Banking & Markets also provides capital markets solutions, including syndicated loans, equity and debt underwriting, tax equity and merchant banking investments; risk management solutions, including foreign exchange, interest rate and energy risk management solutions; and facilitates merchant and investment banking-related transactions. | |||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||
"Other" includes the Asian Corporate Banking segment, Corporate Treasury and the impact of certain corporate activities. The Asian Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan and other Asian countries. Corporate Treasury is responsible for ALM, wholesale funding and the ALM investment and derivatives hedging portfolios. These Treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO. For additional discussion regarding these risk management activities, see "Quantitative and Qualitative Disclosures About Market Risk" in Part II, Item 7A. of this Form 10-K. | |||||||||||||||||||||||||||||||||
Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and the FDIC covered assets. | |||||||||||||||||||||||||||||||||
The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and income statement items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The fund transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. The activity-based costing methodology allocates certain indirect costs, such as operations and technology expense, to the segments based on studies of billable unit costs for product or data processing. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. During 2014, the Company revised the funds transfer pricing methodology with respect to reference rates for certain commercial deposits. The Company also continued to refine its organizational structure resulting from the internal management structure implemented as part of the BTMU Americas Holdings business integration initiative established in 2013. Prior period results have been adjusted to reflect these changes. | |||||||||||||||||||||||||||||||||
The Company generally applies a "market view" perspective in measuring the business segments. The market view is a measurement of customer markets aggregated to show all revenues generated and expenses incurred from all products and services sold to those customers regardless of where product areas organizationally report. Therefore, revenues and expenses are included in both the business segment that provides the service and the business segment that manages the customer relationship. The duplicative results from this internal management accounting view are eliminated in "Reconciling Items." During 2014, the Company updated its market view methodology for the Project Finance division within the Investment Banking & Markets segment to also include these revenues and expenses in the U.S. Corporate segment. The Company also updated its market view methodology to better align certain acquired assets with other similar assets. Prior period results have been adjusted to reflect these changes. | |||||||||||||||||||||||||||||||||
As of and for the Twelve Months Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,385 | $ | 1,016 | $ | 173 | $ | 442 | $ | 175 | $ | 65 | $ | (394 | ) | $ | 2,862 | ||||||||||||||||
Noninterest income (expense) | 330 | 221 | 119 | 165 | 357 | 157 | (226 | ) | 1,123 | ||||||||||||||||||||||||
Total revenue | 1,715 | 1,237 | 292 | 607 | 532 | 222 | (620 | ) | 3,985 | ||||||||||||||||||||||||
Noninterest expense | 1,347 | 440 | 112 | 363 | 166 | 630 | (159 | ) | 2,899 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | (7 | ) | 21 | (24 | ) | (3 | ) | 35 | (5 | ) | (11 | ) | 6 | ||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 375 | 776 | 204 | 247 | 331 | (403 | ) | (450 | ) | 1,080 | |||||||||||||||||||||||
Income tax expense (benefit) | 148 | 188 | 80 | 97 | 84 | (146 | ) | (177 | ) | 274 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 227 | 588 | 124 | 150 | 247 | (257 | ) | (273 | ) | 806 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 227 | $ | 588 | $ | 124 | $ | 150 | $ | 247 | $ | (238 | ) | $ | (273 | ) | $ | 825 | |||||||||||||||
Total assets, end of period | $ | 37,722 | $ | 38,727 | $ | 5,130 | $ | 1,779 | $ | 6,195 | $ | 27,707 | $ | (3,582 | ) | $ | 113,678 | ||||||||||||||||
As of and for the Twelve Months Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,348 | $ | 913 | $ | 137 | $ | 446 | $ | 184 | $ | 38 | $ | (350 | ) | $ | 2,716 | ||||||||||||||||
Noninterest income (expense) | 371 | 193 | 81 | 160 | 210 | 66 | (205 | ) | 876 | ||||||||||||||||||||||||
Total revenue | 1,719 | 1,106 | 218 | 606 | 394 | 104 | (555 | ) | 3,592 | ||||||||||||||||||||||||
Noninterest expense | 1,423 | 406 | 54 | 356 | 100 | 567 | (129 | ) | 2,777 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | (35 | ) | 17 | 2 | (3 | ) | 6 | (13 | ) | (3 | ) | (29 | ) | ||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 331 | 683 | 162 | 253 | 288 | (450 | ) | (423 | ) | 844 | |||||||||||||||||||||||
Income tax expense (benefit) | 130 | 174 | 64 | 99 | 78 | (184 | ) | (166 | ) | 195 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 201 | 509 | 98 | 154 | 210 | (266 | ) | (257 | ) | 649 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 201 | $ | 509 | $ | 98 | $ | 154 | $ | 210 | $ | (248 | ) | $ | (257 | ) | $ | 667 | |||||||||||||||
Total assets, end of period | $ | 34,421 | $ | 32,661 | $ | 4,755 | $ | 1,574 | $ | 5,937 | $ | 29,225 | $ | (2,679 | ) | $ | 105,894 | ||||||||||||||||
As of and for the Twelve Months Ended December 31, 2012: | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,201 | $ | 778 | $ | 113 | $ | 496 | $ | 174 | $ | 190 | $ | (350 | ) | $ | 2,602 | ||||||||||||||||
Noninterest income (expense) | 336 | 208 | 72 | 167 | 207 | 32 | (204 | ) | 818 | ||||||||||||||||||||||||
Total revenue | 1,537 | 986 | 185 | 663 | 381 | 222 | (554 | ) | 3,420 | ||||||||||||||||||||||||
Noninterest expense | 1,294 | 389 | 54 | 351 | 77 | 550 | (132 | ) | 2,583 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | 55 | (52 | ) | 21 | (1 | ) | 6 | (25 | ) | 4 | 8 | ||||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 188 | 649 | 110 | 313 | 298 | (303 | ) | (426 | ) | 829 | |||||||||||||||||||||||
Income tax expense (benefit) | 74 | 179 | 43 | 123 | 86 | (118 | ) | (167 | ) | 220 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 114 | 470 | 67 | 190 | 212 | (185 | ) | (259 | ) | 609 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 114 | $ | 470 | $ | 67 | $ | 190 | $ | 212 | $ | (166 | ) | $ | (259 | ) | $ | 628 | |||||||||||||||
Total assets, end of period | $ | 31,809 | $ | 25,318 | $ | 3,822 | $ | 1,564 | $ | 7,137 | $ | 29,133 | $ | (1,775 | ) | $ | 97,008 | ||||||||||||||||
Condensed_MUFG_Americas_Holdin
Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed UnionBanCal Corporation Unconsolidated Financial Statements (Parent Company) | Condensed MUFG Americas Holding Corporation Unconsolidated Financial Statements (Parent Company) | ||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 328 | $ | 191 | |||||||||
Investment in subsidiaries | 15,404 | 14,784 | |||||||||||
Other assets | 4 | 5 | |||||||||||
Total assets | $ | 15,736 | $ | 14,980 | |||||||||
Liabilities and Stockholder's Equity | |||||||||||||
Long-term debt | $ | 750 | $ | 763 | |||||||||
Other liabilities | 1 | 2 | |||||||||||
Total liabilities | 751 | 765 | |||||||||||
Stockholder's equity | 14,985 | 14,215 | |||||||||||
Total liabilities and stockholder's equity | $ | 15,736 | $ | 14,980 | |||||||||
Condensed Statements of Income | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Income: | |||||||||||||
Dividends from bank subsidiary | $ | — | $ | — | $ | 950 | |||||||
Interest income on advances to subsidiaries and deposits in bank | — | — | 1 | ||||||||||
Total income | — | — | 951 | ||||||||||
Expense: | |||||||||||||
Interest expense | 21 | 31 | 23 | ||||||||||
Other expense | 4 | 4 | — | ||||||||||
Total expense | 25 | 35 | 23 | ||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | (25 | ) | (35 | ) | 928 | ||||||||
Income tax benefit | (10 | ) | (14 | ) | (9 | ) | |||||||
Income (loss) before equity in undistributed net income of subsidiaries | (15 | ) | (21 | ) | 937 | ||||||||
Equity in undistributed net income (loss) of subsidiaries: | |||||||||||||
Bank subsidiary | 761 | 625 | (403 | ) | |||||||||
Nonbank subsidiaries | 79 | 63 | 94 | ||||||||||
Net Income | $ | 825 | $ | 667 | $ | 628 | |||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Net income | $ | 825 | $ | 667 | $ | 628 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net (income) loss of subsidiaries | (840 | ) | (688 | ) | 309 | ||||||||
Other, net | 1 | 14 | (14 | ) | |||||||||
Net cash provided by (used in) operating activities | (14 | ) | (7 | ) | 923 | ||||||||
Cash Flows from Investing Activities: | |||||||||||||
Investments in and advances to subsidiaries | — | (1,700 | ) | — | |||||||||
Repayment of investments in and advances to subsidiaries | 165 | 35 | 650 | ||||||||||
Net cash acquired from (paid for) acquisitions | — | — | (1,457 | ) | |||||||||
Net cash used in investing activities | 165 | (1,665 | ) | (807 | ) | ||||||||
Cash Flows from Financing Activities: | |||||||||||||
Capital contribution from BTMU | — | 1,200 | — | ||||||||||
Proceeds from issuance of subordinated loan due to BTMU | — | 300 | — | ||||||||||
Proceeds from issuance of senior debt | — | — | 397 | ||||||||||
Repayment of subordinated debt | — | (400 | ) | — | |||||||||
Repayment of junior subordinated debt | (14 | ) | — | — | |||||||||
Other, net | — | — | (2 | ) | |||||||||
Net cash provided by (used in) financing activities | (14 | ) | 1,100 | 395 | |||||||||
Net increase (decrease) in cash and cash equivalents | 137 | (572 | ) | 511 | |||||||||
Cash and cash equivalents at beginning of year | 191 | 763 | 252 | ||||||||||
Cash and cash equivalents at end of year | $ | 328 | $ | 191 | $ | 763 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Nature of Operations (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation and Basis of Financial Statement Presentation | Principles of Consolidation and Basis of Financial Statement Presentation | |
The consolidated financial statements include the accounts of the Company and other entities in which the Company has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The primary beneficiary of a VIE is the entity that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and has the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. Results of operations from VIEs are included from the dates that the Company became the primary beneficiary. All intercompany transactions and balances with consolidated entities are eliminated in consolidation. | ||
The Company accounts for equity investments over which it exerts significant influence using the equity method of accounting. Non-marketable equity investments where the Company does not exert significant influence are accounted for at cost. Investments accounted for under both the equity method and cost method are included in other assets. | ||
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP) The policies that materially affect the determination of financial position, results of operations and cash flows are summarized below. | ||
The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management's expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company's results of operations and financial condition in the near term. Significant estimates made by management in the preparation of the Company's financial statements include, but are not limited to, the fair value of assets acquired and liabilities assumed (Note 2), the evaluation of other-than-temporary impairment on investment securities (Note 3), the allowance for credit losses (Note 4), purchased credit-impaired loans (Note 4), goodwill impairment (Note 6), fair value of financial instruments (Note 11), hedge accounting (Note 12), pension accounting (Note 15), and income taxes (Note 17). | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash and due from banks, interest bearing deposits in banks, and federal funds sold and securities purchased under resale agreements, which have original maturities less than 90 days. | ||
Resale and Repurchase Agreements | Resale and Repurchase Agreements | |
Transactions involving purchases of securities under agreements to resell (reverse repurchase agreements or reverse repos) or sales of securities under agreements to repurchase (repurchase agreements or repos) are accounted for as collateralized financings except where the Company does not have an agreement to sell (or purchase) the same or substantially the same securities before maturity at a fixed or determinable price. These agreements accounted for as collateralized financings are recorded at the amounts at which the securities were acquired or sold, plus accrued interest, and are carried at amortized cost. The Company's policy is to obtain possession of collateral with a market value equal to or in excess of the principal amount financed under resale agreements. Collateral is valued daily, and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. | ||
Trading Account Assets and Liabilities | Trading Account Assets and Liabilities | |
Trading account assets and liabilities are recorded at fair value and include certain securities and derivatives. Securities are classified as trading when management acquires them with the intent to hold for short periods of time in order to take advantage of anticipated changes in fair values or as an accommodation to customers. Substantially all of the securities have a high degree of liquidity and a readily determinable fair value. Interest on securities classified as trading is included in interest income, and realized gains and losses from sale and unrealized fair value adjustments are recognized in noninterest income. | ||
Derivatives included in trading account assets and liabilities are entered into for trading purposes or as an accommodation to customers. Contracts primarily include interest rate swaps and options, commodity swaps and options, foreign exchange contracts and equity options relating to our market-linked CD product. The Company nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the Company and the derivative counterparty. Changes in fair values and realized income or expense for trading asset and liability derivatives are included in noninterest income. | ||
Securities | Securities | |
Securities are classified based on management's intent and are recorded on the consolidated balance sheet as of the trade date, when acquired in a regular-way trade. Debt securities for which management has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Debt securities and equity securities with readily determinable fair values that are not classified as trading assets or held to maturity are classified as available for sale and are carried at fair value, with the unrealized gains or losses reported net of taxes as a component of AOCI in stockholder's equity until realized. | ||
Interest income on debt securities classified as either available for sale or held to maturity includes the amortization of premiums and the accretion of discounts using a method that produces a level yield and is included in interest income on securities. | ||
Debt securities in the available for sale and held to maturity portfolios are subject to impairment testing when their fair value is lower than amortized cost at the end of a reporting period. | ||
Realized gains and losses on the sale of available for sale securities are included in net interest income. The specific identification method is used to calculate realized gains and losses on sales. | ||
Securities available for sale that are pledged under an agreement to repurchase and which may be sold or repledged under that agreement are separately identified as pledged as collateral. | ||
Other-than-Temporary Impairment | Other-than-Temporary Impairment | |
Debt securities available for sale and debt securities held to maturity are subject to impairment testing when a security's fair value is lower than its amortized cost. Debt securities with unrealized losses are considered other-than-temporarily impaired if we intend to sell the debt security, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or if we do not expect to recover the entire amortized cost basis of the security. If we intend to sell the security, or if it is more likely than not that we will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the debt security. However, even if we do not expect to sell a debt security we must evaluate the expected cash flows to be received and determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts related to factors other than credit losses are recorded in other comprehensive income. For further information on our other-than-temporary impairment analysis, see Note 3 to our Consolidated Financial Statements in this Form 10-K. | ||
Marketable equity securities are subject to testing for other-than-temporary impairment when there is a severe or sustained decline in market price below the amount recorded for that investment. The Company considers the issuer's financial condition, capital strength, and near-term prospects in assessing whether other-than-temporary impairment exists. An other-than-temporary impairment results in a write-down recognized in earnings equal to the entire difference between the carrying amount and fair value of the equity security. | ||
Loans Held for Investment, Purchased Credit-Impaired Loans, Other Acquired Loans and Loans Held for Sale | Loans Held for Investment, Purchased Credit-Impaired Loans, Other Acquired Loans and Loans Held for Sale | |
Loans held for investment are reported at the principal amounts outstanding, net of charge-offs, unamortized nonrefundable loan fees, direct loan origination costs, purchase premiums and discounts, and a historical fair value adjustment related to the Company's privatization transaction. Where loans are held for investment, the net basis adjustment excluding charge-offs on the loan is generally recognized in interest income on an effective yield basis over the contractual loan term. | ||
Nonaccrual loans are those for which management has discontinued accrual of interest because there exists significant uncertainty as to the full and timely collection of either principal or interest. Loans are generally placed on nonaccrual when such loans have become contractually past due 90 days with respect to principal or interest. Past due status is determined based on the contractual terms of the loan and the number of payment cycles since the last payment date. Interest accruals are continued past 90 days for certain small business loans and consumer installment loans, which are charged off at 120 days. For the commercial loan portfolio segment, interest accruals are also continued for loans that are both well-secured and in the process of collection. | ||
When a loan is placed on nonaccrual status, all previously accrued but uncollected interest is reversed against current period interest income. When full collection of the outstanding principal balance is in doubt, subsequent payments received are first applied to unpaid principal and then to uncollected interest. A loan may be returned to accrual status at such time as the loan is brought fully current as to both principal and interest, and such loan is considered to be fully collectible on a timely basis. The Company's policy also allows management to continue the recognition of interest income on certain loans placed on nonaccrual status. This portion of the nonaccrual portfolio is referred to as "Cash Basis Nonaccrual" under which the accrual of interest is suspended and interest income is recognized only when collected. This policy applies to consumer portfolio segment loans and commercial portfolio segment loans that are well-secured and in management's judgment are considered to be fully collectible but the timely collection of payments is in doubt. | ||
A TDR is a restructuring of a loan in which the creditor, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that it would not otherwise consider. A loan subject to such a restructuring is accounted for as a TDR. A TDR typically involves a modification of terms such as a reduction of the interest rate below the current market rate for a loan with similar risk characteristics or extending the maturity date of the loan without corresponding compensation or additional support. The Company measures impairment of a TDR using the methodology described for individually impaired loans (see "Allowance for Loan Losses" below). For the consumer portfolio segment, TDRs are initially placed on nonaccrual and typically, a minimum of six consecutive months of sustained performance is required before returning to accrual status. For the commercial portfolio segment, the Company generally determines accrual status for TDRs by performing an individual assessment of each loan, which may include, among other factors, the consideration of demonstrated performance by the borrower under the previous terms. | ||
Except for certain transactions between entities under common control, loans acquired in a transfer, including business combinations, are recorded at fair value at the acquisition date, factoring in credit losses expected to be incurred over the life of the loan. | ||
For acquired loans where there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments, the loans are accounted for as purchased credit-impaired loans. This guidance requires that the excess of the cash flows initially expected to be collected over the loan's fair value at the acquisition date (i.e., the accretable yield) be accreted into interest income over the loan's estimated remaining life using the effective yield method, provided that the timing and amount of future cash flows is reasonably estimable. Accordingly, such loans are not classified as nonaccrual and are considered to be accruing. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. Accordingly, an allowance for loan losses is not carried over or recorded for purchased credit-impaired loans as of the acquisition date. Substantially all of the remaining purchased credit-impaired loans are aggregated within pools based on common risk characteristics, which results in the pool becoming the unit of account. | ||
Subsequent to acquisition of purchased credit-impaired loans, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions that are reflective of current market conditions. If there is a probable decrease in cash flows expected to be collected (other than due to decreases in interest rate indices or changes in prepayments), the Company charges the provision for credit losses, resulting in an increase to the allowance for loan losses. If there is a probable and significant increase in cash flows expected to be collected, the Company will first reverse any previously established allowance for loan losses and then increase interest income as a prospective yield adjustment over the remaining life of the pool of loans, which also has the effect of reclassifying a portion of the nonaccretable difference to accretable yield. The impact of changes in variable interest rates is recognized prospectively as adjustments to interest income. | ||
Modifications of purchased credit-impaired loans that are accounted for within loan pools do not result in the removal of these loans from the pool even if the modification would otherwise be considered a TDR. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Accordingly, modifications of loans within such pools are not considered TDRs. | ||
For other acquired loans, the purchase premium or discount is accreted to interest income over the remaining contractual life of the loans when the loans are performing, or immediately upon sale or prepayment. | ||
Loans held for sale, which are recorded in other assets, are carried at the lower of cost or fair value and measured on an individual basis for commercial loans and on an aggregate basis for residential mortgage loans. Changes in fair value are recognized in other noninterest income. Nonrefundable fees, direct loan origination costs, and purchase premiums and discounts related to loans held for sale are deferred and recognized as a component of the gain or loss on sale. Contractual interest earned on loans held for sale is recognized in interest income. | ||
The Company primarily offers two types of leases to customers: 1) direct financing leases where the assets leased are acquired without additional financing from other sources, and 2) leveraged leases where a substantial portion of the financing is provided by debt with no recourse to the Company. Direct financing leases and leverage leases are recorded based on the amount of minimum lease payments receivable, unguaranteed residual value accruing to the benefit of the lessor, unamortized initial direct costs, and are reduced for any unearned income. Leveraged leases are also recorded net of any nonrecourse debt. | ||
Allowance for Loan Losses | Allowance for Loan Losses | |
The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable estimated losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current period operating results and decreased by the amount of charge-offs, net of recoveries. The Company's methodology for assessing the appropriateness of the allowance consists of several key elements, which include the allowance for loans collectively evaluated for impairment, the allowance for loans individually evaluated for impairment, and the unallocated allowance. Management estimates probable losses inherent in the portfolio based on a loss emergence period. The loss emergence period is the estimated average period of time between a material adverse event that affects the creditworthiness of a borrower and the subsequent recognition of a loss. Updates of the loss emergence period are performed when significant events cause management to reexamine data. Management develops and documents its systematic methodology for determining the allowance for loan losses by first dividing its portfolio into segments—the commercial segment, consumer segment and purchased credit-impaired loans. The Company further divides the portfolio segments into classes based on initial measurement attributes, risk characteristics or its method of monitoring and assessing credit risk. The classes for the Company include commercial and industrial, commercial mortgage, construction, residential mortgage, home equity and other consumer loans, and purchased credit-impaired loans. While the Company's methodology attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. | ||
For the commercial portfolio segment, the allowance for loans collectively evaluated for impairment is calculated by applying loss factors to outstanding loans and most unused commitments, based on the internal risk rating of such loans. Loss factors are based on historical loss experience and may be adjusted for significant qualitative considerations that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Those qualitative considerations are based upon management's evaluation of certain risks that may be identified from current conditions and developments within the portfolio that are not directly measured in the computation of the loss factors. Loss factors for individually graded credits are derived from a loan migration application that tracks historical losses over an economic cycle, which management believes captures the inherent losses in our loan portfolio. | ||
For the consumer portfolio segment, loans are generally pooled by product type with similar risk characteristics. The Company estimates the allowance for loans collectively evaluated for impairment based on forecasted losses. For the purchased credit-impaired segment, we charge the provision for loan losses, resulting in an increase to the allowance for loan losses when there is a probable decrease in cash flows expected to be collected. | ||
The allowance for loans collectively evaluated for impairment also includes attributions for certain sectors within the commercial and consumer portfolio segments to account for probable losses based on incurred loss events that are currently not reflected in the derived loss factors. Segment attributions are calculated based on migration scenarios for the commercial portfolio and specific attributes applicable to the consumer portfolio. Segment considerations are revised periodically as portfolio and environmental conditions change. | ||
Estimates of cash flows expected to be collected for purchased credit-impaired loans are updated each reporting period. If there is a probable decrease in expected cash flows to be collected after acquisition (other than due to decreases in interest rate indices or changes in voluntary prepayments), the Company charges the provision for loan losses and establishes an allowance for loan losses. | ||
The Company individually evaluates for impairment larger nonaccruing loans within the commercial portfolio. Residential mortgage and consumer loans are not individually evaluated for impairment unless they represent TDRs. Loans are considered impaired when the evaluation of current information regarding the borrower's financial condition, loan collateral, and cash flows indicates that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including interest payments. The amount of impairment is measured using the present value of expected future cash flows discounted at the loan's effective rate, the loan's observable market price, or the fair value of the collateral, if the loan is collateral dependent. | ||
The unallocated allowance is composed of attributions that are intended to capture probable losses from adverse changes in credit migration and other inherent losses that are not currently reflected in the allowance for loan losses that are ascribed to our portfolio segments. | ||
Significant risk characteristics considered in estimating the allowance for credit losses include the following: | ||
• | Commercial and industrial—industry specific economic trends and individual borrower financial condition | |
• | Construction and commercial mortgage loans—type of property (i.e., residential, commercial, industrial), geographic concentrations, and risks and individual borrower financial condition | |
• | Residential mortgage and consumer—historical and expected future charge-offs, borrower's credit, property collateral, and loan characteristics | |
Loans are charged-off in whole or in part when they are considered to be uncollectible. Loans in the commercial loan portfolio segment are generally considered uncollectible based on an evaluation of borrower financial condition as well as the value of any collateral. Loans in the consumer portfolio segment are generally considered uncollectible based on past due status or the execution of certain TDR modifications such as discharge through Chapter 7 bankruptcy and the value of any collateral. Recoveries of amounts previously charged off are recorded as a recovery to the allowance for loan losses. | ||
Allowance for Losses on Unfunded Credit Commitments | Allowance for Losses on Unfunded Credit Commitments | |
The Company maintains an allowance for losses on unfunded credit commitments to absorb losses inherent in those commitments upon funding. The Company's methodology for assessing the appropriateness of this allowance is the same as that used for the allowance for loan losses (see "Allowance for Loan Losses" above) and incorporates an assumption based upon historical experience of likely utilization of the commitment. The allowance for losses on unfunded credit commitments is classified as other liabilities and the change in this allowance is recognized in the provision for credit losses. Losses on unfunded credit commitments are identified when exposures committed to customers facing difficulty are drawn upon, and subsequently result in charge-offs. | ||
Premises and Equipment | Premises and Equipment | |
Premises and equipment are carried at cost, less accumulated depreciation and amortization, impairment, and fair value adjustments related to the Company's privatization transaction. Depreciation and amortization are calculated using the straight-line method over the estimated useful life of each asset. Lives of premises range from ten to fifty years; lives of furniture, fixtures and equipment range from three to eight years. Leasehold improvements are amortized over the term of the respective lease or the estimated useful life of the improvement, whichever is shorter. | ||
Long-lived assets that are held for use are evaluated periodically for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment is determined if the expected undiscounted future cash flows of a long-lived asset or group of assets is lower than its carrying amount. In the event of impairment, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset. The impairment loss is recognized in noninterest expense. Restoration of a previously recognized impairment loss is prohibited. | ||
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets | |
Intangible assets represent purchased assets that lack physical substance and can be separately distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold, exchanged, or licensed. Intangible assets are recorded at fair value at the date of acquisition. | ||
Intangible assets that have indefinite lives are tested for impairment at least annually, and more frequently in certain circumstances. Intangible assets that have finite lives, which include core deposit intangibles, customer relationships, non-compete agreements and trade names, are amortized either using the straight-line method or a method that patterns the manner in which the economic benefit is consumed. Intangible assets are amortized over their estimated periods of benefit, which range from three to forty years. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | ||
Goodwill is assessed for impairment at least annually at the reporting unit level either qualitatively or quantitatively. If the elected qualitative assessment results indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Various valuation methodologies are applied to carry out the first step of the quantitative impairment test by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying amount, a second step is required to measure the amount of impairment by comparing the implied fair value of the goodwill assigned to the reporting unit with the carrying amount of that goodwill. Goodwill impairment is recognized through a direct write down to its carrying amount and subsequent reversals of goodwill impairment are prohibited. | ||
Federal Deposit Insurance Corporation (FDIC) Indemnification Asset | FDIC Indemnification Asset | |
In conjunction with the FDIC-assisted acquisitions of Frontier and Tamalpais in 2010, the Company entered into loss share agreements with the FDIC. Under the terms of the purchase and assumption and loss share agreements, the FDIC will reimburse the Company for certain losses on the covered assets, subject to specific compliance, servicing, notification and reporting requirements. | ||
At the date of the acquisitions, the Company recorded an indemnification asset at fair value based on the present value of cash flows expected to be collected from the FDIC under the loss share agreements. Subsequent to acquisition, the indemnification asset is accounted for on the same basis as the related FDIC covered assets and is linked to the losses on those assets. The difference between the carrying amount and the undiscounted cash flows that the Company expects to collect from the FDIC is amortized into noninterest income over the life of the FDIC indemnification asset. Any increases in expected cash flows of covered loans due to decreases in expected credit losses are amortized over the lesser of the contractual term of the FDIC loss share agreement and the remaining life of the indemnified assets. Any decreases in cash flows of the covered loans due to increases in expected credit losses will increase the FDIC indemnification asset and adjust the provision for credit losses. At the date of the acquisitions, the Company also recorded a standalone liability for the FDIC's ability to clawback a portion of the loss share reimbursements paid to the Company. Because such consideration is contingently payable to the FDIC, the Company accounts for this liability as a form of contingent consideration that is recorded at fair value through noninterest expense. | ||
Other Real Estate Owned | Other Real Estate Owned | |
OREO represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. OREO is initially recorded in other assets at the date physical possession is received at the fair value as established by a current appraisal, adjusted for estimated costs to sell the asset. Any write-down on the date of transfer from loan classification is charged to the allowance for loan losses. Subsequently, OREO is measured at the lower of the acquisition date fair value or fair value less estimated costs to sell the asset. OREO values are reviewed on an ongoing basis and subsequent declines in an individual property's fair value are recognized in earnings in the current period or in certain instances as a charge to the allowance for loan losses. The net operating results from these assets are included in the current period in noninterest expense as foreclosed asset expense. | ||
Other Investments | Other Investments | |
The Company invests in private equity investments, which include direct investments in private companies. These nonmarketable equity investments are initially recorded at cost and are accounted for using the cost or equity method of accounting depending on whether the Company has significant influence over the investee. Under the equity method, the investment is adjusted for the Company's share of the investee's net income or loss for the period. Under the cost method, dividends received are recognized in other noninterest income, and dividends received in excess of the investee's earnings are considered a return of investment and are recorded as a reduction of investment cost. These investments are evaluated for other-than-temporary impairment if events or conditions indicate that it is probable that the carrying amount of the investment will not be fully recovered in the foreseeable future. If an investment is determined to be other-than-temporarily impaired, it is written down to its fair value through earnings. Fair value is estimated based on a company's business model, current and projected financial performance, capital needs and our exit strategy. As a practical expedient, fair value can also be estimated using the net asset value of the fund. All of these investments are included within other assets and any other-than-temporary impairment is recognized in other noninterest income. | ||
The Company invests in limited liability partnerships and other entities operating qualified affordable housing projects. These LIHC investments provide tax benefits to investors in the form of tax deductions from operating losses and tax credits. The unguaranteed LIHC investments are initially recorded at cost, and subsequently accounted for under the equity method of accounting with equity method losses recognized through noninterest expense. These investments are reviewed periodically for impairment. | ||
The Company invests in guaranteed LIHC investments where the availability of tax credits are guaranteed by a creditworthy entity. The investments are initially recorded at cost. When certain criteria are met, the investment is amortized over the period the tax credits are allocated to provide a constant effective yield, as a component of income tax expense. In other instances, the investment is accounted for under the equity method of accounting with equity method losses recorded in noninterest expense. These investments are reviewed periodically for impairment. | ||
The Company also invests in limited liability entities and trusts that operate renewable energy projects, either directly or indirectly. Tax credits, taxable income and distributions associated with these renewable energy projects may be allocated to investors according to the terms of the partnership agreements. These investments are accounted for under the equity method and are reviewed periodically for impairment, considering projected operating results and realizability of tax credits. | ||
Derivative Instruments Used in Hedging Relationships | Derivative Instruments Used in Hedging Relationships | |
The Company enters into a variety of derivative contracts as a means of managing the Company's interest rate exposure and designates such derivatives under qualifying hedge relationships. All such derivative instruments are recorded at fair value and are included in other assets or other liabilities. The Company offsets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting arrangement exists between the company and the derivative counterparty. | ||
At hedge inception, the Company designates a derivative instrument as a hedge of the fair value of a recognized asset or liability (i.e., fair value hedge), or a hedge of the variability in the expected future cash flows associated with either an existing recognized asset or liability or a probable forecasted transaction (i.e., cash flow hedge). | ||
Where hedge accounting is applied at hedge inception, the Company formally documents its risk management objective and strategy for undertaking the hedge, which includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, and how the hedge's effectiveness will be assessed prospectively and retrospectively. Both at the inception of the hedge and on an ongoing basis, the hedging instrument must be highly effective in offsetting changes in fair values or cash flows of the hedged item in order to qualify for hedge accounting. | ||
For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. For cash flow hedges, only ineffectiveness resulting from over-hedging is recorded in earnings as an adjustment to noninterest expense, with other changes in the fair value of the derivative instrument recognized in other comprehensive income. The amount in other comprehensive income is subsequently reclassified to net interest income in the period in which the cash flow from the hedged item is recognized in earnings. If a derivative instrument is no longer determined to be highly effective as a designated hedge, hedge accounting is discontinued and subsequent fair value adjustments of the derivative instrument are recorded in earnings. | ||
Transfers of Financial Assets | Transfers of Financial Assets | |
Transfers of financial assets in which the Company has surrendered control over the transferred assets are accounted for as sales. Control is generally considered to have been surrendered when the transferred assets have been legally isolated from the Company, the transferee has the right to pledge or exchange the assets without any significant constraints, and the Company has not entered into a repurchase agreement, does not hold significant call options and has not written significant put options on the transferred assets. In assessing whether control has been surrendered, the Company considers whether the transferee would be a consolidated affiliate and the impact of all arrangements or agreements made contemporaneously with, or in contemplation of, the transfer, even if they were not entered into at the time of transfer. | ||
Transfer Pricing | Transfer Pricing | |
As a result of the business integration initiative, employees of the Company perform management and support services to BTMU in connection with the operation and administration of BTMU’s businesses in the Americas. In consideration for the services provided, BTMU pays the Company fees under a master services agreement, which reflects market-based pricing for those services. The Company recognizes transfer pricing revenue when delivery (performance) has occurred or services have been rendered. Revenue is recognized based on the gross amount billed to BTMU without netting the associated costs to perform those services. Gross presentation is deemed appropriate in these instances as the Company acts as a principal when providing these services directly to BTMU. | ||
Operating Leases | Operating Leases | |
The Company enters into a variety of lease contracts generally for premises and equipment as a lessee. Lease contracts that do not transfer substantially all of the benefits and risks of ownership and do not meet the accounting requirements for capital lease classification are treated as operating leases. The Company accounts for the payments of rent on these contracts on a straight-line basis over the lease term. At inception of the lease term, any periods for which no rents are paid or escalation clauses are stipulated in the lease contract are included in the determination of the rent expense and recognized ratably over the lease term. | ||
The Company records liabilities for legal obligations associated with the future retirement of buildings and leasehold improvements at fair value when incurred. The assets are increased by the related liability and depreciated over the shorter of the estimated useful life of that asset or the lease term. | ||
Income Taxes | Income Taxes | |
The Company files consolidated U.S. federal income tax returns, foreign tax returns and various combined and separate company state income tax returns. | ||
Management evaluates two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period and includes income tax expense related to the Company's uncertain tax positions. Management determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management's judgment that realization is more likely than not. A tax position that meets the "more likely than not" recognition threshold is measured to determine the amount of benefit to recognize. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Foreign taxes paid are generally applied as credits to reduce U.S. federal income taxes payable. Interest and penalties are recognized as a component of income tax expense. | ||
Employee Pension and Other Postretirement Benefits | Employee Pension and Other Postretirement Benefits | |
The Company provides a variety of pension and other postretirement benefit plans for eligible employees and retirees. Provisions for the costs of these employee pension and other postretirement benefit plans are accrued and charged to expense when the benefit is earned. | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company grants restricted stock units settled in ADRs representing shares of common stock of the Company's ultimate parent company, MUFG, to employees. Stock-based compensation is measured at fair value on the grant date and is recognized in the Company's results of operations on a straight-line basis over the vesting period. The amortization of stock-based compensation reflects estimated forfeitures adjusted for actual forfeitures experience. | ||
Business Combinations | Business Combinations | |
The Company accounts for all business combinations using the acquisition method of accounting. Except for certain transactions between entities under common control, assets and liabilities acquired are recorded at fair value at the acquisition date, with the excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) recorded as goodwill. Management may further adjust the acquisition date fair values for a period of up to one year from the date of acquisition. The recognition at the acquisition date of an allowance for loan losses is not carried over or recorded as of acquisition date, as credit-related factors are incorporated directly into the fair value measurement of the loans. | ||
Recently Issued Accounting Pronouncements That Are Not Yet Effective | Recently Issued Accounting Pronouncements | |
Accounting for Investments in Qualified Affordable Housing Projects | ||
In January 2014, the FASB issued ASU 2014-1, Accounting for Investments in Qualified Affordable Housing Projects, which amends guidance on the accounting for investments in qualified affordable housing projects and permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method, if certain conditions are met. Under the proportional amortization method, reporting entities amortize the initial cost of the investment in proportion to tax credits and tax benefits received and recognize the amortization as a component of income tax expense. This guidance is effective for interim and annual periods beginning on January 1, 2015 with early adoption permitted. The guidance is required to be applied retrospectively to all periods presented upon adoption. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | ||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | ||
In January 2014, the FASB issued ASU 2014-4, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which provides guidance on when an in-substance repossession or foreclosure of residential real estate has occurred and when a creditor should derecognize the consumer mortgage loan and recognize the residential real estate. The guidance clarifies that an in-substance repossession or foreclosure occurs upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. In addition, the standard requires additional interim and annual disclosures. The guidance is effective for interim and annual periods beginning on January 1, 2015, with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | ||
Presentation of Financial Statements and Property, Plant and Equipment and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
In April 2014, the FASB issued ASU 2014-8, Presentation of Financial Statements and Property, Plant and Equipment and Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the criteria for reporting discontinued operations and requires additional disclosures for discontinued operations which meet the new criteria. The amendments in ASU 2014-8 limit discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have or will have a major effect on an entity’s operations and financial results. The guidance is effective for interim and annual periods beginning on January 1, 2015 with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued ASU 2014-9, Revenue from Contracts with Customers, which provides guidance on the core principle that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts, and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard is effective for interim and annual periods beginning on January 1, 2017. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. | ||
Transfers and Servicing - Amendments to Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure | ||
In June 2014, the FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. The guidance requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. Additionally, the guidance requires separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. It also requires enhanced disclosures about repurchase agreements and other similar transactions. The guidance is effective on January 1, 2015. Earlier application is prohibited. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | ||
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | ||
In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which provides guidance that a performance target that affects vesting of a share-based payment and that could be achieved after the completion of the employee’s requisite service period is a performance condition under the accounting guidance for share-based awards. The standard clarifies that the performance target would not be reflected in estimating the fair value of the award at the grant date. Instead, compensation cost for the award would be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. | ||
Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure | ||
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure, which provides guidance on the accounting for the classification of foreclosed loans that are fully-government-guaranteed. The guidance clarifies that a residential mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the loan has both of the following characteristics: (1) The loan has a government guarantee that is not separable from the loan before foreclosure entitling the creditor to the full unpaid principal balance of the loan, and (2) At the time of foreclosure, the creditor has the intent to make a claim on the guarantee and the ability to recover the full unpaid principal balance of the loan through the guarantee. The guidance is effective for interim and annual periods beginning on January 1, 2015, with early adoption permitted. The adoption of this guidance did not significantly impact the Company’s financial position or results of operations. | ||
Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity | ||
In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, which provides guidance on identifying whether the host contract in certain hybrid instruments is in the form of debt or equity. Such identification impacts the analysis of whether an embedded derivative exists in the instrument. The standard requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). Under this approach, an entity would determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or result of operations. | ||
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | ||
In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which eliminates the need to determine whether to classify an item as an extraordinary item in the income statement. Under current guidance, a reporting entity is required to separately classify, present and disclose extraordinary events apart from events that are unusual in nature or occur infrequently (but not both). The existing presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be expanded to include items that are both unusual in nature and occur infrequently. The guidance is effective for interim and annual periods beginning on January 1, 2016, with early adoption permitted. The guidance may be applied either prospectively or retrospectively. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. | ||
Amendments to the Consolidation Analysis | ||
In February 2015, the FASB issued ASU 2015-02, which is intended to improve current GAAP by making changes to targeted areas of the consolidation guidance. This standard simplifies current GAAP as it reduces the number of consolidation models by eliminating specialized consolidation guidance for certain investment funds that are exempt from applying the VIE model. The standard also changes the determination of whether limited partnerships and similar entities are VIEs or voting interest entities, the evaluation of the fees paid to decision makers and the application of the related-party guidance in determining whether a controlling financial interest exists. The guidance is effective for periods beginning on January 1, 2016, with early adoption permitted. The standard may be applied using a modified or full retrospective approach. Management is currently evaluating the impact to the Company’s financial position and results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies and Nature of Operations Summary of Significant Accounting Policies and Nature of Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Reclassification Adjustments | The following tables display the affected line items for 2013 and 2012: | ||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||
(Dollars in millions) | As Previously Reported | Reclassification Amounts | As Revised | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Depreciation, amortization and accretion, net | $ | 509 | $ | (75 | ) | $ | 434 | ||||||
Loans originated for sale | (276 | ) | (346 | ) | (622 | ) | |||||||
Net proceeds from sale of loans originated for sale | 226 | 373 | 599 | ||||||||||
Net cash provided by (used in) operating activities | 737 | (48 | ) | 689 | |||||||||
Cash Flows from Investing Activities: | |||||||||||||
Proceeds from sales of loans | 627 | (373 | ) | 254 | |||||||||
Net decrease (increase) in loans | (5,333 | ) | 421 | (4,912 | ) | ||||||||
Net cash provided by (used in) investing activities | (8,579 | ) | 48 | (8,531 | ) | ||||||||
Cash Flows from Financing Activities: | |||||||||||||
Net cash provided by (used in) financing activities | 8,554 | — | 8,554 | ||||||||||
Net change in cash and cash equivalents | $ | 712 | $ | — | $ | 712 | |||||||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||||||||
Net transfer of loans held for investment to loans held for sale | $ | 592 | $ | (346 | ) | $ | 246 | ||||||
For the Year Ended December 31, 2012 | |||||||||||||
(Dollars in millions) | As Previously Reported | Reclassification Amounts | As Revised | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Depreciation, amortization and accretion, net | $ | 518 | $ | (102 | ) | $ | 416 | ||||||
Loans originated for sale | (58 | ) | (153 | ) | (211 | ) | |||||||
Net proceeds from sale of loans originated for sale | 34 | 114 | 148 | ||||||||||
Net cash provided by (used in) operating activities | 601 | (141 | ) | 460 | |||||||||
Cash Flows from Investing Activities: | |||||||||||||
Proceeds from sales of loans | 316 | (114 | ) | 202 | |||||||||
Net decrease (increase) in loans | (4,355 | ) | 255 | (4,100 | ) | ||||||||
Net cash provided by (used in) investing activities | 249 | 141 | 390 | ||||||||||
Cash Flows from Financing Activities: | |||||||||||||
Net cash provided by (used in) financing activities | 446 | — | 446 | ||||||||||
Net change in cash and cash equivalents | $ | 1,296 | $ | — | $ | 1,296 | |||||||
Supplemental Schedule of Noncash Investing and Financing Activities: | |||||||||||||
Net transfer of loans held for investment to loans held for sale | $ | 308 | $ | (153 | ) | $ | 155 | ||||||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities | At December 31, 2014 and 2013, the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities are presented below. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 7,649 | $ | 2 | $ | 91 | $ | 7,560 | |||||||||||||||||||||||||||||
Privately issued | 166 | 3 | 1 | 168 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,689 | 15 | 13 | 1,691 | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2,527 | 4 | 37 | 2,494 | |||||||||||||||||||||||||||||||||
Other | 8 | 1 | — | 9 | |||||||||||||||||||||||||||||||||
Asset Liability Management securities | 12,039 | 25 | 142 | 11,922 | |||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 1,719 | 49 | 27 | 1,741 | |||||||||||||||||||||||||||||||||
Other | 53 | — | 1 | 52 | |||||||||||||||||||||||||||||||||
Equity securities | 8 | 2 | 1 | 9 | |||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 13,819 | $ | 76 | $ | 171 | $ | 13,724 | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 73 | $ | — | $ | — | $ | 73 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | 9,194 | 2 | 296 | 8,900 | |||||||||||||||||||||||||||||||||
Privately issued | 220 | 4 | 2 | 222 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,947 | 8 | 85 | 1,870 | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2,670 | 25 | 22 | 2,673 | |||||||||||||||||||||||||||||||||
Other | 34 | 1 | — | 35 | |||||||||||||||||||||||||||||||||
Asset Liability Management securities | 14,138 | 40 | 405 | 13,773 | |||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 1,968 | 35 | 43 | 1,960 | |||||||||||||||||||||||||||||||||
Other | 81 | — | 5 | 76 | |||||||||||||||||||||||||||||||||
Equity securities | 7 | 1 | — | 8 | |||||||||||||||||||||||||||||||||
Total securities available for sale | $ | 16,194 | $ | 76 | $ | 453 | $ | 15,817 | |||||||||||||||||||||||||||||
Securities in Unrealized Loss Position | The Company's securities held to maturity with a continuous unrealized loss position at December 31, 2014 and 2013 are shown below, separately for periods less than 12 months and 12 months or more. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | ||||||||||||||||||||||||||||
Value | in OCI | in OCI | Value | in OCI | in OCI | Value | in OCI | in OCI | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies—residential mortgage backed securities | $ | 399 | $ | — | $ | 1 | $ | 2,341 | $ | 66 | $ | 4 | $ | 2,740 | $ | 66 | $ | 5 | |||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 134 | — | — | 1,552 | 82 | 6 | 1,686 | 82 | 6 | ||||||||||||||||||||||||||||
Total securities held to maturity | $ | 533 | $ | — | $ | 1 | $ | 3,893 | $ | 148 | $ | 10 | $ | 4,426 | $ | 148 | $ | 11 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | Fair | Recognized | Not Recognized | ||||||||||||||||||||||||||||
Value | in OCI | in OCI | Value | in OCI | in OCI | Value | in OCI | in OCI | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | $ | 3,873 | $ | 76 | $ | 68 | $ | 54 | $ | 1 | $ | 1 | $ | 3,927 | $ | 77 | $ | 69 | |||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,016 | 46 | 10 | 489 | 46 | 2 | $ | 1,505 | $ | 92 | $ | 12 | |||||||||||||||||||||||||
Total securities held to maturity | $ | 4,889 | $ | 122 | $ | 78 | $ | 543 | $ | 47 | $ | 3 | $ | 5,432 | $ | 169 | $ | 81 | |||||||||||||||||||
The Company's securities available for sale with a continuous unrealized loss position at December 31, 2014 and 2013 are shown below, identified for periods less than 12 months and 12 months or more. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 611 | $ | 1 | $ | 6,258 | $ | 90 | $ | 6,869 | $ | 91 | |||||||||||||||||||||||||
Privately issued | 9 | — | 49 | 1 | 58 | 1 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 143 | — | 842 | 13 | 985 | 13 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 657 | 6 | 1,481 | 31 | 2,138 | 37 | |||||||||||||||||||||||||||||||
Other | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||
Asset Liability Management securities | 1,420 | 7 | 8,631 | 135 | 10,051 | 142 | |||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 75 | 3 | 937 | 24 | 1,012 | 27 | |||||||||||||||||||||||||||||||
Other | — | — | 22 | 1 | 22 | 1 | |||||||||||||||||||||||||||||||
Equity securities | 1 | 1 | 5 | — | 6 | 1 | |||||||||||||||||||||||||||||||
Total securities available for sale | $ | 1,496 | $ | 11 | $ | 9,595 | $ | 160 | $ | 11,091 | $ | 171 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | 8,508 | $ | 293 | $ | 147 | $ | 3 | $ | 8,655 | $ | 296 | |||||||||||||||||||||||||
Privately issued | 72 | 2 | 18 | — | 90 | 2 | |||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 1,274 | 80 | 58 | 5 | 1,332 | 85 | |||||||||||||||||||||||||||||||
Collateralized loan obligations | 1,879 | 21 | 10 | 1 | 1,889 | 22 | |||||||||||||||||||||||||||||||
Other | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||
Asset Liability Management securities | 11,733 | 396 | 234 | 9 | 11,967 | 405 | |||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 537 | 18 | 778 | 25 | 1,315 | 43 | |||||||||||||||||||||||||||||||
Other | 15 | 1 | 34 | 4 | 49 | 5 | |||||||||||||||||||||||||||||||
Equity Securities | 5 | — | — | — | 5 | — | |||||||||||||||||||||||||||||||
Total securities available for sale | $ | 12,290 | $ | 415 | $ | 1,046 | $ | 38 | $ | 13,336 | $ | 453 | |||||||||||||||||||||||||
Debt Securities by Contractual Maturity | The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Over One Year | Over Five Years | Over Ten Years | Total | ||||||||||||||||||||||||||||||||||
Through Five Years | Through Ten Years | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||||||||||||||||||||
U.S. Treasury | $ | 486 | $ | 489 | $ | — | $ | — | $ | — | $ | — | $ | 486 | $ | 489 | |||||||||||||||||||||
U.S. government-sponsored agencies | 25 | 25 | 100 | 100 | — | — | 125 | 125 | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | 1 | 1 | — | — | 5,941 | 6,012 | 5,942 | 6,013 | |||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 49 | 50 | 793 | 836 | 896 | 899 | 1,738 | 1,785 | |||||||||||||||||||||||||||||
Total securities held to maturity | $ | 561 | $ | 565 | $ | 893 | $ | 936 | $ | 6,837 | $ | 6,911 | $ | 8,291 | $ | 8,412 | |||||||||||||||||||||
The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | One Year or | Over One Year | Over Five Years | Over Ten Years | Total Fair | ||||||||||||||||||||||||||||||||
Less | Through | Through | Value | ||||||||||||||||||||||||||||||||||
Five Years | Ten Years | ||||||||||||||||||||||||||||||||||||
Asset Liability Management securities: | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies | $ | — | $ | 13 | $ | 458 | $ | 7,089 | $ | 7,560 | |||||||||||||||||||||||||||
Privately issued | — | 4 | — | 164 | 168 | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | 36 | 1,655 | 1,691 | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | 30 | 80 | 572 | 1,812 | 2,494 | ||||||||||||||||||||||||||||||||
Other | — | 2 | 7 | — | 9 | ||||||||||||||||||||||||||||||||
Asset Liability Management securities | 30 | 99 | 1,073 | 10,720 | 11,922 | ||||||||||||||||||||||||||||||||
Other debt securities: | |||||||||||||||||||||||||||||||||||||
Direct bank purchase bonds | 72 | 547 | 663 | 459 | 1,741 | ||||||||||||||||||||||||||||||||
Other | 5 | 12 | 4 | 31 | 52 | ||||||||||||||||||||||||||||||||
Total debt securities available for sale | $ | 107 | $ | 658 | $ | 1,740 | $ | 11,210 | $ | 13,715 | |||||||||||||||||||||||||||
Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses | The proceeds from sales of securities available for sale and gross realized gains and losses for the years ended December 31, 2014, 2013 and 2012 are shown below. The specific identification method is used to calculate realized gains and losses on sales. | ||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Proceeds from sales | $ | 1,376 | $ | 8,340 | $ | 6,845 | |||||||||||||||||||||||||||||||
Gross realized gains | 23 | 190 | 113 | ||||||||||||||||||||||||||||||||||
Gross realized losses | — | 3 | 2 | ||||||||||||||||||||||||||||||||||
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values | t December 31, 2014 and 2013, the amortized cost, gross unrealized gains and losses recognized in Other Comprehensive Income (OCI), carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Recognized in | Not Recognized in | ||||||||||||||||||||||||||||||||||||
OCI | OCI | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Carrying | Gross | Gross | Fair | ||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Amount | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 486 | $ | — | $ | — | $ | 486 | $ | 3 | $ | — | $ | 489 | |||||||||||||||||||||||
U.S. government-sponsored agencies | 125 | — | — | 125 | — | — | 125 | ||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | 6,002 | 6 | 66 | 5,942 | 76 | 5 | 6,013 | ||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,820 | — | 82 | 1,738 | 53 | 6 | 1,785 | ||||||||||||||||||||||||||||||
Total securities held to maturity | $ | 8,433 | $ | 6 | $ | 148 | $ | 8,291 | $ | 132 | $ | 11 | $ | 8,412 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Recognized in | Not Recognized in | ||||||||||||||||||||||||||||||||||||
OCI | OCI | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Carrying | Gross | Gross | Fair | ||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Amount | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | $ | 5,065 | $ | 7 | $ | 77 | $ | 4,995 | $ | 8 | $ | 69 | $ | 4,934 | |||||||||||||||||||||||
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | 1,606 | — | 92 | 1,514 | 3 | 12 | 1,505 | ||||||||||||||||||||||||||||||
Total securities held to maturity | $ | 6,671 | $ | 7 | $ | 169 | $ | 6,509 | $ | 11 | $ | 81 | $ | 6,439 | |||||||||||||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Summary of Loans | The following table provides the outstanding balances of loans at December 31, 2014 and 2013. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Commercial and industrial | $ | 27,623 | $ | 23,528 | |||||||||||||||||||||
Commercial mortgage | 14,016 | 13,092 | |||||||||||||||||||||||
Construction | 1,746 | 905 | |||||||||||||||||||||||
Lease financing | 800 | 854 | |||||||||||||||||||||||
Total commercial portfolio | 44,185 | 38,379 | |||||||||||||||||||||||
Residential mortgage | 28,977 | 25,547 | |||||||||||||||||||||||
Home equity and other consumer loans | 3,117 | 3,280 | |||||||||||||||||||||||
Total consumer portfolio | 32,094 | 28,827 | |||||||||||||||||||||||
Total loans held for investment, before purchased credit-impaired loans | 76,279 | 67,206 | |||||||||||||||||||||||
Purchased credit-impaired loans(1) | 525 | 1,106 | |||||||||||||||||||||||
Total loans held for investment(2) | 76,804 | 68,312 | |||||||||||||||||||||||
Allowance for loan losses | (537 | ) | (568 | ) | |||||||||||||||||||||
Loans held for investment, net | $ | 76,267 | $ | 67,744 | |||||||||||||||||||||
-1 | Includes $126 million and $251 million as of December 31, 2014 and December 31, 2013, respectively, of loans for which the Company will be reimbursed a portion of any future losses under the terms of the FDIC loss share agreements. Of these FDIC covered loans, $9 million and $15 million as of December 31, 2014 and December 31, 2013, respectively, were not accounted for under accounting guidance for loans acquired with deteriorated credit quality. | ||||||||||||||||||||||||
-2 | Includes $151 million and $88 million at December 31, 2014 and December 31, 2013, respectively, for net unamortized discounts and premiums and deferred fees and costs. | ||||||||||||||||||||||||
Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment | The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment: | ||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
(Reversal of) provision for loan losses | 52 | (13 | ) | — | (57 | ) | (18 | ) | |||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | 2 | — | 2 | ||||||||||||||||||||
Other | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||
Loans charged-off | (38 | ) | (11 | ) | (1 | ) | — | (50 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 33 | 4 | 1 | — | 38 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 465 | $ | 49 | $ | 3 | $ | 20 | $ | 537 | |||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 418 | $ | 124 | $ | 1 | $ | 110 | $ | 653 | |||||||||||||||
(Reversal of) provision for loan losses | 18 | (29 | ) | — | (33 | ) | (44 | ) | |||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||
Decrease in allowance covered by FDIC indemnification | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||||
Loans charged-off | (44 | ) | (30 | ) | (3 | ) | — | (77 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 29 | 4 | 12 | — | 45 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 474 | $ | 138 | $ | 17 | $ | 135 | $ | 764 | |||||||||||||||
(Reversal of) provision for loan losses | (25 | ) | 78 | — | (25 | ) | 28 | ||||||||||||||||||
(Reversal of) provision for purchased credit-impaired loan losses not subject to FDIC indemnification | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
Decrease in allowance covered by FDIC indemnification | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||||
Loans charged-off | (88 | ) | (95 | ) | (13 | ) | — | (196 | ) | ||||||||||||||||
Recoveries of loans previously charged-off | 57 | 3 | 5 | — | 65 | ||||||||||||||||||||
Allowance for loan losses, end of period | $ | 418 | $ | 124 | $ | 1 | $ | 110 | $ | 653 | |||||||||||||||
Allowance for Loan Losses and Related Loan Balances by Portfolio Segment | The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 18 | $ | 16 | $ | — | $ | — | $ | 34 | |||||||||||||||
Collectively evaluated for impairment | 447 | 33 | — | 20 | 500 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 3 | — | 3 | ||||||||||||||||||||
Total allowance for loan losses | $ | 465 | $ | 49 | $ | 3 | $ | 20 | $ | 537 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 164 | $ | 338 | $ | 1 | $ | — | $ | 503 | |||||||||||||||
Collectively evaluated for impairment | 44,021 | 31,756 | — | — | 75,777 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 524 | — | 524 | ||||||||||||||||||||
Total loans held for investment | $ | 44,185 | $ | 32,094 | $ | 525 | $ | — | $ | 76,804 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Commercial | Consumer | Purchased | Unallocated | Total | ||||||||||||||||||||
Credit- | |||||||||||||||||||||||||
Impaired | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19 | $ | 20 | $ | — | $ | — | $ | 39 | |||||||||||||||
Collectively evaluated for impairment | 402 | 49 | — | 77 | 528 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 1 | — | 1 | ||||||||||||||||||||
Total allowance for loan losses | $ | 421 | $ | 69 | $ | 1 | $ | 77 | $ | 568 | |||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 266 | $ | 339 | $ | 3 | $ | — | $ | 608 | |||||||||||||||
Collectively evaluated for impairment | 38,113 | 28,488 | — | — | 66,601 | ||||||||||||||||||||
Purchased credit-impaired loans | — | — | 1,103 | — | 1,103 | ||||||||||||||||||||
Total loans held for investment | $ | 38,379 | $ | 28,827 | $ | 1,106 | $ | — | $ | 68,312 | |||||||||||||||
Summary of Nonaccrual Loans | The following table presents nonaccrual loans as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 55 | $ | 44 | |||||||||||||||||||||
Commercial mortgage | 40 | 51 | |||||||||||||||||||||||
Total commercial portfolio | 95 | 95 | |||||||||||||||||||||||
Residential mortgage | 231 | 286 | |||||||||||||||||||||||
Home equity and other consumer loans | 40 | 46 | |||||||||||||||||||||||
Total consumer portfolio | 271 | 332 | |||||||||||||||||||||||
Total nonaccrual loans, before purchased credit-impaired loans | 366 | 427 | |||||||||||||||||||||||
Purchased credit-impaired loans | 9 | 15 | |||||||||||||||||||||||
Total nonaccrual loans | $ | 375 | $ | 442 | |||||||||||||||||||||
Troubled debt restructured loans that continue to accrue interest | $ | 283 | $ | 367 | |||||||||||||||||||||
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above) | $ | 184 | $ | 225 | |||||||||||||||||||||
Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans | The following tables show an aging of the balance of loans held for investment, excluding purchased credit-impaired loans, by class as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Aging Analysis of Loans | |||||||||||||||||||||||||
(Dollars in millions) | Current | 30 to | 90 Days or | Total Past Due | Total | ||||||||||||||||||||
89 Days | More Past | ||||||||||||||||||||||||
Past Due | Due | ||||||||||||||||||||||||
Commercial and industrial | $ | 28,392 | $ | 19 | $ | 12 | $ | 31 | $ | 28,423 | |||||||||||||||
Commercial mortgage | 13,991 | 21 | 4 | 25 | 14,016 | ||||||||||||||||||||
Construction | 1,744 | 2 | — | 2 | 1,746 | ||||||||||||||||||||
Total commercial portfolio | 44,127 | 42 | 16 | 58 | 44,185 | ||||||||||||||||||||
Residential mortgage | 28,802 | 112 | 63 | 175 | 28,977 | ||||||||||||||||||||
Home equity and other consumer loans | 3,084 | 20 | 13 | 33 | 3,117 | ||||||||||||||||||||
Total consumer portfolio | 31,886 | 132 | 76 | 208 | 32,094 | ||||||||||||||||||||
Total loans held for investment, excluding purchased credit-impaired loans | $ | 76,013 | $ | 174 | $ | 92 | $ | 266 | $ | 76,279 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Aging Analysis of Loans | |||||||||||||||||||||||||
(Dollars in millions) | Current | 30 to | 90 Days or | Total Past Due | Total | ||||||||||||||||||||
89 Days | More Past | ||||||||||||||||||||||||
Past Due | Due | ||||||||||||||||||||||||
Commercial and industrial | $ | 24,310 | $ | 66 | $ | 6 | $ | 72 | $ | 24,382 | |||||||||||||||
Commercial mortgage | 13,004 | 68 | 20 | 88 | 13,092 | ||||||||||||||||||||
Construction | 891 | 14 | — | 14 | 905 | ||||||||||||||||||||
Total commercial portfolio | 38,205 | 148 | 26 | 174 | 38,379 | ||||||||||||||||||||
Residential mortgage | 25,342 | 114 | 91 | 205 | 25,547 | ||||||||||||||||||||
Home equity and other consumer loans | 3,238 | 23 | 19 | 42 | 3,280 | ||||||||||||||||||||
Total consumer portfolio | 28,580 | 137 | 110 | 247 | 28,827 | ||||||||||||||||||||
Total loans held for investment, excluding purchased credit-impaired loans | $ | 66,785 | $ | 285 | $ | 136 | $ | 421 | $ | 67,206 | |||||||||||||||
Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings | The following tables summarize the loans in the commercial portfolio segment and commercial loans within the purchased credit-impaired loans segment monitored for credit quality based on internal ratings, excluding $98 million and $213 million covered by FDIC loss share agreements, at December 31, 2014 and 2013, respectively. The amounts presented reflect unpaid principal balances less charge-offs. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Pass | Special Mention | Classified | Total | |||||||||||||||||||||
Commercial and industrial | $ | 27,471 | $ | 452 | $ | 360 | $ | 28,283 | |||||||||||||||||
Construction | 1,729 | 18 | — | 1,747 | |||||||||||||||||||||
Commercial mortgage | 13,522 | 128 | 183 | 13,833 | |||||||||||||||||||||
Total commercial portfolio | 42,722 | 598 | 543 | 43,863 | |||||||||||||||||||||
Purchased credit-impaired loans | 37 | 38 | 128 | 203 | |||||||||||||||||||||
Total | $ | 42,759 | $ | 636 | $ | 671 | $ | 44,066 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Pass | Special Mention | Classified | Total | |||||||||||||||||||||
Commercial and industrial | $ | 23,346 | $ | 576 | $ | 313 | $ | 24,235 | |||||||||||||||||
Construction | 879 | 14 | — | 893 | |||||||||||||||||||||
Commercial mortgage | 12,562 | 142 | 228 | 12,932 | |||||||||||||||||||||
Total commercial portfolio | 36,787 | 732 | 541 | 38,060 | |||||||||||||||||||||
Purchased credit-impaired loans | 48 | 204 | 362 | 614 | |||||||||||||||||||||
Total | $ | 36,835 | $ | 936 | $ | 903 | $ | 38,674 | |||||||||||||||||
Loans in Consumer Portfolio an Purchased credit-impaired loans | The Company monitors the credit quality of its consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment and purchased credit-impaired loans segment, which excludes $28 million and $38 million of loans covered by FDIC loss share agreements, at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Accrual | Nonaccrual | Total | ||||||||||||||||||||||
Residential mortgage | $ | 28,746 | $ | 231 | $ | 28,977 | |||||||||||||||||||
Home equity and other consumer loans | 3,077 | 40 | 3,117 | ||||||||||||||||||||||
Total consumer portfolio | 31,823 | 271 | 32,094 | ||||||||||||||||||||||
Purchased credit-impaired loans | 196 | — | 196 | ||||||||||||||||||||||
Total | $ | 32,019 | $ | 271 | $ | 32,290 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in millions) | Accrual | Nonaccrual | Total | ||||||||||||||||||||||
Residential mortgage | $ | 25,261 | $ | 286 | $ | 25,547 | |||||||||||||||||||
Home equity and other consumer loans | 3,234 | 46 | 3,280 | ||||||||||||||||||||||
Total consumer portfolio | 28,495 | 332 | 28,827 | ||||||||||||||||||||||
Purchased credit-impaired loans | 242 | — | 242 | ||||||||||||||||||||||
Total | $ | 28,737 | $ | 332 | $ | 29,069 | |||||||||||||||||||
Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios | The following tables summarize the loans in the consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment monitored for credit quality based on refreshed FICO scores and refreshed LTV ratios at December 31, 2014 and 2013. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs. During the fourth quarter 2014, the Company changed the presentation of its LTV ratios to better align with management's methodology used to analyze credit quality. Prior period amounts have been adjusted to conform to the current year presentation. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
FICO scores | |||||||||||||||||||||||||
(Dollars in millions) | 720 and Above | Below 720 | No FICO | Total | |||||||||||||||||||||
Available(1) | |||||||||||||||||||||||||
Residential mortgage | $ | 22,505 | $ | 5,717 | $ | 493 | $ | 28,715 | |||||||||||||||||
Home equity and other consumer loans | 2,209 | 754 | 83 | 3,046 | |||||||||||||||||||||
Total consumer portfolio | 24,714 | 6,471 | 576 | 31,761 | |||||||||||||||||||||
Purchased credit-impaired loans | 73 | 111 | 13 | 197 | |||||||||||||||||||||
Total | $ | 24,787 | $ | 6,582 | $ | 589 | $ | 31,958 | |||||||||||||||||
Percentage of total | 77 | % | 21 | % | 2 | % | 100 | % | |||||||||||||||||
-1 | Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
FICO scores | |||||||||||||||||||||||||
(Dollars in millions) | 720 and Above | Below 720 | No FICO | Total | |||||||||||||||||||||
Available(1) | |||||||||||||||||||||||||
Residential mortgage | $ | 19,614 | $ | 5,301 | $ | 459 | $ | 25,374 | |||||||||||||||||
Home equity and other consumer loans | 2,283 | 839 | 81 | 3,203 | |||||||||||||||||||||
Total consumer portfolio | 21,897 | 6,140 | 540 | 28,577 | |||||||||||||||||||||
Purchased credit-impaired loans | 94 | 135 | 15 | 244 | |||||||||||||||||||||
Total | $ | 21,991 | $ | 6,275 | $ | 555 | $ | 28,821 | |||||||||||||||||
Percentage of total | 76 | % | 22 | % | 2 | % | 100 | % | |||||||||||||||||
-1 | Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
LTV ratios | |||||||||||||||||||||||||
(Dollars in millions) | Less than or Equal to 80 | Greater than 80 and Less than 100 Percent | Greater than or Equal to 100 | No LTV | Total | ||||||||||||||||||||
Percent | Percent | Available(1) | |||||||||||||||||||||||
Residential mortgage | $ | 27,162 | $ | 1,430 | $ | 92 | $ | 31 | $ | 28,715 | |||||||||||||||
Home equity loans | 2,364 | 270 | 118 | 50 | 2,802 | ||||||||||||||||||||
Total consumer portfolio | 29,526 | 1,700 | 210 | 81 | 31,517 | ||||||||||||||||||||
Purchased credit-impaired loans | 131 | 45 | 18 | 1 | 195 | ||||||||||||||||||||
Total | $ | 29,657 | $ | 1,745 | $ | 228 | $ | 82 | $ | 31,712 | |||||||||||||||
Percentage of total | 94 | % | 5 | % | 1 | % | — | % | 100 | % | |||||||||||||||
-1 | Represents loans for which management was not able to obtain refreshed property values. | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
LTV ratios | |||||||||||||||||||||||||
(Dollars in millions) | Less than or Equal to 80 | Greater than 80 and Less than 100 Percent | Greater than or Equal to 100 | No LTV | Total | ||||||||||||||||||||
Percent | Percent | Available(1) | |||||||||||||||||||||||
Residential mortgage | $ | 23,613 | $ | 1,477 | $ | 231 | $ | 53 | $ | 25,374 | |||||||||||||||
Home equity loans | 2,492 | 356 | 203 | 52 | 3,103 | ||||||||||||||||||||
Total consumer portfolio | 26,105 | 1,833 | 434 | 105 | 28,477 | ||||||||||||||||||||
Purchased credit-impaired loans | 152 | 57 | 31 | — | 240 | ||||||||||||||||||||
Total | $ | 26,257 | $ | 1,890 | $ | 465 | $ | 105 | $ | 28,717 | |||||||||||||||
Percentage of total | 91 | % | 7 | % | 2 | % | — | % | 100 | % | |||||||||||||||
-1 | Represents loans for which management was not able to obtain refreshed property values. | ||||||||||||||||||||||||
Summary of Troubled Debt Restructurings | The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2014 and 2013. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $33 million and $43 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 100 | $ | 212 | |||||||||||||||||||||
Commercial mortgage | 28 | 38 | |||||||||||||||||||||||
Total commercial portfolio | 128 | 250 | |||||||||||||||||||||||
Residential mortgage | 308 | 315 | |||||||||||||||||||||||
Home equity and other consumer loans | 30 | 24 | |||||||||||||||||||||||
Total consumer portfolio | 338 | 339 | |||||||||||||||||||||||
Total restructured loans, excluding purchased credit-impaired loans(1) | $ | 466 | $ | 589 | |||||||||||||||||||||
-1 | Amounts exclude $1 million and $3 million of TDRs covered by FDIC loss share agreements at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings | The following table provides the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Dollars in millions) | Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment(1) | Investment(2) | Investment(1) | Investment(2) | ||||||||||||||||||||||
Commercial and industrial | $ | 111 | $ | 111 | $ | 161 | $ | 158 | |||||||||||||||||
Commercial mortgage | 23 | 23 | 70 | 69 | |||||||||||||||||||||
Total commercial portfolio | 134 | 134 | 231 | 227 | |||||||||||||||||||||
Residential mortgage | 28 | 27 | 104 | 103 | |||||||||||||||||||||
Home equity and other consumer loans | 11 | 11 | 9 | 8 | |||||||||||||||||||||
Total consumer portfolio | 39 | 38 | 113 | 111 | |||||||||||||||||||||
Total | $ | 173 | $ | 172 | $ | 344 | $ | 338 | |||||||||||||||||
-1 | Represents the recorded investment in the loan immediately prior to the restructuring event. | ||||||||||||||||||||||||
-2 | Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. | ||||||||||||||||||||||||
Recorded Investment Amounts of Troubled Debt Restructurings | The following table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2014 and 2013, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due. | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Commercial and industrial | $ | 10 | $ | 10 | |||||||||||||||||||||
Commercial mortgage | 8 | 2 | |||||||||||||||||||||||
Total commercial portfolio | 18 | 12 | |||||||||||||||||||||||
Residential mortgage | 8 | 16 | |||||||||||||||||||||||
Home equity and other consumer loans | 1 | 2 | |||||||||||||||||||||||
Total consumer portfolio | 9 | 18 | |||||||||||||||||||||||
Total | $ | 27 | $ | 30 | |||||||||||||||||||||
Information about Impaired Loans by Class | The following tables show information about impaired loans by class as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal | ||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in millions) | With an | Without an | Total | Allowance | With an | Without an | |||||||||||||||||||
Allowance | Allowance | for Impaired | Allowance | Allowance | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Commercial and industrial | $ | 89 | $ | 35 | $ | 124 | $ | 14 | $ | 120 | $ | 39 | |||||||||||||
Commercial mortgage | 37 | 3 | 40 | 4 | 39 | 3 | |||||||||||||||||||
Total commercial portfolio | 126 | 38 | 164 | 18 | 159 | 42 | |||||||||||||||||||
Residential mortgage | 198 | 110 | 308 | 16 | 211 | 127 | |||||||||||||||||||
Home equity and other consumer loans | 6 | 24 | 30 | — | 7 | 37 | |||||||||||||||||||
Total consumer portfolio | 204 | 134 | 338 | 16 | 218 | 164 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 330 | 172 | 502 | 34 | 377 | 206 | |||||||||||||||||||
Purchased credit-impaired loans | — | 1 | 1 | — | — | 2 | |||||||||||||||||||
Total | $ | 330 | $ | 173 | $ | 503 | $ | 34 | $ | 377 | $ | 208 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal | ||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in millions) | With an | Without an | Total | Allowance | With an | Without an | |||||||||||||||||||
Allowance | Allowance | for Impaired | Allowance | Allowance | |||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Commercial and industrial | $ | 117 | $ | 104 | $ | 221 | $ | 16 | $ | 121 | $ | 114 | |||||||||||||
Commercial mortgage | 33 | 12 | 45 | 3 | 36 | 15 | |||||||||||||||||||
Total commercial portfolio | 150 | 116 | 266 | 19 | 157 | 129 | |||||||||||||||||||
Residential mortgage | 220 | 95 | 315 | 20 | 236 | 108 | |||||||||||||||||||
Home equity and other consumer loans | 4 | 20 | 24 | — | 4 | 34 | |||||||||||||||||||
Total consumer portfolio | 224 | 115 | 339 | 20 | 240 | 142 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 374 | 231 | 605 | 39 | 397 | 271 | |||||||||||||||||||
Purchased credit-impaired loans | 2 | 1 | 3 | — | 2 | 6 | |||||||||||||||||||
Total | $ | 376 | $ | 232 | $ | 608 | $ | 39 | $ | 399 | $ | 277 | |||||||||||||
Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans | The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2014, 2013 and 2012 for the commercial, consumer and purchased credit-impaired loans portfolio segments. | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in millions) | Average | Recognized | Average | Recognized | Average | Recognized | |||||||||||||||||||
Recorded | Interest | Recorded | Interest | Recorded | Interest | ||||||||||||||||||||
Investment | Income | Investment | Income | Investment | Income | ||||||||||||||||||||
Commercial and industrial | $ | 188 | $ | 5 | $ | 243 | $ | 14 | $ | 201 | $ | 12 | |||||||||||||
Commercial mortgage | 36 | 2 | 53 | 9 | 107 | 1 | |||||||||||||||||||
Construction | — | — | 8 | 3 | 44 | 2 | |||||||||||||||||||
Total commercial portfolio | 224 | 7 | 304 | 26 | 352 | 15 | |||||||||||||||||||
Residential mortgage | 310 | 10 | 293 | 10 | 221 | 8 | |||||||||||||||||||
Home equity and other consumer loans | 27 | 2 | 22 | 1 | 7 | 1 | |||||||||||||||||||
Total consumer portfolio | 337 | 12 | 315 | 11 | 228 | 9 | |||||||||||||||||||
Total, excluding purchased credit-impaired loans | 561 | 19 | 619 | 37 | 580 | 24 | |||||||||||||||||||
Purchased credit-impaired loans | 2 | — | 4 | — | 8 | 1 | |||||||||||||||||||
Total | $ | 563 | $ | 19 | $ | 623 | $ | 37 | $ | 588 | $ | 25 | |||||||||||||
Outstanding Balances and Carrying Amounts of Purchased Credit-Impaired Loans | The following table presents the outstanding balances and carrying amounts of the Company's purchased credit-impaired loans at December 31, 2014 and 2013. | ||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Total outstanding balance | $ | 889 | $ | 1,733 | |||||||||||||||||||||
Carrying amount | 516 | 1,091 | |||||||||||||||||||||||
Changes in Accretable Balance for Purchased Credit-Impaired Loans | The accretable yield for purchased credit-impaired loans for the years ended December 31, 2014, 2013, and 2012 was as follows: | ||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Accretable yield, beginning of period | $ | 378 | $ | 590 | $ | 424 | |||||||||||||||||||
Additions | — | 31 | 171 | ||||||||||||||||||||||
Accretion | (268 | ) | (336 | ) | (297 | ) | |||||||||||||||||||
Reclassifications from nonaccretable difference during the period | 178 | 93 | 292 | ||||||||||||||||||||||
Accretable yield, end of period | $ | 288 | $ | 378 | $ | 590 | |||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Premises and Equipment and Other Assets | |||||||||||||||||||||||||
Premises and Equipment at Carried Cost, Less Accumulated Depreciation and Amortization | Premises and equipment are carried at cost, less accumulated depreciation and amortization. As of December 31, 2014 and 2013, the amounts were as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Dollars in millions) | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | |||||||||||||||||||
Depreciation and | Value | Depreciation and | Value | ||||||||||||||||||||||
Amortization | Amortization | ||||||||||||||||||||||||
Land | $ | 148 | $ | — | $ | 148 | $ | 154 | $ | — | $ | 154 | |||||||||||||
Premises | 601 | (334 | ) | 267 | 621 | (328 | ) | 293 | |||||||||||||||||
Leasehold improvements | 301 | (230 | ) | 71 | 298 | (218 | ) | 80 | |||||||||||||||||
Furniture, fixtures and equipment | 682 | (547 | ) | 135 | 670 | (509 | ) | 161 | |||||||||||||||||
Total | $ | 1,732 | $ | (1,111 | ) | $ | 621 | $ | 1,743 | $ | (1,055 | ) | $ | 688 | |||||||||||
Rental, Depreciation and Amortization Expenses | Rental, depreciation and amortization expenses were as follows: | ||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Rental expense of premises | $ | 113 | $ | 111 | $ | 85 | |||||||||||||||||||
Less: rental income | 10 | 9 | 8 | ||||||||||||||||||||||
Net rental expense | $ | 103 | $ | 102 | $ | 77 | |||||||||||||||||||
Depreciation and amortization of premises and equipment | $ | 103 | $ | 110 | $ | 102 | |||||||||||||||||||
Future Minimum Lease Payments | Future minimum lease payments at December 31, 2014 were as follows: | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | ||||||||||||||||||||||||
Years ending December 31,: | |||||||||||||||||||||||||
2015 | $ | 130 | |||||||||||||||||||||||
2016 | 131 | ||||||||||||||||||||||||
2017 | 118 | ||||||||||||||||||||||||
2018 | 103 | ||||||||||||||||||||||||
2019 | 85 | ||||||||||||||||||||||||
Thereafter | 501 | ||||||||||||||||||||||||
Total minimum lease payments | $ | 1,068 | |||||||||||||||||||||||
Minimum rental income due in the future under subleases | $ | 105 | |||||||||||||||||||||||
Schedule of other assets | The following table shows the balances of other assets as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Other investments | $ | 2,711 | $ | 2,211 | |||||||||||||||||||||
Prepaid expenses | 145 | 509 | |||||||||||||||||||||||
Intangible assets | 240 | 290 | |||||||||||||||||||||||
OREO | 36 | 57 | |||||||||||||||||||||||
Other | 1,553 | 1,787 | |||||||||||||||||||||||
Total other assets | $ | 4,685 | $ | 4,854 | |||||||||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | For impairment testing, goodwill was assigned to the following operating segments at December 31, 2014 and 2013: | ||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Retail Banking & Wealth Markets | $ | 1,524 | $ | 1,527 | |||||||||||||||||||||
Commercial Banking | 1,034 | 1,034 | |||||||||||||||||||||||
U.S. Corporate Banking | 149 | 149 | |||||||||||||||||||||||
Transaction Banking | 251 | 251 | |||||||||||||||||||||||
Investment Banking & Markets | 253 | 253 | |||||||||||||||||||||||
Asian Corporate Banking | 14 | 14 | |||||||||||||||||||||||
Goodwill, end of year | $ | 3,225 | $ | 3,228 | |||||||||||||||||||||
The changes in the carrying amount of goodwill during 2014 and 2013 are shown in the table below. | |||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||||||||||||||
Goodwill, beginning of year | $ | 3,228 | $ | 2,942 | |||||||||||||||||||||
Net change from business combinations | (3 | ) | 286 | ||||||||||||||||||||||
Goodwill, end of year | $ | 3,225 | $ | 3,228 | |||||||||||||||||||||
Identifiable Intangible Assets and Accumulated Amortization | The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
(Dollars in millions) | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Core deposit intangibles | $ | 565 | $ | (468 | ) | $ | 97 | $ | 667 | $ | (530 | ) | $ | 137 | |||||||||||
Trade names | 114 | (21 | ) | 93 | 114 | (16 | ) | 98 | |||||||||||||||||
Customer relationships | 60 | (25 | ) | 35 | 63 | (22 | ) | 41 | |||||||||||||||||
Other | 29 | (14 | ) | 15 | 25 | (11 | ) | 14 | |||||||||||||||||
Total intangible assets with a definite useful life | $ | 768 | $ | (528 | ) | $ | 240 | $ | 869 | $ | (579 | ) | $ | 290 | |||||||||||
Estimated Future Amortization Expense | Estimated future amortization expense at December 31, 2014 is as follows: | ||||||||||||||||||||||||
(Dollars in millions) | Core Deposit | Trade Name | Customer | Other | Total Identifiable | ||||||||||||||||||||
Intangibles (CDI) | Relationships | Intangible Assets | |||||||||||||||||||||||
Years ending December 31, : | |||||||||||||||||||||||||
2015 | $ | 30 | $ | 3 | $ | 5 | $ | 4 | $ | 42 | |||||||||||||||
2016 | 18 | 3 | 5 | 3 | 29 | ||||||||||||||||||||
2017 | 14 | 3 | 4 | 2 | 23 | ||||||||||||||||||||
2018 | 7 | 3 | 4 | 1 | 15 | ||||||||||||||||||||
2019 | 6 | 3 | 3 | 1 | 13 | ||||||||||||||||||||
Thereafter | 22 | 78 | 14 | 4 | 118 | ||||||||||||||||||||
Total estimated amortization expense | $ | 97 | $ | 93 | $ | 35 | $ | 15 | $ | 240 | |||||||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||||||
Schedule of assets and liabilities of VIEs | The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Consolidated Assets | Consolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Interest Bearing | Loans Held for | Other Assets | Total Assets | Other Liabilities | Total | |||||||||||||||||||||||
Deposits in | Investment, net | Liabilities | |||||||||||||||||||||||||||
Banks | |||||||||||||||||||||||||||||
LIHC investments | $ | 9 | $ | — | $ | 230 | $ | 239 | $ | — | $ | — | |||||||||||||||||
Leasing investments | 10 | 653 | 147 | 810 | 80 | 80 | |||||||||||||||||||||||
Total consolidated VIEs | $ | 19 | $ | 653 | $ | 377 | $ | 1,049 | $ | 80 | $ | 80 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Consolidated Assets | Consolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Interest Bearing | Loans Held for | Other Assets | Total Assets | Long-Term Debt | Total | |||||||||||||||||||||||
Deposits in | Investment, net | Liabilities | |||||||||||||||||||||||||||
Banks | |||||||||||||||||||||||||||||
LIHC investments | $ | 9 | $ | — | $ | 262 | $ | 271 | $ | 4 | $ | 4 | |||||||||||||||||
Leasing investments | 1 | 750 | 8 | 759 | — | — | |||||||||||||||||||||||
Total consolidated VIEs | $ | 10 | $ | 750 | $ | 270 | $ | 1,030 | $ | 4 | $ | 4 | |||||||||||||||||
Unconsolidated VIEs | |||||||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||||||
Schedule of assets and liabilities of VIEs | The following tables present the Company’s carrying amounts related to the unconsolidated VIEs and location on the consolidated balance sheets at December 31, 2014 and 2013. The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. | ||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Unconsolidated Assets | Unconsolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Securities | Loans Held for | Other Assets | Total Assets | Other | Total | Maximum | ||||||||||||||||||||||
Available for | Investment | Liabilities | Liabilities | Exposure to | |||||||||||||||||||||||||
Sale | Loss | ||||||||||||||||||||||||||||
LIHC investments | $ | 25 | $ | 163 | $ | 1,117 | $ | 1,305 | $ | 433 | $ | 433 | $ | 1,305 | |||||||||||||||
Leasing investments | — | 21 | 886 | 907 | 55 | 55 | 923 | ||||||||||||||||||||||
Other investments | — | 29 | 20 | 49 | — | — | 51 | ||||||||||||||||||||||
Total unconsolidated VIEs | $ | 25 | $ | 213 | $ | 2,023 | $ | 2,261 | $ | 488 | $ | 488 | $ | 2,279 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Unconsolidated Assets | Unconsolidated Liabilities | ||||||||||||||||||||||||||||
(Dollars in millions) | Securities | Loans Held for | Other Assets | Total Assets | Other | Total | Maximum | ||||||||||||||||||||||
Available for | Investment | Liabilities | Liabilities | Exposure to | |||||||||||||||||||||||||
Sale | Loss | ||||||||||||||||||||||||||||
LIHC investments | $ | 122 | $ | 158 | $ | 1,000 | $ | 1,280 | $ | 445 | $ | 445 | $ | 1,280 | |||||||||||||||
Leasing investments | — | — | 700 | 700 | — | — | 700 | ||||||||||||||||||||||
Other investments | — | 15 | 12 | 27 | — | — | 27 | ||||||||||||||||||||||
Total unconsolidated VIEs | $ | 122 | $ | 173 | $ | 1,712 | $ | 2,007 | $ | 445 | $ | 445 | $ | 2,007 | |||||||||||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Deposits [Abstract] | |||||
Maturity Information of Time Deposits with Remaining Term of Greater Than One Year | Maturity information for all interest bearing time deposits with a remaining term of greater than one year is summarized below. | ||||
(Dollars in millions) | December 31, | ||||
2014 | |||||
Due after one year through two years | $ | 1,570 | |||
Due after two years through three years | 1,134 | ||||
Due after three years through four years | 812 | ||||
Due after four years through five years | 167 | ||||
Due after five years | 20 | ||||
Total | $ | 3,703 | |||
Commercial_Paper_and_Other_Sho1
Commercial Paper and Other Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short-term Debt [Abstract] | |||||||||
Summary of Commercial Paper and Other Short-Term Borrowings | The following is a summary of the Company's commercial paper and other short-term borrowings: | ||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||
Federal funds purchased and securities sold under repurchase agreements, with weighted average interest rates of 0.12% and 0.07% at December 31, 2014 and December 31, 2013 | $ | 111 | $ | 39 | |||||
Commercial paper, with weighted average interest rates of 0.16% and 0.19% at December 31, 2014 and December 31, 2013, respectively | 2,593 | 2,524 | |||||||
Total commercial paper and other short-term borrowings | $ | 2,704 | $ | 2,563 | |||||
Federal funds purchased and securities sold under repurchase agreements: | |||||||||
Maximum outstanding at any month end | $ | 329 | $ | 359 | |||||
Average balance during the year | 170 | 263 | |||||||
Weighted average interest rate during the year | 0.14 | % | 0.12 | % | |||||
Commercial paper: | |||||||||
Maximum outstanding at any month end | $ | 3,322 | $ | 3,655 | |||||
Average balance during the year | 2,542 | 2,393 | |||||||
Weighted average interest rate during the year | 0.16 | % | 0.18 | % | |||||
Other borrowed funds: | |||||||||
Term federal funds purchased: | |||||||||
Maximum outstanding at any month end | $ | 252 | $ | 269 | |||||
Average balance during the year | 43 | 50 | |||||||
Weighted average interest rate during the year | 0.14 | % | 0.15 | % | |||||
All other borrowed funds: | |||||||||
Maximum outstanding at any month end | $ | — | $ | — | |||||
Average balance during the year | 54 | 45 | |||||||
Weighted average interest rate during the year | 2.06 | % | 1.71 | % |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Long-Term Debt | Long-Term Debt | ||||||||
Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt: | |||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||
Debt issued by MUAH | |||||||||
Senior debt: | |||||||||
Fixed rate 3.50% notes due June 2022 | $ | 398 | $ | 397 | |||||
Subordinated debt to BTMU: | |||||||||
Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 1.63% at December 31, 2014 and 1.63% at December 31, 2013 | 300 | 300 | |||||||
Junior subordinated debt payable to trusts(1): | |||||||||
Floating rate notes with maturities ranging from March 2033 to September 2036. These notes bear a combined weighted-average rate of 2.35% at December 31, 2014 and 2.60% at December 31, 2013 | 52 | 66 | |||||||
Total debt issued by MUAH | 750 | 763 | |||||||
Debt issued by MUB and other subsidiaries | |||||||||
Senior debt: | |||||||||
Fixed FHLB advances with maturities ranging from February 2015 to February 2016. These notes bear a combined weighted-average rate of 2.56% at December 31, 2014 and 2.55% at December 31, 2013 | 800 | 800 | |||||||
Floating rate notes due June 2014. These notes, which bear interest at 0.95% above 3-month LIBOR, had a rate of 1.19% at December 31, 2013 | — | 300 | |||||||
Fixed rate 3.00% notes due June 2016 | 700 | 699 | |||||||
Fixed rate 1.50% notes due September 2016 | 499 | 499 | |||||||
Floating rate notes due September 2016. These notes, which bear interest at 0.75% above 3-month LIBOR, had a rate of 1.00% at December 31, 2014 and 1.00% at December 31, 2013 | 500 | 500 | |||||||
Fixed rate 2.125% notes due June 2017 | 499 | 499 | |||||||
Fixed rate 2.625% notes due September 2018 | 1,000 | 1,000 | |||||||
Fixed rate 2.250% notes due May 2019 | 499 | — | |||||||
Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 0.63% at December 31, 2014 | 250 | — | |||||||
Note payable: | |||||||||
Fixed rate 6.03% notes due July 2014 (related to consolidated VIE) | — | 4 | |||||||
Subordinated debt: | |||||||||
Fixed rate 5.95% notes due May 2016 | 711 | 718 | |||||||
Subordinated debt due to BTMU: | |||||||||
Floating rate subordinated debt due June 2023. This note, which bears interest at 1.2% above 3-month LIBOR, had a rate of 1.45% at December 31, 2014 and 1.45% at December 31, 2013 | 750 | 750 | |||||||
Capital lease obligations with a combined weighted-average interest rate of 4.92% at December 31, 2014 and 4.88% at December 31, 2013 (1) | 14 | 15 | |||||||
Total debt issued by MUB and other subsidiaries | 6,222 | 5,784 | |||||||
Total long-term debt | $ | 6,972 | $ | 6,547 | |||||
-1 | Long-term debt assumed through acquisitions |
Fair_Value_Measurement_and_Fai1
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis | The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, by major category and by valuation hierarchy level. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||
Adjustment (1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 69 | $ | — | $ | — | $ | 69 | |||||||||||
U.S. government-sponsored agencies | — | 125 | — | — | 125 | ||||||||||||||||
State and municipal securities | — | 10 | — | — | 10 | ||||||||||||||||
Interest rate derivative contracts | — | 928 | 5 | (172 | ) | 761 | |||||||||||||||
Commodity derivative contracts | — | 417 | 5 | (392 | ) | 30 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 104 | 1 | (63 | ) | 43 | |||||||||||||||
Equity derivative contracts | — | — | 300 | (224 | ) | 76 | |||||||||||||||
Total trading account assets | 1 | 1,653 | 311 | (851 | ) | 1,114 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
U.S. government and government-sponsored agencies | — | 7,560 | — | — | 7,560 | ||||||||||||||||
Privately issued | — | 168 | — | — | 168 | ||||||||||||||||
Privately issued - commercial mortgage-backed securities | — | 1,691 | — | — | 1,691 | ||||||||||||||||
Collateralized loan obligations | — | 2,494 | — | — | 2,494 | ||||||||||||||||
Other | — | 9 | — | — | 9 | ||||||||||||||||
Other debt securities: | |||||||||||||||||||||
Direct bank purchase bonds | — | — | 1,741 | — | 1,741 | ||||||||||||||||
Other | — | 3 | 49 | — | 52 | ||||||||||||||||
Equity securities | 9 | — | — | — | 9 | ||||||||||||||||
Total securities available for sale | 9 | 11,925 | 1,790 | — | 13,724 | ||||||||||||||||
Other assets: | |||||||||||||||||||||
Interest rate hedging contracts | — | 36 | — | (36 | ) | — | |||||||||||||||
Other derivative contracts | — | — | 2 | — | 2 | ||||||||||||||||
Total other assets | — | 36 | 2 | (36 | ) | 2 | |||||||||||||||
Total assets | $ | 10 | $ | 13,614 | $ | 2,103 | $ | (887 | ) | $ | 14,840 | ||||||||||
Percentage of Total | — | % | 92 | % | 14 | % | (6 | )% | 100 | % | |||||||||||
Percentage of Total Company Assets | — | % | 12 | % | 2 | % | (1 | )% | 13 | % | |||||||||||
Liabilities | |||||||||||||||||||||
Trading account liabilities: | |||||||||||||||||||||
Interest rate derivative contracts | $ | 1 | $ | 829 | $ | — | $ | (667 | ) | $ | 163 | ||||||||||
Commodity derivative contracts | — | 403 | 5 | (93 | ) | 315 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 78 | 1 | (24 | ) | 56 | |||||||||||||||
Equity derivative contracts | — | — | 299 | — | 299 | ||||||||||||||||
Securities sold, not yet purchased | — | 61 | — | — | 61 | ||||||||||||||||
Total trading account liabilities | 2 | 1,371 | 305 | (784 | ) | 894 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | — | — | 105 | — | 105 | ||||||||||||||||
Interest rate hedging contracts | — | 4 | — | (3 | ) | 1 | |||||||||||||||
Other derivative contracts | — | 1 | 2 | — | 3 | ||||||||||||||||
Total other liabilities | — | 5 | 107 | (3 | ) | 109 | |||||||||||||||
Total liabilities | $ | 2 | $ | 1,376 | $ | 412 | $ | (787 | ) | $ | 1,003 | ||||||||||
Percentage of Total | — | % | 137 | % | 41 | % | (78 | )% | 100 | % | |||||||||||
Percentage of Total Company Liabilities | — | % | 1 | % | — | % | (1 | )% | — | % | |||||||||||
-1 | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||
Adjustment (1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Trading account assets: | |||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||
U.S. government-sponsored agencies | — | 116 | — | — | 116 | ||||||||||||||||
State and municipal securities | — | 5 | — | — | 5 | ||||||||||||||||
Other loans | — | 140 | — | — | 140 | ||||||||||||||||
Interest rate derivative contracts | 1 | 705 | 7 | (212 | ) | 501 | |||||||||||||||
Commodity derivative contracts | — | 67 | 9 | (66 | ) | 10 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 30 | 2 | (18 | ) | 15 | |||||||||||||||
Equity derivative contracts | — | — | 253 | (197 | ) | 56 | |||||||||||||||
Total trading account assets | 2 | 1,071 | 271 | (493 | ) | 851 | |||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. government-sponsored agencies | — | 73 | — | — | 73 | ||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
U.S government and government-sponsored agencies | — | 8,900 | — | — | 8,900 | ||||||||||||||||
Privately issued | — | 222 | — | — | 222 | ||||||||||||||||
Privately issued - commercial mortgage-backed securities | — | 1,870 | — | — | 1,870 | ||||||||||||||||
Collateralized loan obligations | — | 2,673 | — | — | 2,673 | ||||||||||||||||
Other | — | 35 | — | — | 35 | ||||||||||||||||
Other debt securities: | |||||||||||||||||||||
Direct bank purchase bonds | — | — | 1,960 | — | 1,960 | ||||||||||||||||
Other | — | 18 | 58 | — | 76 | ||||||||||||||||
Equity securities | 8 | — | — | — | 8 | ||||||||||||||||
Total securities available for sale | 8 | 13,791 | 2,018 | — | 15,817 | ||||||||||||||||
Other assets: | |||||||||||||||||||||
Interest rate hedging contracts | — | 8 | — | — | 8 | ||||||||||||||||
Other derivative contracts | — | 1 | 1 | — | 2 | ||||||||||||||||
Total other assets | — | 9 | 1 | — | 10 | ||||||||||||||||
Total assets | $ | 10 | $ | 14,871 | $ | 2,290 | $ | (493 | ) | $ | 16,678 | ||||||||||
Percentage of Total | — | % | 89 | % | 14 | % | (3 | )% | 100 | % | |||||||||||
Percentage of Total Company Assets | — | % | 14 | % | 2 | % | — | % | 16 | % | |||||||||||
Liabilities | |||||||||||||||||||||
Trading account liabilities: | |||||||||||||||||||||
Interest rate derivative contracts | $ | 3 | $ | 606 | $ | — | $ | (379 | ) | $ | 230 | ||||||||||
Commodity derivative contracts | — | 53 | 8 | (33 | ) | 28 | |||||||||||||||
Foreign exchange derivative contracts | 1 | 26 | 2 | (11 | ) | 18 | |||||||||||||||
Equity derivative contracts | — | — | 254 | — | 254 | ||||||||||||||||
Securities sold, not yet purchased | — | 10 | — | — | 10 | ||||||||||||||||
Total trading account liabilities | 4 | 695 | 264 | (423 | ) | 540 | |||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | — | — | 96 | — | 96 | ||||||||||||||||
Interest rate hedging contracts | — | 13 | — | — | 13 | ||||||||||||||||
Other derivative contracts | — | 1 | 3 | — | 4 | ||||||||||||||||
Total other liabilities | — | 14 | 99 | — | 113 | ||||||||||||||||
Total liabilities | $ | 4 | $ | 709 | $ | 363 | $ | (423 | ) | $ | 653 | ||||||||||
Percentage of Total | 1 | % | 109 | % | 55 | % | (65 | )% | 100 | % | |||||||||||
Percentage of Total Company Liabilities | — | % | 1 | % | — | % | — | % | 1 | % | |||||||||||
-1 | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. | ||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation | The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. Level 3 available for sale securities at December 31, 2014 primarily consist of direct bank purchase bonds. The Company's policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period. | ||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Trading | Securities | Other | Trading | Other | ||||||||||||||||
Assets | Available for | Assets | Liabilities | Liabilities | |||||||||||||||||
Sale | |||||||||||||||||||||
Asset (liability) balance, beginning of period | $ | 271 | $ | 2,018 | $ | 1 | $ | (264 | ) | $ | (99 | ) | |||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||
Included in income before taxes | 61 | — | 1 | (61 | ) | (8 | ) | ||||||||||||||
Included in other comprehensive income | — | 29 | — | — | — | ||||||||||||||||
Purchases/additions | 4 | 197 | — | — | — | ||||||||||||||||
Sales | — | — | — | (5 | ) | — | |||||||||||||||
Settlements | (25 | ) | (454 | ) | — | 25 | — | ||||||||||||||
Asset (liability) balance, end of period | $ | 311 | $ | 1,790 | $ | 2 | $ | (305 | ) | $ | (107 | ) | |||||||||
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | $ | 61 | $ | — | $ | 1 | $ | (61 | ) | $ | (8 | ) | |||||||||
For the Year Ended | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Trading | Securities | Other | Trading | Other | ||||||||||||||||
Assets | Available for | Assets | Liabilities | Liabilities | |||||||||||||||||
Sale | |||||||||||||||||||||
Asset (liability) balance, beginning of period | $ | 136 | $ | 1,499 | $ | — | $ | (136 | ) | $ | (95 | ) | |||||||||
Total gains (losses) (realized/unrealized): | |||||||||||||||||||||
Included in income before taxes | 119 | — | — | (120 | ) | (4 | ) | ||||||||||||||
Included in other comprehensive income | — | 28 | — | — | — | ||||||||||||||||
Purchases/additions | 24 | 700 | 1 | — | — | ||||||||||||||||
Sales | — | (14 | ) | — | (16 | ) | — | ||||||||||||||
Settlements | (8 | ) | (195 | ) | — | 8 | — | ||||||||||||||
Asset (liability) balance, end of period | $ | 271 | $ | 2,018 | $ | 1 | $ | (264 | ) | $ | (99 | ) | |||||||||
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | $ | 119 | $ | — | $ | — | $ | (120 | ) | $ | (4 | ) | |||||||||
Significant Unobservable Inputs Level 3 Assets and Liabilities | The following table presents information about significant unobservable inputs related to the Company's significant Level 3 assets and liabilities at December 31, 2014. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Level 3 | Valuation Technique(s) | Significant Unobservable | Range of Inputs | Weighted | ||||||||||||||||
Fair Value | Input(s) | Average | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Direct bank purchase bonds | $ | 1,741 | Return on equity | Market-required return on capital | 8.0 - 10.0 | % | 9.9 | % | |||||||||||||
Probability of default | 0.0 - 25.0 | % | 0.5 | % | |||||||||||||||||
Loss severity | 10.0 - 60.0 | % | 31.1 | % | |||||||||||||||||
Other liabilities: | |||||||||||||||||||||
FDIC clawback liability | $ | 105 | Discounted cash flow | Probability of default | 0.1 - 100.0 | % | 58.4 | % | |||||||||||||
Loss severity | 0.0 - 100.0 | % | 39.1 | % | |||||||||||||||||
Financial Assets Measured at Fair Value on Nonrecurring Basis | Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the years ended December 31, 2014 and 2013 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment. | ||||||||||||||||||||
31-Dec-14 | Loss for the Year Ended December 31, 2014 | ||||||||||||||||||||
(Dollars in millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Value | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Impaired loans | $ | 109 | $ | — | $ | — | $ | 109 | $ | (37 | ) | ||||||||||
Other assets: | |||||||||||||||||||||
OREO | 15 | — | — | 15 | (6 | ) | |||||||||||||||
Total | $ | 124 | $ | — | $ | — | $ | 124 | $ | (43 | ) | ||||||||||
31-Dec-13 | Loss for the Year Ended December 31, 2013 | ||||||||||||||||||||
(Dollars in millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Value | |||||||||||||||||||||
Loans: | |||||||||||||||||||||
Impaired loans | $ | 59 | $ | — | $ | — | $ | 59 | $ | (47 | ) | ||||||||||
Other assets: | |||||||||||||||||||||
OREO | 21 | — | — | 21 | (11 | ) | |||||||||||||||
Private equity investments | — | — | — | — | (5 | ) | |||||||||||||||
Total | $ | 80 | $ | — | $ | — | $ | 80 | $ | (63 | ) | ||||||||||
Carrying Amount and Estimated Fair Value of Financial Instruments | The tables below present the carrying amount and estimated fair value of certain financial instruments by the level of valuation assumptions held by the Company as of December 31, 2014 and 2013. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 5,751 | $ | 5,751 | $ | 5,751 | $ | — | $ | — | |||||||||||
Securities held to maturity | 8,291 | 8,412 | — | 8,412 | — | ||||||||||||||||
Loans held for investment (1) | 75,475 | 77,324 | — | — | 77,324 | ||||||||||||||||
FDIC indemnification asset | 52 | 5 | — | — | 5 | ||||||||||||||||
Other assets | 7 | 6 | — | — | 6 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | $ | 86,004 | $ | 86,076 | $ | — | $ | 86,076 | $ | — | |||||||||||
Commercial paper and other short-term borrowings | 2,704 | 2,704 | — | 2,704 | — | ||||||||||||||||
Long-term debt | 6,972 | 7,073 | — | 7,073 | — | ||||||||||||||||
Off-Balance Sheet Instruments | |||||||||||||||||||||
Commitments to extend credit and standby and commercial letters of credit | $ | 269 | $ | 269 | $ | — | $ | — | $ | 269 | |||||||||||
-1 | Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollars in millions) | Carrying | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | Value | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 6,203 | $ | 6,203 | $ | 6,203 | $ | — | $ | — | |||||||||||
Securities held to maturity | 6,509 | 6,439 | — | 6,439 | — | ||||||||||||||||
Loans held for investment, net of allowance for loan losses(1) | 66,898 | 68,132 | — | — | 68,132 | ||||||||||||||||
FDIC indemnification asset | 141 | 95 | — | — | 95 | ||||||||||||||||
Other assets | 3 | 3 | — | — | 3 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits | $ | 80,101 | $ | 80,228 | $ | — | $ | 80,228 | $ | — | |||||||||||
Commercial paper and other short-term borrowings | 2,563 | 2,563 | — | 2,563 | — | ||||||||||||||||
Long-term debt | 6,547 | 6,709 | — | 6,709 | — | ||||||||||||||||
Off-Balance Sheet Instruments | |||||||||||||||||||||
Commitments to extend credit and standby and commercial letters of credit | $ | 273 | $ | 273 | $ | — | $ | — | $ | 273 | |||||||||||
-1 | Excludes lease financing, net of related allowance. |
Derivative_Instruments_and_Oth1
Derivative Instruments and Other Financial Instruments Used For Hedging (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Notional Amounts, Balance Sheet Location and Fair Value Amounts of Derivative Instruments | The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated and qualifying as hedging instruments as of December 31, 2014 and December 31, 2013, respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively. | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||
(Dollars in millions) | Notional | Asset | Liability | Notional | Asset | Liability | |||||||||||||||||||||||
Amount | Derivatives | Derivatives | Amount | Derivatives | Derivatives | ||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||
Interest rate contracts | $ | 9,750 | $ | 34 | $ | 4 | $ | 4,300 | $ | 8 | $ | 13 | |||||||||||||||||
Fair value hedges | |||||||||||||||||||||||||||||
Interest rate contracts | 500 | 2 | — | — | — | — | |||||||||||||||||||||||
Not designated and qualifying as hedging instruments: | |||||||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||||||
Interest rate contracts | 46,944 | 933 | 830 | 44,427 | 713 | 609 | |||||||||||||||||||||||
Commodity contracts | 4,741 | 422 | 408 | 5,714 | 76 | 61 | |||||||||||||||||||||||
Foreign exchange contracts | 5,661 | 106 | 80 | 5,645 | 33 | 29 | |||||||||||||||||||||||
Equity contracts | 3,797 | 300 | 299 | 4,027 | 253 | 254 | |||||||||||||||||||||||
Other contracts | — | — | — | 140 | — | — | |||||||||||||||||||||||
Total Trading | 61,143 | 1,761 | 1,617 | 59,953 | 1,075 | 953 | |||||||||||||||||||||||
Other risk management | 286 | 2 | 3 | 185 | 2 | 4 | |||||||||||||||||||||||
Total derivative instruments | $ | 71,679 | $ | 1,799 | $ | 1,624 | $ | 64,438 | $ | 1,085 | $ | 970 | |||||||||||||||||
Amount and Location of Gains and Losses for Derivatives Designated as Cash Flow Hedges | The following tables present the amount and location of the net gains and losses recorded in the Company's consolidated statements of income and changes in stockholder's equity for derivatives designated as cash flow hedges for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Amount of Gain (Loss) | Gain (Loss) Reclassified from | Gain (Loss) Recognized in Income | |||||||||||||||||||||||||||
Recognized in OCI on | Accumulated OCI | on Derivative Instruments (Ineffective Portion) | |||||||||||||||||||||||||||
Derivative Instruments | into Income (Effective Portion) | ||||||||||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||||||||||
For the Years Ended | For the Years Ended | For the Years Ended | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | Location | 2014 | 2013 | Location | 2014 | 2013 | |||||||||||||||||||||
Derivatives in cash flow hedging relationships | |||||||||||||||||||||||||||||
Interest income | $ | 115 | $ | 44 | |||||||||||||||||||||||||
Interest rate contracts | $ | 126 | $ | 29 | Interest expense | 2 | (1 | ) | Noninterest expense (1) | $ | 2 | $ | — | ||||||||||||||||
Total | $ | 126 | $ | 29 | $ | 117 | $ | 43 | $ | 2 | $ | — | |||||||||||||||||
-1 | Amount recognized was less than $1 million in 2013. | ||||||||||||||||||||||||||||
Schedule of Derivative Instruments Gain (Loss) on Fair Value Hedges | The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the year ended December 31, 2014: | ||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||||||||||||||
Interest rate risk on long-term debt | $ | 2 | $ | (1 | ) | $ | 1 | ||||||||||||||||||||||
Total | $ | 2 | $ | (1 | ) | $ | 1 | ||||||||||||||||||||||
Gain or (Loss) Recognized in Income on Derivative Instruments | The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the twelve months ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income on | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||||||
(Dollars in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Trading derivatives: | |||||||||||||||||||||||||||||
Interest rate contracts | $ | 36 | $ | 30 | |||||||||||||||||||||||||
Equity contracts | 3 | — | |||||||||||||||||||||||||||
Foreign exchange contracts | 19 | 18 | |||||||||||||||||||||||||||
Commodity contracts | 8 | 2 | |||||||||||||||||||||||||||
Other contracts | 1 | — | |||||||||||||||||||||||||||
Total | $ | 67 | $ | 50 | |||||||||||||||||||||||||
Summary of Offsetting Assets and Liabilities | The following tables present the offsetting of financial assets and liabilities as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in | |||||||||||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||||||||||
(Dollars in millions) | Gross Amounts | Gross Amounts | Net Amounts | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||
of Recognized | Offset in | Presented in | Instruments | Received/Pledged | |||||||||||||||||||||||||
Assets/Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Derivative assets | $ | 1,799 | $ | 887 | $ | 912 | $ | 113 | $ | — | $ | 799 | |||||||||||||||||
Securities purchased under resale agreements | 62 | — | 62 | 61 | — | 1 | |||||||||||||||||||||||
Total | $ | 1,861 | $ | 887 | $ | 974 | $ | 174 | $ | — | $ | 800 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 1,624 | $ | 787 | $ | 837 | $ | 162 | $ | — | $ | 675 | |||||||||||||||||
Securities sold under repurchase agreements | 68 | — | 68 | 68 | — | — | |||||||||||||||||||||||
Total | $ | 1,692 | $ | 787 | $ | 905 | $ | 230 | $ | — | $ | 675 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in Balance Sheet | |||||||||||||||||||||||||||||
(Dollars in millions) | Gross Amounts | Gross Amounts | Net Amounts | Financial | Cash Collateral | Net Amount | |||||||||||||||||||||||
of Recognized | Offset in | Presented in | Instruments | Received/Pledged | |||||||||||||||||||||||||
Assets/Liabilities | Balance Sheet | Balance Sheet | |||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Derivative assets | $ | 1,085 | $ | 493 | $ | 592 | $ | 79 | $ | — | $ | 513 | |||||||||||||||||
Securities purchased under resale agreements | 10 | — | 10 | 10 | — | — | |||||||||||||||||||||||
Total | $ | 1,095 | $ | 493 | $ | 602 | $ | 89 | $ | — | $ | 513 | |||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 970 | $ | 423 | $ | 547 | $ | 144 | $ | — | $ | 403 | |||||||||||||||||
Securities sold under repurchase agreements | 8 | — | 8 | 8 | — | — | |||||||||||||||||||||||
Total | $ | 978 | $ | 423 | $ | 555 | $ | 152 | $ | — | $ | 403 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The following table presents the change in each of the components of accumulated other comprehensive loss and the related tax effect of the change allocated to each component. | ||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 82 | $ | (32 | ) | $ | 50 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (15 | ) | 6 | (9 | ) | ||||||||||||||||
Net change | 67 | (26 | ) | 41 | |||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | 187 | (74 | ) | 113 | |||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (107 | ) | 42 | (65 | ) | ||||||||||||||||
Reclassification of unrealized (gains) losses on held to maturity securities transferred to securities available for sale | 301 | (118 | ) | 183 | |||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (9 | ) | 4 | (5 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | (24 | ) | 9 | (15 | ) | ||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | 90 | (35 | ) | 55 | |||||||||||||||||
Net change | 438 | (172 | ) | 266 | |||||||||||||||||
Foreign currency translation adjustment | 2 | (1 | ) | 1 | |||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Amortization of transition amount | 1 | (1 | ) | — | |||||||||||||||||
Recognized net actuarial gain (loss)(1) | 99 | (39 | ) | 60 | |||||||||||||||||
Pension and other benefits arising during the year | (121 | ) | 48 | (73 | ) | ||||||||||||||||
Net change(1) | (21 | ) | 8 | (13 | ) | ||||||||||||||||
Net change in AOCI | $ | 486 | $ | (191 | ) | $ | 295 | ||||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 29 | $ | (11 | ) | $ | 18 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (43 | ) | 17 | (26 | ) | ||||||||||||||||
Net change | (14 | ) | 6 | (8 | ) | ||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | (401 | ) | 157 | (244 | ) | ||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (178 | ) | 70 | (108 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (75 | ) | 30 | (45 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | (12 | ) | 5 | (7 | ) | ||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | (137 | ) | 54 | (83 | ) | ||||||||||||||||
Net change | (803 | ) | 316 | (487 | ) | ||||||||||||||||
Foreign currency translation adjustment | (7 | ) | 3 | (4 | ) | ||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Recognized net actuarial gain (loss)(1) | 116 | (46 | ) | 70 | |||||||||||||||||
Pension and other benefits arising during the year | 526 | (207 | ) | 319 | |||||||||||||||||
Net change(1) | 642 | (253 | ) | 389 | |||||||||||||||||
Net change in AOCI | $ | (182 | ) | $ | 72 | $ | (110 | ) | |||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
(Dollars in millions) | Before | Tax | Net of | ||||||||||||||||||
Tax | Effect | Tax | |||||||||||||||||||
Amount | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
Cash flow hedge activities: | |||||||||||||||||||||
Unrealized net gains (losses) on hedges arising during the period | $ | 126 | $ | (50 | ) | $ | 76 | ||||||||||||||
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt | (117 | ) | 46 | (71 | ) | ||||||||||||||||
Net change | 9 | (4 | ) | 5 | |||||||||||||||||
Securities: | |||||||||||||||||||||
Unrealized holding gains (losses) arising during the period on securities available for sale | 348 | (136 | ) | 212 | |||||||||||||||||
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net | (18 | ) | 7 | (11 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on securities available for sale | (48 | ) | 19 | (29 | ) | ||||||||||||||||
Less: accretion of fair value adjustment on held to maturity securities | — | — | — | ||||||||||||||||||
Less: amortization of net unrealized (gains) losses on held to maturity securities | 19 | (8 | ) | 11 | |||||||||||||||||
Net change | 301 | (118 | ) | 183 | |||||||||||||||||
Foreign currency translation adjustment | (11 | ) | 4 | (7 | ) | ||||||||||||||||
Pension and other benefits: | |||||||||||||||||||||
Amortization of prior service costs | (17 | ) | 7 | (10 | ) | ||||||||||||||||
Recognized net actuarial gain (loss)(1) | 62 | (24 | ) | 38 | |||||||||||||||||
Pension and other benefits arising during the year | (517 | ) | 203 | (314 | ) | ||||||||||||||||
Net change(1) | (472 | ) | 186 | (286 | ) | ||||||||||||||||
Net change in AOCI | $ | (173 | ) | $ | 68 | $ | (105 | ) | |||||||||||||
-1 | These amounts are included in the computation of net periodic pension cost. For further information, see Note 15 to these consolidated financial statements. | ||||||||||||||||||||
Change in Accumulated Other Comprehensive Loss Balances | The following table presents the change in accumulated other comprehensive loss balances. | ||||||||||||||||||||
(Dollars in millions) | Net | Net | Foreign | Pension and | Accumulated | ||||||||||||||||
Unrealized | Unrealized | Currency | Other | Other | |||||||||||||||||
Gains (Losses) | Gains (Losses) | Translation | Benefits | Comprehensive | |||||||||||||||||
on Cash | on Securities | Adjustment | Adjustment | Loss | |||||||||||||||||
Flow | |||||||||||||||||||||
Hedges | |||||||||||||||||||||
Balance, December 31, 2011 | $ | (17 | ) | $ | (107 | ) | $ | — | $ | (685 | ) | $ | (809 | ) | |||||||
Other comprehensive income before reclassifications | 50 | 148 | 1 | — | 199 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (9 | ) | 118 | — | (13 | ) | 96 | ||||||||||||||
Balance, December 31, 2012 | $ | 24 | $ | 159 | $ | 1 | $ | (698 | ) | $ | (514 | ) | |||||||||
Balance, December 31, 2012 | $ | 24 | $ | 159 | $ | 1 | $ | (698 | ) | $ | (514 | ) | |||||||||
Other comprehensive income before reclassifications | 18 | (379 | ) | (4 | ) | — | (365 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (26 | ) | (108 | ) | — | 389 | 255 | ||||||||||||||
Balance, December 31, 2013 | $ | 16 | $ | (328 | ) | $ | (3 | ) | $ | (309 | ) | $ | (624 | ) | |||||||
Balance, December 31, 2013 | $ | 16 | $ | (328 | ) | $ | (3 | ) | $ | (309 | ) | $ | (624 | ) | |||||||
Other comprehensive income before reclassifications | 76 | 194 | (7 | ) | — | 263 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (71 | ) | (11 | ) | — | (286 | ) | (368 | ) | ||||||||||||
Balance, December 31, 2014 | $ | 21 | $ | (145 | ) | $ | (10 | ) | $ | (595 | ) | $ | (729 | ) | |||||||
Management_Stock_Plans_Tables
Management Stock Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of Stock Bonus Plan | The following table is a summary of the UNBC Plan and the HQA Plan, which together are presented as the "Stock Bonus Plans": | ||||||||||||
Grant Date | Units | Fair Value | Vesting | Pro-rata | |||||||||
Granted | of Stock | Duration | Vesting Date | ||||||||||
April 15, 2012 | 4,816,795 | 4.78 | 3 years | April 15 | |||||||||
July 15, 2012 | 74,175 | 4.72 | 3 years | July 15 | |||||||||
April 15, 2013 | 3,656,340 | 6.66 | 3 years | April 15 | |||||||||
July 15, 2013 | 78,725 | 6.67 | 3 years | July 15 | |||||||||
April 15, 2014 | 9,135,710 | 5.4 | 3 years | April 15 | |||||||||
July 10, 2014 | 56,056 | 5.91 | 3 years | July 10 | |||||||||
15-Sep-14 | 46,552 | 5.8 | 3 years | 15-Sep | |||||||||
Rollforward of Restricted Stock Units Under Stock Bonus Plan | The following table is a rollforward of the restricted stock units under the Stock Bonus Plans for the years ended December 31, 2014 and 2013. | ||||||||||||
Restricted Stock Units | |||||||||||||
2014 | 2013 | ||||||||||||
Units outstanding, beginning of year | 7,851,017 | 8,857,884 | |||||||||||
Activity during the year: | |||||||||||||
HQA Plan units outstanding as of July 1, 2014 | 3,315,313 | — | |||||||||||
Granted | 9,238,318 | 3,735,065 | |||||||||||
Vested | (4,351,084 | ) | (4,325,661 | ) | |||||||||
Forfeited | (952,075 | ) | (416,271 | ) | |||||||||
Units outstanding, end of year | 15,101,489 | 7,851,017 | |||||||||||
Summary of Compensation Costs, Corresponding Tax Benefit, and Unrecognized Compensation Costs | The following table is a summary of the Company's compensation costs, the corresponding tax benefit, and unrecognized compensation costs: | ||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Compensation costs | $ | 34 | $ | 21 | $ | 18 | |||||||
Tax benefit | 13 | 8 | 7 | ||||||||||
Unrecognized compensation costs | 42 | 27 | 26 | ||||||||||
Employee_Pension_and_Other_Pos1
Employee Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Employee Pension and Other Postretirement Benefits tables | |||||||||||||||||||||||||||||||||||||
Fair Value of Assets in Pension Plan and Other Benefits Plan | The following table sets forth the fair value of the assets in the Company's Pension Plan and Other Benefits Plan as of December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||
Pension Plan | Other Benefits | ||||||||||||||||||||||||||||||||||||
Plan | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,716 | $ | 2,019 | $ | 245 | $ | 210 | |||||||||||||||||||||||||||||
Actual return on plan assets | 164 | 391 | 14 | 37 | |||||||||||||||||||||||||||||||||
Employer contributions | 100 | 380 | 13 | 12 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 7 | 7 | |||||||||||||||||||||||||||||||||
Benefits paid | (83 | ) | (74 | ) | (22 | ) | (21 | ) | |||||||||||||||||||||||||||||
Fair value of plan assets, end of year | $ | 2,897 | $ | 2,716 | $ | 257 | $ | 245 | |||||||||||||||||||||||||||||
Table of Benefit Obligation Activity and Funded Status for Each of Plans | The following table sets forth the benefit obligation activity and the funded status for each of the Company's plans at December 31, 2014 and 2013. In addition, the table sets forth the over (under) funded status at December 31, 2014 and 2013. This pension benefits table does not include the obligations for the ESBPs. | ||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 2,717 | $ | 2,046 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 2,263 | $ | 2,394 | $ | 270 | $ | 293 | |||||||||||||||||||||||||||||
Service cost | 75 | 87 | 10 | 14 | |||||||||||||||||||||||||||||||||
Interest cost | 105 | 99 | 11 | 11 | |||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | 7 | 7 | |||||||||||||||||||||||||||||||||
Actuarial loss/(gain) | 607 | (243 | ) | 42 | (34 | ) | |||||||||||||||||||||||||||||||
Effect of plan amendments | (150 | ) | (29 | ) | |||||||||||||||||||||||||||||||||
Medicare Part D subsidy | — | — | 1 | — | |||||||||||||||||||||||||||||||||
Benefits paid | (83 | ) | (74 | ) | (22 | ) | (21 | ) | |||||||||||||||||||||||||||||
Benefit obligation, end of year | 2,817 | 2,263 | 290 | 270 | |||||||||||||||||||||||||||||||||
Fair value of plan assets, end of year | 2,897 | 2,716 | 257 | 245 | |||||||||||||||||||||||||||||||||
Over (Under) funded status | $ | 80 | $ | 453 | $ | (33 | ) | $ | (25 | ) | |||||||||||||||||||||||||||
Table of Amounts Recognized in Accumulated Other Comprehensive Loss for Pension, Including ESBPs, and Other Benefits | The following table illustrates the changes that were reflected in AOCI during 2014, 2013 and 2012. Pension benefits do not include the ESBPs. | ||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | ||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Net Actuarial | Prior Service Credit | Transition Assets | Net Actuarial | Prior Service Credit | ||||||||||||||||||||||||||||||||
(Gain) Loss | (Gain) Loss | ||||||||||||||||||||||||||||||||||||
Amounts Recognized in Other Comprehensive Loss: | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 1,016 | $ | — | $ | 1 | $ | 90 | $ | — | |||||||||||||||||||||||||||
Arising during the year | 115 | — | — | (2 | ) | — | |||||||||||||||||||||||||||||||
Recognized in net income during the year | (89 | ) | — | (1 | ) | (8 | ) | — | |||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,042 | $ | — | $ | — | $ | 80 | $ | — | |||||||||||||||||||||||||||
Arising during the year | (468 | ) | — | — | (56 | ) | — | ||||||||||||||||||||||||||||||
Recognized in net income during the year | (107 | ) | — | — | (7 | ) | — | ||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 467 | $ | — | $ | — | $ | 17 | $ | — | |||||||||||||||||||||||||||
Arising during the year | 636 | (150 | ) | — | 46 | (28 | ) | ||||||||||||||||||||||||||||||
Recognized in net income during the year | (59 | ) | 12 | — | (1 | ) | 5 | ||||||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 1,044 | $ | (138 | ) | $ | — | $ | 62 | $ | (23 | ) | |||||||||||||||||||||||||
At December 31, 2014 and 2013, the following amounts were recognized in accumulated other comprehensive loss for pension, including ESBPs, and other benefits. | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Gross | Tax | Net of Tax | Gross | Tax | Net of Tax | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,044 | $ | 411 | $ | 633 | $ | 62 | $ | 25 | $ | 37 | |||||||||||||||||||||||||
Prior service credit | (138 | ) | (54 | ) | (84 | ) | (23 | ) | (9 | ) | (14 | ) | |||||||||||||||||||||||||
Pension and other benefits adjustment | 906 | 357 | 549 | 39 | 16 | 23 | |||||||||||||||||||||||||||||||
Executive Supplemental Benefits Plans | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | 39 | 15 | 24 | — | — | — | |||||||||||||||||||||||||||||||
Prior service credit | (2 | ) | (1 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||||||||
Executive supplemental benefits plans adjustment | 37 | 14 | 23 | — | — | — | |||||||||||||||||||||||||||||||
Pension and other benefits adjustment | $ | 943 | $ | 371 | $ | 572 | $ | 39 | $ | 16 | $ | 23 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Gross | Tax | Net of Tax | Gross | Tax | Net of Tax | |||||||||||||||||||||||||||||||
Net actuarial loss | $ | 467 | $ | 184 | $ | 283 | $ | 17 | $ | 7 | $ | 10 | |||||||||||||||||||||||||
Pension and other benefits adjustment | 467 | 184 | 283 | 17 | 7 | 10 | |||||||||||||||||||||||||||||||
Executive Supplemental Benefits Plans | |||||||||||||||||||||||||||||||||||||
Net actuarial loss | 26 | 10 | 16 | — | — | — | |||||||||||||||||||||||||||||||
Executive supplemental benefits plans adjustment | 26 | 10 | 16 | — | — | — | |||||||||||||||||||||||||||||||
Pension and other benefits adjustment | $ | 493 | $ | 194 | $ | 299 | $ | 17 | $ | 7 | $ | 10 | |||||||||||||||||||||||||
Estimated Future Benefit Payments and Subsidies | The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years and Medicare Part D Subsidies are expected to be received over the next 10 years. This table does not include the ESBPs. | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Pension | Postretirement | Medicare Part D | ||||||||||||||||||||||||||||||||||
Benefits | Benefits | Subsidies | |||||||||||||||||||||||||||||||||||
Years ending December 31, | |||||||||||||||||||||||||||||||||||||
2015 | $ | 92 | $ | 15 | $ | 1 | |||||||||||||||||||||||||||||||
2016 | 104 | 16 | 1 | ||||||||||||||||||||||||||||||||||
2017 | 114 | 17 | 1 | ||||||||||||||||||||||||||||||||||
2018 | 123 | 18 | 1 | ||||||||||||||||||||||||||||||||||
2019 | 132 | 19 | 1 | ||||||||||||||||||||||||||||||||||
Years 2020 - 2024 | 795 | 101 | 6 | ||||||||||||||||||||||||||||||||||
Summary of Weighted Average Assumptions Used in Computing Present Value of Benefit Obligations and Net Periodic Benefit Cost | The following tables summarize the weighted average assumptions used in computing the present value of the benefit obligations and the net periodic benefit cost. | ||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | ||||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Discount rate in determining net periodic benefit cost prior to Plan amendments | 4.9 | % | 4.2 | % | 4.6 | % | 3.9 | % | |||||||||||||||||||||||||||||
Discount rate in determining net periodic benefit cost after Plan amendments | 4.5 | n/a | 4.2 | n/a | |||||||||||||||||||||||||||||||||
Discount rate in determining benefit obligations at year end | 3.9 | 4.9 | 3.8 | 4.6 | |||||||||||||||||||||||||||||||||
Rate of increase in future compensation levels for determining net periodic benefit cost | 4.7 | 4.7 | — | — | |||||||||||||||||||||||||||||||||
Rate of increase in future compensation levels for determining benefit obligations at year end | 4.7 | 4.7 | — | — | |||||||||||||||||||||||||||||||||
Expected return on plan assets | 7.5 | 7.5 | 7.5 | 7.5 | |||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Superannuation, | |||||||||||||||||||||||||||||||||||
SERP (1) and ESBP | |||||||||||||||||||||||||||||||||||||
Years Ended | Years Ended | Years Ended | |||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||||||||||
Service cost (2) | $ | 81 | $ | 87 | $ | 77 | $ | 10 | $ | 14 | $ | 14 | $ | 1 | $ | 1 | $ | 2 | |||||||||||||||||||
Interest cost | 105 | 99 | 101 | 11 | 11 | 12 | 4 | 3 | 2 | ||||||||||||||||||||||||||||
Expected return on plan assets | (193 | ) | (166 | ) | (147 | ) | (18 | ) | (15 | ) | (13 | ) | — | — | — | ||||||||||||||||||||||
Amortization of prior service credit | (12 | ) | — | — | (5 | ) | — | 1 | — | — | — | ||||||||||||||||||||||||||
Recognized net actuarial loss | 59 | 107 | 89 | 1 | 7 | 8 | 2 | 2 | 2 | ||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 40 | $ | 127 | $ | 120 | $ | (1 | ) | $ | 17 | $ | 22 | $ | 7 | $ | 6 | $ | 6 | ||||||||||||||||||
-1 | Supplemental Executive Retirement Plan | ||||||||||||||||||||||||||||||||||||
-2 | Pension Benefits for 2014 includes $6 million of service cost associated with transferred employees as a result of the business integration initiative. | ||||||||||||||||||||||||||||||||||||
Summary of Amounts Forecasted to be Recognized, Net Periodic Benefit Costs | At December 31, 2014 and 2013, the following amounts were forecasted to be recognized in 2015 and 2014 net periodic benefit costs, respectively. | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Pension | Other | Pension | Other | |||||||||||||||||||||||||||||||||
Benefits | Benefits | Benefits | Benefits | ||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 109 | $ | 5 | $ | 55 | $ | — | |||||||||||||||||||||||||||||
Prior service credit | (18 | ) | (8 | ) | — | — | |||||||||||||||||||||||||||||||
Amounts to be reclassified from accumulated other comprehensive loss | $ | 91 | $ | (3 | ) | $ | 55 | $ | — | ||||||||||||||||||||||||||||
Schedule of Assumed Weighted-Average Healthcare Cost Trend Rates | The Company's assumed weighted-average healthcare cost trend rates are as follows. | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 7.53 | % | 7.71 | % | 8.31 | % | |||||||||||||||||||||||||||||||
Rate to which cost trend rate is assumed to decline (the ultimate trend rate) | 4.5 | % | 4.5 | % | 4.5 | % | |||||||||||||||||||||||||||||||
Year the rate reaches the ultimate trend rate | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates | The healthcare cost trend rate assumptions have a significant effect on the amounts reported for the Health Plan. A one-percentage-point change in assumed healthcare cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||||||||
(Dollars in millions) | One-Percentage- | One-Percentage- | |||||||||||||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | (2 | ) | ||||||||||||||||||||||||||||||||
Effect on postretirement benefit obligation | 19 | (22 | ) | ||||||||||||||||||||||||||||||||||
Retirement Plan | |||||||||||||||||||||||||||||||||||||
Employee Pension and Other Postretirement Benefits tables | |||||||||||||||||||||||||||||||||||||
Fair Value by Level Within Fair Value Hierarchy Assets by Major Asset Category for Pension Plan and Other Benefits Plan | The following table provides the fair value by level within the fair value hierarchy of the Company's period-end assets by major asset category for the Pension Plan and Other Benefits Plan. For information about the fair value hierarchy levels, refer to Note 11 to these consolidated financial statements. The Plans do not hold any equity or debt securities issued by the Company or any related parties. | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Pension Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 52 | $ | — | $ | 53 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 251 | — | 251 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 442 | — | 442 | |||||||||||||||||||||||||||||||||
Equity securities | 295 | 6 | — | 301 | |||||||||||||||||||||||||||||||||
Real estate funds | — | — | 270 | 270 | |||||||||||||||||||||||||||||||||
Limited partnerships | — | 138 | 28 | 166 | |||||||||||||||||||||||||||||||||
Mutual funds | 1,422 | — | — | 1,422 | |||||||||||||||||||||||||||||||||
Other | 6 | 23 | — | 29 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 1,724 | $ | 912 | $ | 298 | $ | 2,934 | |||||||||||||||||||||||||||||
Accrued dividends and interest receivable | 7 | ||||||||||||||||||||||||||||||||||||
Net pending trades | (44 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 2,897 | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Pension Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 28 | $ | — | $ | 28 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 230 | — | 230 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 364 | — | 364 | |||||||||||||||||||||||||||||||||
Equity securities | 233 | — | — | 233 | |||||||||||||||||||||||||||||||||
Real estate funds | — | — | 242 | 242 | |||||||||||||||||||||||||||||||||
Limited partnerships | — | 134 | 22 | 156 | |||||||||||||||||||||||||||||||||
Common collective funds | — | 60 | — | 60 | |||||||||||||||||||||||||||||||||
Mutual funds | 1,407 | — | — | 1,407 | |||||||||||||||||||||||||||||||||
Other | (1 | ) | 28 | — | 27 | ||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 1,639 | $ | 844 | $ | 264 | $ | 2,747 | |||||||||||||||||||||||||||||
Accrued dividends and interest receivable | 4 | ||||||||||||||||||||||||||||||||||||
Net pending trades | (35 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 2,716 | |||||||||||||||||||||||||||||||||||
Changes in Fair Value of Assets Measured at Level 3 | |||||||||||||||||||||||||||||||||||||
Level 3 Assets for Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Real Estate Funds | Limited Partnership | Total | ||||||||||||||||||||||||||||||||||
Beginning balance—January 1, 2014 | $ | 242 | $ | 22 | $ | 264 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 21 | 5 | 26 | ||||||||||||||||||||||||||||||||||
Purchases, issuances, sales, and settlements, net | 7 | 1 | 8 | ||||||||||||||||||||||||||||||||||
Ending balance—December 31, 2014 | $ | 270 | $ | 28 | $ | 298 | |||||||||||||||||||||||||||||||
Level 3 Assets for Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Real Estate Funds | Limited Partnership | Total | ||||||||||||||||||||||||||||||||||
Beginning balance—January 1, 2013 | $ | 156 | $ | 18 | $ | 174 | |||||||||||||||||||||||||||||||
Unrealized gains (losses) | 18 | — | 18 | ||||||||||||||||||||||||||||||||||
Purchases, issuances, sales, and settlements, net | 68 | 4 | 72 | ||||||||||||||||||||||||||||||||||
Ending balance—December 31, 2013 | $ | 242 | $ | 22 | $ | 264 | |||||||||||||||||||||||||||||||
Other postretirement benefits | |||||||||||||||||||||||||||||||||||||
Employee Pension and Other Postretirement Benefits tables | |||||||||||||||||||||||||||||||||||||
Fair Value by Level Within Fair Value Hierarchy Assets by Major Asset Category for Pension Plan and Other Benefits Plan | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3 | — | $ | 3 | ||||||||||||||||||||||||||||||
U.S. Government securities | — | 36 | — | 36 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 23 | — | 23 | |||||||||||||||||||||||||||||||||
Municipal bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Mutual funds | 136 | — | — | 136 | |||||||||||||||||||||||||||||||||
Pooled separate account | — | 65 | — | 65 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 136 | $ | 128 | $ | — | $ | 264 | |||||||||||||||||||||||||||||
Net pending trades | (7 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 257 | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||
Other Postretirement Benefits Plan Investments: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||||||||
U.S. Government securities | — | 33 | — | 33 | |||||||||||||||||||||||||||||||||
Corporate bonds | — | 19 | — | 19 | |||||||||||||||||||||||||||||||||
Municipal bonds | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Mutual funds | 133 | — | — | 133 | |||||||||||||||||||||||||||||||||
Pooled separate account | — | 63 | — | 63 | |||||||||||||||||||||||||||||||||
Total Plan Investments | $ | 133 | $ | 118 | $ | — | $ | 251 | |||||||||||||||||||||||||||||
Net pending trades | (6 | ) | |||||||||||||||||||||||||||||||||||
Total Plan Assets | $ | 245 | |||||||||||||||||||||||||||||||||||
Other_Noninterest_Expense_Tabl
Other Noninterest Expense (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Summary of Other Noninterest Expense | The detail of other noninterest expense is as follows. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Software | $ | 94 | $ | 83 | $ | 70 | |||||||
LIHC investment amortization | 89 | 76 | 63 | ||||||||||
Advertising and public relations | 39 | 61 | 57 | ||||||||||
Communications | 40 | 45 | 39 | ||||||||||
Data processing | 32 | 36 | 36 | ||||||||||
Other | 159 | 150 | 198 | ||||||||||
Total other noninterest expense | $ | 453 | $ | 451 | $ | 463 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of effective tax rate | The following table is an analysis of the effective tax rate. | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Net tax effects of: | |||||||||||||
State income taxes, net of federal income tax benefit | 7 | 5 | 6 | ||||||||||
Tax-exempt interest income | (2 | ) | (1 | ) | (1 | ) | |||||||
Tax credits | (13 | ) | (13 | ) | (10 | ) | |||||||
Other | (2 | ) | (3 | ) | (3 | ) | |||||||
Effective tax rate | 25 | % | 23 | % | 27 | % | |||||||
Components of Income Tax Expense | The components of income tax expense were as follows. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Taxes currently payable: | |||||||||||||
Federal | $ | 82 | $ | 79 | $ | 93 | |||||||
State | 76 | 43 | 32 | ||||||||||
Foreign | 13 | 12 | 14 | ||||||||||
Total currently payable | 171 | 134 | 139 | ||||||||||
Taxes deferred: | |||||||||||||
Federal | 72 | 71 | 62 | ||||||||||
State | 28 | (8 | ) | 20 | |||||||||
Foreign | 3 | (2 | ) | (1 | ) | ||||||||
Total deferred | 103 | 61 | 81 | ||||||||||
Total income tax expense | $ | 274 | $ | 195 | $ | 220 | |||||||
Schedule of components of the Company's net deferred tax balances | The components of the Company's net deferred tax balances as of December 31, 2014 and 2013 were as follows. | ||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowance for credit losses | $ | 283 | $ | 287 | |||||||||
Accrued expense, net | 272 | 216 | |||||||||||
Unrealized losses on pension and postretirement benefits | 389 | 204 | |||||||||||
Unrealized net losses on securities available for sale | 97 | 262 | |||||||||||
Fair value adjustments for valuation of FDIC covered assets | 159 | 183 | |||||||||||
Other | 110 | 97 | |||||||||||
Total deferred tax assets | 1,310 | 1,249 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Leasing | 759 | 698 | |||||||||||
Intangible assets | 99 | 105 | |||||||||||
Pension liabilities | 389 | 363 | |||||||||||
Other | 5 | 17 | |||||||||||
Total deferred tax liabilities | 1,252 | 1,183 | |||||||||||
Net deferred tax asset | $ | 58 | $ | 66 | |||||||||
Schedule of changes in unrecognized tax positions | The changes in unrecognized tax positions were as follows. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 16 | $ | 269 | $ | 274 | |||||||
Gross increases as a result of tax positions taken during prior periods | — | 1 | 7 | ||||||||||
Gross decreases as a result of tax positions taken during prior periods | (10 | ) | (256 | ) | (13 | ) | |||||||
Gross increases as a result of tax positions taken during current period | 2 | 2 | 1 | ||||||||||
Balance, end of year | $ | 8 | $ | 16 | $ | 269 | |||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||||||
Summary of Capital Amounts and Ratios | The Company's and the Bank's capital amounts and ratios are presented in the following tables. | |||||||||||||||||||||||||
Actual | Minimum | |||||||||||||||||||||||||
Regulatory | ||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||
(Dollars in millions) | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||
Capital Ratios for the Company (U.S. Basel I): | ||||||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | $ | 12,367 | 12.79 | % | ≥ | $ | 3,867 | 4 | % | |||||||||||||||||
Total capital (to risk-weighted assets) | 14,246 | 14.74 | ≥ | 7,733 | 8 | |||||||||||||||||||||
Tier 1 leverage(1) | 12,367 | 11.25 | ≥ | 4,396 | 4 | |||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 11,471 | 12.41 | ≥ | 3,696 | 4 | |||||||||||||||||||||
Total capital (to risk-weighted assets) | 13,499 | 14.61 | ≥ | 7,393 | 8 | |||||||||||||||||||||
Tier 1 leverage(1) | 11,471 | 11.27 | ≥ | 4,073 | 4 | |||||||||||||||||||||
-1 | Tier 1 capital divided by quarterly average assets (excluding certain intangible assets). | |||||||||||||||||||||||||
Actual | Minimum | To Be Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||
Regulatory | ||||||||||||||||||||||||||
Requirement | ||||||||||||||||||||||||||
(Dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Capital Ratios for the Bank: | ||||||||||||||||||||||||||
As of December 31, 2014 (U.S. Basel III): | ||||||||||||||||||||||||||
Common equity tier 1 capital (to risk-weighted assets) | $ | 12,087 | 13.09 | % | ≥ | n/a | n/a | ≥ | n/a | n/a | ||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 12,088 | 13.09 | ≥ | $ | 5,080 | 5.5 | % | ≥ | $ | 5,542 | 6 | % | ||||||||||||||
Total capital (to risk-weighted assets) | 13,656 | 14.78 | ≥ | 7,389 | 8 | ≥ | 9,237 | 10 | ||||||||||||||||||
Tier 1 leverage(1) | 12,088 | 11.09 | ≥ | 4,361 | 4 | ≥ | 5,452 | 5 | ||||||||||||||||||
As of December 31, 2013 (U.S. Basel I): | ||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | 11,274 | 12.94 | ≥ | 3,485 | 4 | ≥ | 5,228 | 6 | ||||||||||||||||||
Total capital (to risk-weighted assets) | 12,990 | 14.91 | ≥ | 6,970 | 8 | ≥ | 8,713 | 10 | ||||||||||||||||||
Tier 1 leverage(1) | 11,274 | 11.13 | ≥ | 4,051 | 4 | ≥ | 5,063 | 5 | ||||||||||||||||||
-1 | Tier 1 capital divided by quarterly average assets (excluding certain intangible assets). |
Commitments_Contingencies_and_1
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Summary of Commitments | The following table summarizes the Company's commitments. | ||||
(Dollars in millions) | 31-Dec-14 | ||||
Commitments to extend credit | $ | 34,991 | |||
Issued standby and commercial letters of credit | $ | 5,836 | |||
Other commitments | $ | 175 | |||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of reportable business segments | As of and for the Twelve Months Ended December 31, 2014: | ||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,385 | $ | 1,016 | $ | 173 | $ | 442 | $ | 175 | $ | 65 | $ | (394 | ) | $ | 2,862 | ||||||||||||||||
Noninterest income (expense) | 330 | 221 | 119 | 165 | 357 | 157 | (226 | ) | 1,123 | ||||||||||||||||||||||||
Total revenue | 1,715 | 1,237 | 292 | 607 | 532 | 222 | (620 | ) | 3,985 | ||||||||||||||||||||||||
Noninterest expense | 1,347 | 440 | 112 | 363 | 166 | 630 | (159 | ) | 2,899 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | (7 | ) | 21 | (24 | ) | (3 | ) | 35 | (5 | ) | (11 | ) | 6 | ||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 375 | 776 | 204 | 247 | 331 | (403 | ) | (450 | ) | 1,080 | |||||||||||||||||||||||
Income tax expense (benefit) | 148 | 188 | 80 | 97 | 84 | (146 | ) | (177 | ) | 274 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 227 | 588 | 124 | 150 | 247 | (257 | ) | (273 | ) | 806 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 227 | $ | 588 | $ | 124 | $ | 150 | $ | 247 | $ | (238 | ) | $ | (273 | ) | $ | 825 | |||||||||||||||
Total assets, end of period | $ | 37,722 | $ | 38,727 | $ | 5,130 | $ | 1,779 | $ | 6,195 | $ | 27,707 | $ | (3,582 | ) | $ | 113,678 | ||||||||||||||||
As of and for the Twelve Months Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,348 | $ | 913 | $ | 137 | $ | 446 | $ | 184 | $ | 38 | $ | (350 | ) | $ | 2,716 | ||||||||||||||||
Noninterest income (expense) | 371 | 193 | 81 | 160 | 210 | 66 | (205 | ) | 876 | ||||||||||||||||||||||||
Total revenue | 1,719 | 1,106 | 218 | 606 | 394 | 104 | (555 | ) | 3,592 | ||||||||||||||||||||||||
Noninterest expense | 1,423 | 406 | 54 | 356 | 100 | 567 | (129 | ) | 2,777 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | (35 | ) | 17 | 2 | (3 | ) | 6 | (13 | ) | (3 | ) | (29 | ) | ||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 331 | 683 | 162 | 253 | 288 | (450 | ) | (423 | ) | 844 | |||||||||||||||||||||||
Income tax expense (benefit) | 130 | 174 | 64 | 99 | 78 | (184 | ) | (166 | ) | 195 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 201 | 509 | 98 | 154 | 210 | (266 | ) | (257 | ) | 649 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 201 | $ | 509 | $ | 98 | $ | 154 | $ | 210 | $ | (248 | ) | $ | (257 | ) | $ | 667 | |||||||||||||||
Total assets, end of period | $ | 34,421 | $ | 32,661 | $ | 4,755 | $ | 1,574 | $ | 5,937 | $ | 29,225 | $ | (2,679 | ) | $ | 105,894 | ||||||||||||||||
As of and for the Twelve Months Ended December 31, 2012: | |||||||||||||||||||||||||||||||||
(Dollars in millions) | Retail | Commercial | U.S. Corporate | Transaction | Investment | Other | Reconciling | MUFG Americas Holdings | |||||||||||||||||||||||||
Banking & | Banking | Banking | Banking | Banking & | Items | Corporation | |||||||||||||||||||||||||||
Wealth | Markets | ||||||||||||||||||||||||||||||||
Markets | |||||||||||||||||||||||||||||||||
Results of operations—Market View | |||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 1,201 | $ | 778 | $ | 113 | $ | 496 | $ | 174 | $ | 190 | $ | (350 | ) | $ | 2,602 | ||||||||||||||||
Noninterest income (expense) | 336 | 208 | 72 | 167 | 207 | 32 | (204 | ) | 818 | ||||||||||||||||||||||||
Total revenue | 1,537 | 986 | 185 | 663 | 381 | 222 | (554 | ) | 3,420 | ||||||||||||||||||||||||
Noninterest expense | 1,294 | 389 | 54 | 351 | 77 | 550 | (132 | ) | 2,583 | ||||||||||||||||||||||||
(Reversal of) provision for credit losses | 55 | (52 | ) | 21 | (1 | ) | 6 | (25 | ) | 4 | 8 | ||||||||||||||||||||||
Income (loss) before income taxes and including noncontrolling interests | 188 | 649 | 110 | 313 | 298 | (303 | ) | (426 | ) | 829 | |||||||||||||||||||||||
Income tax expense (benefit) | 74 | 179 | 43 | 123 | 86 | (118 | ) | (167 | ) | 220 | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | 114 | 470 | 67 | 190 | 212 | (185 | ) | (259 | ) | 609 | |||||||||||||||||||||||
Deduct: net loss from noncontrolling interests | — | — | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||
Net income (loss) attributable to MUAH | $ | 114 | $ | 470 | $ | 67 | $ | 190 | $ | 212 | $ | (166 | ) | $ | (259 | ) | $ | 628 | |||||||||||||||
Total assets, end of period | $ | 31,809 | $ | 25,318 | $ | 3,822 | $ | 1,564 | $ | 7,137 | $ | 29,133 | $ | (1,775 | ) | $ | 97,008 | ||||||||||||||||
Condensed_MUFG_Americas_Holdin1
Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements (Parent Company) (Tables) (MUFG Americas Holdings Corporation) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
MUFG Americas Holdings Corporation | |||||||||||||
Condensed Balance Sheets | Condensed Balance Sheets | ||||||||||||
December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | |||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 328 | $ | 191 | |||||||||
Investment in subsidiaries | 15,404 | 14,784 | |||||||||||
Other assets | 4 | 5 | |||||||||||
Total assets | $ | 15,736 | $ | 14,980 | |||||||||
Liabilities and Stockholder's Equity | |||||||||||||
Long-term debt | $ | 750 | $ | 763 | |||||||||
Other liabilities | 1 | 2 | |||||||||||
Total liabilities | 751 | 765 | |||||||||||
Stockholder's equity | 14,985 | 14,215 | |||||||||||
Total liabilities and stockholder's equity | $ | 15,736 | $ | 14,980 | |||||||||
Condensed Statements of Income | Condensed Statements of Income | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Income: | |||||||||||||
Dividends from bank subsidiary | $ | — | $ | — | $ | 950 | |||||||
Interest income on advances to subsidiaries and deposits in bank | — | — | 1 | ||||||||||
Total income | — | — | 951 | ||||||||||
Expense: | |||||||||||||
Interest expense | 21 | 31 | 23 | ||||||||||
Other expense | 4 | 4 | — | ||||||||||
Total expense | 25 | 35 | 23 | ||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | (25 | ) | (35 | ) | 928 | ||||||||
Income tax benefit | (10 | ) | (14 | ) | (9 | ) | |||||||
Income (loss) before equity in undistributed net income of subsidiaries | (15 | ) | (21 | ) | 937 | ||||||||
Equity in undistributed net income (loss) of subsidiaries: | |||||||||||||
Bank subsidiary | 761 | 625 | (403 | ) | |||||||||
Nonbank subsidiaries | 79 | 63 | 94 | ||||||||||
Net Income | $ | 825 | $ | 667 | $ | 628 | |||||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars in millions) | 2014 | 2013 | 2012 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||||
Net income | $ | 825 | $ | 667 | $ | 628 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||
Equity in undistributed net (income) loss of subsidiaries | (840 | ) | (688 | ) | 309 | ||||||||
Other, net | 1 | 14 | (14 | ) | |||||||||
Net cash provided by (used in) operating activities | (14 | ) | (7 | ) | 923 | ||||||||
Cash Flows from Investing Activities: | |||||||||||||
Investments in and advances to subsidiaries | — | (1,700 | ) | — | |||||||||
Repayment of investments in and advances to subsidiaries | 165 | 35 | 650 | ||||||||||
Net cash acquired from (paid for) acquisitions | — | — | (1,457 | ) | |||||||||
Net cash used in investing activities | 165 | (1,665 | ) | (807 | ) | ||||||||
Cash Flows from Financing Activities: | |||||||||||||
Capital contribution from BTMU | — | 1,200 | — | ||||||||||
Proceeds from issuance of subordinated loan due to BTMU | — | 300 | — | ||||||||||
Proceeds from issuance of senior debt | — | — | 397 | ||||||||||
Repayment of subordinated debt | — | (400 | ) | — | |||||||||
Repayment of junior subordinated debt | (14 | ) | — | — | |||||||||
Other, net | — | — | (2 | ) | |||||||||
Net cash provided by (used in) financing activities | (14 | ) | 1,100 | 395 | |||||||||
Net increase (decrease) in cash and cash equivalents | 137 | (572 | ) | 511 | |||||||||
Cash and cash equivalents at beginning of year | 191 | 763 | 252 | ||||||||||
Cash and cash equivalents at end of year | $ | 328 | $ | 191 | $ | 763 | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies and Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2014 | |
type_of_lease | |
Significant Accounting Policies | |
Loans placed on nonaccrual status when past due term (days) | 90 days |
Interest accrual period (days) | 120 days |
Consecutive payment period for accrual status | 6 months |
Number of types of leases offered to customers | 2 |
Minimum | |
Significant Accounting Policies | |
Intangible assets amortized period | 3 years |
Maximum | |
Significant Accounting Policies | |
Intangible assets amortized period | 40 years |
Premises | Minimum | |
Significant Accounting Policies | |
Estimated useful life | 10 years |
Premises | Maximum | |
Significant Accounting Policies | |
Estimated useful life | 50 years |
Furniture, fixtures and equipment | Minimum | |
Significant Accounting Policies | |
Estimated useful life | 3 years |
Furniture, fixtures and equipment | Maximum | |
Significant Accounting Policies | |
Estimated useful life | 8 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies and Nature of Operations - Reclassification Adjustments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Depreciation, amortization and accretion, net | $324 | $434 | $416 |
Loans originated for sale | -841 | -622 | -211 |
Net proceeds from sale of loans originated for sale | 839 | 599 | 148 |
Net cash provided by (used in) operating activities | 1,622 | 689 | 460 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of loans | 196 | 254 | 202 |
Net decrease (increase) in loans | -8,664 | -4,912 | -4,100 |
Net cash provided by (used in) investing activities | -8,520 | -8,531 | 390 |
Cash Flows from Financing Activities: | |||
Net cash provided by (used in) financing activities | 6,446 | 8,554 | 446 |
Net change in cash and cash equivalents | -452 | 712 | 1,296 |
Supplemental Schedule of Noncash Investing and Financing Activities: | |||
Net transfer of loans held for investment to loans held for sale | 196 | 246 | 155 |
As Previously Reported | |||
Cash Flows from Operating Activities: | |||
Depreciation, amortization and accretion, net | 509 | 518 | |
Loans originated for sale | -276 | -58 | |
Net proceeds from sale of loans originated for sale | 226 | 34 | |
Net cash provided by (used in) operating activities | 737 | 601 | |
Cash Flows from Investing Activities: | |||
Proceeds from sales of loans | 627 | 316 | |
Net decrease (increase) in loans | -5,333 | -4,355 | |
Net cash provided by (used in) investing activities | -8,579 | 249 | |
Cash Flows from Financing Activities: | |||
Net cash provided by (used in) financing activities | 8,554 | 446 | |
Net change in cash and cash equivalents | 712 | 1,296 | |
Supplemental Schedule of Noncash Investing and Financing Activities: | |||
Net transfer of loans held for investment to loans held for sale | 592 | 308 | |
Reclassification Amounts | |||
Cash Flows from Operating Activities: | |||
Depreciation, amortization and accretion, net | -75 | -102 | |
Loans originated for sale | -346 | -153 | |
Net proceeds from sale of loans originated for sale | 373 | 114 | |
Net cash provided by (used in) operating activities | -48 | -141 | |
Cash Flows from Investing Activities: | |||
Proceeds from sales of loans | -373 | -114 | |
Net decrease (increase) in loans | 421 | 255 | |
Net cash provided by (used in) investing activities | 48 | 141 | |
Cash Flows from Financing Activities: | |||
Net cash provided by (used in) financing activities | 0 | 0 | |
Net change in cash and cash equivalents | 0 | 0 | |
Supplemental Schedule of Noncash Investing and Financing Activities: | |||
Net transfer of loans held for investment to loans held for sale | ($346) | ($153) |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 3 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | |
Business Acquisitions | |||||
Goodwill | $3,225,000,000 | $3,228,000,000 | $2,942,000,000 | ||
PB Capital | |||||
Business Acquisitions | |||||
Purchase price, paid in cash | 3,700,000,000 | ||||
Loans acquired excluding the effects of purchase accounting adjustments | 3,500,000,000 | ||||
Fair value of net assets acquired | 3,400,000,000 | ||||
Goodwill | 238,000,000 | 238,000,000 | |||
First Bank Association Bank Services | |||||
Business Acquisitions | |||||
Goodwill | 30,000,000 | ||||
Deposits | $570,000,000 |
Securities_Schedule_of_Availab
Securities - Schedule of Available For Sale Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities available for sale | ||
Amortized Cost | $13,819 | $16,194 |
Gross Unrealized Gains | 76 | 76 |
Gross Unrealized Losses | 171 | 453 |
Fair Value | 13,724 | 15,817 |
U.S. government sponsored agencies | ||
Securities available for sale | ||
Amortized Cost | 73 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 73 | |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities available for sale | ||
Amortized Cost | 7,649 | 9,194 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 91 | 296 |
Fair Value | 7,560 | 8,900 |
Residential mortgage-backed securities, Privately issued | ||
Securities available for sale | ||
Amortized Cost | 166 | 220 |
Gross Unrealized Gains | 3 | 4 |
Gross Unrealized Losses | 1 | 2 |
Fair Value | 168 | 222 |
Commercial mortgage-backed securities | ||
Securities available for sale | ||
Amortized Cost | 1,689 | 1,947 |
Gross Unrealized Gains | 15 | 8 |
Gross Unrealized Losses | 13 | 85 |
Fair Value | 1,691 | 1,870 |
Collateralized loan obligations | ||
Securities available for sale | ||
Amortized Cost | 2,527 | 2,670 |
Gross Unrealized Gains | 4 | 25 |
Gross Unrealized Losses | 37 | 22 |
Fair Value | 2,494 | 2,673 |
Other Asset Liability Management Securities, Other | ||
Securities available for sale | ||
Amortized Cost | 8 | 34 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 9 | 35 |
Asset Liability Management securities | ||
Securities available for sale | ||
Amortized Cost | 12,039 | 14,138 |
Gross Unrealized Gains | 25 | 40 |
Gross Unrealized Losses | 142 | 405 |
Fair Value | 11,922 | 13,773 |
Other debt securities, Direct bank purchase bonds | ||
Securities available for sale | ||
Amortized Cost | 1,719 | 1,968 |
Gross Unrealized Gains | 49 | 35 |
Gross Unrealized Losses | 27 | 43 |
Fair Value | 1,741 | 1,960 |
Other debt securities, Other | ||
Securities available for sale | ||
Amortized Cost | 53 | 81 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 5 |
Fair Value | 52 | 76 |
Equity securities | ||
Securities available for sale | ||
Amortized Cost | 8 | 7 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | 1 | 0 |
Fair Value | $9 | $8 |
Securities_Schedule_of_Continu
Securities - Schedule of Continuous Unrealized Loss Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | $1,496 | $12,290 |
Securities available for sale, 12 months or more, Fair Value | 9,595 | 1,046 |
Securities available for sale, Fair Value, Total | 11,091 | 13,336 |
Securities available for sale, Less than 12 months, Unrealized Losses | 11 | 415 |
Securities available for sale, 12 months or more, Unrealized Losses | 160 | 38 |
Securities available for sale, Unrealized Losses, Total | 171 | 453 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 611 | 8,508 |
Securities available for sale, 12 months or more, Fair Value | 6,258 | 147 |
Securities available for sale, Fair Value, Total | 6,869 | 8,655 |
Securities available for sale, Less than 12 months, Unrealized Losses | 1 | 293 |
Securities available for sale, 12 months or more, Unrealized Losses | 90 | 3 |
Securities available for sale, Unrealized Losses, Total | 91 | 296 |
Residential mortgage-backed securities, Privately issued | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 9 | 72 |
Securities available for sale, 12 months or more, Fair Value | 49 | 18 |
Securities available for sale, Fair Value, Total | 58 | 90 |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | 2 |
Securities available for sale, 12 months or more, Unrealized Losses | 1 | 0 |
Securities available for sale, Unrealized Losses, Total | 1 | 2 |
Commercial mortgage-backed securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 143 | 1,274 |
Securities available for sale, 12 months or more, Fair Value | 842 | 58 |
Securities available for sale, Fair Value, Total | 985 | 1,332 |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | 80 |
Securities available for sale, 12 months or more, Unrealized Losses | 13 | 5 |
Securities available for sale, Unrealized Losses, Total | 13 | 85 |
Collateralized loan obligations | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 657 | 1,879 |
Securities available for sale, 12 months or more, Fair Value | 1,481 | 10 |
Securities available for sale, Fair Value, Total | 2,138 | 1,889 |
Securities available for sale, Less than 12 months, Unrealized Losses | 6 | 21 |
Securities available for sale, 12 months or more, Unrealized Losses | 31 | 1 |
Securities available for sale, Unrealized Losses, Total | 37 | 22 |
Other Asset Liability Management Securities, Other | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 0 | 0 |
Securities available for sale, 12 months or more, Fair Value | 1 | 1 |
Securities available for sale, Fair Value, Total | 1 | 1 |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | 0 |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | 0 |
Securities available for sale, Unrealized Losses, Total | 0 | 0 |
Asset Liability Management securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 1,420 | 11,733 |
Securities available for sale, 12 months or more, Fair Value | 8,631 | 234 |
Securities available for sale, Fair Value, Total | 10,051 | 11,967 |
Securities available for sale, Less than 12 months, Unrealized Losses | 7 | 396 |
Securities available for sale, 12 months or more, Unrealized Losses | 135 | 9 |
Securities available for sale, Unrealized Losses, Total | 142 | 405 |
Other debt securities, Direct bank purchase bonds | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 75 | 537 |
Securities available for sale, 12 months or more, Fair Value | 937 | 778 |
Securities available for sale, Fair Value, Total | 1,012 | 1,315 |
Securities available for sale, Less than 12 months, Unrealized Losses | 3 | 18 |
Securities available for sale, 12 months or more, Unrealized Losses | 24 | 25 |
Securities available for sale, Unrealized Losses, Total | 27 | 43 |
Other debt securities, Other | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 0 | 15 |
Securities available for sale, 12 months or more, Fair Value | 22 | 34 |
Securities available for sale, Fair Value, Total | 22 | 49 |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | 1 |
Securities available for sale, 12 months or more, Unrealized Losses | 1 | 4 |
Securities available for sale, Unrealized Losses, Total | 1 | 5 |
Equity securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 1 | 5 |
Securities available for sale, 12 months or more, Fair Value | 5 | 0 |
Securities available for sale, Fair Value, Total | 6 | 5 |
Securities available for sale, Less than 12 months, Unrealized Losses | 1 | 0 |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | 0 |
Securities available for sale, Unrealized Losses, Total | $1 | $0 |
Securities_Fair_Value_of_Debt_
Securities - Fair Value of Debt Securities AFS Contractual Maturity (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Securities available for sale | |
One Year or Less | $107 |
Over One Year Through Five Years | 658 |
Over Five Years Through Ten Years | 1,740 |
Over Ten Years | 11,210 |
Total Fair Value | 13,715 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 13 |
Over Five Years Through Ten Years | 458 |
Over Ten Years | 7,089 |
Total Fair Value | 7,560 |
Residential mortgage-backed securities, Privately issued | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 4 |
Over Five Years Through Ten Years | 0 |
Over Ten Years | 164 |
Total Fair Value | 168 |
Commercial mortgage-backed securities | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 0 |
Over Five Years Through Ten Years | 36 |
Over Ten Years | 1,655 |
Total Fair Value | 1,691 |
Collateralized loan obligations | |
Securities available for sale | |
One Year or Less | 30 |
Over One Year Through Five Years | 80 |
Over Five Years Through Ten Years | 572 |
Over Ten Years | 1,812 |
Total Fair Value | 2,494 |
Other Asset Liability Management Securities, Other | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 2 |
Over Five Years Through Ten Years | 7 |
Over Ten Years | 0 |
Total Fair Value | 9 |
Asset Liability Management securities | |
Securities available for sale | |
One Year or Less | 30 |
Over One Year Through Five Years | 99 |
Over Five Years Through Ten Years | 1,073 |
Over Ten Years | 10,720 |
Total Fair Value | 11,922 |
Other debt securities, Direct bank purchase bonds | |
Securities available for sale | |
One Year or Less | 72 |
Over One Year Through Five Years | 547 |
Over Five Years Through Ten Years | 663 |
Over Ten Years | 459 |
Total Fair Value | 1,741 |
Other debt securities, Other | |
Securities available for sale | |
One Year or Less | 5 |
Over One Year Through Five Years | 12 |
Over Five Years Through Ten Years | 4 |
Over Ten Years | 31 |
Total Fair Value | $52 |
Securities_Proceeds_from_Sales
Securities - Proceeds from Sales of Securities AFS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $1,376 | $8,340 | $6,845 |
Gross realized gains | 23 | 190 | 113 |
Gross realized losses | $0 | $3 | $2 |
Securities_Unrealized_GainsLos
Securities - Unrealized Gains/Loss in OCI (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | $8,433 | $6,671 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 6 | 7 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 148 | 169 |
Total securities held to maturity, carrying amount | 8,291 | 6,509 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 132 | 11 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 11 | 81 |
Total securities held to maturity, Fair Value | 8,412 | 6,439 |
U.S. Treasury | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 486 | |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 0 | |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 0 | |
Total securities held to maturity, carrying amount | 486 | |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 3 | |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 0 | |
Total securities held to maturity, Fair Value | 489 | |
U.S. government-sponsored agencies | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 125 | |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 0 | |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 0 | |
Total securities held to maturity, carrying amount | 125 | |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 0 | |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 0 | |
Total securities held to maturity, Fair Value | 125 | |
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 6,002 | 5,065 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 6 | 7 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 66 | 77 |
Total securities held to maturity, carrying amount | 5,942 | 4,995 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 76 | 8 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 5 | 69 |
Total securities held to maturity, Fair Value | 6,013 | 4,934 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 1,820 | 1,606 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 0 | 0 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 82 | 92 |
Total securities held to maturity, carrying amount | 1,738 | 1,514 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 53 | 3 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 6 | 12 |
Total securities held to maturity, Fair Value | $1,785 | $1,505 |
Securities_Held_to_Maturity_Co
Securities - Held to Maturity Continuous Unrealized Loss Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities held to maturity | ||
Less than 12 months, Fair Value | $533 | $4,889 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 122 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 1 | 78 |
12 months or more, Fair Value | 3,893 | 543 |
12 months or more, Unrealized Losses, Recognized in OCI | 148 | 47 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 10 | 3 |
Total, Fair Value | 4,426 | 5,432 |
Total, Unrealized Losses, Recognized in OCI | 148 | 169 |
Total, Unrealized Losses, Not Recognized in OCI | 11 | 81 |
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | ||
Securities held to maturity | ||
Less than 12 months, Fair Value | 399 | 3,873 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 76 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 1 | 68 |
12 months or more, Fair Value | 2,341 | 54 |
12 months or more, Unrealized Losses, Recognized in OCI | 66 | 1 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 4 | 1 |
Total, Fair Value | 2,740 | 3,927 |
Total, Unrealized Losses, Recognized in OCI | 66 | 77 |
Total, Unrealized Losses, Not Recognized in OCI | 5 | 69 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Less than 12 months, Fair Value | 134 | 1,016 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 46 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 0 | 10 |
12 months or more, Fair Value | 1,552 | 489 |
12 months or more, Unrealized Losses, Recognized in OCI | 82 | 46 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 6 | 2 |
Total, Fair Value | 1,686 | 1,505 |
Total, Unrealized Losses, Recognized in OCI | 82 | 92 |
Total, Unrealized Losses, Not Recognized in OCI | $6 | $12 |
Securities_Carrying_Amount_and
Securities - Carrying Amount and Fair Value Securities Held to Maturity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | $561 | |
Over Five Years Through Ten Years, Carrying Amount | 893 | |
Over Ten Years, Carrying Amount | 6,837 | |
Total securities held to maturity, carrying amount | 8,291 | 6,509 |
Over One Year Through Five Years, Fair Value | 565 | |
Over Five Years Through Ten Years, Fair Value | 936 | |
Over Ten Years, Fair Value | 6,911 | |
Total securities held to maturity, Fair Value | 8,412 | 6,439 |
U.S. Treasury | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 486 | |
Over Five Years Through Ten Years, Carrying Amount | 0 | |
Over Ten Years, Carrying Amount | 0 | |
Total securities held to maturity, carrying amount | 486 | |
Over One Year Through Five Years, Fair Value | 489 | |
Over Five Years Through Ten Years, Fair Value | 0 | |
Over Ten Years, Fair Value | 0 | |
Total securities held to maturity, Fair Value | 489 | |
U.S. government-sponsored agencies | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 25 | |
Over Five Years Through Ten Years, Carrying Amount | 100 | |
Over Ten Years, Carrying Amount | 0 | |
Total securities held to maturity, carrying amount | 125 | |
Over One Year Through Five Years, Fair Value | 25 | |
Over Five Years Through Ten Years, Fair Value | 100 | |
Over Ten Years, Fair Value | 0 | |
Total securities held to maturity, Fair Value | 125 | |
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 1 | |
Over Five Years Through Ten Years, Carrying Amount | 0 | |
Over Ten Years, Carrying Amount | 5,941 | |
Total securities held to maturity, carrying amount | 5,942 | 4,995 |
Over One Year Through Five Years, Fair Value | 1 | |
Over Five Years Through Ten Years, Fair Value | 0 | |
Over Ten Years, Fair Value | 6,012 | |
Total securities held to maturity, Fair Value | 6,013 | 4,934 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 49 | |
Over Five Years Through Ten Years, Carrying Amount | 793 | |
Over Ten Years, Carrying Amount | 896 | |
Total securities held to maturity, carrying amount | 1,738 | 1,514 |
Over One Year Through Five Years, Fair Value | 50 | |
Over Five Years Through Ten Years, Fair Value | 836 | |
Over Ten Years, Fair Value | 899 | |
Total securities held to maturity, Fair Value | $1,785 | $1,505 |
Securities_Securities_Pledged_
Securities - Securities Pledged as Collateral (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Securities Pledged as Collateral | ||
Securities available for sale pledged as collateral | $7,500,000,000 | |
Borrowings | ||
Securities Pledged as Collateral | ||
Securities available for sale pledged as collateral | 600,000,000 | |
Derivative | ||
Securities Pledged as Collateral | ||
Securities available for sale pledged as collateral | 200,000,000 | |
Public and trust deposits | ||
Securities Pledged as Collateral | ||
Securities available for sale pledged as collateral | 6,700,000,000 | |
Permitted by contract to sell or repledge | 61,000,000 | 10,000,000 |
Repledged to secure public agency or bankruptcy deposits and to cover short sales | 0 | 0 |
Securities given as collateral for repurchase agreements | $69,000,000 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses - Outstanding Balance of Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | $76,279 | $67,206 | ||
Purchased credit-impaired loans | 525 | 1,106 | ||
Total loans held for investment | 76,804 | 68,312 | ||
Allowance for loan losses | -537 | -568 | -653 | -764 |
Loans held for investment, net | 76,267 | 67,744 | ||
Loans covered under a loss share agreement with FDIC | 126 | 251 | ||
Covered loans not accounted for under accounting guidance for loans acquired with deteriorated credit quality | 9 | 15 | ||
Unamortized discounts and premiums and deferred fees and costs | 151 | 88 | ||
Commercial portfolio | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 44,185 | 38,379 | ||
Total loans held for investment | 44,185 | 38,379 | ||
Allowance for loan losses | -465 | -421 | -418 | -474 |
Commercial portfolio | Commercial and industrial | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 27,623 | 23,528 | ||
Commercial portfolio | Commercial mortgage | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 14,016 | 13,092 | ||
Commercial portfolio | Construction | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 1,746 | 905 | ||
Commercial portfolio | Lease financing | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 800 | 854 | ||
Consumer portfolio | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 32,094 | 28,827 | ||
Total loans held for investment | 32,094 | 28,827 | ||
Allowance for loan losses | -49 | -69 | -124 | -138 |
Consumer portfolio | Residential mortgage | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | 28,977 | 25,547 | ||
Consumer portfolio | Home equity and other consumer loans | ||||
Loans disclosures | ||||
Loans excluding purchased credit-impaired loans | $3,117 | $3,280 |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses - Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | $568 | $653 | $764 |
(Reversal of) provision for loan losses | -18 | -44 | 28 |
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification | 2 | -1 | -3 |
Decrease in allowance covered by FDIC indemnification | -8 | -5 | |
Other | -3 | ||
Loans charged off | -50 | -77 | -196 |
Recoveries of loans previously charged off | 38 | 45 | 65 |
Allowance for loan losses, end of period | 537 | 568 | 653 |
Commercial portfolio | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | 421 | 418 | 474 |
(Reversal of) provision for loan losses | 52 | 18 | -25 |
Other | -3 | ||
Loans charged off | -38 | -44 | -88 |
Recoveries of loans previously charged off | 33 | 29 | 57 |
Allowance for loan losses, end of period | 465 | 421 | 418 |
Consumer portfolio | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | 69 | 124 | 138 |
(Reversal of) provision for loan losses | -13 | -29 | 78 |
Loans charged off | -11 | -30 | -95 |
Recoveries of loans previously charged off | 4 | 4 | 3 |
Allowance for loan losses, end of period | 49 | 69 | 124 |
Purchased credit-impaired loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | 1 | 1 | 17 |
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification | 2 | -1 | -3 |
Decrease in allowance covered by FDIC indemnification | -8 | -5 | |
Loans charged off | -1 | -3 | -13 |
Recoveries of loans previously charged off | 1 | 12 | 5 |
Allowance for loan losses, end of period | 3 | 1 | 1 |
Unallocated portfolio | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan losses, beginning of period | 77 | 110 | 135 |
(Reversal of) provision for loan losses | -57 | -33 | -25 |
Allowance for loan losses, end of period | $20 | $77 | $110 |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses - Loan Losses and Related Loan Balances by Portfolio Segment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | $34 | $39 | ||
Collectively evaluated for impairment | 500 | 528 | ||
Purchased credit-impaired loans | 3 | 1 | ||
Total allowance for loan losses | 537 | 568 | 653 | 764 |
Loans held for investment: | ||||
Individually evaluated for impairment | 503 | 608 | ||
Collectively evaluated for impairment | 75,777 | 66,601 | ||
Purchased credit-impaired loans | 524 | 1,103 | ||
Total loans held for investment | 76,804 | 68,312 | ||
Commercial portfolio | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 18 | 19 | ||
Collectively evaluated for impairment | 447 | 402 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total allowance for loan losses | 465 | 421 | 418 | 474 |
Loans held for investment: | ||||
Individually evaluated for impairment | 164 | 266 | ||
Collectively evaluated for impairment | 44,021 | 38,113 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total loans held for investment | 44,185 | 38,379 | ||
Consumer portfolio | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 16 | 20 | ||
Collectively evaluated for impairment | 33 | 49 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total allowance for loan losses | 49 | 69 | 124 | 138 |
Loans held for investment: | ||||
Individually evaluated for impairment | 338 | 339 | ||
Collectively evaluated for impairment | 31,756 | 28,488 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total loans held for investment | 32,094 | 28,827 | ||
Purchased credit-impaired loans | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit-impaired loans | 3 | 1 | ||
Total allowance for loan losses | 3 | 1 | 1 | 17 |
Loans held for investment: | ||||
Individually evaluated for impairment | 1 | 3 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit-impaired loans | 524 | 1,103 | ||
Total loans held for investment | 525 | 1,106 | ||
Unallocated portfolio | ||||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 20 | 77 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total allowance for loan losses | 20 | 77 | 110 | 135 |
Loans held for investment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit-impaired loans | 0 | 0 | ||
Total loans held for investment | $0 | $0 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses - Nonaccural Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Nonaccrual loans | ||
Nonaccrual loans | $375 | $442 |
Nonaccrual loans, before purchased credit-impaired loans | 366 | 427 |
Troubled debt restructured loans that continue to accrue interest | 283 | 367 |
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above) | 184 | 225 |
Commercial portfolio | ||
Nonaccrual loans | ||
Nonaccrual loans | 95 | 95 |
Commercial portfolio | Commercial and industrial | ||
Nonaccrual loans | ||
Nonaccrual loans | 55 | 44 |
Commercial portfolio | Commercial mortgage | ||
Nonaccrual loans | ||
Nonaccrual loans | 40 | 51 |
Consumer portfolio | ||
Nonaccrual loans | ||
Nonaccrual loans | 271 | 332 |
Consumer portfolio | Residential mortgage | ||
Nonaccrual loans | ||
Nonaccrual loans | 231 | 286 |
Consumer portfolio | Home equity and other consumer loans | ||
Nonaccrual loans | ||
Nonaccrual loans | 40 | 46 |
Purchased credit-impaired loans | ||
Nonaccrual loans | ||
Nonaccrual loans | $9 | $15 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses - Balance of Loans Held for Investment, by Class (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Aging of loans | ||
Current | $76,013 | $66,785 |
30 to 89 Days Past Due | 174 | 285 |
90 Days or More Past Due | 92 | 136 |
Total Past Due | 266 | 421 |
Total loans held for investment, before purchased credit-impaired loans | 76,279 | 67,206 |
Total loans 90 days or more past due and still accruing | 3 | 5 |
Commercial portfolio | ||
Aging of loans | ||
Current | 44,127 | 38,205 |
30 to 89 Days Past Due | 42 | 148 |
90 Days or More Past Due | 16 | 26 |
Total Past Due | 58 | 174 |
Total loans held for investment, before purchased credit-impaired loans | 44,185 | 38,379 |
Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Current | 28,392 | 24,310 |
30 to 89 Days Past Due | 19 | 66 |
90 Days or More Past Due | 12 | 6 |
Total Past Due | 31 | 72 |
Total loans held for investment, before purchased credit-impaired loans | 28,423 | 24,382 |
Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Current | 13,991 | 13,004 |
30 to 89 Days Past Due | 21 | 68 |
90 Days or More Past Due | 4 | 20 |
Total Past Due | 25 | 88 |
Total loans held for investment, before purchased credit-impaired loans | 14,016 | 13,092 |
Commercial portfolio | Construction | ||
Aging of loans | ||
Current | 1,744 | 891 |
30 to 89 Days Past Due | 2 | 14 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 2 | 14 |
Total loans held for investment, before purchased credit-impaired loans | 1,746 | 905 |
Consumer portfolio | ||
Aging of loans | ||
Current | 31,886 | 28,580 |
30 to 89 Days Past Due | 132 | 137 |
90 Days or More Past Due | 76 | 110 |
Total Past Due | 208 | 247 |
Total loans held for investment, before purchased credit-impaired loans | 32,094 | 28,827 |
Consumer portfolio | Residential mortgage | ||
Aging of loans | ||
Current | 28,802 | 25,342 |
30 to 89 Days Past Due | 112 | 114 |
90 Days or More Past Due | 63 | 91 |
Total Past Due | 175 | 205 |
Total loans held for investment, before purchased credit-impaired loans | 28,977 | 25,547 |
Consumer portfolio | Home equity and other consumer loans | ||
Aging of loans | ||
Current | 3,084 | 3,238 |
30 to 89 Days Past Due | 20 | 23 |
90 Days or More Past Due | 13 | 19 |
Total Past Due | 33 | 42 |
Total loans held for investment, before purchased credit-impaired loans | 3,117 | 3,280 |
Purchased credit-impaired loans | ||
Aging of loans | ||
Total loans 90 days or more past due and still accruing | $47 | $124 |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses - Purchased Credit-Impaired Loans Segment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Aging of loans | ||
Loans covered under a loss share agreement with FDIC | $126 | $251 |
Commercial Loan | ||
Aging of loans | ||
Loans covered under a loss share agreement with FDIC | 98 | 213 |
Total loans | 44,066 | 38,674 |
Commercial portfolio | ||
Aging of loans | ||
Total loans | 43,863 | 38,060 |
Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Total loans | 28,283 | 24,235 |
Commercial portfolio | Construction | ||
Aging of loans | ||
Total loans | 1,747 | 893 |
Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Total loans | 13,833 | 12,932 |
Purchased credit-impaired loans | Commercial Loan | ||
Aging of loans | ||
Total loans | 203 | 614 |
Pass | Commercial Loan | ||
Aging of loans | ||
Total loans | 42,759 | 36,835 |
Pass | Commercial portfolio | ||
Aging of loans | ||
Total loans | 42,722 | 36,787 |
Pass | Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Total loans | 27,471 | 23,346 |
Pass | Commercial portfolio | Construction | ||
Aging of loans | ||
Total loans | 1,729 | 879 |
Pass | Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Total loans | 13,522 | 12,562 |
Pass | Purchased credit-impaired loans | Commercial Loan | ||
Aging of loans | ||
Total loans | 37 | 48 |
Special Mention | Commercial Loan | ||
Aging of loans | ||
Total loans | 636 | 936 |
Special Mention | Commercial portfolio | ||
Aging of loans | ||
Total loans | 598 | 732 |
Special Mention | Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Total loans | 452 | 576 |
Special Mention | Commercial portfolio | Construction | ||
Aging of loans | ||
Total loans | 18 | 14 |
Special Mention | Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Total loans | 128 | 142 |
Special Mention | Purchased credit-impaired loans | Commercial Loan | ||
Aging of loans | ||
Total loans | 38 | 204 |
Classified | Commercial Loan | ||
Aging of loans | ||
Total loans | 671 | 903 |
Classified | Commercial portfolio | ||
Aging of loans | ||
Total loans | 543 | 541 |
Classified | Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Total loans | 360 | 313 |
Classified | Commercial portfolio | Construction | ||
Aging of loans | ||
Total loans | 0 | 0 |
Classified | Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Total loans | 183 | 228 |
Classified | Purchased credit-impaired loans | Commercial Loan | ||
Aging of loans | ||
Total loans | $128 | $362 |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Losses - Loans in Consumer Portfolio Segment and Purchased Credit Impaired Loans Segment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Consumer portfolio loans | ||
Nonaccrual | $375 | $442 |
Total loans held for investment, before purchased credit-impaired loans | 76,279 | 67,206 |
Consumer | ||
Consumer portfolio loans | ||
Accrual | 32,019 | 28,737 |
Nonaccrual | 271 | 332 |
Total loans held for investment, before purchased credit-impaired loans | 32,290 | 29,069 |
Loans not covered | 28 | 38 |
Consumer portfolio | ||
Consumer portfolio loans | ||
Accrual | 31,823 | 28,495 |
Nonaccrual | 271 | 332 |
Total loans held for investment, before purchased credit-impaired loans | 32,094 | 28,827 |
Consumer portfolio | Residential mortgage | ||
Consumer portfolio loans | ||
Accrual | 28,746 | 25,261 |
Nonaccrual | 231 | 286 |
Total loans held for investment, before purchased credit-impaired loans | 28,977 | 25,547 |
Consumer portfolio | Home equity and other consumer loans | ||
Consumer portfolio loans | ||
Accrual | 3,077 | 3,234 |
Nonaccrual | 40 | 46 |
Total loans held for investment, before purchased credit-impaired loans | 3,117 | 3,280 |
Purchased credit-impaired loans | ||
Consumer portfolio loans | ||
Nonaccrual | 9 | 15 |
Purchased credit-impaired loans | Consumer | ||
Consumer portfolio loans | ||
Accrual | 196 | 242 |
Nonaccrual | 0 | 0 |
Total loans held for investment, before purchased credit-impaired loans | $196 | $242 |
Loans_and_Allowance_for_Loan_L9
Loans and Allowance for Loan Losses - FICO Scores (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Consumer | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $31,958 | $28,821 |
Percentage of total | 100.00% | 100.00% |
Consumer | FICO Score 720 and Above | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 24,787 | 21,991 |
Percentage of total | 77.00% | 76.00% |
Consumer | FICO Score Below 720 | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 6,582 | 6,275 |
Percentage of total | 21.00% | 22.00% |
Consumer | No FICO Available | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 589 | 555 |
Percentage of total | 2.00% | 2.00% |
Consumer portfolio | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 31,761 | 28,577 |
Consumer portfolio | FICO Score 720 and Above | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 24,714 | 21,897 |
Consumer portfolio | FICO Score Below 720 | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 6,471 | 6,140 |
Consumer portfolio | No FICO Available | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 576 | 540 |
Consumer portfolio | Residential mortgage | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 28,715 | 25,374 |
Consumer portfolio | Residential mortgage | FICO Score 720 and Above | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 22,505 | 19,614 |
Consumer portfolio | Residential mortgage | FICO Score Below 720 | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 5,717 | 5,301 |
Consumer portfolio | Residential mortgage | No FICO Available | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 493 | 459 |
Consumer portfolio | Home equity and other consumer loans | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 3,046 | 3,203 |
Consumer portfolio | Home equity and other consumer loans | FICO Score 720 and Above | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 2,209 | 2,283 |
Consumer portfolio | Home equity and other consumer loans | FICO Score Below 720 | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 754 | 839 |
Consumer portfolio | Home equity and other consumer loans | No FICO Available | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 83 | 81 |
Purchased credit-impaired loans | Consumer | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 197 | 244 |
Purchased credit-impaired loans | Consumer | FICO Score 720 and Above | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 73 | 94 |
Purchased credit-impaired loans | Consumer | FICO Score Below 720 | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 111 | 135 |
Purchased credit-impaired loans | Consumer | No FICO Available | ||
Credit quality of consumer loans | ||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $13 | $15 |
Recovered_Sheet1
Loans and Allowance for Loan Losses - LTV Ratios (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Consumer | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | $31,712 | $28,717 |
Percentage of total loans categorized by LTV ratio | 100.00% | 100.00% |
Consumer | Less than or Equal to 80 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 29,657 | 26,257 |
Percentage of total loans categorized by LTV ratio | 94.00% | 91.00% |
Consumer | Greater than 80 and Less than 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 1,745 | 1,890 |
Percentage of total loans categorized by LTV ratio | 5.00% | 7.00% |
Consumer | Greater than or Equal to 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 228 | 465 |
Percentage of total loans categorized by LTV ratio | 1.00% | 2.00% |
Consumer | No LTV Available | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 82 | 105 |
Percentage of total loans categorized by LTV ratio | 0.00% | 0.00% |
Consumer portfolio | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 31,517 | 28,477 |
Consumer portfolio | Less than or Equal to 80 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 29,526 | 26,105 |
Consumer portfolio | Greater than 80 and Less than 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 1,700 | 1,833 |
Consumer portfolio | Greater than or Equal to 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 210 | 434 |
Consumer portfolio | No LTV Available | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 81 | 105 |
Consumer portfolio | Residential mortgage | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 28,715 | 25,374 |
Consumer portfolio | Residential mortgage | Less than or Equal to 80 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 27,162 | 23,613 |
Consumer portfolio | Residential mortgage | Greater than 80 and Less than 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 1,430 | 1,477 |
Consumer portfolio | Residential mortgage | Greater than or Equal to 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 92 | 231 |
Consumer portfolio | Residential mortgage | No LTV Available | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 31 | 53 |
Consumer portfolio | Home Equity loans | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 2,802 | 3,103 |
Consumer portfolio | Home Equity loans | Less than or Equal to 80 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 2,364 | 2,492 |
Consumer portfolio | Home Equity loans | Greater than 80 and Less than 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 270 | 356 |
Consumer portfolio | Home Equity loans | Greater than or Equal to 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 118 | 203 |
Consumer portfolio | Home Equity loans | No LTV Available | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 50 | 52 |
Purchased credit-impaired loans | Consumer | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 195 | 240 |
Purchased credit-impaired loans | Consumer | Less than or Equal to 80 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 131 | 152 |
Purchased credit-impaired loans | Consumer | Greater than 80 and Less than 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 45 | 57 |
Purchased credit-impaired loans | Consumer | Greater than or Equal to 100 Percent | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | 18 | 31 |
Purchased credit-impaired loans | Consumer | No LTV Available | ||
Credit quality of consumer loans | ||
Loans categorized by LTV ratio | $1 | $0 |
Recovered_Sheet2
Loans and Allowance for Loan Losses - Summary of Recorded Investment in TDR's (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pre- and Post - modification recorded investments | ||
Commitment to lend additional funds to borrowers with loan modifications classified as TDRs | $33 | $43 |
Total excluding purchased credit-impaired loans | 466 | 589 |
TDRs covered by FDIC loss share agreements | 1 | 3 |
TDR modifications charge-offs | 2 | |
Commercial portfolio | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 128 | 250 |
Commercial portfolio | Commercial and industrial | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 100 | 212 |
Commercial portfolio | Commercial mortgage | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 28 | 38 |
Consumer portfolio | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 338 | 339 |
Consumer portfolio | Residential mortgage | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 308 | 315 |
Consumer portfolio | Home equity and other consumer loans | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | $30 | $24 |
Recovered_Sheet3
Loans and Allowance for Loan Losses - Pre and Post Modification Outstanding Recorded Investment Amounts of TDRs (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | $173,000,000 | $344,000,000 |
Post-Modification Outstanding Recorded Investment | 172,000,000 | 338,000,000 |
TDRS covered by FDIC loss share agreements with pre-modification balance | 4,000,000 | 0 |
TDRS covered by FDIC loss share agreements with post-modification balance | 4,000,000 | |
Commercial portfolio | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 134,000,000 | 231,000,000 |
Post-Modification Outstanding Recorded Investment | 134,000,000 | 227,000,000 |
Commercial portfolio | Commercial and industrial | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 111,000,000 | 161,000,000 |
Post-Modification Outstanding Recorded Investment | 111,000,000 | 158,000,000 |
Commercial portfolio | Commercial mortgage | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 23,000,000 | 70,000,000 |
Post-Modification Outstanding Recorded Investment | 23,000,000 | 69,000,000 |
Consumer portfolio | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 39,000,000 | 113,000,000 |
Post-Modification Outstanding Recorded Investment | 38,000,000 | 111,000,000 |
Consumer portfolio | Residential mortgage | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 28,000,000 | 104,000,000 |
Post-Modification Outstanding Recorded Investment | 27,000,000 | 103,000,000 |
Consumer portfolio | Home equity and other consumer loans | ||
Pre- and Post - modification recorded investments | ||
Pre-Modification Outstanding Recorded Investment | 11,000,000 | 9,000,000 |
Post-Modification Outstanding Recorded Investment | $11,000,000 | $8,000,000 |
Recovered_Sheet4
Loans and Allowance for Loan Losses - Recorded Investment Amounts of TDRs at Date of Default (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | $27 | $30 |
Minimum defaulting period | 60 days | |
Commercial portfolio | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | 18 | 12 |
Commercial portfolio | Commercial and industrial | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | 10 | 10 |
Commercial portfolio | Commercial mortgage | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | 8 | 2 |
Consumer portfolio | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | 9 | 18 |
Consumer portfolio | Residential mortgage | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | 8 | 16 |
Consumer portfolio | Home equity and other consumer loans | ||
Pre- and Post - modification recorded investments | ||
Total troubled debt restructured loans at date of default | $1 | $2 |
Recovered_Sheet5
Loans and Allowance for Loan Losses - Impaired Loans by Class (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Loan impairment | ||
Recorded investment with an allowance | $330 | $376 |
Recorded investment without an allowance | 173 | 232 |
Impaired loans | 503 | 608 |
Allowance for impaired loans | 34 | 39 |
Unpaid principal balance with an allowance | 377 | 399 |
Unpaid principal balance without an allowance | 208 | 277 |
Commercial portfolio | ||
Loan impairment | ||
Recorded investment with an allowance | 126 | 150 |
Recorded investment without an allowance | 38 | 116 |
Impaired loans | 164 | 266 |
Allowance for impaired loans | 18 | 19 |
Unpaid principal balance with an allowance | 159 | 157 |
Unpaid principal balance without an allowance | 42 | 129 |
Commercial portfolio | Commercial and industrial | ||
Loan impairment | ||
Recorded investment with an allowance | 89 | 117 |
Recorded investment without an allowance | 35 | 104 |
Impaired loans | 124 | 221 |
Allowance for impaired loans | 14 | 16 |
Unpaid principal balance with an allowance | 120 | 121 |
Unpaid principal balance without an allowance | 39 | 114 |
Commercial portfolio | Commercial mortgage | ||
Loan impairment | ||
Recorded investment with an allowance | 37 | 33 |
Recorded investment without an allowance | 3 | 12 |
Impaired loans | 40 | 45 |
Allowance for impaired loans | 4 | 3 |
Unpaid principal balance with an allowance | 39 | 36 |
Unpaid principal balance without an allowance | 3 | 15 |
Consumer portfolio | ||
Loan impairment | ||
Recorded investment with an allowance | 204 | 224 |
Recorded investment without an allowance | 134 | 115 |
Impaired loans | 338 | 339 |
Allowance for impaired loans | 16 | 20 |
Unpaid principal balance with an allowance | 218 | 240 |
Unpaid principal balance without an allowance | 164 | 142 |
Consumer portfolio | Residential mortgage | ||
Loan impairment | ||
Recorded investment with an allowance | 198 | 220 |
Recorded investment without an allowance | 110 | 95 |
Impaired loans | 308 | 315 |
Allowance for impaired loans | 16 | 20 |
Unpaid principal balance with an allowance | 211 | 236 |
Unpaid principal balance without an allowance | 127 | 108 |
Consumer portfolio | Home equity and other consumer loans | ||
Loan impairment | ||
Recorded investment with an allowance | 6 | 4 |
Recorded investment without an allowance | 24 | 20 |
Impaired loans | 30 | 24 |
Allowance for impaired loans | 0 | 0 |
Unpaid principal balance with an allowance | 7 | 4 |
Unpaid principal balance without an allowance | 37 | 34 |
Total, excluding purchased credit impaired loans | ||
Loan impairment | ||
Recorded investment with an allowance | 330 | 374 |
Recorded investment without an allowance | 172 | 231 |
Impaired loans | 502 | 605 |
Allowance for impaired loans | 34 | 39 |
Unpaid principal balance with an allowance | 377 | 397 |
Unpaid principal balance without an allowance | 206 | 271 |
Purchased credit-impaired loans | ||
Loan impairment | ||
Recorded investment with an allowance | 0 | 2 |
Recorded investment without an allowance | 1 | 1 |
Impaired loans | 1 | 3 |
Allowance for impaired loans | 0 | 0 |
Unpaid principal balance with an allowance | 0 | 2 |
Unpaid principal balance without an allowance | $2 | $6 |
Recovered_Sheet6
Loans and Allowance for Loan Losses - Average Recorded Investment in Impaired Loans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loan impairment | |||
Average Recorded Investment | $563 | $623 | $588 |
Recognized Interest Income | 19 | 37 | 25 |
Commercial portfolio | |||
Loan impairment | |||
Average Recorded Investment | 224 | 304 | 352 |
Recognized Interest Income | 7 | 26 | 15 |
Allowance for loan losses: | |||
Transfer of loans from held for investment to held for sale | 203 | 246 | |
Loans receivable sold during the period | 196 | 254 | |
Commercial portfolio | Commercial and industrial | |||
Loan impairment | |||
Average Recorded Investment | 188 | 243 | 201 |
Recognized Interest Income | 5 | 14 | 12 |
Commercial portfolio | Commercial mortgage | |||
Loan impairment | |||
Average Recorded Investment | 36 | 53 | 107 |
Recognized Interest Income | 2 | 9 | 1 |
Commercial portfolio | Construction | |||
Loan impairment | |||
Average Recorded Investment | 0 | 8 | 44 |
Recognized Interest Income | 0 | 3 | 2 |
Consumer portfolio | |||
Loan impairment | |||
Average Recorded Investment | 337 | 315 | 228 |
Recognized Interest Income | 12 | 11 | 9 |
Consumer portfolio | Residential mortgage | |||
Loan impairment | |||
Average Recorded Investment | 310 | 293 | 221 |
Recognized Interest Income | 10 | 10 | 8 |
Consumer portfolio | Home equity and other consumer loans | |||
Loan impairment | |||
Average Recorded Investment | 27 | 22 | 7 |
Recognized Interest Income | 2 | 1 | 1 |
Total, excluding purchased credit impaired loans | |||
Loan impairment | |||
Average Recorded Investment | 561 | 619 | 580 |
Recognized Interest Income | 19 | 37 | 24 |
Purchased credit-impaired loans | |||
Loan impairment | |||
Average Recorded Investment | 2 | 4 | 8 |
Recognized Interest Income | $0 | $0 | $1 |
Recovered_Sheet7
Loans and Allowance for Loan Losses - Outstanding Balance and Carrying Amounts of Purchased Credit Impaired Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ||
Total outstanding balance | $889 | $1,733 |
Carrying amount | $516 | $1,091 |
Recovered_Sheet8
Loans and Allowance for Loan Losses - Accretable Yield for Purchased Credit-Impaired Loans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield, beginning of period | $378 | $590 | $424 |
Additions | 0 | 31 | 171 |
Accretion | -268 | -336 | -297 |
Reclassifications from nonaccretable difference during the period | 178 | 93 | 292 |
Accretable yield, end of period | 288 | 378 | 590 |
Concentrations of Credit Risk | |||
Loans | 76,804 | 68,312 | |
Loans Receivable | Credit Risk | Real estate | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | 16,000 | ||
Additional unfunded commitments to extend credit | 6,000 | ||
Loans Receivable | Credit Risk | Financial and insurance | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | 5,000 | ||
Additional unfunded commitments to extend credit | 5,000 | ||
Loans Receivable | Credit Risk | Power and utilities | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | 5,000 | ||
Additional unfunded commitments to extend credit | 9,000 | ||
Loans Receivable | Credit Risk | Oil and gas | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | 4,000 | ||
Additional unfunded commitments to extend credit | 4,000 | ||
Loans Receivable | Credit Risk | Manufacturing | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | 4,000 | ||
Additional unfunded commitments to extend credit | 3,000 | ||
Loans Receivable | Credit Risk | Residential mortgage loans | Unfunded Loan Commitment | |||
Concentrations of Credit Risk | |||
Loans | $29,000 |
Premises_and_Equipment_Premise
Premises and Equipment - Premises and Equipment Carried at Cost (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Premises and Equipment | ||
Cost | $1,732 | $1,743 |
Accumulated Depreciation and Amortization | -1,111 | -1,055 |
Net Book Value | 621 | 688 |
Land | ||
Premises and Equipment | ||
Cost | 148 | 154 |
Accumulated Depreciation and Amortization | 0 | 0 |
Net Book Value | 148 | 154 |
Premises | ||
Premises and Equipment | ||
Cost | 601 | 621 |
Accumulated Depreciation and Amortization | -334 | -328 |
Net Book Value | 267 | 293 |
Leasehold improvements | ||
Premises and Equipment | ||
Cost | 301 | 298 |
Accumulated Depreciation and Amortization | -230 | -218 |
Net Book Value | 71 | 80 |
Furniture, fixtures and equipment | ||
Premises and Equipment | ||
Cost | 682 | 670 |
Accumulated Depreciation and Amortization | -547 | -509 |
Net Book Value | $135 | $161 |
Premises_and_Equipment_Rental_
Premises and Equipment - Rental, Depreciation, and Amortization Expenses (Details) (Premises and equipment, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premises and equipment | |||
Rental, depreciation and amortization expenses | |||
Rental expense of premises | $113 | $111 | $85 |
Less: rental income | 10 | 9 | 8 |
Net rental expense | 103 | 102 | 77 |
Depreciation and amortization of premises and equipment | $103 | $110 | $102 |
Premises_and_Equipment_Future_
Premises and Equipment - Future minimum lease payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Premises and Equipment and Other Assets | |
2015 | $130 |
2016 | 131 |
2017 | 118 |
2018 | 103 |
2019 | 85 |
Thereafter | 501 |
Total minimum lease payments | 1,068 |
Minimum rental income due in the future under subleases | $105 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Premises and Equipment and Other Assets | ||
Liability for asset retirement obligations | $6 | $6 |
Premises_and_Equipment_Other_A
Premises and Equipment - Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets | ||
Other investments | $2,711 | $2,211 |
Prepaid expenses | 145 | 509 |
Intangible assets | 240 | 290 |
OREO | 36 | 57 |
Other | 1,553 | 1,787 |
Total other assets | $4,685 | $4,854 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Details) (USD $) | 0 Months Ended | |||||
Oct. 01, 2014 | Apr. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Goodwill and Other Intangible Assets | ||||||
Goodwill | $3,225,000,000 | $3,228,000,000 | $2,942,000,000 | |||
Goodwill impairment recognized | 0 | 0 | ||||
PB Capital Commercial Real Estate Division | ||||||
Goodwill and Other Intangible Assets | ||||||
Goodwill | 238,000,000 | 238,000,000 | ||||
PB Capital Commercial Real Estate Division | Maximum | ||||||
Goodwill and Other Intangible Assets | ||||||
Intangible assets | 1,000,000 | |||||
First Bank Association Bank Services | ||||||
Goodwill and Other Intangible Assets | ||||||
Goodwill | $30,000,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill rollforward | ||
Goodwill, beginning of year | $3,228 | $2,942 |
Net change from business combinations | -3 | 286 |
Goodwill, end of year | 3,225 | 3,228 |
Retail Banking and Wealth Markets | ||
Goodwill rollforward | ||
Goodwill, end of year | 1,524 | 1,527 |
Commercial Banking | ||
Goodwill rollforward | ||
Goodwill, end of year | 1,034 | 1,034 |
US Corporate Banking | ||
Goodwill rollforward | ||
Goodwill, end of year | 149 | 149 |
Transaction Banking | ||
Goodwill rollforward | ||
Goodwill, end of year | 251 | 251 |
Investment Banking and Markets | ||
Goodwill rollforward | ||
Goodwill, end of year | 253 | 253 |
Asian Corporate Banking | ||
Goodwill rollforward | ||
Goodwill, end of year | $14 | $14 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Identifiable Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets | |||
Amortization Expense | $53 | $65 | $81 |
Gross Carrying Amount | 768 | 869 | |
Accumulated Amortization | -528 | -579 | |
Net Carrying Amount | 240 | 290 | |
Core deposit intangibles | |||
Intangible Assets | |||
Gross Carrying Amount | 565 | 667 | |
Accumulated Amortization | -468 | -530 | |
Net Carrying Amount | 97 | 137 | |
Trade names | |||
Intangible Assets | |||
Gross Carrying Amount | 114 | 114 | |
Accumulated Amortization | -21 | -16 | |
Net Carrying Amount | 93 | 98 | |
Customer Relationships | |||
Intangible Assets | |||
Gross Carrying Amount | 60 | 63 | |
Accumulated Amortization | -25 | -22 | |
Net Carrying Amount | 35 | 41 | |
Other intangibles assets | |||
Intangible Assets | |||
Gross Carrying Amount | 29 | 25 | |
Accumulated Amortization | -14 | -11 | |
Net Carrying Amount | $15 | $14 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule Of Estimated Future Amortization Expense | ||
2015 | $42 | |
2016 | 29 | |
2017 | 23 | |
2018 | 15 | |
2019 | 13 | |
Thereafter | 118 | |
Total estimated amortization expense | 240 | 290 |
Core deposit intangibles | ||
Schedule Of Estimated Future Amortization Expense | ||
2015 | 30 | |
2016 | 18 | |
2017 | 14 | |
2018 | 7 | |
2019 | 6 | |
Thereafter | 22 | |
Total estimated amortization expense | 97 | 137 |
Trade names | ||
Schedule Of Estimated Future Amortization Expense | ||
2015 | 3 | |
2016 | 3 | |
2017 | 3 | |
2018 | 3 | |
2019 | 3 | |
Thereafter | 78 | |
Total estimated amortization expense | 93 | 98 |
Customer Relationships | ||
Schedule Of Estimated Future Amortization Expense | ||
2015 | 5 | |
2016 | 5 | |
2017 | 4 | |
2018 | 4 | |
2019 | 3 | |
Thereafter | 14 | |
Total estimated amortization expense | 35 | 41 |
Other | ||
Schedule Of Estimated Future Amortization Expense | ||
2015 | 4 | |
2016 | 3 | |
2017 | 2 | |
2018 | 1 | |
2019 | 1 | |
Thereafter | 4 | |
Total estimated amortization expense | $15 | $14 |
Variable_Interest_Entities_Ass
Variable Interest Entities - Assets and Liabilities of Consolidated VIEs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Assets | ||
Interest Bearing Deposits in Banks | $3,930,000,000 | $4,329,000,000 |
Loans Held for Investment, net | 76,267,000,000 | 67,744,000,000 |
Other assets | 4,685,000,000 | 4,854,000,000 |
Consolidated Liabilities | ||
Other liabilities | 1,889,000,000 | 1,675,000,000 |
Long-term debt | 6,972,000,000 | 6,547,000,000 |
Consolidated VIEs | ||
Consolidated Assets | ||
Interest Bearing Deposits in Banks | 19,000,000 | 10,000,000 |
Loans Held for Investment, net | 653,000,000 | 750,000,000 |
Other assets | 377,000,000 | 270,000,000 |
Total assets | 1,049,000,000 | 1,030,000,000 |
Consolidated Liabilities | ||
Other liabilities | 80,000,000 | |
Long-term debt | 4,000,000 | |
Total Liabilities | 80,000,000 | 4,000,000 |
Consolidated VIEs | LIHC investments | ||
Consolidated Assets | ||
Interest Bearing Deposits in Banks | 9,000,000 | 9,000,000 |
Loans Held for Investment, net | 0 | 0 |
Other assets | 230,000,000 | 262,000,000 |
Total assets | 239,000,000 | 271,000,000 |
Consolidated Liabilities | ||
Other liabilities | 0 | |
Long-term debt | 4,000,000 | |
Total Liabilities | 0 | 4,000,000 |
Number of LIHC investment fund | 2 | |
Consolidated VIEs | Leasing investments | ||
Consolidated Assets | ||
Interest Bearing Deposits in Banks | 10,000,000 | 1,000,000 |
Loans Held for Investment, net | 653,000,000 | 750,000,000 |
Other assets | 147,000,000 | 8,000,000 |
Total assets | 810,000,000 | 759,000,000 |
Consolidated Liabilities | ||
Other liabilities | 80,000,000 | |
Long-term debt | 0 | |
Total Liabilities | $80,000,000 | $0 |
Variable_Interest_Entities_Car
Variable Interest Entities - Carrying Amounts related to Unconsolidated VIEs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Unconsolidated Assets | ||
Securities available for sale | $13,724 | $15,817 |
Loans Held for Investment | 76,804 | 68,312 |
Other Assets | 4,685 | 4,854 |
Unconsolidated Liabilities | ||
Other Liabilities | 1,889 | 1,675 |
Unconsolidated VIEs | ||
Unconsolidated Assets | ||
Securities available for sale | 25 | 122 |
Loans Held for Investment | 213 | 173 |
Other Assets | 2,023 | 1,712 |
Total Assets | 2,261 | 2,007 |
Unconsolidated Liabilities | ||
Other Liabilities | 488 | 445 |
Total Liabilities | 488 | 445 |
Maximum Exposure to Loss | 2,279 | 2,007 |
Unconsolidated VIEs | LIHC investments | ||
Unconsolidated Assets | ||
Securities available for sale | 25 | 122 |
Loans Held for Investment | 163 | 158 |
Other Assets | 1,117 | 1,000 |
Total Assets | 1,305 | 1,280 |
Unconsolidated Liabilities | ||
Other Liabilities | 433 | 445 |
Total Liabilities | 433 | 445 |
Maximum Exposure to Loss | 1,305 | 1,280 |
Unconsolidated VIEs | Leasing investments | ||
Unconsolidated Assets | ||
Securities available for sale | 0 | 0 |
Loans Held for Investment | 21 | 0 |
Other Assets | 886 | 700 |
Total Assets | 907 | 700 |
Unconsolidated Liabilities | ||
Other Liabilities | 55 | 0 |
Total Liabilities | 55 | 0 |
Maximum Exposure to Loss | 923 | 700 |
Unconsolidated VIEs | Other investments | ||
Unconsolidated Assets | ||
Securities available for sale | 0 | 0 |
Loans Held for Investment | 29 | 15 |
Other Assets | 20 | 12 |
Total Assets | 49 | 27 |
Unconsolidated Liabilities | ||
Other Liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Maximum Exposure to Loss | $51 | $27 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 |
Deposits [Abstract] | |
Interest bearing time deposits with remaining term of greater than one year | $3,703,000,000 |
Deposits of $100,000 and over | $1,000,000,000 |
Deposits_Schedule_of_Maturitie
Deposits - Schedule of Maturities of Time Deposits (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Deposits [Abstract] | |
Due after one year through two years | $1,570 |
Due after two years through three years | 1,134 |
Due after three years through four years | 812 |
Due after four years through five years | 167 |
Due after five years | 20 |
Total | $3,703 |
Commercial_Paper_and_Other_Sho2
Commercial Paper and Other Short-Term Borrowings - Summary of Commercial Paper and Other Short-Term Borrowings (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commercial Paper and Short-Term Borrowings | ||
Federal funds purchased and securities sold under repurchase agreements, with weighted average interest rates of 0.12% and 0.07% at December 31, 2014 and December 31, 2013 | $111 | $39 |
Commercial paper, with weighted average interest rates of 0.16% and 0.19% at December 31, 2014 and December 31, 2013, respectively | 2,593 | 2,524 |
Total commercial paper and other short-term borrowings | 2,704 | 2,563 |
Federal funds purchased and securities sold under repurchase agreements | ||
Commercial Paper and Short-Term Borrowings | ||
Maximum outstanding at any month end | 329 | 359 |
Average balance during the year | 170 | 263 |
Weighted average interest rate during the year | 0.14% | 0.12% |
Commercial paper | ||
Commercial Paper and Short-Term Borrowings | ||
Maximum outstanding at any month end | 3,322 | 3,655 |
Average balance during the year | 2,542 | 2,393 |
Weighted average interest rate during the year | 0.16% | 0.18% |
Term federal funds purchased | ||
Commercial Paper and Short-Term Borrowings | ||
Maximum outstanding at any month end | 252 | 269 |
Average balance during the year | 43 | 50 |
Weighted average interest rate during the year | 0.14% | 0.15% |
Other borrowed funds | ||
Commercial Paper and Short-Term Borrowings | ||
Maximum outstanding at any month end | 0 | 0 |
Average balance during the year | $54 | $45 |
Weighted average interest rate during the year | 2.06% | 1.71% |
Commercial_Paper_and_Other_Sho3
Commercial Paper and Other Short-Term Borrowings - Additional Information (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Federal funds purchased and securities sold under repurchase agreements | ||
Commercial Paper and Short-Term Borrowings | ||
Weighted average interest rate (as a percent) | 0.12% | 0.07% |
Commercial paper | ||
Commercial Paper and Short-Term Borrowings | ||
Weighted average interest rate (as a percent) | 0.16% | 0.19% |
Commercial_Paper_and_Other_Sho4
Commercial Paper and Other Short-Term Borrowings - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended |
Dec. 31, 2014 | Sep. 30, 2008 | |
Federal funds purchased and securities sold under repurchase agreements | ||
Standby Letters of Credit | ||
Weighted average remaining maturity days | 2 days | |
Commercial paper | ||
Standby Letters of Credit | ||
Weighted average remaining maturity days | 47 days | |
BTMU | ||
Standby Letters of Credit | ||
Revolving credit facility borrowing capacity | $500,000,000 | |
Unsecured revolving credit facility years | 3 years |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||
Dec. 27, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 26, 2013 | 6-May-14 | Feb. 10, 2015 | |
Debt Instrument | ||||||||
Long-term debt | 6,972,000,000 | 6,547,000,000 | ||||||
MUFG Americas Holdings Corporation | ||||||||
Debt Instrument | ||||||||
Long-term debt | 750,000,000 | 763,000,000 | ||||||
MUFG Americas Holdings Corporation | Senior debt | Fixed rate 3.50% notes due June 2022 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 398,000,000 | 397,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 3.50% | 3.50% | ||||||
MUFG Americas Holdings Corporation | Subordinated Debt | Floating rate subordinated debt due December 2023 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 300,000,000 | 300,000,000 | ||||||
Debt instrument, face amount | 300,000,000 | |||||||
Debt instrument, weighted-average interest rate (as a percent) | 1.63% | 1.63% | ||||||
MUFG Americas Holdings Corporation | Subordinated Debt | Floating rate subordinated debt due December 2023 | LIBOR | ||||||||
Debt Instrument | ||||||||
Interest rate above variable interest rate (as a percent) | 1.38% | 1.38% | ||||||
MUFG Americas Holdings Corporation | Junior subordinated debt payable to trusts | Floating rate notes ranging March 2033 to September 2036 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 52,000,000 | 66,000,000 | ||||||
Debt instrument, weighted-average interest rate (as a percent) | 2.35% | 2.60% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | ||||||||
Debt Instrument | ||||||||
Long-term debt | 6,222,000,000 | 5,784,000,000 | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Federal Home Loan Bank advances | ||||||||
Debt Instrument | ||||||||
Long-term debt | 800,000,000 | 800,000,000 | ||||||
Debt instrument, weighted-average interest rate (as a percent) | 2.56% | 2.55% | ||||||
Reset period | 90 days | |||||||
Federal Home Loan Bank advances | 800,000,000 | |||||||
Federal Home Loan Bank advances, weighted average remaining maturity period | 22 months | |||||||
Federal Home Loan advances, collateral pledged | 54,700,000,000 | 50,800,000,000 | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due June 2014 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 0 | 300,000,000 | ||||||
Debt instrument, weighted-average interest rate (as a percent) | 1.19% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due June 2014 | LIBOR | ||||||||
Debt Instrument | ||||||||
Interest rate above variable interest rate (as a percent) | 0.95% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Fixed rate 3.00% notes due June 2016 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 700,000,000 | 699,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 3.00% | 3.00% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Fixed rate 1.50% notes due September 2016 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 499,000,000 | |||||||
Debt instrument, Fixed interest rate (as a percent) | 1.50% | 1.50% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due September 2016 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 500,000,000 | 500,000,000 | ||||||
Debt instrument, weighted-average interest rate (as a percent) | 0.75% | 0.75% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due September 2016 | LIBOR | ||||||||
Debt Instrument | ||||||||
Interest rate above variable interest rate (as a percent) | 1.00% | 1.00% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Fixed rate 2.125% notes due June 2017 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 499,000,000 | 499,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 2.13% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Fixed rate 2.625% notes due September 2018 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 1,000,000,000 | 1,000,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 2.63% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Fixed Rate 2.25% notes due May 2019 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 499,000,000 | 0 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 2.25% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due May 2017 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 250,000,000 | 0 | ||||||
Debt instrument, weighted-average interest rate (as a percent) | 0.63% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Senior debt | Floating rate notes due May 2017 | LIBOR | ||||||||
Debt Instrument | ||||||||
Interest rate above variable interest rate (as a percent) | 0.40% | |||||||
MUFG Union Bank, N.A. and other subsidiaries | Subordinated Debt | Fixed rate 5.95% notes due May 2016 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 711,000,000 | 718,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 5.95% | 5.95% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Subordinated Debt | Floating rate notes due to BTMU June 2023 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 750,000,000 | 750,000,000 | ||||||
Debt instrument, face amount | 750,000,000 | |||||||
Debt instrument, weighted-average interest rate (as a percent) | 1.45% | 1.45% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Subordinated Debt | Floating rate notes due to BTMU June 2023 | LIBOR | ||||||||
Debt Instrument | ||||||||
Interest rate above variable interest rate (as a percent) | 1.20% | 1.20% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Subordinated Debt | Capital Lease Obligations | ||||||||
Debt Instrument | ||||||||
Debt instrument, weighted-average interest rate (as a percent) | 4.92% | 4.88% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Note payable | Fixed rate 6.03% notes due July 2014 (related to consolidated VIE) | ||||||||
Debt Instrument | ||||||||
Long-term debt | 0 | 4,000,000 | ||||||
Debt instrument, Fixed interest rate (as a percent) | 6.03% | 6.03% | ||||||
MUFG Union Bank, N.A. and other subsidiaries | Junior subordinated debt payable to trusts | Capital Lease Obligations | ||||||||
Debt Instrument | ||||||||
Long-term debt | 14,000,000 | 15,000,000 | ||||||
Bank | ||||||||
Debt Instrument | ||||||||
Authorized amount under the bank note program | 8,000,000,000 | |||||||
Amount available for issuance under the bank note program | 1,900,000,000 | |||||||
Bank | Senior debt | Minimum | ||||||||
Debt Instrument | ||||||||
Maturity term | 1 year | |||||||
Bank | Senior debt | Fixed rate 1.50% notes due September 2016 | ||||||||
Debt Instrument | ||||||||
Long-term debt | 499,000,000 | |||||||
Debt instrument, Fixed interest rate (as a percent) | 1.50% | |||||||
Issuance price to purchasers as a percentage of principal amount (as a percent) | 99.75% | |||||||
Bank | Senior debt | Floating rate notes due September 2016 | ||||||||
Debt Instrument | ||||||||
Debt instrument, Fixed interest rate (as a percent) | 2.63% | |||||||
Issuance price to purchasers as a percentage of principal amount (as a percent) | 100.00% | |||||||
Bank | Senior debt | Fixed rate 2.625% notes due September 2018 | ||||||||
Debt Instrument | ||||||||
Issuance price to purchasers as a percentage of principal amount (as a percent) | 99.98% | |||||||
Redemption price as a percentage of principal amount (as a percent) | 100.00% | |||||||
Bank | Senior debt | Fixed Rate 2.25% notes due May 2019 | ||||||||
Debt Instrument | ||||||||
Issuance price to purchasers as a percentage of principal amount (as a percent) | 99.77% | |||||||
Redemption price as a percentage of principal amount (as a percent) | 100.00% | |||||||
Bank | Senior debt | Floating rate notes due May 2017 | ||||||||
Debt Instrument | ||||||||
Debt instrument, Fixed interest rate (as a percent) | 2.25% | |||||||
Issuance price to purchasers as a percentage of principal amount (as a percent) | 100.00% | |||||||
Redemption price as a percentage of principal amount (as a percent) | 100.00% | |||||||
Bank | Subordinated Debt | Maximum | ||||||||
Debt Instrument | ||||||||
Maturity term | 5 years | |||||||
Subsequent Event | Bank | Senior debt | Floating rate notes due 2018 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | 250,000,000 | |||||||
Subsequent Event | Bank | Senior debt | Fixed Rate 1.625% Notes Due 2018 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | 450,000,000 | |||||||
Debt instrument, Fixed interest rate (as a percent) | 1.63% | |||||||
Subsequent Event | Bank | Senior debt | Fixed Rate 2.25% Notes Due 2020 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | 1,000,000,000 | |||||||
Debt instrument, Fixed interest rate (as a percent) | 2.25% | |||||||
Subsequent Event | Bank | Senior debt | Fixed Rate 3.00% Notes Due 2025 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | $500,000,000 | |||||||
Debt instrument, Fixed interest rate (as a percent) | 3.00% |
Fair_Value_Measurement_and_Fai2
Fair Value Measurement and Fair Value of Financial Instruments - Fair Value Measurements on a Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value measurements | ||
Trading account assets | $1,114 | $851 |
Securities available for sale | 13,715 | |
Other liabilities | 1,889 | 1,675 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Fair value measurements | ||
Securities available for sale | 7,560 | |
Residential mortgage-backed securities, Privately issued | ||
Fair value measurements | ||
Securities available for sale | 168 | |
Privately issued - commercial mortgage-backed securities | ||
Fair value measurements | ||
Securities available for sale | 1,691 | |
Collateralized loan obligations | ||
Fair value measurements | ||
Securities available for sale | 2,494 | |
Other | ||
Fair value measurements | ||
Securities available for sale | 9 | |
Other debt securities, Direct bank purchase bonds | ||
Fair value measurements | ||
Securities available for sale | 1,741 | |
Other debt securities, Other | ||
Fair value measurements | ||
Securities available for sale | 52 | |
Level 3 | ||
Fair value measurements | ||
Other assets | 6 | 3 |
Fair Value Measurements Recurring | ||
Fair value measurements | ||
Trading account assets | 1,114 | 851 |
Securities available for sale | 13,724 | 15,817 |
Other assets | 2 | 10 |
Total assets | 14,840 | 16,678 |
Percentage of Total | 100.00% | 100.00% |
Percentage of Total Company Assets | 13.00% | 16.00% |
Trading account liabilities | 894 | 540 |
FDIC clawback liability | 96 | |
Other liabilities | 109 | 113 |
Total liabilities | 1,003 | 653 |
Percentage of Total | 100.00% | 100.00% |
Percentage of Total Company Liabilities | 0.00% | 1.00% |
Fair Value Measurements Recurring | U.S. Treasury | ||
Fair value measurements | ||
Trading account assets | 69 | 8 |
Fair Value Measurements Recurring | U.S. government-sponsored agencies | ||
Fair value measurements | ||
Trading account assets | 125 | 116 |
Securities available for sale | 73 | |
Fair Value Measurements Recurring | State and municipal securities | ||
Fair value measurements | ||
Trading account assets | 10 | 5 |
Fair Value Measurements Recurring | Other loans | ||
Fair value measurements | ||
Trading account assets | 140 | |
Fair Value Measurements Recurring | Interest rate derivative contracts | ||
Fair value measurements | ||
Trading account assets | 761 | 501 |
Trading account liabilities | 163 | 230 |
Fair Value Measurements Recurring | Commodity derivative contracts | ||
Fair value measurements | ||
Trading account assets | 30 | 10 |
Trading account liabilities | 315 | 28 |
Fair Value Measurements Recurring | Foreign exchange derivative contracts | ||
Fair value measurements | ||
Trading account assets | 43 | 15 |
Trading account liabilities | 56 | 18 |
Fair Value Measurements Recurring | Equity Derivative contracts | ||
Fair value measurements | ||
Trading account assets | 76 | 56 |
Trading account liabilities | 299 | 254 |
Fair Value Measurements Recurring | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Fair value measurements | ||
Securities available for sale | 7,560 | 8,900 |
Fair Value Measurements Recurring | Residential mortgage-backed securities, Privately issued | ||
Fair value measurements | ||
Securities available for sale | 168 | 222 |
Fair Value Measurements Recurring | Privately issued - commercial mortgage-backed securities | ||
Fair value measurements | ||
Securities available for sale | 1,691 | 1,870 |
Fair Value Measurements Recurring | Collateralized loan obligations | ||
Fair value measurements | ||
Securities available for sale | 2,494 | 2,673 |
Fair Value Measurements Recurring | Other | ||
Fair value measurements | ||
Securities available for sale | 9 | 35 |
Fair Value Measurements Recurring | Other debt securities, Direct bank purchase bonds | ||
Fair value measurements | ||
Securities available for sale | 1,741 | 1,960 |
Fair Value Measurements Recurring | Other debt securities, Other | ||
Fair value measurements | ||
Securities available for sale | 52 | 76 |
Fair Value Measurements Recurring | Equity securities | ||
Fair value measurements | ||
Securities available for sale | 9 | 8 |
Fair Value Measurements Recurring | Interest rate hedging contracts | ||
Fair value measurements | ||
Other assets | 0 | 8 |
Other liabilities | 1 | 13 |
Fair Value Measurements Recurring | Other derivative contracts | ||
Fair value measurements | ||
Other assets | 2 | 2 |
Other liabilities | 3 | 4 |
Fair Value Measurements Recurring | Securities sold, not yet purchased | ||
Fair value measurements | ||
Trading account liabilities | 61 | 10 |
Fair Value Measurements Recurring | Level 1 | ||
Fair value measurements | ||
Trading account assets | 1 | 2 |
Securities available for sale | 9 | 8 |
Total assets | 10 | 10 |
Trading account liabilities | 2 | 4 |
Total liabilities | 2 | 4 |
Percentage of Total | 1.00% | |
Fair Value Measurements Recurring | Level 1 | Interest rate derivative contracts | ||
Fair value measurements | ||
Trading account assets | 1 | |
Trading account liabilities | 1 | 3 |
Fair Value Measurements Recurring | Level 1 | Foreign exchange derivative contracts | ||
Fair value measurements | ||
Trading account assets | 1 | 1 |
Trading account liabilities | 1 | 1 |
Fair Value Measurements Recurring | Level 1 | Equity securities | ||
Fair value measurements | ||
Securities available for sale | 9 | 8 |
Fair Value Measurements Recurring | Level 2 | ||
Fair value measurements | ||
Trading account assets | 1,653 | 1,071 |
Securities available for sale | 11,925 | 13,791 |
Other assets | 36 | 9 |
Total assets | 13,614 | 14,871 |
Percentage of Total | 92.00% | 89.00% |
Percentage of Total Company Assets | 12.00% | 14.00% |
Trading account liabilities | 1,371 | 695 |
Other liabilities | 5 | 14 |
Total liabilities | 1,376 | 709 |
Percentage of Total | 137.00% | 109.00% |
Percentage of Total Company Liabilities | 1.00% | 1.00% |
Fair Value Measurements Recurring | Level 2 | U.S. Treasury | ||
Fair value measurements | ||
Trading account assets | 69 | 8 |
Fair Value Measurements Recurring | Level 2 | U.S. government-sponsored agencies | ||
Fair value measurements | ||
Trading account assets | 125 | 116 |
Securities available for sale | 73 | |
Fair Value Measurements Recurring | Level 2 | State and municipal securities | ||
Fair value measurements | ||
Trading account assets | 10 | 5 |
Fair Value Measurements Recurring | Level 2 | Other loans | ||
Fair value measurements | ||
Trading account assets | 140 | |
Fair Value Measurements Recurring | Level 2 | Interest rate derivative contracts | ||
Fair value measurements | ||
Trading account assets | 928 | 705 |
Trading account liabilities | 829 | 606 |
Fair Value Measurements Recurring | Level 2 | Commodity derivative contracts | ||
Fair value measurements | ||
Trading account assets | 417 | 67 |
Trading account liabilities | 403 | 53 |
Fair Value Measurements Recurring | Level 2 | Foreign exchange derivative contracts | ||
Fair value measurements | ||
Trading account assets | 104 | 30 |
Trading account liabilities | 78 | 26 |
Fair Value Measurements Recurring | Level 2 | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Fair value measurements | ||
Securities available for sale | 7,560 | 8,900 |
Fair Value Measurements Recurring | Level 2 | Residential mortgage-backed securities, Privately issued | ||
Fair value measurements | ||
Securities available for sale | 168 | 222 |
Fair Value Measurements Recurring | Level 2 | Privately issued - commercial mortgage-backed securities | ||
Fair value measurements | ||
Securities available for sale | 1,691 | 1,870 |
Fair Value Measurements Recurring | Level 2 | Collateralized loan obligations | ||
Fair value measurements | ||
Securities available for sale | 2,494 | 2,673 |
Fair Value Measurements Recurring | Level 2 | Other | ||
Fair value measurements | ||
Securities available for sale | 9 | 35 |
Fair Value Measurements Recurring | Level 2 | Other debt securities, Other | ||
Fair value measurements | ||
Securities available for sale | 3 | 18 |
Fair Value Measurements Recurring | Level 2 | Interest rate hedging contracts | ||
Fair value measurements | ||
Other assets | 36 | 8 |
Other liabilities | 4 | 13 |
Fair Value Measurements Recurring | Level 2 | Other derivative contracts | ||
Fair value measurements | ||
Other assets | 1 | |
Other liabilities | 1 | 1 |
Fair Value Measurements Recurring | Level 2 | Securities sold, not yet purchased | ||
Fair value measurements | ||
Trading account liabilities | 61 | 10 |
Fair Value Measurements Recurring | Level 3 | ||
Fair value measurements | ||
Trading account assets | 311 | 271 |
Securities available for sale | 1,790 | 2,018 |
Other assets | 2 | 1 |
Total assets | 2,103 | 2,290 |
Percentage of Total | 14.00% | 14.00% |
Percentage of Total Company Assets | 2.00% | 2.00% |
Trading account liabilities | 305 | 264 |
FDIC clawback liability | 96 | |
Other liabilities | 107 | 99 |
Total liabilities | 412 | 363 |
Percentage of Total | 41.00% | 55.00% |
Fair Value Measurements Recurring | Level 3 | Interest rate derivative contracts | ||
Fair value measurements | ||
Trading account assets | 5 | 7 |
Fair Value Measurements Recurring | Level 3 | Commodity derivative contracts | ||
Fair value measurements | ||
Trading account assets | 5 | 9 |
Trading account liabilities | 5 | 8 |
Fair Value Measurements Recurring | Level 3 | Foreign exchange derivative contracts | ||
Fair value measurements | ||
Trading account assets | 1 | 2 |
Trading account liabilities | 1 | 2 |
Fair Value Measurements Recurring | Level 3 | Equity Derivative contracts | ||
Fair value measurements | ||
Trading account assets | 300 | 253 |
Trading account liabilities | 299 | 254 |
Fair Value Measurements Recurring | Level 3 | Other debt securities, Direct bank purchase bonds | ||
Fair value measurements | ||
Securities available for sale | 1,960 | |
Fair Value Measurements Recurring | Level 3 | Other debt securities, Other | ||
Fair value measurements | ||
Securities available for sale | 49 | 58 |
Fair Value Measurements Recurring | Level 3 | Other derivative contracts | ||
Fair value measurements | ||
Other assets | 2 | 1 |
Other liabilities | 2 | 3 |
Fair Value Measurements Recurring | Netting Adjustment | ||
Fair value measurements | ||
Trading account assets | -851 | -493 |
Other assets | -36 | |
Total assets | -887 | -493 |
Percentage of Total | -6.00% | -3.00% |
Percentage of Total Company Assets | -1.00% | |
Trading account liabilities | -784 | -423 |
Other liabilities | -3 | |
Total liabilities | -787 | -423 |
Percentage of Total | -78.00% | -65.00% |
Percentage of Total Company Liabilities | -1.00% | |
Fair Value Measurements Recurring | Netting Adjustment | Interest rate derivative contracts | ||
Fair value measurements | ||
Trading account assets | -172 | -212 |
Trading account liabilities | -667 | -379 |
Fair Value Measurements Recurring | Netting Adjustment | Commodity derivative contracts | ||
Fair value measurements | ||
Trading account assets | -392 | -66 |
Trading account liabilities | -93 | -33 |
Fair Value Measurements Recurring | Netting Adjustment | Foreign exchange derivative contracts | ||
Fair value measurements | ||
Trading account assets | -63 | -18 |
Trading account liabilities | -24 | -11 |
Fair Value Measurements Recurring | Netting Adjustment | Equity Derivative contracts | ||
Fair value measurements | ||
Trading account assets | -224 | -197 |
Fair Value Measurements Recurring | Netting Adjustment | Interest rate hedging contracts | ||
Fair value measurements | ||
Other assets | -36 | |
Other liabilities | ($3) |
Fair_Value_Measurement_and_Fai3
Fair Value Measurement and Fair Value of Financial Instruments - Reconciliation of Assets and Liabilities on a Recurring Basis (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Trading Assets | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset balance, beginning of period | $271 | $136 |
Total gains (losses) (realized/unrealized) included in income before taxes, assets | 61 | 119 |
Purchases/additions, assets | 4 | 24 |
Settlements, assets | -25 | -8 |
Asset balance, end of period | 311 | 271 |
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets | 61 | 119 |
Securities Available for Sale | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset balance, beginning of period | 2,018 | 1,499 |
Total gains (losses) (realized/unrealized) included in other comprehensive income, assets | 29 | 28 |
Purchases/additions, assets | 197 | 700 |
Sales, assets | -14 | |
Settlements, assets | -454 | -195 |
Asset balance, end of period | 1,790 | 2,018 |
Other assets | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset balance, beginning of period | 1 | 0 |
Total gains (losses) (realized/unrealized) included in income before taxes, assets | 1 | |
Purchases/additions, assets | 1 | |
Asset balance, end of period | 2 | 1 |
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, assets | 1 | |
Trading Liabilities | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability balance, beginning of period | -264 | -136 |
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability | -61 | -120 |
Sales, liabilities | -5 | -16 |
Settlements, liabilities | 25 | 8 |
Liability balance, end of period | -305 | -264 |
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities | -61 | -120 |
Other Liabilities | ||
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability balance, beginning of period | -99 | -95 |
Total gains (losses) (realized/unrealized) included in income before taxes, assets, liability | -8 | -4 |
Liability balance, end of period | -107 | -99 |
Changes in unrealized gains (losses) included in income before taxes for assets still held at end of period, liabilities | ($8) | ($4) |
Fair_Value_Measurement_and_Fai4
Fair Value Measurement and Fair Value of Financial Instruments - Level 3 Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 13,715 | |
Other liabilities | 1,889 | 1,675 |
Other debt securities, Direct bank purchase bonds | ||
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 1,741 | |
Other debt securities, Direct bank purchase bonds | Minimum | Return on equity | ||
Significant unobservable inputs, Level 3 assets | ||
Market-required return on capital (as a percent) | 8.00% | |
Probability of default (as a percent) | 0.00% | |
Loss severity (as a percent) | 10.00% | |
Other debt securities, Direct bank purchase bonds | Maximum | Return on equity | ||
Significant unobservable inputs, Level 3 assets | ||
Market-required return on capital (as a percent) | 10.00% | |
Probability of default (as a percent) | 25.00% | |
Loss severity (as a percent) | 60.00% | |
Other debt securities, Direct bank purchase bonds | Weighted Average | Return on equity | ||
Significant unobservable inputs, Level 3 assets | ||
Market-required return on capital (as a percent) | 9.90% | |
Probability of default (as a percent) | 0.50% | |
Loss severity (as a percent) | 31.10% | |
FDIC clawback liability | Minimum | Discounted cash flow | ||
Significant unobservable inputs, Level 3 assets | ||
Probability of default (as a percent) | 0.10% | |
Loss severity (as a percent) | 0.00% | |
FDIC clawback liability | Maximum | Discounted cash flow | ||
Significant unobservable inputs, Level 3 assets | ||
Probability of default (as a percent) | 100.00% | |
Loss severity (as a percent) | 100.00% | |
FDIC clawback liability | Weighted Average | Discounted cash flow | ||
Significant unobservable inputs, Level 3 assets | ||
Probability of default (as a percent) | 58.40% | |
Loss severity (as a percent) | 39.10% | |
Fair Value, Measurements, Recurring | ||
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 13,724 | 15,817 |
Fair Value, Measurements, Recurring | Other debt securities, Direct bank purchase bonds | ||
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 1,741 | 1,960 |
Fair Value, Measurements, Recurring | Level 3 | ||
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 1,790 | 2,018 |
Fair Value, Measurements, Recurring | Level 3 | Other debt securities, Direct bank purchase bonds | ||
Significant unobservable inputs, Level 3 assets | ||
Available-for-sale Securities, Debt Securities | 1,960 | |
Fair Value, Measurements, Recurring | FDIC clawback liability | ||
Significant unobservable inputs, Level 3 assets | ||
Other liabilities | 105 |
Fair_Value_Measurement_and_Fai5
Fair Value Measurement and Fair Value of Financial Instruments - Assets Measured on Nonrecurring Basis (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans: | ||
Impaired loans | $503 | $608 |
Loss Impaired loans | -37 | -47 |
Other assets: | ||
OREO | 36 | 57 |
Loss on OREO | -6 | -11 |
Loss on Private equity investments | -5 | |
Loss, Total | -43 | -63 |
Fair Value Measurements, Nonrecurring | ||
Loans: | ||
Impaired loans | 109 | 59 |
Other assets: | ||
OREO | 15 | 21 |
Total | 124 | 80 |
Fair Value Measurements, Nonrecurring | Level 3 | ||
Loans: | ||
Impaired loans | 109 | 59 |
Other assets: | ||
OREO | 15 | 21 |
Total | $124 | $80 |
Fair_Value_Measurement_and_Fai6
Fair Value Measurement and Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments(Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Securities held to maturity | $8,412 | $6,439 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 5,751 | 6,203 |
Level 2 | ||
Assets | ||
Securities held to maturity | 8,412 | 6,439 |
Liabilities | ||
Deposits | 86,076 | 80,228 |
Commercial paper and other short-term borrowings | 2,704 | 2,563 |
Long-term debt | 7,073 | 6,709 |
Level 3 | ||
Assets | ||
Loans held for investment, net of allowance for loan losses | 77,324 | 68,132 |
FDIC indemnification asset | 5 | 95 |
Other assets | 6 | 3 |
Off-Balance Sheet Instruments | ||
Commitments to extend credit and standby and commercial letters of credit | 269 | 273 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 5,751 | 6,203 |
Securities held to maturity | 8,291 | 6,509 |
Loans held for investment, net of allowance for loan losses | 75,475 | 66,898 |
FDIC indemnification asset | 52 | 141 |
Other assets | 7 | 3 |
Liabilities | ||
Deposits | 86,004 | 80,101 |
Commercial paper and other short-term borrowings | 2,704 | 2,563 |
Long-term debt | 6,972 | 6,547 |
Off-Balance Sheet Instruments | ||
Commitments to extend credit and standby and commercial letters of credit | 269 | 273 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 5,751 | 6,203 |
Securities held to maturity | 8,412 | 6,439 |
Loans held for investment, net of allowance for loan losses | 77,324 | 68,132 |
FDIC indemnification asset | 5 | 95 |
Other assets | 6 | 3 |
Liabilities | ||
Deposits | 86,076 | 80,228 |
Commercial paper and other short-term borrowings | 2,704 | 2,563 |
Long-term debt | 7,073 | 6,709 |
Off-Balance Sheet Instruments | ||
Commitments to extend credit and standby and commercial letters of credit | $269 | $273 |
Derivative_Instruments_and_Oth2
Derivative Instruments and Other Financial Instruments Used For Hedging - Notional and Fair Value Amounts (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | $71,679 | $64,438 |
Fair Value, Asset Derivatives | 1,799 | 1,085 |
Fair Value, Liability Derivatives | 1,624 | 970 |
Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 61,143 | 59,953 |
Fair Value, Asset Derivatives | 1,761 | 1,075 |
Fair Value, Liability Derivatives | 1,617 | 953 |
Not designated as hedging instruments | Other risk management | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 286 | 185 |
Fair Value, Asset Derivatives | 2 | 2 |
Fair Value, Liability Derivatives | 3 | 4 |
Net gain (losses) on derivatives included in other noninterest income | -1 | -6 |
Interest rate contracts | Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 46,944 | 44,427 |
Fair Value, Asset Derivatives | 933 | 713 |
Fair Value, Liability Derivatives | 830 | 609 |
Interest rate contracts | Cash Flow Hedges | Designated as hedging instrument | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 9,750 | 4,300 |
Fair Value, Asset Derivatives | 34 | 8 |
Fair Value, Liability Derivatives | 4 | 13 |
Interest rate contracts | Fair Value Hedges | Designated as hedging instrument | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 500 | 0 |
Fair Value, Asset Derivatives | 2 | 0 |
Fair Value, Liability Derivatives | 0 | 0 |
Commodity contracts | Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 4,741 | 5,714 |
Fair Value, Asset Derivatives | 422 | 76 |
Fair Value, Liability Derivatives | 408 | 61 |
Foreign exchange contracts | Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 5,661 | 5,645 |
Fair Value, Asset Derivatives | 106 | 33 |
Fair Value, Liability Derivatives | 80 | 29 |
Equity contracts | Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | 3,797 | 4,027 |
Fair Value, Asset Derivatives | 300 | 253 |
Fair Value, Liability Derivatives | 299 | 254 |
Other contracts | Not designated as hedging instruments | Trading derivatives | ||
Derivative Instruments and Other Financial Instruments | ||
Derivative Notional Amount | $0 | $140 |
Derivative_Instruments_and_Oth3
Derivative Instruments and Other Financial Instruments Used For Hedging - Additional Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flow hedges | ||
Derivative Notional Amount | $71,679 | $64,438 |
Income from accumulated other comprehensive income expected to be reclassified to net interest income | 103 | |
Cash Flow Hedges | ||
Cash flow hedges | ||
Weighted average remaining life of the currently active cash flow hedges | 3 years 4 months 13 days | |
Designated as hedging instrument | Cash Flow Hedges | LIBOR indexed loans | Interest rate swaps | ||
Cash flow hedges | ||
Derivative Notional Amount | $9,750 |
Derivative_Instruments_and_Oth4
Derivative Instruments and Other Financial Instruments Used For Hedging - Derivatives Designated as Cash Flow Hedges (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash Flow Hedges | Interest rate contracts | Noninterest expense | Maximum | ||
Amount and location of net gains and losses | ||
Gain (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion) | $1 | |
Designated as hedging instrument | Fair Value Hedging | ||
Amount and location of net gains and losses | ||
Derivative | 2 | |
Hedged Item | -1 | |
Hedge Ineffectiveness | 1 | |
Designated as hedging instrument | Fair Value Hedging | Interest rate contracts | ||
Amount and location of net gains and losses | ||
Derivative | 2 | |
Hedged Item | -1 | |
Hedge Ineffectiveness | 1 | |
Designated as hedging instrument | Cash Flow Hedges | ||
Amount and location of net gains and losses | ||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) | 126 | 29 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 117 | 43 |
Gain (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion) | 2 | 0 |
Designated as hedging instrument | Cash Flow Hedges | Interest rate contracts | ||
Amount and location of net gains and losses | ||
Amount of Gain (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) | 126 | 29 |
Designated as hedging instrument | Cash Flow Hedges | Interest rate contracts | Interest income | ||
Amount and location of net gains and losses | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 115 | 44 |
Designated as hedging instrument | Cash Flow Hedges | Interest rate contracts | Interest expense | ||
Amount and location of net gains and losses | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 2 | -1 |
Designated as hedging instrument | Cash Flow Hedges | Interest rate contracts | Noninterest expense | ||
Amount and location of net gains and losses | ||
Gain (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion) | 2 | 0 |
Designated as hedging instrument | Cash Flow Hedges | Interest rate contracts | Noninterest expense | Maximum | ||
Amount and location of net gains and losses | ||
Gain (Loss) Recognized in Income on Derivative Instruments (Ineffective Portion) | $1 |
Derivative_Instruments_and_Oth5
Derivative Instruments and Other Financial Instruments Used For Hedging - Amount of Net Gains (Losses) for Derivatives Classified as Trading (Details) (Trading Derivatives, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | $67 | $50 |
Interest rate contracts | ||
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | 36 | 30 |
Equity contracts | ||
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | 3 | 0 |
Foreign exchange contracts | ||
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | 19 | 18 |
Commodity contracts | ||
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | 8 | 2 |
Other contracts | ||
Trading Derivatives | ||
Gain or (Loss) Recognized in Income on Derivative Instruments | $1 | $0 |
Derivative_Instruments_and_Oth6
Derivative Instruments and Other Financial Instruments Used For Hedging - Offsetting of Financial Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Assets | ||
Gross Amounts of Recognized Assets, Derivative assets | $1,799 | $1,085 |
Gross Amounts Offset in Balance Sheet, Derivative assets | 887 | 493 |
Net Amounts Presented in Balance Sheet, Derivative assets | 912 | 592 |
Gross Amounts Not Offset In Balance Sheet, Financial Instruments, Derivative assets | 113 | 79 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Pledged, Derivative assets | 0 | 0 |
Net Amount, Derivative assets | 799 | 513 |
Gross Amounts of Recognized Assets, Securities purchased under resale agreements | 62 | 10 |
Net Amounts Presented in Balance Sheet, Securities purchased under resale agreements | 62 | |
Gross Amount Not Offset in Balance Sheet, Financial Instruments, Securities purchased under repurchase agreements | 61 | 10 |
Net Amount, Securities purchased under repurchase agreements | 1 | 0 |
Gross Amounts of Recognized Assets, Financial Assets | 1,861 | 1,095 |
Gross Amounts Offset in Balance Sheet, Financial Assets | 887 | 493 |
Net Amounts Presented in Balance Sheet, Financial Assets | 974 | 602 |
Gross Amounts Not Offset In Balance Sheet, Financial Instruments, Financial Assets | 174 | 89 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Pledged, Financial Assets | 0 | 0 |
Net Amount, Financial Assets | 800 | 513 |
Financial Liabilities | ||
Gross Amounts of Recognized Liabilities, Derivative liabilities | 1,624 | 970 |
Gross Amounts Offset in Balance Sheet, Derivative liabilities | 787 | 423 |
Net Amounts Presented in Balance Sheet, Derivative liabilities | 837 | 547 |
Gross Amount Not Offset in Balance Sheet, Financial Instruments, Derivative liabilities | 162 | 144 |
Gross Amount Not Offset in Balance Sheet, Cash Collateral Pledged, Derivative liabilities | 0 | 0 |
Net Amount, Derivative liabilities | 675 | 403 |
Gross Amounts of Recognized Liabilities, Securities sold under repurchase agreements | 68 | 8 |
Net Amounts Presented in Balance Sheet, Securities sold under repurchase agreements | 68 | 8 |
Gross Amount Not Offset in Balance Sheet, Financial Instruments, Securities sold under repurchase agreements | 68 | 8 |
Net Amount, Securities sold under repurchase agreements | 0 | 0 |
Gross Amounts of Recognized Liabilities, Financial Liabilities | 1,692 | 978 |
Gross Amounts Offset in Balance Sheet, Financial Liabilities | 787 | 423 |
Net Amounts Presented in Balance Sheet, Financial Liabilities | 905 | 555 |
Gross Amount Not Offset in Balance Sheet, Financial Instruments, Financial Liabilities | 230 | 152 |
Gross Amount Not Offset in Balance Sheet, Cash Collateral Pledged, Financial Liabilities | 0 | 0 |
Net Amount, Financial Liabilities | $675 | $403 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - AOCI and Related Tax Effect (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow hedge activities: | |||
Unrealized net gains (losses) on hedges arising during the period, Before Tax Amount | $126 | $29 | $82 |
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, Before Tax Amount | -117 | -43 | -15 |
Net change, Before Tax Amount | 9 | -14 | 67 |
Unrealized net gains (losses) on hedges arising during the period, Tax Effect | -50 | -11 | -32 |
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, Tax Effect | 46 | 17 | 6 |
Net change, Tax Effect | -4 | 6 | -26 |
Unrealized net gains (losses) on hedges arising during the period, Net of Tax | 76 | 18 | 50 |
Less: Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, Net of Tax | -71 | -26 | -9 |
Net change, Net of Tax | 5 | -8 | 41 |
Securities: | |||
Unrealized holding gains (losses) arising during the period on securities available for sale, Before Tax Amount | 348 | -401 | 187 |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, Before Tax Amount | -18 | -178 | -107 |
Reclassification of unrealized (gains) losses on held to maturity securities transferred to securities available for sale, Before Tax Amount | 301 | ||
Less: accretion of fair value adjustment on securities available for sale, Before Tax Amount | -48 | -75 | -9 |
Less: accretion of fair value adjustment on held to maturity securities, Before Tax Amount | 0 | -12 | -24 |
Less: amortization of net unrealized (gains) losses on held to maturity securities, Before Tax Amount | 19 | -137 | 90 |
Net change, Before Tax Amount | 301 | -803 | 438 |
Foreign currency translation adjustment, Before Tax Amount | -11 | -7 | 2 |
Unrealized holding gains (losses) arising during the period on securities available for sale, Tax Effect | -136 | 157 | -74 |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, Tax Effect | 7 | 70 | 42 |
Reclassification of unrealized (gains) losses on held to maturity securities transferred to securities available for sale, Tax Effect | -118 | ||
Less: accretion of fair value adjustment on securities available for sale, Tax Effect | 19 | 30 | 4 |
Less: accretion of fair value adjustment on held to maturity securities, Tax Effect | 0 | 5 | 9 |
Less: amortization of net unrealized (gains) losses on held to maturity securities, Tax Effect | -8 | 54 | -35 |
Net change, Tax Effect | -118 | 316 | -172 |
Foreign currency translation adjustment, Tax Effect | 4 | 3 | -1 |
Unrealized holding gains (losses) arising during the period on securities available for sale, Net of Tax | 212 | -244 | 113 |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, Net of Tax | -11 | -108 | -65 |
Reclassification of unrealized (gains) losses on held to maturity securities transferred to securities available for sale, Net of Tax | 183 | ||
Less: accretion of fair value adjustment on securities available for sale, Net of Tax | -29 | -45 | -5 |
Less: accretion of fair value adjustment on held to maturity securities, Net of Tax | 0 | -7 | -15 |
Less: amortization of net unrealized (gains) losses on held to maturity securities, Net of Tax | 11 | -83 | 55 |
Net change, Net of Tax | 183 | -487 | 266 |
Foreign currency translation adjustment, Net of Tax | 7 | 4 | -1 |
Pension and other benefits: | |||
Amortization of transition amount, Before Tax Amount | -17 | -1 | |
Recognized net actuarial (gain) loss, Before Tax Amount | 62 | 116 | -99 |
Pension and other benefits arising during the year, Before Tax Amount | -517 | 526 | 121 |
Net change, Before Tax Amount | -472 | 642 | 21 |
Net change in AOCI, Before Tax Amount | -173 | -182 | 486 |
Amortization of transition amount, Tax Effect | 7 | 1 | |
Recognized net actuarial (gain) loss, Tax Effect | 24 | 46 | -39 |
Pension and other benefits arising during the year, Tax Effect | -203 | 207 | 48 |
Net change, Tax Effect | 186 | -253 | -8 |
Net change in AOCI, Tax Effect | 68 | 72 | -191 |
Amortization of prior service costs, Net of Tax | -10 | 0 | |
Recognized net actuarial gain (loss), Net of Tax | 38 | 70 | 60 |
Pension and other benefits arising during the year, Net of Tax | -314 | 319 | -73 |
Net change, Net of Tax | -286 | 389 | -13 |
Net change in AOCI, Net of Tax | ($105) | ($110) | $295 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Loss Balances (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | ($624) | ($514) | ($809) |
Accumulated Other Comprehensive Loss, Other comprehensive income before reclassifications | 263 | -365 | 199 |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss | -368 | 255 | 96 |
Accumulated Other Comprehensive Loss, Ending Balance | -729 | -624 | -514 |
Net Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | 16 | 24 | -17 |
Accumulated Other Comprehensive Loss, Other comprehensive income before reclassifications | 76 | 18 | 50 |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss | -71 | -26 | -9 |
Accumulated Other Comprehensive Loss, Ending Balance | 21 | 16 | 24 |
Net Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | -328 | 159 | -107 |
Accumulated Other Comprehensive Loss, Other comprehensive income before reclassifications | 194 | -379 | 148 |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss | -11 | -108 | 118 |
Accumulated Other Comprehensive Loss, Ending Balance | -145 | -328 | 159 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | -3 | 1 | 0 |
Accumulated Other Comprehensive Loss, Other comprehensive income before reclassifications | -7 | -4 | 1 |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss, Ending Balance | -10 | -3 | 1 |
Pension and Other Benefits Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | -309 | -698 | -685 |
Accumulated Other Comprehensive Loss, Other comprehensive income before reclassifications | 0 | 0 | 0 |
Accumulated Other Comprehensive Loss, Amounts reclassified from accumulated other comprehensive loss | -286 | 389 | -13 |
Accumulated Other Comprehensive Loss, Ending Balance | ($595) | ($309) | ($698) |
Management_Stock_Plans_Bonus_S
Management Stock Plans - Bonus Stock Plans (Details) (Stock Bonus Plan, Restricted Stock Units, USD $) | 0 Months Ended | 12 Months Ended | |||||||
Sep. 15, 2014 | Jul. 10, 2014 | Apr. 15, 2014 | Jul. 15, 2013 | Apr. 15, 2013 | Jul. 15, 2012 | Apr. 15, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Bonus Plan | Restricted Stock Units | |||||||||
Management Stock Plans | |||||||||
Units Granted | 46,552 | 56,056 | 9,135,710 | 78,725 | 3,656,340 | 74,175 | 4,816,795 | 9,238,318 | 3,735,065 |
Fair Value of Stock | $5.80 | $5.91 | $5.40 | $6.67 | $6.66 | $4.72 | $4.78 | ||
Vesting Duration | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years |
Management_Stock_Plans_Rollfor
Management Stock Plans - Rollforward of RSUs under Stock Bonus Plan (Details) (Restricted Stock Units) | 0 Months Ended | 12 Months Ended | ||||||||
Sep. 15, 2014 | Jul. 10, 2014 | Apr. 15, 2014 | Jul. 15, 2013 | Apr. 15, 2013 | Jul. 15, 2012 | Apr. 15, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Stock Bonus Plan | ||||||||||
Restricted Stock Units rollforward | ||||||||||
Units outstanding, beginning of year | 7,851,017 | 8,857,884 | ||||||||
Granted | 46,552 | 56,056 | 9,135,710 | 78,725 | 3,656,340 | 74,175 | 4,816,795 | 9,238,318 | 3,735,065 | |
Vested | -4,351,084 | -4,325,661 | ||||||||
Forfeited | -952,075 | -416,271 | ||||||||
Units outstanding, end of year | 15,101,489 | 7,851,017 | ||||||||
HQA Plan | ||||||||||
Restricted Stock Units rollforward | ||||||||||
Units outstanding, beginning of year | 3,315,313 | |||||||||
Units outstanding, end of year | 3,315,313 |
Management_Stock_Plans_Compens
Management Stock Plans - Compensation Costs, Tax Benefit and Unrecognized Compensation Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Compensation costs | $34 | $21 | $18 |
Tax benefit | 13 | 8 | 7 |
Unrecognized compensation costs | $42 | $27 | $26 |
Employee_Pension_and_Other_Pos2
Employee Pension and Other Postretirement Benefits - Additional Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Service Period required for eligibility | 1 year | |
Change in fair value of plan assets | ||
Fair value of plan assets, beginning of year | $2,716 | $2,019 |
Actual return on plan assets | 164 | 391 |
Employer contributions | 100 | 380 |
Plan participants' contributions | 0 | 0 |
Benefits paid | -83 | -74 |
Fair value of plan assets, end of year | 2,897 | 2,716 |
Pension Benefits | Minimum | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Service Period required for vesting | 3 years | |
Other Benefits | ||
Change in fair value of plan assets | ||
Fair value of plan assets, beginning of year | 245 | 210 |
Actual return on plan assets | 14 | 37 |
Employer contributions | 13 | 12 |
Plan participants' contributions | 7 | 7 |
Benefits paid | -22 | -21 |
Fair value of plan assets, end of year | $257 | $245 |
Other Benefits | Minimum | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Future cost-sharing changes | 25.00% | |
Other Benefits | Maximum | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Future cost-sharing changes | 50.00% |
Employee_Pension_and_Other_Pos3
Employee Pension and Other Postretirement Benefits - Asset Allocation (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Pension Benefits | Equity securities | |
Pension Plan and Other Postretirement Benefits Plan | |
Target plan asset allocation | 63.00% |
Pension Benefits | Debt Securities | |
Pension Plan and Other Postretirement Benefits Plan | |
Target plan asset allocation | 25.00% |
Pension Benefits | Real estate | |
Pension Plan and Other Postretirement Benefits Plan | |
Target plan asset allocation | 12.00% |
Other Benefits | Equity securities | |
Pension Plan and Other Postretirement Benefits Plan | |
Target plan asset allocation | 70.00% |
Other Benefits | Debt Securities | |
Pension Plan and Other Postretirement Benefits Plan | |
Target plan asset allocation | 30.00% |
Employee_Pension_and_Other_Pos4
Employee Pension and Other Postretirement Benefits - Fair Value Hierarchy of Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Pension Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | $2,934 | $2,747 | |
Accrued dividends and interest receivable | 7 | 4 | |
Net pending trades | -44 | -35 | |
Total Plan Assets | 2,897 | 2,716 | 2,019 |
Pension Benefits | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1,724 | 1,639 | |
Pension Benefits | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 912 | 844 | |
Pension Benefits | Level 3 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 298 | 264 | 174 |
Pension Benefits | Cash and cash equivalents | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 53 | 28 | |
Pension Benefits | Cash and cash equivalents | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1 | ||
Pension Benefits | Cash and cash equivalents | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 52 | 28 | |
Pension Benefits | U.S. Government securities | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 251 | 230 | |
Pension Benefits | U.S. Government securities | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 251 | 230 | |
Pension Benefits | Corporate bonds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 442 | 364 | |
Pension Benefits | Corporate bonds | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 442 | 364 | |
Pension Benefits | Equity securities | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 301 | 233 | |
Pension Benefits | Equity securities | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 295 | 233 | |
Pension Benefits | Equity securities | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 6 | ||
Pension Benefits | Real Estate Funds [Member] | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 270 | 242 | |
Pension Benefits | Real Estate Funds [Member] | Level 3 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 270 | 242 | |
Pension Benefits | Limited partnership | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 166 | 156 | |
Pension Benefits | Limited partnership | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 138 | 134 | |
Pension Benefits | Limited partnership | Level 3 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 28 | 22 | 18 |
Pension Benefits | Common collective funds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 60 | ||
Pension Benefits | Common collective funds | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 60 | ||
Pension Benefits | Mutual funds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1,422 | 1,407 | |
Pension Benefits | Mutual funds | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1,422 | 1,407 | |
Pension Benefits | Other | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 29 | 27 | |
Pension Benefits | Other | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 6 | -1 | |
Pension Benefits | Other | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 23 | 28 | |
Other Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 264 | 251 | |
Net pending trades | -7 | -6 | |
Total Plan Assets | 257 | 245 | 210 |
Other Benefits | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 136 | 133 | |
Other Benefits | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 128 | 118 | |
Other Benefits | Cash and cash equivalents | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 3 | 2 | |
Other Benefits | Cash and cash equivalents | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 3 | 2 | |
Other Benefits | U.S. Government securities | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 36 | 33 | |
Other Benefits | U.S. Government securities | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 36 | 33 | |
Other Benefits | Corporate bonds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 23 | 19 | |
Other Benefits | Corporate bonds | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 23 | 19 | |
Other Benefits | Municipal Bonds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1 | 1 | |
Other Benefits | Municipal Bonds | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 1 | 1 | |
Other Benefits | Mutual funds | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 136 | 133 | |
Other Benefits | Mutual funds | Level 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 136 | 133 | |
Other Benefits | Pooled separate account | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | 65 | 63 | |
Other Benefits | Pooled separate account | Level 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Total Plan Investments | $65 | $63 |
Employee_Pension_and_Other_Pos5
Employee Pension and Other Postretirement Benefits - Change in Plan Assets, Level 3 (Details) (Pension Benefits, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, end of year | $2,934 | $2,747 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 264 | 174 |
Unrealized gains (losses) | 26 | 18 |
Purchases, issuances, sales, and settlements, net | 8 | 72 |
Fair value of plan assets, end of year | 298 | 264 |
Real estate funds | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 242 | 156 |
Unrealized gains (losses) | 21 | 18 |
Purchases, issuances, sales, and settlements, net | 7 | 68 |
Fair value of plan assets, end of year | 270 | 242 |
Limited partnership | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, end of year | 166 | 156 |
Limited partnership | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 22 | 18 |
Unrealized gains (losses) | 5 | 0 |
Purchases, issuances, sales, and settlements, net | 1 | 4 |
Fair value of plan assets, end of year | 28 | 22 |
Other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, end of year | $29 | $27 |
Employee_Pension_and_Other_Pos6
Employee Pension and Other Postretirement Benefits - Changes in Benefit Obligation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Increase in projected benefit obligations | $232 | ||
Accumulated benefit obligation | 2,717 | 2,046 | |
Change in benefit obligation | |||
Benefit obligation, beginning of year | 2,263 | 2,394 | |
Service cost | 75 | 87 | |
Interest cost | 105 | 99 | 101 |
Plan participants' contributions | 0 | 0 | |
Actuarial loss/(gain) | 607 | -243 | |
Effect of plan amendments | -150 | ||
Medicare Part D subsidy | 0 | 0 | |
Benefits paid | -83 | -74 | |
Benefit obligation, end of year | 2,817 | 2,263 | 2,394 |
Fair value of plan assets, end of year | 2,897 | 2,716 | 2,019 |
Over (Under) funded status | 80 | 453 | |
Other Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Increase in projected benefit obligations | 35 | ||
Change in benefit obligation | |||
Benefit obligation, beginning of year | 270 | 293 | |
Service cost | 10 | 14 | |
Interest cost | 11 | 11 | 12 |
Plan participants' contributions | 7 | 7 | |
Actuarial loss/(gain) | 42 | -34 | |
Effect of plan amendments | -29 | ||
Medicare Part D subsidy | 1 | 0 | |
Benefits paid | -22 | -21 | |
Benefit obligation, end of year | 290 | 270 | 293 |
Fair value of plan assets, end of year | 257 | 245 | 210 |
Over (Under) funded status | ($33) | ($25) |
Employee_Pension_and_Other_Pos7
Employee Pension and Other Postretirement Benefits - Changes in AOCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan and Other Postretirement Benefits Plan | |||
Net Actuarial (Gain) Loss, Arising during the year | $62 | $116 | ($99) |
Transition Assets, Recognized in net income during the year | 17 | 1 | |
Pension Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Net Actuarial (Gain) Loss, Balance | 467 | 1,042 | 1,016 |
Net Actuarial (Gain) Loss, Arising during the year | 636 | -468 | 115 |
Net Actuarial (Gain) Loss, Recognized in net income during the year | -59 | -107 | -89 |
Net Actuarial (Gain) Loss, Balance | 1,044 | 467 | 1,042 |
Prior Service Credit, beginning balance | 0 | ||
Prior Service Credit, Arising during the year | -150 | ||
Prior Service Credit, recognized in net income during the year | 12 | ||
Prior Service Credit, ending balance | -138 | 0 | |
Other Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Net Actuarial (Gain) Loss, Balance | 17 | 80 | 90 |
Net Actuarial (Gain) Loss, Arising during the year | 46 | -56 | -2 |
Net Actuarial (Gain) Loss, Recognized in net income during the year | -1 | -7 | -8 |
Net Actuarial (Gain) Loss, Balance | 62 | 17 | 80 |
Prior Service Credit, beginning balance | 0 | ||
Prior Service Credit, Arising during the year | -28 | ||
Prior Service Credit, recognized in net income during the year | 5 | ||
Prior Service Credit, ending balance | -23 | 0 | |
Transition Assets, Balance | 0 | 1 | |
Transition Assets, Recognized in net income during the year | -1 | ||
Transition Assets, Balance | $0 |
Employee_Pension_and_Other_Pos8
Employee Pension and Other Postretirement Benefits - AOCI Loss for Pension (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | ||||
Pension Plan and Other Postretirement Benefits Plan | ||||
Net actuarial loss, Gross | $1,044 | $467 | $1,042 | $1,016 |
Prior service costs (credits), Gross | -138 | 0 | ||
Pension and other benefits adjustment, Gross | 906 | 467 | ||
Net actuarial loss in AOCI, Tax | 411 | 184 | ||
Prior service costs (credits) in AOCI, Tax | -54 | |||
Pension and other benefits adjustment, Tax | 357 | 184 | ||
Net Actuarial (Gain)/Loss, Net of Tax | 633 | 283 | ||
Prior service costs (credits), Net of Tax | -84 | |||
Amounts to be reclassified from accumulated other comprehensive loss | 549 | 283 | ||
Expected cash contribution to Pension Plan in 2014 | 175 | |||
Other Benefits | ||||
Pension Plan and Other Postretirement Benefits Plan | ||||
Net actuarial loss, Gross | 62 | 17 | 80 | 90 |
Prior service costs (credits), Gross | -23 | 0 | ||
Pension and other benefits adjustment, Gross | 39 | 17 | ||
Net actuarial loss in AOCI, Tax | 25 | 7 | ||
Prior service costs (credits) in AOCI, Tax | -9 | |||
Pension and other benefits adjustment, Tax | 16 | 7 | ||
Net Actuarial (Gain)/Loss, Net of Tax | 37 | 10 | ||
Prior service costs (credits), Net of Tax | -14 | |||
Amounts to be reclassified from accumulated other comprehensive loss | 23 | 10 | ||
Executive Supplemental Benefits Pension Plan | ||||
Pension Plan and Other Postretirement Benefits Plan | ||||
Net actuarial loss, Gross | 39 | 26 | ||
Prior service costs (credits), Gross | -2 | |||
Pension and other benefits adjustment, Gross | 37 | 26 | ||
Net actuarial loss in AOCI, Tax | 15 | 10 | ||
Prior service costs (credits) in AOCI, Tax | -1 | |||
Pension and other benefits adjustment, Tax | 14 | 10 | ||
Net Actuarial (Gain)/Loss, Net of Tax | 24 | 16 | ||
Prior service costs (credits), Net of Tax | -1 | |||
Amounts to be reclassified from accumulated other comprehensive loss | 23 | 16 | ||
Pension and Executive Supplemental Benefits | ||||
Pension Plan and Other Postretirement Benefits Plan | ||||
Pension and other benefits adjustment, Gross | 943 | 493 | ||
Pension and other benefits adjustment, Tax | 371 | 194 | ||
Amounts to be reclassified from accumulated other comprehensive loss | $572 | $299 |
Employee_Pension_and_Other_Pos9
Employee Pension and Other Postretirement Benefits - Pension and Post retirement Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits | |
Pension Plan and Other Postretirement Benefits Plan | |
2015 | $92 |
2016 | 104 |
2017 | 114 |
2018 | 123 |
2019 | 132 |
Years 2020-2024 | 795 |
Postretirement Benefits | |
Pension Plan and Other Postretirement Benefits Plan | |
2015 | 15 |
2016 | 16 |
2017 | 17 |
2018 | 18 |
2019 | 19 |
Years 2020-2024 | 101 |
Medicare Part D Subsidies | |
Pension Plan and Other Postretirement Benefits Plan | |
2015 | 1 |
2016 | 1 |
2017 | 1 |
2018 | 1 |
2019 | 1 |
Years 2020-2024 | $6 |
Recovered_Sheet9
Employee Pension and Other Postretirement Benefits - Weighted Average Assumptions, PV of Benefit Obligations and Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Discount rate in determining net periodic benefit cost prior to Plan amendments | 4.90% | 4.20% | |
Discount rate in determining net periodic benefit cost after Plan amendments | 4.50% | ||
Discount rate in determining benefit obligations at year end | 3.90% | 4.90% | |
Rate of increase in future compensation levels for determining net periodic benefit cost | 4.70% | 4.70% | |
Rate of increase in future compensation levels for determining benefit obligations at year end | 4.70% | 4.70% | |
Expected return on plan assets | 7.50% | 7.50% | |
Service cost | $81 | $87 | $77 |
Interest cost | 105 | 99 | 101 |
Expected return on plan assets | -193 | -166 | -147 |
Amortization of prior service credit | -12 | ||
Recognized net actuarial loss | 59 | 107 | 89 |
Total net periodic benefit cost | 40 | 127 | 120 |
Service cost associated with transferred employees | 6 | ||
Other Benefits | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Discount rate in determining net periodic benefit cost prior to Plan amendments | 4.60% | 3.90% | |
Discount rate in determining net periodic benefit cost after Plan amendments | 4.20% | ||
Discount rate in determining benefit obligations at year end | 3.80% | 4.60% | |
Expected return on plan assets | 7.50% | 7.50% | |
Service cost | 10 | 14 | 14 |
Interest cost | 11 | 11 | 12 |
Expected return on plan assets | -18 | -15 | -13 |
Amortization of prior service credit | -5 | 0 | 1 |
Recognized net actuarial loss | 1 | 7 | 8 |
Total net periodic benefit cost | -1 | 17 | 22 |
Superannuation, SERP and ESBP | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Service cost | 1 | 1 | 2 |
Interest cost | 4 | 3 | 2 |
Recognized net actuarial loss | 2 | 2 | 2 |
Total net periodic benefit cost | $7 | $6 | $6 |
Recovered_Sheet10
Employee Pension and Other Postretirement Benefits - Periodic Benefit Costs, Forecasted (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2015 |
Pension Benefits | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Net actuarial loss | $55 | |
Prior service costs (credits) | 0 | |
Amounts to be reclassified from accumulated other comprehensive loss | 55 | |
Other Benefits | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Net actuarial loss | 0 | |
Prior service costs (credits) | 0 | |
Amounts to be reclassified from accumulated other comprehensive loss | 0 | |
Forecast | Pension Benefits | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Net actuarial loss | 109 | |
Prior service costs (credits) | -18 | |
Amounts to be reclassified from accumulated other comprehensive loss | 91 | |
Forecast | Other Benefits | ||
Pension Plan and Other Postretirement Benefits Plan | ||
Net actuarial loss | 5 | |
Prior service costs (credits) | -8 | |
Amounts to be reclassified from accumulated other comprehensive loss | ($3) |
Recovered_Sheet11
Employee Pension and Other Postretirement Benefits - Weighted Average Healthcare Cost Trend Rates (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assumed weighted-average healthcare cost trend rates | |||
Healthcare cost trend rate assumed for next year | 7.53% | 7.71% | 8.31% |
Rate to which cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Year the rate reaches the ultimate trend rate | 2021 | 2021 | 2021 |
Recovered_Sheet12
Employee Pension and Other Postretirement Benefits - Point Percentage Change in Healthcare Cost Trend Rates (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Effect of one-percentage-point change in assumed healthcare cost trend rates | |
Effect on total of service and interest cost components, One-Percentage- Point Increase | $2 |
Effect on postretirement benefit obligation, One-Percentage- Point Increase | 19 |
Effect on total of service and interest cost components, One-Percentage- Point Decrease | -2 |
Effect on postretirement benefit obligation, One-Percentage- Point Decrease | ($22) |
Recovered_Sheet13
Employee Pension and Other Postretirement Benefits - Executive Supplemental Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plan and Other Postretirement Benefits Plan | |||
Employee pre-tax covered compensation percent | 75.00% | ||
Employee after-tax covered compensation percent | 10.00% | ||
Combined maximum employee contribution percent | 75.00% | ||
Employee pre-tax gross pay for which the employer contributes a match (as a percent) | 4.00% | ||
Contribution plan expenses | $37 | $32 | $29 |
Executive Supplemental Benefits Pension Plan | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Accrued liability for ESBPs | $98 | $85 | |
Matching Range 1 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Company pre-tax compensation match (as a percent) | 100.00% | ||
Employee pre-tax gross pay for which the employer contributes a match (as a percent) | 3.00% | ||
Matching Range 2 | |||
Pension Plan and Other Postretirement Benefits Plan | |||
Company pre-tax compensation match (as a percent) | 50.00% | ||
Employee pre-tax gross pay for which the employer contributes a match (as a percent) | 2.00% |
Other_Noninterest_Expense_Deta
Other Noninterest Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Software | $94 | $83 | $70 |
LIHC investment amortization | 89 | 76 | 63 |
Advertising and public relations | 39 | 61 | 57 |
Communications | 40 | 45 | 39 |
Data processing | 32 | 36 | 36 |
Other | 159 | 150 | 198 |
Total other noninterest expense | $453 | $451 | $463 |
Income_Taxes_Analysis_of_the_E
Income Taxes - Analysis of the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
Net tax effects of: | |||
State income taxes, net of federal income tax benefit | 7.00% | 5.00% | 6.00% |
Tax-exempt interest income | -2.00% | -1.00% | -1.00% |
Tax credits | -13.00% | -13.00% | -10.00% |
Other | -2.00% | -3.00% | -3.00% |
Effective tax rate | 25.00% | 23.00% | 27.00% |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Taxes currently payable: | |||
Federal | $82 | $79 | $93 |
State | 76 | 43 | 32 |
Foreign | 13 | 12 | 14 |
Total currently payable | 171 | 134 | 139 |
Taxes deferred: | |||
Federal | 72 | 71 | 62 |
State | 28 | -8 | 20 |
Foreign | 3 | -2 | -1 |
Total deferred | 103 | 61 | 81 |
Total income tax expense | $274 | $195 | $220 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Balances (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for credit losses | $283 | $287 |
Accrued expense, net | 272 | 216 |
Unrealized losses on pension and postretirement benefits | 389 | 204 |
Unrealized net losses on securities available for sale | 97 | 262 |
Fair value adjustments for valuation of FDIC covered assets | 159 | 183 |
Other | 110 | 97 |
Total deferred tax assets | 1,310 | 1,249 |
Deferred tax liabilities: | ||
Leasing | 759 | 698 |
Intangible assets | 99 | 105 |
Pension liabilities | 389 | 363 |
Other | 5 | 17 |
Total deferred tax liabilities | 1,252 | 1,183 |
Net deferred tax asset | $58 | $66 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | Dec. 31, 2014 |
Deferred tax assets, carryforwards | |
Operating loss carry forward | $38,000,000 |
Tax credit carry forwards | 43,000,000 |
Net valuation allowance | $0 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Positions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Changes in unrecognized tax positions | |||
Balance, beginning of year | $16,000,000 | $269,000,000 | $274,000,000 |
Gross increases as a result of tax positions taken during prior periods | 0 | 1,000,000 | 7,000,000 |
Gross decreases as a result of tax positions taken during prior periods | -10,000,000 | -256,000,000 | -13,000,000 |
Gross increases as a result of tax positions taken during current period | 2,000,000 | 2,000,000 | 1,000,000 |
Balance, end of year | 8,000,000 | 16,000,000 | 269,000,000 |
Unrecognized tax positions disclosures | |||
Unrecognized tax positions that would affect the effective tax rate | 7,000,000 | 12,000,000 | 113,000,000 |
Interest and penalties recognized (reversed) as a component of income tax expense | -3,000,000 | -12,000,000 | -14,000,000 |
Interest and penalties accrued | $0 | $3,000,000 | $15,000,000 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
MUFG Americas Holdings Corporation | ||
Regulatory Capital Requirements | ||
Total risk-based capital ratio before application of new methodology | 10.00% | |
Tier 1 risk-based capital ratio before application of new methodology | 6.00% | |
Tier 1 capital (to risk-weighted assets), Actual | $12,367 | $11,471 |
Total capital (to risk-weighted assets), Actual | 14,246 | 13,499 |
Tier 1 Leverage, Actual | 12,367 | 11,471 |
Tier 1 capital (to risk-weighted assets), ratio, Actual | 12.79% | 12.41% |
Total capital (to risk-weighted assets), ratio, Actual | 14.74% | 14.61% |
Tier 1 leverage, ratio, Actual | 11.25% | 11.27% |
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement | 3,867 | 3,696 |
Total capital (to risk-weighted assets), Minimum Regulatory Requirement | 7,733 | 7,393 |
Tier 1 Leverage, Minimum Regulatory Requirement | 4,396 | 4,073 |
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement | 4.00% | 4.00% |
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement | 8.00% | 8.00% |
Tier 1 Leverage, ratio, Minimum Regulatory Requirement | 4.00% | 4.00% |
Bank | ||
Regulatory Capital Requirements | ||
Common equity tier 1 capital (to risk-weighted assets), Actual | 12,087 | |
Tier 1 capital (to risk-weighted assets), Actual | 12,088 | 11,274 |
Total capital (to risk-weighted assets), Actual | 13,656 | 12,990 |
Tier 1 Leverage, Actual | 12,088 | 11,274 |
Common equity tier 1 capital (to risk-weighted assets), ratio, Actual | 13.09% | |
Tier 1 capital (to risk-weighted assets), ratio, Actual | 13.09% | 12.94% |
Total capital (to risk-weighted assets), ratio, Actual | 14.78% | 14.91% |
Tier 1 leverage, ratio, Actual | 11.09% | 11.13% |
Tier 1 capital (to risk-weighted assets), Minimum Regulatory Requirement | 5,080 | 3,485 |
Total capital (to risk-weighted assets), Minimum Regulatory Requirement | 7,389 | 6,970 |
Tier 1 Leverage, Minimum Regulatory Requirement | 4,361 | 4,051 |
Tier 1 capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement | 5.50% | 4.00% |
Total capital (to risk-weighted assets), ratio, Minimum Regulatory Requirement | 8.00% | 8.00% |
Tier 1 Leverage, ratio, Minimum Regulatory Requirement | 4.00% | 4.00% |
Tier 1 capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | 5,542 | 5,228 |
Total capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions | 9,237 | 8,713 |
Tier 1 Leverage, To Be Well-Capitalized Under Prompt Corrective Action Provisions | $5,063 | |
Tier 1 capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions | 6.00% | 6.00% |
Total capital (to risk-weighted assets), ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions | 10.00% | 10.00% |
Tier 1 Leverage, ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions | 5.00% |
Restrictions_on_Cash_and_Due_f1
Restrictions on Cash and Due from Banks, Securities, Loans and Dividends - Additional Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Cash and Investments [Abstract] | ||
Required reserve balances | $549,000,000 | $398,000,000 |
Loans pledged as collateral for borrowings | 54,200,000,000 | 50,200,000,000 |
Federal Reserve Act restricts the amount and the terms of both credit and non-credit transactions, in percentage | 10.00% | |
Aggregate of loan to non-bank affiliate | 20.00% | |
Outstanding on the number of bankers commercial corporation notes payable | 366,000,000 | |
Outstanding notes payable to all other non-bank affiliates | $121,000,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Guarantees (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Commitments to extend credit | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | ($34,991) |
Issued standby and commercial letters of credit | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | -5,836 |
Maximum term | 1 year |
Carrying value | 4 |
Other commitments | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | ($175) |
Commitments_Contingencies_and_3
Commitments, Contingencies and Guarantees - Additional Information (Details) (Financial guarantee, Interest rate swap contracts, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Financial guarantee | Interest rate swap contracts | |
Guarantee disclosures | |
Current exposure to loss | $20 |
Future exposure to loss | $39 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2008 | Dec. 31, 2013 | Jul. 01, 2014 | Jun. 30, 2013 | ||
Related Party Transaction [Line Items] | ||||||||
Available-for-sale Securities | $13,724,000,000 | $15,817,000,000 | $15,817,000,000 | |||||
Increase in retained earnings | -5,000,000 | [1] | -9,000,000 | -15,000,000 | ||||
Liabilities | 98,463,000,000 | 91,426,000,000 | 91,426,000,000 | |||||
Fees from affiliates | 319,000,000 | 0 | 0 | |||||
Salaries and benefits expense | 1,785,000,000 | 1,631,000,000 | 1,479,000,000 | |||||
Other expense | 2,899,000,000 | 2,777,000,000 | 2,583,000,000 | |||||
Other assets | 4,685,000,000 | 4,854,000,000 | 4,854,000,000 | |||||
Other liabilities | 1,889,000,000 | 1,675,000,000 | 1,675,000,000 | |||||
Noninterest income | 1,123,000,000 | 876,000,000 | 818,000,000 | |||||
BTMU | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other expense | 9,000,000 | 13,000,000 | 18,000,000 | |||||
Unsecured revolving credit facility with BTMU | 500,000,000 | |||||||
Unsecured revolving credit facility years | 3 years | |||||||
Unsecured revolving credit facility amount outstanding | 0 | |||||||
Project Related expenditure | 15,000,000 | 19,000,000 | 39,000,000 | |||||
Common equity contribution received | 1,200,000,000 | |||||||
Derivative notional amount | 634,000,000 | 735,000,000 | 735,000,000 | |||||
Net unrealized losses on derivatives | 1,000,000 | -7,000,000 | ||||||
Noninterest income | 38,000,000 | 33,000,000 | 21,000,000 | |||||
Amount of overdraft balance outstanding | 0 | |||||||
BTMU | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Available-for-sale Securities | 70,000,000 | |||||||
Employee-related liabilities | 30,000,000 | |||||||
Additional paid in capital | 31,000,000 | |||||||
Liabilities | 9,000,000 | |||||||
BTMU | United States [Member] | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of U.S. employees | 2,300 | |||||||
Bank | Subsidiaries | Floating rate subordinated debt due December 2023 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt issued | 750,000,000 | |||||||
UnionBanCal Corporation | ||||||||
Related Party Transaction [Line Items] | ||||||||
Liabilities | 751,000,000 | 765,000,000 | 765,000,000 | |||||
Other expense | 4,000,000 | 4,000,000 | 0 | |||||
Other assets | 4,000,000 | 5,000,000 | 5,000,000 | |||||
Other liabilities | 1,000,000 | 2,000,000 | 2,000,000 | |||||
UnionBanCal Corporation | Subordinated Debt | Floating rate subordinated debt due December 2023 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt issued | 300,000,000 | 300,000,000 | ||||||
Retained Earnings | ||||||||
Related Party Transaction [Line Items] | ||||||||
Increase in retained earnings | -9,000,000 | [1] | ||||||
BTMU | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Fees from affiliates | 319,000,000 | |||||||
Other expense | 14,000,000 | |||||||
Other assets | 61,000,000 | |||||||
Other liabilities | 16,000,000 | |||||||
Support Services [Member] | BTMU | Affiliated Entity [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Fees from affiliates | 206,000,000 | |||||||
Salaries and benefits expense | $193,000,000 | |||||||
[1] | For additional information on the capital contribution, refer to Note 21 to these consolidated financial statements. |
Business_Segments_Additional_I
Business Segments - Additional Information (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
segment | |
Segment Reporting [Abstract] | |
Reportable business segments | 5 |
Consumer and Business Banking Division [Member] [Member] | California | |
Business segments | |
Number of full-service branches | 353 |
Consumer and Business Banking Division [Member] [Member] | Washington and Oregon | |
Business segments | |
Number of full-service branches | 46 |
Commercial Banking | |
Business segments | |
Number of divisions | 5 |
Commercial Banking | Minimum | |
Business segments | |
Corporate customers revenues | 15 |
Commercial Banking | Maximum | |
Business segments | |
Corporate customers revenues | 2,000 |
US Corporate Banking | Minimum | |
Business segments | |
Corporate customers revenues | 2,000 |
Business_Segments_Schedule_of_
Business Segments - Schedule of Segments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business segments | |||
Net interest income (expense) | $2,862 | $2,716 | $2,602 |
Noninterest income | 1,123 | 876 | 818 |
Total income | 3,985 | 3,592 | 3,420 |
Other expense | 2,899 | 2,777 | 2,583 |
(Reversal of) provision for credit losses | 6 | -29 | 8 |
Income before income taxes and including noncontrolling interests | 1,080 | 844 | 829 |
Income tax benefit | 274 | 195 | 220 |
Net Income including Noncontrolling Interests | 806 | 649 | 609 |
Deduct: Net loss from noncontrolling interests | 19 | 18 | 19 |
Net Income Attributable to MUAH | 825 | 667 | 628 |
Total assets, end of period | 113,678 | 105,894 | 97,008 |
Reconciling Items | |||
Business segments | |||
Net interest income (expense) | -394 | -350 | -350 |
Noninterest income | -226 | -205 | -204 |
Total income | -620 | -555 | -554 |
Other expense | -159 | -129 | -132 |
(Reversal of) provision for credit losses | -11 | -3 | 4 |
Income before income taxes and including noncontrolling interests | -450 | -423 | -426 |
Income tax benefit | -177 | -166 | -167 |
Net Income including Noncontrolling Interests | -273 | -257 | -259 |
Net Income Attributable to MUAH | -273 | -257 | -259 |
Total assets, end of period | -3,582 | -2,679 | -1,775 |
Retail Banking and Wealth Markets | Operating segments | |||
Business segments | |||
Net interest income (expense) | 1,385 | 1,348 | 1,201 |
Noninterest income | 330 | 371 | 336 |
Total income | 1,715 | 1,719 | 1,537 |
Other expense | 1,347 | 1,423 | 1,294 |
(Reversal of) provision for credit losses | -7 | -35 | 55 |
Income before income taxes and including noncontrolling interests | 375 | 331 | 188 |
Income tax benefit | 148 | 130 | 74 |
Net Income including Noncontrolling Interests | 227 | 201 | 114 |
Net Income Attributable to MUAH | 227 | 201 | 114 |
Total assets, end of period | 37,722 | 34,421 | 31,809 |
Commercial Banking | Operating segments | |||
Business segments | |||
Net interest income (expense) | 1,016 | 913 | 778 |
Noninterest income | 221 | 193 | 208 |
Total income | 1,237 | 1,106 | 986 |
Other expense | 440 | 406 | 389 |
(Reversal of) provision for credit losses | 21 | 17 | -52 |
Income before income taxes and including noncontrolling interests | 776 | 683 | 649 |
Income tax benefit | 188 | 174 | 179 |
Net Income including Noncontrolling Interests | 588 | 509 | 470 |
Net Income Attributable to MUAH | 588 | 509 | 470 |
Total assets, end of period | 38,727 | 32,661 | 25,318 |
US Corporate Banking | Operating segments | |||
Business segments | |||
Net interest income (expense) | 173 | 137 | 113 |
Noninterest income | 119 | 81 | 72 |
Total income | 292 | 218 | 185 |
Other expense | 112 | 54 | 54 |
(Reversal of) provision for credit losses | -24 | 2 | 21 |
Income before income taxes and including noncontrolling interests | 204 | 162 | 110 |
Income tax benefit | 80 | 64 | 43 |
Net Income including Noncontrolling Interests | 124 | 98 | 67 |
Net Income Attributable to MUAH | 124 | 98 | 67 |
Total assets, end of period | 5,130 | 4,755 | 3,822 |
Transaction Banking | Operating segments | |||
Business segments | |||
Net interest income (expense) | 442 | 446 | 496 |
Noninterest income | 165 | 160 | 167 |
Total income | 607 | 606 | 663 |
Other expense | 363 | 356 | 351 |
(Reversal of) provision for credit losses | -3 | -3 | -1 |
Income before income taxes and including noncontrolling interests | 247 | 253 | 313 |
Income tax benefit | 97 | 99 | 123 |
Net Income including Noncontrolling Interests | 150 | 154 | 190 |
Net Income Attributable to MUAH | 150 | 154 | 190 |
Total assets, end of period | 1,779 | 1,574 | 1,564 |
Investment Banking & Markets | Operating segments | |||
Business segments | |||
Net interest income (expense) | 175 | 184 | 174 |
Noninterest income | 357 | 210 | 207 |
Total income | 532 | 394 | 381 |
Other expense | 166 | 100 | 77 |
(Reversal of) provision for credit losses | 35 | 6 | 6 |
Income before income taxes and including noncontrolling interests | 331 | 288 | 298 |
Income tax benefit | 84 | 78 | 86 |
Net Income including Noncontrolling Interests | 247 | 210 | 212 |
Net Income Attributable to MUAH | 247 | 210 | 212 |
Total assets, end of period | 6,195 | 5,937 | 7,137 |
Other | Operating segments | |||
Business segments | |||
Net interest income (expense) | 65 | 38 | 190 |
Noninterest income | 157 | 66 | 32 |
Total income | 222 | 104 | 222 |
Other expense | 630 | 567 | 550 |
(Reversal of) provision for credit losses | -5 | -13 | -25 |
Income before income taxes and including noncontrolling interests | -403 | -450 | -303 |
Income tax benefit | -146 | -184 | -118 |
Net Income including Noncontrolling Interests | -257 | -266 | -185 |
Deduct: Net loss from noncontrolling interests | 19 | 18 | 19 |
Net Income Attributable to MUAH | -238 | -248 | -166 |
Total assets, end of period | $27,707 | $29,225 | $29,133 |
Condensed_MUFG_Americas_Holdin2
Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements - Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets | ||||
Cash and cash equivalents | $1,759,000,000 | $1,863,000,000 | ||
Other assets | 4,685,000,000 | 4,854,000,000 | ||
Total assets | 113,678,000,000 | 105,894,000,000 | 97,008,000,000 | |
Liabilities and Stockholder's Equity | ||||
Long-term debt | 6,972,000,000 | 6,547,000,000 | ||
Other liabilities | 1,889,000,000 | 1,675,000,000 | ||
Total liabilities | 98,463,000,000 | 91,426,000,000 | ||
Stockholder's equity | 15,215,000,000 | 14,468,000,000 | 12,725,000,000 | 11,801,000,000 |
Total liabilities and stockholder's equity | 113,678,000,000 | 105,894,000,000 | ||
MUFG Americas Holdings Corporation | ||||
Assets | ||||
Cash and cash equivalents | 328,000,000 | 191,000,000 | ||
Investment in subsidiaries | 15,404,000,000 | 14,784,000,000 | ||
Other assets | 4,000,000 | 5,000,000 | ||
Total assets | 15,736,000,000 | 14,980,000,000 | ||
Liabilities and Stockholder's Equity | ||||
Long-term debt | 750,000,000 | 763,000,000 | ||
Other liabilities | 1,000,000 | 2,000,000 | ||
Total liabilities | 751,000,000 | 765,000,000 | ||
Stockholder's equity | 14,985,000,000 | 14,215,000,000 | ||
Total liabilities and stockholder's equity | $15,736,000,000 | $14,980,000,000 |
Condensed_MUFG_Americas_Holdin3
Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements - Statements of Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income: | |||
Total income | $3,985 | $3,592 | $3,420 |
Expense: | |||
Other expense | 2,899 | 2,777 | 2,583 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 1,080 | 844 | 829 |
Income tax benefit | 274 | 195 | 220 |
Equity in undistributed net income (loss) of subsidiaries: | |||
Net Income attributable to MUAH | 825 | 667 | 628 |
MUFG Americas Holdings Corporation | |||
Income: | |||
Dividends from bank subsidiary | 0 | 0 | 950 |
Interest income on advances to subsidiaries and deposits in bank | 0 | 0 | 1 |
Total income | 0 | 0 | 951 |
Expense: | |||
Interest expense | 21 | 31 | 23 |
Other expense | 4 | 4 | 0 |
Total interest expense | 25 | 35 | 23 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | -25 | -35 | 928 |
Income tax benefit | -10 | -14 | -9 |
Income (loss) before equity in undistributed net income of subsidiaries | -15 | -21 | 937 |
Equity in undistributed net income (loss) of subsidiaries: | |||
Bank subsidiary | 761 | 625 | -403 |
Nonbank subsidiaries | 79 | 63 | 94 |
Net Income attributable to MUAH | $825 | $667 | $628 |
Condensed_MUFG_Americas_Holdin4
Condensed MUFG Americas Holdings Corporation Unconsolidated Financial Statements - Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net income | $825 | $667 | $628 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Other, net | 21 | -37 | -70 |
Cash Flows from Investing Activities: | |||
Net cash acquired from (paid for) acquisitions | 0 | -3,185 | 53 |
Cash Flows from Financing Activities: | |||
Capital contribution from BTMU | 0 | 1,200 | 0 |
Proceeds from issuance of subordinated loan due to BTMU | 0 | 1,050 | 0 |
Other, net | -25 | -25 | 1 |
Net change in cash and cash equivalents | -452 | 712 | 1,296 |
Cash and cash equivalents at beginning of period | 6,203 | 5,491 | 4,195 |
Cash and cash equivalents at end of period | 5,751 | 6,203 | 5,491 |
MUFG Americas Holdings Corporation | |||
Cash Flows from Operating Activities: | |||
Net income | 825 | 667 | 628 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in undistributed net (income) loss of subsidiaries | -840 | -688 | 309 |
Other, net | 1 | 14 | -14 |
Net cash provided by (used in) operating activities | -14 | -7 | 923 |
Cash Flows from Investing Activities: | |||
Investments in and advances to subsidiaries | 0 | -1,700 | 0 |
Repayment of investments in and advances to subsidiaries | 165 | 35 | 650 |
Net cash acquired from (paid for) acquisitions | 0 | 0 | -1,457 |
Net cash used in investing activities | 165 | -1,665 | -807 |
Cash Flows from Financing Activities: | |||
Capital contribution from BTMU | 0 | 1,200 | 0 |
Proceeds from issuance of subordinated loan due to BTMU | 0 | 300 | 0 |
Proceeds from issuance of senior debt | 0 | 0 | 397 |
Repayment of subordinated debt | 0 | -400 | 0 |
Repayment of junior subordinated debt | -14 | 0 | 0 |
Other, net | 0 | 0 | -2 |
Net cash provided by (used in) financing activities | -14 | 1,100 | 395 |
Net change in cash and cash equivalents | 137 | -572 | 511 |
Cash and cash equivalents at beginning of period | 191 | 763 | 252 |
Cash and cash equivalents at end of period | $328 | $191 | $763 |