Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Entity Registrant Name | E TRADE FINANCIAL CORP | |
Entity Central Index Key | 1,015,780 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Common stock shares outstanding | 292,967,985 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Operating interest income | $ 297 | $ 315 | $ 923 | $ 953 |
Operating interest expense | (34) | (50) | (122) | (158) |
Net operating interest income | 263 | 265 | 801 | 795 |
Commissions | 108 | 108 | 325 | 341 |
Fees and service charges | 52 | 49 | 159 | 148 |
Principal transactions | 0 | 0 | 0 | 10 |
Gains (losses) on securities and other | (360) | 8 | (340) | 30 |
Other revenues | 10 | 10 | 29 | 29 |
Total non-interest income (loss) | (190) | 175 | 173 | 558 |
Total net revenue | 73 | 440 | 974 | 1,353 |
Provision (benefit) for loan losses | (25) | 10 | (17) | 26 |
Operating expense: | ||||
Compensation and benefits | 123 | 108 | 354 | 305 |
Advertising and market development | 23 | 21 | 89 | 88 |
Clearing and servicing | 23 | 21 | 72 | 72 |
FDIC insurance premiums | 7 | 18 | 36 | 61 |
Professional services | 24 | 27 | 77 | 79 |
Occupancy and equipment | 21 | 22 | 64 | 59 |
Communications | 24 | 17 | 62 | 53 |
Depreciation and amortization | 21 | 19 | 61 | 60 |
Amortization of other intangibles | 5 | 5 | 15 | 16 |
Restructuring and other exit activities | 2 | 2 | 8 | 6 |
Other operating expenses | 20 | 17 | 64 | 52 |
Total operating expense | 293 | 277 | 902 | 851 |
Income (loss) before other income (expense) and income tax expense (benefit) | (195) | 153 | 89 | 476 |
Other income (expense): | ||||
Corporate interest expense | (14) | (29) | (50) | (86) |
Losses on early extinguishment of debt | (39) | 0 | (112) | (12) |
Other | 2 | 1 | 7 | 3 |
Total other income (expense) | (51) | (28) | (155) | (95) |
Income (loss) before income tax expense (benefit) | (246) | 125 | (66) | 381 |
Income tax expense (benefit) | (93) | 39 | (245) | 129 |
Net income (loss) | $ (153) | $ 86 | $ 179 | $ 252 |
Basic earnings (loss) per share (in dollars per share) | $ (0.53) | $ 0.30 | $ 0.62 | $ 0.87 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.53) | $ 0.29 | $ 0.61 | $ 0.86 |
Shares used in computation of per share data: | ||||
Basic (in thousands) | 290,480 | 288,843 | 290,105 | 288,536 |
Diluted (in thousands) | 290,480 | 294,119 | 294,998 | 293,968 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (153) | $ 86 | $ 179 | $ 252 | |
Available-for-sale securities: | |||||
Unrealized gains (losses), net(1) | [1] | 17 | (20) | (3) | 143 |
Reclassification into earnings, net(2) | [2] | (7) | (7) | (18) | (21) |
Net change from available-for-sale securities | 10 | (27) | (21) | 122 | |
Cash flow hedging instruments: | |||||
Unrealized gains (losses), net(3) | [3] | (5) | 5 | (10) | (27) |
Reclassification into earnings, net(4) | [4] | 239 | 18 | 271 | 59 |
Net change from cash flow hedging instruments | 234 | 23 | 261 | 32 | |
Other comprehensive income | 244 | (4) | 240 | 154 | |
Comprehensive income | $ 91 | $ 82 | $ 419 | $ 406 | |
[1] | Amounts are net of provision of income taxes of $11 million and benefit from income taxes of $2 million for the three and nine months ended September 30, 2015, respectively, compared to benefit from income taxes of $13 million and provision for income taxes of $86 million for the three and nine months ended September 30, 2014. | ||||
[2] | Amounts are net of provision for income taxes of $4 million and $11 million for the three and nine months ended September 30, 2015, respectively, compared to provision for income taxes of $5 million and $13 million for the three and nine months ended September 30, 2014. | ||||
[3] | Amounts are net of benefit from income taxes of $3 million and $7 million for the three and nine months ended September 30, 2015, respectively, compared to provision for income taxes of $2 million and benefit from income taxes of $21 million for the three and nine months ended September 30, 2014. | ||||
[4] | Amounts are net of benefit from income taxes of $148 million and $168 million for the three and nine months ended September 30, 2015, respectively, compared to benefit from income taxes of $12 million and $38 million for the three and nine months ended September 30, 2014. |
CONSOLIDATED STATEMENT OF COMP4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 11 | $ (13) | $ (2) | $ 86 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 4 | 5 | 11 | 13 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (3) | 2 | (7) | (21) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | $ (148) | $ (12) | $ (168) | $ (38) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and equivalents | $ 1,453 | $ 1,783 |
Cash required to be segregated under federal or other regulations | 143 | 555 |
Available-for-sale securities | 10,680 | 12,388 |
Held-to-maturity securities (fair value of $11,883 and $12,476 at September 30, 2015 and December 31, 2014, respectively) | 11,586 | 12,248 |
Margin receivables | 7,933 | 7,675 |
Loans receivable, net (net of allowance for loan losses of $376 and $404 at September 30, 2015 and December 31, 2014, respectively) | 4,906 | 5,979 |
Investment in FHLB stock | 15 | 88 |
Property and equipment, net | 236 | 245 |
Goodwill | 1,792 | 1,792 |
Other intangibles, net | 179 | 194 |
Other assets | 2,282 | 2,583 |
Total assets | 41,205 | 45,530 |
Liabilities: | ||
Deposits | 25,610 | 24,890 |
Securities sold under agreements to repurchase | 0 | 3,672 |
Customer payables | 6,040 | 6,455 |
FHLB advances and other borrowings | 414 | 1,299 |
Corporate debt | 1,023 | 1,366 |
Other liabilities | 2,306 | 2,473 |
Total liabilities | $ 35,393 | $ 40,155 |
Commitments and contingencies (see Note 14) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value, shares authorized: 400,000,000 at September 30, 2015 and December 31, 2014; shares issued and outstanding: 290,428,994 and 289,272,576 at September 30, 2015 and December 31, 2014, respectively | $ 3 | $ 3 |
Additional paid-in-capital | 7,368 | 7,350 |
Accumulated deficit | (1,550) | (1,729) |
Accumulated other comprehensive loss | (9) | (249) |
Total shareholders’ equity | 5,812 | 5,375 |
Total liabilities and shareholders’ equity | $ 41,205 | $ 45,530 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Held-to-maturity Securities, Fair Value | $ 11,883 | $ 12,476 |
Allowance for loan losses | $ 376 | $ 404 |
Shareholders’ equity: | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock shares issued (in shares) | 290,428,994 | 289,272,576 |
Common stock shares outstanding (in shares) | 290,428,994 | 289,272,576 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance, at Dec. 31, 2013 | $ 4,856 | $ 3 | $ 7,328 | $ (2,022) | $ (453) |
Balance, (in shares) at Dec. 31, 2013 | 287 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 252 | 252 | |||
Other comprehensive income | 154 | 154 | |||
Conversion of convertible debentures | 1 | $ 0 | 1 | ||
Conversion of convertible debentures, shares | 0 | ||||
Exercise of stock options and related tax effects | 6 | $ 0 | 6 | ||
Exercise of stock options and related tax effects, shares | 1 | ||||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | (13) | $ 0 | (13) | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 18 | 18 | |||
Balance, at Sep. 30, 2014 | 5,274 | $ 3 | 7,340 | (1,770) | (299) |
Balance, (in shares) at Sep. 30, 2014 | 289 | ||||
Balance, at Dec. 31, 2014 | 5,375 | $ 3 | 7,350 | (1,729) | (249) |
Balance, (in shares) at Dec. 31, 2014 | 289 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 179 | 179 | |||
Other comprehensive income | 240 | 240 | |||
Conversion of convertible debentures | 4 | 4 | |||
Conversion of convertible debentures, shares | 0 | ||||
Exercise of stock options and related tax effects | 2 | $ 0 | 2 | ||
Exercise of stock options and related tax effects, shares | 0 | ||||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | (11) | $ 0 | (11) | ||
Issuance of restricted stock, net of forfeitures and retirements to pay taxes, shares | 1 | ||||
Share-based compensation | 23 | 23 | |||
Balance, at Sep. 30, 2015 | $ 5,812 | $ 3 | $ 7,368 | $ (1,550) | $ (9) |
Balance, (in shares) at Sep. 30, 2015 | 290 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 179 | $ 252 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for loan losses | (17) | 26 |
Depreciation and amortization (including discount amortization and accretion) | 271 | 245 |
Losses (gains) on securities and other | 340 | (30) |
Losses on early extinguishment of debt | 37 | 0 |
Share-based compensation | 23 | 18 |
Deferred taxes expense (benefit) | (242) | 128 |
Other | (7) | (5) |
Net effect of changes in assets and liabilities: | ||
Decrease in cash required to be segregated under federal or other regulations | 412 | 458 |
Increase in margin receivables | (258) | (1,764) |
Increase (decrease) in customer payables | (415) | 216 |
Decrease (increase) in other assets | 365 | (84) |
Increase (decrease) in other liabilities | (20) | 908 |
Net cash provided by operating activities | 668 | 368 |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (3,550) | (1,346) |
Proceeds from sales, maturities of and principal payments on available-for-sale securities | 5,095 | 2,592 |
Purchases of held-to-maturity securities | (898) | (2,437) |
Proceeds from maturities of and principal payments on held-to-maturity securities | 1,483 | 829 |
Proceeds from sale of loans | 40 | 802 |
Net decrease in loans receivable | 1,030 | 973 |
Capital expenditures for property and equipment | (52) | (62) |
Proceeds and cash transferred from sale of G1 Execution Services, Inc. | 0 | 67 |
Proceeds from sale of real estate owned and repossessed assets | 24 | 27 |
Net cash flow from derivatives hedging assets | 1 | (6) |
Other | 75 | (15) |
Net cash provided by investing activities | 3,248 | 1,424 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 720 | (1,044) |
Net decrease in securities sold under agreements to repurchase | (3,672) | (626) |
Advances from FHLB | 810 | 560 |
Payments on advances from FHLB | (1,730) | (560) |
Net proceeds from issuance of senior notes | 460 | 0 |
Payments on senior notes | (800) | 0 |
Payments on trust preferred securities | (10) | 0 |
Net cash flow from derivatives hedging liabilities | (16) | (156) |
Other | (8) | 5 |
Net cash used in financing activities | (4,246) | (1,821) |
Decrease in cash and equivalents | (330) | (29) |
Cash and equivalents, beginning of period | 1,783 | 1,838 |
Cash and equivalents, end of period | 1,453 | 1,809 |
Supplemental Disclosures [Abstract] | ||
Cash paid for interest | 189 | 179 |
Cash paid (refund received) for income taxes | 4 | (2) |
Non-cash investing and financing activities: | ||
Transfers of loans held-for-investment to loans held-for-sale | 39 | 795 |
Transfers from loans to other real estate owned and repossessed assets | 20 | 40 |
Transfers from other real estate owned and repossessed assets to loans | 0 | 16 |
Conversion of convertible debentures to common stock | $ 4 | $ 1 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization —E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services primarily to individual retail investors under the brand "E*TRADE Financial." The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors. As of December 31, 2014, the Company's two U.S. broker-dealers, E*TRADE Clearing and E*TRADE Securities, were operating subsidiaries of E*TRADE Bank, a wholly-owned operating subsidiary of E*TRADE Financial Corporation. The Company received regulatory approval to move both E*TRADE Clearing and E*TRADE Securities out from under E*TRADE Bank. E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. Basis of Presentation —The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. However, investments in marketable equity securities where the Company does not have the ability to exercise significant influence over the entities are accounted for as available-for-sale equity securities. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity ("VIE") model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of the VIE, which requires the Company to possess both: 1) the power to direct activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. Beginning in the first quarter of 2015, the Company reclassified the revenue earned on customer assets held by third parties from operating interest income to fees and service charges and prior periods have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The Company reports corporate interest expense separately from operating interest expense. The Company believes reporting these items separately provides a clearer picture of the financial performance of the Company’s operations than would a presentation that combined these two items. Operating interest expense is generated from the operations of the Company. Corporate debt is the primary source of corporate interest expense. Similarly, the Company reports corporate gains (losses) on sales of investments separately from gains (losses) on securities and other . The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Gains (losses) on securities and other are the result of activities in the Company’s operations, namely its balance sheet management segment. Corporate gains (losses) on sales of investments are reported in other income (expense) on the consolidated statement of income (loss). The accompanying unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2014 . Use of Estimates —Preparing the Company's consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company’s financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. Financial Statement Descriptions and Related Accounting Policies Margin Receivables —The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $10.8 billion at both September 30, 2015 and December 31, 2014 . Of this amount, $3.1 billion and $2.9 billion had been pledged or sold in connection with securities loans and deposits with clearing organizations at September 30, 2015 and December 31, 2014 , respectively. Allowance for Loan Losses —The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio as of the balance sheet date. In determining the adequacy of the allowance, the Company performs ongoing evaluations of the loan portfolio and loss forecasting assumptions. As of September 30, 2015, the allowance for loan losses was $376 million on $5.3 billion of total loans receivable designated as held-for-investment. For loans that are not TDRs, the Company established a general allowance and evaluated the adequacy of the allowance for loan losses by loan portfolio segment: one- to four-family, home equity and consumer and other. For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses continues to be based on a variety of quantitative and qualitative factors, including: • the composition and quality of the portfolio; • delinquency levels and trends; • current and historical charge-off and loss experience; • the Company's historical loss mitigation experience; • the condition of the real estate market and geographic concentrations within the loan portfolio; • the interest rate climate; • the overall availability of housing credit; and • general economic conditions. Total loans receivable designated as held-for-investment decreased $1.1 billion during the nine months ended September 30, 2015. The allowance for loan losses was $376 million , or 7% of total loans receivable, as of September 30, 2015 compared to $404 million , or 6% of total loans receivable, as of December 31, 2014. The decrease in the allowance for loan losses primarily resulted from the following factors: • better than expected loan performance, including favorable delinquency trends, faster prepayments across the portfolios and lower than expected defaults on balloon loans maturing; and • the resolution of uncertainties related to servicer transfers, which drove the majority of the decrease in the qualitative component. During the nine months ended September 30, 2015, the Company also enhanced its modeling practices for forecasting loan losses in the one- to four-family and home equity loan portfolios. The Company implemented a new loss forecasting model during the second quarter of 2015; however, there were no material changes in assumptions and methodologies in the new model and the implementation did not have a material impact on the allowance for loan losses. The implementation process triggered a re-evaluation of the time period of forecasted loan losses included in the general allowance. Based on reviews of recent loan performance, current economic conditions and their impact on borrower behavior, the Company extended the loss emergence period from 12 months to 18 months for both portfolios. The extended emergence period resulted in approximately $40 million of additional allowance for loan losses as of June 30, 2015. The new loss forecasting model continues to be sensitive to key risk factors within the one- to four-family and home equity loan portfolios, which include but are not limited to loan type, delinquency history, LTV/CLTV ratio and borrowers’ credit scores and the forecasted loan losses are estimated based on these types of loan-level attributes. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. The Company also made the following enhancements to its quantitative allowance methodology for identifying higher risk loans in one- to four-family and home equity loan portfolios that resulted in approximately $40 million of additional allowance for loan losses as of September 30, 2015: • During the second quarter of 2015, the Company extended the period of our forecasted loan losses captured within the general allowance to include the total probable loss over the remaining life on a subset of higher risk interest-only loans in the one- to four-family loan portfolio. • During the third quarter of 2015, the Company further refined the criteria utilized in identifying higher risk home equity lines of credit for which the total probable loss over the remaining life is included within the general allowance. The general allowance for loan losses also included a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three main factors: external factors, internal factors, and portfolio specific factors. The uncertainty related to these factors may expand over time, temporarily increasing the qualitative component in advance of the more precise identification of these probable losses being captured within the quantitative component of the general allowance. The total qualitative component was $12 million and $37 million as of September 30, 2015 and December 31, 2014 , respectively. Share-Based Payments —The Company issues restricted stock awards to the Company's Board of Directors and restricted stock units to certain of the Company's officers and employees. Each restricted stock unit can be converted into one share of the Company’s common stock upon vesting. These restricted stock awards and units are issued at the fair value on the date of grant and vest ratably over the requisite service period, generally one to four years. Beginning in 2015, the Company also issued performance share units to certain of the Company’s officers. Each performance share unit can be converted into one share of the Company’s common stock upon vesting. Vesting of performance share units is contingent upon achievement of certain predefined individual and Company performance targets. These performance share units are issued at the fair value on the date of grant and vest on a graded basis over the requisite service period, which is one to two years. The Company records share-based compensation expense in accordance with the stock compensation accounting guidance. The Company recognizes compensation expense at the grant date fair value of a share-based payment award over the requisite service period less estimated forfeitures. Compensation expense for performance share units is also adjusted based on the Company’s estimated outcome of meeting the performance conditions. Share-based compensation expense is included in the compensation and benefits line item. New Accounting and Disclosure Guidance —Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. Accounting for Investments in Qualified Affordable Housing Projects In January 2014, the FASB amended the accounting guidance for investments in qualified affordable housing projects. The amended accounting guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the consolidated statement of income (loss) as a component of income tax expense. The Company adopted the amended accounting guidance for its qualifying investments on a full retrospective basis for annual and interim periods beginning on January 1, 2015. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows for the periods presented. As of September 30, 2015 , the carrying value of these investments was $34 million and is included within other assets in the consolidated balance sheet. Presentation and Disclosure of Discontinued Operations In April 2014, the FASB amended the presentation and disclosure guidance on disposal transactions. The amended guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The amended guidance became effective for all disposals or classifications as held for sale occurring in annual and interim periods beginning on January 1, 2015 for the Company. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Revenue Recognition on Contracts with Customers In May 2014, the FASB amended the guidance on revenue recognition on contracts with customers. The new standard outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The amended guidance will be effective for annual and interim periods beginning on January 1, 2018 for the Company and may be applied on either a full retrospective or modified retrospective basis. Early adoption is permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. Accounting and Disclosures for Repurchase Agreements In June 2014, the FASB amended the accounting and disclosure guidance on repurchase agreements. The amended guidance requires entities to account for repurchase-to-maturity transactions as secured borrowings, eliminates accounting guidance on linked repurchase financing transactions, and expands the disclosure requirements related to transfers of financial assets accounted for as sales and as secured borrowings. The amended accounting guidance and the amended disclosure guidance for transfers of financial assets accounted for as sales became effective for annual and interim periods beginning on January 1, 2015 for the Company and was applied using a cumulative-effect approach as of that date. The adoption of this amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. The amended disclosure guidance for transfers of financial assets accounted for as secured borrowings became effective for annual periods beginning on January 1, 2015 and interim periods beginning on April 1, 2015 for the Company. The Company's disclosures in Note 4—Offsetting Assets and Liabilities reflect the adoption of this amended disclosure guidance. Classification of Government-Guaranteed Mortgage Loans upon Foreclosure In August 2014, the FASB amended the accounting and disclosure guidance related to the classification of certain government-guaranteed mortgage loans upon foreclosure. The amended guidance requires entities to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. The separate other receivable is recorded based on the amount of principal and interest expected to be recovered under the guarantee. The amended guidance became effective for annual and interim periods beginning on January 1, 2015 for the Company and was applied on a modified retrospective basis to qualifying loans at that date. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB amended the guidance related to an entity’s evaluations and disclosures of going concern uncertainties. The new guidance requires management to perform interim and annual assessments of the entity’s ability to continue as a going concern within one year of the date the financial statements are issued, and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amended guidance will be effective for the Company for annual periods beginning on January 1, 2016 and for interim periods beginning on January 1, 2017. Early adoption is permitted. The adoption of the amended guidance will not impact the Company’s financial condition, results of operations or cash flows. Consolidation In February 2015, the FASB amended the guidance on consolidation of certain legal entities. The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and clarifies how to determine whether a group of equity holders has power over an entity. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or modified retrospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. Presentation of Debt Issuance Costs In April 2015, the FASB amended the presentation guidance on debt issuance costs. The amended presentation guidance requires that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB issued additional guidance clarifying that debt issuance costs related to line-of-credit arrangements may be presented as an asset in an entity’s balance sheet, regardless of whether there are any outstanding borrowings on the arrangement. As this guidance is consistent with the Company's historical presentation of debt issuance costs, the Company's adoption of the amended guidance as of January 1, 2015 did not impact the Company’s financial condition, results of operations or cash flows. Accounting for Customer Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB amended the accounting guidance on customer fees paid in a cloud computing arrangement. The amended guidance requires that internal-use software accessed by a customer in a cloud computing arrangement be accounted for as a software license if specific criteria are met; otherwise they should be accounted for as service contracts. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or prospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Operating Interest Income and O
Operating Interest Income and Operating Interest Expense | 9 Months Ended |
Sep. 30, 2015 | |
Operating Interest Income and Operating Interest Expense Disclosure [Abstract] | |
OPERATING INTEREST INCOME AND OPERATING INTEREST EXPENSE | OPERATING INTEREST INCOME AND OPERATING INTEREST EXPENSE The following table shows the components of operating interest income and operating interest expense (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Operating interest income: Loans $ 58 $ 70 $ 177 $ 231 Available-for-sale securities 56 69 188 220 Held-to-maturity securities 85 81 259 240 Margin receivables 70 67 208 194 Securities borrowed and other 28 28 91 68 Total operating interest income 297 315 923 953 Operating interest expense: Securities sold under agreements to repurchase (1) (18 ) (30 ) (69 ) (95 ) FHLB advances and other borrowings (1) (12 ) (16 ) (43 ) (50 ) Deposits (1 ) (2 ) (4 ) (6 ) Customer payables and other (3 ) (2 ) (6 ) (7 ) Total operating interest expense (34 ) (50 ) (122 ) (158 ) Net operating interest income $ 263 $ 265 $ 801 $ 795 (1) The Company terminated $4.4 billion of repurchase agreements and FHLB advances at E*TRADE Bank in September 2015. See Note 8—Securities Sold Under Agreements to Repurchase, FHLB Advances and Other Borrowings for additional information. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company may use various valuation approaches, including market, income and/or cost approaches. The fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. Accordingly, even when market assumptions are not readily available, the Company’s own assumptions reflect those that market participants would use in pricing the asset or liability at the measurement date. The fair value measurement accounting guidance describes the following three levels used to classify fair value measurements: • Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company. • Level 2—Quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3—Unobservable inputs that are significant to the fair value of the assets or liabilities. The availability of observable inputs can vary and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to a fair value measurement requires judgment and consideration of factors specific to the asset or liability. Recurring Fair Value Measurement Techniques Residential Mortgage-backed Securities The Company’s residential mortgage-backed securities portfolio primarily comprised agency mortgage-backed securities and CMOs. Agency mortgage-backed securities and CMOs are gu aranteed by U.S. government sponsored enterprises and federal agencies. The weighted average coupon rates for the available-for-sale residenti al mortgage-backed securities at September 30, 2015 are shown in the following table: Weighted Average Coupon Rate Agency mortgage-backed securities 2.94 % Agency CMOs 2.80 % The fair value of agency mortgage-backed securities was determined using a market approach with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs was determined using market and income approaches with the Company’s own trading activities for identical or similar instruments. Agency mortgage-backed securities and CMOs were categorized in Level 2 of the fair value hierarchy. Other Debt Securities The fair value measurements of agency debentures were classified as Level 2 of the fair value hierarchy as they were based on quoted market prices observable in the marketplace. The fair value measurements of agency debt securities were determined using market and income approaches along with the Company’s own trading activities for identical or similar instruments and were categorized in Level 2 of the fair value hierarchy. The Company’s municipal bonds are revenue bonds issued by state and other local government agencies. The valuation of corporate bonds is impacted by the credit worthiness of the corporate issuer. All of the Company’s municipal bonds and corporate bonds were rated investment grade at September 30, 2015 . These securities were valued using a market approach with pricing service valuations corroborated by recent market transactions for identical or similar bonds. Municipal bonds and corporate bonds were categorized in Level 2 of the fair value hierarchy. Publicly Traded Equity Securities The fair value measurements of the Company's publicly traded equity securities were classified as Level 1 of the fair value hierarchy as they were based on quoted market prices in active markets. Derivative Instruments Interest rate swap and option contracts were valued with an income approach using pricing models that are commonly used by the financial services industry. The market observable inputs used in the pricing models include the swap curve, the volatility surface, and prime or overnight indexed swap basis from a financial data provider. The Company does not consider these models to involve significant judgment on the part of management, and the Company corroborated the fair value measurements with counterparty valuations. The Company’s derivative instruments were categorized in Level 2 of the fair value hierarchy. The consideration of credit risk, the Company’s or the counterparty’s, did not result in an adjustment to the valuation of its derivative instruments in the periods presented. Nonrecurring Fair Value Measurement Techniques Certain other assets are recorded at fair value on a nonrecurring basis: 1) one- to four-family and home equity loans in which the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs has been charged-off; and 2) real estate owned that is carried at the lower of the property’s carrying value or fair value less estimated selling costs. The Company evaluates and reviews assets that have been subject to fair value measurement requirements on a quarterly basis in accordance with policies and procedures that were designed to be in compliance with guidance from the Company’s regulators. These policies and procedures govern the frequency of the review, the use of acceptable valuation methods, and the consideration of estimated selling costs. Loans Receivable Loans that have been delinquent for 180 days or that are in bankruptcy and certain TDR loan modifications are charged-off based on the estimated current value of the underlying property less estimated selling costs. Property valuations for these one- to four-family and home equity loans are based on the most recent "as is" property valuation data available, which may include appraisals, broker price opinions, automated valuation models or updated values using home price indices. Subsequent to the recording of an initial fair value measurement, these loans continue to be measured at fair value on a nonrecurring basis, utilizing the estimated value of the underlying property less estimated selling costs. These property valuations are updated on a monthly, quarterly or semi-annual basis depending on the type of valuation initially used. If the value of the underlying property has declined, an additional charge-off is recorded. If the value of the underlying property has increased, previously charged-off amounts are not reversed. If the valuation data obtained is significantly different from the valuation previously received, the Company reviews additional property valuation data to corroborate or update the valuation. Real Estate Owned Property valuations for real estate owned are based on the lowest value of the most recent property valuation data available, which may include appraisals, listing prices or approved offer prices. Nonrecurring fair value measurements on one- to four-family and home equity loans and real estate owned were classified as Level 3 of the fair value hierarchy as the valuations included unobservable inputs that were significant to the fair value. The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at September 30, 2015 : Unobservable Inputs Average Range Loans receivable: One- to four-family Appraised value $ 378,500 $15,000-$1,750,000 Home equity Appraised value $ 272,300 $9,000-$1,300,000 Real estate owned Appraised value $ 336,900 $23,500-$1,400,000 Recurring and Nonrecurring Fair Value Measurements Assets and liabilities measured at fair value at September 30, 2015 and December 31, 2014 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value September 30, 2015: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ — $ 10,039 $ — $ 10,039 Agency debentures — 569 — 569 Municipal bonds — 36 — 36 Corporate bonds — 4 — 4 Total debt securities — 10,648 — 10,648 Publicly traded equity securities 32 — — 32 Total available-for-sale securities 32 10,648 — 10,680 Other assets: Derivative assets (1) — 1 — 1 Total assets measured at fair value on a recurring basis (2) $ 32 $ 10,649 $ — $ 10,681 Liabilities Derivative liabilities (1) $ — $ 89 $ — $ 89 Total liabilities measured at fair value on a recurring basis (2) $ — $ 89 $ — $ 89 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 33 $ 33 Home equity — — 19 19 Total loans receivable — — 52 52 Real estate owned — — 24 24 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 76 $ 76 (1) All derivative assets and liabilities were interest rate contracts at September 30, 2015 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 26% and less than 1% of the Company’s total assets and total liabilities, respectively, at September 30, 2015 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at September 30, 2015 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2014: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ — $ 11,164 $ — $ 11,164 Agency debentures — 648 — 648 Agency debt securities — 499 — 499 Municipal bonds — 40 — 40 Corporate bonds — 4 — 4 Total debt securities — 12,355 — 12,355 Publicly traded equity securities 33 — — 33 Total available-for-sale securities 33 12,355 — 12,388 Other assets: Derivative assets (1) — 24 — 24 Total assets measured at fair value on a recurring basis (2) $ 33 $ 12,379 $ — $ 12,412 Liabilities Derivative liabilities (1) $ — $ 66 $ — $ 66 Total liabilities measured at fair value on a recurring basis (2) $ — $ 66 $ — $ 66 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 46 $ 46 Home equity — — 32 32 Total loans receivable — — 78 78 Real estate owned — — 38 38 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 116 $ 116 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2014 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 27% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2014 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2014 , and for which a fair value measurement was recorded during the period. The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 1 $ 2 $ 6 $ 9 Home equity 4 5 12 25 Total losses on loans receivable measured at fair value $ 5 $ 7 $ 18 $ 34 Losses (gains) on real estate owned measured at fair value $ — $ — $ 1 $ (1 ) Transfers Between Levels 1 and 2 For assets and liabilities measured at fair value on a recurring basis, the Company’s transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period on a quarterly basis. The Company had no transfers between Level 1 and 2 during the nine months ended September 30, 2015 and 2014 . Recurring Fair Value Measurements Categorized within Level 3 At both September 30, 2015 and December 31, 2014 , no assets or liabilities measured at fair value on a recurring basis were categorized within Level 3 of the fair value hierarchy. Fair Value of Financial Instruments Not Carried at Fair Value The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,453 $ 1,453 $ — $ — $ 1,453 Cash required to be segregated under federal or other regulations $ 143 $ 143 $ — $ — $ 143 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 9,109 $ — $ 9,342 $ — $ 9,342 Agency debentures 37 — 38 — 38 Agency debt securities 2,430 — 2,493 — 2,493 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 11,586 $ — $ 11,873 $ 10 $ 11,883 Margin receivables $ 7,933 $ — $ 7,933 $ — $ 7,933 Loans receivable, net: One- to four-family $ 2,599 $ — $ — $ 2,591 $ 2,591 Home equity 1,944 — — 1,780 1,780 Consumer and other 363 — — 372 372 Total loans receivable, net (1) $ 4,906 $ — $ — $ 4,743 $ 4,743 Investment in FHLB stock $ 15 $ — $ — $ 15 $ 15 Deposits paid for securities borrowed $ 95 $ — $ 95 $ — $ 95 Liabilities Deposits $ 25,610 $ — $ 25,610 $ — $ 25,610 Customer payables $ 6,040 $ — $ 6,040 $ — $ 6,040 Other borrowings $ 414 $ — $ — $ 252 $ 252 Corporate debt $ 1,023 $ — $ 1,125 $ — $ 1,125 Deposits received for securities loaned $ 1,685 $ — $ 1,685 $ — $ 1,685 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $376 million and loans that are valued at fair value on a nonrecurring basis at September 30, 2015 . December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,783 $ 1,783 $ — $ — $ 1,783 Cash required to be segregated under federal or other regulations $ 555 $ 555 $ — $ — $ 555 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 9,793 $ — $ 9,971 $ — $ 9,971 Agency debentures 164 — 166 — 166 Agency debt securities 2,281 — 2,329 — 2,329 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 12,248 $ — $ 12,466 $ 10 $ 12,476 Margin receivables $ 7,675 $ — $ 7,675 $ — $ 7,675 Loans receivable, net: One- to four-family $ 3,053 $ — $ — $ 2,742 $ 2,742 Home equity 2,475 — — 2,274 2,274 Consumer and other 451 — — 449 449 Total loans receivable, net (1) $ 5,979 $ — $ — $ 5,465 $ 5,465 Investment in FHLB stock $ 88 $ — $ — $ 88 $ 88 Deposits paid for securities borrowed $ 474 $ — $ 474 $ — $ 474 Liabilities Deposits $ 24,890 $ — $ 24,890 $ — $ 24,890 Securities sold under agreements to repurchase $ 3,672 $ — $ 3,681 $ — $ 3,681 Customer payables $ 6,455 $ — $ 6,455 $ — $ 6,455 FHLB advances and other borrowings $ 1,299 $ — $ 922 $ 252 $ 1,174 Corporate debt $ 1,366 $ — $ 1,491 $ — $ 1,491 Deposits received for securities loaned $ 1,649 $ — $ 1,649 $ — $ 1,649 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $404 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2014 . The fair value measurement techniques for financial instruments not carried at fair value on the consolidated balance sheet at September 30, 2015 and December 31, 2014 are summarized as follows: Cash and equivalents, cash required to be segregated under federal or other regulations, margin receivables, deposits paid for securities borrowed, customer payables and deposits received for securities loaned —Fair value is estimated to be carrying value. Held-to-maturity securities —The held-to-maturity securities portfolio included agency mortgage-backed securities and CMOs, agency debentures, agency debt securities, and other non-agency debt securities. The fair value of agency mortgage-backed securities is determined using market and income approaches with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs and agency debt securities is determined using market and income approaches with the Company’s own trading activities for identical or similar instruments. The fair value of agency debentures is based on quoted market prices that were derived from assumptions observable in the marketplace. Fair value of other non-agency debt securities is estimated to be carrying value. Loans receivable, net —Fair value is estimated using a discounted cash flow model. Loans are differentiated based on their individual portfolio characteristics, such as product classification, loan category, pricing features and remaining maturity. Assumptions for expected losses, prepayments and discount rates are adjusted to reflect the individual characteristics of the loans, such as credit risk, coupon, term, and payment characteristics, as well as the secondary market conditions for these types of loans. Although the market for one- to four-family and home equity loan portfolios has improved, given the lack of observability of valuation inputs, these fair value measurements cannot be determined with precision and changes in the underlying assumptions used, including discount rates, could significantly affect the results of current or future fair value estimates. In addition, the amount that would be realized in a forced liquidation, an actual sale or immediate settlement could be significantly lower than both the carrying value and the estimated fair value of the portfolio. Investment in FHLB stock —FHLB stock is carried at cost, which is considered to be a reasonable estimate of fair value. Deposits —Fair value is the amount payable on demand at the reporting date for sweep deposits, complete savings deposits, other money market and savings deposits and checking deposits. For certificates of deposit, fair value is estimated by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities. Securities sold under agreements to repurchase and FHLB advances —Fair value for securities sold under agreements to repurchases and FHLB advances was determined by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities at December 31, 2014 . The Company terminated its repurchase agreements and FHLB advances during the third quarter of 2015 . See Note 8—Securities Sold Under Agreements to Repurchase, FHLB Advances and Other Borrowings for additional information. Other borrowings —For subordinated debentures, fair value is estimated by discounting future cash flows at the rate implied by dealer pricing quotes. Corporate debt —For interest-bearing corporate debt, fair value is estimated using dealer pricing quotes. The fair value of the non-interest-bearing convertible debentures is directly correlated to the intrinsic value of the Company’s underlying stock; therefore, as the price of the Company’s stock increases relative to the conversion price, the fair value of the convertible debentures increases. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | OFFSETTING ASSETS AND LIABILITIES For financial statement purposes, the Company does not offset derivative instruments, repurchase agreements, or securities borrowing and securities lending transactions. These activities are generally transacted under master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course, as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. The following table presents information about these transactions to enable the users of the Company’s financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at September 30, 2015 and December 31, 2014 (dollars in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount September 30, 2015 Assets: Deposits paid for securities borrowed (1)(5) $ 95 $ — $ 95 $ (87 ) $ — $ 8 Total $ 95 $ — $ 95 $ (87 ) $ — $ 8 Liabilities: Deposits received for securities loaned (2)(6) 1,685 — 1,685 (87 ) (1,506 ) 92 Derivative liabilities (2)(3) 20 — 20 — (17 ) 3 Total $ 1,705 $ — $ 1,705 $ (87 ) $ (1,523 ) $ 95 December 31, 2014 Assets: Deposits paid for securities borrowed (1)(5) $ 474 $ — $ 474 $ (188 ) $ (267 ) $ 19 Derivative assets (1)(3) 24 — 24 (15 ) (3 ) 6 Total $ 498 $ — $ 498 $ (203 ) $ (270 ) $ 25 Liabilities: Repurchase agreements (4) $ 3,672 $ — $ 3,672 $ — $ (3,671 ) $ 1 Deposits received for securities loaned (2)(6) 1,649 — 1,649 (188 ) (1,332 ) 129 Derivative liabilities (2)(3) 30 — 30 (15 ) (15 ) — Total $ 5,351 $ — $ 5,351 $ (203 ) $ (5,018 ) $ 130 (1) Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. (2) Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. (3) Excludes net accrued interest payable of $3 million and $7 million at September 30, 2015 and December 31, 2014 , respectively. (4) The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included held-to-maturity securities at amortized cost for September 30, 2015 and available-for-sale securities at fair value and held-to-maturity securities at amortized cost for December 31, 2014 . The Company terminated all of its repurchase agreements during the third quarter of 2015. (5) Included in the gross amounts of deposits paid for securities borrowed was $50 million and $278 million at September 30, 2015 and December 31, 2014 , respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. (6) Included in the gross amounts of deposits received for securities loaned was $929 million and $1.1 billion at September 30, 2015 and December 31, 2014 , respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. Certain types of derivatives that the Company trades are subject to derivatives clearing agreements ("cleared derivatives contracts") under the Dodd-Frank Act. These cleared derivatives contracts enable clearing by a derivatives clearing organization through a clearing member. Under the contracts, the clearing member typically has a one-way right to offset all contracts in the event of the Company’s default or bankruptcy. As such, the cleared derivatives contracts are not bilateral master netting agreements and do not allow for offsetting. At September 30, 2015 and December 31, 2014 , the Company had $1 million and $0 , respectively, in derivative assets of cleared derivatives contracts and $69 million and $36 million , respectively, in derivative liabilities of cleared derivatives contracts. Securities Lending Transactions The Company lends customer equity securities to other broker-dealers in connection with its securities lending activities and receives cash as collateral for the securities loaned. The Company records deposits received for securities loaned in other liabilities on the consolidated balance sheet. At September 30, 2015 , the Company recorded a gross obligation of $1.7 billion as deposits received for securities loaned on its consolidated balance sheet. Securities lending transactions have overnight or continuous remaining contractual maturities. Securities lending transactions expose the Company to counterparty credit risk and market risk associated with the securities loaned under these transactions. To manage the counterparty risk, the Company maintains internal standards for approving counterparties, reviews and analyzes the credit rating of each counterparty, and monitors its positions with each counterparty on an ongoing basis. In addition, for certain of the Company's securities lending transactions, the Company uses a program with a clearing organization that guarantees the return of securities to the Company. The Company manages its exposure to market risk associated with the securities loaned under these transactions by using collateral arrangements that require additional collateral to be obtained from or excess collateral to be returned to the counterparties based on changes in market value, to maintain specified collateral levels. |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2015 and December 31, 2014 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value September 30, 2015: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 9,996 $ 101 $ (58 ) $ 10,039 Agency debentures 551 24 (6 ) 569 Municipal bonds 35 1 — 36 Corporate bonds 5 — (1 ) 4 Total debt securities 10,587 126 (65 ) 10,648 Publicly traded equity securities (1) 32 — — 32 Total available-for-sale securities $ 10,619 $ 126 $ (65 ) $ 10,680 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 9,109 $ 255 $ (22 ) $ 9,342 Agency debentures 37 1 — 38 Agency debt securities 2,430 64 (1 ) 2,493 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 11,586 $ 320 $ (23 ) $ 11,883 December 31, 2014: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 11,156 $ 113 $ (105 ) $ 11,164 Agency debentures 620 28 — 648 Agency debt securities 487 12 — 499 Municipal bonds 40 1 (1 ) 40 Corporate bonds 5 — (1 ) 4 Total debt securities 12,308 154 (107 ) 12,355 Publicly traded equity securities (1) 33 — — 33 Total available-for-sale securities $ 12,341 $ 154 $ (107 ) $ 12,388 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 9,793 $ 217 $ (39 ) $ 9,971 Agency debentures 164 2 — 166 Agency debt securities 2,281 54 (6 ) 2,329 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 12,248 $ 273 $ (45 ) $ 12,476 (1) Publicly traded equity securities consisted of investments in a mutual fund related to the Community Reinvestment Act. Contractual Maturities The contractual maturities of all available-for-sale and held-to-maturity debt securities at September 30, 2015 are shown below (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 20 20 Due within five to ten years 1,827 1,826 Due after ten years 8,740 8,802 Total available-for-sale debt securities $ 10,587 $ 10,648 Held-to-maturity debt securities: Due within one year $ 25 $ 25 Due within one to five years 1,127 1,178 Due within five to ten years 2,766 2,857 Due after ten years 7,668 7,823 Total held-to-maturity debt securities $ 11,586 $ 11,883 At September 30, 2015 , the Company pledged $16 million of available-for-sale debt securities and $0.7 billion of held-to-maturity debt securities as collateral for derivatives and other purposes. At December 31, 2014, the Company pledged $1.6 billion of available-for-sale debt securities and $3.1 billion of held-to-maturity debt securities as collateral for repurchase agreements, derivatives and other purposes. The decrease in the amount of pledged debt securities was a result of the termination of the wholesale funding obligations during the third quarter of 2015 . Investments with Unrealized or Unrecognized Losses The following tables show the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, aggregated by investment category, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position at September 30, 2015 and December 31, 2014 (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses September 30, 2015: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 1,758 $ (13 ) $ 2,583 $ (45 ) $ 4,341 $ (58 ) Agency debentures 273 (6 ) 9 — 282 (6 ) Municipal bonds — — 15 — 15 — Corporate bonds — — 5 (1 ) 5 (1 ) Total temporarily impaired available-for-sale securities $ 2,031 $ (19 ) $ 2,612 $ (46 ) $ 4,643 $ (65 ) Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 202 $ (1 ) $ 1,591 $ (21 ) $ 1,793 $ (22 ) Agency debt securities 126 — 137 (1 ) 263 (1 ) Total temporarily impaired held-to-maturity securities $ 328 $ (1 ) $ 1,728 $ (22 ) $ 2,056 $ (23 ) December 31, 2014: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 403 $ (1 ) $ 4,674 $ (104 ) $ 5,077 $ (105 ) Agency debentures — — 9 — 9 — Municipal bonds 3 — 16 (1 ) 19 (1 ) Corporate bonds — — 5 (1 ) 5 (1 ) Total temporarily impaired available-for-sale securities $ 406 $ (1 ) $ 4,704 $ (106 ) $ 5,110 $ (107 ) Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 45 $ — $ 2,289 $ (39 ) $ 2,334 $ (39 ) Agency debt securities 110 (1 ) 560 (5 ) 670 (6 ) Total temporarily impaired held-to-maturity securities $ 155 $ (1 ) $ 2,849 $ (44 ) $ 3,004 $ (45 ) The Company does not believe that any individual unrealized loss in the available-for-sale or unrecognized loss in the held-to-maturity portfolio as of September 30, 2015 represents a credit loss. The credit loss component is the difference between the security’s amortized cost basis and the present value of its expected future cash flows, and is recognized in earnings. The noncredit loss component is the difference between the present value of its expected future cash flows and the fair value and is recognized through other comprehensive income ("OCI"). The Company assessed whether it intends to sell, or whether it is more likely than not that the Company will be required to sell an impaired security before recovery of its amortized cost basis. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell as of the balance sheet date and will not be required to sell prior to recovery of its amortized cost basis, the Company determines the amount of the impairment that is related to credit and the amount due to all other factors. The majority of the unrealized or unrecognized losses on mortgage-backed securities are attributable to changes in interest rates in the market. Agency residential mortgage-backed securities and CMOs, agency debentures and agency debt securities are guaranteed or issued by U.S. government sponsored enterprises and federal agencies. Municipal bonds and corporate bonds are evaluated by reviewing the credit-worthiness of the issuer and general market conditions. The Company does not intend to sell the debt securities in an unrealized or unrecognized loss position as of the balance sheet date and it is not more likely than not that the Company will be required to sell the debt securities before the anticipated recovery of its remaining amortized cost of the debt securities in an unrealized or unrecognized loss position at September 30, 2015 . There were no impairment losses recognized in earnings on available-for-sale and held-to-maturity securities during the nine months ended September 30, 2015 and 2014 . Included within the Company's securities portfolios are securities that have been written-down to a zero carrying value. The credit loss component of debt securities held by the Company that had a noncredit loss component previously recognized in other comprehensive income was $152 million at both September 30, 2015 and December 31, 2014 . Of this amount, $123 million relates to debt securities that have been factored to zero, but the Company still holds legal title to these securities until maturity or until they are sold . Gains (Losses) on Securities and Other The detailed components of the gains (losses) on securities and other line item on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 are as follows (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Reclassification of deferred losses on cash flow hedges $ (370 ) $ — $ (370 ) $ — Hedge ineffectiveness (2 ) (1 ) — (8 ) Gains on available-for-sale securities, net: Gains on available-for-sale securities 30 12 48 $ 34 Losses on available-for-sale securities (19 ) — (19 ) — Subtotal 11 12 29 34 Gains (losses) on loans, net 1 (3 ) 1 4 Gains (losses) on securities and other $ (360 ) $ 8 $ (340 ) $ 30 Gains (losses) on securities and other was $(360) million and $(340) million for the three and nine months ended September 30, 2015 , respectively, compared to $8 million and $30 million for the same periods in 2014 . The gains (losses) on securities and other for the three and nine months ended September 30, 2015 included $370 million losses reclassified from accumulated comprehensive loss related to cash flow hedges as a result of the termination of $4.4 billion legacy wholesale funding obligations during the third quarter of 2015. See Note 8—Securities Sold Under Agreements to Repurchase, FHLB Advances and Other Borrowings for additional information. |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET Loans receivable, net at September 30, 2015 and December 31, 2014 are summarized as follows (dollars in millions): September 30, 2015 December 31, 2014 One- to four-family $ 2,620 $ 3,060 Home equity 2,270 2,834 Consumer and other 366 455 Total loans receivable 5,256 6,349 Unamortized premiums, net 26 34 Allowance for loan losses (376 ) (404 ) Total loans receivable, net $ 4,906 $ 5,979 At September 30, 2015 , the Company pledged $4.5 billion and $0.4 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. At December 31, 2014 , the Company pledged $5.4 billion and $0.5 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. The following table presents the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment by loan class at September 30, 2015 and December 31, 2014 (dollars in millions): Recorded Investment Allowance for Loan Losses September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Collectively evaluated for impairment: One- to four-family $ 2,342 $ 2,764 $ 28 $ 18 Home equity 2,066 2,625 274 310 Consumer and other 370 461 7 10 Total collectively evaluated for impairment 4,778 5,850 309 338 Individually evaluated for impairment: One- to four-family 296 316 11 9 Home equity 208 217 56 57 Total individually evaluated for impairment 504 533 67 66 Total $ 5,282 $ 6,383 $ 376 $ 404 Credit Quality and Concentrations of Credit Risk The Company tracks and reviews factors to predict and monitor credit risk in its mortgage loan portfolio on an ongoing basis. These factors include: loan type, estimated current LTV/CLTV ratios, delinquency history, borrowers’ current credit scores, housing prices, loan vintage and geographic location of the property. The Company believes LTV/CLTV ratios and credit scores are the key factors in determining future loan performance. The factors are updated on at least a quarterly basis. The Company tracks and reviews delinquency status to predict and monitor credit risk in the consumer and other loan portfolio on at least a quarterly basis. Credit Quality The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at September 30, 2015 and December 31, 2014 (dollars in millions): One- to Four-Family Home Equity Current LTV/CLTV (1) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 <=80% $ 1,554 $ 1,757 $ 894 $ 1,081 80%-100% 649 807 582 755 100%-120% 255 311 441 557 >120% 162 185 353 441 Total mortgage loans receivable $ 2,620 $ 3,060 $ 2,270 $ 2,834 Average estimated current LTV/CLTV (2) 78 % 79 % 91 % 92 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 80 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, home price indices were utilized to estimate the current property value. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. (3) Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and home equity installment loans and maximum available line for home equity lines of credit. One- to Four-Family Home Equity Current FICO (1) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 >=720 $ 1,503 $ 1,734 $ 1,172 $ 1,487 719 - 700 244 296 231 292 699 - 680 210 260 199 238 679 - 660 181 197 157 203 659 - 620 193 237 211 258 <620 289 336 300 356 Total mortgage loans receivable $ 2,620 $ 3,060 $ 2,270 $ 2,834 (1) FICO scores are updated on a quarterly basis; however, there were approximately $40 million and $49 million of one- to four-family loans at September 30, 2015 and December 31, 2014 , respectively, and $3 million and $4 million of home equity loans, respectively, for which the updated FICO scores were not available. For these loans, the current FICO distribution included the most recent FICO scores where available, otherwise the original FICO score was used. Concentrations of Credit Risk One- to four-family loans include interest-only loans for a five to ten year period, followed by an amortizing period ranging from 20 to 25 years. At September 30, 2015 , 40% of the Company's one- to four-family portfolio was not yet amortizing. However, during the trailing twelve months ended September 30, 2015 , approximately 16% of these borrowers made voluntary annual principal payments of at least $2,500 and slightly over a third of those borrowers made voluntary annual principal payments of at least $10,000 . The home equity loan portfolio is primarily second lien loans on residential real estate properties, which have a higher level of credit risk than first lien mortgage loans. Approximately 13% of the home equity portfolio was in the first lien position and the Company holds both the first and second lien positions in less than 1% of the home equity loan portfolio at September 30, 2015 . The home equity loan portfolio consists of approximately 18% of home equity installment loans and approximately 82% of home equity lines of credit at September 30, 2015 . Home equity installment loans are primarily fixed rate and fixed term, fully amortizing loans that do not offer the option of an interest-only payment. The majority of home equity lines of credit convert to amortizing loans at the end of the draw period, which typically ranges from five to ten years. Approximately 5% of this portfolio will require the borrowers to repay the loan in full at the end of the draw period. At September 30, 2015 , 65% of the home equity line of credit portfolio had not converted from the interest-only draw period and had not begun amortizing. However, during the trailing twelve months ended September 30, 2015 , approximately 40% of the borrowers made annual principal payments of at least $500 on their home equity lines of credit and slightly under half of those borrowers reduced their principal balance by at least $2,500 . The following table outlines when one- to four-family and home equity lines of credit convert to amortizing by percentage of the one- to four-family portfolio and home equity line of credit portfolios, respectively, at September 30, 2015 : Period of Conversion to Amortizing Loan % of One- to Four-Family Portfolio % of Home Equity Line of Credit Portfolio Already amortizing 60% 35% Through December 31, 2015 1% 5% Year ending December 31, 2016 17% 44% Year ending December 31, 2017 22% 15% Year ending December 31, 2018 or later —% 1% Approximately 38% of the Company’s mortgage loans receivable were concentrated in California at both September 30, 2015 and December 31, 2014 . No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at September 30, 2015 and December 31, 2014 . Delinquent Loans The following table shows total loans receivable by delinquency category at September 30, 2015 and December 31, 2014 (dollars in millions): Current 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total September 30, 2015 One- to four-family $ 2,422 $ 60 $ 22 $ 116 $ 2,620 Home equity 2,145 47 28 50 2,270 Consumer and other 359 6 1 — 366 Total loans receivable $ 4,926 $ 113 $ 51 $ 166 $ 5,256 December 31, 2014 One- to four-family $ 2,813 $ 88 $ 28 $ 131 $ 3,060 Home equity 2,702 60 29 43 2,834 Consumer and other 447 7 1 — 455 Total loans receivable $ 5,962 $ 155 $ 58 $ 174 $ 6,349 Nonperforming Loans The Company classifies loans as nonperforming when they are no longer accruing interest, which includes loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans (including loans in bankruptcy) and certain junior liens that have a delinquent senior lien. The following table shows the comparative data for nonperforming loans at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 December 31, 2014 One- to four-family $ 269 $ 294 Home equity 151 165 Consumer and other 1 1 Total nonperforming loans receivable $ 421 $ 460 Real Estate Owned and Loans with Formal Foreclosure Proceedings in Process At September 30, 2015 and December 31, 2014 , the Company held $26 million and $36 million , respectively, of real estate owned that were acquired through foreclosure or through a deed in lieu of foreclosure or similar legal agreement. The Company also held $96 million and $107 million of loans for which formal foreclosure proceedings were in process at September 30, 2015 and December 31, 2014 , respectively. Allowance for Loan Losses The following table provides a roll forward by loan portfolio of the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 49 $ 345 $ 8 $ 402 Provision (benefit) for loan losses (10 ) (15 ) — (25 ) Charge-offs — (7 ) (2 ) (9 ) Recoveries — 7 1 8 Charge-offs, net — — (1 ) (1 ) Allowance for loan losses, end of period $ 39 $ 330 $ 7 $ 376 Three Months Ended September 30, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 44 $ 337 $ 20 $ 401 Provision (benefit) for loan losses (16 ) 29 (3 ) 10 Charge-offs (1 ) (13 ) (4 ) (18 ) Recoveries — 7 1 8 Charge-offs, net (1 ) (6 ) (3 ) (10 ) Allowance for loan losses, end of period $ 27 $ 360 $ 14 $ 401 Nine Months Ended September 30, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 27 $ 367 $ 10 $ 404 Provision (benefit) for loan losses 15 (32 ) — (17 ) Charge-offs (3 ) (26 ) (8 ) (37 ) Recoveries — 21 5 26 Charge-offs, net (3 ) (5 ) (3 ) (11 ) Allowance for loan losses, end of period $ 39 $ 330 $ 7 $ 376 Nine Months Ended September 30, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 102 $ 326 $ 25 $ 453 Provision (benefit) for loan losses (42 ) 70 (2 ) 26 Charge-offs (44 ) (54 ) (13 ) (111 ) Recoveries 11 18 4 33 Charge-offs, net (33 ) (36 ) (9 ) (78 ) Allowance for loan losses, end of period $ 27 $ 360 $ 14 $ 401 Total loans receivable designated as held-for-investment decreased $1.1 billion during the nine months ended September 30, 2015. The allowance for loan losses was $376 million , or 7% of total loans receivable, as of September 30, 2015 compared to $404 million , or 6% of total loans receivable, as of December 31, 2014. See Note 1—Organization, Basis of Presentation and Summary of Significant Accounting Policies for additional information on the allowance for loan losses. During the nine months ended September 30, 2015 and 2014 , the Company received one-time payments of $2 million and $11 million , respectively, from third party mortgage originators to satisfy in full all pending and future repurchase requests with them. The Company recognized these settlements as recoveries to the allowance for loan losses, resulting in a corresponding reduction to net charge-offs as well as provision (benefit) for loan losses . Impaired Loans—Troubled Debt Restructurings TDRs include two categories of loans: (1) loan modifications completed under the Company’s programs that involve granting an economic concession to a borrower experiencing financial difficulty, and (2) loans that have been charged off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification. Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. As mentioned above, the Company classifies loans as nonperforming when they are no longer accruing interest, which includes loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans, including loans in bankruptcy, and certain junior liens that have a delinquent senior lien. The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at September 30, 2015 and December 31, 2014 (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) September 30, 2015 One- to four-family $ 111 $ 113 $ 18 $ 8 $ 46 $ 296 Home equity 125 46 10 7 20 208 Total $ 236 $ 159 $ 28 $ 15 $ 66 $ 504 December 31, 2014 One- to four-family $ 121 $ 111 $ 24 $ 12 $ 48 $ 316 Home equity 127 51 14 6 19 217 Total $ 248 $ 162 $ 38 $ 18 $ 67 $ 533 (1) Represents loans modified as TDRs that are current and have made six or more consecutive payments. (2) Represents loans modified as TDRs that are current but have not yet made six consecutive payments, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. (3) The unpaid principal balance in one- to four-family TDRs was $294 million and $314 million at September 30, 2015 and December 31, 2014 , respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. (4) Total recorded investment in TDRs at September 30, 2015 consisted of $344 million of loans modified as TDRs and $160 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2014 consisted of $354 million of loans modified as TDRs and $179 million of loans that have been charged off due to bankruptcy notification. The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Average Recorded Investment Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 300 $ 319 $ 3 $ 2 Home equity 212 223 4 5 Total $ 512 $ 542 $ 7 $ 7 Average Recorded Investment Interest Income Recognized Nine Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 307 $ 653 $ 7 $ 13 Home equity 216 230 13 14 Total $ 523 $ 883 $ 20 $ 27 The decrease in the average recorded investments of one- to four-family TDRs comparing the nine months ended September 30, 2015 and 2014 was primarily due to the sale of $0.8 billion of one- to four-family loans modified as TDRs during 2014. Included in the allowance for loan losses was a specific valuation allowance of $67 million and $66 million that was established for TDRs at September 30, 2015 and December 31, 2014 , respectively. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loans, including the economic concessions granted to the borrowers. The following table shows detailed information related to the Company’s TDRs at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 December 31, 2014 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 79 $ 11 $ 68 $ 88 $ 9 $ 79 Home equity $ 117 $ 56 $ 61 $ 118 $ 57 $ 61 Without a recorded allowance: (1) One- to four-family $ 217 $ — $ 217 $ 228 $ — $ 228 Home equity $ 91 $ — $ 91 $ 99 $ — $ 99 Total: One- to four-family $ 296 $ 11 $ 285 $ 316 $ 9 $ 307 Home equity $ 208 $ 56 $ 152 $ 217 $ 57 $ 160 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. Troubled Debt Restructurings — Loan Modifications The Company has loan modification programs that focus on the mitigation of potential losses in the one- to four-family and home equity mortgage loan portfolio. The Company currently does not have an active loan modification program for consumer and other loans. The various types of economic concessions that may be granted in a loan modification typically consist of interest rate reductions, maturity date extensions, principal forgiveness or a combination of these concessions. The Company uses specialized servicers that focus on loan modifications and pursue trial modifications for loans that are more than 180 days delinquent. Trial modifications are classified immediately as TDRs and continue to be reported as delinquent until the successful completion of the trial period, which is typically 90 days . The loan then becomes a permanent modification reported as current but remains on nonaccrual status until six consecutive payments have been made. The vast majority of the Company’s loans modified as TDRs include an interest rate reduction in combination with another type of concession. The Company prioritizes the interest rate reduction modifications in combination with the following modification categories: principal forgiven, principal deferred and re-age/extension/capitalization of accrued interest. Each class is mutually exclusive in that if a modification had an interest rate reduction with principal forgiven and an extension, the modification would only be presented in the principal forgiven column in the table below. The following tables provide the number of loans, post-modification balances immediately after being modified by major class, and the financial impact of modifications during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other Total Pre-Modification Post-Modification One- to four-family 12 $ — $ 4 $ — $ 1 $ 5 4.6 % 2.2 % Home equity 40 — 1 1 1 3 4.9 % 3.3 % Total 52 $ — $ 5 $ 1 $ 2 $ 8 Three Months Ended September 30, 2014 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other Total Pre-Modification Post-Modification One- to four-family 15 $ — $ 4 $ — $ 1 $ 5 5.8 % 2.3 % Home equity 39 — — — 2 2 5.7 % 2.5 % Total 54 $ — $ 4 $ — $ 3 $ 7 Nine Months Ended September 30, 2015 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Other (1) Total Pre-Modification Post-Modification One- to four-family 28 $ — $ 7 $ — $ 2 $ 9 4.9 % 2.3 % Home equity 293 — 3 2 17 22 3.8 % 4.3 % Total 321 $ — $ 10 $ 2 $ 19 $ 31 Nine Months Ended September 30, 2014 Interest Rate Reduction Financial Impact Number of Principal Re-age/ Other with Other Total Pre-Modification Post-Modification One- to four-family 52 $ 1 $ 9 $ 2 $ 5 $ 17 5.2 % 2.6 % Home equity 153 — 3 2 6 11 5.4 % 2.4 % Total 205 $ 1 $ 12 $ 4 $ 11 $ 28 (1) Includes TDRs that resulted from a loan modification program being offered to a subset of borrowers with home equity lines of credit whose original loan terms provided the borrowers the option to accelerate their date of conversion to amortizing loans. As certain terms of the Company's offer represented economic concessions, such as longer amortization periods than were in the original loan agreements, to certain borrowers experiencing financial difficulty, this program resulted in $14 million of TDRs during the first quarter of 2015. The Company considers modifications that become 30 days past due to have experienced a payment default. The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment One- to four-family (1) 2 $ 1 1 $ — Home equity (2) 11 1 19 1 Total 13 $ 2 20 $ 1 Nine Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment One- to four-family (1) 4 $ 2 22 $ 8 Home equity (2)(3) 79 4 40 2 Total 83 $ 6 62 $ 10 (1) For both the three and nine months ended September 30, 2015 , less than $1 million , of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months was classified as current, compared to no recorded investment and $1 million for the three and nine months ended September 30, 2014 . (2) For the three and nine months ended September 30, 2015 , less than $1 million and $3 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months was classified as current, compared to less than $1 million and $1 million for the three and nine months ended September 30, 2014 . (3) The majority of these home equity modifications during the nine months ended September 30, 2015 experienced servicer transfers during this same period. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company enters into derivative transactions primarily to protect against interest rate risk on the value of certain assets, liabilities and future cash flows. Each derivative instrument is recorded on the consolidated balance sheet at fair value as a freestanding asset or liability. The following table summarizes the fair value amounts of derivatives designated as hedging instruments reported in the consolidated balance sheet at September 30, 2015 and December 31, 2014 (dollars in millions): Fair Value Notional Asset (1) Liability (2) Net (3) September 30, 2015 Interest rate contracts: Fair value hedges $ 2,387 $ 1 $ (89 ) $ (88 ) Total derivatives designated as hedging instruments (4) $ 2,387 $ 1 $ (89 ) $ (88 ) December 31, 2014 Interest rate contracts: Cash flow hedges $ 2,000 $ 23 $ (24 ) $ (1 ) Fair value hedges 1,069 1 (42 ) (41 ) Total derivatives designated as hedging instruments (4) $ 3,069 $ 24 $ (66 ) $ (42 ) (1) Reflected in the other assets line item on the consolidated balance sheet. (2) Reflected in the other liabilities line item on the consolidated balance sheet. (3) Represents derivative assets net of derivative liabilities for disclosure purposes only. (4) All derivatives were designated as hedging instruments at September 30, 2015 and December 31, 2014 . Cash Flow Hedges Cash flow hedges, which include a combination of interest rate swaps and purchased options, including caps, are used primarily to reduce the variability of future cash flows associated with existing variable-rate assets and liabilities and forecasted issuances of liabilities. The effective portion of the changes in fair value of the derivative instruments in a cash flow hedge is reported as a component of accumulated other comprehensive loss, net of tax in the consolidated balance sheet, for both active and discontinued hedges. Amounts are reclassified from accumulated other comprehensive loss into net operating interest income as a yield adjustment in the same period the hedged forecasted transaction affects earnings. If it becomes probable that a hedged forecasted transaction will not occur, amounts included in accumulated other comprehensive loss related to the specific hedging instruments would be immediately reclassified into the gains (losses) on securities and other line item in the consolidated statement of income (loss) . At December 31, 2014, accumulated other comprehensive loss attributable to cash flow hedges, pre-tax, was $422 million . These cash flow hedges were used to hedge the forecasted transactions related to repurchase agreements and FHLB advances. Following E*TRADE Clearing's move out from under E*TRADE Bank on July 1, 2015, the Company evaluated the sufficiency of the capital and liquidity position and, in early September, management and the Board concluded that E*TRADE Bank would deploy excess capital to terminate the $4.4 billion of legacy wholesale funding obligations. As the Company's intent changed and the hedged forecasted transactions became probable of not occurring, the Company reclassified $370 million of pre-tax losses on cash flow hedges from accumulated other comprehensive loss into earnings during the three months ended September 30, 2015. The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Gains (losses) on derivatives recognized in OCI (effective portion), net of tax $ (5 ) $ 5 $ (10 ) $ (27 ) Losses reclassified from AOCI into earnings (effective portion), net of tax (1) $ (239 ) $ (18 ) $ (271 ) $ (59 ) Cash flow hedge ineffectiveness losses (2) $ — $ (1 ) $ — $ (1 ) (1) Includes the reclassification of losses deferred in accumulated other comprehensive loss into earnings related to cash flow hedges as a result of the termination of repurchase agreements and FHLB advances during the three months ended September 30, 2015. (2) The ineffective portion of the change in fair value of the derivative instrument in a cash flow hedge, which is equal to the excess of the cumulative change in the fair value of the actual derivative over the cumulative change in the fair value of a hypothetical derivative which is created to match the exact terms of the underlying instruments being hedged, is reported in the gains (losses) on securities and other line item in the consolidated statement of income (loss) . Fair Value Hedges Fair value hedges, which include interest rate swaps, are used to offset exposure to changes in value of certain fixed-rate assets and liabilities. Fair value hedges are accounted for by recording the fair value of the derivative instrument and the fair value of the asset or liability being hedged on the consolidated balance sheet. Changes in the fair value of both the derivative instruments and the underlying assets or liabilities are recognized in the gains (losses) on securities and other line item in the consolidated statement of income (loss) . To the extent that the hedge is ineffective, the changes in the fair values will not offset and the difference, or hedge ineffectiveness, is reflected in the gains (losses) on securities and other line item in the consolidated statement of income (loss) . Hedge accounting is discontinued for fair value hedges if a derivative instrument is sold, terminated or otherwise de-designated. If fair value hedge accounting is discontinued, the previously hedged item is no longer adjusted for changes in fair value through the consolidated statement of income (loss) and the cumulative net gain or loss on the hedged asset or liability at the time of de-designation is amortized to interest income or interest expense using the effective interest method over the expected remaining life of the hedged item. Changes in the fair value of the derivative instruments after de-designation of fair value hedge accounting are recorded in the gains (losses) on securities and other line item in the consolidated statement of income (loss) . The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (30 ) $ 30 $ — $ (2 ) $ 2 $ — Agency mortgage-backed securities (72 ) 70 (2 ) — — — Total gains (losses) included in earnings $ (102 ) $ 100 $ (2 ) $ (2 ) $ 2 $ — Nine Months Ended September 30, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (15 ) $ 15 $ — $ (59 ) $ 52 $ (7 ) Agency mortgage-backed securities (32 ) 32 — (17 ) 17 — Total gains (losses) included in earnings $ (47 ) $ 47 $ — $ (76 ) $ 69 $ (7 ) (1) Reflected in the gains (losses) on securities and other line item on the consolidated statement of income (loss) . |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Securities Sold Under Agreements To Repurchase and FHLB Advances and Other Borrowings Disclosure [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FHLB ADVANCES AND OTHER BORROWINGS | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, FHLB ADVANCES AND OTHER BORROWINGS Securities sold under agreements to repurchase, FHLB advances and other borrowings at September 30, 2015 and December 31, 2014 are shown in the following table (dollars in millions): September 30, 2015 December 31, 2014 Trust preferred securities (1) $ 414 $ 428 Securities sold under agreements to repurchase and FHLB advances: Repurchase Agreements (2) $ — $ 3,672 FHLB Advances — 920 Fair value hedge adjustments and deferred costs — (49 ) Total securities sold under agreements to repurchase and FHLB advances — 4,543 Total $ 414 $ 4,971 Weighted Average Interest Rate 3.02 % 0.64 % (1) The Company's trust preferred securities do not begin maturing until 2031 . (2) The maximum amount at any month end for repurchase agreements was $3.8 billion and $4.9 billion for the nine months ended September 30, 2015 and the year ended December 31, 2014 , respectively. The Company terminated $4.4 billion of repurchase agreements and FHLB advances during the third quarter of 2015. In connection with this termination, the Company recorded a pre-tax charge of $413 million in consolidated statement of income (loss), including $43 million in the losses on early extinguishment of debt line item, and $370 million in the gains (losses) on securities and other line item that were reclassified from accumulated comprehensive loss attributable to cash flow hedges. The Company repurchased $14 million of trust preferred securities in advance of maturity during the third quarter of 2015 and recorded a gain on early extinguishment of debt of $4 million . Line of Credits maintained at E*TRADE Clearing E*TRADE Clearing maintains secured committed lines of credit with two unaffiliated banks, aggregating to $175 million at September 30, 2015 , that are scheduled to mature in June 2016. E*TRADE Clearing also maintains uncommitted lines of credit with several unaffiliated banks, that was increased by $75 million during the third quarter of 2015 to $450 million at September 30, 2015 . During the second quarter of 2015, E*TRADE Clearing entered into a new 364-day, $345 million senior unsecured revolving credit facility with a syndicate of banks. The credit facility contains maintenance covenants relating to E*TRADE Clearing's minimum consolidated tangible net worth and regulatory net capital ratio. There was no outstanding balance on any of these lines of credit or credit facilities at September 30, 2015 . |
Corporate Debt
Corporate Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
CORPORATE DEBT | CORPORATE DEBT Corporate debt at September 30, 2015 and December 31, 2014 is outlined in the following table (dollars in millions): Face Value Discount Net September 30, 2015 Interest-bearing notes: 5 3 / 8 % Notes, due 2022 $ 540 $ (6 ) $ 534 4 5 / 8 % Notes, due 2023 460 (5 ) 455 Total interest-bearing notes 1,000 (11 ) 989 Non-interest-bearing debt: 0% Convertible debentures, due 2019 34 — 34 Total corporate debt $ 1,034 $ (11 ) $ 1,023 Face Value Discount Net December 31, 2014 Interest-bearing notes: 6 3 / 8 % Notes, due 2019 $ 800 $ (5 ) $ 795 5 3 / 8 % Notes, due 2022 540 (7 ) 533 Total interest-bearing notes 1,340 (12 ) 1,328 Non-interest-bearing debt: 0% Convertible debentures, due 2019 38 — 38 Total corporate debt $ 1,378 $ (12 ) $ 1,366 During the first quarter of 2015, the Company issued an aggregate principal amount of $460 million in 4 5 / 8 % Notes, due 2023. Interest is payable semi-annually and the notes may be called by the Company beginning March 15, 2018 at a premium, which declines over time. The Company used the net proceeds from the issuance of the 4 5 / 8 % Notes, along with approximately $432 million of existing corporate cash to redeem all of the outstanding 6 3 / 8 % Notes due 2019 including paying the associated redemption premiums of $68 million , accrued interest and related fees and expenses. This resulted in $73 million in losses on early extinguishment of debt for the quarter ended March 31, 2015. The Company also entered into an amendment to the senior secured revolving credit facility to increase commitments thereunder by $50 million during the first quarter of 2015. As of September 30, 2015, there was no outstanding balance under the revolving credit facility and available capacity for borrowings was $250 million . The credit facility expires in November 2017. The Company has the ability to borrow against the credit facility for working capital and general corporate purposes. The credit facility contains certain maintenance covenants, including the requirement for the parent company to maintain unrestricted cash of $100 million . In September 2015, the Company entered into an amendment to its senior secured revolving credit facility, which reduced or removed certain negative covenants and other restrictions on the Company pursuant to the terms of the amendment. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10—INCOME TAXES Income Tax Expense (Benefit) Income tax benefit was $93 million and $245 million for the three and nine months ended September 30, 2015 , respectively, compared to income tax expense of $39 million and $129 million for the same periods in 2014. The effective tax rate was 38% and 372% for the three and nine months ended September 30, 2015 , respectively, compared to 31% and 34% for the same periods in 2014. The difference between the effective tax rates for the three and nine months ended September 30, 2015 was primarily due to the settlement of the IRS examination of the Company's 2007, 2009 and 2010 federal tax returns which resulted in the recognition of a $220 million income tax benefit in the second quarter of 2015. See the Unrecognized Tax Benefits section below for additional information. Unrecognized Tax Benefits The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the nine months ended September 30, 2015 (dollars in millions): Nine Months Ended September 30, 2015 Unrecognized tax benefits, beginning of period $ 330 Additions based on tax positions related to prior years 5 Additions based on tax positions related to current year — Reductions based on tax positions related to prior years (304 ) Settlements with taxing authorities (1 ) Statute of limitations lapses (1 ) Unrecognized tax benefits, end of period $ 29 The unrecognized tax benefits decreased $301 million to $29 million during the nine months ended September 30, 2015 . In May 2015, the Company settled the IRS examination of its 2007, 2009 and 2010 federal tax returns. As a result, the Company released $303 million of reserves related to the uncertain tax positions in the second quarter of 2015. During the third quarter of 2009, the Company incurred a loss on the exchange of $1.7 billion interest-bearing corporate debt for non-interest-bearing convertible debentures. The uncertain tax positions were primarily related to whether certain components of that loss were considered deductible or non-deductible for tax purposes. Deferred Taxes Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement and tax return purposes. During the nine months ended September 30, 2015 , deferred tax assets increased $93 million to $1.0 billion , mainly related to the settlement of the IRS examination as discussed in the Unrecognized Tax Benefits section above. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present after-tax changes in each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, June 30, 2015 $ (24 ) $ (234 ) $ 5 $ (253 ) Other comprehensive income (loss) before reclassifications 17 (5 ) — 12 Amounts reclassified from accumulated other comprehensive loss (7 ) 239 — 232 Net change 10 234 — 244 Ending balance, September 30, 2015 $ (14 ) $ — $ 5 $ (9 ) Available-for-sale Cash Flow Foreign Total Beginning balance, June 30, 2014 $ (11 ) $ (289 ) $ 5 $ (295 ) Other comprehensive income (loss) before reclassifications (20 ) 5 — (15 ) Amounts reclassified from accumulated other comprehensive loss (7 ) 18 — 11 Net change (27 ) 23 — (4 ) Ending balance, September 30, 2014 $ (38 ) $ (266 ) $ 5 $ (299 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive income (loss) before reclassifications (3 ) (10 ) — (13 ) Amounts reclassified from accumulated other comprehensive loss (18 ) 271 — 253 Net change (21 ) 261 — 240 Ending balance, September 30, 2015 $ (14 ) $ — $ 5 $ (9 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2013 $ (160 ) $ (298 ) $ 5 $ (453 ) Other comprehensive income (loss) before reclassifications 143 (27 ) — 116 Amounts reclassified from accumulated other comprehensive loss (21 ) 59 — 38 Net change 122 32 — 154 Ending balance, September 30, 2014 $ (38 ) $ (266 ) $ 5 $ (299 ) The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Available-for-sale securities: $ 11 $ 12 $ 29 $ 34 Gains on securities and other (4 ) (5 ) (11 ) (13 ) Tax expense $ 7 $ 7 $ 18 $ 21 Reclassification into earnings, net Cash flow hedging instruments: $ (370 ) $ — $ (370 ) $ — Losses on securities and other (17 ) (30 ) (69 ) (97 ) Operating interest expense (387 ) (30 ) (439 ) (97 ) Reclassification into earnings, before tax 148 12 168 38 Tax benefit $ (239 ) $ (18 ) $ (271 ) $ (59 ) Reclassification into earnings, net The Company terminated $4.4 billion of repurchase agreements and FHLB advances during the third quarter of 2015. In connection with this termination, the Company recorded a pre-tax charge of $413 million in the consolidated statement of income (loss), including $43 million in the losses on early extinguishment of debt line item, and $370 million in the gains (losses) on securities and other line item that were reclassified from accumulated comprehensive loss attributable to cash flow hedges. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table presents a reconciliation of basic and diluted earnings (loss) per share (in millions, except share data and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic: Net income (loss) $ (153 ) $ 86 $ 179 $ 252 Basic weighted-average shares outstanding (in thousands) 290,480 288,843 290,105 288,536 Basic earnings (loss) per share $ (0.53 ) $ 0.30 $ 0.62 $ 0.87 Diluted: Net income (loss) $ (153 ) $ 86 $ 179 $ 252 Basic weighted-average shares outstanding (in thousands) 290,480 288,843 290,105 288,536 Effect of dilutive securities: Weighted-average convertible debentures (in thousands) — 4,066 3,517 4,071 Weighted-average options and restricted stock issued to employees (in thousands) — 1,210 1,376 1,361 Diluted weighted-average shares outstanding (in thousands) 290,480 294,119 294,998 293,968 Diluted earnings (loss) per share $ (0.53 ) $ 0.29 $ 0.61 $ 0.86 The Company excluded the following shares from the calculation of diluted earnings (loss) per share as the effect would have been anti-dilutive (shares in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted-average shares excluded as a result of the Company's net loss: Convertible debentures 3.3 N/A N/A N/A Stock options and restricted stock awards and units 1.3 N/A N/A N/A Other stock options and restricted stock awards and units 0.1 0.4 0.1 0.5 Total 4.7 0.4 0.1 0.5 |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY REQUIREMENTS | REGULATORY REQUIREMENTS Registered Broker-Dealers The Company’s U.S. broker-dealer subsidiaries are subject to the Uniform Net Capital Rule (the "Rule") under the Securities Exchange Act of 1934 administered by the SEC and FINRA, which requires the maintenance of minimum net capital. The minimum net capital requirements can be met under either the Aggregate Indebtedness method or the Alternative method. Under the Aggregate Indebtedness method, a broker-dealer is required to maintain minimum net capital of the greater of 6 2 / 3 % of its aggregate indebtedness, as defined, or a minimum dollar amount. Under the Alternative method, a broker-dealer is required to maintain net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions. The method used depends on the individual U.S. broker-dealer subsidiary. The Company’s other broker-dealers, including its international broker-dealer subsidiaries located in Europe and Asia, are subject to capital requirements determined by their respective regulators. At September 30, 2015 and December 31, 2014 , all of the Company’s broker-dealer subsidiaries met minimum net capital requirements. The tables below summarize the minimum excess capital requirements for the Company’s broker-dealer subsidiaries at September 30, 2015 and December 31, 2014 (dollars in millions): Required Net Capital Net Capital Excess Net Capital September 30, 2015: E*TRADE Clearing (1) $ 175 $ 949 $ 774 E*TRADE Securities (1)(2) — 39 39 Other broker-dealers 1 18 17 Total $ 176 $ 1,006 $ 830 December 31, 2014: E*TRADE Clearing (1) $ 170 $ 795 $ 625 E*TRADE Securities (1) — 459 459 Other broker-dealers 1 19 18 Total $ 171 $ 1,273 $ 1,102 (1) Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities for both periods presented. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and subsequently paid dividends of $515 million to the parent company during the nine months ended September 30, 2015 . Banking E*TRADE Financial and E*TRADE Bank are subject to various regulatory capital requirements administered by federal banking agencies. Beginning on January 1, 2015, both E*TRADE Financial and E*TRADE Bank calculate regulatory capital under the Basel III framework using the Standardized Approach, subject to transition provisions. Prior to Basel III becoming effective, the risk-based capital guidelines that applied to E*TRADE Bank were based upon the 1988 capital accords of the BCBS, a committee of central banks and bank supervisors, as implemented by the U.S. Federal banking agencies, including the OCC, commonly known as Basel I. As a savings and loan holding company, E*TRADE Financial was not previously subject to specific statutory capital requirements. Under the Basel III framework, the vast majority of the Company's margin receivables qualified for 0% risk-weighting and a larger portion of the Company's deferred tax assets were included in regulatory capital, both having a favorable impact on the Company's current capital ratios. A portion of this benefit was offset as trust preferred securities are phased-out from the parent company's capital. In addition, in the first quarter of 2015, the Company made the one-time permanent election to exclude accumulated other comprehensive income from the calculation of Common Equity Tier 1 capital. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Financial’s and E*TRADE Bank’s financial condition and results of operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Financial and E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, E*TRADE Bank may not pay dividends to the parent company without approval from its regulators and any loans by E*TRADE Bank to the parent company and its other non-bank subsidiaries are subject to various quantitative, arm’s length, collateralization and other requirements. E*TRADE Financial’s and E*TRADE Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Financial and E*TRADE Bank to meet minimum Common equity Tier 1 capital, Tier 1 risk-based capital, Total risk-based capital, and Tier 1 leverage ratios. Events beyond management's control, such as deterioration in credit markets, could adversely affect future earnings and E*TRADE Financial’s and E*TRADE Bank’s ability to meet future capital requirements and, in the case of E*TRADE Bank, their ability to pay dividends to the parent company. E*TRADE Financial and E*TRADE Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the table below (dollars in millions): September 30, 2015 (1) December 31, 2014 (1) Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Bank: (2) Tier 1 leverage $ 2,960 9.2 % $ 1,612 5.0 % $ 1,348 $ 4,548 10.6 % $ 2,143 5.0 % $ 2,405 Tier 1 risk-based capital $ 2,960 36.0 % $ 658 8.0 % $ 2,302 $ 4,548 25.7 % $ 1,063 6.0 % $ 3,485 Total risk-based capital $ 3,069 37.3 % $ 823 10.0 % $ 2,246 $ 4,772 26.9 % $ 1,772 10.0 % $ 3,000 Common equity Tier 1 capital (3) $ 2,960 36.0 % $ 535 6.5 % $ 2,425 N/A N/A N/A N/A N/A (1) Due to the change in regulatory requirements described above, the September 30, 2015 ratios were calculated under Basel III requirements and the December 31, 2014 ratios were calculated under Basel I requirements. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. (3) The Basel III rule established Common Equity Tier 1 capital as a new tier of capital. September 30, 2015 Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount E*TRADE Financial: Tier 1 leverage $ 3,630 8.5 % $ 2,127 5.0 % $ 1,503 Tier 1 risk-based capital $ 3,630 39.5 % $ 736 8.0 % $ 2,894 Total risk-based capital $ 4,070 44.3 % $ 920 10.0 % $ 3,150 Common equity Tier 1 capital $ 3,630 39.5 % $ 598 6.5 % $ 3,032 |
Commitments, Contingencies and
Commitments, Contingencies and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS Legal Matters The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. The Company establishes an accrual for losses at management's best estimate when it assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Once established, the estimated liability is revised based on currently available information when an event occurs requiring an adjustment. Litigation Matters On October 27, 2000, Ajaxo, Inc. ("Ajaxo") filed a complaint in the Superior Court for the State of California, County of Santa Clara. Ajaxo sought damages and certain non-monetary relief for the Company’s alleged breach of a non-disclosure agreement with Ajaxo pertaining to certain wireless technology that Ajaxo offered the Company as well as damages and other relief against the Company for their alleged misappropriation of Ajaxo’s trade secrets. Following a jury trial, a judgment was entered in 2003 in favor of Ajaxo against the Company for $1 million for breach of the Ajaxo non-disclosure agreement. Although the jury found in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets, the trial court subsequently denied Ajaxo’s requests for additional damages and relief. On December 21, 2005, the California Court of Appeal affirmed the above-described award against the Company for breach of the nondisclosure agreement but remanded the case to the trial court for the limited purpose of determining what, if any, additional damages Ajaxo may be entitled to as a result of the jury’s previous finding in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets. Although the Company paid Ajaxo the full amount due on the above-described judgment, the case was remanded back to the trial court, and on May 30, 2008, a jury returned a verdict in favor of the Company denying all claims raised and demands for damages against the Company. Following the trial court’s entry of judgment in favor of the Company on September 5, 2008, Ajaxo filed post-trial motions for vacating this entry of judgment and requesting a new trial. The trial court denied these motions. On December 2, 2008, Ajaxo filed a notice of appeal with the Court of Appeal of the State of California for the Sixth District. On August 30, 2010, the Court of Appeal affirmed the trial court’s verdict in part and reversed the verdict in part, remanding the case. The Company petitioned the Supreme Court of California for review of the Court of Appeal decision. On December 16, 2010, the California Supreme Court denied the Company’s petition for review and remanded for further proceedings to the trial court. The testimonial phase of the third trial in this matter concluded on June 12, 2012. By order dated May 28, 2014, the Court determined to conduct a second phase of this bench trial to allow Ajaxo to attempt to prove entitlement to additional royalties. Hearings in phase two of the trial concluded January 8, 2015. In a Judgment and Statement of Decision filed September 16, 2015, the Court denied all claims for royalties by Ajaxo. Ajaxo has moved for a new trial and E*TRADE has moved to recover its costs. These motions will be heard November 13, 2015. The Company will continue to defend itself vigorously. On May 16, 2011, Droplets Inc., the holder of two patents pertaining to user interface servers, filed a complaint in the U.S. District Court for the Eastern District of Texas against E*TRADE Financial Corporation, E*TRADE Securities, E*TRADE Bank and multiple other unaffiliated financial services firms. Plaintiff contends that the defendants engaged in patent infringement under federal law. Plaintiff seeks unspecified damages and an injunction against future infringements, plus royalties, costs, interest and attorneys’ fees. On March 28, 2012, a change of venue was granted and the case was transferred to the United States District Court for the Southern District of New York. The Company filed its answer and counterclaim on June 13, 2012 and plaintiff moved to dismiss the counterclaim. The Company's motion for summary judgment on the grounds of non-infringement was granted by the U.S. District Court in a Decision and Order dated March 9, 2015. All remaining claims are stayed pending resolution of issues on Droplet's remaining patents under review by the Patent Trial and Appeal Board ("PTAB"). On July 6, 2015, the PTAB instituted an inter parties review of plaintiff's 115 patent, which is scheduled to be litigated through March 2016. The Company will continue to defend itself vigorously in this matter, both in the District Court and at the U.S. Patent Office. Several cases have been filed nationwide involving the April 2007 leveraged buyout ("LBO") of the Tribune Company ("Tribune") by Sam Zell, and the subsequent bankruptcy of Tribune. In William Niese et al. v. A.G. Edwards et al., in Superior Court of Delaware, New Castle County, former Tribune employees and retirees claimed that Tribune was actually insolvent at the time of the LBO and that the LBO constituted a fraudulent transaction that depleted the plaintiffs’ retirement plans, rendering them worthless. E*TRADE Clearing, along with numerous other financial institutions, is a named defendant in this case. One of the defendants removed the action to federal district court in Delaware on July 1, 2011. In Deutsche Bank Trust Company Americas et al. v. Adaly Opportunity Fund et al., filed in the Supreme Court of New York, New York County on June 3, 2011, the Trustees of certain notes issued by Tribune allege wrongdoing in connection with the LBO. In particular the Trustees claim that the LBO constituted a constructive fraudulent transfer under various state laws. G1 Execution Services, LLC (formerly known as E*TRADE Capital Markets, LLC), along with numerous other financial institutions, is a named defendant in this case. In Deutsche Bank et al. v. Ohlson et al., filed in the U.S. District Court for the Northern District of Illinois, noteholders of Tribune asserted claims of constructive fraud and G1 Execution Services, LLC is a named defendant in this case. Under the agreement governing the sale of G1 Execution Services, LLC to Susquehanna International Group, LLP ("Susquehanna"), the Company remains responsible for any resulting actions taken against G1 Execution Services, LLC as a result of such investigation. In EGI-TRB LLC et al. v. ABN-AMRO et al., filed in the Circuit Court of Cook County Illinois, creditors of Tribune assert fraudulent conveyance claims against multiple shareholder defendants and E*TRADE Clearing is a named defendant in this case. These cases have been consolidated into a multi-district litigation. The Company’s time to answer or otherwise respond to the complaints has been stayed pending further orders of the Court. On September 18, 2013, the Court entered the Fifth Amended Complaint. On September 23, 2013, the Court granted the defendants’ motion to dismiss the individual creditors’ complaint. The individual creditors filed a notice of appeal. The steering committees for plaintiffs and defendants have submitted a joint plan for the next phase of litigation. The next phase of the action will involve individual motions to dismiss. On April 22, 2014, the Court issued its protocols for dismissal motions for those defendants who were "mere conduits" who facilitated the transactions at issue. The motion to dismiss Count I of the Fifth Amended Complaint for failure to state a cause of action was fully briefed on July 2, 2014, and the parties await decision on that motion. The Company will defend itself vigorously in these matters. On April 30, 2013, a putative class action was filed by John Scranton, on behalf of himself and a class of persons similarly situated, against E*TRADE Financial Corporation and E*TRADE Securities in the Superior Court of California, County of Santa Clara, pursuant to the California procedures for a private Attorney General action. The Complaint alleged that the Company misrepresented through its website that it would always automatically exercise options that were in-the-money by $0.01 or more on expiration date. Plaintiffs allege violations of the California Unfair Competition Law, the California Consumer Remedies Act, fraud, misrepresentation, negligent misrepresentation and breach of fiduciary duty. The case has been deemed complex within the meaning of the California Rules of Court, and a case management conference was held on September 13, 2013. The Company’s demurrer and motion to strike the complaint were granted by order dated December 20, 2013. The Court granted leave to amend the complaint. A second amended complaint was filed on January 31, 2014. On March 11, 2014, the Company moved to strike and for a demurrer to the second amended complaint. On October 20, 2014, the Court sustained the Company's demurrer, dismissing four counts of the second amended complaint with prejudice and two counts without prejudice. The plaintiffs filed a third amended complaint on November 10, 2014. The Company filed a third demurrer and motion to strike on December 12, 2014. By order dated March 18, 2015, the Superior Court entered a final order sustaining the Company's demurrer on all remaining claims with prejudice. Final judgment was entered in the Company's favor on April 8, 2015. Plaintiff filed a Notice of Appeal April 27, 2015. The Company will continue to defend itself vigorously in this matter. On April 18, 2014, a putative class action was filed by the City of Providence, Rhode Island against forty-one high frequency trading firms, stock exchanges, market-makers, and other broker-dealers, including the Company, in the U.S. District Court for the Southern District of New York. The Complaint alleges that the high frequency trading firms, certain broker-dealers managing dark pools, and the exchanges manipulated the U.S. Securities markets, and that numerous market-makers and broker-dealers participated in that manipulation by doing business with the high frequency traders. As to the Company, the Complaint alleges violation of Sections 10(b) and 20(a) of the Exchange Act. On May 2, 2014, a similar putative class action was filed by American European Insurance Company against forty-two high frequency trading firms, stock exchanges, market-makers, and other broker-dealers, including the Company, in the U.S. District Court for the Southern District of New York. The action filed by American European Insurance Company made allegations substantially similar to the allegations in the City of Providence complaint. On June 13, 2014, a putative class action was filed by James J. Flynn and Dominic Morelli against twenty-six firms including the Company in the United States District Court for the Southern District of New York. The Flynn Complaint made allegations substantially similar to the allegations in the City of Providence Complaint. The consolidated amended complaint does not identify the Company as a defendant or make any allegations regarding the Company. On March 26, 2015, a putative class action was filed in the U.S. District Court for the Northern District of California by Ty Rayner, on behalf of himself and all others similarly situated, naming E*TRADE Financial Corporation and E*TRADE Securities as defendants. The complaint alleges that E*TRADE breached a fiduciary duty and unjustly enriched itself in connection with the routing of its customers’ orders to various market-makers and exchanges. Plaintiff seeks unspecified damages, declaratory relief, restitution, disgorgement of payments received by the Company, and attorneys’ fees. By stipulation, the parties have agreed to extend indefinitely the due date for a response to the claim. The Company will defend itself vigorously in this matter. In addition to the matters described above, the Company is subject to various legal proceedings and claims that arise in the normal course of business. In each pending matter, the Company contests liability or the amount of claimed damages. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages, or where investigation or discovery have yet to be completed, the Company is unable to estimate a range of reasonably possible losses on its remaining outstanding legal proceedings; however, the Company believes any losses, both individually or in the aggregate, would not be reasonably likely to have a material adverse effect on the consolidated financial condition or results of operations of the Company. An unfavorable outcome in any matter could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. In addition, even if the ultimate outcomes are resolved in the Company’s favor, the defense of such litigation could entail considerable cost or the diversion of the efforts of management, either of which could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Regulatory Matters The securities, futures, foreign currency and banking industries are subject to extensive regulation under federal, state and applicable international laws. From time to time, the Company has been threatened with or named as a defendant in lawsuits, arbitrations and administrative claims involving securities, banking and other matters. The Company is also subject to periodic regulatory audits and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, Federal Reserve Bank of Richmond, FINRA, CFTC, NFA or OCC by dissatisfied customers or others are investigated by such regulators, and may, if pursued, result in formal claims being filed against the Company by customers or disciplinary action being taken against the Company or its employees by regulators. Any such claims or disciplinary actions that are decided against the Company could have a material impact on the financial results of the Company or any of its subsidiaries. During 2012, the Company completed a review of order handling practices and pricing for order flow between E*TRADE Securities and G1 Execution Services, LLC. The Company implemented changes to its practices and procedures that were recommended during the review. Banking regulators and federal securities regulators were regularly updated during the course of the review. Subsequently, on July 11, 2013, FINRA notified E*TRADE Securities and G1 Execution Services, LLC that it was conducting an examination of both firms’ order handling practices. On March 19, 2015, the Company received a Wells notice from FINRA's Market Regulation Department relating to the adequacy of E*TRADE Securities' order-routing disclosures and supervisory process for reviewing execution quality during the period covered by the Company's 2012 internal review (July 2011 - June 2012). The Company continues to cooperate fully with FINRA in this examination. Under the agreement governing the sale of G1 Execution Services, LLC to Susquehanna, the Company remains responsible for any actions taken against G1 Execution Services, LLC arising from the investigation. In the case of the review of both E*TRADE Securities and G1 Execution Services, LLC such actions could include monetary penalties and cease-and-desist orders, and could prompt claims by customers. Any of these actions could materially and adversely affect the Company’s broker-dealer businesses. Insurance The Company maintains insurance coverage that management believes is reasonable and prudent. The principal insurance coverage it maintains covers commercial general liability; property damage; hardware/software damage; cyber liability; directors and officers; employment practices liability; certain criminal acts against the Company; and errors and omissions. The Company believes that such insurance coverage is adequate for the purpose of its business. The Company’s ability to maintain this level of insurance coverage in the future, however, is subject to the availability of affordable insurance in the marketplace. Commitments In the normal course of business, the Company makes various commitments to extend credit and incur contingent liabilities that are not reflected in the consolidated balance sheet. Significant changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. The Company’s equity and cost method investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, which are not required to be consolidated. The Company had $32 million in unfunded commitments with respect to these investments at September 30, 2015 . At September 30, 2015 , the Company had approximately $29 million of certificates of deposit scheduled to mature in less than one year and approximately $90 million of unfunded commitments to extend credit. Guarantees In prior periods when the Company sold loans, the Company provided guarantees to investors purchasing mortgage loans, which are considered standard representations and warranties within the mortgage industry. The primary guarantees are that: the mortgage and the mortgage note have been duly executed and each is the legal, valid and binding obligation of the Company, enforceable in accordance with its terms; the mortgage has been duly acknowledged and recorded and is valid; and the mortgage and the mortgage note are not subject to any right of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. The Company is responsible for the guarantees on loans sold. If these claims prove to be untrue, the investor can require the Company to repurchase the loan and return all loan purchase and servicing release premiums. Management does not believe the potential liability exposure will have a material impact on the Company’s results of operations, cash flows or financial condition due to the nature of the standard representations and warranties, which have resulted in a minimal amount of loan repurchases. Prior to 2008, ETB Holdings, Inc. ("ETBH") raised capital through the formation of trusts, which sold trust preferred securities in the capital markets. The capital securities must be redeemed in whole at the due date, which is generally 30 years after issuance. Each trust issued trust preferred securities at par, with a liquidation amount of $1,000 per capital security. The trusts used the proceeds from the sale of issuances to purchase subordinated debentures issued by ETBH. During the 30 -year period prior to the redemption of the trust preferred securities, ETBH guarantees the accrued and unpaid distributions on these securities, as well as the redemption price of the securities and certain costs that may be incurred in liquidating, terminating or dissolving the trusts (all of which would otherwise be payable by the trusts). At September 30, 2015 , management estimated that the maximum potential liability under this arrangement, including the current carrying value of the trusts, was equal to approximately $423 million or the total face value of these securities plus dividends, which may be unpaid at the termination of the trust arrangement. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports its operating results in two segments, based on the manner in which its chief operating decision maker evaluates financial performance and makes resource allocation decisions: 1) trading and investing; and 2) balance sheet management. Trading and investing includes retail brokerage products and services; investor-focused banking products; and corporate services. Balance sheet management includes the management of asset allocation; loans previously originated by the Company or purchased from third parties; deposits and customer payables; and credit, liquidity and interest rate risk. The balance sheet management segment utilizes deposits and customer payables and compensates the trading and investing segment via a market-based transfer pricing arrangement, which is eliminated in consolidation. The Company does not allocate costs associated with certain functions that are centrally-managed to its operating segments. These costs are separately reported in a corporate/other category, along with technology related costs incurred to support centrally-managed functions; restructuring and other exit activities; debt extinguishment; and corporate debt and corporate investments. The Company evaluates the performance of its segments based on the segment’s income (loss) before income taxes. Financial information for the Company’s reportable segments is presented in the following tables (dollars in millions): Three Months Ended September 30, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 174 $ 89 $ — $ 263 Total non-interest income (loss) 168 (358 ) — (190 ) Total net revenue 342 (269 ) — 73 Provision (benefit) for loan losses — (25 ) — (25 ) Total operating expense 197 23 73 293 Income (loss) before other income (expense) and income taxes 145 (267 ) (73 ) (195 ) Total other income (expense) — — (51 ) (51 ) Income (loss) before income taxes $ 145 $ (267 ) $ (124 ) $ (246 ) Income tax benefit (93 ) Net loss $ (153 ) Three Months Ended September 30, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 161 $ 104 $ — $ 265 Total non-interest income 166 9 — 175 Total net revenue 327 113 — 440 Provision (benefit) for loan losses — 10 — 10 Total operating expense 183 36 58 277 Income (loss) before other income (expense) and income taxes 144 67 (58 ) 153 Total other income (expense) — — (28 ) (28 ) Income (loss) before income taxes $ 144 $ 67 $ (86 ) $ 125 Income tax expense 39 Net income $ 86 Nine Months Ended September 30, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 517 $ 283 $ 1 $ 801 Total non-interest income (loss) 508 (335 ) — 173 Total net revenue 1,025 (52 ) 1 974 Provision (benefit) for loan losses — (17 ) — (17 ) Total operating expense 614 85 203 902 Income (loss) before other income (expense) and income taxes 411 (120 ) (202 ) 89 Total other income (expense) — — (155 ) (155 ) Income (loss) before income taxes $ 411 $ (120 ) $ (357 ) $ (66 ) Income tax benefit (245 ) Net income $ 179 Nine Months Ended September 30, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 449 $ 346 $ — $ 795 Total non-interest income 523 35 — 558 Total net revenue 972 381 — 1,353 Provision (benefit) for loan losses — 26 — 26 Total operating expense 574 113 164 851 Income (loss) before other income (expense) and income taxes 398 242 (164 ) 476 Total other income (expense) — — (95 ) (95 ) Income (loss) before income taxes $ 398 $ 242 $ (259 ) $ 381 Income tax expense 129 Net income $ 252 Total other income (expense) included losses on early extinguishment of corporate debt of $39 million and $112 million during the three and nine months ended September 30, 2015 , respectively, compared to $0 and $12 million during the three and nine months ended September 30, 2014 , respectively. For additional information refer to Note 8—Securities Sold Under Agreements to Repurchase, FHLB Advances and Other Borrowings and Note 9—Corporate Debt . Segment Assets Trading and Investing Balance Sheet Management Corporate/ Other (1) Total As of September 30, 2015 $ 11,181 $ 29,399 $ 625 $ 41,205 As of December 31, 2014 $ 12,032 $ 33,075 $ 423 $ 45,530 (1) Corporate/Other category includes corporate assets and other elimination adjustments, such as a line of credit between the operating segments, not allocated to the Company's operating segments. |
Organization, Basis of Presen24
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization —E*TRADE Financial Corporation is a financial services company that provides brokerage and related products and services primarily to individual retail investors under the brand "E*TRADE Financial." The Company also provides investor-focused banking products, primarily sweep deposits, to retail investors. As of December 31, 2014, the Company's two U.S. broker-dealers, E*TRADE Clearing and E*TRADE Securities, were operating subsidiaries of E*TRADE Bank, a wholly-owned operating subsidiary of E*TRADE Financial Corporation. The Company received regulatory approval to move both E*TRADE Clearing and E*TRADE Securities out from under E*TRADE Bank. E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. |
Basis of Presentation | Basis of Presentation —The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company has the ability to exercise significant influence but in which the Company does not possess control are generally accounted for by the equity method. Entities in which the Company does not have the ability to exercise significant influence are generally carried at cost. However, investments in marketable equity securities where the Company does not have the ability to exercise significant influence over the entities are accounted for as available-for-sale equity securities. The Company also evaluates its initial and continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity ("VIE") model. This evaluation is based on a qualitative assessment of whether the Company is the primary beneficiary of the VIE, which requires the Company to possess both: 1) the power to direct activities that most significantly impact the economic performance of the VIE; and 2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. Beginning in the first quarter of 2015, the Company reclassified the revenue earned on customer assets held by third parties from operating interest income to fees and service charges and prior periods have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The Company reports corporate interest expense separately from operating interest expense. The Company believes reporting these items separately provides a clearer picture of the financial performance of the Company’s operations than would a presentation that combined these two items. Operating interest expense is generated from the operations of the Company. Corporate debt is the primary source of corporate interest expense. Similarly, the Company reports corporate gains (losses) on sales of investments separately from gains (losses) on securities and other . The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Gains (losses) on securities and other are the result of activities in the Company’s operations, namely its balance sheet management segment. Corporate gains (losses) on sales of investments are reported in other income (expense) on the consolidated statement of income (loss). The accompanying unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2014 . |
Use of Estimates | Use of Estimates —Preparing the Company's consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management’s estimates. Certain significant accounting policies are critical because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company’s financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. |
Margin receivables (policy) | Margin Receivables —The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $10.8 billion at both September 30, 2015 and December 31, 2014 . Of this amount, $3.1 billion and $2.9 billion had been pledged or sold in connection with securities loans and deposits with clearing organizations at September 30, 2015 and December 31, 2014 , respectively. |
Allowance for loan losses (policy) | Allowance for Loan Losses —The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio as of the balance sheet date. In determining the adequacy of the allowance, the Company performs ongoing evaluations of the loan portfolio and loss forecasting assumptions. As of September 30, 2015, the allowance for loan losses was $376 million on $5.3 billion of total loans receivable designated as held-for-investment. For loans that are not TDRs, the Company established a general allowance and evaluated the adequacy of the allowance for loan losses by loan portfolio segment: one- to four-family, home equity and consumer and other. For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses continues to be based on a variety of quantitative and qualitative factors, including: • the composition and quality of the portfolio; • delinquency levels and trends; • current and historical charge-off and loss experience; • the Company's historical loss mitigation experience; • the condition of the real estate market and geographic concentrations within the loan portfolio; • the interest rate climate; • the overall availability of housing credit; and • general economic conditions. Total loans receivable designated as held-for-investment decreased $1.1 billion during the nine months ended September 30, 2015. The allowance for loan losses was $376 million , or 7% of total loans receivable, as of September 30, 2015 compared to $404 million , or 6% of total loans receivable, as of December 31, 2014. The decrease in the allowance for loan losses primarily resulted from the following factors: • better than expected loan performance, including favorable delinquency trends, faster prepayments across the portfolios and lower than expected defaults on balloon loans maturing; and • the resolution of uncertainties related to servicer transfers, which drove the majority of the decrease in the qualitative component. During the nine months ended September 30, 2015, the Company also enhanced its modeling practices for forecasting loan losses in the one- to four-family and home equity loan portfolios. The Company implemented a new loss forecasting model during the second quarter of 2015; however, there were no material changes in assumptions and methodologies in the new model and the implementation did not have a material impact on the allowance for loan losses. The implementation process triggered a re-evaluation of the time period of forecasted loan losses included in the general allowance. Based on reviews of recent loan performance, current economic conditions and their impact on borrower behavior, the Company extended the loss emergence period from 12 months to 18 months for both portfolios. The extended emergence period resulted in approximately $40 million of additional allowance for loan losses as of June 30, 2015. The new loss forecasting model continues to be sensitive to key risk factors within the one- to four-family and home equity loan portfolios, which include but are not limited to loan type, delinquency history, LTV/CLTV ratio and borrowers’ credit scores and the forecasted loan losses are estimated based on these types of loan-level attributes. The Company utilizes historical mortgage loan performance data to develop the forecast of delinquency and default for these risk segments. The Company also made the following enhancements to its quantitative allowance methodology for identifying higher risk loans in one- to four-family and home equity loan portfolios that resulted in approximately $40 million of additional allowance for loan losses as of September 30, 2015: • During the second quarter of 2015, the Company extended the period of our forecasted loan losses captured within the general allowance to include the total probable loss over the remaining life on a subset of higher risk interest-only loans in the one- to four-family loan portfolio. • During the third quarter of 2015, the Company further refined the criteria utilized in identifying higher risk home equity lines of credit for which the total probable loss over the remaining life is included within the general allowance. The general allowance for loan losses also included a qualitative component to account for a variety of factors that present additional uncertainty that may not be fully considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, management assesses the risk associated with three main factors: external factors, internal factors, and portfolio specific factors. The uncertainty related to these factors may expand over time, temporarily increasing the qualitative component in advance of the more precise identification of these probable losses being captured within the quantitative component of the general allowance. The total qualitative component was $12 million and $37 million as of September 30, 2015 and December 31, 2014 , respectively. |
Share-based payments (policy) | Share-Based Payments —The Company issues restricted stock awards to the Company's Board of Directors and restricted stock units to certain of the Company's officers and employees. Each restricted stock unit can be converted into one share of the Company’s common stock upon vesting. These restricted stock awards and units are issued at the fair value on the date of grant and vest ratably over the requisite service period, generally one to four years. Beginning in 2015, the Company also issued performance share units to certain of the Company’s officers. Each performance share unit can be converted into one share of the Company’s common stock upon vesting. Vesting of performance share units is contingent upon achievement of certain predefined individual and Company performance targets. These performance share units are issued at the fair value on the date of grant and vest on a graded basis over the requisite service period, which is one to two years. The Company records share-based compensation expense in accordance with the stock compensation accounting guidance. The Company recognizes compensation expense at the grant date fair value of a share-based payment award over the requisite service period less estimated forfeitures. Compensation expense for performance share units is also adjusted based on the Company’s estimated outcome of meeting the performance conditions. Share-based compensation expense is included in the compensation and benefits line item. |
New accounting and disclosure guidance (policy) | New Accounting and Disclosure Guidance —Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. Accounting for Investments in Qualified Affordable Housing Projects In January 2014, the FASB amended the accounting guidance for investments in qualified affordable housing projects. The amended accounting guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received and the net investment performance is recognized in the consolidated statement of income (loss) as a component of income tax expense. The Company adopted the amended accounting guidance for its qualifying investments on a full retrospective basis for annual and interim periods beginning on January 1, 2015. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows for the periods presented. As of September 30, 2015 , the carrying value of these investments was $34 million and is included within other assets in the consolidated balance sheet. Presentation and Disclosure of Discontinued Operations In April 2014, the FASB amended the presentation and disclosure guidance on disposal transactions. The amended guidance raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The amended guidance became effective for all disposals or classifications as held for sale occurring in annual and interim periods beginning on January 1, 2015 for the Company. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Revenue Recognition on Contracts with Customers In May 2014, the FASB amended the guidance on revenue recognition on contracts with customers. The new standard outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The amended guidance will be effective for annual and interim periods beginning on January 1, 2018 for the Company and may be applied on either a full retrospective or modified retrospective basis. Early adoption is permitted. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. Accounting and Disclosures for Repurchase Agreements In June 2014, the FASB amended the accounting and disclosure guidance on repurchase agreements. The amended guidance requires entities to account for repurchase-to-maturity transactions as secured borrowings, eliminates accounting guidance on linked repurchase financing transactions, and expands the disclosure requirements related to transfers of financial assets accounted for as sales and as secured borrowings. The amended accounting guidance and the amended disclosure guidance for transfers of financial assets accounted for as sales became effective for annual and interim periods beginning on January 1, 2015 for the Company and was applied using a cumulative-effect approach as of that date. The adoption of this amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. The amended disclosure guidance for transfers of financial assets accounted for as secured borrowings became effective for annual periods beginning on January 1, 2015 and interim periods beginning on April 1, 2015 for the Company. The Company's disclosures in Note 4—Offsetting Assets and Liabilities reflect the adoption of this amended disclosure guidance. Classification of Government-Guaranteed Mortgage Loans upon Foreclosure In August 2014, the FASB amended the accounting and disclosure guidance related to the classification of certain government-guaranteed mortgage loans upon foreclosure. The amended guidance requires entities to derecognize a mortgage loan and recognize a separate other receivable upon foreclosure if certain conditions are met. The separate other receivable is recorded based on the amount of principal and interest expected to be recovered under the guarantee. The amended guidance became effective for annual and interim periods beginning on January 1, 2015 for the Company and was applied on a modified retrospective basis to qualifying loans at that date. The adoption of the amended guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB amended the guidance related to an entity’s evaluations and disclosures of going concern uncertainties. The new guidance requires management to perform interim and annual assessments of the entity’s ability to continue as a going concern within one year of the date the financial statements are issued, and to provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The amended guidance will be effective for the Company for annual periods beginning on January 1, 2016 and for interim periods beginning on January 1, 2017. Early adoption is permitted. The adoption of the amended guidance will not impact the Company’s financial condition, results of operations or cash flows. Consolidation In February 2015, the FASB amended the guidance on consolidation of certain legal entities. The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, and clarifies how to determine whether a group of equity holders has power over an entity. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or modified retrospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. Presentation of Debt Issuance Costs In April 2015, the FASB amended the presentation guidance on debt issuance costs. The amended presentation guidance requires that debt issuance costs be presented in an entity’s balance sheet as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB issued additional guidance clarifying that debt issuance costs related to line-of-credit arrangements may be presented as an asset in an entity’s balance sheet, regardless of whether there are any outstanding borrowings on the arrangement. As this guidance is consistent with the Company's historical presentation of debt issuance costs, the Company's adoption of the amended guidance as of January 1, 2015 did not impact the Company’s financial condition, results of operations or cash flows. Accounting for Customer Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB amended the accounting guidance on customer fees paid in a cloud computing arrangement. The amended guidance requires that internal-use software accessed by a customer in a cloud computing arrangement be accounted for as a software license if specific criteria are met; otherwise they should be accounted for as service contracts. The amended guidance will be effective for annual and interim periods beginning on January 1, 2016 for the Company and may be applied on either a full retrospective or prospective basis. While the Company is currently evaluating the impact of the new accounting guidance, the adoption of the amended guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Operating Interest Income and25
Operating Interest Income and Operating Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Operating Interest Income and Operating Interest Expense Disclosure [Abstract] | |
Schedule Of Components Of Interest Income And Expense Operating Excluding Corporate | The following table shows the components of operating interest income and operating interest expense (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Operating interest income: Loans $ 58 $ 70 $ 177 $ 231 Available-for-sale securities 56 69 188 220 Held-to-maturity securities 85 81 259 240 Margin receivables 70 67 208 194 Securities borrowed and other 28 28 91 68 Total operating interest income 297 315 923 953 Operating interest expense: Securities sold under agreements to repurchase (1) (18 ) (30 ) (69 ) (95 ) FHLB advances and other borrowings (1) (12 ) (16 ) (43 ) (50 ) Deposits (1 ) (2 ) (4 ) (6 ) Customer payables and other (3 ) (2 ) (6 ) (7 ) Total operating interest expense (34 ) (50 ) (122 ) (158 ) Net operating interest income $ 263 $ 265 $ 801 $ 795 (1) The Company terminated $4.4 billion of repurchase agreements and FHLB advances at E*TRADE Bank in September 2015. See Note 8—Securities Sold Under Agreements to Repurchase, FHLB Advances and Other Borrowings for additional information. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Assets, Quantitative Information | The weighted average coupon rates for the available-for-sale residenti al mortgage-backed securities at September 30, 2015 are shown in the following table: Weighted Average Coupon Rate Agency mortgage-backed securities 2.94 % Agency CMOs 2.80 % The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at September 30, 2015 : Unobservable Inputs Average Range Loans receivable: One- to four-family Appraised value $ 378,500 $15,000-$1,750,000 Home equity Appraised value $ 272,300 $9,000-$1,300,000 Real estate owned Appraised value $ 336,900 $23,500-$1,400,000 |
Fair Value Measurements, Recurring and Nonrecurring | Assets and liabilities measured at fair value at September 30, 2015 and December 31, 2014 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value September 30, 2015: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ — $ 10,039 $ — $ 10,039 Agency debentures — 569 — 569 Municipal bonds — 36 — 36 Corporate bonds — 4 — 4 Total debt securities — 10,648 — 10,648 Publicly traded equity securities 32 — — 32 Total available-for-sale securities 32 10,648 — 10,680 Other assets: Derivative assets (1) — 1 — 1 Total assets measured at fair value on a recurring basis (2) $ 32 $ 10,649 $ — $ 10,681 Liabilities Derivative liabilities (1) $ — $ 89 $ — $ 89 Total liabilities measured at fair value on a recurring basis (2) $ — $ 89 $ — $ 89 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 33 $ 33 Home equity — — 19 19 Total loans receivable — — 52 52 Real estate owned — — 24 24 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 76 $ 76 (1) All derivative assets and liabilities were interest rate contracts at September 30, 2015 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 26% and less than 1% of the Company’s total assets and total liabilities, respectively, at September 30, 2015 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at September 30, 2015 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2014: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ — $ 11,164 $ — $ 11,164 Agency debentures — 648 — 648 Agency debt securities — 499 — 499 Municipal bonds — 40 — 40 Corporate bonds — 4 — 4 Total debt securities — 12,355 — 12,355 Publicly traded equity securities 33 — — 33 Total available-for-sale securities 33 12,355 — 12,388 Other assets: Derivative assets (1) — 24 — 24 Total assets measured at fair value on a recurring basis (2) $ 33 $ 12,379 $ — $ 12,412 Liabilities Derivative liabilities (1) $ — $ 66 $ — $ 66 Total liabilities measured at fair value on a recurring basis (2) $ — $ 66 $ — $ 66 Nonrecurring fair value measurements: Loans receivable: One- to four-family $ — $ — $ 46 $ 46 Home equity — — 32 32 Total loans receivable — — 78 78 Real estate owned — — 38 38 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 116 $ 116 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2014 . Information related to derivative instruments is detailed in Note 7—Accounting for Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 27% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2014 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2014 , and for which a fair value measurement was recorded during the period. |
Gains and Losses, Fair Value Measurements, Nonrecurring | The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 1 $ 2 $ 6 $ 9 Home equity 4 5 12 25 Total losses on loans receivable measured at fair value $ 5 $ 7 $ 18 $ 34 Losses (gains) on real estate owned measured at fair value $ — $ — $ 1 $ (1 ) |
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,453 $ 1,453 $ — $ — $ 1,453 Cash required to be segregated under federal or other regulations $ 143 $ 143 $ — $ — $ 143 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 9,109 $ — $ 9,342 $ — $ 9,342 Agency debentures 37 — 38 — 38 Agency debt securities 2,430 — 2,493 — 2,493 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 11,586 $ — $ 11,873 $ 10 $ 11,883 Margin receivables $ 7,933 $ — $ 7,933 $ — $ 7,933 Loans receivable, net: One- to four-family $ 2,599 $ — $ — $ 2,591 $ 2,591 Home equity 1,944 — — 1,780 1,780 Consumer and other 363 — — 372 372 Total loans receivable, net (1) $ 4,906 $ — $ — $ 4,743 $ 4,743 Investment in FHLB stock $ 15 $ — $ — $ 15 $ 15 Deposits paid for securities borrowed $ 95 $ — $ 95 $ — $ 95 Liabilities Deposits $ 25,610 $ — $ 25,610 $ — $ 25,610 Customer payables $ 6,040 $ — $ 6,040 $ — $ 6,040 Other borrowings $ 414 $ — $ — $ 252 $ 252 Corporate debt $ 1,023 $ — $ 1,125 $ — $ 1,125 Deposits received for securities loaned $ 1,685 $ — $ 1,685 $ — $ 1,685 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $376 million and loans that are valued at fair value on a nonrecurring basis at September 30, 2015 . December 31, 2014 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,783 $ 1,783 $ — $ — $ 1,783 Cash required to be segregated under federal or other regulations $ 555 $ 555 $ — $ — $ 555 Held-to-maturity securities: Agency mortgage-backed securities and CMOs $ 9,793 $ — $ 9,971 $ — $ 9,971 Agency debentures 164 — 166 — 166 Agency debt securities 2,281 — 2,329 — 2,329 Other non-agency debt securities 10 — — 10 10 Total held-to-maturity securities $ 12,248 $ — $ 12,466 $ 10 $ 12,476 Margin receivables $ 7,675 $ — $ 7,675 $ — $ 7,675 Loans receivable, net: One- to four-family $ 3,053 $ — $ — $ 2,742 $ 2,742 Home equity 2,475 — — 2,274 2,274 Consumer and other 451 — — 449 449 Total loans receivable, net (1) $ 5,979 $ — $ — $ 5,465 $ 5,465 Investment in FHLB stock $ 88 $ — $ — $ 88 $ 88 Deposits paid for securities borrowed $ 474 $ — $ 474 $ — $ 474 Liabilities Deposits $ 24,890 $ — $ 24,890 $ — $ 24,890 Securities sold under agreements to repurchase $ 3,672 $ — $ 3,681 $ — $ 3,681 Customer payables $ 6,455 $ — $ 6,455 $ — $ 6,455 FHLB advances and other borrowings $ 1,299 $ — $ 922 $ 252 $ 1,174 Corporate debt $ 1,366 $ — $ 1,491 $ — $ 1,491 Deposits received for securities loaned $ 1,649 $ — $ 1,649 $ — $ 1,649 (1) The carrying value of loans receivable, net includes the allowance for loan losses of $404 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2014 . |
Offsetting Assets and Liabili27
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Table Text Block] | The following table presents information about these transactions to enable the users of the Company’s financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities at September 30, 2015 and December 31, 2014 (dollars in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount September 30, 2015 Assets: Deposits paid for securities borrowed (1)(5) $ 95 $ — $ 95 $ (87 ) $ — $ 8 Total $ 95 $ — $ 95 $ (87 ) $ — $ 8 Liabilities: Deposits received for securities loaned (2)(6) 1,685 — 1,685 (87 ) (1,506 ) 92 Derivative liabilities (2)(3) 20 — 20 — (17 ) 3 Total $ 1,705 $ — $ 1,705 $ (87 ) $ (1,523 ) $ 95 December 31, 2014 Assets: Deposits paid for securities borrowed (1)(5) $ 474 $ — $ 474 $ (188 ) $ (267 ) $ 19 Derivative assets (1)(3) 24 — 24 (15 ) (3 ) 6 Total $ 498 $ — $ 498 $ (203 ) $ (270 ) $ 25 Liabilities: Repurchase agreements (4) $ 3,672 $ — $ 3,672 $ — $ (3,671 ) $ 1 Deposits received for securities loaned (2)(6) 1,649 — 1,649 (188 ) (1,332 ) 129 Derivative liabilities (2)(3) 30 — 30 (15 ) (15 ) — Total $ 5,351 $ — $ 5,351 $ (203 ) $ (5,018 ) $ 130 (1) Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. (2) Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. (3) Excludes net accrued interest payable of $3 million and $7 million at September 30, 2015 and December 31, 2014 , respectively. (4) The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included held-to-maturity securities at amortized cost for September 30, 2015 and available-for-sale securities at fair value and held-to-maturity securities at amortized cost for December 31, 2014 . The Company terminated all of its repurchase agreements during the third quarter of 2015. (5) Included in the gross amounts of deposits paid for securities borrowed was $50 million and $278 million at September 30, 2015 and December 31, 2014 , respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. (6) Included in the gross amounts of deposits received for securities loaned was $929 million and $1.1 billion at September 30, 2015 and December 31, 2014 , respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the counterparties under the Company’s master securities loan agreements. |
Available-for-Sale and Held-t28
Available-for-Sale and Held-to-Maturity Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments Securities | The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2015 and December 31, 2014 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value September 30, 2015: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 9,996 $ 101 $ (58 ) $ 10,039 Agency debentures 551 24 (6 ) 569 Municipal bonds 35 1 — 36 Corporate bonds 5 — (1 ) 4 Total debt securities 10,587 126 (65 ) 10,648 Publicly traded equity securities (1) 32 — — 32 Total available-for-sale securities $ 10,619 $ 126 $ (65 ) $ 10,680 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 9,109 $ 255 $ (22 ) $ 9,342 Agency debentures 37 1 — 38 Agency debt securities 2,430 64 (1 ) 2,493 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 11,586 $ 320 $ (23 ) $ 11,883 December 31, 2014: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 11,156 $ 113 $ (105 ) $ 11,164 Agency debentures 620 28 — 648 Agency debt securities 487 12 — 499 Municipal bonds 40 1 (1 ) 40 Corporate bonds 5 — (1 ) 4 Total debt securities 12,308 154 (107 ) 12,355 Publicly traded equity securities (1) 33 — — 33 Total available-for-sale securities $ 12,341 $ 154 $ (107 ) $ 12,388 Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 9,793 $ 217 $ (39 ) $ 9,971 Agency debentures 164 2 — 166 Agency debt securities 2,281 54 (6 ) 2,329 Other non-agency debt securities 10 — — 10 Total held-to-maturity securities $ 12,248 $ 273 $ (45 ) $ 12,476 (1) Publicly traded equity securities consisted of investments in a mutual fund related to the Community Reinvestment Act. |
Investments Classified by Contractual Maturity Date | The contractual maturities of all available-for-sale and held-to-maturity debt securities at September 30, 2015 are shown below (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 20 20 Due within five to ten years 1,827 1,826 Due after ten years 8,740 8,802 Total available-for-sale debt securities $ 10,587 $ 10,648 Held-to-maturity debt securities: Due within one year $ 25 $ 25 Due within one to five years 1,127 1,178 Due within five to ten years 2,766 2,857 Due after ten years 7,668 7,823 Total held-to-maturity debt securities $ 11,586 $ 11,883 |
Schedule of Unrealized Loss on Investments | The following tables show the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, aggregated by investment category, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position at September 30, 2015 and December 31, 2014 (dollars in millions): Less than 12 Months 12 Months or More Total Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses Fair Value Unrealized / Unrecognized Losses September 30, 2015: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 1,758 $ (13 ) $ 2,583 $ (45 ) $ 4,341 $ (58 ) Agency debentures 273 (6 ) 9 — 282 (6 ) Municipal bonds — — 15 — 15 — Corporate bonds — — 5 (1 ) 5 (1 ) Total temporarily impaired available-for-sale securities $ 2,031 $ (19 ) $ 2,612 $ (46 ) $ 4,643 $ (65 ) Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 202 $ (1 ) $ 1,591 $ (21 ) $ 1,793 $ (22 ) Agency debt securities 126 — 137 (1 ) 263 (1 ) Total temporarily impaired held-to-maturity securities $ 328 $ (1 ) $ 1,728 $ (22 ) $ 2,056 $ (23 ) December 31, 2014: Available-for-sale securities: Debt securities: Agency residential mortgage-backed securities and CMOs $ 403 $ (1 ) $ 4,674 $ (104 ) $ 5,077 $ (105 ) Agency debentures — — 9 — 9 — Municipal bonds 3 — 16 (1 ) 19 (1 ) Corporate bonds — — 5 (1 ) 5 (1 ) Total temporarily impaired available-for-sale securities $ 406 $ (1 ) $ 4,704 $ (106 ) $ 5,110 $ (107 ) Held-to-maturity securities: Agency residential mortgage-backed securities and CMOs $ 45 $ — $ 2,289 $ (39 ) $ 2,334 $ (39 ) Agency debt securities 110 (1 ) 560 (5 ) 670 (6 ) Total temporarily impaired held-to-maturity securities $ 155 $ (1 ) $ 2,849 $ (44 ) $ 3,004 $ (45 ) |
Gains (Losses) on Loans and Investments | The detailed components of the gains (losses) on securities and other line item on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 are as follows (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Reclassification of deferred losses on cash flow hedges $ (370 ) $ — $ (370 ) $ — Hedge ineffectiveness (2 ) (1 ) — (8 ) Gains on available-for-sale securities, net: Gains on available-for-sale securities 30 12 48 $ 34 Losses on available-for-sale securities (19 ) — (19 ) — Subtotal 11 12 29 34 Gains (losses) on loans, net 1 (3 ) 1 4 Gains (losses) on securities and other $ (360 ) $ 8 $ (340 ) $ 30 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Total Loans Receivable, Net [Table Text Block] | Loans receivable, net at September 30, 2015 and December 31, 2014 are summarized as follows (dollars in millions): September 30, 2015 December 31, 2014 One- to four-family $ 2,620 $ 3,060 Home equity 2,270 2,834 Consumer and other 366 455 Total loans receivable 5,256 6,349 Unamortized premiums, net 26 34 Allowance for loan losses (376 ) (404 ) Total loans receivable, net $ 4,906 $ 5,979 |
Loans Receivable, Allowance for Loan Losses | The following table presents the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment by loan class at September 30, 2015 and December 31, 2014 (dollars in millions): Recorded Investment Allowance for Loan Losses September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Collectively evaluated for impairment: One- to four-family $ 2,342 $ 2,764 $ 28 $ 18 Home equity 2,066 2,625 274 310 Consumer and other 370 461 7 10 Total collectively evaluated for impairment 4,778 5,850 309 338 Individually evaluated for impairment: One- to four-family 296 316 11 9 Home equity 208 217 56 57 Total individually evaluated for impairment 504 533 67 66 Total $ 5,282 $ 6,383 $ 376 $ 404 The following table provides a roll forward by loan portfolio of the allowance for loan losses for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 49 $ 345 $ 8 $ 402 Provision (benefit) for loan losses (10 ) (15 ) — (25 ) Charge-offs — (7 ) (2 ) (9 ) Recoveries — 7 1 8 Charge-offs, net — — (1 ) (1 ) Allowance for loan losses, end of period $ 39 $ 330 $ 7 $ 376 Three Months Ended September 30, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 44 $ 337 $ 20 $ 401 Provision (benefit) for loan losses (16 ) 29 (3 ) 10 Charge-offs (1 ) (13 ) (4 ) (18 ) Recoveries — 7 1 8 Charge-offs, net (1 ) (6 ) (3 ) (10 ) Allowance for loan losses, end of period $ 27 $ 360 $ 14 $ 401 Nine Months Ended September 30, 2015 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 27 $ 367 $ 10 $ 404 Provision (benefit) for loan losses 15 (32 ) — (17 ) Charge-offs (3 ) (26 ) (8 ) (37 ) Recoveries — 21 5 26 Charge-offs, net (3 ) (5 ) (3 ) (11 ) Allowance for loan losses, end of period $ 39 $ 330 $ 7 $ 376 Nine Months Ended September 30, 2014 One- to Four-Family Home Equity Consumer and Other Total Allowance for loan losses, beginning of period $ 102 $ 326 $ 25 $ 453 Provision (benefit) for loan losses (42 ) 70 (2 ) 26 Charge-offs (44 ) (54 ) (13 ) (111 ) Recoveries 11 18 4 33 Charge-offs, net (33 ) (36 ) (9 ) (78 ) Allowance for loan losses, end of period $ 27 $ 360 $ 14 $ 401 |
Credit Quality Indicators for Loan Portfolio | The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at September 30, 2015 and December 31, 2014 (dollars in millions): One- to Four-Family Home Equity Current LTV/CLTV (1) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 <=80% $ 1,554 $ 1,757 $ 894 $ 1,081 80%-100% 649 807 582 755 100%-120% 255 311 441 557 >120% 162 185 353 441 Total mortgage loans receivable $ 2,620 $ 3,060 $ 2,270 $ 2,834 Average estimated current LTV/CLTV (2) 78 % 79 % 91 % 92 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 80 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, home price indices were utilized to estimate the current property value. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. (3) Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and home equity installment loans and maximum available line for home equity lines of credit. One- to Four-Family Home Equity Current FICO (1) September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 >=720 $ 1,503 $ 1,734 $ 1,172 $ 1,487 719 - 700 244 296 231 292 699 - 680 210 260 199 238 679 - 660 181 197 157 203 659 - 620 193 237 211 258 <620 289 336 300 356 Total mortgage loans receivable $ 2,620 $ 3,060 $ 2,270 $ 2,834 (1) FICO scores are updated on a quarterly basis; however, there were approximately $40 million and $49 million of one- to four-family loans at September 30, 2015 and December 31, 2014 , respectively, and $3 million and $4 million of home equity loans, respectively, for which the updated FICO scores were not available. For these loans, the current FICO distribution included the most recent FICO scores where available, otherwise the original FICO score was used. |
Concentration of Credit Risk | The following table outlines when one- to four-family and home equity lines of credit convert to amortizing by percentage of the one- to four-family portfolio and home equity line of credit portfolios, respectively, at September 30, 2015 : Period of Conversion to Amortizing Loan % of One- to Four-Family Portfolio % of Home Equity Line of Credit Portfolio Already amortizing 60% 35% Through December 31, 2015 1% 5% Year ending December 31, 2016 17% 44% Year ending December 31, 2017 22% 15% Year ending December 31, 2018 or later —% 1% |
Loans by Delinquency Category and Non-Performing Loans | The following table shows total loans receivable by delinquency category at September 30, 2015 and December 31, 2014 (dollars in millions): Current 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total September 30, 2015 One- to four-family $ 2,422 $ 60 $ 22 $ 116 $ 2,620 Home equity 2,145 47 28 50 2,270 Consumer and other 359 6 1 — 366 Total loans receivable $ 4,926 $ 113 $ 51 $ 166 $ 5,256 December 31, 2014 One- to four-family $ 2,813 $ 88 $ 28 $ 131 $ 3,060 Home equity 2,702 60 29 43 2,834 Consumer and other 447 7 1 — 455 Total loans receivable $ 5,962 $ 155 $ 58 $ 174 $ 6,349 The following table shows the comparative data for nonperforming loans at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 December 31, 2014 One- to four-family $ 269 $ 294 Home equity 151 165 Consumer and other 1 1 Total nonperforming loans receivable $ 421 $ 460 |
Impaired Financing Receivables | The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company’s TDRs during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Average Recorded Investment Interest Income Recognized Three Months Ended September 30, Three Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 300 $ 319 $ 3 $ 2 Home equity 212 223 4 5 Total $ 512 $ 542 $ 7 $ 7 Average Recorded Investment Interest Income Recognized Nine Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 One- to four-family $ 307 $ 653 $ 7 $ 13 Home equity 216 230 13 14 Total $ 523 $ 883 $ 20 $ 27 The following table shows a summary of the Company’s recorded investment in TDRs that were on accrual and nonaccrual status, further disaggregated by delinquency status, in addition to the recorded investment in TDRs at September 30, 2015 and December 31, 2014 (dollars in millions): Nonaccrual TDRs Accrual TDRs (1) Current (2) 30-89 Days Delinquent 90-179 Days Delinquent 180+ Days Delinquent Total Recorded Investment in TDRs (3)(4) September 30, 2015 One- to four-family $ 111 $ 113 $ 18 $ 8 $ 46 $ 296 Home equity 125 46 10 7 20 208 Total $ 236 $ 159 $ 28 $ 15 $ 66 $ 504 December 31, 2014 One- to four-family $ 121 $ 111 $ 24 $ 12 $ 48 $ 316 Home equity 127 51 14 6 19 217 Total $ 248 $ 162 $ 38 $ 18 $ 67 $ 533 (1) Represents loans modified as TDRs that are current and have made six or more consecutive payments. (2) Represents loans modified as TDRs that are current but have not yet made six consecutive payments, bankruptcy loans and certain junior lien TDRs that have a delinquent senior lien. (3) The unpaid principal balance in one- to four-family TDRs was $294 million and $314 million at September 30, 2015 and December 31, 2014 , respectively. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. (4) Total recorded investment in TDRs at September 30, 2015 consisted of $344 million of loans modified as TDRs and $160 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2014 consisted of $354 million of loans modified as TDRs and $179 million of loans that have been charged off due to bankruptcy notification. The following table shows detailed information related to the Company’s TDRs at September 30, 2015 and December 31, 2014 (dollars in millions): September 30, 2015 December 31, 2014 Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs Recorded Investment in TDRs Specific Valuation Allowance Net Investment in TDRs With a recorded allowance: One- to four-family $ 79 $ 11 $ 68 $ 88 $ 9 $ 79 Home equity $ 117 $ 56 $ 61 $ 118 $ 57 $ 61 Without a recorded allowance: (1) One- to four-family $ 217 $ — $ 217 $ 228 $ — $ 228 Home equity $ 91 $ — $ 91 $ 99 $ — $ 99 Total: One- to four-family $ 296 $ 11 $ 285 $ 316 $ 9 $ 307 Home equity $ 208 $ 56 $ 152 $ 217 $ 57 $ 160 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. |
Troubled Debt Restructurings - Modifications | The following table shows the recorded investment in modifications that experienced a payment default within 12 months after the modification for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment One- to four-family (1) 2 $ 1 1 $ — Home equity (2) 11 1 19 1 Total 13 $ 2 20 $ 1 Nine Months Ended September 30, 2015 2014 Number of Loans Recorded Investment Number of Loans Recorded Investment One- to four-family (1) 4 $ 2 22 $ 8 Home equity (2)(3) 79 4 40 2 Total 83 $ 6 62 $ 10 (1) For both the three and nine months ended September 30, 2015 , less than $1 million , of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months was classified as current, compared to no recorded investment and $1 million for the three and nine months ended September 30, 2014 . (2) For the three and nine months ended September 30, 2015 , less than $1 million and $3 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months was classified as current, compared to less than $1 million and $1 million for the three and nine months ended September 30, 2014 . (3) The majority of these home equity modifications during the nine months ended September 30, 2015 experienced servicer transfers during this same period. The following tables provide the number of loans, post-modification balances immediately after being modified by major class, and the financial impact of modifications during the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other Total Pre-Modification Post-Modification One- to four-family 12 $ — $ 4 $ — $ 1 $ 5 4.6 % 2.2 % Home equity 40 — 1 1 1 3 4.9 % 3.3 % Total 52 $ — $ 5 $ 1 $ 2 $ 8 Three Months Ended September 30, 2014 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other Total Pre-Modification Post-Modification One- to four-family 15 $ — $ 4 $ — $ 1 $ 5 5.8 % 2.3 % Home equity 39 — — — 2 2 5.7 % 2.5 % Total 54 $ — $ 4 $ — $ 3 $ 7 Nine Months Ended September 30, 2015 Interest Rate Reduction Financial Impact Number of Loans Principal Forgiven Re-age/ Extension/ Interest Capitalization Other with Other (1) Total Pre-Modification Post-Modification One- to four-family 28 $ — $ 7 $ — $ 2 $ 9 4.9 % 2.3 % Home equity 293 — 3 2 17 22 3.8 % 4.3 % Total 321 $ — $ 10 $ 2 $ 19 $ 31 Nine Months Ended September 30, 2014 Interest Rate Reduction Financial Impact Number of Principal Re-age/ Other with Other Total Pre-Modification Post-Modification One- to four-family 52 $ 1 $ 9 $ 2 $ 5 $ 17 5.2 % 2.6 % Home equity 153 — 3 2 6 11 5.4 % 2.4 % Total 205 $ 1 $ 12 $ 4 $ 11 $ 28 (1) Includes TDRs that resulted from a loan modification program being offered to a subset of borrowers with home equity lines of credit whose original loan terms provided the borrowers the option to accelerate their date of conversion to amortizing loans. As certain terms of the Company's offer represented economic concessions, such as longer amortization periods than were in the original loan agreements, to certain borrowers experiencing financial difficulty, this program resulted in $14 million of TDRs during the first quarter of 2015. |
Accounting for Derivative Ins30
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value Amounts of Derivatives Designated as Hedging Instruments | The following table summarizes the fair value amounts of derivatives designated as hedging instruments reported in the consolidated balance sheet at September 30, 2015 and December 31, 2014 (dollars in millions): Fair Value Notional Asset (1) Liability (2) Net (3) September 30, 2015 Interest rate contracts: Fair value hedges $ 2,387 $ 1 $ (89 ) $ (88 ) Total derivatives designated as hedging instruments (4) $ 2,387 $ 1 $ (89 ) $ (88 ) December 31, 2014 Interest rate contracts: Cash flow hedges $ 2,000 $ 23 $ (24 ) $ (1 ) Fair value hedges 1,069 1 (42 ) (41 ) Total derivatives designated as hedging instruments (4) $ 3,069 $ 24 $ (66 ) $ (42 ) (1) Reflected in the other assets line item on the consolidated balance sheet. (2) Reflected in the other liabilities line item on the consolidated balance sheet. (3) Represents derivative assets net of derivative liabilities for disclosure purposes only. (4) All derivatives were designated as hedging instruments at September 30, 2015 and December 31, 2014 . |
Cash Flow Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Gains (losses) on derivatives recognized in OCI (effective portion), net of tax $ (5 ) $ 5 $ (10 ) $ (27 ) Losses reclassified from AOCI into earnings (effective portion), net of tax (1) $ (239 ) $ (18 ) $ (271 ) $ (59 ) Cash flow hedge ineffectiveness losses (2) $ — $ (1 ) $ — $ (1 ) (1) Includes the reclassification of losses deferred in accumulated other comprehensive loss into earnings related to cash flow hedges as a result of the termination of repurchase agreements and FHLB advances during the three months ended September 30, 2015. (2) The ineffective portion of the change in fair value of the derivative instrument in a cash flow hedge, which is equal to the excess of the cumulative change in the fair value of the actual derivative over the cumulative change in the fair value of a hypothetical derivative which is created to match the exact terms of the underlying instruments being hedged, is reported in the gains (losses) on securities and other line item in the consolidated statement of income (loss) . |
Fair Value Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effect of Derivatives designated as Fair Value Hedges and Related Hedged Items | The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income (loss) for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Three Months Ended September 30, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (30 ) $ 30 $ — $ (2 ) $ 2 $ — Agency mortgage-backed securities (72 ) 70 (2 ) — — — Total gains (losses) included in earnings $ (102 ) $ 100 $ (2 ) $ (2 ) $ 2 $ — Nine Months Ended September 30, 2015 2014 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (15 ) $ 15 $ — $ (59 ) $ 52 $ (7 ) Agency mortgage-backed securities (32 ) 32 — (17 ) 17 — Total gains (losses) included in earnings $ (47 ) $ 47 $ — $ (76 ) $ 69 $ (7 ) (1) Reflected in the gains (losses) on securities and other line item on the consolidated statement of income (loss) . |
Securities Sold Under Agreeme31
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Securities Sold Under Agreements To Repurchase and FHLB Advances and Other Borrowings Disclosure [Abstract] | |
Schedule Of Maturities Summary Of Other Borrowings | Securities sold under agreements to repurchase, FHLB advances and other borrowings at September 30, 2015 and December 31, 2014 are shown in the following table (dollars in millions): September 30, 2015 December 31, 2014 Trust preferred securities (1) $ 414 $ 428 Securities sold under agreements to repurchase and FHLB advances: Repurchase Agreements (2) $ — $ 3,672 FHLB Advances — 920 Fair value hedge adjustments and deferred costs — (49 ) Total securities sold under agreements to repurchase and FHLB advances — 4,543 Total $ 414 $ 4,971 Weighted Average Interest Rate 3.02 % 0.64 % (1) The Company's trust preferred securities do not begin maturing until 2031 . (2) The maximum amount at any month end for repurchase agreements was $3.8 billion and $4.9 billion for the nine months ended September 30, 2015 and the year ended December 31, 2014 , respectively. |
Corporate Debt (Tables)
Corporate Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Corporate Debt Instruments | Corporate debt at September 30, 2015 and December 31, 2014 is outlined in the following table (dollars in millions): Face Value Discount Net September 30, 2015 Interest-bearing notes: 5 3 / 8 % Notes, due 2022 $ 540 $ (6 ) $ 534 4 5 / 8 % Notes, due 2023 460 (5 ) 455 Total interest-bearing notes 1,000 (11 ) 989 Non-interest-bearing debt: 0% Convertible debentures, due 2019 34 — 34 Total corporate debt $ 1,034 $ (11 ) $ 1,023 Face Value Discount Net December 31, 2014 Interest-bearing notes: 6 3 / 8 % Notes, due 2019 $ 800 $ (5 ) $ 795 5 3 / 8 % Notes, due 2022 540 (7 ) 533 Total interest-bearing notes 1,340 (12 ) 1,328 Non-interest-bearing debt: 0% Convertible debentures, due 2019 38 — 38 Total corporate debt $ 1,378 $ (12 ) $ 1,366 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Contingencies | The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the nine months ended September 30, 2015 (dollars in millions): Nine Months Ended September 30, 2015 Unrecognized tax benefits, beginning of period $ 330 Additions based on tax positions related to prior years 5 Additions based on tax positions related to current year — Reductions based on tax positions related to prior years (304 ) Settlements with taxing authorities (1 ) Statute of limitations lapses (1 ) Unrecognized tax benefits, end of period $ 29 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following tables present after-tax changes in each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, June 30, 2015 $ (24 ) $ (234 ) $ 5 $ (253 ) Other comprehensive income (loss) before reclassifications 17 (5 ) — 12 Amounts reclassified from accumulated other comprehensive loss (7 ) 239 — 232 Net change 10 234 — 244 Ending balance, September 30, 2015 $ (14 ) $ — $ 5 $ (9 ) Available-for-sale Cash Flow Foreign Total Beginning balance, June 30, 2014 $ (11 ) $ (289 ) $ 5 $ (295 ) Other comprehensive income (loss) before reclassifications (20 ) 5 — (15 ) Amounts reclassified from accumulated other comprehensive loss (7 ) 18 — 11 Net change (27 ) 23 — (4 ) Ending balance, September 30, 2014 $ (38 ) $ (266 ) $ 5 $ (299 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive income (loss) before reclassifications (3 ) (10 ) — (13 ) Amounts reclassified from accumulated other comprehensive loss (18 ) 271 — 253 Net change (21 ) 261 — 240 Ending balance, September 30, 2015 $ (14 ) $ — $ 5 $ (9 ) Available-for-sale Securities Cash Flow Hedging Instruments Foreign Currency Translation Total Beginning balance, December 31, 2013 $ (160 ) $ (298 ) $ 5 $ (453 ) Other comprehensive income (loss) before reclassifications 143 (27 ) — 116 Amounts reclassified from accumulated other comprehensive loss (21 ) 59 — 38 Net change 122 32 — 154 Ending balance, September 30, 2014 $ (38 ) $ (266 ) $ 5 $ (299 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 and 2014 (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Available-for-sale securities: $ 11 $ 12 $ 29 $ 34 Gains on securities and other (4 ) (5 ) (11 ) (13 ) Tax expense $ 7 $ 7 $ 18 $ 21 Reclassification into earnings, net Cash flow hedging instruments: $ (370 ) $ — $ (370 ) $ — Losses on securities and other (17 ) (30 ) (69 ) (97 ) Operating interest expense (387 ) (30 ) (439 ) (97 ) Reclassification into earnings, before tax 148 12 168 38 Tax benefit $ (239 ) $ (18 ) $ (271 ) $ (59 ) Reclassification into earnings, net |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of basic and diluted earnings (loss) per share (in millions, except share data and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic: Net income (loss) $ (153 ) $ 86 $ 179 $ 252 Basic weighted-average shares outstanding (in thousands) 290,480 288,843 290,105 288,536 Basic earnings (loss) per share $ (0.53 ) $ 0.30 $ 0.62 $ 0.87 Diluted: Net income (loss) $ (153 ) $ 86 $ 179 $ 252 Basic weighted-average shares outstanding (in thousands) 290,480 288,843 290,105 288,536 Effect of dilutive securities: Weighted-average convertible debentures (in thousands) — 4,066 3,517 4,071 Weighted-average options and restricted stock issued to employees (in thousands) — 1,210 1,376 1,361 Diluted weighted-average shares outstanding (in thousands) 290,480 294,119 294,998 293,968 Diluted earnings (loss) per share $ (0.53 ) $ 0.29 $ 0.61 $ 0.86 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The Company excluded the following shares from the calculation of diluted earnings (loss) per share as the effect would have been anti-dilutive (shares in millions): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted-average shares excluded as a result of the Company's net loss: Convertible debentures 3.3 N/A N/A N/A Stock options and restricted stock awards and units 1.3 N/A N/A N/A Other stock options and restricted stock awards and units 0.1 0.4 0.1 0.5 Total 4.7 0.4 0.1 0.5 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements | The tables below summarize the minimum excess capital requirements for the Company’s broker-dealer subsidiaries at September 30, 2015 and December 31, 2014 (dollars in millions): Required Net Capital Net Capital Excess Net Capital September 30, 2015: E*TRADE Clearing (1) $ 175 $ 949 $ 774 E*TRADE Securities (1)(2) — 39 39 Other broker-dealers 1 18 17 Total $ 176 $ 1,006 $ 830 December 31, 2014: E*TRADE Clearing (1) $ 170 $ 795 $ 625 E*TRADE Securities (1) — 459 459 Other broker-dealers 1 19 18 Total $ 171 $ 1,273 $ 1,102 (1) Elected to use the Alternative method to compute net capital. The net capital requirement was $250,000 for E*TRADE Securities for both periods presented. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015 and subsequently paid dividends of $515 million to the parent company during the nine months ended September 30, 2015 . |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | E*TRADE Financial and E*TRADE Bank were categorized as "well capitalized" under the regulatory framework for prompt corrective action for the periods presented in the table below (dollars in millions): September 30, 2015 (1) December 31, 2014 (1) Actual Well Capitalized Minimum Capital Excess Capital Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount Amount Ratio Amount Ratio Amount E*TRADE Bank: (2) Tier 1 leverage $ 2,960 9.2 % $ 1,612 5.0 % $ 1,348 $ 4,548 10.6 % $ 2,143 5.0 % $ 2,405 Tier 1 risk-based capital $ 2,960 36.0 % $ 658 8.0 % $ 2,302 $ 4,548 25.7 % $ 1,063 6.0 % $ 3,485 Total risk-based capital $ 3,069 37.3 % $ 823 10.0 % $ 2,246 $ 4,772 26.9 % $ 1,772 10.0 % $ 3,000 Common equity Tier 1 capital (3) $ 2,960 36.0 % $ 535 6.5 % $ 2,425 N/A N/A N/A N/A N/A (1) Due to the change in regulatory requirements described above, the September 30, 2015 ratios were calculated under Basel III requirements and the December 31, 2014 ratios were calculated under Basel I requirements. (2) E*TRADE Securities was moved out from under E*TRADE Bank in February 2015. E*TRADE Clearing was moved out from under E*TRADE Bank in July 2015. (3) The Basel III rule established Common Equity Tier 1 capital as a new tier of capital. September 30, 2015 Actual Well Capitalized Minimum Capital Excess Capital Amount Ratio Amount Ratio Amount E*TRADE Financial: Tier 1 leverage $ 3,630 8.5 % $ 2,127 5.0 % $ 1,503 Tier 1 risk-based capital $ 3,630 39.5 % $ 736 8.0 % $ 2,894 Total risk-based capital $ 4,070 44.3 % $ 920 10.0 % $ 3,150 Common equity Tier 1 capital $ 3,630 39.5 % $ 598 6.5 % $ 3,032 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information for the Company’s reportable segments is presented in the following tables (dollars in millions): Three Months Ended September 30, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 174 $ 89 $ — $ 263 Total non-interest income (loss) 168 (358 ) — (190 ) Total net revenue 342 (269 ) — 73 Provision (benefit) for loan losses — (25 ) — (25 ) Total operating expense 197 23 73 293 Income (loss) before other income (expense) and income taxes 145 (267 ) (73 ) (195 ) Total other income (expense) — — (51 ) (51 ) Income (loss) before income taxes $ 145 $ (267 ) $ (124 ) $ (246 ) Income tax benefit (93 ) Net loss $ (153 ) Three Months Ended September 30, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 161 $ 104 $ — $ 265 Total non-interest income 166 9 — 175 Total net revenue 327 113 — 440 Provision (benefit) for loan losses — 10 — 10 Total operating expense 183 36 58 277 Income (loss) before other income (expense) and income taxes 144 67 (58 ) 153 Total other income (expense) — — (28 ) (28 ) Income (loss) before income taxes $ 144 $ 67 $ (86 ) $ 125 Income tax expense 39 Net income $ 86 Nine Months Ended September 30, 2015 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 517 $ 283 $ 1 $ 801 Total non-interest income (loss) 508 (335 ) — 173 Total net revenue 1,025 (52 ) 1 974 Provision (benefit) for loan losses — (17 ) — (17 ) Total operating expense 614 85 203 902 Income (loss) before other income (expense) and income taxes 411 (120 ) (202 ) 89 Total other income (expense) — — (155 ) (155 ) Income (loss) before income taxes $ 411 $ (120 ) $ (357 ) $ (66 ) Income tax benefit (245 ) Net income $ 179 Nine Months Ended September 30, 2014 Trading and Balance Sheet Corporate/ Total Net operating interest income $ 449 $ 346 $ — $ 795 Total non-interest income 523 35 — 558 Total net revenue 972 381 — 1,353 Provision (benefit) for loan losses — 26 — 26 Total operating expense 574 113 164 851 Income (loss) before other income (expense) and income taxes 398 242 (164 ) 476 Total other income (expense) — — (95 ) (95 ) Income (loss) before income taxes $ 398 $ 242 $ (259 ) $ 381 Income tax expense 129 Net income $ 252 |
Reconciliation of Assets from Segment to Consolidated | Segment Assets Trading and Investing Balance Sheet Management Corporate/ Other (1) Total As of September 30, 2015 $ 11,181 $ 29,399 $ 625 $ 41,205 As of December 31, 2014 $ 12,032 $ 33,075 $ 423 $ 45,530 (1) Corporate/Other category includes corporate assets and other elimination adjustments, such as a line of credit between the operating segments, not allocated to the Company's operating segments. |
Organization, Basis of Presen38
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Margin Receivables [Abstract] | |||||||
Margin receivables securities pledged as collateral | $ 10,800 | $ 10,800 | $ 10,800 | ||||
Margin receivable securities sold or repledged | 3,100 | 3,100 | 2,900 | ||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Allowance for loan losses | 376 | $ 402 | 376 | 404 | $ 401 | $ 401 | $ 453 |
Total loans receivable, gross | $ 5,256 | 5,256 | $ 6,349 | ||||
Increase (Decrease) in Finance Receivables | $ 1,100 | ||||||
Financing Receivable, Allowance for Credit Losses, Percentage of Gross Loans Receivable | 7.00% | 7.00% | 6.00% | ||||
Additional Allowance For Loan Losses Resulting From An Extension In The Loss Emergence Period | $ 40 | ||||||
Additional allowance due to methodology enhancement related to high risk loans | $ 40 | ||||||
Allowance For Credit Losses, Qualitative Component | $ 12 | $ 12 | $ 37 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common shares each restricted stock unit can be converted into | 1 | 1 | |||||
Number of common shares each performance share unit can be converted into | 1 | 1 | |||||
Investments In Affordable Housing Projects [Abstract] | |||||||
Amortization Method Qualified Affordable Housing Project Investments | $ 34 | $ 34 | |||||
Previous Loss Emergence Period [Member] | One- to Four-Family and Home Equity [Member] | |||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Loss Emergence Period Used To Forecast Loan Losses | 12 months | ||||||
New Loss Emergence Period [Member] | One- to Four-Family and Home Equity [Member] | |||||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||||
Loss Emergence Period Used To Forecast Loan Losses | 18 months | ||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period to vest | 1 year | ||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period to vest | 4 years | ||||||
Performance Shares [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period to vest | 1 year | ||||||
Performance Shares [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period to vest | 2 years |
Operating Interest Income and39
Operating Interest Income and Operating Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating interest income: | ||||
Loans | $ 58 | $ 70 | $ 177 | $ 231 |
Available-for-sale securities | 56 | 69 | 188 | 220 |
Held-to-maturity securities | 85 | 81 | 259 | 240 |
Margin receivables | 70 | 67 | 208 | 194 |
Securities borrowed and other | 28 | 28 | 91 | 68 |
Total operating interest income | 297 | 315 | 923 | 953 |
Operating interest expense: | ||||
Securities sold under agreements to repurchase(1) | (18) | (30) | (69) | (95) |
FHLB advances and other borrowings(1) | (12) | (16) | (43) | (50) |
Deposits | (1) | (2) | (4) | (6) |
Customer payables and other | (3) | (2) | (6) | (7) |
Total operating interest expense | (34) | (50) | (122) | (158) |
Net operating interest income | 263 | $ 265 | $ 801 | $ 795 |
Termination of legacy wholesale funding obligations | $ 4,400 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details - Inputs) | Sep. 30, 2015USD ($) |
Agency mortgage-backed securities [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Coupon Rate | 2.94% |
Agency CMOs [Member] | Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Coupon Rate | 2.80% |
Loans Receivable [Member] | One- To Four-Family [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | $ 378,500 |
Loans Receivable [Member] | One- To Four-Family [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 1,750,000 |
Loans Receivable [Member] | One- To Four-Family [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 15,000 |
Loans Receivable [Member] | Home Equity [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 272,300 |
Loans Receivable [Member] | Home Equity [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 1,300,000 |
Loans Receivable [Member] | Home Equity [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 9,000 |
Real Estate Owned [Member] | Weighted Average [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 336,900 |
Real Estate Owned [Member] | Maximum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | 1,400,000 |
Real Estate Owned [Member] | Minimum [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Appraised Value | $ 23,500 |
Fair Value Disclosures (Detai41
Fair Value Disclosures (Details - Recurring and Nonrecurring) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 10,680,000 | $ 10,680,000 | $ 12,388,000 | ||
Assets measured at fair value on recurring basis percentage of total assets | 26.00% | 26.00% | 27.00% | ||
Fair Value, Transfers Between Level 1 and Level 2, Description and Policy (Textuals) [Abstract] | |||||
Fair value, assets, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 | $ 0 | $ 0 | |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 | 0 | 0 | |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 | 0 | 0 | |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | $ 0 | 0 | $ 0 | 0 | |
Less than [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liabilities measured at fair value on recurring basis percentage of total liabilities | 1.00% | 1.00% | 1.00% | ||
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 10,680,000 | $ 10,680,000 | $ 12,388,000 | ||
Derivative assets | 1,000 | 1,000 | 24,000 | ||
Total assets measured at fair value on a recurring basis | 10,681,000 | 10,681,000 | 12,412,000 | ||
Derivative liabilities | 89,000 | 89,000 | 66,000 | ||
Total liabilities measured at fair value on a recurring basis | 89,000 | 89,000 | 66,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 52,000 | 52,000 | 78,000 | ||
REO | 24,000 | 24,000 | 38,000 | ||
Total Assets Measured at Fair Value On A Nonrecurring Basis | 76,000 | 76,000 | 116,000 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 32,000 | 32,000 | 33,000 | ||
Total assets measured at fair value on a recurring basis | 32,000 | 32,000 | 33,000 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,648,000 | 10,648,000 | 12,355,000 | ||
Derivative assets | 1,000 | 1,000 | 24,000 | ||
Total assets measured at fair value on a recurring basis | 10,649,000 | 10,649,000 | 12,379,000 | ||
Derivative liabilities | 89,000 | 89,000 | 66,000 | ||
Total liabilities measured at fair value on a recurring basis | 89,000 | 89,000 | 66,000 | ||
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 52,000 | 52,000 | 78,000 | ||
REO | 24,000 | 24,000 | 38,000 | ||
Total Assets Measured at Fair Value On A Nonrecurring Basis | 76,000 | 76,000 | 116,000 | ||
Loans Receivable [Member] | |||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||||
(Gains) losses measured at fair value | 5,000 | 7,000 | 18,000 | 34,000 | |
Real Estate Owned [Member] | |||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||||
(Gains) losses measured at fair value | 0 | 0 | 1,000 | (1,000) | |
One- To Four-Family [Member] | Loans Receivable [Member] | |||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||||
(Gains) losses measured at fair value | 1,000 | 2,000 | 6,000 | 9,000 | |
One- To Four-Family [Member] | Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 33,000 | 33,000 | 46,000 | ||
One- To Four-Family [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 33,000 | 33,000 | 46,000 | ||
Home Equity [Member] | Loans Receivable [Member] | |||||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||||
(Gains) losses measured at fair value | 4,000 | $ 5,000 | 12,000 | $ 25,000 | |
Home Equity [Member] | Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 19,000 | 19,000 | 32,000 | ||
Home Equity [Member] | Loans Receivable [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Total loans receivable | 19,000 | 19,000 | 32,000 | ||
Debt Securities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,648,000 | 10,648,000 | 12,355,000 | ||
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,648,000 | 10,648,000 | 12,355,000 | ||
Debt Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,648,000 | 10,648,000 | 12,355,000 | ||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,039,000 | 10,039,000 | 11,164,000 | ||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,039,000 | 10,039,000 | 11,164,000 | ||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 10,039,000 | 10,039,000 | 11,164,000 | ||
Agency Debentures [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 569,000 | 569,000 | 648,000 | ||
Agency Debentures [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 569,000 | 569,000 | 648,000 | ||
Agency Debentures [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 569,000 | 569,000 | 648,000 | ||
Agency Debt Securities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 499,000 | ||||
Agency Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 499,000 | ||||
Agency Debt Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 499,000 | ||||
Municipal Bonds [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 36,000 | 36,000 | 40,000 | ||
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 36,000 | 36,000 | 40,000 | ||
Municipal Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 36,000 | 36,000 | 40,000 | ||
Corporate Bonds [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 4,000 | 4,000 | 4,000 | ||
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 4,000 | 4,000 | 4,000 | ||
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 4,000 | 4,000 | 4,000 | ||
Equity Securities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 32,000 | 32,000 | 33,000 | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | 32,000 | 32,000 | 33,000 | ||
Equity Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Available-for-sale securities | $ 32,000 | $ 32,000 | $ 33,000 |
Fair Value Disclosures (Detai42
Fair Value Disclosures (Details - Level 3) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Level 3 recurring assets | $ 0 | $ 0 |
Level 3 recurring liabilities | $ 0 | $ 0 |
Fair Value Disclosures (Detai43
Fair Value Disclosures (Details - FV of Financial Instruments) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | $ 1,453 | $ 1,783 | $ 1,809 | $ 1,838 | ||
Cash required to be segregated under federal or other regulations | 143 | 555 | ||||
Total held-to-maturity securities | 11,586 | 12,248 | ||||
Margin Receivables | 7,933 | 7,675 | ||||
Total loans receivable, net | 4,906 | 5,979 | ||||
Investment in FHLB stock | 15 | 88 | ||||
Deposits paid for securities borrowed | 95 | 474 | ||||
Deposits | 25,610 | 24,890 | ||||
Securities sold under agreements to repurchase | 0 | 3,672 | ||||
Customer Payables | 6,040 | 6,455 | ||||
FHLB advances and other borrowings | 414 | 1,299 | ||||
Corporate debt | 1,023 | 1,366 | ||||
Deposits received for securities loaned | 1,685 | 1,649 | ||||
Allowance for loan losses | 376 | $ 402 | 404 | 401 | $ 401 | 453 |
Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 1,453 | 1,783 | ||||
Cash required to be segregated under federal or other regulations | 143 | 555 | ||||
Total held-to-maturity securities | 11,586 | 12,248 | ||||
Margin Receivables | 7,933 | 7,675 | ||||
Total loans receivable, net | 4,906 | 5,979 | ||||
Investment in FHLB stock | 15 | 88 | ||||
Deposits paid for securities borrowed | 95 | 474 | ||||
Deposits | 25,610 | 24,890 | ||||
Securities sold under agreements to repurchase | 3,672 | |||||
Customer Payables | 6,040 | 6,455 | ||||
FHLB advances and other borrowings | 414 | 1,299 | ||||
Corporate debt | 1,023 | 1,366 | ||||
Deposits received for securities loaned | 1,685 | 1,649 | ||||
Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 1,453 | 1,783 | ||||
Cash required to be segregated under federal or other regulations | 143 | 555 | ||||
Total held-to-maturity securities | 11,883 | 12,476 | ||||
Margin Receivables | 7,933 | 7,675 | ||||
Total loans receivable, net | 4,743 | 5,465 | ||||
Investment in FHLB stock | 15 | 88 | ||||
Deposits paid for securities borrowed | 95 | 474 | ||||
Deposits | 25,610 | 24,890 | ||||
Securities sold under agreements to repurchase | 3,681 | |||||
Customer Payables | 6,040 | 6,455 | ||||
FHLB advances and other borrowings | 252 | 1,174 | ||||
Corporate debt | 1,125 | 1,491 | ||||
Deposits received for securities loaned | 1,685 | 1,649 | ||||
One- To Four-Family [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Allowance for loan losses | 39 | 49 | 27 | 27 | 44 | 102 |
One- To Four-Family [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 2,599 | 3,053 | ||||
One- To Four-Family [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 2,591 | 2,742 | ||||
Home Equity [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Allowance for loan losses | 330 | 345 | 367 | 360 | 337 | 326 |
Home Equity [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 1,944 | 2,475 | ||||
Home Equity [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 1,780 | 2,274 | ||||
Consumer And Other [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Allowance for loan losses | 7 | $ 8 | 10 | $ 14 | $ 20 | $ 25 |
Consumer And Other [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 363 | 451 | ||||
Consumer And Other [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 372 | 449 | ||||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 9,109 | 9,793 | ||||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 9,109 | 9,793 | ||||
Agency Residential Mortgage-Backed Securities and CMOs [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 9,342 | 9,971 | ||||
Agency Debentures [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 37 | 164 | ||||
Agency Debentures [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 37 | 164 | ||||
Agency Debentures [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 38 | 166 | ||||
Agency Debt Securities [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 2,430 | 2,281 | ||||
Agency Debt Securities [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 2,430 | 2,281 | ||||
Agency Debt Securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 2,493 | 2,329 | ||||
Other Non-Agency Debt Securities [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 10 | 10 | ||||
Other Non-Agency Debt Securities [Member] | Carrying Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 10 | 10 | ||||
Other Non-Agency Debt Securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 10 | 10 | ||||
Level 1 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Cash and equivalents | 1,453 | 1,783 | ||||
Cash required to be segregated under federal or other regulations | 143 | 555 | ||||
Level 2 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 11,873 | 12,466 | ||||
Margin Receivables | 7,933 | 7,675 | ||||
Deposits paid for securities borrowed | 95 | 474 | ||||
Deposits | 25,610 | 24,890 | ||||
Securities sold under agreements to repurchase | 3,681 | |||||
Customer Payables | 6,040 | 6,455 | ||||
FHLB advances and other borrowings | 0 | 922 | ||||
Corporate debt | 1,125 | 1,491 | ||||
Deposits received for securities loaned | 1,685 | 1,649 | ||||
Level 2 [Member] | Agency Residential Mortgage-Backed Securities and CMOs [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 9,342 | 9,971 | ||||
Level 2 [Member] | Agency Debentures [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 38 | 166 | ||||
Level 2 [Member] | Agency Debt Securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 2,493 | 2,329 | ||||
Level 3 [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | 10 | 10 | ||||
Total loans receivable, net | 4,743 | 5,465 | ||||
Investment in FHLB stock | 15 | 88 | ||||
FHLB advances and other borrowings | 252 | 252 | ||||
Level 3 [Member] | One- To Four-Family [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 2,591 | 2,742 | ||||
Level 3 [Member] | Home Equity [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 1,780 | 2,274 | ||||
Level 3 [Member] | Consumer And Other [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total loans receivable, net | 372 | 449 | ||||
Level 3 [Member] | Other Non-Agency Debt Securities [Member] | Fair Value [Member] | ||||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||||
Total held-to-maturity securities | $ 10 | $ 10 |
Offsetting Assets and Liabili44
Offsetting Assets and Liabilities (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Footnotes [Abstract] | ||
Interest Payable Excluded From Gross Amounts of Derivatives | $ 3,000,000 | $ 7,000,000 |
Securities Borrowed, Transacted Through Clearing Company | 50,000,000 | 278,000,000 |
Securities Loaned, Transacted Through Clearing Company | 929,000,000 | 1,100,000,000 |
Derivative Asset, Not Subject to Master Netting Arrangement | 1,000,000 | 0 |
Derivative Liability, Not Subject to Master Netting Arrangement | 69,000,000 | 36,000,000 |
Offsetting Assets [Abstract] | ||
Securities Borrowed, Gross | 95,000,000 | 474,000,000 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 95,000,000 | 474,000,000 |
Securities Borrowed, Financial Instruments, Not Offset | (87,000,000) | (188,000,000) |
Securities Borrowed, Collateral Received | 0 | (267,000,000) |
Securities Borrowed, Amount Offset Against Collateral | 8,000,000 | 19,000,000 |
Derivative Asset, Fair Value, Gross Asset | 24,000,000 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset | 24,000,000 | |
Derivative Asset, Financial Instruments, Not Offset | (15,000,000) | |
Derivative Asset, Collateral Received | (3,000,000) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 6,000,000 | |
Derivative Asset, Securities Borrowed, Gross | 95,000,000 | 498,000,000 |
Derivative Asset, Securities Borrowed, Liability | 0 | 0 |
Derivative Asset, Securities Borrowed | 95,000,000 | 498,000,000 |
Derivative Asset, Securities Borrowed, Financial Instruments Not Offset | (87,000,000) | (203,000,000) |
Derivative Asset, Securities Borrowed, Collateral Received | 0 | (270,000,000) |
Derivative Asset, Securities Borrowed Net | 8,000,000 | 25,000,000 |
Offsetting Liabilities [Abstract] | ||
Securities Sold under Agreements to Repurchase, Gross | 3,672,000,000 | |
Securities Sold under Agreements to Repurchase, Asset | 0 | |
Securities sold under agreements to repurchase | 0 | 3,672,000,000 |
Securities Sold under Agreements to Repurchase, Financial Instruments Not Offset | 0 | |
Securities Sold under Agreements to Repurchase, Collateral Pledged | (3,671,000,000) | |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 1,000,000 | |
Securities Loaned, Gross | 1,685,000,000 | 1,649,000,000 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,685,000,000 | 1,649,000,000 |
Securities Loaned, Financial Instruments, Not Offset | (87,000,000) | (188,000,000) |
Securities Loaned, Collateral Pledged | (1,506,000,000) | (1,332,000,000) |
Securities Loaned, Amount Offset Against Collateral | 92,000,000 | 129,000,000 |
Derivative Liability, Fair Value, Gross Liability | 20,000,000 | 30,000,000 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 20,000,000 | 30,000,000 |
Derivative Liability, Financial Instruments, Not Offset | 0 | (15,000,000) |
Derivative Liability, Collateral Pledged | (17,000,000) | (15,000,000) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 3,000,000 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Gross | 1,705,000,000 | 5,351,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned | 1,705,000,000 | 5,351,000,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Financial Instruments Not Offset | (87,000,000) | (203,000,000) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Collateral Pledged | (1,523,000,000) | (5,018,000,000) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Offset Against Collateral | 95,000,000 | $ 130,000,000 |
Equity Securities [Member] | Maturity Overnight and Continuous [Member] | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities Loaned, Gross Including Not Subject to Master Netting Arrangement | $ 1,700,000,000 |
Available-for-Sale Securities (
Available-for-Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 10,619 | $ 12,341 |
Available-for-sale securities, gross unrealized gains | 126 | 154 |
Available-for-sale securities, gross unrealized losses | (65) | (107) |
Available-for-sale securities, fair value | 10,680 | 12,388 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 10,587 | 12,308 |
Available-for-sale securities, gross unrealized gains | 126 | 154 |
Available-for-sale securities, gross unrealized losses | (65) | (107) |
Available-for-sale securities, fair value | 10,648 | 12,355 |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 9,996 | 11,156 |
Available-for-sale securities, gross unrealized gains | 101 | 113 |
Available-for-sale securities, gross unrealized losses | (58) | (105) |
Available-for-sale securities, fair value | 10,039 | 11,164 |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 551 | 620 |
Available-for-sale securities, gross unrealized gains | 24 | 28 |
Available-for-sale securities, gross unrealized losses | (6) | 0 |
Available-for-sale securities, fair value | 569 | 648 |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 487 | |
Available-for-sale securities, gross unrealized gains | 12 | |
Available-for-sale securities, gross unrealized losses | 0 | |
Available-for-sale securities, fair value | 499 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 35 | 40 |
Available-for-sale securities, gross unrealized gains | 1 | 1 |
Available-for-sale securities, gross unrealized losses | 0 | (1) |
Available-for-sale securities, fair value | 36 | 40 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 5 | 5 |
Available-for-sale securities, gross unrealized losses | (1) | (1) |
Available-for-sale securities, fair value | 4 | 4 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 32 | 33 |
Available-for-sale securities, fair value | $ 32 | $ 33 |
Held-to-Maturity Securities (De
Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 11,586 | $ 12,248 |
Held-to-maturity securities, gross unrecognized gains | 320 | 273 |
Held-to-maturity securities, gross unrecognized losses | (23) | (45) |
Held-to-maturity securities, fair value | 11,883 | 12,476 |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 9,109 | 9,793 |
Held-to-maturity securities, gross unrecognized gains | 255 | 217 |
Held-to-maturity securities, gross unrecognized losses | (22) | (39) |
Held-to-maturity securities, fair value | 9,342 | 9,971 |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 37 | 164 |
Held-to-maturity securities, gross unrecognized gains | 1 | 2 |
Held-to-maturity securities, gross unrecognized losses | 0 | 0 |
Held-to-maturity securities, fair value | 38 | 166 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 2,430 | 2,281 |
Held-to-maturity securities, gross unrecognized gains | 64 | 54 |
Held-to-maturity securities, gross unrecognized losses | (1) | (6) |
Held-to-maturity securities, fair value | 2,493 | 2,329 |
Other Non-Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 10 | 10 |
Held-to-maturity securities, fair value | $ 10 | $ 10 |
Available-for-Sale and Held-t47
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-Sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, due within one year, amortized cost | $ 0 | |
Available-for-sale securities, due within one to five years, amortized cost | 20 | |
Available-for-sale securities, due within five to ten years, amortized cost | 1,827 | |
Available-for-sale securities, due after ten years, amortized cost | 8,740 | |
Available-for-sale securities, amortized cost | 10,587 | |
Available-for-sale securities, due within one year, fair value | 0 | |
Available-for-sale securities, due within one to five years, fair value | 20 | |
Available-for-sale securities, due within five to ten years, fair value | 1,826 | |
Available-for-sale securities, due after ten years, fair value | 8,802 | |
Available-for-sale securities, fair value | 10,648 | |
Held-to-Maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due within one year, amortized cost | 25 | |
Held-to-maturity securities, due within one to five years, amortized cost | 1,127 | |
Held-to-maturity securities, due within five to ten years, amortized cost | 2,766 | |
Held-to-maturity securities, due after ten years, amortized cost | 7,668 | |
Held-to-maturity securities, amortized cost | 11,586 | $ 12,248 |
Held-to-maturity securities, due within one year, fair value | 25 | |
Held-to-maturity securities, due within one to five years, fair value | 1,178 | |
Held-to-maturity securities, due within five to ten years, fair value | 2,857 | |
Held-to-maturity securities, due after ten years, fair value | 7,823 | |
Held-to-maturity securities, fair value | 11,883 | 12,476 |
Available-for-Sale Securities Pledged As Collateral (Textuals) [Abstract] | ||
Available-for-sale securities pledged to creditors with the right to sell or repledge | 16 | 1,600 |
Held-to-Maturity Securities Pledged As Collateral (Textuals) [Abstract] | ||
Held-to-maturity securities pledged to creditors with the right to sell or repledge | $ 700 | $ 3,100 |
Available-for-Sale Securities48
Available-for-Sale Securities (Details - OTTI) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | $ 2,031 | $ 406 |
Available-for-sale securities, twelve months or longer, fair value | 2,612 | 4,704 |
Available-for-sale securities, fair value | 4,643 | 5,110 |
Available-for-sale securities, less than twelve months, aggregate losses | (19) | (1) |
Available-for-sale securities, twelve months or longer, aggregate losses | (46) | (106) |
Available-for-sale securities, aggregate losses | (65) | (107) |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 1,758 | 403 |
Available-for-sale securities, twelve months or longer, fair value | 2,583 | 4,674 |
Available-for-sale securities, fair value | 4,341 | 5,077 |
Available-for-sale securities, less than twelve months, aggregate losses | (13) | (1) |
Available-for-sale securities, twelve months or longer, aggregate losses | (45) | (104) |
Available-for-sale securities, aggregate losses | (58) | (105) |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 273 | 0 |
Available-for-sale securities, twelve months or longer, fair value | 9 | 9 |
Available-for-sale securities, fair value | 282 | 9 |
Available-for-sale securities, less than twelve months, aggregate losses | (6) | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | 0 |
Available-for-sale securities, aggregate losses | (6) | 0 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 0 | 3 |
Available-for-sale securities, twelve months or longer, fair value | 15 | 16 |
Available-for-sale securities, fair value | 15 | 19 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | (1) |
Available-for-sale securities, aggregate losses | 0 | (1) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, twelve months or longer, fair value | 5 | 5 |
Available-for-sale securities, fair value | 5 | 5 |
Available-for-sale securities, twelve months or longer, aggregate losses | (1) | (1) |
Available-for-sale securities, aggregate losses | $ (1) | $ (1) |
Held-to-maturity Securities (49
Held-to-maturity Securities (Details - OTTI) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | $ 328 | $ 155 |
Held-to-maturity securities, twelve months or longer, fair value | 1,728 | 2,849 |
Held-to-maturity securities, fair value | 2,056 | 3,004 |
Held-to-maturity securities, less than twelve months, aggregate losses | (1) | (1) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (22) | (44) |
Held-to-maturity securities, aggregate losses | (23) | (45) |
Agency Residential Mortgage-Backed Securities and CMOs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 202 | 45 |
Held-to-maturity securities, twelve months or longer, fair value | 1,591 | 2,289 |
Held-to-maturity securities, fair value | 1,793 | 2,334 |
Held-to-maturity securities, less than twelve months, aggregate losses | (1) | 0 |
Held-to-maturity securities, twelve months or longer, aggregate losses | (21) | (39) |
Held-to-maturity securities, aggregate losses | (22) | (39) |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, aggregate losses | 0 | 0 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 126 | 110 |
Held-to-maturity securities, twelve months or longer, fair value | 137 | 560 |
Held-to-maturity securities, fair value | 263 | 670 |
Held-to-maturity securities, less than twelve months, aggregate losses | 0 | (1) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (1) | (5) |
Held-to-maturity securities, aggregate losses | $ (1) | $ (6) |
Available-for-Sale and Held-t50
Available-for-Sale and Held-to-Maturity Securities (Details - Other) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Components of Gains (Losses) on Loans and Securities Net [Abstract] | |||||
Reclassification of deferred losses on cash flow hedges | $ (370) | $ 0 | $ (370) | $ 0 | |
Hedge ineffectiveness | (2) | (1) | 0 | (8) | |
Gains on loans, net | 1 | (3) | 1 | 4 | |
Gains (losses) on securities and other | |||||
Gains on available-for-sale securities | 30 | 12 | 48 | 34 | |
Losses on available-for-sale securities | (19) | 0 | (19) | 0 | |
Subtotal | 11 | 12 | 29 | 34 | |
Gains (losses) on securities and other | (360) | $ 8 | (340) | 30 | |
Net impairment | 0 | $ 0 | |||
Credit loss balance | 152 | 152 | $ 152 | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Securities Factored To Zero | 123 | $ 123 | $ 123 | ||
Termination of legacy wholesale funding obligations | $ 4,400 |
Loans Receivable, Net (Details)
Loans Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Loans Receivable, Net [Abstract] | ||||||
One- to four-family | $ 2,620 | $ 3,060 | ||||
Home equity | 2,270 | 2,834 | ||||
Consumer and other | 366 | 455 | ||||
Total loans receivable | 5,256 | 6,349 | ||||
Unamortized premiums, net | 26 | 34 | ||||
Allowance for loan losses | (376) | $ (402) | (404) | $ (401) | $ (401) | $ (453) |
Total loans receivable, net | 4,906 | 5,979 | ||||
Loans Pledged Federal Home Loan Bank | 4,500 | 5,400 | ||||
Loans Pledged Federal Reserve Bank | 400 | 500 | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 4,778 | 5,850 | ||||
Loans individually evaluated for impairment, recorded investment | 504 | 533 | ||||
Total recorded investment in loans receivable | 5,282 | 6,383 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 309 | 338 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 67 | 66 | ||||
Allowance for loan losses | 376 | 402 | 404 | 401 | 401 | 453 |
One- To Four-Family [Member] | ||||||
Loans Receivable, Net [Abstract] | ||||||
Allowance for loan losses | (39) | (49) | (27) | (27) | (44) | (102) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 2,342 | 2,764 | ||||
Loans individually evaluated for impairment, recorded investment | 296 | 316 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 28 | 18 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 11 | 9 | ||||
Allowance for loan losses | 39 | 49 | 27 | 27 | 44 | 102 |
Home Equity [Member] | ||||||
Loans Receivable, Net [Abstract] | ||||||
Allowance for loan losses | (330) | (345) | (367) | (360) | (337) | (326) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 2,066 | 2,625 | ||||
Loans individually evaluated for impairment, recorded investment | 208 | 217 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 274 | 310 | ||||
Loans individually evaluated for impairment, allowance for loan losses | 56 | 57 | ||||
Allowance for loan losses | 330 | 345 | 367 | 360 | 337 | 326 |
Consumer And Other [Member] | ||||||
Loans Receivable, Net [Abstract] | ||||||
Allowance for loan losses | (7) | (8) | (10) | (14) | (20) | (25) |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||||
Loans collectively evaluated for impairment, recorded investment | 370 | 461 | ||||
Loans collectively evaluated for impairment, allowance for loan losses | 7 | 10 | ||||
Allowance for loan losses | $ 7 | $ 8 | $ 10 | $ 14 | $ 20 | $ 25 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details - Aging) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | $ 4,926 | $ 5,962 |
One- to four-family | 2,620 | 3,060 |
Home equity | 2,270 | 2,834 |
Consumer and other | 366 | 455 |
Total loans receivable | $ 5,256 | 6,349 |
Threshold, Period Past Due, Nonaccrual Financing Receivable | 90 days | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 26 | 36 |
Mortgage Loans in Process of Foreclosure, Amount | 96 | 107 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 421 | 460 |
Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 113 | 155 |
Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 51 | 58 |
Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 166 | 174 |
One- To Four-Family [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 2,422 | 2,813 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 269 | 294 |
One- To Four-Family [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 60 | 88 |
One- To Four-Family [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 22 | 28 |
One- To Four-Family [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 116 | 131 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 2,145 | 2,702 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 151 | 165 |
Home Equity [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 47 | 60 |
Home Equity [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 28 | 29 |
Home Equity [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 50 | 43 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Loans receivable, Current | 359 | 447 |
Consumer And Other [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1 | 1 |
Consumer And Other [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 6 | 7 |
Consumer And Other [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | 1 | 1 |
Consumer And Other [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Loans Receivable, Net (Detail53
Loans Receivable, Net (Details - Credit Quality) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Credit Quality Indicators [Line Items] | ||
Greater Than 10% of Loans, States Other than California, Count | 0 | 0 |
CALIFORNIA | One- To Four-Family and Home Equity Benchmark [Member] | Financing Receivables, State, Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 38.00% | 38.00% |
One- To Four-Family [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 2,620,000,000 | $ 3,060,000,000 |
Average estimated current LTV/CLTV | 78.00% | 79.00% |
Average LTV/CLTV at loan origination | 71.00% | 71.00% |
One- To Four-Family [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Interest-Only Period | 5 years | |
Loans, Amortization Period | 20 years | |
One- To Four-Family [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Interest-Only Period | 10 years | |
Loans, Amortization Period | 25 years | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Not Yet Amortizing Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 40.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 60.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2015 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 1.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 17.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 22.00% | |
One- To Four-Family [Member] | One- To Four-Family Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2018 and after | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 0.00% | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 16.00% | |
Annual Principal Payment Threshold | $ 2,500 | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 10000 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Annual Principal Payment Threshold | $ 10,000 | |
One- To Four-Family [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 10000 Risk [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 33.33333% | |
One- To Four-Family [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,503,000,000 | $ 1,734,000,000 |
One- To Four-Family [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 244,000,000 | 296,000,000 |
One- To Four-Family [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 210,000,000 | 260,000,000 |
One- To Four-Family [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 181,000,000 | 197,000,000 |
One- To Four-Family [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 193,000,000 | 237,000,000 |
One- To Four-Family [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 289,000,000 | 336,000,000 |
One- To Four-Family [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 40,000,000 | 49,000,000 |
One- To Four-Family [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,554,000,000 | 1,757,000,000 |
One- To Four-Family [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 649,000,000 | 807,000,000 |
One- To Four-Family [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 255,000,000 | 311,000,000 |
One- To Four-Family [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 162,000,000 | 185,000,000 |
Home Equity [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 2,270,000,000 | $ 2,834,000,000 |
Average estimated current LTV/CLTV | 91.00% | 92.00% |
Average LTV/CLTV at loan origination | 81.00% | 80.00% |
Home Equity [Member] | Minimum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Draw Period | 5 years | |
Home Equity [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Loans, Draw Period | 10 years | |
Home Equity [Member] | Interest Only Not Yet Amortizing [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 40.00% | |
Annual Principal Payment Threshold | $ 500 | |
Home Equity [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Annual Principal Payment Threshold | $ 2,500 | |
Home Equity [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 500 [Member] | Interest Only Not Yet Amortizing Borrowers Paying Minimum 2500 Risk [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 50.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Not Yet Amortizing Risk [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 65.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest only, Already Amortizing | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 35.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2015 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 5.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2016 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 44.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2017 | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 15.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Interest Only Conversion to Amortizing Loans, Year Ending December 31, 2018 and after | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 1.00% | |
Home Equity [Member] | Home Equity Line of Credit Benchmark [Member] | Balloon Loan, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 5.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Financing Receivables in First Lien Position, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 13.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Financing Receivables in the First and Second Lien Position, Percent [Member] | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 1.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Home Equity Installment Loans, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 18.00% | |
Home Equity [Member] | Home Equity Benchmark [Member] | Home Equity Line of Credit, Percentage [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 82.00% | |
Home Equity [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,172,000,000 | $ 1,487,000,000 |
Home Equity [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 231,000,000 | 292,000,000 |
Home Equity [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 199,000,000 | 238,000,000 |
Home Equity [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 157,000,000 | 203,000,000 |
Home Equity [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 211,000,000 | 258,000,000 |
Home Equity [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 300,000,000 | 356,000,000 |
Home Equity [Member] | Current FICO Score Not Available [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 3,000,000 | 4,000,000 |
Home Equity [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 894,000,000 | 1,081,000,000 |
Home Equity [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 582,000,000 | 755,000,000 |
Home Equity [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 441,000,000 | 557,000,000 |
Home Equity [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 353,000,000 | $ 441,000,000 |
Loans Receivable, Net (Detail54
Loans Receivable, Net (Details - Allowance) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 402 | $ 401 | $ 404 | $ 453 | |
Provision (benefit) for loan losses | (25) | 10 | (17) | 26 | |
Charge-offs | (9) | (18) | (37) | (111) | |
Recoveries | 8 | 8 | 26 | 33 | |
Charge-offs, net | (1) | (10) | (11) | (78) | |
Allowance for loan losses, end of period | $ 376 | 401 | 376 | 401 | |
Increase (Decrease) in Finance Receivables | $ 1,100 | ||||
Financing Receivable, Allowance for Credit Losses, Percentage of Gross Loans Receivable | 7.00% | 7.00% | 6.00% | ||
Repurchase Settlements | $ 2 | 11 | |||
One- To Four-Family [Member] | |||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, beginning of period | $ 49 | 44 | 27 | 102 | |
Provision (benefit) for loan losses | (10) | (16) | 15 | (42) | |
Charge-offs | 0 | (1) | (3) | (44) | |
Recoveries | 0 | 0 | 0 | 11 | |
Charge-offs, net | 0 | (1) | (3) | (33) | |
Allowance for loan losses, end of period | 39 | 27 | 39 | 27 | |
Home Equity [Member] | |||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, beginning of period | 345 | 337 | 367 | 326 | |
Provision (benefit) for loan losses | (15) | 29 | (32) | 70 | |
Charge-offs | (7) | (13) | (26) | (54) | |
Recoveries | 7 | 7 | 21 | 18 | |
Charge-offs, net | 0 | (6) | (5) | (36) | |
Allowance for loan losses, end of period | 330 | 360 | 330 | 360 | |
Consumer And Other [Member] | |||||
Financing Receivables, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, beginning of period | 8 | 20 | 10 | 25 | |
Provision (benefit) for loan losses | 0 | (3) | 0 | (2) | |
Charge-offs | (2) | (4) | (8) | (13) | |
Recoveries | 1 | 1 | 5 | 4 | |
Charge-offs, net | (1) | (3) | (3) | (9) | |
Allowance for loan losses, end of period | $ 7 | $ 14 | $ 7 | $ 14 |
Loans Receivable, Net (Detail55
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | $ 504 | $ 533 |
Financing Receivable, Troubled Debt Restructurings, Modifications, Total1 | 344 | 354 |
Financing Receivable, Troubled Debt Restructurings, Bankruptcy Notifications | 160 | 179 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 236 | 248 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 159 | 162 |
Nonaccrual TDRs, 30-89 Days Delinquent | 28 | 38 |
Nonaccrual TDRs, 90-179 Days Delinquent | 15 | 18 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 66 | 67 |
One- To Four-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 296 | 316 |
TDR unpaid principal balance | 294 | 314 |
One- To Four-Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 111 | 121 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 113 | 111 |
Nonaccrual TDRs, 30-89 Days Delinquent | 18 | 24 |
Nonaccrual TDRs, 90-179 Days Delinquent | 8 | 12 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 46 | 48 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 208 | 217 |
Home Equity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 125 | 127 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 46 | 51 |
Nonaccrual TDRs, 30-89 Days Delinquent | 10 | 14 |
Nonaccrual TDRs, 90-179 Days Delinquent | 7 | 6 |
Nonaccrual TDRs, 180 Plus Days Delinquent | $ 20 | $ 19 |
Loans Receivable, Net (Detail56
Loans Receivable, Net (Details - TDRs Average Investment and Income) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | $ 512 | $ 542 | $ 523 | $ 883 |
TDRs, Interest Income Recognized | 7 | 7 | 20 | 27 |
Proceeds from sale of loans | 40 | 802 | ||
One- To Four-Family [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | 300 | 319 | 307 | 653 |
TDRs, Interest Income Recognized | 3 | 2 | 7 | 13 |
Proceeds from sale of loans | 800 | |||
Home Equity [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
TDRs, Average Recorded Investment | 212 | 223 | 216 | 230 |
TDRs, Interest Income Recognized | $ 4 | $ 5 | $ 13 | $ 14 |
Loans Receivable, Net (Detail57
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Recorded Investment in TDRs | $ 504 | $ 533 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 67 | 66 |
One- To Four-Family [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 79 | 88 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 217 | 228 |
Recorded Investment in TDRs | 296 | 316 |
Impaired Financing Receivable, Related Allowance | 11 | 9 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 68 | 79 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 217 | 228 |
Impaired Financing Receivables, Net Investment, Total | 285 | 307 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 11 | 9 |
Home Equity [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 117 | 118 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 91 | 99 |
Recorded Investment in TDRs | 208 | 217 |
Impaired Financing Receivable, Related Allowance | 56 | 57 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 61 | 61 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 91 | 99 |
Impaired Financing Receivables, Net Investment, Total | 152 | 160 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 56 | $ 57 |
Loans Receivable, Net (Detail58
Loans Receivable, Net (Details - Modifications Types and Financial Impact) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)loan | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | loan | 52 | 54 | 321 | 205 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 8 | $ 7 | $ 31 | $ 28 | |
Principal Forgiveness with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | 0 | 1 | |
Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 5 | 4 | 10 | 12 | |
Other with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 0 | 2 | 4 | |
Other without Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 2 | $ 3 | $ 19 | $ 11 | |
One- To Four-Family [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | loan | 12 | 15 | 28 | 52 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 5 | $ 5 | $ 9 | $ 17 | |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 4.60% | 5.80% | 4.90% | 5.20% | |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.20% | 2.30% | 2.30% | 2.60% | |
One- To Four-Family [Member] | Principal Forgiveness with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 1 | |
One- To Four-Family [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4 | 4 | 7 | 9 | |
One- To Four-Family [Member] | Other with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | 0 | 2 | |
One- To Four-Family [Member] | Other without Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1 | $ 1 | $ 2 | $ 5 | |
Home Equity [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | loan | 40 | 39 | 293 | 153 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 3 | $ 2 | $ 22 | $ 11 | |
Financial Impact, Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 4.90% | 5.70% | 3.80% | 5.40% | |
Financial Impact, Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 3.30% | 2.50% | 4.30% | 2.40% | |
Home Equity [Member] | Principal Forgiveness with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Home Equity [Member] | Re-Age Extension or Interest Capitalization with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 0 | 3 | 3 | |
Home Equity [Member] | Other with Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 0 | 2 | 2 | |
Home Equity [Member] | Other without Interest Rate Reduction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1 | $ 2 | $ 17 | $ 6 | |
Home Equity [Member] | Other without Interest Rate Reduction [Member] | Fixed Rate Lock Loan Modification Program [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 14 |
Loans Receivable, Net (Detail59
Loans Receivable, Net (Details - Modifications Subsequent Defaults) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 13 | 20 | 83 | 62 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 2 | $ 1 | $ 6 | $ 10 |
One- To Four-Family [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 2 | 1 | 4 | 22 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 1 | $ 0 | $ 2 | $ 8 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 0 | $ 1 | ||
One- To Four-Family [Member] | Less than [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 1 | $ 1 | ||
Home Equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | loan | 11 | 19 | 79 | 40 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $ 1 | $ 1 | $ 4 | $ 2 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 3 | $ 1 | ||
Home Equity [Member] | Less than [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled Debt Restructurings - Modifications that Subsequently Defaulted that were Classified as Current at Period End | $ 1 | $ 1 |
Accounting for Derivative Ins60
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 2,387 | $ 3,069 |
Derivative Asset | 1 | 24 |
Derivative Liability | (89) | (66) |
Derivative Asset (Liability), Net | (88) | (42) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,000 | |
Derivative Asset | 23 | |
Derivative Liability | (24) | |
Derivative Asset (Liability), Net | (1) | |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,387 | 1,069 |
Derivative Asset | 1 | 1 |
Derivative Liability | (89) | (42) |
Derivative Asset (Liability), Net | $ (88) | $ (41) |
Accounting for Derivative Ins61
Accounting for Derivative Instruments and Hedging Activities (Details - Cash Flow Hedge) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ||||||
Termination of legacy wholesale funding obligations | $ 4,400 | |||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 370 | $ 0 | $ 370 | $ 0 | ||
Impact On Accumulated Other Comprehensive Gain Loss Net Of Tax And Consolidated Statement Of Income [Abstract] | ||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | [1] | (5) | 5 | (10) | (27) | |
Cash Flow Hedging [Member] | ||||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ||||||
Accumulated Other Comprehensive Loss, before Tax | $ 422 | |||||
Impact On Accumulated Other Comprehensive Gain Loss Net Of Tax And Consolidated Statement Of Income [Abstract] | ||||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | (5) | 5 | (10) | (27) | ||
Losses reclassified from AOCI into earnings (effective portion), net of tax(1) | (239) | (18) | (271) | (59) | ||
Cash flow hedge ineffectiveness losses(2) | $ 0 | $ (1) | $ 0 | $ (1) | ||
[1] | Amounts are net of benefit from income taxes of $3 million and $7 million for the three and nine months ended September 30, 2015, respectively, compared to provision for income taxes of $2 million and benefit from income taxes of $21 million for the three and nine months ended September 30, 2014. |
Accounting for Derivative Ins62
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value Hedge, Hedging Instrument | $ (102) | $ (2) | $ (47) | $ (76) |
Fair Value Hedge, Hedged Item | 100 | 2 | 47 | 69 |
Fair Value Hedge, Hedge Ineffectiveness | (2) | 0 | 0 | (7) |
Agency Debentures [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value Hedge, Hedging Instrument | (30) | (2) | (15) | (59) |
Fair Value Hedge, Hedged Item | 30 | 2 | 15 | 52 |
Fair Value Hedge, Hedge Ineffectiveness | 0 | 0 | 0 | (7) |
Agency mortgage-backed securities [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value Hedge, Hedging Instrument | (72) | 0 | (32) | (17) |
Fair Value Hedge, Hedged Item | 70 | 0 | 32 | 17 |
Fair Value Hedge, Hedge Ineffectiveness | $ (2) | $ 0 | $ 0 | $ 0 |
Securities Sold Under Agreeme63
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Debt, Balance, Maturity and Termination [Line Items] | |||||
Termination of legacy wholesale funding obligations | $ 4,400,000,000 | ||||
Gains (Losses) on early extinguishment of debt | (39,000,000) | $ 0 | $ (112,000,000) | $ (12,000,000) | |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 370,000,000 | $ 0 | 370,000,000 | $ 0 | |
E TRADE Clearing [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | |||
Trust Preferred Securities Subject to Mandatory Redemption [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | 414,000,000 | $ 414,000,000 | $ 428,000,000 | ||
Debt instrument maturity year | 2,031 | ||||
Gains (Losses) on early extinguishment of debt | 4,000,000 | ||||
Extinguishment of debt, amount | 14,000,000 | ||||
Repurchase Agreements [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | 0 | $ 0 | 3,672,000,000 | ||
Securities Sold Under Agreements To Repurchase Maximum Month end Outstanding Amount | 3,800,000,000 | 3,800,000,000 | 4,900,000,000 | ||
Federal Home Loan Bank Advances [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | 0 | 0 | 920,000,000 | ||
Fair Value Hedge Adjustments And Deferred Costs [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | 0 | 0 | (49,000,000) | ||
Total Securities Sold Under Agreements To Repurchase And FHLB Advances [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | 0 | 0 | 4,543,000,000 | ||
Termination of legacy wholesale funding obligations | 4,400,000,000 | ||||
Loss on termination of wholesale funding obligations, pretax | 413,000,000 | ||||
Gains (Losses) on early extinguishment of debt | (43,000,000) | ||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 370,000,000 | ||||
Total Securities Sold Under Agreements to Repurchase and FHLB Advances and Trust Preferred Securities [Member] | |||||
Debt, Balance, Maturity and Termination [Line Items] | |||||
Short-term and Long-term Debt | $ 414,000,000 | $ 414,000,000 | $ 4,971,000,000 | ||
Debt, Weighted Average Interest Rate | 3.02% | 3.02% | 0.64% | ||
Secured Committed Line of Credit [Member] | E TRADE Clearing [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Lines of Credit. Number of Creditors | 2 | 2 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | $ 175,000,000 | |||
Uncommitted Line of Credit [Member] | E TRADE Clearing [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 450,000,000 | 450,000,000 | |||
Line of Credit Facility, Increase (Decrease), Other, Net | 75,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000,000 | 250,000,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | |||
Revolving Credit Facility [Member] | E TRADE Clearing [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 345,000,000 | $ 345,000,000 |
Corporate Debt (Details)
Corporate Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Disclosure (Textuals) [Abstract] | ||||||
Losses on early extinguishment of debt | $ 39 | $ 0 | $ 112 | $ 12 | ||
Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | 1,034 | 1,034 | $ 1,378 | |||
Unamortized discount | (11) | (11) | (12) | |||
Total corporate debt | 1,023 | 1,023 | 1,366 | |||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 250 | 250 | ||||
Line of Credit Facility, Increase (Decrease), Net | $ 50 | |||||
Line of Credit Facility, Unrestricted Cash Minimum | 100 | 100 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | ||||
Interest Bearing Total [Member] | Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | 1,000 | 1,000 | 1,340 | |||
Unamortized discount | (11) | (11) | (12) | |||
Total corporate debt | 989 | $ 989 | $ 1,328 | |||
Senior Notes Interest Bearing Five and Three Eighths Percent [Member] | ||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument maturity year | 2,022 | 2,022 | ||||
Senior Notes Interest Bearing Five and Three Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | 540 | $ 540 | $ 540 | |||
Unamortized discount | (6) | (6) | (7) | |||
Total corporate debt | $ 534 | $ 534 | $ 533 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | 5.375% | |||
Senior Notes Interest Bearing Four And Five Eighths Percent [Member] | ||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument maturity year | 2,023 | |||||
Senior Notes Interest Bearing Four And Five Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | $ 460 | 460 | $ 460 | |||
Unamortized discount | (5) | (5) | ||||
Total corporate debt | $ 455 | $ 455 | ||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | ||||
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | ||||||
Debt Disclosure (Textuals) [Abstract] | ||||||
Repayments of Long-Term Debt and Associated Premiums, Interest and Fees | 432 | |||||
Losses on early extinguishment of debt | 73 | |||||
Debt Instrument, Redemption Premium | $ 68 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument maturity year | 2,019 | |||||
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | $ 800 | |||||
Unamortized discount | (5) | |||||
Total corporate debt | $ 795 | |||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument, interest rate, stated percentage | 6.375% | |||||
Noninterest Bearing Convertible Debentures [Member] | ||||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument maturity year | 2,019 | 2,019 | ||||
Noninterest Bearing Convertible Debentures [Member] | Corporate Debt Securities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | $ 34 | $ 34 | $ 38 | |||
Unamortized discount | 0 | 0 | 0 | |||
Total corporate debt | $ 34 | $ 34 | $ 38 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||||
Debt instrument, interest rate, stated percentage | 0.00% | 0.00% | 0.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2009 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | $ (93) | $ 39 | $ (245) | $ 129 | ||
Effective Income Tax Rate Reconciliation, Percent | 38.00% | 31.00% | 372.00% | 34.00% | ||
Income Tax Benefit, Resulting from Settlements with Taxing Authorities | $ 220 | |||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Unrecognized tax benefits, beginning of period | $ 330 | |||||
Additions based on tax positions related to prior years | 5 | |||||
Additions based on tax positions related to current year | 0 | |||||
Reductions based on tax positions related to prior years | (304) | |||||
Settlements with taxing authorities | (1) | |||||
Statute of limitations lapses | (1) | |||||
Unrecognized tax benefits, end of period | $ 29 | 29 | ||||
Income Tax Uncertainties [Abstract] | ||||||
Unrecognized tax benefits, period increase (decrease) | (301) | |||||
Debt Conversion, Original Debt, Amount | $ 1,700 | |||||
Components of Deferred Tax Assets [Abstract] | ||||||
Increase (Decrease) in Deferred Income Taxes | 93 | |||||
Deferred tax assets, net | $ 1,000 | $ 1,000 | ||||
Tax Years 2007, 2009 and 2010 [Member] | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Reductions based on tax positions related to prior years | $ (303) |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, | $ (253) | $ (295) | $ (249) | $ (453) |
Other comprehensive income (loss), before reclassifications | 12 | (15) | (13) | 116 |
Amounts reclassified from accumulated other comprehensive loss | 232 | 11 | 253 | 38 |
Other comprehensive income | 244 | (4) | 240 | 154 |
Ending balance, | (9) | (299) | (9) | (299) |
Available-for-sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, | (24) | (11) | 7 | (160) |
Other comprehensive income (loss), before reclassifications | 17 | (20) | (3) | 143 |
Amounts reclassified from accumulated other comprehensive loss | (7) | (7) | (18) | (21) |
Other comprehensive income | 10 | (27) | (21) | 122 |
Ending balance, | (14) | (38) | (14) | (38) |
Cash Flow Hedging Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, | (234) | (289) | (261) | (298) |
Other comprehensive income (loss), before reclassifications | (5) | 5 | (10) | (27) |
Amounts reclassified from accumulated other comprehensive loss | 239 | 18 | 271 | 59 |
Other comprehensive income | 234 | 23 | 261 | 32 |
Ending balance, | 0 | (266) | 0 | (266) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, | 5 | 5 | 5 | 5 |
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Ending balance, | $ 5 | $ 5 | $ 5 | $ 5 |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Loss (Details - Reclassification) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains (losses) on securities and other | $ (360) | $ 8 | $ (340) | $ 30 |
Operating interest expense | (34) | (50) | (122) | (158) |
Income (loss) before income taxes | (246) | 125 | (66) | 381 |
Income tax (expense) benefit | 93 | (39) | 245 | (129) |
Net income (loss) | (153) | 86 | 179 | 252 |
Termination of Legacy Wholesale Funding [Line Items] | ||||
Termination of legacy wholesale funding obligations | 4,400 | |||
Gains (Losses) on early extinguishment of debt | (39) | 0 | (112) | (12) |
Reclassification of deferred losses on cash flow hedges | 370 | 0 | 370 | 0 |
Total Securities Sold Under Agreements To Repurchase And FHLB Advances [Member] | ||||
Termination of Legacy Wholesale Funding [Line Items] | ||||
Termination of legacy wholesale funding obligations | 4,400 | |||
Pre-tax charge related to the termination of legacy wholesale funding obligations | 413 | |||
Gains (Losses) on early extinguishment of debt | (43) | |||
Reclassification of deferred losses on cash flow hedges | 370 | |||
Available-for-sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains (losses) on securities and other | 11 | 12 | 29 | 34 |
Income tax (expense) benefit | (4) | (5) | (11) | (13) |
Net income (loss) | 7 | 7 | 18 | 21 |
Cash Flow Hedging Instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gains (losses) on securities and other | (370) | 0 | (370) | 0 |
Operating interest expense | (17) | (30) | (69) | (97) |
Income (loss) before income taxes | (387) | (30) | (439) | (97) |
Income tax (expense) benefit | 148 | 12 | 168 | 38 |
Net income (loss) | $ (239) | $ (18) | $ (271) | $ (59) |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic: | ||||
Net income (loss) | $ (153) | $ 86 | $ 179 | $ 252 |
Basic weighted-average shares outstanding (in thousands) | 290,480 | 288,843 | 290,105 | 288,536 |
Basic earnings (loss) per share (in dollars per share) | $ (0.53) | $ 0.30 | $ 0.62 | $ 0.87 |
Diluted: | ||||
Net income (loss) | $ (153) | $ 86 | $ 179 | $ 252 |
Basic weighted-average shares outstanding (in thousands) | 290,480 | 288,843 | 290,105 | 288,536 |
Effect of dilutive securities: | ||||
Weighted-average convertible debentures (in thousands) | 0 | 4,066 | 3,517 | 4,071 |
Weighted-average options and restricted stock issued to employees (in thousands) | 0 | 1,210 | 1,376 | 1,361 |
Diluted weighted-average shares outstanding (in thousands) | 290,480 | 294,119 | 294,998 | 293,968 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.53) | $ 0.29 | $ 0.61 | $ 0.86 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,700 | 400 | 100 | 500 |
Convertible debentures | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,300 | |||
Stock options and restricted stock awards and units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,300 | |||
Other stock options and restricted stock awards and units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100 | 400 | 100 | 500 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Minimum Net Capital Required [Abstract] | ||
Minimum percentage of net capital required for broker dealer subsidiary aggregate indebtedness | 6.67% | |
Alternative net capital requirement | $ 250,000 | |
Minimum percentage of aggregate debit balances | 2.00% | |
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | $ 176,000,000 | $ 171,000,000 |
Net Capital | 1,006,000,000 | 1,273,000,000 |
Excess Net Capital | 830,000,000 | 1,102,000,000 |
E TRADE Bank [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 leverage capital | $ 2,960,000,000 | $ 4,548,000,000 |
Tier 1 leverage capital to adjusted assets (percent) | 9.20% | 10.60% |
Tier 1 leverage capital required to be well capitalized | $ 1,612,000,000 | $ 2,143,000,000 |
Tier 1 leverage capital required to be well capitalized to adjusted assets (percent) | 5.00% | 5.00% |
Excess Tier 1 leverage capital to well capitalized | $ 1,348,000,000 | $ 2,405,000,000 |
Tier I risk based capital [Abstract] | ||
Tier 1 risk based capital | $ 2,960,000,000 | $ 4,548,000,000 |
Tier 1 risk based capital to risk weighted assets (percent) | 36.00% | 25.70% |
Tier 1 risk based capital required to be well capitalized | $ 658,000,000 | $ 1,063,000,000 |
Tier 1 risk based capital required to be well capitalized to risk weighted assets (percent) | 8.00% | 6.00% |
Excess Tier 1 risk based capital to well capitalized | $ 2,302,000,000 | $ 3,485,000,000 |
Total capital [Abstract] | ||
Total capital | $ 3,069,000,000 | $ 4,772,000,000 |
Total capital to risk weighted assets (percent) | 37.30% | 26.90% |
Capital required to be well capitalized | $ 823,000,000 | $ 1,772,000,000 |
Total capital required to be well capitalized to risk weighted assets (percent) | 10.00% | 10.00% |
Excess capital to be well capitalized | $ 2,246,000,000 | $ 3,000,000,000 |
Common equity Tier I capital [Abstract] | ||
Common equity Tier 1 capital | $ 2,960,000,000 | |
Common equity Tier 1 to risk weighted assets (percent) | 36.00% | |
Common equity Tier 1 capital required to be well capitalized | $ 535,000,000 | |
Common equity Tier 1 capital required to be well capitalized to risk weighted assets (percent) | 6.50% | |
Excess Common equity Tier 1 capital to be well capitalized | $ 2,425,000,000 | |
E TRADE Financial [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 leverage capital | $ 3,630,000,000 | |
Tier 1 leverage capital to adjusted assets (percent) | 8.50% | |
Tier 1 leverage capital required to be well capitalized | $ 2,127,000,000 | |
Tier 1 leverage capital required to be well capitalized to adjusted assets (percent) | 5.00% | |
Excess Tier 1 leverage capital to well capitalized | $ 1,503,000,000 | |
Tier I risk based capital [Abstract] | ||
Tier 1 risk based capital | $ 3,630,000,000 | |
Tier 1 risk based capital to risk weighted assets (percent) | 39.50% | |
Tier 1 risk based capital required to be well capitalized | $ 736,000,000 | |
Tier 1 risk based capital required to be well capitalized to risk weighted assets (percent) | 8.00% | |
Excess Tier 1 risk based capital to well capitalized | $ 2,894,000,000 | |
Total capital [Abstract] | ||
Total capital | $ 4,070,000,000 | |
Total capital to risk weighted assets (percent) | 44.30% | |
Capital required to be well capitalized | $ 920,000,000 | |
Total capital required to be well capitalized to risk weighted assets (percent) | 10.00% | |
Excess capital to be well capitalized | $ 3,150,000,000 | |
Common equity Tier I capital [Abstract] | ||
Common equity Tier 1 capital | $ 3,630,000,000 | |
Common equity Tier 1 to risk weighted assets (percent) | 39.50% | |
Common equity Tier 1 capital required to be well capitalized | $ 598,000,000 | |
Common equity Tier 1 capital required to be well capitalized to risk weighted assets (percent) | 6.50% | |
Excess Common equity Tier 1 capital to be well capitalized | $ 3,032,000,000 | |
E TRADE Clearing [Member] | ||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | 175,000,000 | 170,000,000 |
Net Capital | 949,000,000 | 795,000,000 |
Excess Net Capital | 774,000,000 | 625,000,000 |
E TRADE Securities [Member] | ||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | 250,000 | 250,000 |
Net Capital | 39,000,000 | 459,000,000 |
Excess Net Capital | 39,000,000 | 459,000,000 |
Dividends from subsidiaries | 515,000,000 | |
Other Broker Dealers [Member] | ||
Broker Dealer Subsidiaries Net Capital [Line Items] | ||
Required Net Capital | 1,000,000 | 1,000,000 |
Net Capital | 18,000,000 | 19,000,000 |
Excess Net Capital | $ 17,000,000 | $ 18,000,000 |
Commitments, Contingencies an70
Commitments, Contingencies and Other Regulatory Matters (Details) $ / shares in Units, $ in Millions | Oct. 20, 2014 | Jun. 13, 2014 | May. 02, 2014 | Apr. 18, 2014 | May. 16, 2011 | Sep. 30, 2015USD ($)$ / principal_amount | Dec. 31, 2003USD ($) | Apr. 30, 2013$ / shares |
Loss Contingencies [Line Items] | ||||||||
Commitments to fund partnerships | $ 32 | |||||||
Time deposit maturities, next rolling twelve months | $ 29 | |||||||
Supply Commitment [Line Items] | ||||||||
Trust preferred securities contractual time period | 30 years | |||||||
Liquidation amount per trust preferred security | $ / principal_amount | 1,000 | |||||||
Estimated maximum potential liability trust preferred securities | $ 423 | |||||||
Unfunded Commitments to Extend Credit [Member] | ||||||||
Supply Commitment [Line Items] | ||||||||
Unfunded Commitments To Extend Credit | $ 90 | |||||||
Axajo Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | $ 1 | |||||||
Droplets Inc Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | |||||||
John Scranton Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Alleged Minimum Amount Company Would Exercise Options At Expiration | $ / shares | $ 0.01 | |||||||
John Scranton Complaint [Member] | Judicial Ruling With Prejudice [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Dismissed, Number | 4 | |||||||
John Scranton Complaint [Member] | Judicial Ruling Without Prejudice [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Claims Dismissed, Number | 2 | |||||||
Providence, Rhode Island Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Defendants | 41 | |||||||
American European Insurance Company Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Defendants | 42 | |||||||
James Flynn And Dominic Morelli Complaint [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Number of Defendants | 26 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||
Number of Operating Segments | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net operating interest income | $ 263 | $ 265 | $ 801 | $ 795 | |
Total non-interest income (loss) | (190) | 175 | 173 | 558 | |
Total net revenue | 73 | 440 | 974 | 1,353 | |
Provision (benefit) for loan losses | (25) | 10 | (17) | 26 | |
Total operating expense | 293 | 277 | 902 | 851 | |
Income (loss) before other income (expense) and income taxes | (195) | 153 | 89 | 476 | |
Total other income (expense) | (51) | (28) | (155) | (95) | |
Income (loss) before income taxes | (246) | 125 | (66) | 381 | |
Income tax expense (benefit) | (93) | 39 | (245) | 129 | |
Net income (loss) | (153) | 86 | 179 | 252 | |
Total assets | 41,205 | 41,205 | $ 45,530 | ||
Extinguishment of Debt Disclosures [Abstract] | |||||
Losses on early extinguishment of debt | (39) | 0 | (112) | (12) | |
Corporate/Other | |||||
Segment Reporting Information [Line Items] | |||||
Net operating interest income | 0 | 0 | 1 | 0 | |
Total non-interest income (loss) | 0 | 0 | 0 | 0 | |
Total net revenue | 0 | 0 | 1 | 0 | |
Total operating expense | 73 | 58 | 203 | 164 | |
Income (loss) before other income (expense) and income taxes | (73) | (58) | (202) | (164) | |
Total other income (expense) | (51) | (28) | (155) | (95) | |
Income (loss) before income taxes | (124) | (86) | (357) | (259) | |
Total assets | 625 | 625 | 423 | ||
Trading And Investing | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net operating interest income | 174 | 161 | 517 | 449 | |
Total non-interest income (loss) | 168 | 166 | 508 | 523 | |
Total net revenue | 342 | 327 | 1,025 | 972 | |
Total operating expense | 197 | 183 | 614 | 574 | |
Income (loss) before other income (expense) and income taxes | 145 | 144 | 411 | 398 | |
Income (loss) before income taxes | 145 | 144 | 411 | 398 | |
Total assets | 11,181 | 11,181 | 12,032 | ||
Balance Sheet Management | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net operating interest income | 89 | 104 | 283 | 346 | |
Total non-interest income (loss) | (358) | 9 | (335) | 35 | |
Total net revenue | (269) | 113 | (52) | 381 | |
Provision (benefit) for loan losses | (25) | 10 | (17) | 26 | |
Total operating expense | 23 | 36 | 85 | 113 | |
Income (loss) before other income (expense) and income taxes | (267) | 67 | (120) | 242 | |
Income (loss) before income taxes | (267) | $ 67 | (120) | $ 242 | |
Total assets | $ 29,399 | $ 29,399 | $ 33,075 |