Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | E TRADE FINANCIAL CORP | ||
Entity Central Index Key | 1,015,780 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 266,334,340 | ||
Entity Public Float | $ 8 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Interest income | $ 1,571 | $ 1,233 | $ 1,215 |
Interest expense | (86) | (85) | (194) |
Net interest income | 1,485 | 1,148 | 1,021 |
Commissions | 441 | 442 | 424 |
Fees and service charges | 369 | 268 | 210 |
Gains (losses) on securities and other, net | 28 | 42 | (324) |
Other revenue | 43 | 41 | 39 |
Total non-interest income | 881 | 793 | 349 |
Total net revenue | 2,366 | 1,941 | 1,370 |
Provision (benefit) for loan losses | (168) | (149) | (40) |
Non-interest expense: | |||
Compensation and benefits | 546 | 501 | 466 |
Advertising and market development | 166 | 131 | 124 |
Clearing and servicing | 124 | 105 | 95 |
Professional services | 99 | 97 | 103 |
Occupancy and equipment | 116 | 98 | 88 |
Communications | 121 | 87 | 90 |
Depreciation and amortization | 82 | 79 | 81 |
FDIC insurance premiums | 31 | 25 | 41 |
Amortization of other intangibles | 36 | 23 | 20 |
Restructuring and acquisition-related activities | 15 | 35 | 17 |
Losses on early extinguishment of debt, net | 58 | 0 | 112 |
Other non-interest expenses | 76 | 71 | 82 |
Total non-interest expense | 1,470 | 1,252 | 1,319 |
Income before income tax expense (benefit) | 1,064 | 838 | 91 |
Income tax expense (benefit) | 450 | 286 | (177) |
Net income | 614 | 552 | 268 |
Preferred stock dividends | 25 | 0 | 0 |
Net income available to common shareholders | $ 589 | $ 552 | $ 268 |
Basic earnings per common share (in dollars per share) | $ 2.16 | $ 1.99 | $ 0.92 |
Diluted earnings per common share (in dollars per share) | $ 2.15 | $ 1.98 | $ 0.91 |
Shares used in computation of per common share data: | |||
Basic (in thousands) | 273,190 | 277,789 | 290,762 |
Diluted (in thousands) | 274,352 | 279,048 | 295,011 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | $ 614 | $ 552 | $ 268 |
Available-for-sale securities: | |||||||||||
Unrealized gains (losses), net | 137 | (5) | (84) | ||||||||
Reclassification into earnings, net | (24) | (33) | (24) | ||||||||
Net change from available-for-sale securities | 113 | (38) | (108) | ||||||||
Cash flow hedging instruments: | |||||||||||
Unrealized losses, net | 0 | 0 | (10) | ||||||||
Reclassification into earnings, net | 0 | 0 | 271 | ||||||||
Net change from cash flow hedging instruments | 0 | 0 | 261 | ||||||||
Foreign currency translation: | |||||||||||
Foreign currency translation losses, net | 0 | 0 | (3) | ||||||||
Reclassification into earnings, net | (2) | 0 | 0 | ||||||||
Net change from foreign currency translation | (2) | 0 | (3) | ||||||||
Other comprehensive income (loss) | 111 | (38) | 150 | ||||||||
Comprehensive income | $ 725 | $ 514 | $ 418 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and equivalents | $ 931 | $ 1,950 |
Cash required to be segregated under federal or other regulations | 872 | 1,460 |
Available-for-sale securities | 20,679 | 13,892 |
Held-to-maturity securities (fair value of $23,719 and $15,716 at December 31, 2017 and 2016, respectively) | 23,839 | 15,751 |
Margin receivables | 9,071 | 6,731 |
Loans receivable, net (net of allowance for loan losses of $74 and $221 at December 31, 2017 and 2016, respectively) | 2,654 | 3,551 |
Receivables from brokers, dealers and clearing organizations | 1,178 | 1,056 |
Property and equipment, net | 253 | 239 |
Goodwill | 2,370 | 2,370 |
Other intangibles, net | 284 | 320 |
Deferred tax assets, net | 251 | 756 |
Other assets | 983 | 923 |
Total assets | 63,365 | 48,999 |
Liabilities: | ||
Deposits | 42,742 | 31,682 |
Customer payables | 9,449 | 8,159 |
Payables to brokers, dealers and clearing organizations | 1,542 | 983 |
Other borrowings | 910 | 409 |
Corporate debt | 991 | 994 |
Other liabilities | 800 | 500 |
Total liabilities | 56,434 | 42,727 |
Commitments and contingencies (see Note 20) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, 403,000 and 400,000 shares issued and outstanding at December 31, 2017 and 2016, respectively; aggregate liquidation preference of $700 and $400 at December 31, 2017 and 2016, respectively | 689 | 394 |
Common stock, $0.01 par value, 400,000,000 shares authorized, 266,827,881 and 273,963,415 shares issued and outstanding at December 31, 2017 and 2016, respectively | 3 | 3 |
Additional paid-in-capital | 6,582 | 6,921 |
Accumulated deficit | (317) | (909) |
Accumulated other comprehensive loss | (26) | (137) |
Total shareholders’ equity | 6,931 | 6,272 |
Total liabilities and shareholders’ equity | $ 63,365 | $ 48,999 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEET (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Held-to-maturity securities, fair value | $ 23,719 | $ 15,716 |
Allowance for loan losses | $ 74 | $ 221 |
Shareholders’ equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 403,000 | 400,000 |
Preferred stock, shares outstanding (in shares) | 403,000 | 400,000 |
Preferred Stock, Liquidation Preference, Value | $ 700 | $ 400 |
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) | 266,827,881 | 273,963,415 |
Common stock shares outstanding (in shares) | 266,827,881 | 273,963,415 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Preferred StockPreferred Class A [Member] | Preferred StockPreferred Class B [Member] | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance, at Dec. 31, 2014 | $ 5,375 | $ 0 | $ 3 | $ 7,350 | $ (1,729) | $ (249) | ||
Balance, (in shares) at Dec. 31, 2014 | 289 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 268 | 268 | ||||||
Other comprehensive income (loss) | 150 | 150 | ||||||
Conversion of convertible debentures | 30 | 30 | ||||||
Conversion of convertible debentures, shares | 3 | |||||||
Exercise of stock options and related tax effects | 2 | 2 | ||||||
Repurchases of common stock | (50) | (50) | ||||||
Repurchases of common stock, shares | (2) | |||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes | (10) | (10) | ||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes, shares | 1 | |||||||
Share-based compensation | 34 | 34 | ||||||
Balance, at Dec. 31, 2015 | 5,799 | 0 | $ 3 | 7,356 | (1,461) | (99) | ||
Balance, (in shares) at Dec. 31, 2015 | 291 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 552 | 552 | ||||||
Other comprehensive income (loss) | (38) | (38) | ||||||
Conversion of convertible debentures | 5 | 5 | ||||||
Conversion of convertible debentures, shares | 1 | |||||||
Exercise of stock options and related tax effects | 4 | 4 | ||||||
Issuance of preferred stock | 394 | $ 394 | ||||||
Repurchases of common stock | (452) | (452) | ||||||
Repurchases of common stock, shares | (19) | |||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes | (22) | (22) | ||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes, shares | 1 | |||||||
Share-based compensation | 30 | 30 | ||||||
Balance, at Dec. 31, 2016 | 6,272 | 394 | $ 3 | 6,921 | (909) | (137) | ||
Balance, (in shares) at Dec. 31, 2016 | 274 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change | 3 | 3 | ||||||
Net income | 614 | 614 | ||||||
Other comprehensive income (loss) | 111 | 111 | ||||||
Conversion of convertible debentures | 3 | 3 | ||||||
Exercise of stock options and related tax effects | 1 | 1 | ||||||
Issuance of preferred stock | 295 | $ 295 | ||||||
Preferred stock dividends | (25) | (25) | ||||||
Repurchases of common stock | (362) | (362) | ||||||
Repurchases of common stock, shares | (9) | |||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes | (22) | (22) | ||||||
Issuance of common stock for share-based compensation, net of shares withheld to pay taxes, shares | 2 | |||||||
Share-based compensation | 41 | 41 | ||||||
Balance, at Dec. 31, 2017 | $ 6,931 | $ 689 | $ 3 | $ 6,582 | $ (317) | $ (26) | ||
Balance, (in shares) at Dec. 31, 2017 | 267 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash flows from operating activities: | ||||
Net income | $ 614 | $ 552 | $ 268 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision (benefit) for loan losses | (168) | (149) | (40) | |
Depreciation and amortization (including discount amortization and accretion) | 262 | 239 | 325 | |
(Gains) losses on securities and other, net | (28) | (42) | 324 | |
Losses on early extinguishment of debt, net | 9 | 0 | 37 | |
Share-based compensation | 41 | 30 | 34 | |
Deferred tax expense (benefit) | 450 | 275 | (176) | |
Other | (7) | (5) | 1 | |
Net effect of changes in assets and liabilities: | ||||
Decrease (increase) in cash required to be segregated under federal or other regulations | 588 | (403) | (502) | |
(Increase) decrease in receivables from brokers, dealers and clearing organizations | (134) | (528) | 364 | |
(Increase) decrease in margin receivables | (2,340) | 667 | 277 | |
(Increase) decrease in other assets | (49) | 2 | (22) | |
Increase (decrease) in payables to brokers, dealers and clearing organizations | 559 | (593) | (123) | |
Increase in customer payables | 1,290 | 1,615 | 89 | |
Increase (decrease) in other liabilities | 34 | (14) | (13) | |
Net cash provided by operating activities | 1,121 | 1,646 | 843 | |
Cash flows from investing activities: | ||||
Purchases of available-for-sale securities | (9,819) | (6,705) | (6,150) | |
Proceeds from sales of available-for-sale securities | 1,645 | 3,194 | 3,905 | |
Proceeds from maturities of and principal payments on available-for-sale securities | 1,588 | 1,540 | 1,667 | |
Purchases of held-to-maturity securities | (10,519) | (4,389) | (2,614) | |
Proceeds from maturities of and principal payments on held-to-maturity securities | 2,556 | 2,068 | 1,788 | |
Proceeds from sale of loans | 40 | 0 | 40 | |
Decrease in loans receivable | 983 | 1,176 | 1,337 | |
Capital expenditures for property and equipment | (102) | (75) | (70) | |
Proceeds from sale of real estate owned and repossessed assets | 29 | 20 | 28 | |
Acquisition of OptionsHouse, net of cash acquired | 0 | (723) | 0 | |
Net cash flow from derivative contracts | 66 | (109) | (2) | |
Other | (43) | (1) | 73 | |
Net cash (used in) provided by investing activities | (13,576) | (4,004) | 2 | |
Cash flows from financing activities: | ||||
Increase in deposits | 11,060 | 2,237 | 4,555 | |
Preferred stock dividends | (25) | 0 | 0 | |
Net decrease in securities sold under agreements to repurchase | 0 | (82) | (3,590) | |
Advances from FHLB | 1,850 | 0 | 960 | |
Payments on advances from FHLB | (1,350) | 0 | (1,880) | |
Proceeds from issuance of senior notes | 999 | 0 | 460 | |
Payments on senior notes | (1,000) | 0 | (800) | |
Repurchases of trust preferred securities | 0 | 0 | (15) | |
Proceeds from issuance of preferred stock | 300 | 400 | 0 | |
Repurchases of common stock | (362) | (452) | (50) | |
Net cash flow from derivatives hedging liabilities | 0 | 0 | (16) | |
Other | (36) | (28) | (19) | |
Net cash provided by (used in) financing activities | 11,436 | 2,075 | (395) | |
(Decrease) increase in cash and equivalents | (1,019) | (283) | 450 | |
Cash and equivalents, beginning of period | 1,950 | 2,233 | 1,783 | |
Cash and equivalents, end of period | 931 | 1,950 | 2,233 | |
Supplemental disclosures: | ||||
Cash paid for interest(1) | 126 | [1] | 77 | 212 |
Cash paid for income taxes, net of refunds | 8 | 6 | 8 | |
Non-cash investing and financing activities: | ||||
Transfers of loans held-for-investment to loans held-for-sale | 57 | 0 | 39 | |
Transfers from loans to other real estate owned and repossessed assets | 27 | 34 | 27 | |
Conversion of convertible debentures to common stock | 3 | 5 | 30 | |
Transfer of available-for-sale securities to held-to-maturity securities | 0 | $ 492 | 0 | |
Early redemption premium on corporate debt | $ 49 | $ 75 | ||
[1] | (1)Includes early redemption premium of $49 million and $75 million paid in connection with debt extinguishment transactions during the year ended December 31, 2017 and 2015, respectively. |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—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. The Company's most significant, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer that clears and settles customer securities transactions. • E*TRADE Bank is a federally chartered savings bank that provides FDIC insurance on qualifying amounts of customer deposits and provides other banking and cash management capabilities. • E*TRADE Savings Bank, a subsidiary of E*TRADE Bank, is a federally chartered savings bank that provides FDIC insurance on qualifying amounts of customer deposits. • E*TRADE Futures is a registered non-clearing FCM that provides clearing and settlement services for customer futures transactions. • E*TRADE Capital Management is a registered investment adviser, through which the Company offers investment advisory services. • E*TRADE Financial Corporate Services is a provider of software and services for managing equity compensation plans to corporate clients. 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. 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 the 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 consolidated financial statements do not include any consolidated VIEs for all periods presented. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. 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 acquired intangible assets and estimates of effective tax rates, deferred taxes and valuation allowance. Summary of Significant Accounting Policies Cash and Equivalents The Company considers all highly liquid investments with original or remaining maturities of three months or less at the time of purchase that are not required to be segregated under federal or other regulations to be cash and equivalents. Cash and equivalents included $490 million and $1.1 billion at December 31, 2017 and 2016, respectively, of overnight cash deposits, a portion of which the Company is required to maintain with the Federal Reserve Bank. Cash Required to be Segregated Under Federal or Other Regulations Certain cash balances that are required to be segregated for the exclusive benefit of the Company’s brokerage and futures customers are included in the cash required to be segregated under federal or other regulations line item. Available-for-Sale Securities Available-for-sale securities are composed principally of debt securities, primarily residential mortgage-backed securities and agency debt securities. Securities classified as available-for-sale are carried at fair value, with the unrealized gains and losses, after applicable hedge accounting adjustments, reflected as a component of accumulated other comprehensive loss, net of tax. Realized and unrealized gains or losses on available-for-sale debt and equity securities are computed using the specific identification method. Interest earned on available-for-sale securities is included in interest income. Amortization or accretion of premiums and discounts on available-for-sale debt securities is also recognized in interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Realized gains and losses on available-for-sale debt and equity securities, with the exception of other-than-temporary impairment (OTTI) if applicable, are included in the gains (losses) on securities and other, net line item. Available-for-sale securities that have an unrealized loss (impaired securities) are evaluated for OTTI at each balance sheet date. There was no OTTI recognized for the periods presented. Held-to-Maturity Securities Held-to-maturity securities consist of debt securities, primarily residential mortgage-backed securities and agency debt securities. Held-to-maturity securities are carried at amortized cost based on the Company’s intent and ability to hold these securities to maturity. Interest earned on held-to-maturity debt securities is included in interest income. Amortization or accretion of premiums and discounts is also recognized in interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Held-to-maturity securities that have an unrecognized loss (impaired securities) are evaluated for OTTI at each balance sheet date. There was no OTTI recognized for the periods presented. Margin Receivables Margin receivables represent credit extended to customers to finance their purchases of securities by borrowing against securities the customers own. Securities owned by customers are held as collateral for amounts due on the margin receivables, the value of which is not reflected in the consolidated balance sheet. The Company is permitted to sell or re-pledge these securities held as collateral and to use the securities to enter into securities lending transactions, to collateralize borrowings or for delivery to counterparties to cover customer short positions. Revenues earned from the securities lending transactions are included in interest income and expenses incurred are included in interest expense. Loans Receivable and related Allowance for Loan Losses Loans Receivable, Net Loans receivable, net consists of real estate, consumer loans and collateralized lines of credit that management has the intent and ability to hold for the foreseeable future or until maturity, also known as loans held-for-investment. Loans held-for-investment are carried at amortized cost adjusted for unamortized premiums or discounts on purchased loans, deferred fees or costs on originated loans, net charge-offs, and the allowance for loan losses. Premiums or discounts on purchased loans and deferred fees or costs on originated loans are recognized in interest income using the effective interest method over the contractual life of the loans and are adjusted for actual prepayments. The Company’s classes of loans are one- to four-family, home equity and consumer loans and other. Impaired Loans The Company considers a loan to be impaired when it meets the definition of a TDR. Impaired loans exclude smaller-balance homogeneous one- to four-family, home equity and consumer loans that have not been modified as TDRs and are collectively evaluated for impairment. Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. Troubled Debt Restructurings Loan modifications completed under the Company’s loss mitigation programs in which economic concessions were granted to borrowers experiencing financial difficulty are considered TDRs. TDRs also include loans that have been charged-off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification even if the loan has not been modified under the Company’s programs. Upon being classified as a TDR, such loan is categorized as an impaired loan and is considered impaired until maturity regardless of whether the borrower performs under the terms of the loan. The Company also processes minor modifications on a number of loans through traditional collections actions taken in the normal course of servicing delinquent accounts. Minor modifications resulting in an insignificant delay in the timing of payments are not considered economic concessions and therefore are not classified as TDRs. Impairment on loan modifications is measured on an individual loan level basis, generally using a discounted cash flow model. When certain characteristics of the modified loan cast substantial doubt on the borrower’s ability to repay the loan, the Company identifies the loan as collateral dependent and charges-off the amount of the modified loan balance in excess of the estimated current value of the underlying property less estimated selling costs. Collateral dependent TDRs are identified based on the terms of the modification, which includes assigning a higher level of risk to loans in which the LTV or CLTV is greater than 110% or 125% , respectively, a borrower’s credit score is less than 600 and certain types of modifications, such as interest-only payments. TDRs that are not identified as higher risk using this risk assessment process and for which impairment is measured using a discounted cash flow model, continue to be evaluated in the event that they become higher risk collateral dependent TDRs. 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. Interest previously accrued, but not collected, is reversed against current income when a loan is placed on nonaccrual status. Interest payments received on nonperforming loans are recognized on a cash basis in interest income until it is doubtful that full payment will be collected, at which point payments are applied to principal. The recognition of deferred fees or costs on originated loans and premiums or discounts on purchased loans in interest income is discontinued for nonperforming loans. Nonperforming loans return to accrual status based on the following policy: • Nonperforming loans, excluding TDRs and certain junior liens that have a delinquent senior lien, return to accrual status when the loan becomes less than 90 days past due. • TDRs, excluding loans in bankruptcy, are classified as nonperforming loans at the time of modification. Such TDRs return to accrual status after six consecutive payments are made in accordance with the modified terms. Accruing TDRs that subsequently become delinquent will immediately return to nonaccrual status. • Bankruptcy loan TDRs are classified as nonperforming loans within 60 days of bankruptcy notification and remain on nonaccrual status regardless of the payment performance. Delinquent Loans Loans delinquent 180 days and greater have been written down to the e stimated current value of the underlying property less estimated selling costs . Loans delinquent 90 to 179 days generally have not been written down to the e stimated current value of the underlying property less estimated selling costs (unless they are in process of bankruptcy or are modifications for which there is substantial doubt as to the borrower’s ability to repay the loan), but present a risk of future charge-off. Additional charge-offs on loans delinquent 180 days and greater are possible if home prices decline beyond current estimates. The Company monitors loans in which a borrower’s current credit history casts doubt on their ability to repay a loan. Loans are classified as special mention when they are between 30 and 89 days past due. The trend in special mention loan balances is generally indicative of the expected trend for charge-offs in future periods, as these loans have a greater propensity to migrate into nonaccrual status and ultimately charge-off. One- to four-family loans are generally secured in a first lien position by real estate assets, reducing the potential loss when compared to an unsecured loan. Home equity loans are generally secured by real estate assets; however, the majority of these loans are secured in a second lien position, which substantially increases the potential loss when compared to a first lien position. 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 assumptions. Loan losses are recognized when, based on management's estimate, it is probable that a loss has been incurred. The property value for both one- to four-family and home equity loans is assessed when the loan has been delinquent for 180 days or when the Company has received bankruptcy notification, regardless of whether or not the property is in foreclosure, and the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs is recognized as a charge-off to the allowance for loan losses. Modified loans considered TDRs are charged off when they are identified as collateral dependent based on certain terms of the modification. Closed-end consumer loans are charged off when the loan has been 120 days delinquent or when it is determined that collection is not probable. Determining the adequacy of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods. For loans that are not TDRs, the Company establishes a general allowance and evaluates 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, a specific allowance is established by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses is 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 • General economic conditions, including the impact of weather-related events The allowance for loan losses is typically equal to management’s forecast of loan losses in the 18 months following the balance sheet date as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. The quantitative allowance methodology also includes the identification of higher risk mortgage loans and the period of loan losses captured within the general allowance includes the total probable loss over the remaining life of these loans. The general allowance for loan losses also includes 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 that may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, the risk associated with the following three primary sets of factors are evaluated: 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. Receivables from and Payables to Brokers, Dealers and Clearing Organizations Receivables from brokers, dealers and clearing organizations include deposits paid for securities borrowed, clearing deposits and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include deposits received for securities loaned and net payables arising from unsettled trades. Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Securities borrowing transactions require the Company to deposit cash with the lender whereas securities lending transactions result in the Company receiving collateral in the form of cash, with both requiring cash in an amount generally in excess of the market value of the securities. Interest income and interest expense are recorded on an accrual basis. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary. Property and Equipment, Net Property and equipment is carried at cost and depreciated on a straight-line basis over their estimated useful lives, generally three to seven years . Leasehold improvements are depreciated over the lesser of their estimated useful lives or lease terms. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The costs of internally developed software that qualify for capitalization are included in the property and equipment, net line item. For qualifying internal-use software costs, capitalization begins when the conceptual formulation, design and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The Company does not capitalize pilot projects and projects where it believes that future economic benefits are less than probable. Technology development costs incurred in the development and enhancement of software used in connection with services provided by the Company that do not otherwise qualify for capitalization treatment are expensed as incurred. Completed projects, as well as other purchased software, are carried at cost and are amortized on a straight-line basis over their estimated useful lives. The estimated useful life of internally developed software is four years . Goodwill and Other Intangibles, Net Goodwill is recognized as a result of business combinations and represents the excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets. The Company evaluates goodwill for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of its equity is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, the Company must perform a two-step quantitative assessment of goodwill. The Company may elect to bypass the qualitative assessment and proceed directly to performing a two-step quantitative assessment. For the years ended December 31, 2017 and 2016, the Company elected to perform a qualitative analysis to determine whether it was more likely than not that the fair value of its equity was less than the carrying value. As a result of this qualitative assessment, the Company determined that it was not necessary to perform a quantitative impairment test and concluded that there were no impairments to the carrying value of the Company's goodwill during the years ended December 31, 2017 and 2016. The Company currently does not have any intangible assets with indefinite lives other than goodwill. The Company evaluates intangible assets with finite lives for impairment on an annual basis or when events or changes indicate the carrying value may not be recoverable. The Company also evaluates the remaining useful lives of intangible assets with finite lives each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Customer relationship intangibles are amortized on an accelerated basis, while technology and trade name intangibles are amortized on a straight-line basis. For additional information on goodwill and other intangibles, net, see Note 10—Goodwill and Other Intangibles, Net . Income Taxes Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect. Valuation allowances for deferred tax assets are established if it is determined, based on evaluation of available evidence at the time the determination is made, that it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax expense (benefit) includes (1) deferred tax expense (benefit), which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances, and (2) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a taxing authority. Uncertain tax positions are only recognized to the extent it is more likely than not that the uncertain tax position will be sustained upon examination. For uncertain tax positions, a tax benefit is recognized for cases in which it is more than fifty percent likely of being sustained on ultimate settlement. Interest and penalties, if any, related to income tax matters are recognized as income tax expense in the period they are incurred or such changes are enacted. For additional information on income taxes, see Note 15—Income Taxes . Real Estate Owned and Repossessed Assets Real estate owned and repossessed assets are included in the other assets line item in the consolidated balance sheet. Real estate owned represents real estate acquired through foreclosure and also includes those properties acquired through a deed in lieu of foreclosure or similar legal agreement. Both real estate owned and repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. Equity Method, Cost Method and Other Investments The Company’s equity method, cost method and other investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, that are not required to be consolidated. These investments are reported in the other assets line item in the consolidated balance sheet. Under the equity method, the Company recognizes its share of the investee’s net income or loss in the gains (losses) on securities and other, net line item in the consolidated statement of income. The Company’s other investments include those accounted for using the proportional amortization method, whereby 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 as a component of income tax expense. The Company recognizes a liability for all legally binding unfunded equity commitments to the investees in the other liabilities line item in the consolidated balance sheet. The Company evaluates its equity and cost method investments for impairment when events or changes indicate the carrying value may not be recoverable. If the impairment is determined to be other-than-temporary, the Company will recognize an impairment loss in the gains (losses) on securities and other, net line item equal to the difference between the expected realizable value and the carrying value of the investment. The Company is a member of, and owns capital stock in, the FHLB system. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment which totaled $36 million at December 31, 2017 and $15 million at December 31, 2016. The Company accounts for its investment in FHLB stock as a cost method investment. Deposits and Customer Payables Deposits are primarily composed of sweep deposits held at bank subsidiaries, which represent uninvested cash balances in certain customer brokerage accounts. Customer payables represent credit balances in customer brokerage accounts arising from deposits of funds and sales of securities and other funds pending completion of securities transactions. Customer payables primarily represent customer cash held by E*TRADE Securities. The Company pays interest on certain deposits and customer payables balances. Other Borrowings Other borrowings includes securities sold under agreements to repurchase, FHLB advances, TRUPs and borrowings from lines of credit. Securities sold under agreements to repurchase the same or similar securities, also known as repurchase agreements, are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. Repurchase agreements are treated as secured borrowings for financial statement purposes and the obligations to repurchase securities sold are therefore reflected as liabilities in the consolidated balance sheet. The FHLB provides the Company with reserve credit capacity and authorizes advances based on the security of pledged home mortgages and other assets (principally securities that are obligations of, or guaranteed by, the US Government) provided the Company meets certain creditworthiness standards. Prior to 2008, E*TRADE Bank's parent company ETB Holdings, Inc. (ETBH) raised capital through the formation of trusts, which sold TRUPs in the capital markets. The capital securities must be redeemed in whole at the due date, which is generally 30 years after issuance. The trusts used the proceeds from the sale of issuances to purchase subordinated debentures issued by ETBH presented in the other borrowings line item. For additional information on other borrowings, see Note 13—Other Borrowings . Other Liabilities Other liabilities includes accrued operating expenses and contingent liabilities. These liabilities are impacted by estimates for litigation and regulatory matters as well as estimates related to general operating expenses, such as incentive compensation and market data usage within communications expense. Management estimates reflect the probable liability as of the balance sheet date. In determining the adequacy of estimated liabilities, the Company performs ongoing evaluations based on available information. Comprehensive Income The Company’s comprehensive income is composed of net income, the noncredit portion of OTTI on debt securities, unrealized gains (losses) on available-for-sale securities, the effective portion of the unrealized gains (losses) on derivatives in cash flow hedge relationships and foreign currency translation gains (losses), net of reclassification adjustments and related tax. Interest Income Interest income is recognized as earned through holding interest-earning assets, such as available-for-sale and held-to-maturity securities, margin receivables, loans and cash, and from securities lending activities. Interest income also includes the impact of the Company’s derivative transactions related to interest-earning assets. Interest Expense Interest expense is recognized as incurred through holding interest-bearing liabilities, such as corporate debt, other borrowings, customer payables and deposits, and from securities lending activities. Interest expense also includes the impact of the Company’s derivative transactions related to interest-bearing liabilities. Commissions Commissions are derived from the Company’s customers and are impacted by both trade type and trade mix. Commissions from securities transactions are recognized on a trade-date basis. Fees and Service Charges Fees and service charges consist of order flow revenue, mutual fund service fees, advisor management fees, foreign exchange revenue, reorganization fees and other fees and service charges. Fees and service charges also includes revenue earned on customer cash held by third parties. Gains (Losses) on Securities and Other, Net Gains (losses) on securities and other, net includes gains or losses resulting from the sale of available-for-sale securities; gains or losses resulting from sales of loans; hedge ineffectiveness and reclassification of deferred losses on cash flow hedges; gains or losses recognized on equity investments; and gains or losses on derivative instruments that are not accounted for as hedging instruments. Gains or losses resulting from the sale of available-for-sale securities are recognized at the trade-date, based on the difference between the anticipated proceeds and the amortized cost of the specific securities sold. OTTI The Company evaluates available-for-sale securities and held-to-maturity debt securities for OTTI on a quarterly basis. The Company considers OTTI for an available-for-sale or held-to-maturity debt security to have occurred if one of the following conditions are met: the Company intends to sell the impaired debt security; it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis; or the Company does not expect to recover the entire amortized cost basis of the security. For impaired debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell before recovery of the security’s amortized cost basis, the Company uses both qualitative and quantitative valuation measures to evaluate whether the Company expects to recover the entire amortized cost basis of the security. If the Company does not expect to recover the entire amortized cost basis of these securities then the Company will separate OTTI into two components: 1) the amount related to credit loss, recognized in earnings; and 2) the noncredit portion of OTTI, recognized through other comprehensive income. If the Company intends to sell an impaired debt security or if it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. The Company considers OTTI for an available-for-sale equity security to have occurred if the decline in the security’s fair value below its cost basis is deemed other than temporary based on evaluation of both qualitative and quantitative valuation measures. If impairment is determined to |
Restructuring and Acquisition-R
Restructuring and Acquisition-Related Activities | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Acquisition-Related Activities [Abstract] | |
RESTRUCTURING AND OTHER ACQUISITION-RELATED ACTIVITIES | NOTE 2—RESTRUCTURING AND OTHER ACQUISITION-RELATED ACTIVITIES OptionsHouse Acquisition On September 12, 2016, the Company completed its acquisition of all of the outstanding equity of Aperture New Holdings, Inc., the ultimate parent company of OptionsHouse, from Aperture Holdings, L.P. for $725 million . The Company recorded goodwill of $578 million which primarily includes the synergies expected to result from combining operations with OptionsHouse and coupling its derivatives platform with the Company's existing product offerings. The Company also recorded intangible assets of $169 million , which are subject to amortization over their estimated useful lives: Estimated Fair Value (dollars in millions) Estimated Useful Life (In Years) Customer relationships $ 118 14 Technology 48 7 Trade name 3 2 Total intangible assets $ 169 The following table shows the components of restructuring and acquisition-related activities expense (dollars in millions): Year Ended December 31, 2017 2016 2015 Restructuring activities $ 12 $ 28 $ 17 Acquisition-related costs 3 7 — Total restructuring and acquisition-related activities $ 15 $ 35 $ 17 Restructuring and acquisition-related costs during the year ended December 31, 2017, primarily includes costs incurred in connection with the integration of OptionsHouse as well as costs from the planned acquisition of TCA. Restructuring and acquisition-related activities during the year ended December 31, 2016 primarily related to employee severance from the realignment of the Company's core brokerage business and organizational structure as well as costs in connection with its purchase of OptionsHouse. Restructuring activities during the year ended December 31, 2015 includes costs related to department and business reorganizations, such as the shutdown of certain of the Company's international operations, and approximately $6 million of executive severance for a position that was eliminated during the year. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2017 | |
Interest Income and Interest Expense Disclosure [Abstract] | |
INTEREST INCOME AND INTEREST EXPENSE | NOTE 3—INTEREST INCOME AND INTEREST EXPENSE The following table shows the components of interest income and interest expense (dollars in millions): Year Ended December 31, 2017 2016 2015 Interest income: Cash and equivalents $ 9 $ 7 $ 3 Cash required to be segregated under federal or other regulations 12 6 1 Available-for-sale securities 390 266 244 Held-to-maturity securities 572 425 346 Margin receivables 320 249 276 Loans 157 191 230 Broker-related receivables and other 3 1 3 Subtotal interest income 1,463 1,145 1,103 Other interest revenue (1) 108 88 112 Total interest income (2) 1,571 1,233 1,215 Interest expense: Deposits (4 ) (3 ) (4 ) Customer payables (5 ) (5 ) (5 ) Other borrowings (22 ) (18 ) (117 ) Corporate debt (48 ) (54 ) (59 ) Subtotal interest expense (79 ) (80 ) (185 ) Other interest expense (3) (7 ) (5 ) (9 ) Total interest expense (4) (86 ) (85 ) (194 ) Net interest income $ 1,485 $ 1,148 $ 1,021 (1) Represents interest income on securities loaned. (2) Interest income reflects $(59) million , $(35) million , and $(42) million recognized on hedges that qualify for hedge accounting for the years ended December 31, 2017, 2016, and 2015, respectively. (3) Represents interest expense on securities borrowed. (4) Interest expense reflects $(74) million recognized on hedges that qualify for hedge accounting for the year ended December 31, 2015. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 4—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 for similar assets and liabilities in an active market, 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 Mortgage-backed Securities The Company’s mortgage-backed securities portfolio is comprised of agency mortgage-backed securities which are guaranteed by US government sponsored enterprises and federal agencies. The fair value of agency mortgage-backed securities was determined using a market approach with quoted market prices, recent transactions and spread data for identical or similar instruments. Agency mortgage-backed securities were categorized in Level 2 of the fair value hierarchy. Other Debt Securities The Company's fair value level classification of US Treasuries is based on the original maturity dates of the securities and whether the securities are the most recent issuances of a given maturity. US Treasuries with original maturities less than one year are classified as Level 1. US Treasuries with original maturities longer than one year are classified as Level 1 if they represent the most recent issuance of a given maturity; otherwise, these securities are classified as Level 2. The fair value measurements of agency debentures and 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. All of the Company’s municipal bonds were rated investment grade at December 31, 2017 . 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 prices in active markets. Derivative Instruments Interest rate swaps 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. These property valuations are updated on a monthly, quarterly or semi-annual basis depending on the type of valuation initially used. 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. 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. Recoveries of previously charged-off amounts are recognized within the allowance for loan losses when received. 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 loans, 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 December 31, 2017 and 2016 : Unobservable Inputs Average Range December 31, 2017 Loans receivable: One- to four-family Appraised value $ 520,700 $60,000 - $1,200,000 Home equity Appraised value $ 317,300 $38,000 - $2,066,000 Real estate owned Appraised value $ 355,200 $4,500 - $2,000,000 December 31, 2016 Loans receivable: One- to four-family Appraised value $ 408,100 $50,000 - $1,490,000 Home equity Appraised value $ 312,000 $6,000 - $2,500,000 Real estate owned Appraised value $ 342,300 $21,500 - $1,800,000 Recurring and Nonrecurring Fair Value Measurements Assets and liabilities measured at fair value at December 31, 2017 and 2016 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value December 31, 2017: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ — $ 19,195 $ — $ 19,195 Agency debentures — 966 — 966 US Treasuries — 458 — 458 Agency debt securities — 33 — 33 Municipal bonds — 20 — 20 Total debt securities — 20,672 — 20,672 Publicly traded equity securities 7 — — 7 Total available-for-sale securities 7 20,672 — 20,679 Receivables from brokers, dealers and clearing organizations: US Treasuries 300 — — 300 Other assets: Derivative assets (1) — 131 — 131 Total assets measured at fair value on a recurring basis (2) $ 307 $ 20,803 $ — $ 21,110 Liabilities Other liabilities: Derivative liabilities (1) $ — $ 14 $ — $ 14 Total liabilities measured at fair value on a recurring basis (2) $ — $ 14 $ — $ 14 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 22 $ 22 Home equity — — 13 13 Total loans receivable — — 35 35 Other assets: Loans held-for-sale — 17 — 17 Real estate owned — — 26 26 Total assets measured at fair value on a nonrecurring basis (3) $ — $ 17 $ 61 $ 78 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2017 . Information related to derivative instruments is detailed in Note 8—Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 33% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2017 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2017 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2016: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ — $ 12,634 $ — $ 12,634 Agency debentures — 788 — 788 US Treasuries — 407 — 407 Agency debt securities — 24 — 24 Municipal bonds — 32 — 32 Total debt securities — 13,885 — 13,885 Publicly traded equity securities 7 — — 7 Total available-for-sale securities 7 13,885 — 13,892 Other assets: Derivative assets (1) — 165 — 165 Total assets measured at fair value on a recurring basis (2) $ 7 $ 14,050 $ — $ 14,057 Liabilities Other liabilities: Derivative liabilities (1) $ — $ 31 $ — $ 31 Total liabilities measured at fair value on a recurring basis (2) $ — $ 31 $ — $ 31 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 25 $ 25 Home equity — — 21 21 Total loans receivable — — 46 46 Other assets: Real estate owned — — 35 35 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 81 $ 81 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2016 . Information related to derivative instruments is detailed in Note 8—Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 29% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2016 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2016 , and for which a fair value measurement was recorded during the period. The following table presents losses recognized on assets measured at fair value on a nonrecurring basis during the years ended December 31, 2017 and 2016 (dollars in millions): Year Ended December 31, 2017 2016 2015 One- to four-family $ 4 $ 4 $ 7 Home equity 5 12 14 Total losses on loans receivable measured at fair value $ 9 $ 16 $ 21 Transfers Between Levels 1, 2 and 3 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 levels during the years ended December 31, 2017 and 2016 . Recurring Fair Value Measurements Categorized within Level 3 For the periods presented, 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 December 31, 2017 and 2016 (dollars in millions): December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 931 $ 931 $ — $ — $ 931 Cash required to be segregated under federal or other regulations $ 872 $ 872 $ — $ — $ 872 Held-to-maturity securities: Agency mortgage-backed securities $ 20,502 $ — $ 20,404 $ — $ 20,404 Agency debentures 710 — 708 — 708 Agency debt securities 2,615 — 2,595 — 2,595 Other 12 — — 12 12 Total held-to-maturity securities $ 23,839 $ — $ 23,707 $ 12 $ 23,719 Margin receivables (1) $ 9,071 $ — $ 9,071 $ — $ 9,071 Loans receivable, net: One- to four-family $ 1,417 $ — $ — $ 1,463 $ 1,463 Home equity 1,051 — — 1,055 1,055 Consumer and other 186 — — 187 187 Total loans receivable, net (2) $ 2,654 $ — $ — $ 2,705 $ 2,705 Receivables from brokers, dealers and clearing organizations (1) $ 878 $ — $ 878 $ — $ 878 Other assets (1)(3) $ 18 $ — $ 18 $ — $ 18 Liabilities Deposits $ 42,742 $ — $ 42,741 $ — $ 42,741 Customer payables $ 9,449 $ — $ 9,449 $ — $ 9,449 Payables to brokers, dealers and clearing organizations $ 1,542 $ — $ 1,542 $ — $ 1,542 Other borrowings: FHLB advances $ 500 $ — $ 500 $ — $ 500 Trust preferred securities $ 410 $ — $ — $ 379 $ 379 Total other borrowings $ 910 $ — $ 500 $ 379 $ 879 Corporate debt $ 991 $ — $ 992 $ — $ 992 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was approximately $12.8 billion at December 31, 2017. Of this amount, $3.2 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2017. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $74 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2017 . (3) The $18 million in other assets at December 31, 2017 represents securities borrowing from customers under the fully paid lending program. December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,950 $ 1,950 $ — $ — $ 1,950 Cash required to be segregated under federal or other regulations $ 1,460 $ 1,460 $ — $ — $ 1,460 Held-to-maturity securities: Agency mortgage-backed securities $ 12,868 $ — $ 12,839 $ — $ 12,839 Agency debentures 29 — 29 — 29 Agency debt securities 2,854 — 2,848 — 2,848 Total held-to-maturity securities $ 15,751 $ — $ 15,716 $ — $ 15,716 Margin receivables (1) $ 6,731 $ — $ 6,731 $ — $ 6,731 Loans receivable, net: One- to four-family $ 1,918 $ — $ — $ 1,942 $ 1,942 Home equity 1,385 — — 1,311 1,311 Consumer and other 248 — — 249 249 Total loans receivable, net (2) $ 3,551 $ — $ — $ 3,502 $ 3,502 Receivables from brokers, dealers and clearing organizations $ 1,056 $ — $ 1,056 $ — $ 1,056 Liabilities Deposits $ 31,682 $ — $ 31,681 $ — $ 31,681 Customer Payables $ 8,159 $ — $ 8,159 $ — $ 8,159 Payables to brokers, dealers and clearing organizations $ 983 $ — $ 983 $ — $ 983 Trust preferred securities $ 409 $ — $ — $ 288 $ 288 Corporate debt $ 994 $ — $ 1,050 $ — $ 1,050 (1) 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 $9.8 billion at December 31, 2016. Of this amount, $2.0 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2016. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $221 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2016 . The fair value measurement techniques for financial instruments not carried at fair value on the consolidated balance sheet are summarized as follows: Cash and equivalents, cash required to be segregated under federal or other regulations, margin receivables, receivables from brokers, dealers and clearing organizations, customer payables, payables to brokers, dealers and clearing organizations and other assets —Due to their short term nature, fair value is estimated to be carrying value. Held-to-maturity securities —Fair value of held-to-maturity securities is determined in a manner consistent with the pricing of available-for-sale securities described above. 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 and pricing features. Assumptions for expected losses, prepayments, cash flows and discount rates are adjusted to reflect the individual characteristics of the loans, such as credit risk, coupon, lien position, 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 lower than both the carrying value and the estimated fair value of the portfolio. Deposits —Fair value of certificates of deposit is estimated using a discounted cash flow model. For the remainder of deposits, fair value is the amount payable on demand at the reporting date. Securities sold under agreements to repurchase and FHLB advances —Fair value for securities sold under agreements to repurchase 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. Trust preferred securities —Fair value is estimated by discounting future cash flows at the yield implied by dealer pricing quotes. Corporate debt —Fair value is estimated using dealer pricing quotes. Fair Value of Commitments and Contingencies 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. 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 does not estimate the fair value of those commitments. Information related to such commitments and contingent liabilities is included in Note 20—Commitments, Contingencies and Other Regulatory Matters . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Text Block] | NOTE 5—OFFSETTING ASSETS AND LIABILITIES For financial statement purposes, the Company does not offset derivative instruments 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 the Company's derivative instruments, securities borrowing and securities lending transactions which are transacted under master agreements to enable the users of the Company’s consolidated financial statements to evaluate the potential effect of rights of set-off between these recognized assets and liabilities at December 31, 2017 and 2016 (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 (1) Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount December 31, 2017 Assets: Deposits paid for securities borrowed (2) $ 759 $ — $ 759 $ (251 ) $ (483 ) $ 25 Total $ 759 $ — $ 759 $ (251 ) $ (483 ) $ 25 Liabilities: Deposits received for securities loaned (3) $ 1,373 $ — $ 1,373 $ (251 ) $ (1,004 ) $ 118 Derivative liabilities (4)(5) 5 — 5 — (5 ) — Total $ 1,378 $ — $ 1,378 $ (251 ) $ (1,009 ) $ 118 December 31, 2016 Assets: Deposits paid for securities borrowed (2) $ 774 $ — $ 774 $ (192 ) $ (560 ) $ 22 Total $ 774 $ — $ 774 $ (192 ) $ (560 ) $ 22 Liabilities: Deposits received for securities loaned (3) $ 926 $ — $ 926 $ (192 ) $ (661 ) $ 73 Derivative liabilities (4)(5) 6 — 6 — (6 ) — Total $ 932 $ — $ 932 $ (192 ) $ (667 ) $ 73 (1) Net amount of deposits paid for securities borrowed are reflected in the receivables from brokers, dealers and clearing organizations and other assets line items in the consolidated balance sheet. Net amount of deposits received for securities loaned and derivative liabilities are reflected in the payables to brokers, dealers and clearing organizations and other liabilities line items in the consolidated balance sheet, respectively. (2) Included in the gross amounts of deposits paid for securities borrowed was $347 million and $307 million at December 31, 2017 and 2016 , 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. (3) Included in the gross amounts of deposits received for securities loaned was $821 million and $546 million at December 31, 2017 and 2016 , 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. (4) Excludes net accrued interest payable of $2 million at both December 31, 2017 and 2016 . (5) Collateral pledged included held-to-maturity securities at amortized cost at both December 31, 2017 and 2016 . Securities Lending Transactions Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Securities borrowing transactions require the Company to deposit cash with the lender whereas securities lending transactions result in the Company receiving collateral in the form of cash, with both requiring cash in an amount generally in excess of the market value of the securities. These transactions have overnight or continuous remaining contractual maturities. Securities lending transactions expose the Company to counterparty credit risk and market risk. 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. The Company monitors the market value of the securities borrowed and loaned 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. Derivative Transactions Certain types of derivatives that the Company utilizes in its hedging activities 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. Collateral exchanged under these contracts is not included in the table above as the contracts may not qualify as master netting agreements. At December 31, 2017 and 2016 , the Company had $131 million and $165 million , respectively, of cleared derivative contract assets. At December 31, 2017 and 2016 , the Company had $9 million and $25 million , respectively, of cleared derivative contract liabilities. In January 2017, a clearing organization through which the Company executes certain of its derivative contracts amended its rulebook to legally characterize variation margin payments as settlements of the derivatives' exposure rather than collateral against the exposure. For these contracts, amounts exchanged with counterparties are reflected as a reduction of the related derivative assets or liabilities, including accrued interest, on the consolidated balance sheet. At December 31, 2017 , the Company had derivative assets and liabilities of $6 million and $18 million , respectively, excluding accrued interest, that were settled by variation margin payments and are therefore excluded from the table above. |
Available-for-Sale and Held-to-
Available-for-Sale and Held-to-Maturity Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | NOTE 6—AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2017 and 2016 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value December 31, 2017: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 19,395 $ 47 $ (247 ) $ 19,195 Agency debentures 939 39 (12 ) 966 US Treasuries 452 10 (4 ) 458 Agency debt securities 34 — (1 ) 33 Municipal bonds 20 — — 20 Total debt securities 20,840 96 (264 ) 20,672 Publicly traded equity securities (1) 7 — — 7 Total available-for-sale securities $ 20,847 $ 96 $ (264 ) $ 20,679 Held-to-maturity securities: Agency mortgage-backed securities $ 20,502 $ 95 $ (193 ) $ 20,404 Agency debentures 710 — (2 ) 708 Agency debt securities 2,615 15 (35 ) 2,595 Other 12 — — 12 Total held-to-maturity securities $ 23,839 $ 110 $ (230 ) $ 23,719 December 31, 2016: Available-for-sale securities: (2) Debt securities: Agency mortgage-backed securities $ 12,946 $ 24 $ (336 ) $ 12,634 Agency debentures 791 18 (21 ) 788 US Treasuries 452 — (45 ) 407 Agency debt securities 25 — (1 ) 24 Municipal bonds 32 — — 32 Total debt securities 14,246 42 (403 ) 13,885 Publicly traded equity securities (1) 7 — — 7 Total available-for-sale securities $ 14,253 $ 42 $ (403 ) $ 13,892 Held-to-maturity securities: (2) Agency mortgage-backed securities $ 12,868 $ 123 $ (152 ) $ 12,839 Agency debentures 29 — — 29 Agency debt securities 2,854 26 (32 ) 2,848 Total held-to-maturity securities $ 15,751 $ 149 $ (184 ) $ 15,716 (1) Consists of investments in a mutual fund related to the Community Reinvestment Act. (2) Securities with a fair value of approximately $492 million were transferred from available-for-sale securities to held-to-maturity securities during the year ended December 31, 2016 pursuant to an evaluation of our investment strategy and an assessment by management about our intent and ability to hold those particular securities until maturity. Contractual Maturities The contractual maturities of all available-for-sale and held-to-maturity debt securities at December 31, 2017 are shown in the following table (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 363 353 Due within five to ten years 8,713 8,647 Due after ten years 11,764 11,672 Total available-for-sale debt securities $ 20,840 $ 20,672 Held-to-maturity debt securities: Due within one year $ 160 $ 159 Due within one to five years 2,027 2,039 Due within five to ten years 5,509 5,486 Due after ten years 16,143 16,035 Total held-to-maturity debt securities $ 23,839 $ 23,719 At December 31, 2017 and 2016 , the Company had pledged $5.5 billion and $0.5 billion , respectively, of held-to-maturity debt securities, and $352 million and $6 million , respectively, of available-for-sale securities, as collateral for FHLB advances, derivatives and other purposes. 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 December 31, 2017 and 2016 (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 December 31, 2017: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 4,638 $ (23 ) $ 8,027 $ (224 ) $ 12,665 $ (247 ) Agency debentures — — 283 (12 ) 283 (12 ) US Treasuries — — 147 (4 ) 147 (4 ) Agency debt securities 9 — 24 (1 ) 33 (1 ) Municipal bonds — — 11 — 11 — Publicly traded equity securities 7 — — — 7 — Total temporarily impaired available-for-sale securities $ 4,654 $ (23 ) $ 8,492 $ (241 ) $ 13,146 $ (264 ) Held-to-maturity securities: Agency mortgage-backed securities $ 9,982 $ (78 ) $ 4,906 $ (115 ) $ 14,888 $ (193 ) Agency debentures 597 (2 ) 9 — 606 (2 ) Agency debt securities 373 (3 ) 1,345 (32 ) 1,718 (35 ) Total temporarily impaired held-to-maturity securities $ 10,952 $ (83 ) $ 6,260 $ (147 ) $ 17,212 $ (230 ) December 31, 2016: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 9,281 $ (279 ) $ 1,620 $ (57 ) $ 10,901 $ (336 ) Agency debentures 454 (21 ) — — 454 (21 ) US Treasuries 407 (45 ) — — 407 (45 ) Agency debt securities 24 (1 ) — — 24 (1 ) Municipal bonds 13 — — — 13 — Publicly traded equity securities 7 — — — 7 — Total temporarily impaired available-for-sale securities $ 10,186 $ (346 ) $ 1,620 $ (57 ) $ 11,806 $ (403 ) Held-to-maturity securities: Agency mortgage-backed securities $ 5,929 $ (123 ) $ 1,272 $ (29 ) $ 7,201 $ (152 ) Agency debentures 18 — — — 18 — Agency debt securities 1,739 (32 ) 18 — 1,757 (32 ) Total temporarily impaired held-to-maturity securities $ 7,686 $ (155 ) $ 1,290 $ (29 ) $ 8,976 $ (184 ) The Company does not believe that any individual unrealized loss in the available-for-sale portfolio or unrecognized loss in the held-to-maturity portfolio as of December 31, 2017 represents a credit loss. 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 December 31, 2017 . There were no impairment losses recognized in earnings on available-for-sale or held-to-maturity securities during the years ended December 31, 2017, 2016 and 2015. The credit loss component of debt securities held by the Company that had a noncredit loss component previously recognized in other comprehensive income was $136 million at both December 31, 2017 and December 31, 2016, decreasing from $152 million at December 31, 2015. Gains (Losses) on Securities and Other, Net The following table shows the components of the gains (losses) on securities and other, net line item on the consolidated statement of income for the years ended December 31, 2017, 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Reclassification of deferred losses on cash flow hedges $ — $ — $ (370 ) Gains on available-for-sale securities, net: Gains on available-for-sale securities 40 54 58 Losses on available-for-sale securities — (1 ) (20 ) Subtotal 40 53 38 Hedge ineffectiveness (14 ) (6 ) (1 ) Equity method investment income (loss) and other 2 (5 ) 9 Gains (losses) on securities and other, net $ 28 $ 42 $ (324 ) |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 7—LOANS RECEIVABLE, NET The following table presents loans receivable at December 31, 2017 and 2016 disaggregated by delinquency status (dollars in millions): Days Past Due Current 30-89 90-179 180+ Total Unamortized premiums, net Allowance for loans losses Loans Receivable, Net December 31, 2017 One- to four-family $ 1,269 $ 59 $ 22 $ 82 $ 1,432 $ 9 $ (24 ) $ 1,417 Home equity 1,014 36 15 32 1,097 — (46 ) 1,051 Consumer and other 185 3 — — 188 2 (4 ) 186 Total loans receivable $ 2,468 $ 98 $ 37 $ 114 $ 2,717 $ 11 $ (74 ) $ 2,654 December 31, 2016 One- to four-family $ 1,774 $ 67 $ 23 $ 86 $ 1,950 $ 13 $ (45 ) $ 1,918 Home equity 1,442 43 18 53 1,556 — (171 ) 1,385 Consumer and other 245 4 1 — 250 3 (5 ) 248 Total loans receivable $ 3,461 $ 114 $ 42 $ 139 $ 3,756 $ 16 $ (221 ) $ 3,551 During the year ended December 31, 2017, the Company sold certain loans with a carrying value of $41 million for proceeds that approximated book value. The Company also transferred loans with a carrying value of $17 million to held-for-sale during the year ended December 31, 2017. These loans are reflected within other assets on the consolidated balance sheet at December 31, 2017. At December 31, 2017 , the Company pledged $2.2 billion and $0.2 billion of loans as collateral to the FHLB and Federal Reserve Bank of Richmond, respectively. At December 31, 2016 , the Company pledged $3.1 billion and $0.3 billion of loans as collateral to the FHLB and Federal Reserve Bank of Richmond, respectively. 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. The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at December 31, 2017 and 2016 (dollars in millions): One- to Four-Family Home Equity December 31, December 31, Current LTV/CLTV (1) 2017 2016 2017 2016 <=80% $ 1,031 $ 1,308 $ 531 $ 686 80%-100% 256 413 291 414 100%-120% 91 143 176 274 >120% 54 86 99 182 Total mortgage loans receivable $ 1,432 $ 1,950 $ 1,097 $ 1,556 Average estimated current LTV/CLTV (2) 70 % 73 % 84 % 87 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 81 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for HELOCs and outstanding principal balance for HEILs. 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 value estimates are updated on a quarterly basis. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for HELOCs, 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, HEILs and the maximum available line for HELOCs. One- to Four-Family Home Equity December 31, December 31, Current FICO 2017 2016 2017 2016 >=720 $ 805 $ 1,121 $ 548 $ 778 719 - 700 138 179 106 156 699 - 680 105 153 93 141 679 - 660 78 121 79 117 659 - 620 122 154 103 149 <620 184 222 168 215 Total mortgage loans receivable $ 1,432 $ 1,950 $ 1,097 $ 1,556 One- to four-family loans include loans with an interest-only period, followed by an amortizing period. At December 31, 2017 , nearly 100% of these loans were amortizing and this portfolio will be fully converted in 2018. The home equity loan portfolio consists of HEILs and HELOCs. HEILs are primarily fully amortizing loans that do not offer the option of an interest-only payment. The majority of HELOCs had an interest only draw period at origination and converted to amortizing loans at the end of the draw period. At December 31, 2017 , nearly 100% of the HELOC portfolio had converted from the interest-only draw period and will be fully converted in 2019. The weighted average age of our mortgage and consumer loans receivable was 11.8 and 10.8 years at December 31, 2017 and 2016 , respectively. Approximately 34% and 36% of the Company’s mortgage loans receivable were concentrated in California at December 31, 2017 and 2016 , respectively. No other state had concentrations of mortgage loans that represented 10% or more of the Company’s mortgage loans receivable at December 31, 2017 and 2016 . Nonperforming Loans The Company classifies loans as nonperforming when they are no longer accruing interest. The following table shows the comparative data for nonperforming loans at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 2016 One- to four-family $ 192 $ 215 Home equity 98 136 Consumer and other — 1 Total nonperforming loans receivable $ 290 $ 352 At December 31, 2017 and 2016 , the Company held $26 million and $35 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 held $101 million and $112 million of loans for which formal foreclosure proceedings were in process at December 31, 2017 and 2016 , respectively. Allowance for Loan Losses The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio at the balance sheet date, as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. The general allowance for loan losses includes 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 we believe may impact the level of credit losses. The following table presents the allowance for loan losses by loan portfolio at December 31, 2017 and 2016 (dollars in millions): One- to Four-Family Home Equity Consumer and other Total December 31, December 31, December 31, December 31, 2017 2016 2017 2016 2017 2016 2017 2016 General reserve: Quantitative component $ 15 $ 34 $ 14 $ 118 $ 4 $ 5 $ 33 $ 157 Qualitative component 3 4 3 2 — — 6 6 Specific valuation allowance 6 7 29 51 — — 35 58 Total allowance for loan losses $ 24 $ 45 $ 46 $ 171 $ 4 $ 5 $ 74 $ 221 Allowance as a % of loans (1) 1.6 % 2.3 % 4.2 % 11.0 % 2.1 % 1.9 % 2.7 % 5.8 % (1) Allowance as a percentage of loans receivable is calculated based on the gross loans receivable including net unamortized premiums for each respective category. The following table provides a roll forward by loan portfolio of the allowance for loan losses for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 One- to Four-Family Home Equity Consumer and other Total Allowance for loan losses, beginning of period $ 45 $ 171 $ 5 $ 221 Provision (benefit) for loan losses (29 ) (141 ) 2 (168 ) Charge-offs — (7 ) (6 ) (13 ) Recoveries 8 23 3 34 Net (charge-offs) recoveries 8 16 (3 ) 21 Allowance for loan losses, end of period $ 24 $ 46 $ 4 $ 74 Year Ended December 31, 2016 One- to Four-Family Home Equity Consumer and other Total Allowance for loan losses, beginning of period $ 40 $ 307 $ 6 $ 353 Provision (benefit) for loan losses (2 ) (148 ) 1 (149 ) Charge-offs (1 ) (17 ) (7 ) (25 ) Recoveries 8 29 5 42 Net (charge-offs) recoveries 7 12 (2 ) 17 Allowance for loan losses, end of period $ 45 $ 171 $ 5 $ 221 Year Ended December 31, 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 (55 ) — (40 ) Charge-offs (2 ) (31 ) (11 ) (44 ) Recoveries — 26 7 33 Net (charge-offs) recoveries (2 ) (5 ) (4 ) (11 ) Allowance for loan losses, end of period $ 40 $ 307 $ 6 $ 353 Total loans receivable designated as held-for-investment decreased $0.9 billion during the year ended December 31, 2017 . The allowance for loan losses was $74 million , or 2.7% of total loans receivable, as of December 31, 2017 compared to $221 million , or 5.8% of total loans receivable, as of December 31, 2016 . Net recoveries for the year ended December 31, 2017 were $21 million compared to $17 million in the same period in 2016. The benefit for loan losses of $168 million for the year ended December 31, 2017 reflected approximately $70 million of benefit recognized during the second quarter of 2017 resulting from refined default assumptions based on the sustained outperformance of converted mortgage loans that had been amortizing for 12 months or longer. At the time of this refinement in the second quarter of 2017, more than 50% of these converted loans had been amortizing 12 months or longer. This actual performance data was better than prior performance assumptions and, combined with the substantial performance history, the uncertainty with respect to the population of converting loans had significantly decreased. In order to refine the default assumptions around the remaining population that had not yet started amortizing or that had not reached 12 months post conversion, the Company evaluated whether the credit quality and performance of these loans was consistent with the seasoned amortizing portfolio. The Company determined that FICO scores, LTV/CLTVs and delinquency rates were comparable to the seasoned portfolio, and therefore applied the refined default assumptions to this remaining population. The benefits to provision for loan losses also reflect recoveries in excess of prior estimates, including recoveries of previous charge-offs. The timing and magnitude of charge-offs and recoveries are affected by many factors and we anticipate variability from quarter to quarter. 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 December 31, 2017 and 2016 (dollars in millions): Recorded Investment Allowance for Loan Losses December 31, December 31, 2017 2016 2017 2016 Collectively evaluated for impairment: One- to four-family $ 1,228 $ 1,717 $ 18 $ 38 Home equity 932 1,361 17 120 Consumer and other 190 253 4 5 Total collectively evaluated for impairment 2,350 3,331 39 163 Individually evaluated for impairment: One- to four-family 213 246 6 7 Home equity 165 195 29 51 Total individually evaluated for impairment 378 441 35 58 Total $ 2,728 $ 3,772 $ 74 $ 221 Impaired Loans—Troubled Debt Restructurings Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. The Company classifies loans as nonperforming when they are no longer accruing interest. The recorded investment in loans modified as TDRs includes the charge-offs related to certain loans that were written down to estimated current value of the underlying property less estimated selling costs. 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 December 31, 2017 and 2016 (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) December 31, 2017 One- to four-family $ 83 $ 74 $ 13 $ 5 $ 38 $ 213 Home equity 104 34 10 4 13 165 Total $ 187 $ 108 $ 23 $ 9 $ 51 $ 378 December 31, 2016 One- to four-family $ 97 $ 90 $ 16 $ 8 $ 35 $ 246 Home equity 119 41 10 4 21 195 Total $ 216 $ 131 $ 26 $ 12 $ 56 $ 441 (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) Total recorded investment in TDRs includes premium (discount), as applicable, and is net of charge-offs, which were $67 million and $144 million for one-to four-family and home equity loans, respectively, as of December 31, 2017 and $79 million and $178 million , respectively, as of December 31, 2016. (4) Total recorded investment in TDRs at December 31, 2017 consisted of $285 million of loans modified as TDRs and $93 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2016 consisted of $316 million of loans modified as TDRs and $125 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 years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Average Recorded Investment Interest Income Recognized December 31, December 31, 2017 2016 2015 2017 2016 2015 One- to four-family $ 221 $ 269 $ 303 $ 9 $ 11 $ 9 Home equity 179 204 213 16 17 17 Total $ 400 $ 473 $ 516 $ 25 $ 28 $ 26 The following table shows detailed information related to the Company’s TDRs and specific valuation allowances at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 December 31, 2016 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 $ 54 $ 6 $ 48 $ 61 $ 7 $ 54 Home equity $ 83 $ 29 $ 54 $ 111 $ 51 $ 60 Without a recorded allowance: (1) One- to four-family $ 159 $ — $ 159 $ 185 $ — $ 185 Home equity $ 82 $ — $ 82 $ 84 $ — $ 84 Total: One- to four-family $ 213 $ 6 $ 207 $ 246 $ 7 $ 239 Home equity $ 165 $ 29 $ 136 $ 195 $ 51 $ 144 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. The following tables provide the number of loans and post-modification balances immediately after being modified by major class during the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Interest Rate Reduction Number of Loans Principal Forgiven Deferred Principal Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other (1) Total December 31, 2017 One- to four-family 40 $ — $ — $ 13 $ 1 $ 4 $ 18 Home equity 294 — — 12 1 9 22 Total 334 $ — $ — $ 25 $ 2 $ 13 $ 40 December 31, 2016 One- to four-family 47 $ 1 $ — $ 8 $ 2 $ 7 $ 18 Home equity 518 — — 8 3 25 36 Total 565 $ 1 $ — $ 16 $ 5 $ 32 $ 54 December 31, 2015 One- to four-family 34 $ — $ 1 $ 9 $ — $ 3 $ 13 Home equity 367 — — 3 2 19 24 Total 401 $ — $ 1 $ 12 $ 2 $ 22 $ 37 (1) Amounts represent loans whose terms were modified in a manner that did not result in an interest rate reduction, including re-aged loans, extensions, and loans with capitalized interest. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 8—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company enters into derivative transactions primarily to protect against interest rate risk on the value of certain assets. 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 of derivatives as reported in the consolidated balance sheet at December 31, 2017 and 2016 (dollars in millions): Fair Value (1) Notional Asset (2) Liability (3) Net (4) December 31, 2017 Interest rate contracts: Fair value hedges $ 8,609 $ 131 $ (14 ) $ 117 Total derivatives designated as hedging instruments (5) $ 8,609 $ 131 $ (14 ) $ 117 December 31, 2016 Interest rate contracts: Fair value hedges $ 3,862 $ 165 $ (31 ) $ 134 Total derivatives designated as hedging instruments (5) $ 3,862 $ 165 $ (31 ) $ 134 (1) At December 31, 2017 , excludes derivative assets and liabilities of $6 million and $18 million , respectively, that were executed through a central clearing organization and were settled by variation margin payments. See Note 5—Offsetting Assets and Liabilities for additional information. (2) Reflected in the other assets line item on the consolidated balance sheet. (3) Reflected in the other liabilities line item on the consolidated balance sheet. (4) Represents net fair value of derivative instruments for disclosure purposes only. (5) All derivatives were designated as hedging instruments at December 31, 2017 and 2016 . Cash Flow Hedges The Company terminated $4.4 billion of legacy wholesale funding obligations during 2015 along with the cash flow hedges used to hedge the forecasted transactions related to these 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 year ended December 31, 2015. See Note 13—Other Borrowings for additional information. Fair Value Hedges Fair value hedges are used to offset exposure to changes in value of certain fixed-rate assets. Fair value hedges are accounted for by recording the fair value of the derivative instrument and the fair value of the asset being hedged on the consolidated balance sheet. To the extent that the hedge is ineffective, the changes in the fair values of both the derivative instruments and the underlying assets will not offset, and the difference or hedge ineffectiveness, is reflected in the gains (losses) on securities and other, net line item in the consolidated statement of income . The following table summarizes the effect of interest rate contracts designated as fair value hedges and related hedged items on the consolidated statement of income for the year ended December 31, 2017 and 2016 (dollars in millions): Year Ended December 31, 2017 2016 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ 1 $ (3 ) $ (2 ) $ 28 $ (32 ) $ (4 ) Agency mortgage-backed securities 36 (48 ) (12 ) 42 (44 ) (2 ) Total gains (losses) included in earnings $ 37 $ (51 ) $ (14 ) $ 70 $ (76 ) $ (6 ) Year Ended December 31, 2015 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (3 ) $ 3 $ — Agency mortgage-backed securities (4 ) 3 (1 ) Total gains (losses) included in earnings $ (7 ) $ 6 $ (1 ) (1) Reflected in the gains (losses) on securities and other, net line item on the consolidated statement of income . Credit Risk Impact on Fair Value Measurements Credit risk is an element of the recurring fair value measurements for certain assets and liabilities, including derivative instruments. Credit risk is managed by limiting activity to approved counterparties and setting aggregate exposure limits for each approved counterparty. The Company also monitors collateral requirements on derivative instruments through credit support agreements, which reduce risk by permitting the netting of transactions with the same counterparty upon occurrence of certain events. The Company considered the impact of credit risk on the fair value measurement for derivative instruments, particularly those in net liability positions to counterparties, to be mitigated by the enforcement of credit support agreements, and the collateral requirements therein. The Company’s credit risk analysis for derivative instruments also considered the credit loss exposure on derivative instruments in net asset positions. During the year ended December 31, 2017 , the consideration of counterparty credit risk did not result in an adjustment to the valuation of the Company’s derivative instruments. Impact on Liquidity In the normal course of business, collateral requirements contained in the Company’s derivative contracts are enforced by the Company and its counterparties. Upon enforcement of the collateral requirements, the amount of collateral requested is typically based on the net fair value of all derivative instruments with the counterparty; that is derivative assets net of derivative liabilities at the counterparty level. If the Company were to be in violation of certain provisions of the derivative contracts, the counterparties to the derivative instruments could request payment or collateralization on the derivative instruments. The Company expects such requests would be based on the fair value of derivative assets net of derivative liabilities at the counterparty level. The fair value of derivative instruments in net liability positions at the counterparty level was $5 million at December 31, 2017 . The fair value of the Company’s agency-backed securities pledged as collateral related to derivative contracts in net liability positions to counterparties, was $23 million at December 31, 2017 , which exceeded derivative instruments in net liability positions at the counterparty level by $18 million . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 9—PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following asset classes at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 December 31, 2016 Gross Amount Accumulated Depreciation and Amortization Net Amount Gross Amount Accumulated Depreciation and Amortization Net Amount Software $ 403 $ (289 ) $ 114 $ 449 $ (355 ) $ 94 Leasehold improvements 122 (98 ) 24 119 (97 ) 22 Equipment 132 (101 ) 31 133 (92 ) 41 Buildings 72 (32 ) 40 72 (30 ) 42 Furniture and fixtures 7 (4 ) 3 19 (17 ) 2 Land 3 — 3 3 — 3 Construction in progress (1) 38 — 38 35 — 35 Total (2) $ 777 $ (524 ) $ 253 $ 830 $ (591 ) $ 239 (1) Construction in progress includes software in the process of development of $22 million at both December 31, 2017 and 2016 . (2) The Company executed a sale-leaseback transaction on its Alpharetta, Georgia office in 2014 and the transaction was accounted for as a financing as it did not qualify for leaseback accounting. The related assets continue to be included in the property and equipment, net line item on the consolidated balance sheet. Depreciation and amortization expense related to property and equipment was $82 million , $79 million and $81 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Software includes capitalized internally developed software costs, net, of $53 million , $46 million and $42 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Amortization of completed and in-service software was $36 million , $36 million and $41 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The obligation for future minimum lease payments and minimum sublease proceeds to be received under the Alpharetta, Georgia lease is as follows (dollars in millions): Obligation for Minimum Lease Payments Minimum Sublease Proceeds Years ending December 31, 2018 $ 5 $ (3 ) 2019 5 (3 ) 2020 5 (3 ) 2021 5 (3 ) 2022 5 (3 ) Thereafter 9 — Total $ 34 $ (15 ) |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES, NET | NOTE 10—GOODWILL AND OTHER INTANGIBLES, NET Goodwill At both December 31, 2017 and 2016 , the Company had goodwill of $2.4 billion . There was a $578 million addition to the carrying value of the Company's goodwill during the year ended December 31, 2016, which was recognized in connection with the OptionsHouse acquisition. There were no impairments to the carrying value of the Company’s goodwill during the years ended December 31, 2017 , 2016 and 2015 . At both December 31, 2017 and 2016 , goodwill was net of accumulated impairment losses of $243 million . Other Intangibles, Net At December 31, 2017 and 2016 , the Company had other intangible assets of $284 million and $320 million , respectively. There was a $169 million addition to other intangible assets during the year ended December 31, 2016, which was recognized in connection with the OptionsHouse acquisition. The following table outlines the Company's other intangible assets with finite lives (dollars in millions): December 31, 2017 Weighted Average Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount Customer relationships 18 10 $ 553 $ (309 ) $ 244 Technology 7 6 48 (9 ) 39 Trade name 2 1 3 (2 ) 1 Total $ 604 $ (320 ) $ 284 December 31, 2016 Weighted Average Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount Customer relationships 18 11 $ 553 $ (281 ) $ 272 Technology 7 7 48 (2 ) 46 Trade name 2 2 3 (1 ) 2 Total $ 604 $ (284 ) $ 320 Assuming no future impairments of other intangibles or additional acquisitions or dispositions, the following table presents the Company's future annual amortization expense (dollars in millions): Years ending December 31, 2018 $ 40 2019 39 2020 37 2021 35 2022 33 Thereafter 100 Total future amortization expense $ 284 |
Receivables from and Payables t
Receivables from and Payables to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2017 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Due to and from Broker-Dealers and Clearing Organizations Disclosure [Text Block] | NOTE 11—RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING ORGANIZATIONS Receivables from and payables to brokers, dealers and clearing organizations consist of the following (in millions): December 31, 2017 2016 Receivables: Securities borrowed $ 740 $ 774 Receivables from clearing organizations 376 231 Other 62 51 Total $ 1,178 $ 1,056 Payables: Securities loaned $ 1,373 $ 926 Payables to clearing organizations 123 7 Other 46 50 Total $ 1,542 $ 983 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 12—DEPOSITS Deposits are summarized as follows (dollars in millions): Amount Weighted-Average Rate December 31, December 31, 2017 2016 2017 2016 Sweep deposits $ 37,734 $ 26,362 0.01 % 0.01 % Savings deposits 2,912 3,185 0.01 % 0.01 % Other deposits (1) 2,096 2,135 0.03 % 0.03 % Total deposits $ 42,742 $ 31,682 0.01 % 0.01 % (1) Includes checking deposits, money market deposits and certificates of deposit. As of December 31, 2017 and 2016 , the Company had $207 million and $177 million in non-interest bearing deposits, respectively. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Other Borrowings Disclosure [Abstract] | |
OTHER BORROWINGS | NOTE 13—OTHER BORROWINGS Other borrowings at December 31, 2017 and 2016 are summarized as follows (dollars in millions): December 31, 2017 2016 FHLB advances $ 500 $ — Trust preferred securities 410 409 Total other borrowings $ 910 $ 409 The face values of outstanding trusts at December 31, 2017 are shown below (dollars in millions). See Note 20—Commitments, Contingencies and Other Regulatory Matters for additional information on the Company's trust preferred securities. Trusts Face Value Maturity Date Annual Interest Rate ETBH Capital Trust I $ 20 2031 3.75% above 6-month LIBOR ETBH Capital Trust V, VI, VIII 51 2032 3.25%-3.65% above 3-month LIBOR ETBH Capital Trust VII, IX—XII 65 2033 3.00%-3.30% above 3-month LIBOR ETBH Capital Trust XIII—XVIII, XX 77 2034 2.45%-2.90% above 3-month LIBOR ETBH Capital Trust XIX, XXI, XXII 60 2035 2.20%-2.40% above 3-month LIBOR ETBH Capital Trust XXIII—XXIV 45 2036 2.10% above 3-month LIBOR ETBH Capital Trust XXV—XXX 96 2037 1.90%-2.00% above 3-month LIBOR Total $ 414 External Lines of Credit maintained at E*TRADE Securities E*TRADE Securities' external liquidity lines total approximately $1.1 billion as of December 31, 2017 and include the following: • A 364-day, $450 million senior unsecured committed revolving credit facility with a syndicate of banks, with a maturity date of June 2018 • Secured committed lines of credit with two unaffiliated banks, aggregating to $175 million , with a maturity date of June 2018 • Unsecured uncommitted lines of credit with three unaffiliated banks aggregating to $125 million , of which $50 million has a maturity date of June 2018 and the remaining line has no maturity date • Secured uncommitted lines of credit with several unaffiliated banks aggregating to $375 million with no maturity date The revolving credit facility contains maintenance covenants related to E*TRADE Securities' minimum consolidated tangible net worth and regulatory net capital ratio. There were no outstanding balances for these lines at December 31, 2017 . |
Corporate Debt
Corporate Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
CORPORATE DEBT | NOTE 14—CORPORATE DEBT Corporate debt at December 31, 2017 and 2016 is outlined in the following table (dollars in millions): Face Value Discount Net December 31, 2017 Interest-bearing notes: 2.95% Notes, due 2022 $ 600 $ (5 ) $ 595 3.80% Notes, due 2027 400 (4 ) 396 Total corporate debt $ 1,000 $ (9 ) $ 991 December 31, 2016 Interest-bearing notes: 5.375% Notes, due 2022 $ 540 $ (5 ) $ 535 4.625% Notes, due 2023 460 (4 ) 456 Total interest-bearing notes 1,000 (9 ) 991 Non-interest-bearing debt: 0% Convertible debentures, due 2019 3 — 3 Total corporate debt $ 1,003 $ (9 ) $ 994 Issuance of Corporate Debt During the year ended December 31, 2017, the Company issued $1 billion in aggregate principal amount of Senior Notes in two tranches. The first tranche of $600 million aggregate principal amount of Senior Notes due 2022 bears interest at an annual rate of 2.95% and will mature on August 24, 2022. The second tranche of $400 million aggregate principal amount of Senior Notes due 2027 bears interest at an annual rate of 3.80% and will mature on August 24, 2027 (together with the first tranche, the “Notes”) . The Notes are the Company's general unsecured senior obligations and rank equally with the Company's other unsecured senior indebtedness. The Notes effectively rank junior to secured indebtedness, if any, to the extent of the collateral securing such indebtedness and all liabilities of the Company's subsidiaries. The Notes are not guaranteed by the subsidiaries. The net proceeds from the sale of the Notes were used, along with existing corporate cash, to redeem all $540 million aggregate principal amount of the outstanding 5.375% Senior Notes due 2022 and all $460 million aggregate principal amount of the outstanding 4.625% Senior Notes due 2023, including associated redemption premiums, accrued interest, and related fees and expenses. In connection with the redemption, the Company recognized a loss on early extinguishment of debt of $58 million . During the year ended December 31, 2015, the Company used the net proceeds from the issuance of the $460 million aggregate principal amount of 4.625% Senior Notes due 2023, along with existing corporate cash to redeem all of its then outstanding 6.375% Notes, including associated redemption premiums, accrued interest, and related fees and expenses. This resulted in $73 million in losses on early extinguishment of debt for the year ended December 31, 2015. Credit Facility On June 23, 2017, the Company entered into an unsecured committed revolving credit facility with certain lenders, which replaced the previous secured committed revolving credit facility entered into in November 2014 and increased the Company's total borrowing capacity under the facility to $300 million . The Company has the ability to borrow against the credit facility for working capital and general corporate purposes. The credit facility has terms which include financial maintenance covenants, for which the Company was in compliance at December 31, 2017. The unsecured committed revolving credit facility will mature on June 23, 2020. At December 31, 2017 , there was no outstanding balance under this revolving credit facility. Ranking of Debt Seniority All of the Company’s notes rank equal in right of payment with all of the Company’s existing and future unsubordinated indebtedness and rank senior in right of payment to all its existing and future subordinated indebtedness. However, the notes rank effectively junior to the Company's secured indebtedness to the extent of the collateral securing such indebtedness. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 15—INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, 2017 , 2016 and 2015 were as follows (dollars in millions): Year Ended December 31, 2017 2016 2015 Current income tax expense (benefit): Federal $ — $ — $ (5 ) State (11 ) 3 (5 ) Foreign — 2 5 Total current (11 ) 5 (5 ) Deferred income tax expense (benefit): Federal 399 285 (145 ) State 51 (10 ) (31 ) Total deferred 450 275 (176 ) Non-current income tax expense (1) 11 6 4 Income tax expense (benefit) $ 450 $ 286 $ (177 ) (1) Non-current income tax expense primarily relates to amortization for investments in qualified affordable housing projects recognized under the proportional amortization method. The federal tax reform law was enacted on December 22, 2017, which resulted in a remeasurement of certain deferred tax assets and liabilities using the new statutory federal corporate income tax rate of 21% . Accordingly, the Company recognized $58 million of additional tax expense for the year ended December 31, 2017 . Unrecognized Tax Benefits The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 , and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits, beginning of period $ 28 $ 29 $ 330 Additions based on tax positions related to prior years 1 1 5 Additions based on tax positions related to current year 11 4 2 Reductions based on tax positions related to prior years (3 ) (3 ) (304 ) Settlements with taxing authorities (6 ) (1 ) (3 ) Statute of limitations lapses (6 ) (2 ) (1 ) Unrecognized tax benefits, end of period $ 25 $ 28 $ 29 The unrecognized tax benefits decreased $3 million to $25 million during the year ended December 31, 2017 . At December 31, 2017 , the Company had $20 million , net of federal benefits, of unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in future periods. In 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 2015. During 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. The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdiction Open Tax Years Hong Kong 2011-2017 United Kingdom 2015-2017 United States 2014-2017 Various states (1) 2008-2017 (1) Major state tax jurisdictions include California, Georgia, Illinois, New Jersey, New York and Virginia. It is reasonably possible that the Company's unrecognized tax benefits could be reduced by as much as $6 million within the next twelve months as a result of settlements of certain examinations or expiration of statutes of limitations. The Company recognizes interest and penalties, if any, related to income tax matters in income tax expense. The Company has total reserves for interest and penalties of $6 million and $10 million as of December 31, 2017 and 2016 , respectively. Tax expense for the year ended December 31, 2017 included a $4 million net benefit related to the reduction of interest and penalties, which was primarily due to state settlements with tax authorities and the expiration of statutes of limitations. Deferred Taxes and Valuation Allowances Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement and tax return purposes. The temporary differences and tax carryforwards that created deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are summarized in the following table (dollars in millions): December 31, 2017 2016 Deferred tax assets: Net operating losses $ 349 $ 676 Reserves and allowances, net 155 335 Financial instrument valuations 35 160 Deferred compensation 34 43 Tax credits 68 55 Basis differences in investments 8 14 Other 10 26 Total deferred tax assets 659 1,309 Valuation allowance (23 ) (35 ) Total deferred tax assets, net of valuation allowance 636 1,274 Deferred tax liabilities: Depreciation and amortization (385 ) (518 ) Total deferred tax liabilities (385 ) (518 ) Deferred tax assets, net $ 251 $ 756 The Company had $1.0 billion of gross federal net operating losses, or $211 million in deferred tax assets related to these losses, at December 31, 2017 . There is no valuation allowance recorded against federal net operating losses. In addition, the Company had $2.8 billion of gross state net operating losses, or $135 million in deferred tax assets related to these losses, at December 31, 2017 . The Company had a $20 million valuation allowance against state net operating losses. The federal net operating losses have no expiration date and the state net operating losses expire between 2018 and 2036. At December 31, 2017 , the Company has zero undistributed earnings and profits in foreign subsidiaries. The following table provides a reconciliation of the beginning and ending amount of valuation allowance for the years ended December 31, 2017 , 2016 , and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Valuation allowance, beginning of period $ (35 ) $ (82 ) $ (91 ) Additions related to tax reform (reduced federal benefit) (4 ) — — Reductions related to the wind-down of foreign operations 14 — 14 Reductions (additions) related to state valuation allowance release 2 47 (5 ) Valuation allowance, end of period $ (23 ) $ (35 ) $ (82 ) The Company's valuation allowance decreased $12 million to $23 million at December 31, 2017 and decreased $47 million to $35 million at December 31, 2016. Effective January 1, 2016, the Company elected to treat its broker-dealers, E*TRADE Securities and E*TRADE Clearing, as single member LLCs for tax purposes. The election to be treated as single member LLCs and future taxable income projections will result in the utilization of certain state deferred tax assets, primarily state net operating losses, against which the Company had recorded valuation allowances. Accordingly, the Company recognized a tax benefit of $25 million for the year ended December 31, 2016 . Effective Tax Rate The effective tax rate differed from the federal statutory rate as summarized in the following table for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 4.2 3.9 0.2 Difference between statutory rate and foreign effective tax rate — 0.2 (2.4 ) Tax exempt income — (0.1 ) (0.5 ) Disallowed executive compensation 0.1 0.2 6.5 Change in valuation allowances (0.1 ) (5.5 ) 0.1 Tax credits (0.3 ) (0.7 ) (3.8 ) Estimated reserve for uncertain tax positions (0.3 ) 0.1 4.7 Deferred tax adjustments (0.3 ) 1.3 3.5 Tax reform adjustments 5.5 — — Excess tax benefit on share-based compensation (0.7 ) — — Tax on undistributed earnings and profits in certain foreign subsidiaries — — 3.9 Settled IRS examination — — (241.5 ) Other (0.9 ) (0.3 ) (0.4 ) Effective tax rate 42.2 % 34.1 % (194.7 )% |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 16—SHAREHOLDERS' EQUITY Preferred Stock Preferred stock outstanding at December 31, 2017 and 2016 is summarized as follows (in millions except total shares outstanding and per share data): Carrying Value at December 31, Description Issuance Date Per Annum Dividend Rate Total Shares Outstanding Liquidation Preference per Share 2017 2016 Series A Fixed-to-Floating Rate Non-Cumulative 8/25/2016 5.875% to, but excluding, 9/15/2026; 3-mo LIBOR + 4.435% thereafter 400,000 $ 1,000 $ 394 $ 394 Series B Fixed-to-Floating Rate Non-Cumulative 12/6/2017 5.30% to, but excluding, 3/15/2023; 3-mo LIBOR + 3.16% thereafter 3,000 $ 100,000 295 — Total 403,000 $ 689 $ 394 Series A On August 25, 2016, the Company issued 400,000 shares of Series A fixed-to-floating rate non-cumulative perpetual preferred stock for gross proceeds of $400 million . Net proceeds, after issuance cost, were $394 million . The shares have a par value of $0.01 and liquidation preference of $1,000 per share. Dividends are non-cumulative and are payable semi-annually at a rate of 5.875% from the original issue date to, but excluding, September 15, 2026. Dividends thereafter are payable at a floating rate equal to the three-month US dollar LIBOR on the related dividend determination date plus 4.435%. The Company used the proceeds of the issuance, along with existing corporate cash, to fund the acquisition of OptionsHouse. On February 2, 2017, the Company's Board of Directors declared a dividend of $32.64 per share, or $13 million , to holders of record of the Series A preferred stock as of February 28, 2017. The dividend was paid on March 15, 2017. On August 2, 2017, the Company's Board of Directors declared a dividend of $29.38 per share, or $12 million , to holders of record of the Series A preferred stock as of August 31, 2017. The dividend was paid on September 15, 2017. On February 8, 2018, the Company's Board of Directors declared a dividend of $29.38 per share, or $12 million , to holders of record of the Series A preferred stock as of February 28, 2018. The dividend will be paid on March 15, 2018. Series B On December 6, 2017, the Company issued 300,000 depositary shares, each representing 1/100 th ownership interest in a share, of Series B fixed-to-floating rate non-cumulative perpetual preferred stock for gross proceeds of $300 million . Net proceeds, after issuance cost, were $295 million . The shares have a par value of $0.01 and liquidation preference of $100,000 per share, equivalent to $1,000 per depositary share. Dividends are non-cumulative and are payable semi-annually at a rate of 5.30% from the original issue date to, but excluding, March 15, 2023. Dividends thereafter are payable at a floating rate equal to the three-month US dollar LIBOR on the related dividend determination date plus 3.16%. The Company intends to use the proceeds of the issuance to fund the acquisition of TCA in the first half of 2018. Upon the issuance of preferred stock, the Company's ability to declare or pay dividends or distributions on, or repurchase, redeem or otherwise acquire for consideration, shares of its junior stock became subject to certain restrictions in the event that the Company fails to declare and pay full dividends, or declare and set aside a sum sufficient for the payment thereof, on its preferred stock. Junior stock includes the Company's common stock. Share Repurchases On July 20, 2017, the Company announced that its Board of Directors authorized the repurchase of up to $1 billion of shares of its common stock. As of December 31, 2017 , the Company repurchased a total of $362 million , or 8.5 million shares, of common stock under this program. As of December 31, 2017 , $638 million remained available for additional repurchases. As of February 16, 2018 , the Company has subsequently repurchased an additional 1.1 million shares of common stock at an average price of $49.99 . The Company accounts for share repurchases retired after repurchase by allocating the excess repurchase price over par to additional paid-in-capital. Accumulated Other Comprehensive Loss The following tables present after-tax changes in each component of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Available-for-Sale Securities Foreign Currency Translation Total Balance, December 31, 2016 $ (139 ) $ 2 $ (137 ) Other comprehensive income before reclassifications 137 — 137 Amounts reclassified from accumulated other comprehensive loss (24 ) (2 ) (26 ) Net change 113 (2 ) 111 Balance, December 31, 2017 $ (26 ) $ — $ (26 ) Available-for-Sale Securities Foreign Currency Translation Total Balance, December 31, 2015 $ (101 ) $ 2 $ (99 ) Other comprehensive loss before reclassifications (5 ) — (5 ) Amounts reclassified from accumulated other comprehensive loss (33 ) — (33 ) Net change (38 ) — (38 ) Balance, December 31, 2016 $ (139 ) $ 2 $ (137 ) Available-for-Sale Cash Flow Foreign Total Balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive loss before reclassifications (84 ) (10 ) (3 ) (97 ) Amounts reclassified from accumulated other comprehensive loss (24 ) 271 — 247 Net change (108 ) 261 (3 ) 150 Balance, December 31, 2015 $ (101 ) $ — $ 2 $ (99 ) The following table presents other comprehensive income (loss) activity and the related tax effect for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 213 $ (76 ) $ 137 $ (10 ) $ 5 $ (5 ) $ (136 ) $ 52 $ (84 ) Reclassification into earnings, net (39 ) 15 (24 ) (53 ) 20 (33 ) (39 ) 15 (24 ) Net change from available-for-sale securities 174 (61 ) 113 (63 ) 25 (38 ) (175 ) 67 (108 ) Cash flow hedging instruments: Unrealized losses, net — — — — — — (17 ) 7 (10 ) Reclassification into earnings, net — — — — — — 439 (168 ) 271 Net change from cash flow hedging instruments — — — — — — 422 (161 ) 261 Foreign currency translation: Foreign currency translation losses, net — — — — — — (3 ) — (3 ) Reclassification into earnings, net (2 ) — (2 ) — — — — — — Net change from foreign currency translation (2 ) — (2 ) — — — (3 ) — (3 ) Other comprehensive income (loss) $ 172 $ (61 ) $ 111 $ (63 ) $ 25 $ (38 ) $ 244 $ (94 ) $ 150 The following table presents the consolidated statement of income line items impacted by reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income Year Ended December 31, 2017 2016 2015 Available-for-sale securities: $ 39 $ 53 $ 39 Gains (losses) on securities and other, net (15 ) (20 ) (15 ) Income tax expense $ 24 $ 33 $ 24 Reclassification into earnings, net Cash flow hedging instruments: $ — $ — $ (370 ) Gains (losses) on securities and other, net — — (69 ) Interest expense — — (439 ) Reclassification into earnings, before tax — — 168 Income tax benefit — — (271 ) Reclassification into earnings, net Foreign currency translation: $ 2 $ — $ — Other non-interest expenses $ 2 $ — $ — Reclassification into earnings, net For additional information on the $370 million reclassification during the year ended December 31, 2015, see Note 8—Derivative Instruments and Hedging Activities . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 17—EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings per common share (in millions, except share data and per share amounts): Year Ended December 31, 2017 2016 2015 Net income $ 614 $ 552 $ 268 Preferred stock dividends 25 — — Net income available to common shareholders $ 589 $ 552 $ 268 Share data (in thousands): Basic weighted-average shares outstanding 273,190 277,789 290,762 Effect of weighted-average dilutive securities: Restricted stock and options 1,076 872 1,429 Convertible debentures 86 387 2,820 Diluted weighted-average shares outstanding (1) 274,352 279,048 295,011 Basic earnings per common share $ 2.16 $ 1.99 $ 0.92 Diluted earnings per common share (1) $ 2.15 $ 1.98 $ 0.91 (1) The amount of certain restricted stock and options excluded from the calculations of diluted earnings per share (due to the anti-dilutive effect) was not material for the years ended December 31, 2017, 2016 and 2015. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY REQUIREMENTS | NOTE 18—REGULATORY REQUIREMENTS Broker-Dealer and FCM Capital Requirements The Company's US broker-dealer, E*TRADE Securities, is subject to the Uniform Net Capital 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. E*TRADE Securities has elected the Alternative method, under which it is required to maintain net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions. The Company’s international broker-dealer subsidiary is subject to capital requirements determined by its respective regulator. The Company's FCM, E*TRADE Futures, is subject to CFTC net capital requirements, including the maintenance of adjusted net capital equal to or in excess of the greater of (1) $1,000,000 , (2) the FCM's risk-based capital requirement, computed as 8% of the total risk margin requirements for all positions carried in customer and non-customer accounts, or (3) the amount of adjusted net capital required by the NFA. At December 31, 2017 and 2016 , all of the Company’s broker-dealer and FCM subsidiaries met minimum net capital requirements. The table below summarizes the minimum capital requirements and excess capital for the Company’s broker-dealer and FCM subsidiaries at December 31, 2017 and 2016 (dollars in millions): Required Net Capital Net Capital Excess Net Capital December 31, 2017: E*TRADE Securities (1) $ 211 $ 1,213 $ 1,002 E*TRADE Futures (1) 4 19 15 International broker-dealer — 19 19 Total $ 215 $ 1,251 $ 1,036 December 31, 2016: E*TRADE Securities $ 158 $ 969 $ 811 OptionsHouse (2) 1 22 21 International broker-dealer — 21 21 Total $ 159 $ 1,012 $ 853 (1) E*TRADE Securities paid dividends of $345 million to the parent company during the year ended December 31, 2017 and $125 million in February 2018. In August 2017, all brokerage accounts and brokerage customer-related assets and obligations of OptionsHouse were transferred in connection with the integration. Upon completion of this transaction, OptionsHouse was renamed E*TRADE Futures and E*TRADE Securities' futures accounts and futures customer-related assets and obligations were transferred to E*TRADE Futures. (2) Elected to use the Aggregate Indebtedness method to compute net capital; however, as OptionsHouse was an FCM, the prescribed fixed-dollar minimum capital requirement was $1 million . Bank Capital Requirements E*TRADE Financial and its bank subsidiaries, E*TRADE Bank and E*TRADE Savings Bank, are subject to various regulatory capital requirements administered by federal banking agencies. 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 the financial condition and results of operations of these entities. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, these entities 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, the Company's bank subsidiaries may not pay dividends to the parent company without the non-objection, or in certain cases the approval, of their regulators, and any loans by the bank subsidiaries to the parent company and its other non-bank subsidiaries are subject to various quantitative, arm’s length, collateralization and other requirements. The capital amounts and classifications of these entities 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 these entities to meet minimum Tier 1 leverage, common equity Tier 1 capital, Tier 1 risk-based capital and total risk-based capital ratios. Events beyond management's control, such as deterioration in credit markets, could adversely affect future earnings and their ability to meet future capital requirements. E*TRADE Financial, E*TRADE Bank and E*TRADE Savings 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): December 31, 2017 December 31, 2016 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 Financial (1) Tier 1 leverage $ 4,386 7.4 % $ 2,976 5.0 % $ 1,410 $ 3,610 7.8 % $ 2,316 5.0 % $ 1,294 Common equity Tier 1 capital $ 3,773 33.9 % $ 722 6.5 % $ 3,051 $ 3,483 37.0 % $ 612 6.5 % $ 2,871 Tier 1 risk-based capital $ 4,386 39.5 % $ 889 8.0 % $ 3,497 $ 3,610 38.3 % $ 754 8.0 % $ 2,856 Total risk-based capital $ 4,874 43.8 % $ 1,111 10.0 % $ 3,763 $ 4,148 44.0 % $ 942 10.0 % $ 3,206 E*TRADE Bank (1) Tier 1 leverage $ 3,620 7.6 % $ 2,394 5.0 % $ 1,226 $ 3,132 8.8 % $ 1,786 5.0 % $ 1,346 Common equity Tier 1 capital $ 3,620 35.7 % $ 660 6.5 % $ 2,960 $ 3,132 38.3 % $ 532 6.5 % $ 2,600 Tier 1 risk-based capital $ 3,620 35.7 % $ 812 8.0 % $ 2,808 $ 3,132 38.3 % $ 655 8.0 % $ 2,477 Total risk-based capital $ 3,694 36.4 % $ 1,015 10.0 % $ 2,679 $ 3,237 39.5 % $ 819 10.0 % $ 2,418 E*TRADE Savings Bank (1) Tier 1 leverage $ 904 26.6 % $ 170 5.0 % $ 734 $ 226 12.0 % $ 94 5.0 % $ 132 Common equity Tier 1 capital $ 904 111.1 % $ 53 6.5 % $ 851 $ 226 69.6 % $ 21 6.5 % $ 205 Tier 1 risk-based capital $ 904 111.1 % $ 65 8.0 % $ 839 $ 226 69.6 % $ 26 8.0 % $ 200 Total risk-based capital $ 905 111.2 % $ 81 10.0 % $ 824 $ 227 69.8 % $ 32 10.0 % $ 195 (1) Basel III includes a capital conservation buffer that limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if a banking organization fails to maintain a Common Equity Tier 1 capital conservation buffer of more than 2.5% , on a fully phased-in basis, of total risk-weighted assets above each of the following minimum risk-based capital ratio requirements: Common Equity Tier 1 capital ( 4.5% ), Tier 1 ( 6.0% ), and total risk-based capital ( 8.0% ). This requirement was effective beginning on January 1, 2016, and will be fully phased-in by 2019. See Business—Regulation for additional information. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | NOTE 19—LEASE ARRANGEMENTS The Company has non-cancelable operating leases for facilities through 2029 . Future minimum lease payments and sublease proceeds under these leases with initial or remaining terms in excess of one year, including leases associated with restructuring activities, are as follows (dollars in millions): Operating Lease Commitments (1) Years ending December 31, 2018 $ 27 2019 29 2020 23 2021 21 2022 12 Thereafter 45 Total future minimum lease payments $ 157 Sublease proceeds (2 ) Net lease commitments $ 155 (1) Excludes minimum lease payments and sublease proceeds on the Alpharetta, Georgia lease, which is accounted for as a financing. Certain leases contain provisions for renewal options and rent escalations based on increases in certain costs incurred by the lessor. Rent expense, net of sublease income, was $26 million , $24 million and $22 million for the years ended December 31, 2017, 2016 and 2015, respectively. Rent expense, which is recorded in the occupancy and equipment line item in the consolidated statement of income , excludes costs related to leases associated with restructuring activities, which are recorded in the restructuring and acquisition-related activities line item in the consolidated statement of income . |
Commitments, Contingencies and
Commitments, Contingencies and Other Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | NOTE 20—COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY 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. The Company monitors these matters for developments that would affect the likelihood of a loss and the accrued amount, if any, and adjusts the amount as appropriate. 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. The trial court subsequently denied Ajaxo’s requests for additional damages and relief following which Ajaxo appealed. Although the Company paid Ajaxo the full amount due on the above-described judgment, the case was remanded back to the trial court by the California Court of Appeal, 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. After various appeals the case was again remanded back to the trial court. Following the third trial of the matter, in a Judgment and Statement of Decision filed September 16, 2015, the Court denied all claims for royalties by Ajaxo. Ajaxo’s post-trial motions were denied. Ajaxo has appealed to the Court of Appeal, Sixth District. The Company will continue to defend itself vigorously in this matter. On May 16, 2011, Droplets Inc., the holder of two patents pertaining to user interface servers, filed a complaint in the US 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. The plaintiff contends that the defendants engaged in patent infringement under federal law and 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's motion for summary judgment on the grounds of non-infringement was granted by the US 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). After a hearing, the PTAB deemed Droplets’ putative '115 patent to be “unpatentable” on June 23, 2016. In a separate proceeding, the PTAB has also separately deemed Droplets’ putative '838 patent to be “unpatentable.” Droplets has appealed to the Circuit Court of Appeals for the District of Columbia. The briefing was completed on July 24, 2017, and an oral argument was heard on February 6, 2018. The Company will continue to defend itself vigorously in this matter. 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. The plaintiffs allege violations of the California Unfair Competition Law, the California Consumer Remedies Act, fraud, misrepresentation, negligent misrepresentation and breach of fiduciary duty and plaintiffs seek unspecified damages. Final judgment was entered in the Company's favor on April 8, 2015, and on December 4, 2017 the Court of Appeals upheld the dismissal. The matter is now closed. On March 26, 2015, a putative class action was filed in the US 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. The plaintiff seeks unspecified damages, declaratory relief, restitution, disgorgement of payments received by the Company, and attorneys’ fees. On April 2, 2017, the District Court dismissed the complaint in Rayner. The plaintiffs in Rayner appealed and the oral argument was heard by the Second Court of Appeals on December 7, 2017. The Company will continue to defend itself vigorously in these matters. On July 23, 2016, a putative class action was filed in the US District Court for the Southern District of New York by Craig L. Schwab, on behalf of himself and others similarly situated, naming E*TRADE Financial Corporation, E*TRADE Securities, and former Company executives as defendants. The complaint alleges that E*TRADE violated federal securities laws in connection with the routing of its customers’ orders to various market-makers and exchanges. The plaintiff seeks unspecified damages, declaratory relief, restitution, disgorgement of payments received by the Company, and attorneys’ fees. By stipulation both matters are now venued in the Southern District of New York. On July 10, the Court dismissed the Schwab claims without prejudice. The plaintiff in Schwab filed a third amended complaint on August 9, 2017, which E*TRADE moved to dismiss. On January 22, the Court dismissed all claims with prejudice. The Company will continue to defend itself vigorously in these matters. 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 examinations and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, FINRA, NASDAQ, CFTC, NFA, FDIC, Federal Reserve Bank of Richmond, OCC, or the CFPB 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. 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 method, cost method and other 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 $99 million in unfunded commitments with respect to these investments at December 31, 2017 . At December 31, 2017 , the Company had approximately $21 million of certificates of deposit scheduled to mature in less than one year. 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, ETBH raised capital through the formation of trusts, which sold TRUPs 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 TRUPs 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 TRUPs, 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 December 31, 2017 , management estimated that the maximum potential liability under this arrangement, including the current carrying value of the trusts, was equal to approximately $416 million or the total face value of these securities plus accrued interest payable, which may be unpaid at the termination of the trust arrangement. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) | NOTE 21—CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) CONDENSED STATEMENT OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2017 2016 2015 Dividends from subsidiaries (1) $ 350 $ 858 $ 859 Other revenues 377 328 317 Total net revenue 727 1,186 1,176 Total non-interest expense 611 501 560 Income before income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries 116 685 616 Income tax expense (benefit) 75 456 (287 ) Equity in undistributed income (loss) of subsidiaries 573 323 (635 ) Net income (2) 614 552 268 Other comprehensive income (loss) 111 (38 ) 150 Comprehensive income $ 725 $ 514 $ 418 (1) Includes $423 million and $281 million from E*TRADE Bank for the years ended December 31, 2016 and 2015, respectively. (2) Net income available to common shareholders was $589 million for the year ended December 31, 2017 and includes the impact of $25 million of preferred stock dividends. CONDENSED BALANCE SHEET (In millions) December 31, 2017 2016 ASSETS Cash and equivalents $ 493 $ 416 Property and equipment, net 157 148 Investment in consolidated subsidiaries (1) 7,268 6,523 Receivable from subsidiaries 59 38 Other assets 202 332 Total assets $ 8,179 $ 7,457 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Corporate debt $ 991 $ 994 Other liabilities 257 191 Total liabilities 1,248 1,185 Total shareholders’ equity 6,931 6,272 Total liabilities and shareholders’ equity $ 8,179 $ 7,457 (1) Includes investment of $3.7 billion and $3.2 billion in E*TRADE Bank as of December 31, 2017 and 2016, respectively. CONDENSED STATEMENT OF CASH FLOWS (In millions) Year Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 614 $ 552 $ 268 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51 48 44 Equity in undistributed (income) loss from subsidiaries (573 ) (323 ) 635 Losses on early extinguishment of debt 9 — 5 Other 213 585 (152 ) Net cash provided by operating activities 314 862 800 Cash flows from investing activities: Capital expenditures for property and equipment (59 ) (36 ) (33 ) Cash contributions to subsidiaries (61 ) (766 ) (147 ) Other 6 16 — Net cash used in investing activities (114 ) (786 ) (180 ) Cash flows from financing activities: Net proceeds from issuance of senior notes 999 — 460 Payments on senior notes (1,000 ) — (800 ) Issuance of preferred stock 300 400 — Repurchases of common stock (362 ) (452 ) (50 ) Preferred stock dividends (25 ) — — Other (35 ) (40 ) (18 ) Net cash used in financing activities (123 ) (92 ) (408 ) Increase (decrease) in cash and equivalents 77 (16 ) 212 Cash and equivalents, beginning of period 416 432 220 Cash and equivalents, end of period $ 493 $ 416 $ 432 Parent Company Guarantees Guarantees are contingent commitments issued by the parent for the purpose of guaranteeing the financial obligations of a subsidiary to a third party. The financial obligations of the parent and the relevant subsidiary do not change by the existence of a parent guarantee. Rather, upon the occurrence of certain events, the guarantee shifts ultimate payment responsibility of an existing financial obligation from the relevant subsidiary to the parent company. During the year ended December 31, 2017, no claims had been made against the parent for payment under any guarantees and thus, no obligations have been recognized. The parent has not provided any guarantees that are collateralized. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (Unaudited) | NOTE 22—QUARTERLY DATA (UNAUDITED) The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the quarterly periods presented (dollars in millions, except per share amounts): 2017 2016 First Second Third Fourth First Second Third Fourth Total net revenue $ 553 $ 577 $ 599 $ 637 $ 472 $ 474 $ 486 $ 509 Net income $ 145 $ 193 $ 147 $ 129 $ 153 $ 133 $ 139 $ 127 Earnings per share: Basic $ 0.48 $ 0.70 $ 0.49 $ 0.48 $ 0.54 $ 0.48 $ 0.51 $ 0.46 Diluted $ 0.48 $ 0.70 $ 0.49 $ 0.48 $ 0.53 $ 0.48 $ 0.51 $ 0.46 Net income in the second quarter of 2017 included a $99 million pre-tax benefit for loan losses primarily resulting from refined default assumptions based on the sustained outperformance of converted mortgage loans that had been amortizing for 12 months or longer. Net income in the third quarter of 2017 included a $58 million pre-tax loss on early extinguishment of debt related to the refinancing of higher cost corporate debt. Net income in the fourth quarter of 2017 included $58 million of additional tax expense due to a remeasurement of certain deferred tax assets and liabilities as a result of the federal tax reform law enacted on December 22, 2017. Net income in the first quarter of 2016 included an income tax benefit related to the release of a valuation allowance against certain state deferred tax assets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23—SUBSEQUENT EVENT Acquisition of brokerage accounts from Capital One In January 2018, the Company announced an agreement to acquire retail brokerage accounts from Capital One for a purchase price of up to $170 million in cash. The Company intends to fund this transaction with existing corporate cash. The acquisition is expected to close by the third quarter of 2018, subject to customary closing conditions and regulatory approvals. |
Organization, Basis of Presen31
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. The Company's most significant, wholly-owned subsidiaries are described below: • E*TRADE Securities is a registered broker-dealer that clears and settles customer securities transactions. • E*TRADE Bank is a federally chartered savings bank that provides FDIC insurance on qualifying amounts of customer deposits and provides other banking and cash management capabilities. • E*TRADE Savings Bank, a subsidiary of E*TRADE Bank, is a federally chartered savings bank that provides FDIC insurance on qualifying amounts of customer deposits. • E*TRADE Futures is a registered non-clearing FCM that provides clearing and settlement services for customer futures transactions. • E*TRADE Capital Management is a registered investment adviser, through which the Company offers investment advisory services. • E*TRADE Financial Corporate Services is a provider of software and services for managing equity compensation plans to corporate clients. |
Basis of Accounting | 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. 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 the 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 consolidated financial statements do not include any consolidated VIEs for all periods presented. The Company's consolidated financial statements are prepared in accordance with GAAP. Intercompany accounts and transactions are eliminated in consolidation. These consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. |
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 acquired intangible assets and estimates of effective tax rates, deferred taxes and valuation allowance. |
Cash and equivalents (policy) | Cash and Equivalents The Company considers all highly liquid investments with original or remaining maturities of three months or less at the time of purchase that are not required to be segregated under federal or other regulations to be cash and equivalents. Cash and equivalents included $490 million and $1.1 billion at December 31, 2017 and 2016, respectively, of overnight cash deposits, a portion of which the Company is required to maintain with the Federal Reserve Bank. |
Cash required to be segregated under federal or other regulations (policy) | Cash Required to be Segregated Under Federal or Other Regulations Certain cash balances that are required to be segregated for the exclusive benefit of the Company’s brokerage and futures customers are included in the cash required to be segregated under federal or other regulations line item. |
Available-for-sale securities (policy) | Available-for-Sale Securities Available-for-sale securities are composed principally of debt securities, primarily residential mortgage-backed securities and agency debt securities. Securities classified as available-for-sale are carried at fair value, with the unrealized gains and losses, after applicable hedge accounting adjustments, reflected as a component of accumulated other comprehensive loss, net of tax. Realized and unrealized gains or losses on available-for-sale debt and equity securities are computed using the specific identification method. Interest earned on available-for-sale securities is included in interest income. Amortization or accretion of premiums and discounts on available-for-sale debt securities is also recognized in interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Realized gains and losses on available-for-sale debt and equity securities, with the exception of other-than-temporary impairment (OTTI) if applicable, are included in the gains (losses) on securities and other, net line item. Available-for-sale securities that have an unrealized loss (impaired securities) are evaluated for OTTI at each balance sheet date. There was no OTTI recognized for the periods presented. |
Held-to-maturity securities (policy) | Held-to-Maturity Securities Held-to-maturity securities consist of debt securities, primarily residential mortgage-backed securities and agency debt securities. Held-to-maturity securities are carried at amortized cost based on the Company’s intent and ability to hold these securities to maturity. Interest earned on held-to-maturity debt securities is included in interest income. Amortization or accretion of premiums and discounts is also recognized in interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Held-to-maturity securities that have an unrecognized loss (impaired securities) are evaluated for OTTI at each balance sheet date. There was no OTTI recognized for the periods presented. |
Margin receivables (policy) | Margin Receivables Margin receivables represent credit extended to customers to finance their purchases of securities by borrowing against securities the customers own. Securities owned by customers are held as collateral for amounts due on the margin receivables, the value of which is not reflected in the consolidated balance sheet. The Company is permitted to sell or re-pledge these securities held as collateral and to use the securities to enter into securities lending transactions, to collateralize borrowings or for delivery to counterparties to cover customer short positions. Revenues earned from the securities lending transactions are included in interest income and expenses incurred are included in interest expense. |
Loans receivable, net (policy) and Impaired loans (policy) | Loans Receivable, Net Loans receivable, net consists of real estate, consumer loans and collateralized lines of credit that management has the intent and ability to hold for the foreseeable future or until maturity, also known as loans held-for-investment. Loans held-for-investment are carried at amortized cost adjusted for unamortized premiums or discounts on purchased loans, deferred fees or costs on originated loans, net charge-offs, and the allowance for loan losses. Premiums or discounts on purchased loans and deferred fees or costs on originated loans are recognized in interest income using the effective interest method over the contractual life of the loans and are adjusted for actual prepayments. The Company’s classes of loans are one- to four-family, home equity and consumer loans and other. |
TDRs (policy) | Impaired Loans The Company considers a loan to be impaired when it meets the definition of a TDR. Impaired loans exclude smaller-balance homogeneous one- to four-family, home equity and consumer loans that have not been modified as TDRs and are collectively evaluated for impairment. Delinquency status is the primary measure the Company uses to evaluate the performance of loans modified as TDRs. Troubled Debt Restructurings Loan modifications completed under the Company’s loss mitigation programs in which economic concessions were granted to borrowers experiencing financial difficulty are considered TDRs. TDRs also include loans that have been charged-off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification even if the loan has not been modified under the Company’s programs. Upon being classified as a TDR, such loan is categorized as an impaired loan and is considered impaired until maturity regardless of whether the borrower performs under the terms of the loan. The Company also processes minor modifications on a number of loans through traditional collections actions taken in the normal course of servicing delinquent accounts. Minor modifications resulting in an insignificant delay in the timing of payments are not considered economic concessions and therefore are not classified as TDRs. Impairment on loan modifications is measured on an individual loan level basis, generally using a discounted cash flow model. When certain characteristics of the modified loan cast substantial doubt on the borrower’s ability to repay the loan, the Company identifies the loan as collateral dependent and charges-off the amount of the modified loan balance in excess of the estimated current value of the underlying property less estimated selling costs. Collateral dependent TDRs are identified based on the terms of the modification, which includes assigning a higher level of risk to loans in which the LTV or CLTV is greater than 110% or 125% , respectively, a borrower’s credit score is less than 600 and certain types of modifications, such as interest-only payments. TDRs that are not identified as higher risk using this risk assessment process and for which impairment is measured using a discounted cash flow model, continue to be evaluated in the event that they become higher risk collateral dependent TDRs. |
Nonperforming loans (policy) | 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. Interest previously accrued, but not collected, is reversed against current income when a loan is placed on nonaccrual status. Interest payments received on nonperforming loans are recognized on a cash basis in interest income until it is doubtful that full payment will be collected, at which point payments are applied to principal. The recognition of deferred fees or costs on originated loans and premiums or discounts on purchased loans in interest income is discontinued for nonperforming loans. Nonperforming loans return to accrual status based on the following policy: • Nonperforming loans, excluding TDRs and certain junior liens that have a delinquent senior lien, return to accrual status when the loan becomes less than 90 days past due. • TDRs, excluding loans in bankruptcy, are classified as nonperforming loans at the time of modification. Such TDRs return to accrual status after six consecutive payments are made in accordance with the modified terms. Accruing TDRs that subsequently become delinquent will immediately return to nonaccrual status. • Bankruptcy loan TDRs are classified as nonperforming loans within 60 days of bankruptcy notification and remain on nonaccrual status regardless of the payment performance. Delinquent Loans Loans delinquent 180 days and greater have been written down to the e stimated current value of the underlying property less estimated selling costs . Loans delinquent 90 to 179 days generally have not been written down to the e stimated current value of the underlying property less estimated selling costs (unless they are in process of bankruptcy or are modifications for which there is substantial doubt as to the borrower’s ability to repay the loan), but present a risk of future charge-off. Additional charge-offs on loans delinquent 180 days and greater are possible if home prices decline beyond current estimates. The Company monitors loans in which a borrower’s current credit history casts doubt on their ability to repay a loan. Loans are classified as special mention when they are between 30 and 89 days past due. The trend in special mention loan balances is generally indicative of the expected trend for charge-offs in future periods, as these loans have a greater propensity to migrate into nonaccrual status and ultimately charge-off. One- to four-family loans are generally secured in a first lien position by real estate assets, reducing the potential loss when compared to an unsecured loan. Home equity loans are generally secured by real estate assets; however, the majority of these loans are secured in a second lien position, which substantially increases the potential loss when compared to a first lien position. |
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 assumptions. Loan losses are recognized when, based on management's estimate, it is probable that a loss has been incurred. The property value for both one- to four-family and home equity loans is assessed when the loan has been delinquent for 180 days or when the Company has received bankruptcy notification, regardless of whether or not the property is in foreclosure, and the amount of the loan balance in excess of the estimated current value of the underlying property less estimated selling costs is recognized as a charge-off to the allowance for loan losses. Modified loans considered TDRs are charged off when they are identified as collateral dependent based on certain terms of the modification. Closed-end consumer loans are charged off when the loan has been 120 days delinquent or when it is determined that collection is not probable. Determining the adequacy of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan losses in future periods. For loans that are not TDRs, the Company establishes a general allowance and evaluates 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, a specific allowance is established by forecasting losses, including economic concessions to borrowers, over the estimated remaining life of these loans. The estimate of the allowance for loan losses is 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 • General economic conditions, including the impact of weather-related events The allowance for loan losses is typically equal to management’s forecast of loan losses in the 18 months following the balance sheet date as well as the forecasted losses, including economic concessions to borrowers, over the estimated remaining life of loans modified as TDRs. The quantitative allowance methodology also includes the identification of higher risk mortgage loans and the period of loan losses captured within the general allowance includes the total probable loss over the remaining life of these loans. The general allowance for loan losses also includes 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 that may impact the level of credit losses. The Company utilizes a qualitative factor framework whereby, on a quarterly basis, the risk associated with the following three primary sets of factors are evaluated: 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. |
Receivables From And Payables To Brokers, Dealers And Clearing Organizations [Policy Text Block] | Receivables from and Payables to Brokers, Dealers and Clearing Organizations Receivables from brokers, dealers and clearing organizations include deposits paid for securities borrowed, clearing deposits and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include deposits received for securities loaned and net payables arising from unsettled trades. Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Securities borrowing transactions require the Company to deposit cash with the lender whereas securities lending transactions result in the Company receiving collateral in the form of cash, with both requiring cash in an amount generally in excess of the market value of the securities. Interest income and interest expense are recorded on an accrual basis. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary. |
Property and equipment, net (policy) | Property and Equipment, Net Property and equipment is carried at cost and depreciated on a straight-line basis over their estimated useful lives, generally three to seven years . Leasehold improvements are depreciated over the lesser of their estimated useful lives or lease terms. An impairment loss is recognized if the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The costs of internally developed software that qualify for capitalization are included in the property and equipment, net line item. For qualifying internal-use software costs, capitalization begins when the conceptual formulation, design and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The Company does not capitalize pilot projects and projects where it believes that future economic benefits are less than probable. Technology development costs incurred in the development and enhancement of software used in connection with services provided by the Company that do not otherwise qualify for capitalization treatment are expensed as incurred. Completed projects, as well as other purchased software, are carried at cost and are amortized on a straight-line basis over their estimated useful lives. The estimated useful life of internally developed software is four years . |
Goodwill and other intangibles, net (policy) | Goodwill and Other Intangibles, Net Goodwill is recognized as a result of business combinations and represents the excess of the purchase price over the fair value of net tangible assets and identifiable intangible assets. The Company evaluates goodwill for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of its equity is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, the Company must perform a two-step quantitative assessment of goodwill. The Company may elect to bypass the qualitative assessment and proceed directly to performing a two-step quantitative assessment. For the years ended December 31, 2017 and 2016, the Company elected to perform a qualitative analysis to determine whether it was more likely than not that the fair value of its equity was less than the carrying value. As a result of this qualitative assessment, the Company determined that it was not necessary to perform a quantitative impairment test and concluded that there were no impairments to the carrying value of the Company's goodwill during the years ended December 31, 2017 and 2016. The Company currently does not have any intangible assets with indefinite lives other than goodwill. The Company evaluates intangible assets with finite lives for impairment on an annual basis or when events or changes indicate the carrying value may not be recoverable. The Company also evaluates the remaining useful lives of intangible assets with finite lives each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Customer relationship intangibles are amortized on an accelerated basis, while technology and trade name intangibles are amortized on a straight-line basis. For additional information on goodwill and other intangibles, net, see Note 10—Goodwill and Other Intangibles, Net . |
Income taxes (policy) | Income Taxes Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect. Valuation allowances for deferred tax assets are established if it is determined, based on evaluation of available evidence at the time the determination is made, that it is more likely than not that some or all of the deferred tax assets will not be realized. Income tax expense (benefit) includes (1) deferred tax expense (benefit), which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances, and (2) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a taxing authority. Uncertain tax positions are only recognized to the extent it is more likely than not that the uncertain tax position will be sustained upon examination. For uncertain tax positions, a tax benefit is recognized for cases in which it is more than fifty percent likely of being sustained on ultimate settlement. Interest and penalties, if any, related to income tax matters are recognized as income tax expense in the period they are incurred or such changes are enacted. For additional information on income taxes, see Note 15—Income Taxes . |
Real estate owned and repossessed assets (policy) | Real Estate Owned and Repossessed Assets Real estate owned and repossessed assets are included in the other assets line item in the consolidated balance sheet. Real estate owned represents real estate acquired through foreclosure and also includes those properties acquired through a deed in lieu of foreclosure or similar legal agreement. Both real estate owned and repossessed assets are carried at the lower of carrying value or fair value, less estimated selling costs. |
Equity and Cost Method Investments, Policy [Policy Text Block] | Equity Method, Cost Method and Other Investments The Company’s equity method, cost method and other investments are generally limited liability investments in partnerships, companies and other similar entities, including tax credit partnerships and community development entities, that are not required to be consolidated. These investments are reported in the other assets line item in the consolidated balance sheet. Under the equity method, the Company recognizes its share of the investee’s net income or loss in the gains (losses) on securities and other, net line item in the consolidated statement of income. The Company’s other investments include those accounted for using the proportional amortization method, whereby 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 as a component of income tax expense. The Company recognizes a liability for all legally binding unfunded equity commitments to the investees in the other liabilities line item in the consolidated balance sheet. The Company evaluates its equity and cost method investments for impairment when events or changes indicate the carrying value may not be recoverable. If the impairment is determined to be other-than-temporary, the Company will recognize an impairment loss in the gains (losses) on securities and other, net line item equal to the difference between the expected realizable value and the carrying value of the investment. The Company is a member of, and owns capital stock in, the FHLB system. As a condition of its membership in the FHLB, the Company is required to maintain a FHLB stock investment which totaled $36 million at December 31, 2017 and $15 million at December 31, 2016. The Company accounts for its investment in FHLB stock as a cost method investment. |
Customer payables (policy) | Deposits and Customer Payables Deposits are primarily composed of sweep deposits held at bank subsidiaries, which represent uninvested cash balances in certain customer brokerage accounts. Customer payables represent credit balances in customer brokerage accounts arising from deposits of funds and sales of securities and other funds pending completion of securities transactions. Customer payables primarily represent customer cash held by E*TRADE Securities. The Company pays interest on certain deposits and customer payables balances. |
Other borrowings (policy) | Other Borrowings Other borrowings includes securities sold under agreements to repurchase, FHLB advances, TRUPs and borrowings from lines of credit. Securities sold under agreements to repurchase the same or similar securities, also known as repurchase agreements, are collateralized by fixed- and variable-rate mortgage-backed securities or investment grade securities. Repurchase agreements are treated as secured borrowings for financial statement purposes and the obligations to repurchase securities sold are therefore reflected as liabilities in the consolidated balance sheet. The FHLB provides the Company with reserve credit capacity and authorizes advances based on the security of pledged home mortgages and other assets (principally securities that are obligations of, or guaranteed by, the US Government) provided the Company meets certain creditworthiness standards. Prior to 2008, E*TRADE Bank's parent company ETB Holdings, Inc. (ETBH) raised capital through the formation of trusts, which sold TRUPs in the capital markets. The capital securities must be redeemed in whole at the due date, which is generally 30 years after issuance. The trusts used the proceeds from the sale of issuances to purchase subordinated debentures issued by ETBH presented in the other borrowings line item. For additional information on other borrowings, see Note 13—Other Borrowings . |
Other LIabilities [Policy Text Block] | Other Liabilities Other liabilities includes accrued operating expenses and contingent liabilities. These liabilities are impacted by estimates for litigation and regulatory matters as well as estimates related to general operating expenses, such as incentive compensation and market data usage within communications expense. Management estimates reflect the probable liability as of the balance sheet date. In determining the adequacy of estimated liabilities, the Company performs ongoing evaluations based on available information. |
Comprehensive income (loss) (policy) | Comprehensive Income The Company’s comprehensive income is composed of net income, the noncredit portion of OTTI on debt securities, unrealized gains (losses) on available-for-sale securities, the effective portion of the unrealized gains (losses) on derivatives in cash flow hedge relationships and foreign currency translation gains (losses), net of reclassification adjustments and related tax. |
Interest income (policy) | Interest Income Interest income is recognized as earned through holding interest-earning assets, such as available-for-sale and held-to-maturity securities, margin receivables, loans and cash, and from securities lending activities. Interest income also includes the impact of the Company’s derivative transactions related to interest-earning assets. |
Interest expense (policy) | Interest Expense Interest expense is recognized as incurred through holding interest-bearing liabilities, such as corporate debt, other borrowings, customer payables and deposits, and from securities lending activities. Interest expense also includes the impact of the Company’s derivative transactions related to interest-bearing liabilities. |
Commissions (policy) | Commissions Commissions are derived from the Company’s customers and are impacted by both trade type and trade mix. Commissions from securities transactions are recognized on a trade-date basis. |
Fees and service charges (policy) | Fees and Service Charges Fees and service charges consist of order flow revenue, mutual fund service fees, advisor management fees, foreign exchange revenue, reorganization fees and other fees and service charges. Fees and service charges also includes revenue earned on customer cash held by third parties. |
Gains on loans and securities, net (policy) | Gains (Losses) on Securities and Other, Net Gains (losses) on securities and other, net includes gains or losses resulting from the sale of available-for-sale securities; gains or losses resulting from sales of loans; hedge ineffectiveness and reclassification of deferred losses on cash flow hedges; gains or losses recognized on equity investments; and gains or losses on derivative instruments that are not accounted for as hedging instruments. Gains or losses resulting from the sale of available-for-sale securities are recognized at the trade-date, based on the difference between the anticipated proceeds and the amortized cost of the specific securities sold. |
Other-than-temporary impairment (OTTI) (policy) | OTTI The Company evaluates available-for-sale securities and held-to-maturity debt securities for OTTI on a quarterly basis. The Company considers OTTI for an available-for-sale or held-to-maturity debt security to have occurred if one of the following conditions are met: the Company intends to sell the impaired debt security; it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis; or the Company does not expect to recover the entire amortized cost basis of the security. For impaired debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell before recovery of the security’s amortized cost basis, the Company uses both qualitative and quantitative valuation measures to evaluate whether the Company expects to recover the entire amortized cost basis of the security. If the Company does not expect to recover the entire amortized cost basis of these securities then the Company will separate OTTI into two components: 1) the amount related to credit loss, recognized in earnings; and 2) the noncredit portion of OTTI, recognized through other comprehensive income. If the Company intends to sell an impaired debt security or if it is more likely than not that the Company will be required to sell the impaired debt security before recovery of the security’s amortized cost basis, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. The Company considers OTTI for an available-for-sale equity security to have occurred if the decline in the security’s fair value below its cost basis is deemed other than temporary based on evaluation of both qualitative and quantitative valuation measures. If impairment is determined to be other-than-temporary, the Company will recognize OTTI in earnings equal to the entire difference between the security’s amortized cost basis and the security’s fair value. If the Company intends to sell an impaired equity security and the Company does not expect to recover the entire cost basis of the security prior to the sale, the Company will recognize OTTI in the period the decision to sell is made. |
Other revenues (policy) | Other Revenues Other revenues primarily consist of fees from software and services for managing equity compensation plans, which are recognized in accordance with software revenue recognition accounting guidance. |
Advertising and market development (policy) | Advertising and Market Development Advertising and market development includes production and placement of advertisements as well as customer promotions. Advertising production costs are expensed when the initial advertisement is run. |
Earnings (loss) per share (policy) | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company excludes from the calculation of diluted earnings per share stock options, unvested restricted stock awards and units, unvested performance share units and shares related to convertible debentures that would have been anti-dilutive. |
Derivative instruments and hedging activities (policy) | 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. Accounting for derivatives differs depending on whether a derivative is designated as a hedge based on the applicable accounting guidance and, if designated as a hedge, the type of hedge designation. Derivative instruments designated in hedging relationships that mitigate the exposure to the variability in expected future cash flows or other forecasted transactions are considered cash flow hedges. Derivative instruments in hedging relationships that mitigate exposure to changes in the fair value of assets or liabilities are considered fair value hedges. In order to qualify for hedge accounting, the Company formally documents at inception all relationships between hedging instruments and hedged items and the risk management objective and strategy for each hedge transaction. Fair value hedge ineffectiveness is measured on a quarterly basis and reflects the difference between the change in fair value on the derivative and the change in fair value on the hedged item, both of which are recognized within gains (losses) on securities and other, net on the consolidated statement of income. Ineffectiveness on cash flow hedges is also recorded to gains (losses) on securities and other, net. Cash flows from derivative instruments in hedging relationships are classified in the same category on the consolidated statement of cash flows as the cash flows from the items being hedged. 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 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, net line item in the consolidated statement of income . The Company also recognizes certain contracts and commitments as derivatives if the characteristics of those contracts and commitments meet the definition of a derivative. For additional information on derivative instruments and hedging activities, see Note 8—Derivative Instruments and Hedging Activities . |
Fair value (policy) | Fair Value 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. The Company determines the fair value for its financial instruments and for nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis. In addition, the Company determines the fair value for nonfinancial assets and nonfinancial liabilities on a nonrecurring basis as required during impairment testing or by other accounting guidance. For additional information on fair value, see Note 4 — Fair Value Disclosures . |
Share-based payments (policy) | Share-Based Payments In 2015, the Company adopted and the shareholders approved the 2015 Omnibus Incentive Plan (2015 Plan), which replaced the 2005 Stock Incentive Plan (2005 Plan). The 2015 Plan provides the Company the ability to grant equity awards to officers, directors, employees and consultants, including, but not limited to, nonqualified or incentive stock options, restricted stock awards, restricted stock units and deferred restricted stock units at a price based on the date of the grant approved by the Board. The Company typically issues new shares upon exercise of stock options and vesting of other equity awards and intends to continue doing so. Through 2011, the Company issued options to directors and to certain of the Company's officers and employees. Options generally vest ratably over a two - to four -year period from the date of grant and expire within seven to ten years from the date of grant. Certain options provide for accelerated vesting upon a change of control. The Company measures compensation expense based on the exercise price which is equal to the fair value of the shares on the grant date. As of December 31, 2017, there were less than 0.1 million options outstanding and no unrecognized compensation expense related to non-vested stock options. The Company issues restricted stock awards and deferred restricted stock units to 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 shares of restricted stock and restricted stock 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 over the performance period. 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, generally one to three years. As of December 31, 2017, there were 2.5 million restricted stock awards and units outstanding and $37 million of total unrecognized compensation expense related to non-vested restricted stock awards and units. This cost is expected to be recognized over a weighted-average period of 1.4 years . As of December 31, 2017, there were also 0.2 million performance share units outstanding. The total fair value of restricted stock awards, restricted stock units and performance share units vested was $58 million , $48 million and $28 million for the years ended December 31, 2017, 2016 and 2015, respectively. The Company recognized $41 million , $30 million and $34 million in expense for its options, restricted stock awards, restricted stock units and performance share units for the years ended December 31, 2017, 2016 and 2015, respectively. Under the 2015 Plan, the remaining unissued authorized shares of the 2005 Plan that are not subject to outstanding awards thereunder were authorized for issuance. Additionally, any shares that had been awarded but remained unissued under the 2005 Plan that were subsequently canceled, forfeited, or reacquired by the Company would be authorized for issuance under the 2015 Plan. As of December 31, 2017, 8.9 million shares were available for grant under the 2015 Plan. 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. Forfeitures are based on the Company's historical experience and revised as needed based on actual 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 generally included in the compensation and benefits line item. |
New accounting pronouncements (policy) | Adoption of New Accounting Standards Accounting for Employee Share-Based Payments In March 2016, the FASB amended the accounting guidance on employee share-based payments. Relevant changes in the amended guidance include the requirement to recognize all excess tax benefits and deficiencies upon exercise or vesting as income tax expense or benefit in the consolidated statement of income; to treat excess tax benefits and deficiencies as discrete items in the reporting period they occur; to not delay recognition of excess tax benefits until the tax benefit is realized through a reduction in current taxes payable; and to make an accounting policy election to either estimate forfeitures or account for them as they occur. The Company adopted the amended accounting guidance as of January 1, 2017 and recognized a $3 million deferred tax asset and cumulative-effect adjustment to equity as of the beginning of the period. In addition, for the years ended December 31, 2016 and 2015, the Company reclassified $21 million and $11 million , respectively, related to shares withheld to pay taxes from cash flows from operating activities to the other line item within cash flows from financing activities. Forfeitures continue to be estimated consistent with the Company's prior accounting policies. The impact to the Company's financial condition, results of operations and cash flows will vary based on, among other factors, the market price of the Company's common stock. During the year ended December 31, 2017 , the Company recognized a $7 million income tax benefit in accordance with the new guidance. New Accounting Standards Not Yet Adopted 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 Company's accounting for net interest income is not impacted by the new standard. The FASB issued supplemental amendments to the new standard to clarify certain guidance and to provide narrow scope improvements and practical expedients during 2016. The amended guidance became effective on January 1, 2018 and the Company adopted the guidance on a modified retrospective basis. This adoption did not have a material impact on the Company’s financial condition, results of operations or cash flows as the satisfaction of performance obligations under the new guidance is materially consistent with the Company's previous revenue recognition policies. Similarly, the amended guidance did not have a material impact on the recognition of costs incurred to obtain new contracts. The Company has evaluated the new guidance, including considerations relating to financial statement presentation, disclosures and controls and the amended presentation and disclosures will be reflected in interim reporting beginning in the first quarter of 2018. Classification and Measurement of Financial Instruments In January 2016, the FASB amended the accounting and disclosure guidance on the classification and measurement of financial instruments. Relevant changes in the amended guidance include the requirement that equity investments, excluding those accounted for under the equity method of accounting or those resulting in consolidation of the investee, be measured at fair value in the consolidated balance sheet with changes in fair value recognized in net income. For disclosure purposes, the Company will no longer be required to disclose the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost in the consolidated balance sheet. The amended guidance became effective on January 1, 2018, and was applied on a modified retrospective basis. The adoption did not have a material impact on the Company’s financial condition, results of operations or cash flows as debt securities represent the majority of the Company's investment portfolio. Accounting for Leases In February 2016, the FASB amended the guidance on accounting for leases. The new standard requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all qualifying leases with terms of more than twelve months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains substantially unchanged and depends on classification as a finance or operating lease. The new standard also requires quantitative and qualitative disclosures that provide information about the amounts related to leasing arrangements recorded in the consolidated financial statements. The new guidance will be effective for interim and annual periods beginning on January 1, 2019, and is required to be applied on a modified retrospective basis to the earliest period presented, which includes practical expedient options in certain circumstances. The Company is in the process of evaluating the new accounting guidance, which includes the assessment of whether certain executory contracts contain embedded leases. The Company has 30 regional financial centers and 8 corporate locations which are leased. The right of use asset and corresponding lease liability for these leases will be recognized on the Company's balance sheet upon adoption. Accounting for Credit Losses In June 2016, the FASB amended the accounting guidance on accounting for credit losses. The amended guidance requires measurement of all expected credit losses for financial instruments, including loans and debt securities, and other commitments to extend credit held at the reporting date. For financial assets measured at amortized cost, factors such as historical experience, current conditions, and reasonable and supportable forecasts will be used to estimate expected credit losses. The amended guidance will also change the manner in which credit losses are recognized on debt securities classified as available-for-sale. The new guidance will be effective for interim and annual periods beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of the new accounting guidance on the Company's financial condition, results of operations and cash flows. The Company does not expect the amended accounting guidance to have as significant of an impact as it could have if the Company were originating or purchasing mortgage loans. Our evaluation contemplates the recent performance of the Company's run-off legacy mortgage and consumer loan portfolio and the credit profile of the current investment securities portfolio; however, the impact of the new guidance will depend on the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by us on the date of adoption. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB amended the guidance on the presentation and classification of certain cash receipts and cash payments in the consolidated statement of cash flows to eliminate current diversity in practice. The new guidance became effective on January 1, 2018, and the retrospective transition method will be applied to each period presented. Among other changes, the Company will begin classifying debt extinguishment costs within cash flows from financing activities. Classification of Restricted Cash In November 2016, the FASB amended the guidance on the presentation and classification of changes in restricted cash in the consolidated statement of cash flows to eliminate current diversity in practice. The amended guidance requires the consolidated statement of cash flows to explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. The new guidance became effective on January 1, 2018 and will be applied using a retrospective transition method to each period presented. The Company concluded that cash required to be segregated under federal or other regulations is considered restricted cash and will present the segregated cash activity on the consolidated statement of cash flows. Clarifying the Definition of a Business In January 2017, the FASB issued guidance to clarify the definition of a business in order to assist companies in the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance became effective on January 1, 2018, and will be applied prospectively. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued guidance to simplify the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. The amended guidance requires the Company to perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized at the amount by which the carrying amount exceeds the fair value of the reporting unit; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Income tax effects resulting from any tax deductible goodwill should be considered when measuring the goodwill impairment loss, if applicable. The Company will still have the option to perform a qualitative assessment to conclude whether it is more likely than not that the carrying amount of the Company exceeds its fair value. The guidance will be effective for interim and annual periods beginning January 1, 2020, and must be applied prospectively. Early adoption is permitted. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued guidance to amend the amortization period for certain callable debt securities held at a premium. The amended guidance shortens the amortization period for these securities by requiring the premium to be amortized to the earliest call date. The guidance does not amend the accounting for securities held at a discount. The Company early adopted this guidance beginning January 1, 2018, and it will be applied on a modified retrospective basis. A cumulative-effect adjustment to retained earnings was not required upon adoption since the Company did not hold any callable debt securities at a premium as of January 1, 2018. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued guidance to update the recognition and presentation of hedging relationships. Among other changes, the new guidance eases hedge documentation requirements and allows additional types of hedge accounting strategies. The Company early adopted this guidance beginning January 1, 2018. The Company applied the guidance on a modified retrospective basis, which resulted in a $7 million cumulative-effect adjustment to increase retained earnings. In addition, the guidance provided a one-time transition election to transfer certain debt securities from held-to-maturity to available-for-sale. The Company transferred agency mortgage-backed and agency debt securities with a fair value of $4.7 billion , and recognized a net pre-tax gain of $7 million within other comprehensive income. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued guidance to address certain income tax effects in Accumulated Other Comprehensive Income (AOCI) resulting from the tax reform enacted in 2017. The amended guidance provides an option to reclassify tax effects within AOCI to retained earnings in the period in which the effect of the tax reform is recorded. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods. Early adoption is permitted. The Company adopted the amended guidance in the first quarter of 2018 and recorded a $14 million increase to retained earnings. |
Restructuring and Acquisition32
Restructuring and Acquisition-Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Acquisition-Related Activities [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company also recorded intangible assets of $169 million , which are subject to amortization over their estimated useful lives: Estimated Fair Value (dollars in millions) Estimated Useful Life (In Years) Customer relationships $ 118 14 Technology 48 7 Trade name 3 2 Total intangible assets $ 169 |
Restructuring and Related Costs | The following table shows the components of restructuring and acquisition-related activities expense (dollars in millions): Year Ended December 31, 2017 2016 2015 Restructuring activities $ 12 $ 28 $ 17 Acquisition-related costs 3 7 — Total restructuring and acquisition-related activities $ 15 $ 35 $ 17 |
Interest Income and Interest 33
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest Income and Interest Expense Disclosure [Abstract] | |
Interest Income and Interest Expense Disclosure | The following table shows the components of interest income and interest expense (dollars in millions): Year Ended December 31, 2017 2016 2015 Interest income: Cash and equivalents $ 9 $ 7 $ 3 Cash required to be segregated under federal or other regulations 12 6 1 Available-for-sale securities 390 266 244 Held-to-maturity securities 572 425 346 Margin receivables 320 249 276 Loans 157 191 230 Broker-related receivables and other 3 1 3 Subtotal interest income 1,463 1,145 1,103 Other interest revenue (1) 108 88 112 Total interest income (2) 1,571 1,233 1,215 Interest expense: Deposits (4 ) (3 ) (4 ) Customer payables (5 ) (5 ) (5 ) Other borrowings (22 ) (18 ) (117 ) Corporate debt (48 ) (54 ) (59 ) Subtotal interest expense (79 ) (80 ) (185 ) Other interest expense (3) (7 ) (5 ) (9 ) Total interest expense (4) (86 ) (85 ) (194 ) Net interest income $ 1,485 $ 1,148 $ 1,021 (1) Represents interest income on securities loaned. (2) Interest income reflects $(59) million , $(35) million , and $(42) million recognized on hedges that qualify for hedge accounting for the years ended December 31, 2017, 2016, and 2015, respectively. (3) Represents interest expense on securities borrowed. (4) Interest expense reflects $(74) million recognized on hedges that qualify for hedge accounting for the year ended December 31, 2015. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Assets, Quantitative Information | 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 December 31, 2017 and 2016 : Unobservable Inputs Average Range December 31, 2017 Loans receivable: One- to four-family Appraised value $ 520,700 $60,000 - $1,200,000 Home equity Appraised value $ 317,300 $38,000 - $2,066,000 Real estate owned Appraised value $ 355,200 $4,500 - $2,000,000 December 31, 2016 Loans receivable: One- to four-family Appraised value $ 408,100 $50,000 - $1,490,000 Home equity Appraised value $ 312,000 $6,000 - $2,500,000 Real estate owned Appraised value $ 342,300 $21,500 - $1,800,000 |
Fair Value Measurements, Recurring and Nonrecurring | Assets and liabilities measured at fair value at December 31, 2017 and 2016 are summarized in the following tables (dollars in millions): Level 1 Level 2 Level 3 Total Fair Value December 31, 2017: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ — $ 19,195 $ — $ 19,195 Agency debentures — 966 — 966 US Treasuries — 458 — 458 Agency debt securities — 33 — 33 Municipal bonds — 20 — 20 Total debt securities — 20,672 — 20,672 Publicly traded equity securities 7 — — 7 Total available-for-sale securities 7 20,672 — 20,679 Receivables from brokers, dealers and clearing organizations: US Treasuries 300 — — 300 Other assets: Derivative assets (1) — 131 — 131 Total assets measured at fair value on a recurring basis (2) $ 307 $ 20,803 $ — $ 21,110 Liabilities Other liabilities: Derivative liabilities (1) $ — $ 14 $ — $ 14 Total liabilities measured at fair value on a recurring basis (2) $ — $ 14 $ — $ 14 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 22 $ 22 Home equity — — 13 13 Total loans receivable — — 35 35 Other assets: Loans held-for-sale — 17 — 17 Real estate owned — — 26 26 Total assets measured at fair value on a nonrecurring basis (3) $ — $ 17 $ 61 $ 78 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2017 . Information related to derivative instruments is detailed in Note 8—Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 33% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2017 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2017 , and for which a fair value measurement was recorded during the period. Level 1 Level 2 Level 3 Total Fair Value December 31, 2016: Recurring fair value measurements: Assets Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ — $ 12,634 $ — $ 12,634 Agency debentures — 788 — 788 US Treasuries — 407 — 407 Agency debt securities — 24 — 24 Municipal bonds — 32 — 32 Total debt securities — 13,885 — 13,885 Publicly traded equity securities 7 — — 7 Total available-for-sale securities 7 13,885 — 13,892 Other assets: Derivative assets (1) — 165 — 165 Total assets measured at fair value on a recurring basis (2) $ 7 $ 14,050 $ — $ 14,057 Liabilities Other liabilities: Derivative liabilities (1) $ — $ 31 $ — $ 31 Total liabilities measured at fair value on a recurring basis (2) $ — $ 31 $ — $ 31 Nonrecurring fair value measurements: Loans receivable, net: One- to four-family $ — $ — $ 25 $ 25 Home equity — — 21 21 Total loans receivable — — 46 46 Other assets: Real estate owned — — 35 35 Total assets measured at fair value on a nonrecurring basis (3) $ — $ — $ 81 $ 81 (1) All derivative assets and liabilities were interest rate contracts at December 31, 2016 . Information related to derivative instruments is detailed in Note 8—Derivative Instruments and Hedging Activities . (2) Assets and liabilities measured at fair value on a recurring basis represented 29% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2016 . (3) Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2016 , and for which a fair value measurement was recorded during the period. |
Gains and Losses, Fair Value Measurements, Nonrecurring | The following table presents losses recognized on assets measured at fair value on a nonrecurring basis during the years ended December 31, 2017 and 2016 (dollars in millions): Year Ended December 31, 2017 2016 2015 One- to four-family $ 4 $ 4 $ 7 Home equity 5 12 14 Total losses on loans receivable measured at fair value $ 9 $ 16 $ 21 |
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 December 31, 2017 and 2016 (dollars in millions): December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 931 $ 931 $ — $ — $ 931 Cash required to be segregated under federal or other regulations $ 872 $ 872 $ — $ — $ 872 Held-to-maturity securities: Agency mortgage-backed securities $ 20,502 $ — $ 20,404 $ — $ 20,404 Agency debentures 710 — 708 — 708 Agency debt securities 2,615 — 2,595 — 2,595 Other 12 — — 12 12 Total held-to-maturity securities $ 23,839 $ — $ 23,707 $ 12 $ 23,719 Margin receivables (1) $ 9,071 $ — $ 9,071 $ — $ 9,071 Loans receivable, net: One- to four-family $ 1,417 $ — $ — $ 1,463 $ 1,463 Home equity 1,051 — — 1,055 1,055 Consumer and other 186 — — 187 187 Total loans receivable, net (2) $ 2,654 $ — $ — $ 2,705 $ 2,705 Receivables from brokers, dealers and clearing organizations (1) $ 878 $ — $ 878 $ — $ 878 Other assets (1)(3) $ 18 $ — $ 18 $ — $ 18 Liabilities Deposits $ 42,742 $ — $ 42,741 $ — $ 42,741 Customer payables $ 9,449 $ — $ 9,449 $ — $ 9,449 Payables to brokers, dealers and clearing organizations $ 1,542 $ — $ 1,542 $ — $ 1,542 Other borrowings: FHLB advances $ 500 $ — $ 500 $ — $ 500 Trust preferred securities $ 410 $ — $ — $ 379 $ 379 Total other borrowings $ 910 $ — $ 500 $ 379 $ 879 Corporate debt $ 991 $ — $ 992 $ — $ 992 (1) The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was approximately $12.8 billion at December 31, 2017. Of this amount, $3.2 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2017. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $74 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2017 . (3) The $18 million in other assets at December 31, 2017 represents securities borrowing from customers under the fully paid lending program. December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash and equivalents $ 1,950 $ 1,950 $ — $ — $ 1,950 Cash required to be segregated under federal or other regulations $ 1,460 $ 1,460 $ — $ — $ 1,460 Held-to-maturity securities: Agency mortgage-backed securities $ 12,868 $ — $ 12,839 $ — $ 12,839 Agency debentures 29 — 29 — 29 Agency debt securities 2,854 — 2,848 — 2,848 Total held-to-maturity securities $ 15,751 $ — $ 15,716 $ — $ 15,716 Margin receivables (1) $ 6,731 $ — $ 6,731 $ — $ 6,731 Loans receivable, net: One- to four-family $ 1,918 $ — $ — $ 1,942 $ 1,942 Home equity 1,385 — — 1,311 1,311 Consumer and other 248 — — 249 249 Total loans receivable, net (2) $ 3,551 $ — $ — $ 3,502 $ 3,502 Receivables from brokers, dealers and clearing organizations $ 1,056 $ — $ 1,056 $ — $ 1,056 Liabilities Deposits $ 31,682 $ — $ 31,681 $ — $ 31,681 Customer Payables $ 8,159 $ — $ 8,159 $ — $ 8,159 Payables to brokers, dealers and clearing organizations $ 983 $ — $ 983 $ — $ 983 Trust preferred securities $ 409 $ — $ — $ 288 $ 288 Corporate debt $ 994 $ — $ 1,050 $ — $ 1,050 (1) 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 $9.8 billion at December 31, 2016. Of this amount, $2.0 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2016. (2) The carrying value of loans receivable, net includes the allowance for loan losses of $221 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2016 . |
Offsetting Assets and Liabili35
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting Assets and Liabilities [Abstract] | |
Offsetting Assets and Liabilities [Table Text Block] | The following table presents information about the Company's derivative instruments, securities borrowing and securities lending transactions which are transacted under master agreements to enable the users of the Company’s consolidated financial statements to evaluate the potential effect of rights of set-off between these recognized assets and liabilities at December 31, 2017 and 2016 (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 (1) Financial Instruments Collateral Received or Pledged (Including Cash) Net Amount December 31, 2017 Assets: Deposits paid for securities borrowed (2) $ 759 $ — $ 759 $ (251 ) $ (483 ) $ 25 Total $ 759 $ — $ 759 $ (251 ) $ (483 ) $ 25 Liabilities: Deposits received for securities loaned (3) $ 1,373 $ — $ 1,373 $ (251 ) $ (1,004 ) $ 118 Derivative liabilities (4)(5) 5 — 5 — (5 ) — Total $ 1,378 $ — $ 1,378 $ (251 ) $ (1,009 ) $ 118 December 31, 2016 Assets: Deposits paid for securities borrowed (2) $ 774 $ — $ 774 $ (192 ) $ (560 ) $ 22 Total $ 774 $ — $ 774 $ (192 ) $ (560 ) $ 22 Liabilities: Deposits received for securities loaned (3) $ 926 $ — $ 926 $ (192 ) $ (661 ) $ 73 Derivative liabilities (4)(5) 6 — 6 — (6 ) — Total $ 932 $ — $ 932 $ (192 ) $ (667 ) $ 73 (1) Net amount of deposits paid for securities borrowed are reflected in the receivables from brokers, dealers and clearing organizations and other assets line items in the consolidated balance sheet. Net amount of deposits received for securities loaned and derivative liabilities are reflected in the payables to brokers, dealers and clearing organizations and other liabilities line items in the consolidated balance sheet, respectively. (2) Included in the gross amounts of deposits paid for securities borrowed was $347 million and $307 million at December 31, 2017 and 2016 , 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. (3) Included in the gross amounts of deposits received for securities loaned was $821 million and $546 million at December 31, 2017 and 2016 , 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. (4) Excludes net accrued interest payable of $2 million at both December 31, 2017 and 2016 . (5) Collateral pledged included held-to-maturity securities at amortized cost at both December 31, 2017 and 2016 . |
Available-for-Sale and Held-t36
Available-for-Sale and Held-to-Maturity Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments Securities | The amortized cost and fair value of available-for-sale and held-to-maturity securities at December 31, 2017 and 2016 are shown in the following tables (dollars in millions): Amortized Cost Gross Unrealized / Unrecognized Gains Gross Unrealized / Unrecognized Losses Fair Value December 31, 2017: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 19,395 $ 47 $ (247 ) $ 19,195 Agency debentures 939 39 (12 ) 966 US Treasuries 452 10 (4 ) 458 Agency debt securities 34 — (1 ) 33 Municipal bonds 20 — — 20 Total debt securities 20,840 96 (264 ) 20,672 Publicly traded equity securities (1) 7 — — 7 Total available-for-sale securities $ 20,847 $ 96 $ (264 ) $ 20,679 Held-to-maturity securities: Agency mortgage-backed securities $ 20,502 $ 95 $ (193 ) $ 20,404 Agency debentures 710 — (2 ) 708 Agency debt securities 2,615 15 (35 ) 2,595 Other 12 — — 12 Total held-to-maturity securities $ 23,839 $ 110 $ (230 ) $ 23,719 December 31, 2016: Available-for-sale securities: (2) Debt securities: Agency mortgage-backed securities $ 12,946 $ 24 $ (336 ) $ 12,634 Agency debentures 791 18 (21 ) 788 US Treasuries 452 — (45 ) 407 Agency debt securities 25 — (1 ) 24 Municipal bonds 32 — — 32 Total debt securities 14,246 42 (403 ) 13,885 Publicly traded equity securities (1) 7 — — 7 Total available-for-sale securities $ 14,253 $ 42 $ (403 ) $ 13,892 Held-to-maturity securities: (2) Agency mortgage-backed securities $ 12,868 $ 123 $ (152 ) $ 12,839 Agency debentures 29 — — 29 Agency debt securities 2,854 26 (32 ) 2,848 Total held-to-maturity securities $ 15,751 $ 149 $ (184 ) $ 15,716 (1) Consists of investments in a mutual fund related to the Community Reinvestment Act. (2) Securities with a fair value of approximately $492 million were transferred from available-for-sale securities to held-to-maturity securities during the year ended December 31, 2016 pursuant to an evaluation of our investment strategy and an assessment by management about our intent and ability to hold those particular securities until maturity. |
Investments Classified by Contractual Maturity Date | The contractual maturities of all available-for-sale and held-to-maturity debt securities at December 31, 2017 are shown in the following table (dollars in millions): Amortized Cost Fair Value Available-for-sale debt securities: Due within one year $ — $ — Due within one to five years 363 353 Due within five to ten years 8,713 8,647 Due after ten years 11,764 11,672 Total available-for-sale debt securities $ 20,840 $ 20,672 Held-to-maturity debt securities: Due within one year $ 160 $ 159 Due within one to five years 2,027 2,039 Due within five to ten years 5,509 5,486 Due after ten years 16,143 16,035 Total held-to-maturity debt securities $ 23,839 $ 23,719 |
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 December 31, 2017 and 2016 (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 December 31, 2017: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 4,638 $ (23 ) $ 8,027 $ (224 ) $ 12,665 $ (247 ) Agency debentures — — 283 (12 ) 283 (12 ) US Treasuries — — 147 (4 ) 147 (4 ) Agency debt securities 9 — 24 (1 ) 33 (1 ) Municipal bonds — — 11 — 11 — Publicly traded equity securities 7 — — — 7 — Total temporarily impaired available-for-sale securities $ 4,654 $ (23 ) $ 8,492 $ (241 ) $ 13,146 $ (264 ) Held-to-maturity securities: Agency mortgage-backed securities $ 9,982 $ (78 ) $ 4,906 $ (115 ) $ 14,888 $ (193 ) Agency debentures 597 (2 ) 9 — 606 (2 ) Agency debt securities 373 (3 ) 1,345 (32 ) 1,718 (35 ) Total temporarily impaired held-to-maturity securities $ 10,952 $ (83 ) $ 6,260 $ (147 ) $ 17,212 $ (230 ) December 31, 2016: Available-for-sale securities: Debt securities: Agency mortgage-backed securities $ 9,281 $ (279 ) $ 1,620 $ (57 ) $ 10,901 $ (336 ) Agency debentures 454 (21 ) — — 454 (21 ) US Treasuries 407 (45 ) — — 407 (45 ) Agency debt securities 24 (1 ) — — 24 (1 ) Municipal bonds 13 — — — 13 — Publicly traded equity securities 7 — — — 7 — Total temporarily impaired available-for-sale securities $ 10,186 $ (346 ) $ 1,620 $ (57 ) $ 11,806 $ (403 ) Held-to-maturity securities: Agency mortgage-backed securities $ 5,929 $ (123 ) $ 1,272 $ (29 ) $ 7,201 $ (152 ) Agency debentures 18 — — — 18 — Agency debt securities 1,739 (32 ) 18 — 1,757 (32 ) Total temporarily impaired held-to-maturity securities $ 7,686 $ (155 ) $ 1,290 $ (29 ) $ 8,976 $ (184 ) |
Gains on Securities and Other, Net | The following table shows the components of the gains (losses) on securities and other, net line item on the consolidated statement of income for the years ended December 31, 2017, 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Reclassification of deferred losses on cash flow hedges $ — $ — $ (370 ) Gains on available-for-sale securities, net: Gains on available-for-sale securities 40 54 58 Losses on available-for-sale securities — (1 ) (20 ) Subtotal 40 53 38 Hedge ineffectiveness (14 ) (6 ) (1 ) Equity method investment income (loss) and other 2 (5 ) 9 Gains (losses) on securities and other, net $ 28 $ 42 $ (324 ) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Total Loans Receivable, Net | The following table presents loans receivable at December 31, 2017 and 2016 disaggregated by delinquency status (dollars in millions): Days Past Due Current 30-89 90-179 180+ Total Unamortized premiums, net Allowance for loans losses Loans Receivable, Net December 31, 2017 One- to four-family $ 1,269 $ 59 $ 22 $ 82 $ 1,432 $ 9 $ (24 ) $ 1,417 Home equity 1,014 36 15 32 1,097 — (46 ) 1,051 Consumer and other 185 3 — — 188 2 (4 ) 186 Total loans receivable $ 2,468 $ 98 $ 37 $ 114 $ 2,717 $ 11 $ (74 ) $ 2,654 December 31, 2016 One- to four-family $ 1,774 $ 67 $ 23 $ 86 $ 1,950 $ 13 $ (45 ) $ 1,918 Home equity 1,442 43 18 53 1,556 — (171 ) 1,385 Consumer and other 245 4 1 — 250 3 (5 ) 248 Total loans receivable $ 3,461 $ 114 $ 42 $ 139 $ 3,756 $ 16 $ (221 ) $ 3,551 |
Credit Quality Indicators for Loan Portfolio | The following tables show the distribution of the Company’s mortgage loan portfolios by credit quality indicator at December 31, 2017 and 2016 (dollars in millions): One- to Four-Family Home Equity December 31, December 31, Current LTV/CLTV (1) 2017 2016 2017 2016 <=80% $ 1,031 $ 1,308 $ 531 $ 686 80%-100% 256 413 291 414 100%-120% 91 143 176 274 >120% 54 86 99 182 Total mortgage loans receivable $ 1,432 $ 1,950 $ 1,097 $ 1,556 Average estimated current LTV/CLTV (2) 70 % 73 % 84 % 87 % Average LTV/CLTV at loan origination (3) 71 % 71 % 81 % 81 % (1) Current CLTV calculations for home equity loans are based on the maximum available line for HELOCs and outstanding principal balance for HEILs. 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 value estimates are updated on a quarterly basis. (2) The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for HELOCs, 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, HEILs and the maximum available line for HELOCs. One- to Four-Family Home Equity December 31, December 31, Current FICO 2017 2016 2017 2016 >=720 $ 805 $ 1,121 $ 548 $ 778 719 - 700 138 179 106 156 699 - 680 105 153 93 141 679 - 660 78 121 79 117 659 - 620 122 154 103 149 <620 184 222 168 215 Total mortgage loans receivable $ 1,432 $ 1,950 $ 1,097 $ 1,556 |
Loans by Delinquency Category and Non-Performing Loans | The following table shows the comparative data for nonperforming loans at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 2016 One- to four-family $ 192 $ 215 Home equity 98 136 Consumer and other — 1 Total nonperforming loans receivable $ 290 $ 352 |
Loans Receivable, Allowance for Loan Losses | The following table provides a roll forward by loan portfolio of the allowance for loan losses for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 One- to Four-Family Home Equity Consumer and other Total Allowance for loan losses, beginning of period $ 45 $ 171 $ 5 $ 221 Provision (benefit) for loan losses (29 ) (141 ) 2 (168 ) Charge-offs — (7 ) (6 ) (13 ) Recoveries 8 23 3 34 Net (charge-offs) recoveries 8 16 (3 ) 21 Allowance for loan losses, end of period $ 24 $ 46 $ 4 $ 74 Year Ended December 31, 2016 One- to Four-Family Home Equity Consumer and other Total Allowance for loan losses, beginning of period $ 40 $ 307 $ 6 $ 353 Provision (benefit) for loan losses (2 ) (148 ) 1 (149 ) Charge-offs (1 ) (17 ) (7 ) (25 ) Recoveries 8 29 5 42 Net (charge-offs) recoveries 7 12 (2 ) 17 Allowance for loan losses, end of period $ 45 $ 171 $ 5 $ 221 Year Ended December 31, 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 (55 ) — (40 ) Charge-offs (2 ) (31 ) (11 ) (44 ) Recoveries — 26 7 33 Net (charge-offs) recoveries (2 ) (5 ) (4 ) (11 ) Allowance for loan losses, end of period $ 40 $ 307 $ 6 $ 353 The following table presents the allowance for loan losses by loan portfolio at December 31, 2017 and 2016 (dollars in millions): One- to Four-Family Home Equity Consumer and other Total December 31, December 31, December 31, December 31, 2017 2016 2017 2016 2017 2016 2017 2016 General reserve: Quantitative component $ 15 $ 34 $ 14 $ 118 $ 4 $ 5 $ 33 $ 157 Qualitative component 3 4 3 2 — — 6 6 Specific valuation allowance 6 7 29 51 — — 35 58 Total allowance for loan losses $ 24 $ 45 $ 46 $ 171 $ 4 $ 5 $ 74 $ 221 Allowance as a % of loans (1) 1.6 % 2.3 % 4.2 % 11.0 % 2.1 % 1.9 % 2.7 % 5.8 % (1) Allowance as a percentage of loans receivable is calculated based on the gross loans receivable including net unamortized premiums for each respective category. 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 December 31, 2017 and 2016 (dollars in millions): Recorded Investment Allowance for Loan Losses December 31, December 31, 2017 2016 2017 2016 Collectively evaluated for impairment: One- to four-family $ 1,228 $ 1,717 $ 18 $ 38 Home equity 932 1,361 17 120 Consumer and other 190 253 4 5 Total collectively evaluated for impairment 2,350 3,331 39 163 Individually evaluated for impairment: One- to four-family 213 246 6 7 Home equity 165 195 29 51 Total individually evaluated for impairment 378 441 35 58 Total $ 2,728 $ 3,772 $ 74 $ 221 |
Impaired Financing Receivables | 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 December 31, 2017 and 2016 (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) December 31, 2017 One- to four-family $ 83 $ 74 $ 13 $ 5 $ 38 $ 213 Home equity 104 34 10 4 13 165 Total $ 187 $ 108 $ 23 $ 9 $ 51 $ 378 December 31, 2016 One- to four-family $ 97 $ 90 $ 16 $ 8 $ 35 $ 246 Home equity 119 41 10 4 21 195 Total $ 216 $ 131 $ 26 $ 12 $ 56 $ 441 (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) Total recorded investment in TDRs includes premium (discount), as applicable, and is net of charge-offs, which were $67 million and $144 million for one-to four-family and home equity loans, respectively, as of December 31, 2017 and $79 million and $178 million , respectively, as of December 31, 2016. (4) Total recorded investment in TDRs at December 31, 2017 consisted of $285 million of loans modified as TDRs and $93 million of loans that have been charged off due to bankruptcy notification. Total recorded investment in TDRs at December 31, 2016 consisted of $316 million of loans modified as TDRs and $125 million of loans that have been charged off due to bankruptcy notification. The following table shows detailed information related to the Company’s TDRs and specific valuation allowances at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 December 31, 2016 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 $ 54 $ 6 $ 48 $ 61 $ 7 $ 54 Home equity $ 83 $ 29 $ 54 $ 111 $ 51 $ 60 Without a recorded allowance: (1) One- to four-family $ 159 $ — $ 159 $ 185 $ — $ 185 Home equity $ 82 $ — $ 82 $ 84 $ — $ 84 Total: One- to four-family $ 213 $ 6 $ 207 $ 246 $ 7 $ 239 Home equity $ 165 $ 29 $ 136 $ 195 $ 51 $ 144 (1) Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. 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 years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Average Recorded Investment Interest Income Recognized December 31, December 31, 2017 2016 2015 2017 2016 2015 One- to four-family $ 221 $ 269 $ 303 $ 9 $ 11 $ 9 Home equity 179 204 213 16 17 17 Total $ 400 $ 473 $ 516 $ 25 $ 28 $ 26 |
Troubled Debt Restructurings - Modifications | The following tables provide the number of loans and post-modification balances immediately after being modified by major class during the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Interest Rate Reduction Number of Loans Principal Forgiven Deferred Principal Re-age/ Extension/ Interest Capitalization Other with Interest Rate Reduction Other (1) Total December 31, 2017 One- to four-family 40 $ — $ — $ 13 $ 1 $ 4 $ 18 Home equity 294 — — 12 1 9 22 Total 334 $ — $ — $ 25 $ 2 $ 13 $ 40 December 31, 2016 One- to four-family 47 $ 1 $ — $ 8 $ 2 $ 7 $ 18 Home equity 518 — — 8 3 25 36 Total 565 $ 1 $ — $ 16 $ 5 $ 32 $ 54 December 31, 2015 One- to four-family 34 $ — $ 1 $ 9 $ — $ 3 $ 13 Home equity 367 — — 3 2 19 24 Total 401 $ — $ 1 $ 12 $ 2 $ 22 $ 37 (1) Amounts represent loans whose terms were modified in a manner that did not result in an interest rate reduction, including re-aged loans, extensions, and loans with capitalized interest. |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 of derivatives as reported in the consolidated balance sheet at December 31, 2017 and 2016 (dollars in millions): Fair Value (1) Notional Asset (2) Liability (3) Net (4) December 31, 2017 Interest rate contracts: Fair value hedges $ 8,609 $ 131 $ (14 ) $ 117 Total derivatives designated as hedging instruments (5) $ 8,609 $ 131 $ (14 ) $ 117 December 31, 2016 Interest rate contracts: Fair value hedges $ 3,862 $ 165 $ (31 ) $ 134 Total derivatives designated as hedging instruments (5) $ 3,862 $ 165 $ (31 ) $ 134 (1) At December 31, 2017 , excludes derivative assets and liabilities of $6 million and $18 million , respectively, that were executed through a central clearing organization and were settled by variation margin payments. See Note 5—Offsetting Assets and Liabilities for additional information. (2) Reflected in the other assets line item on the consolidated balance sheet. (3) Reflected in the other liabilities line item on the consolidated balance sheet. (4) Represents net fair value of derivative instruments for disclosure purposes only. (5) All derivatives were designated as hedging instruments at December 31, 2017 and 2016 |
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 as fair value hedges and related hedged items on the consolidated statement of income for the year ended December 31, 2017 and 2016 (dollars in millions): Year Ended December 31, 2017 2016 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ 1 $ (3 ) $ (2 ) $ 28 $ (32 ) $ (4 ) Agency mortgage-backed securities 36 (48 ) (12 ) 42 (44 ) (2 ) Total gains (losses) included in earnings $ 37 $ (51 ) $ (14 ) $ 70 $ (76 ) $ (6 ) Year Ended December 31, 2015 Hedging Instrument Hedged Item Hedge Ineffectiveness (1) Agency debentures $ (3 ) $ 3 $ — Agency mortgage-backed securities (4 ) 3 (1 ) Total gains (losses) included in earnings $ (7 ) $ 6 $ (1 ) (1) Reflected in the gains (losses) on securities and other, net line item on the consolidated statement of income . |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net consisted of the following asset classes at December 31, 2017 and 2016 (dollars in millions): December 31, 2017 December 31, 2016 Gross Amount Accumulated Depreciation and Amortization Net Amount Gross Amount Accumulated Depreciation and Amortization Net Amount Software $ 403 $ (289 ) $ 114 $ 449 $ (355 ) $ 94 Leasehold improvements 122 (98 ) 24 119 (97 ) 22 Equipment 132 (101 ) 31 133 (92 ) 41 Buildings 72 (32 ) 40 72 (30 ) 42 Furniture and fixtures 7 (4 ) 3 19 (17 ) 2 Land 3 — 3 3 — 3 Construction in progress (1) 38 — 38 35 — 35 Total (2) $ 777 $ (524 ) $ 253 $ 830 $ (591 ) $ 239 (1) Construction in progress includes software in the process of development of $22 million at both December 31, 2017 and 2016 . (2) The Company executed a sale-leaseback transaction on its Alpharetta, Georgia office in 2014 and the transaction was accounted for as a financing as it did not qualify for leaseback accounting. The related assets continue to be included in the property and equipment, net line item on the consolidated balance sheet. |
Schedule of Sale Leaseback Transactions | The obligation for future minimum lease payments and minimum sublease proceeds to be received under the Alpharetta, Georgia lease is as follows (dollars in millions): Obligation for Minimum Lease Payments Minimum Sublease Proceeds Years ending December 31, 2018 $ 5 $ (3 ) 2019 5 (3 ) 2020 5 (3 ) 2021 5 (3 ) 2022 5 (3 ) Thereafter 9 — Total $ 34 $ (15 ) |
Goodwill and Other Intangible40
Goodwill and Other Intangibles, Net (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table outlines the Company's other intangible assets with finite lives (dollars in millions): December 31, 2017 Weighted Average Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount Customer relationships 18 10 $ 553 $ (309 ) $ 244 Technology 7 6 48 (9 ) 39 Trade name 2 1 3 (2 ) 1 Total $ 604 $ (320 ) $ 284 December 31, 2016 Weighted Average Weighted Average Remaining Useful Life (Years) Gross Amount Accumulated Amortization Net Amount Customer relationships 18 11 $ 553 $ (281 ) $ 272 Technology 7 7 48 (2 ) 46 Trade name 2 2 3 (1 ) 2 Total $ 604 $ (284 ) $ 320 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Assuming no future impairments of other intangibles or additional acquisitions or dispositions, the following table presents the Company's future annual amortization expense (dollars in millions): Years ending December 31, 2018 $ 40 2019 39 2020 37 2021 35 2022 33 Thereafter 100 Total future amortization expense $ 284 |
Receivables from and Payables41
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Schedule of Due to (from) Broker-Dealers and Clearing Organizations [Table Text Block] | Receivables from and payables to brokers, dealers and clearing organizations consist of the following (in millions): December 31, 2017 2016 Receivables: Securities borrowed $ 740 $ 774 Receivables from clearing organizations 376 231 Other 62 51 Total $ 1,178 $ 1,056 Payables: Securities loaned $ 1,373 $ 926 Payables to clearing organizations 123 7 Other 46 50 Total $ 1,542 $ 983 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | Deposits are summarized as follows (dollars in millions): Amount Weighted-Average Rate December 31, December 31, 2017 2016 2017 2016 Sweep deposits $ 37,734 $ 26,362 0.01 % 0.01 % Savings deposits 2,912 3,185 0.01 % 0.01 % Other deposits (1) 2,096 2,135 0.03 % 0.03 % Total deposits $ 42,742 $ 31,682 0.01 % 0.01 % (1) Includes checking deposits, money market deposits and certificates of deposit. As of December 31, 2017 and 2016 , the Company had $207 million and $177 million in non-interest bearing deposits, respectively. |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Borrowings Disclosure [Abstract] | |
Schedule of Maturities Summary of Other Borrowings | Other borrowings at December 31, 2017 and 2016 are summarized as follows (dollars in millions): December 31, 2017 2016 FHLB advances $ 500 $ — Trust preferred securities 410 409 Total other borrowings $ 910 $ 409 |
Schedule Of Outstanding Trusts | The face values of outstanding trusts at December 31, 2017 are shown below (dollars in millions). See Note 20—Commitments, Contingencies and Other Regulatory Matters for additional information on the Company's trust preferred securities. Trusts Face Value Maturity Date Annual Interest Rate ETBH Capital Trust I $ 20 2031 3.75% above 6-month LIBOR ETBH Capital Trust V, VI, VIII 51 2032 3.25%-3.65% above 3-month LIBOR ETBH Capital Trust VII, IX—XII 65 2033 3.00%-3.30% above 3-month LIBOR ETBH Capital Trust XIII—XVIII, XX 77 2034 2.45%-2.90% above 3-month LIBOR ETBH Capital Trust XIX, XXI, XXII 60 2035 2.20%-2.40% above 3-month LIBOR ETBH Capital Trust XXIII—XXIV 45 2036 2.10% above 3-month LIBOR ETBH Capital Trust XXV—XXX 96 2037 1.90%-2.00% above 3-month LIBOR Total $ 414 |
Corporate Debt (Tables)
Corporate Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Corporate Debt Instruments | Corporate debt at December 31, 2017 and 2016 is outlined in the following table (dollars in millions): Face Value Discount Net December 31, 2017 Interest-bearing notes: 2.95% Notes, due 2022 $ 600 $ (5 ) $ 595 3.80% Notes, due 2027 400 (4 ) 396 Total corporate debt $ 1,000 $ (9 ) $ 991 December 31, 2016 Interest-bearing notes: 5.375% Notes, due 2022 $ 540 $ (5 ) $ 535 4.625% Notes, due 2023 460 (4 ) 456 Total interest-bearing notes 1,000 (9 ) 991 Non-interest-bearing debt: 0% Convertible debentures, due 2019 3 — 3 Total corporate debt $ 1,003 $ (9 ) $ 994 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2017 , 2016 and 2015 were as follows (dollars in millions): Year Ended December 31, 2017 2016 2015 Current income tax expense (benefit): Federal $ — $ — $ (5 ) State (11 ) 3 (5 ) Foreign — 2 5 Total current (11 ) 5 (5 ) Deferred income tax expense (benefit): Federal 399 285 (145 ) State 51 (10 ) (31 ) Total deferred 450 275 (176 ) Non-current income tax expense (1) 11 6 4 Income tax expense (benefit) $ 450 $ 286 $ (177 ) (1) Non-current income tax expense primarily relates to amortization for investments in qualified affordable housing projects recognized under the proportional amortization method. |
Summary of Income Tax Contingencies | The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdiction Open Tax Years Hong Kong 2011-2017 United Kingdom 2015-2017 United States 2014-2017 Various states (1) 2008-2017 (1) Major state tax jurisdictions include California, Georgia, Illinois, New Jersey, New York and Virginia. The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 , and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits, beginning of period $ 28 $ 29 $ 330 Additions based on tax positions related to prior years 1 1 5 Additions based on tax positions related to current year 11 4 2 Reductions based on tax positions related to prior years (3 ) (3 ) (304 ) Settlements with taxing authorities (6 ) (1 ) (3 ) Statute of limitations lapses (6 ) (2 ) (1 ) Unrecognized tax benefits, end of period $ 25 $ 28 $ 29 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences and tax carryforwards that created deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are summarized in the following table (dollars in millions): December 31, 2017 2016 Deferred tax assets: Net operating losses $ 349 $ 676 Reserves and allowances, net 155 335 Financial instrument valuations 35 160 Deferred compensation 34 43 Tax credits 68 55 Basis differences in investments 8 14 Other 10 26 Total deferred tax assets 659 1,309 Valuation allowance (23 ) (35 ) Total deferred tax assets, net of valuation allowance 636 1,274 Deferred tax liabilities: Depreciation and amortization (385 ) (518 ) Total deferred tax liabilities (385 ) (518 ) Deferred tax assets, net $ 251 $ 756 |
Summary of Valuation Allowance | The following table provides a reconciliation of the beginning and ending amount of valuation allowance for the years ended December 31, 2017 , 2016 , and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Valuation allowance, beginning of period $ (35 ) $ (82 ) $ (91 ) Additions related to tax reform (reduced federal benefit) (4 ) — — Reductions related to the wind-down of foreign operations 14 — 14 Reductions (additions) related to state valuation allowance release 2 47 (5 ) Valuation allowance, end of period $ (23 ) $ (35 ) $ (82 ) |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate differed from the federal statutory rate as summarized in the following table for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 4.2 3.9 0.2 Difference between statutory rate and foreign effective tax rate — 0.2 (2.4 ) Tax exempt income — (0.1 ) (0.5 ) Disallowed executive compensation 0.1 0.2 6.5 Change in valuation allowances (0.1 ) (5.5 ) 0.1 Tax credits (0.3 ) (0.7 ) (3.8 ) Estimated reserve for uncertain tax positions (0.3 ) 0.1 4.7 Deferred tax adjustments (0.3 ) 1.3 3.5 Tax reform adjustments 5.5 — — Excess tax benefit on share-based compensation (0.7 ) — — Tax on undistributed earnings and profits in certain foreign subsidiaries — — 3.9 Settled IRS examination — — (241.5 ) Other (0.9 ) (0.3 ) (0.4 ) Effective tax rate 42.2 % 34.1 % (194.7 )% |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred stock outstanding at December 31, 2017 and 2016 is summarized as follows (in millions except total shares outstanding and per share data): Carrying Value at December 31, Description Issuance Date Per Annum Dividend Rate Total Shares Outstanding Liquidation Preference per Share 2017 2016 Series A Fixed-to-Floating Rate Non-Cumulative 8/25/2016 5.875% to, but excluding, 9/15/2026; 3-mo LIBOR + 4.435% thereafter 400,000 $ 1,000 $ 394 $ 394 Series B Fixed-to-Floating Rate Non-Cumulative 12/6/2017 5.30% to, but excluding, 3/15/2023; 3-mo LIBOR + 3.16% thereafter 3,000 $ 100,000 295 — Total 403,000 $ 689 $ 394 |
Schedule of Accumulated Other Comprehensive Loss | The following tables present after-tax changes in each component of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Available-for-Sale Securities Foreign Currency Translation Total Balance, December 31, 2016 $ (139 ) $ 2 $ (137 ) Other comprehensive income before reclassifications 137 — 137 Amounts reclassified from accumulated other comprehensive loss (24 ) (2 ) (26 ) Net change 113 (2 ) 111 Balance, December 31, 2017 $ (26 ) $ — $ (26 ) Available-for-Sale Securities Foreign Currency Translation Total Balance, December 31, 2015 $ (101 ) $ 2 $ (99 ) Other comprehensive loss before reclassifications (5 ) — (5 ) Amounts reclassified from accumulated other comprehensive loss (33 ) — (33 ) Net change (38 ) — (38 ) Balance, December 31, 2016 $ (139 ) $ 2 $ (137 ) Available-for-Sale Cash Flow Foreign Total Balance, December 31, 2014 $ 7 $ (261 ) $ 5 $ (249 ) Other comprehensive loss before reclassifications (84 ) (10 ) (3 ) (97 ) Amounts reclassified from accumulated other comprehensive loss (24 ) 271 — 247 Net change (108 ) 261 (3 ) 150 Balance, December 31, 2015 $ (101 ) $ — $ 2 $ (99 ) |
Components of Other Comprehensive Income (Loss) | The following table presents other comprehensive income (loss) activity and the related tax effect for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Year Ended December 31, 2017 2016 2015 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Other comprehensive income (loss) Available-for-sale securities: Unrealized gains (losses), net $ 213 $ (76 ) $ 137 $ (10 ) $ 5 $ (5 ) $ (136 ) $ 52 $ (84 ) Reclassification into earnings, net (39 ) 15 (24 ) (53 ) 20 (33 ) (39 ) 15 (24 ) Net change from available-for-sale securities 174 (61 ) 113 (63 ) 25 (38 ) (175 ) 67 (108 ) Cash flow hedging instruments: Unrealized losses, net — — — — — — (17 ) 7 (10 ) Reclassification into earnings, net — — — — — — 439 (168 ) 271 Net change from cash flow hedging instruments — — — — — — 422 (161 ) 261 Foreign currency translation: Foreign currency translation losses, net — — — — — — (3 ) — (3 ) Reclassification into earnings, net (2 ) — (2 ) — — — — — — Net change from foreign currency translation (2 ) — (2 ) — — — (3 ) — (3 ) Other comprehensive income (loss) $ 172 $ (61 ) $ 111 $ (63 ) $ 25 $ (38 ) $ 244 $ (94 ) $ 150 |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents the consolidated statement of income line items impacted by reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2017 , 2016 and 2015 (dollars in millions): Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Items in the Consolidated Statement of Income Year Ended December 31, 2017 2016 2015 Available-for-sale securities: $ 39 $ 53 $ 39 Gains (losses) on securities and other, net (15 ) (20 ) (15 ) Income tax expense $ 24 $ 33 $ 24 Reclassification into earnings, net Cash flow hedging instruments: $ — $ — $ (370 ) Gains (losses) on securities and other, net — — (69 ) Interest expense — — (439 ) Reclassification into earnings, before tax — — 168 Income tax benefit — — (271 ) Reclassification into earnings, net Foreign currency translation: $ 2 $ — $ — Other non-interest expenses $ 2 $ — $ — Reclassification into earnings, net |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | The following table presents a reconciliation of basic and diluted earnings per common share (in millions, except share data and per share amounts): Year Ended December 31, 2017 2016 2015 Net income $ 614 $ 552 $ 268 Preferred stock dividends 25 — — Net income available to common shareholders $ 589 $ 552 $ 268 Share data (in thousands): Basic weighted-average shares outstanding 273,190 277,789 290,762 Effect of weighted-average dilutive securities: Restricted stock and options 1,076 872 1,429 Convertible debentures 86 387 2,820 Diluted weighted-average shares outstanding (1) 274,352 279,048 295,011 Basic earnings per common share $ 2.16 $ 1.99 $ 0.92 Diluted earnings per common share (1) $ 2.15 $ 1.98 $ 0.91 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements | The table below summarizes the minimum capital requirements and excess capital for the Company’s broker-dealer and FCM subsidiaries at December 31, 2017 and 2016 (dollars in millions): Required Net Capital Net Capital Excess Net Capital December 31, 2017: E*TRADE Securities (1) $ 211 $ 1,213 $ 1,002 E*TRADE Futures (1) 4 19 15 International broker-dealer — 19 19 Total $ 215 $ 1,251 $ 1,036 December 31, 2016: E*TRADE Securities $ 158 $ 969 $ 811 OptionsHouse (2) 1 22 21 International broker-dealer — 21 21 Total $ 159 $ 1,012 $ 853 (1) E*TRADE Securities paid dividends of $345 million to the parent company during the year ended December 31, 2017 and $125 million in February 2018. In August 2017, all brokerage accounts and brokerage customer-related assets and obligations of OptionsHouse were transferred in connection with the integration. Upon completion of this transaction, OptionsHouse was renamed E*TRADE Futures and E*TRADE Securities' futures accounts and futures customer-related assets and obligations were transferred to E*TRADE Futures. (2) Elected to use the Aggregate Indebtedness method to compute net capital; however, as OptionsHouse was an FCM, the prescribed fixed-dollar minimum capital requirement was $1 million . |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | E*TRADE Financial, E*TRADE Bank and E*TRADE Savings 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): December 31, 2017 December 31, 2016 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 Financial (1) Tier 1 leverage $ 4,386 7.4 % $ 2,976 5.0 % $ 1,410 $ 3,610 7.8 % $ 2,316 5.0 % $ 1,294 Common equity Tier 1 capital $ 3,773 33.9 % $ 722 6.5 % $ 3,051 $ 3,483 37.0 % $ 612 6.5 % $ 2,871 Tier 1 risk-based capital $ 4,386 39.5 % $ 889 8.0 % $ 3,497 $ 3,610 38.3 % $ 754 8.0 % $ 2,856 Total risk-based capital $ 4,874 43.8 % $ 1,111 10.0 % $ 3,763 $ 4,148 44.0 % $ 942 10.0 % $ 3,206 E*TRADE Bank (1) Tier 1 leverage $ 3,620 7.6 % $ 2,394 5.0 % $ 1,226 $ 3,132 8.8 % $ 1,786 5.0 % $ 1,346 Common equity Tier 1 capital $ 3,620 35.7 % $ 660 6.5 % $ 2,960 $ 3,132 38.3 % $ 532 6.5 % $ 2,600 Tier 1 risk-based capital $ 3,620 35.7 % $ 812 8.0 % $ 2,808 $ 3,132 38.3 % $ 655 8.0 % $ 2,477 Total risk-based capital $ 3,694 36.4 % $ 1,015 10.0 % $ 2,679 $ 3,237 39.5 % $ 819 10.0 % $ 2,418 E*TRADE Savings Bank (1) Tier 1 leverage $ 904 26.6 % $ 170 5.0 % $ 734 $ 226 12.0 % $ 94 5.0 % $ 132 Common equity Tier 1 capital $ 904 111.1 % $ 53 6.5 % $ 851 $ 226 69.6 % $ 21 6.5 % $ 205 Tier 1 risk-based capital $ 904 111.1 % $ 65 8.0 % $ 839 $ 226 69.6 % $ 26 8.0 % $ 200 Total risk-based capital $ 905 111.2 % $ 81 10.0 % $ 824 $ 227 69.8 % $ 32 10.0 % $ 195 (1) Basel III includes a capital conservation buffer that limits a banking organization’s ability to make capital distributions and discretionary bonus payments to executive officers if a banking organization fails to maintain a Common Equity Tier 1 capital conservation buffer of more than 2.5% , on a fully phased-in basis, of total risk-weighted assets above each of the following minimum risk-based capital ratio requirements: Common Equity Tier 1 capital ( 4.5% ), Tier 1 ( 6.0% ), and total risk-based capital ( 8.0% ). This requirement was effective beginning on January 1, 2016, and will be fully phased-in by 2019. See Business—Regulation for additional information. |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company has non-cancelable operating leases for facilities through 2029 . Future minimum lease payments and sublease proceeds under these leases with initial or remaining terms in excess of one year, including leases associated with restructuring activities, are as follows (dollars in millions): Operating Lease Commitments (1) Years ending December 31, 2018 $ 27 2019 29 2020 23 2021 21 2022 12 Thereafter 45 Total future minimum lease payments $ 157 Sublease proceeds (2 ) Net lease commitments $ 155 (1) Excludes minimum lease payments and sublease proceeds on the Alpharetta, Georgia lease, which is accounted for as a financing. |
Condensed Financial Informati50
Condensed Financial Information (Parent Company Only) (Tables) - Parent Company [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |
Condensed Statement of Comprehensive Income | CONDENSED STATEMENT OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2017 2016 2015 Dividends from subsidiaries (1) $ 350 $ 858 $ 859 Other revenues 377 328 317 Total net revenue 727 1,186 1,176 Total non-interest expense 611 501 560 Income before income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries 116 685 616 Income tax expense (benefit) 75 456 (287 ) Equity in undistributed income (loss) of subsidiaries 573 323 (635 ) Net income (2) 614 552 268 Other comprehensive income (loss) 111 (38 ) 150 Comprehensive income $ 725 $ 514 $ 418 (1) Includes $423 million and $281 million from E*TRADE Bank for the years ended December 31, 2016 and 2015, respectively. (2) Net income available to common shareholders was $589 million for the year ended December 31, 2017 and includes the impact of $25 million of preferred stock dividends. |
Condensed Balance Sheet | CONDENSED BALANCE SHEET (In millions) December 31, 2017 2016 ASSETS Cash and equivalents $ 493 $ 416 Property and equipment, net 157 148 Investment in consolidated subsidiaries (1) 7,268 6,523 Receivable from subsidiaries 59 38 Other assets 202 332 Total assets $ 8,179 $ 7,457 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Corporate debt $ 991 $ 994 Other liabilities 257 191 Total liabilities 1,248 1,185 Total shareholders’ equity 6,931 6,272 Total liabilities and shareholders’ equity $ 8,179 $ 7,457 (1) Includes investment of $3.7 billion and $3.2 billion in E*TRADE Bank as of December 31, 2017 and 2016, respectively. |
Condensed Cash Flow Statement | CONDENSED STATEMENT OF CASH FLOWS (In millions) Year Ended December 31, 2017 2016 2015 Cash flows from operating activities: Net income $ 614 $ 552 $ 268 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51 48 44 Equity in undistributed (income) loss from subsidiaries (573 ) (323 ) 635 Losses on early extinguishment of debt 9 — 5 Other 213 585 (152 ) Net cash provided by operating activities 314 862 800 Cash flows from investing activities: Capital expenditures for property and equipment (59 ) (36 ) (33 ) Cash contributions to subsidiaries (61 ) (766 ) (147 ) Other 6 16 — Net cash used in investing activities (114 ) (786 ) (180 ) Cash flows from financing activities: Net proceeds from issuance of senior notes 999 — 460 Payments on senior notes (1,000 ) — (800 ) Issuance of preferred stock 300 400 — Repurchases of common stock (362 ) (452 ) (50 ) Preferred stock dividends (25 ) — — Other (35 ) (40 ) (18 ) Net cash used in financing activities (123 ) (92 ) (408 ) Increase (decrease) in cash and equivalents 77 (16 ) 212 Cash and equivalents, beginning of period 416 432 220 Cash and equivalents, end of period $ 493 $ 416 $ 432 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The information presented below reflects all adjustments, which, in the opinion of management, are of a normal and recurring nature necessary to present fairly the results of operations for the quarterly periods presented (dollars in millions, except per share amounts): 2017 2016 First Second Third Fourth First Second Third Fourth Total net revenue $ 553 $ 577 $ 599 $ 637 $ 472 $ 474 $ 486 $ 509 Net income $ 145 $ 193 $ 147 $ 129 $ 153 $ 133 $ 139 $ 127 Earnings per share: Basic $ 0.48 $ 0.70 $ 0.49 $ 0.48 $ 0.54 $ 0.48 $ 0.51 $ 0.46 Diluted $ 0.48 $ 0.70 $ 0.49 $ 0.48 $ 0.53 $ 0.48 $ 0.51 $ 0.46 |
Organization, Basis of Presen52
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash Equivalents [Abstract] | ||||
Overnight Cash, Federal Reserve | $ 490 | $ 1,100 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
OTTI recognized for the period | $ 0 | 0 | $ 0 | |
Loan and Lease Receivables, Impaired [Abstract] | ||||
Percentage of Loan To Value, For Assigning Higher Level Of Risk | 110.00% | |||
Percentage of Combined Loan To Value, For Assigning Higher Level Of Risk | 125.00% | |||
Credit Score For Assigning Higher Level Of Risk | 600 | |||
Number Of Consecutive Payments For Modified Loans To Be Performing | 6 | |||
Period For Bankruptcy Loans To Be Classified As Nonperforming | 60 days | |||
Loans and Leases Receivable, Other Information [Abstract] | ||||
Period Past Due Real Estate Secured Loans Place On Nonaccrual Status And Classified As Nonperforming | 90 days | |||
Period Nonperforming Loans Return To Accrual Status | 90 days | |||
Number Of Consecutive Payments For Modified Loans To Be Performing | 6 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Trust Preferred Securities Contractual Time Period | 30 years | |||
Allowance for loan losses | $ 74 | 221 | 353 | $ 404 |
Loans and Leases Receivable, before Fees, Gross | 2,717 | 3,756 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of goodwill | 0 | 0 | 0 | |
Equity Method, Cost Method and Other Investments [Abstract] | ||||
Investment in FHLB Stock | $ 36 | 15 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 100,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 58 | 48 | 28 | |
Share-based compensation | $ 41 | $ 30 | $ 34 | |
A2015Plan [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 8,900,000 | |||
Property And Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Property And Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Software Development [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 4 years | |||
Available-for-sale Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
OTTI recognized for the period | $ 0 | |||
Held-to-maturity Securities [Member] | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
OTTI recognized for the period | $ 0 | |||
Employee Stock Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||
Employee Stock Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Of Common Shares Restricted Stock Unit Can Be Converted Into | shares | 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 2,500,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized [Abstract] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 37 | |||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common shares each performance share unit can be converted into | shares | 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 200,000 |
Organization, Basis of Presen53
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details - Adoption of New Accounting Standards) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Deferred tax asset | $ 659 | $ 1,309 | ||
Cumulative-effect adjustment to equity | 3 | |||
Income tax expense (benefit) | $ 450 | 286 | $ (177) | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | ||||
Number of regional branches | 30 | |||
Number of corporate locations | 8 | |||
Accounting standards update 2016-09 | ||||
Deferred tax asset | $ 3 | |||
Cumulative-effect adjustment to equity | $ 3 | |||
Prior period reclassification adjustment | $ 21 | $ 11 | ||
Income tax expense (benefit) | $ (7) | |||
Adjustments for new accounting principle, early adoption [Member] | ||||
Cumulative-effect adjustment to equity | 7 | |||
Fair value of agency securities transferred | 4,700 | |||
Net gain recognized within other comprehensive income for transferred securities | 7 | |||
Increase to retained earnings | $ 14 |
Restructuring and Acquisition54
Restructuring and Acquisition-Related Activities (Details - Acquisition) - USD ($) $ in Millions | Sep. 12, 2016 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 578 | |
Finite-lived Intangible Assets Acquired | $ 169 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 118 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 48 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 3 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |
OptionsHouse Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 725 | |
Goodwill, Acquired During Period | 578 | |
Finite-lived Intangible Assets Acquired | $ 169 |
Restructuring and Acquisition55
Restructuring and Acquisition-Related Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring activities | $ 12 | $ 28 | $ 17 |
Acquisition-related costs | 3 | 7 | 0 |
Total restructuring and acquisition-related activities | $ 15 | $ 35 | 17 |
One-time Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance cost | $ 6 |
Interest Income and Interest 56
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Cash and equivalents | $ 9 | $ 7 | $ 3 |
Cash required to be segregated under federal or other regulations | 12 | 6 | 1 |
Available-for-sale securities | 390 | 266 | 244 |
Held-to-maturity securities | 572 | 425 | 346 |
Margin receivables | 320 | 249 | 276 |
Loans | 157 | 191 | 230 |
Broker-related receivables and other | 3 | 1 | 3 |
Subtotal interest income | 1,463 | 1,145 | 1,103 |
Other interest revenue(1) | 108 | 88 | 112 |
Total interest income(2) | 1,571 | 1,233 | 1,215 |
Interest expense: | |||
Deposits | (4) | (3) | (4) |
Customer payables | (5) | (5) | (5) |
Other borrowings | (22) | (18) | (117) |
Corporate debt | (48) | (54) | (59) |
Subtotal interest expense | (79) | (80) | (185) |
Other interest expense(3) | (7) | (5) | (9) |
Total interest expense(4) | (86) | (85) | (194) |
Net interest income | 1,485 | 1,148 | 1,021 |
Hedging expense included in interest income | $ (59) | $ (35) | (42) |
Hedging income included in interest expense | $ (74) |
Fair Value Disclosures (Details
Fair Value Disclosures (Details - Inputs) - Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Loans Receivable [Member] | One- To Four-Family [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | $ 520,700 | $ 408,100 |
Loans Receivable [Member] | One- To Four-Family [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 1,200,000 | 1,490,000 |
Loans Receivable [Member] | One- To Four-Family [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 60,000 | 50,000 |
Loans Receivable [Member] | Home Equity [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 317,300 | 312,000 |
Loans Receivable [Member] | Home Equity [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 2,066,000 | 2,500,000 |
Loans Receivable [Member] | Home Equity [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 38,000 | 6,000 |
Real Estate Owned [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 355,200 | 342,300 |
Real Estate Owned [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | 2,000,000 | 1,800,000 |
Real Estate Owned [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised Value | $ 4,500 | $ 21,500 |
Fair Value Disclosures (Detai58
Fair Value Disclosures (Details - Recurring and Nonrecurring) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 20,679,000 | $ 13,892,000 | |
Assets measured at fair value on recurring basis percentage of total assets | 33.00% | 29.00% | |
Fair Value, Transfers Between Level 1 and Level 2 and Level 3, Description and Policy (Textuals) [Abstract] | |||
Fair value, assets, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 | |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 2 to Level 1 transfers, amount | 0 | 0 | |
Fair value, assets, Level 1 to Level 3 transfers, amount | 0 | 0 | |
Fair value, assets, Level 3 to Level 1 transfers, amount | 0 | 0 | |
Fair value, assets, Level 2 to Level 3 transfers, amount | 0 | 0 | |
Fair value, assets, Level 3 to Level 2 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 1 to Level 3 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 3 to Level 1 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 2 to Level 3 transfers, amount | 0 | 0 | |
Fair value, liabilities, Level 3 to Level 2 transfers, amount | $ 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% | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | $ 20,679,000 | $ 13,892,000 | |
U.S. Treasuries | 300,000 | ||
Derivative assets | 131,000 | 165,000 | |
Total assets measured at fair value on a recurring basis | 21,110,000 | 14,057,000 | |
Derivative Liability | 14,000 | 31,000 | |
Total liabilities measured at fair value on a recurring basis | 14,000 | 31,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total loans receivable | 35,000 | 46,000 | |
Loans Held-for-sale, Fair Value Disclosure | 17,000 | ||
REO | 26,000 | 35,000 | |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 78,000 | 81,000 | |
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 | 7,000 | 7,000 | |
U.S. Treasuries | 300,000 | ||
Total assets measured at fair value on a recurring basis | 307,000 | 7,000 | |
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 | 20,672,000 | 13,885,000 | |
Derivative assets | 131,000 | 165,000 | |
Total assets measured at fair value on a recurring basis | 20,803,000 | 14,050,000 | |
Derivative Liability | 14,000 | 31,000 | |
Total liabilities measured at fair value on a recurring basis | 14,000 | 31,000 | |
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans Held-for-sale, Fair Value Disclosure | 17,000 | ||
Total Assets Measured at Fair Value On A Nonrecurring Basis | 17,000 | ||
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total loans receivable | 35,000 | 46,000 | |
REO | 26,000 | 35,000 | |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 61,000 | 81,000 | |
Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 9,000 | 16,000 | $ 21,000 |
One- To Four-Family [Member] | Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 4,000 | 4,000 | 7,000 |
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 | 22,000 | 25,000 | |
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 | 22,000 | 25,000 | |
Home Equity [Member] | Loans Receivable [Member] | |||
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | |||
(Gains) losses measured at fair value | 5,000 | 12,000 | $ 14,000 |
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 | 13,000 | 21,000 | |
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 | 13,000 | 21,000 | |
Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 20,672,000 | 13,885,000 | |
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 | 20,672,000 | 13,885,000 | |
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 | 20,672,000 | 13,885,000 | |
Agency mortgage-backed securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 19,195,000 | 12,634,000 | |
Agency mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 19,195,000 | 12,634,000 | |
Agency mortgage-backed 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 | 19,195,000 | 12,634,000 | |
Agency Debentures [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 966,000 | 788,000 | |
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 | 966,000 | 788,000 | |
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 | 966,000 | 788,000 | |
U.S. Treasuries [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 458,000 | 407,000 | |
U.S. Treasuries [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 458,000 | 407,000 | |
U.S. Treasuries [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 | 458,000 | 407,000 | |
Agency Debt Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 33,000 | 24,000 | |
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 | 33,000 | 24,000 | |
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 | 33,000 | 24,000 | |
Municipal Bonds [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 20,000 | 32,000 | |
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 | 20,000 | 32,000 | |
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 | 20,000 | 32,000 | |
Equity Securities [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Available-for-sale securities | 7,000 | 7,000 | |
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 | 7,000 | 7,000 | |
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 | $ 7,000 | $ 7,000 |
Fair Value Disclosures (Detai59
Fair Value Disclosures (Details - Level 3) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Level 3 recurring assets | $ 0 | $ 0 |
Level 3 recurring liabilities | $ 0 | $ 0 |
Fair Value Disclosures (Detai60
Fair Value Disclosures (Details - FV of Financial Instruments) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | $ 931 | $ 1,950 | $ 2,233 | $ 1,783 |
Cash required to be segregated under federal or other regulations | 872 | 1,460 | ||
Total held-to-maturity securities | 23,839 | 15,751 | ||
Margin Receivables | 9,071 | 6,731 | ||
Total loans receivable, net | 2,654 | 3,551 | ||
Receivables from brokers, dealers and clearing organizations | 1,178 | 1,056 | ||
Deposits | 42,742 | 31,682 | ||
Customer Payables | 9,449 | 8,159 | ||
Payables to brokers, dealers and clearing organizations | 1,542 | 983 | ||
FHLB advances | 500 | 0 | ||
Trust preferred securities | 410 | 409 | ||
Other borrowings | 910 | 409 | ||
Allowance for loan losses | 74 | 221 | 353 | 404 |
Corporate debt | 991 | 994 | ||
Securities borrowed under fully paid lending program | 18 | |||
Margin Receivables Detail [Abstract] | ||||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value | 12,800 | 9,800 | ||
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | 3,200 | 2,000 | ||
Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 931 | 1,950 | ||
Cash required to be segregated under federal or other regulations | 872 | 1,460 | ||
Total held-to-maturity securities | 23,839 | 15,751 | ||
Margin Receivables | 9,071 | 6,731 | ||
Total loans receivable, net | 2,654 | 3,551 | ||
Receivables from brokers, dealers and clearing organizations | 878 | 1,056 | ||
Other assets | 18 | |||
Deposits | 42,742 | 31,682 | ||
Customer Payables | 9,449 | 8,159 | ||
Payables to brokers, dealers and clearing organizations | 1,542 | 983 | ||
FHLB advances | 500 | |||
Trust preferred securities | 410 | 409 | ||
Other borrowings | 910 | |||
Corporate debt | 991 | 994 | ||
Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 931 | 1,950 | ||
Cash required to be segregated under federal or other regulations | 872 | 1,460 | ||
Total held-to-maturity securities | 23,719 | 15,716 | ||
Margin Receivables | 9,071 | 6,731 | ||
Total loans receivable, net | 2,705 | 3,502 | ||
Receivables from brokers, dealers and clearing organizations | 878 | 1,056 | ||
Other assets | 18 | |||
Deposits | 42,741 | 31,681 | ||
Customer Payables | 9,449 | 8,159 | ||
Payables to brokers, dealers and clearing organizations | 1,542 | 983 | ||
FHLB advances | 500 | |||
Trust preferred securities | 379 | 288 | ||
Other borrowings | 879 | |||
Corporate debt | 992 | 1,050 | ||
One- To Four-Family [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,417 | 1,918 | ||
Allowance for loan losses | 24 | 45 | 40 | 27 |
One- To Four-Family [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,417 | 1,918 | ||
One- To Four-Family [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,463 | 1,942 | ||
Home Equity [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,051 | 1,385 | ||
Allowance for loan losses | 46 | 171 | 307 | 367 |
Home Equity [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,051 | 1,385 | ||
Home Equity [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,055 | 1,311 | ||
Consumer and other [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 186 | 248 | ||
Allowance for loan losses | 4 | 5 | $ 6 | $ 10 |
Consumer and other [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 186 | 248 | ||
Consumer and other [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 187 | 249 | ||
Agency mortgage-backed securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 20,502 | 12,868 | ||
Agency mortgage-backed securities [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 20,502 | 12,868 | ||
Agency mortgage-backed securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 20,404 | 12,839 | ||
Agency Debentures [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 710 | 29 | ||
Agency Debentures [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 710 | 29 | ||
Agency Debentures [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 708 | 29 | ||
Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,615 | 2,854 | ||
Agency Debt Securities [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,615 | 2,854 | ||
Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 2,595 | 2,848 | ||
Other Non-Agency Debt Securities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 12 | |||
Other Non-Agency Debt Securities [Member] | Carrying Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 12 | |||
Other Non-Agency Debt Securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 12 | |||
Level 1 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and equivalents | 931 | 1,950 | ||
Cash required to be segregated under federal or other regulations | 872 | 1,460 | ||
Level 2 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 23,707 | 15,716 | ||
Margin Receivables | 9,071 | 6,731 | ||
Receivables from brokers, dealers and clearing organizations | 878 | 1,056 | ||
Other assets | 18 | |||
Deposits | 42,741 | 31,681 | ||
Customer Payables | 9,449 | 8,159 | ||
Payables to brokers, dealers and clearing organizations | 1,542 | 983 | ||
FHLB advances | 500 | |||
Other borrowings | 500 | |||
Corporate debt | 992 | 1,050 | ||
Level 2 [Member] | Agency mortgage-backed securities [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 20,404 | 12,839 | ||
Level 2 [Member] | Agency Debentures [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 708 | 29 | ||
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 | 2,595 | 2,848 | ||
Level 3 [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total held-to-maturity securities | 12 | 0 | ||
Total loans receivable, net | 2,705 | 3,502 | ||
Trust preferred securities | 379 | 288 | ||
Other borrowings | 379 | |||
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 | 1,463 | 1,942 | ||
Level 3 [Member] | Home Equity [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 1,055 | 1,311 | ||
Level 3 [Member] | Consumer and other [Member] | Fair Value [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Total loans receivable, net | 187 | $ 249 | ||
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 | $ 12 |
Offsetting Assets and Liabili61
Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Footnotes [Abstract] | ||
Securities Borrowed, Transacted Through Clearing Company | $ 347 | $ 307 |
Securities Loaned, Transacted Through Clearing Company | 821 | 546 |
Interest Payable Excluded From Gross Amounts of Derivatives | 2 | 2 |
Derivative Asset, Not Subject to Master Netting Arrangement | 131 | 165 |
Derivative Liability, Not Subject to Master Netting Arrangement | 9 | 25 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 6 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 18 | |
Offsetting Assets [Abstract] | ||
Securities Borrowed, Gross | 759 | 774 |
Securities Borrowed, Liability | 0 | 0 |
Securities Borrowed | 759 | 774 |
Securities Borrowed, Financial Instruments, Not Offset | (251) | (192) |
Securities Borrowed, Collateral Received | (483) | (560) |
Securities Borrowed, Amount Offset Against Collateral | 25 | 22 |
(Total Offsetting Assets) Securities Borrowed, Gross | 759 | 774 |
(Total Offsetting Assets) Securities Borrowed, Liability | 0 | 0 |
(Total Offsetting Assets) Securities Borrowed | 759 | 774 |
(Total Offsetting Assets) Securities Borrowed, Financial Instruments Not Offset | (251) | (192) |
(Total Offsetting Assets) Securities Borrowed, Collateral Received | (483) | (560) |
(Total Offsetting Assets) Securities Borrowed Net | 25 | 22 |
Offsetting Liabilities [Abstract] | ||
Securities Loaned, Gross | 1,373 | 926 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned | 1,373 | 926 |
Securities Loaned, Financial Instruments, Not Offset | (251) | (192) |
Securities Loaned, Collateral Pledged | (1,004) | (661) |
Securities Loaned, Amount Offset Against Collateral | 118 | 73 |
Derivative Liability, Fair Value, Gross Liability | 5 | 6 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability | 5 | 6 |
Derivative Liability, Financial Instruments, Not Offset | 0 | 0 |
Derivative Liability, Collateral Pledged | (5) | (6) |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Gross | 1,378 | 932 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned | 1,378 | 932 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Financial Instruments Not Offset | (251) | (192) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Collateral Pledged | (1,009) | (667) |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Offset Against Collateral | $ 118 | $ 73 |
Available-for-Sale Securities (
Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | $ 20,847 | $ 14,253 | |
Available-for-sale securities, gross unrealized gains | 96 | 42 | |
Available-for-sale securities, gross unrealized losses | (264) | (403) | |
Available-for-sale securities, fair value | 20,679 | 13,892 | |
Transfer of available-for-sale securities to held-to-maturity | 0 | 492 | $ 0 |
Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 20,840 | 14,246 | |
Available-for-sale securities, gross unrealized gains | 96 | 42 | |
Available-for-sale securities, gross unrealized losses | (264) | (403) | |
Available-for-sale securities, fair value | 20,672 | 13,885 | |
Agency Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 19,395 | 12,946 | |
Available-for-sale securities, gross unrealized gains | 47 | 24 | |
Available-for-sale securities, gross unrealized losses | (247) | (336) | |
Available-for-sale securities, fair value | 19,195 | 12,634 | |
Agency Debentures [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 939 | 791 | |
Available-for-sale securities, gross unrealized gains | 39 | 18 | |
Available-for-sale securities, gross unrealized losses | (12) | (21) | |
Available-for-sale securities, fair value | 966 | 788 | |
U.S. Treasuries [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 452 | 452 | |
Available-for-sale securities, gross unrealized gains | 10 | 0 | |
Available-for-sale securities, gross unrealized losses | (4) | (45) | |
Available-for-sale securities, fair value | 458 | 407 | |
Agency Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 34 | 25 | |
Available-for-sale securities, gross unrealized gains | 0 | 0 | |
Available-for-sale securities, gross unrealized losses | (1) | (1) | |
Available-for-sale securities, fair value | 33 | 24 | |
Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 20 | 32 | |
Available-for-sale securities, gross unrealized gains | 0 | 0 | |
Available-for-sale securities, gross unrealized losses | 0 | 0 | |
Available-for-sale securities, fair value | 20 | 32 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost | 7 | 7 | |
Available-for-sale securities, gross unrealized losses | 0 | 0 | |
Available-for-sale securities, fair value | $ 7 | $ 7 |
Held-to-Maturity Securities (De
Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | $ 23,839 | $ 15,751 |
Held-to-maturity securities, gross unrecognized gains | 110 | 149 |
Held-to-maturity securities, gross unrecognized losses | (230) | (184) |
Held-to-maturity securities, fair value | 23,719 | 15,716 |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 20,502 | 12,868 |
Held-to-maturity securities, gross unrecognized gains | 95 | 123 |
Held-to-maturity securities, gross unrecognized losses | (193) | (152) |
Held-to-maturity securities, fair value | 20,404 | 12,839 |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 710 | 29 |
Held-to-maturity securities, gross unrecognized gains | 0 | 0 |
Held-to-maturity securities, gross unrecognized losses | (2) | 0 |
Held-to-maturity securities, fair value | 708 | 29 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 2,615 | 2,854 |
Held-to-maturity securities, gross unrecognized gains | 15 | 26 |
Held-to-maturity securities, gross unrecognized losses | (35) | (32) |
Held-to-maturity securities, fair value | 2,595 | $ 2,848 |
Other Non-Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, amortized cost | 12 | |
Held-to-maturity securities, fair value | $ 12 |
Available-for-Sale and Held-t64
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 363 | |
Available-for-sale securities, due within five to ten years, amortized cost | 8,713 | |
Available-for-sale securities, due after ten years, amortized cost | 11,764 | |
Available-for-sale securities, amortized cost | 20,840 | |
Available-for-sale securities, due within one year, fair value | 0 | |
Available-for-sale securities, due within one to five years, fair value | 353 | |
Available-for-sale securities, due within five to ten years, fair value | 8,647 | |
Available-for-sale securities, due after ten years, fair value | 11,672 | |
Available-for-sale securities, fair value | 20,672 | |
Held-to-Maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due within one year, amortized cost | 160 | |
Held-to-maturity securities, due within one to five years, amortized cost | 2,027 | |
Held-to-maturity securities, due within five to ten years, amortized cost | 5,509 | |
Held-to-maturity securities, due after ten years, amortized cost | 16,143 | |
Held-to-maturity securities, amortized cost | 23,839 | $ 15,751 |
Held-to-maturity securities, due within one year, fair value | 159 | |
Held-to-maturity securities, due within one to five years, fair value | 2,039 | |
Held-to-maturity securities, due within five to ten years, fair value | 5,486 | |
Held-to-maturity securities, due after ten years, fair value | 16,035 | |
Held-to-maturity securities, fair value | 23,719 | 15,716 |
Available-for-Sale Securities Pledged As Collateral (Textuals) [Abstract] | ||
Available-for-sale debt securities pledged as collateral | 352 | 6 |
Held-to-Maturity Securities Pledged As Collateral (Textuals) [Abstract] | ||
Held-to-maturity debt securities pledged as collateral | $ 5,500 | $ 500 |
Available-for-Sale Securities65
Available-for-Sale Securities (Details - OTTI) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | $ 4,654 | $ 10,186 |
Available-for-sale securities, twelve months or longer, fair value | 8,492 | 1,620 |
Available-for-sale securities, fair value | 13,146 | 11,806 |
Available-for-sale securities, less than twelve months, aggregate losses | (23) | (346) |
Available-for-sale securities, twelve months or longer, aggregate losses | (241) | (57) |
Available-for-sale securities, aggregate losses | (264) | (403) |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 4,638 | 9,281 |
Available-for-sale securities, twelve months or longer, fair value | 8,027 | 1,620 |
Available-for-sale securities, fair value | 12,665 | 10,901 |
Available-for-sale securities, less than twelve months, aggregate losses | (23) | (279) |
Available-for-sale securities, twelve months or longer, aggregate losses | (224) | (57) |
Available-for-sale securities, aggregate losses | (247) | (336) |
Agency Debentures [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 0 | 454 |
Available-for-sale securities, twelve months or longer, fair value | 283 | 0 |
Available-for-sale securities, fair value | 283 | 454 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | (21) |
Available-for-sale securities, twelve months or longer, aggregate losses | (12) | 0 |
Available-for-sale securities, aggregate losses | (12) | (21) |
U.S. Treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 0 | 407 |
Available-for-sale securities, twelve months or longer, fair value | 147 | |
Available-for-sale securities, fair value | 147 | 407 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | (45) |
Available-for-sale securities, twelve months or longer, aggregate losses | (4) | |
Available-for-sale securities, aggregate losses | (4) | (45) |
Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 9 | 24 |
Available-for-sale securities, twelve months or longer, fair value | 24 | 0 |
Available-for-sale securities, fair value | 33 | 24 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | (1) |
Available-for-sale securities, twelve months or longer, aggregate losses | (1) | 0 |
Available-for-sale securities, aggregate losses | (1) | (1) |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 0 | 13 |
Available-for-sale securities, twelve months or longer, fair value | 11 | 0 |
Available-for-sale securities, fair value | 11 | 13 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | 0 |
Available-for-sale securities, aggregate losses | 0 | 0 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, less than twelve months, fair value | 7 | 7 |
Available-for-sale securities, twelve months or longer, fair value | 0 | |
Available-for-sale securities, fair value | 7 | 7 |
Available-for-sale securities, less than twelve months, aggregate losses | 0 | 0 |
Available-for-sale securities, twelve months or longer, aggregate losses | 0 | |
Available-for-sale securities, aggregate losses | $ 0 | $ 0 |
Held-to-maturity Securities (66
Held-to-maturity Securities (Details - OTTI) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | $ 10,952 | $ 7,686 |
Held-to-maturity securities, twelve months or longer, fair value | 6,260 | 1,290 |
Held-to-maturity securities, fair value | 17,212 | 8,976 |
Held-to-maturity securities, less than twelve months, aggregate losses | (83) | (155) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (147) | (29) |
Held-to-maturity securities, aggregate losses | (230) | (184) |
Agency Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 9,982 | 5,929 |
Held-to-maturity securities, twelve months or longer, fair value | 4,906 | 1,272 |
Held-to-maturity securities, fair value | 14,888 | 7,201 |
Held-to-maturity securities, less than twelve months, aggregate losses | (78) | (123) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (115) | (29) |
Held-to-maturity securities, aggregate losses | (193) | (152) |
Agency Debentures [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 597 | 18 |
Held-to-maturity securities, twelve months or longer, fair value | 9 | |
Held-to-maturity securities, fair value | 606 | 18 |
Held-to-maturity securities, less than twelve months, aggregate losses | (2) | 0 |
Held-to-maturity securities, twelve months or longer, aggregate losses | 0 | |
Held-to-maturity securities, aggregate losses | (2) | 0 |
Agency Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity securities, less than twelve months, fair value | 373 | 1,739 |
Held-to-maturity securities, twelve months or longer, fair value | 1,345 | 18 |
Held-to-maturity securities, fair value | 1,718 | 1,757 |
Held-to-maturity securities, less than twelve months, aggregate losses | (3) | (32) |
Held-to-maturity securities, twelve months or longer, aggregate losses | (32) | 0 |
Held-to-maturity securities, aggregate losses | $ (35) | $ (32) |
Available-for-Sale and Held-t67
Available-for-Sale and Held-to-Maturity Securities (Details - Other) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net impairment | $ 0 | $ 0 | $ 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | 136 | 136 | 152 |
Components of gains (losses) on securities and other, net | |||
Reclassification of deferred losses on cash flow hedges | 0 | 0 | 370 |
Gains on available-for-sale securities | 40 | 54 | 58 |
Losses on available-for-sale securities | 0 | 1 | 20 |
Subtotal | 40 | 53 | 38 |
Hedge ineffectiveness | (14) | (6) | (1) |
Equity method investment income (loss) and other | 2 | (5) | 9 |
Gains (losses) on securities and other, net | $ 28 | $ 42 | $ (324) |
Loans Receivable, Net (Details
Loans Receivable, Net (Details - Aging) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Current | $ 2,468 | $ 3,461 | |||
Total loans receivable | 2,717 | 3,756 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11 | 16 | |||
Loans and Leases Receivable, Allowance | (74) | (221) | $ (353) | $ (404) | |
Total loans receivable, net | 2,654 | 3,551 | |||
Loans Receivable, Net [Abstract] | |||||
Carrying value of mortgage loans sold | $ 41 | ||||
Carrying value of loans transferred to held-for-sale | 17 | ||||
Loans Pledged Federal Home Loan Bank | 2,200 | 3,100 | |||
Loans Pledged Federal Reserve Bank | 200 | 300 | |||
Financing Receivables, 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 98 | 114 | |||
Financing Receivables, 90 To 179 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 37 | 42 | |||
Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 114 | 139 | |||
One- To Four-Family [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Current | 1,269 | 1,774 | |||
Total loans receivable | 1,432 | 1,950 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 9 | 13 | |||
Loans and Leases Receivable, Allowance | (24) | (45) | (40) | (27) | |
Total loans receivable, net | 1,417 | 1,918 | |||
One- To Four-Family [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 59 | 67 | |||
One- To Four-Family [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 22 | 23 | |||
One- To Four-Family [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 82 | 86 | |||
Home Equity [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Current | 1,014 | 1,442 | |||
Total loans receivable | 1,097 | 1,556 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 0 | 0 | |||
Loans and Leases Receivable, Allowance | (46) | (171) | (307) | (367) | |
Total loans receivable, net | 1,051 | 1,385 | |||
Home Equity [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 36 | 43 | |||
Home Equity [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 15 | 18 | |||
Home Equity [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 32 | 53 | |||
Consumer and other [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Current | 185 | 245 | |||
Total loans receivable | 188 | 250 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 2 | 3 | |||
Loans and Leases Receivable, Allowance | (4) | (5) | $ (6) | $ (10) | |
Total loans receivable, net | 186 | 248 | |||
Consumer and other [Member] | Financing Receivables, 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 3 | 4 | |||
Consumer and other [Member] | Financing Receivables, 90 To 179 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | 1 | |||
Consumer and other [Member] | Financing Receivables, Equal to Greater than 180 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 |
Loans Receivable, Net (Detail69
Loans Receivable, Net (Details - Credit Quality) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Quality Indicators [Line Items] | ||
Average Age, Financing Receivable | 11 years 9 months 18 days | 10 years 9 months 29 days |
Greater Than 10% of Loans, States Other than California, Count | 0 | 0 |
One- To Four-Family [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,432 | $ 1,950 |
Average estimated current LTV/CLTV | 70.00% | 73.00% |
Average LTV/CLTV at loan origination | 71.00% | 71.00% |
One- To Four-Family [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 805 | $ 1,121 |
One- To Four-Family [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 138 | 179 |
One- To Four-Family [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 105 | 153 |
One- To Four-Family [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 78 | 121 |
One- To Four-Family [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 122 | 154 |
One- To Four-Family [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 184 | 222 |
One- To Four-Family [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 1,031 | 1,308 |
One- To Four-Family [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 256 | 413 |
One- To Four-Family [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 91 | 143 |
One- To Four-Family [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 54 | 86 |
Home Equity [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 1,097 | $ 1,556 |
Average estimated current LTV/CLTV | 84.00% | 87.00% |
Average LTV/CLTV at loan origination | 81.00% | 81.00% |
Home Equity [Member] | FICO Score, Greater than 720 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 548 | $ 778 |
Home Equity [Member] | FICO Score, 719 to 700 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 106 | 156 |
Home Equity [Member] | FICO Score, 699 to 680 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 93 | 141 |
Home Equity [Member] | FICO Score, 679 to 660 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 79 | 117 |
Home Equity [Member] | FICO Score, 659 to 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 103 | 149 |
Home Equity [Member] | FICO Score, Less than 620 [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 168 | 215 |
Home Equity [Member] | LTV Less than 80 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 531 | 686 |
Home Equity [Member] | LTV 80 to 100 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 291 | 414 |
Home Equity [Member] | LTV 100 to 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | 176 | 274 |
Home Equity [Member] | LTV Greater than 120 Percent [Member] | ||
Credit Quality Indicators [Line Items] | ||
Total mortgage loans receivable | $ 99 | $ 182 |
One- To Four-Family and Home Equity Benchmark [Member] | Financing Receivables, State, Risk [Member] | CALIFORNIA | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 34.00% | 36.00% |
Home Equity Line of Credit Benchmark [Member] | Interest only, Already Amortizing | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 100.00% | |
One- To Four-Family Benchmark [Member] | Interest only, Already Amortizing | Maximum [Member] | ||
Credit Quality Indicators [Line Items] | ||
Concentration Risk, Percentage | 100.00% |
Loans Receivable, Net (Detail70
Loans Receivable, Net (Details - Nonperforming Loans) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | ||
Real Estate Acquired Through Foreclosure | $ 26 | $ 35 |
Mortgage Loans in Process of Foreclosure, Amount | 101 | 112 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 290 | 352 |
Nonperforming Financial Instruments [Member] | One- To Four-Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 192 | 215 |
Nonperforming Financial Instruments [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 98 | 136 |
Nonperforming Financial Instruments [Member] | Consumer and other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 0 | $ 1 |
Loans Receivable, Net (Detail71
Loans Receivable, Net (Details - Allowance Qualitative and Quantitative Components) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||||
Quantitative component | $ 33 | $ 157 | ||
Qualitative component | 6 | 6 | ||
Specific valuation allowance | 35 | 58 | ||
Total allowance for loan losses | $ 74 | $ 221 | $ 353 | $ 404 |
Allowance as a % of loans receivable(1) | 2.70% | 5.80% | ||
One- To Four-Family [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Quantitative component | $ 15 | $ 34 | ||
Qualitative component | 3 | 4 | ||
Specific valuation allowance | 6 | 7 | ||
Total allowance for loan losses | $ 24 | $ 45 | 40 | 27 |
Allowance as a % of loans receivable(1) | 1.60% | 2.30% | ||
Home Equity [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Quantitative component | $ 14 | $ 118 | ||
Qualitative component | 3 | 2 | ||
Specific valuation allowance | 29 | 51 | ||
Total allowance for loan losses | $ 46 | $ 171 | 307 | 367 |
Allowance as a % of loans receivable(1) | 4.20% | 11.00% | ||
Consumer and other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Quantitative component | $ 4 | $ 5 | ||
Qualitative component | 0 | 0 | ||
Specific valuation allowance | 0 | 0 | ||
Total allowance for loan losses | $ 4 | $ 5 | $ 6 | $ 10 |
Allowance as a % of loans receivable(1) | 2.10% | 1.90% |
Loans Receivable, Net (Detail72
Loans Receivable, Net (Details - Allowance) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Allowance for loan losses, beginning of period | $ 221 | $ 353 | $ 404 | |
Provision (benefit) for loan losses | $ (99) | (168) | (149) | (40) |
Charge-offs | (13) | (25) | (44) | |
Recoveries | 34 | 42 | 33 | |
Net (charge-offs) recoveries | 21 | 17 | (11) | |
Allowance for loan losses, end of period | 74 | 221 | 353 | |
Provision (benefit) for loan losses | $ (99) | $ (168) | $ (149) | (40) |
Allowance as a percentage of total loans receivable | 2.70% | 5.80% | ||
Provision benefit for loan losses due to model refinement | $ 70 | |||
Minimum [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Percentage of converted loans amortizing 12 months or longer | 50.00% | |||
One- To Four-Family [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Allowance for loan losses, beginning of period | 45 | $ 40 | 27 | |
Provision (benefit) for loan losses | (29) | (2) | 15 | |
Charge-offs | 0 | (1) | (2) | |
Recoveries | 8 | 8 | 0 | |
Net (charge-offs) recoveries | 8 | 7 | (2) | |
Allowance for loan losses, end of period | 24 | 45 | 40 | |
Provision (benefit) for loan losses | $ (29) | $ (2) | 15 | |
Allowance as a percentage of total loans receivable | 1.60% | 2.30% | ||
Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Allowance for loan losses, beginning of period | $ 171 | $ 307 | 367 | |
Provision (benefit) for loan losses | (141) | (148) | (55) | |
Charge-offs | (7) | (17) | (31) | |
Recoveries | 23 | 29 | 26 | |
Net (charge-offs) recoveries | 16 | 12 | (5) | |
Allowance for loan losses, end of period | 46 | 171 | 307 | |
Provision (benefit) for loan losses | $ (141) | $ (148) | (55) | |
Allowance as a percentage of total loans receivable | 4.20% | 11.00% | ||
Consumer and other [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Allowance for loan losses, beginning of period | $ 5 | $ 6 | 10 | |
Provision (benefit) for loan losses | 2 | 1 | 0 | |
Charge-offs | (6) | (7) | (11) | |
Recoveries | 3 | 5 | 7 | |
Net (charge-offs) recoveries | (3) | (2) | (4) | |
Allowance for loan losses, end of period | 4 | 5 | 6 | |
Provision (benefit) for loan losses | $ 2 | $ 1 | $ 0 | |
Allowance as a percentage of total loans receivable | 2.10% | 1.90% | ||
Held-for-investment [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Increase (Decrease) in Finance Receivables | $ (900) |
Loans Receivable, Net (Detail73
Loans Receivable, Net (Details - Allowance Evaluation for Impairment) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | $ 2,350 | $ 3,331 | ||
Loans individually evaluated for impairment, recorded investment | 378 | 441 | ||
Total recorded investment in loans receivable | 2,728 | 3,772 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 39 | 163 | ||
Loans individually evaluated for impairment, allowance for loan losses | 35 | 58 | ||
Allowance for loan losses | 74 | 221 | $ 353 | $ 404 |
One- To Four-Family [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 1,228 | 1,717 | ||
Loans individually evaluated for impairment, recorded investment | 213 | 246 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 18 | 38 | ||
Loans individually evaluated for impairment, allowance for loan losses | 6 | 7 | ||
Allowance for loan losses | 24 | 45 | 40 | 27 |
Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 932 | 1,361 | ||
Loans individually evaluated for impairment, recorded investment | 165 | 195 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 17 | 120 | ||
Loans individually evaluated for impairment, allowance for loan losses | 29 | 51 | ||
Allowance for loan losses | 46 | 171 | 307 | 367 |
Consumer and other [Member] | ||||
Financing Receivable, Allowance for Credit Losses, Additional Information [Line Items] | ||||
Loans collectively evaluated for impairment, recorded investment | 190 | 253 | ||
Loans collectively evaluated for impairment, allowance for loan losses | 4 | 5 | ||
Allowance for loan losses | $ 4 | $ 5 | $ 6 | $ 10 |
Loans Receivable, Net (Detail74
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | $ 378 | $ 441 |
Financing Receivable, Troubled Debt Restructurings, Modifications, Total1 | 285 | 316 |
Financing Receivable, Troubled Debt Restructurings, Bankruptcy Notifications | 93 | 125 |
Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 187 | 216 |
Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 108 | 131 |
Nonaccrual TDRs, 30-89 Days Delinquent | 23 | 26 |
Nonaccrual TDRs, 90-179 Days Delinquent | 9 | 12 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 51 | 56 |
One- To Four-Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 213 | 246 |
Charge offs included in recorded investment modified as TDRs | 67 | 79 |
One- To Four-Family [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 83 | 97 |
One- To Four-Family [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 74 | 90 |
Nonaccrual TDRs, 30-89 Days Delinquent | 13 | 16 |
Nonaccrual TDRs, 90-179 Days Delinquent | 5 | 8 |
Nonaccrual TDRs, 180 Plus Days Delinquent | 38 | 35 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment in TDRs | 165 | 195 |
Charge offs included in recorded investment modified as TDRs | 144 | 178 |
Home Equity [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Accrual TDRs | 104 | 119 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual TDRs, Current | 34 | 41 |
Nonaccrual TDRs, 30-89 Days Delinquent | 10 | 10 |
Nonaccrual TDRs, 90-179 Days Delinquent | 4 | 4 |
Nonaccrual TDRs, 180 Plus Days Delinquent | $ 13 | $ 21 |
Loans Receivable, Net (Detail75
Loans Receivable, Net (Details - TDRs Average Investment and Income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | $ 400 | $ 473 | $ 516 |
TDRs, Interest Income Recognized | 25 | 28 | 26 |
One- To Four-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 221 | 269 | 303 |
TDRs, Interest Income Recognized | 9 | 11 | 9 |
Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
TDRs, Average Recorded Investment | 179 | 204 | 213 |
TDRs, Interest Income Recognized | $ 16 | $ 17 | $ 17 |
Loans Receivable, Net (Detail76
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Recorded Investment in TDRs | $ 378 | $ 441 |
Specific valuation allowance | 35 | 58 |
One- To Four-Family [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 54 | 61 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 159 | 185 |
Recorded Investment in TDRs | 213 | 246 |
Specific valuation allowance | 6 | 7 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 48 | 54 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 159 | 185 |
Impaired Financing Receivables, Net Investment, Total | 207 | 239 |
Home Equity [Member] | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ||
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 83 | 111 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 82 | 84 |
Recorded Investment in TDRs | 165 | 195 |
Specific valuation allowance | 29 | 51 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 54 | 60 |
Impaired Financing Receivable, with No Related Allowance, Net Investment | 82 | 84 |
Impaired Financing Receivables, Net Investment, Total | $ 136 | $ 144 |
Loans Receivable, Net (Detail77
Loans Receivable, Net (Details - Modifications Types and Financial Impact) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 334 | 565 | 401 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 40 | $ 54 | $ 37 |
Principal Forgiveness [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 1 | 0 |
Payment Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 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 | 25 | 16 | 12 |
Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 2 | 5 | 2 |
Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 13 | $ 32 | $ 22 |
One- To Four-Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 40 | 47 | 34 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 18 | $ 18 | $ 13 |
One- To Four-Family [Member] | Principal Forgiveness [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 1 | 0 |
One- To Four-Family [Member] | Payment Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 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 | 13 | 8 | 9 |
One- To Four-Family [Member] | Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 2 | 0 |
One- To Four-Family [Member] | Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 4 | $ 7 | $ 3 |
Home Equity [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | loan | 294 | 518 | 367 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 22 | $ 36 | $ 24 |
Home Equity [Member] | Principal Forgiveness [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 0 | 0 |
Home Equity [Member] | Payment Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 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 | 12 | 8 | 3 |
Home Equity [Member] | Other with Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1 | 3 | 2 |
Home Equity [Member] | Other without Interest Rate Reduction [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 9 | $ 25 | $ 19 |
Derivative Instruments and He78
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Details - Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Reclassification of deferred losses on cash flow hedges | $ 0 | $ 0 | $ 370 |
Collateral Already Posted, Aggregate Fair Value | 23 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 5 | ||
Excess Collateral Derivatives In Net Liability Position | $ 18 | ||
Legacy wholesale funding obligations [Member] | |||
Line of Credit Facility [Line Items] | |||
Termination of legacy wholesale funding obligations | 4,400 | ||
Reclassification of deferred losses on cash flow hedges | $ 370 |
Derivative Instruments and He79
Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative, Collateral [Abstract] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 6 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 18 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 8,609 | $ 3,862 |
Derivative Asset | 131 | 165 |
Derivative Liability | (14) | (31) |
Derivative Asset (Liability), Net | 117 | 134 |
Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 8,609 | 3,862 |
Derivative Asset | 131 | 165 |
Derivative Liability | (14) | (31) |
Derivative Asset (Liability), Net | $ 117 | $ 134 |
Derivative Instruments and He80
Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | $ 37 | $ 70 | $ (7) |
Fair Value Hedge, Hedged Item | (51) | (76) | 6 |
Fair Value Hedge, Hedge Ineffectiveness | (14) | (6) | (1) |
Agency Debentures [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | 1 | 28 | (3) |
Fair Value Hedge, Hedged Item | (3) | (32) | 3 |
Fair Value Hedge, Hedge Ineffectiveness | (2) | (4) | 0 |
Agency mortgage-backed securities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair Value Hedge, Hedging Instrument | 36 | 42 | (4) |
Fair Value Hedge, Hedged Item | (48) | (44) | 3 |
Fair Value Hedge, Hedge Ineffectiveness | $ (12) | $ (2) | $ (1) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Gross Amount | $ 777 | $ 830 | |
Accumulated Depreciation and Amortization | (524) | (591) | |
Net Amount | 253 | 239 | |
Depreciation and amortization excluding intangible amortization | 82 | 79 | $ 81 |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
Minimum Lease Payments, Sale Leaseback Transactions, Next Twelve Months | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Two Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Three Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Four Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, within Five Years | 5 | ||
Minimum Lease Payments, Sale Leaseback Transactions, Thereafter | 9 | ||
Minimum Lease Payments, Sale Leaseback Transactions | 34 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Next Twelve Months | (3) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Two Years | (3) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Three Years | (3) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Four Years | (3) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, within Five Years | (3) | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Thereafter | 0 | ||
Future Minimum Sublease Rentals, Sale Leaseback Transactions | (15) | ||
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 403 | 449 | |
Accumulated Depreciation and Amortization | (289) | (355) | |
Net Amount | 114 | 94 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 122 | 119 | |
Accumulated Depreciation and Amortization | (98) | (97) | |
Net Amount | 24 | 22 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 132 | 133 | |
Accumulated Depreciation and Amortization | (101) | (92) | |
Net Amount | 31 | 41 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 72 | 72 | |
Accumulated Depreciation and Amortization | (32) | (30) | |
Net Amount | 40 | 42 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 7 | 19 | |
Accumulated Depreciation and Amortization | (4) | (17) | |
Net Amount | 3 | 2 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 3 | 3 | |
Accumulated Depreciation and Amortization | 0 | 0 | |
Net Amount | 3 | 3 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross Amount | 38 | 35 | |
Accumulated Depreciation and Amortization | 0 | 0 | |
Net Amount | 38 | 35 | |
Capitalized software, balance | 22 | 22 | |
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized internally developed software costs | 53 | 46 | 42 |
Depreciation and amortization excluding intangible amortization | $ 36 | $ 36 | $ 41 |
Goodwill and Other Intangible82
Goodwill and Other Intangibles, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill acquired during period | $ 578 | ||
Impairment of goodwill | $ 0 | 0 | $ 0 |
Goodwill | 2,370 | 2,370 | |
Accumulated impairment loss | 243 | 243 | |
Other intangible assets | 284 | 320 | |
Identifiable intangible assets acquired | 169 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 604 | 604 | |
Accumulated Amortization | (320) | (284) | |
Finite-Lived Intangible Assets, Net | 284 | 320 | |
Customer relationships | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Other intangible assets | $ 244 | $ 272 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Original Useful Life | 18 years | 18 years | |
Weighted Average Remaining Useful Life | 10 years | 11 years | |
Gross Amount | $ 553 | $ 553 | |
Accumulated Amortization | (309) | (281) | |
Finite-Lived Intangible Assets, Net | 244 | 272 | |
Technology | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Other intangible assets | $ 39 | $ 46 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Original Useful Life | 7 years | 7 years | |
Weighted Average Remaining Useful Life | 6 years | 7 years | |
Gross Amount | $ 48 | $ 48 | |
Accumulated Amortization | (9) | (2) | |
Finite-Lived Intangible Assets, Net | 39 | 46 | |
Trade name | |||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Other intangible assets | $ 1 | $ 2 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Original Useful Life | 2 years | 2 years | |
Weighted Average Remaining Useful Life | 1 year | 2 years | |
Gross Amount | $ 3 | $ 3 | |
Accumulated Amortization | (2) | (1) | |
Finite-Lived Intangible Assets, Net | $ 1 | $ 2 |
Goodwill and Other Intangible83
Goodwill and Other Intangibles, Net (Details - Future Amortization of Other Intangible, Net) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 40 | |
2,019 | 39 | |
2,020 | 37 | |
2,021 | 35 | |
2,022 | 33 | |
Thereafter | 100 | |
Finite-Lived Intangible Assets, Net | $ 284 | $ 320 |
Receivables from and Payables84
Receivables from and Payables to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables from Brokers-Dealers and Clearing Organizations [Abstract] | ||
Securities Borrowed | $ 740 | $ 774 |
Receivables from Clearing Organizations | 376 | 231 |
Other | 62 | 51 |
Receivables from brokers, dealers and clearing organizations | 1,178 | 1,056 |
Payables to Broker-Dealers and Clearing Organizations [Abstract] | ||
Securities Loaned | 1,373 | 926 |
Payables to Clearing Organizations | 123 | 7 |
Other | 46 | 50 |
Payables to brokers, dealers and clearing organizations | $ 1,542 | $ 983 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits By Type [Abstract] | ||
Sweep deposits | $ 37,734 | $ 26,362 |
Savings deposits | 2,912 | 3,185 |
Other deposits(1) | 2,096 | 2,135 |
Total deposits | $ 42,742 | $ 31,682 |
Deposits, Weighted Average Rates [Abstract] | ||
Sweep deposits, weighted-average rate | 0.01% | 0.01% |
Savings deposits, weighted-average rate | 0.01% | 0.01% |
Other deposits, weighted-average rate | 0.03% | 0.03% |
Total deposits, weighted-average rate | 0.01% | 0.01% |
Deposits Textuals [Abstract] | ||
Non-interest-bearing deposits | $ 207 | $ 177 |
Other Borrowings (Details)
Other Borrowings (Details) $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||
FHLB advances | $ 500 | $ 0 |
Trust preferred securities | 410 | 409 |
Total other borrowings | 910 | $ 409 |
E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,100 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Revolving Credit Facility [Member] | Revolving credit facility maturing June 2018 [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 450 | |
Secured Committed Line of Credit [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit. Number of Creditors | 2 | |
Secured Committed Line of Credit [Member] | Line Of Credit Maturing June 2018 [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175 | |
Unsecured Uncommitted Line of Credit [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Lines of Credit. Number of Creditors | 3 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 125 | |
Unsecured Uncommitted Line of Credit [Member] | Line Of Credit Maturing June 2018 [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 50 | |
Secured Uncommitted Line of Credit [Member] | E TRADE Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 375 |
Other Borrowings Other Borrowin
Other Borrowings Other Borrowings (Details - Trusts) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
ETBH Capital Trust I | |
Debt Instrument [Line Items] | |
Face Value | $ 20 |
Maturity Date | 2,031 |
Annual Interest Rate | 3.75% above 6-month LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 3.75% |
ETBH Capital Trust V, VI, VIII | |
Debt Instrument [Line Items] | |
Face Value | $ 51 |
Maturity Date | 2,032 |
Annual Interest Rate | 3.25%-3.65% above 3-month LIBOR |
ETBH Capital Trust V, VI, VIII | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.65% |
ETBH Capital Trust V, VI, VIII | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.25% |
ETBH Capital Trust VII, IX—XII | |
Debt Instrument [Line Items] | |
Face Value | $ 65 |
Maturity Date | 2,033 |
Annual Interest Rate | 3.00%-3.30% above 3-month LIBOR |
ETBH Capital Trust VII, IX—XII | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.30% |
ETBH Capital Trust VII, IX—XII | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3.00% |
ETBH Capital Trust XIII—XVIII, XX | |
Debt Instrument [Line Items] | |
Face Value | $ 77 |
Maturity Date | 2,034 |
Annual Interest Rate | 2.45%-2.90% above 3-month LIBOR |
ETBH Capital Trust XIII—XVIII, XX | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.90% |
ETBH Capital Trust XIII—XVIII, XX | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.45% |
ETBH Capital Trust XIX, XXI, XXII | |
Debt Instrument [Line Items] | |
Face Value | $ 60 |
Maturity Date | 2,035 |
Annual Interest Rate | 2.20%-2.40% above 3-month LIBOR |
ETBH Capital Trust XIX, XXI, XXII | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.40% |
ETBH Capital Trust XIX, XXI, XXII | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.20% |
ETBH Capital Trust XXIII—XXIV | |
Debt Instrument [Line Items] | |
Face Value | $ 45 |
Maturity Date | 2,036 |
Annual Interest Rate | 2.10% above 3-month LIBOR |
Debt Instrument, Basis Spread on Variable Rate | 2.10% |
ETBH Capital Trust XXV—XXX | |
Debt Instrument [Line Items] | |
Face Value | $ 96 |
Maturity Date | 2,037 |
Annual Interest Rate | 1.90%-2.00% above 3-month LIBOR |
ETBH Capital Trust XXV—XXX | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
ETBH Capital Trust XXV—XXX | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.90% |
Total | |
Debt Instrument [Line Items] | |
Face Value | $ 414 |
Corporate Debt (Details)
Corporate Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure (Textuals) [Abstract] | ||||
Issuance of debt | $ 1,000 | |||
Gains (losses) on early extinguishment of debt | $ (58) | (58) | $ 0 | $ (112) |
Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | 1,000 | 1,003 | ||
Unamortized discount | (9) | (9) | ||
Total corporate debt | 991 | 994 | ||
Debt Disclosure (Textuals) [Abstract] | ||||
Gains (losses) on early extinguishment of debt | $ 58 | (73) | ||
Interest Bearing Total [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | 1,000 | |||
Unamortized discount | (9) | |||
Total corporate debt | 991 | |||
Senior Notes Interest Bearing Two And Nine Five Percent [Member] | ||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument, exact maturity date | Aug. 24, 2022 | |||
Debt Disclosure (Textuals) [Abstract] | ||||
Issuance of debt | $ 600 | |||
Senior Notes Interest Bearing Two And Nine Five Percent [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | 600 | |||
Unamortized discount | (5) | |||
Total corporate debt | $ 595 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument maturity year | 2,022 | |||
Debt instrument, interest rate, stated percentage | 2.95% | |||
Senior Notes Interest Bearing Three And Eight Percent [Member] | ||||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument, exact maturity date | Aug. 24, 2027 | |||
Debt Disclosure (Textuals) [Abstract] | ||||
Issuance of debt | $ 400 | |||
Senior Notes Interest Bearing Three And Eight Percent [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | 400 | |||
Unamortized discount | (4) | |||
Total corporate debt | $ 396 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument maturity year | 2,027 | |||
Debt instrument, interest rate, stated percentage | 3.80% | |||
Senior Notes Interest Bearing Five And Three Seven Five Percent [Member] | ||||
Debt Disclosure (Textuals) [Abstract] | ||||
Redemption of Senior Note | $ 540 | |||
Senior Notes Interest Bearing Five And Three Seven Five Percent [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | 540 | |||
Unamortized discount | (5) | |||
Total corporate debt | $ 535 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument maturity year | 2,022 | |||
Debt instrument, interest rate, stated percentage | 5.375% | |||
Senior Notes Interest Bearing Four And Six Two Five Percent [Member] | ||||
Debt Disclosure (Textuals) [Abstract] | ||||
Issuance of debt | $ 460 | |||
Redemption of Senior Note | 460 | |||
Senior Notes Interest Bearing Four And Six Two Five Percent [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | $ 460 | |||
Unamortized discount | (4) | |||
Total corporate debt | $ 456 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument maturity year | 2,023 | |||
Debt instrument, interest rate, stated percentage | 4.625% | |||
Noninterest Bearing Convertible Debentures [Member] | Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Face Value | $ 3 | |||
Unamortized discount | 0 | |||
Total corporate debt | $ 3 | |||
Debt Instrument Interest Rate Stated Percentage [Abstract] | ||||
Debt instrument maturity year | 2,019 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 300 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||
Line of Credit Facility, Expiration Date | Jun. 23, 2020 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax expense (benefit): | |||||
Federal | $ 0 | $ 0 | $ (5) | ||
State | (11) | 3 | (5) | ||
Foreign | 0 | 2 | 5 | ||
Total current | (11) | 5 | (5) | ||
Deferred income tax expense (benefit): | |||||
Federal | 399 | 285 | (145) | ||
State | 51 | (10) | (31) | ||
Total deferred | 450 | 275 | (176) | ||
Non-current tax expense (benefit) | 11 | 6 | 4 | ||
Income tax expense (benefit) | $ 450 | 286 | (177) | ||
Federal statutory tax rate related to federal tax reform law | 21.00% | ||||
Additional tax expense related to the federal tax reform law | $ 58 | $ 58 | |||
Unrecognized Tax Benefits | $ 25 | $ 25 | $ 28 | $ 29 | $ 330 |
Income Taxes (Details - Unrecog
Income Taxes (Details - Unrecognized Tax Benefits) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 | |
Unrecognized tax benefit table [Abstract] | ||||
Unrecognized tax benefits | $ 28 | $ 29 | $ 330 | |
Additions based on tax positions related to prior years | 1 | 1 | 5 | |
Additions based on tax positions related to current year | 11 | 4 | 2 | |
Reductions based on tax positions related to prior years | (3) | (3) | (304) | |
Settlements with taxing authorities | (6) | (1) | (3) | |
Statute of limitations lapses | (6) | (2) | (1) | |
Unrecognized tax benefits | 25 | 28 | 29 | |
Unrecognized Tax Benefits Text [Line Items] | ||||
Unrecognized Tax Benefits, Period Increase (Decrease) | 3 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 20 | |||
Debt Conversion, Original Debt, Amount | $ 1,700 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 6 | |||
Income Tax Examination, Penalties and Interest Accrued | 6 | $ 10 | ||
Reduction of accrued interest and penalties | $ 4 | |||
Tax Years 2007, 2009 and 2010 | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ (303) | |||
HONG KONG | Earliest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,011 | |||
HONG KONG | Latest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,017 | |||
UNITED KINGDOM | Earliest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,015 | |||
UNITED KINGDOM | Latest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,017 | |||
UNITED STATES | Earliest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,014 | |||
UNITED STATES | Latest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,017 | |||
Various States | Earliest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,008 | |||
Various States | Latest Tax Year | ||||
Unrecognized Tax Benefits Text [Line Items] | ||||
Open Tax Year | 2,017 |
Income Taxes (Details - Deferre
Income Taxes (Details - Deferred Taxes and Valuation Allowance) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Taxes and Valuation Allowance Text [Line Items] | ||||
Deferred tax asset related to net operating losses | $ 349 | $ 676 | ||
Undistributed earnings of foreign subsidiaries | 0 | |||
Valuation allowance | (23) | (35) | $ (82) | $ (91) |
Valuation allowance, deferred tax asset, increase (decrease), amount | (12) | (47) | ||
Income tax expense (benefit) due to change in tax status | 25 | |||
Deferred tax assets: | ||||
Deferred tax asset related to net operating losses | 349 | 676 | ||
Reserves and allowances, net | 155 | 335 | ||
Mark to market | 35 | 160 | ||
Deferred compensation | 34 | 43 | ||
Tax credits | 68 | 55 | ||
Basis differences in investments | 8 | 14 | ||
Other | 10 | 26 | ||
Total deferred tax assets | 659 | 1,309 | ||
Valuation allowance | (23) | (35) | $ (82) | $ (91) |
Total deferred tax assets, net of valuation allowance | 636 | 1,274 | ||
Deferred tax liabilities: | ||||
Depreciation and amortization | (385) | (518) | ||
Total deferred tax liabilities | (385) | (518) | ||
Net deferred tax asset | 251 | $ 756 | ||
Federal Jurisdiction [Member] | ||||
Deferred Taxes and Valuation Allowance Text [Line Items] | ||||
Operating Loss Carryforwards | 1,000 | |||
Deferred tax asset related to net operating losses | 211 | |||
Valuation allowance recorded against net operating losses | 0 | |||
Deferred tax assets: | ||||
Deferred tax asset related to net operating losses | 211 | |||
State and Local Jurisdiction | ||||
Deferred Taxes and Valuation Allowance Text [Line Items] | ||||
Operating Loss Carryforwards | 2,800 | |||
Deferred tax asset related to net operating losses | 135 | |||
Valuation allowance recorded against net operating losses | 20 | |||
Deferred tax assets: | ||||
Deferred tax asset related to net operating losses | $ 135 | |||
Earliest Tax Year | State and Local Jurisdiction | ||||
Deferred Taxes and Valuation Allowance Text [Line Items] | ||||
Operating loss carryforwards, expiration date | Jan. 1, 2018 | |||
Latest Tax Year | State and Local Jurisdiction | ||||
Deferred Taxes and Valuation Allowance Text [Line Items] | ||||
Operating loss carryforwards, expiration date | Dec. 31, 2036 |
Income Taxes Valuation Allowanc
Income Taxes Valuation Allowance Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance, beginning of period | $ (35) | $ (82) | $ (91) |
Additions related to tax reform (reduced federal benefit) | (4) | 0 | 0 |
Reductions related to the wind-down of foreign operations | 14 | 0 | 14 |
Reductions (additions) related to state valuation allowance release | 2 | 47 | (5) |
Valuation allowance, end of period | $ (23) | $ (35) | $ (82) |
Income Taxes (Details - Effecti
Income Taxes (Details - Effective Tax Rate) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 4.20% | 3.90% | 0.20% |
Difference between statutory rate and foreign effective tax rate | 0.00% | 0.20% | (2.40%) |
Tax exempt income | 0.00% | (0.10%) | (0.50%) |
Disallowed executive compensation | 0.10% | 0.20% | 6.50% |
Change in valuation allowances | (0.10%) | (5.50%) | 0.10% |
Effective Income Tax Rate Reconciliation, Percentage Tax Credits | (0.30%) | (0.70%) | (3.80%) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | (0.30%) | 0.10% | 4.70% |
Deferred tax adjustments | (0.30%) | 1.30% | 3.50% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 5.50% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (0.70%) | 0.00% | 0.00% |
Tax on undistributed earnings and profits in certain foreign subsidiaries | 0.00% | 0.00% | 3.90% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | 0.00% | 0.00% | (241.50%) |
Other | (0.90%) | (0.30%) | (0.40%) |
Effective tax rate | 42.20% | 34.10% | (194.70%) |
Shareholders Equity (Details -
Shareholders Equity (Details - Stock) - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2018 | Feb. 08, 2018 | Dec. 06, 2017 | Aug. 02, 2017 | Feb. 02, 2017 | Aug. 25, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 20, 2017 |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares outstanding | 403,000 | 400,000 | ||||||||
Preferred stock, amount outstanding | $ 689 | $ 394 | ||||||||
Preferred stock, shares issued | 403,000 | 400,000 | ||||||||
Proceeds from issuance of preferred stock | $ 300 | $ 400 | $ 0 | |||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||||||
Preferred stock dividend declared | $ 25 | |||||||||
Common Stock | ||||||||||
Share Repurchases | ||||||||||
Repurchases of stock, authorized amount | $ 1,000 | |||||||||
Repurchase of stock, aggregate amount | $ 362 | |||||||||
Repurchase of stock, aggregate shares | 8,500,000 | |||||||||
Repurchases of stock, remaining authorized amount | $ 638 | |||||||||
Repurchases of common stock, shares | 9,000,000 | 19,000,000 | 2,000,000 | |||||||
Common Stock | Subsequent Event [Member] | ||||||||||
Share Repurchases | ||||||||||
Repurchases of common stock, shares | 1,100,000 | |||||||||
Average repurchase price | $ 49.99 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, dividend rate, percentage | 5.875% | |||||||||
Preferred stock, date of change in dividend rate from fixed to floating | Sep. 15, 2026 | |||||||||
Preferred stock, shares outstanding | 400,000 | |||||||||
Preferred stock, liquidation preference per share | $ 1,000 | $ 1,000 | ||||||||
Preferred stock, amount outstanding | $ 394 | $ 394 | $ 394 | |||||||
Preferred stock, shares issued | 400,000 | |||||||||
Proceeds from issuance of preferred stock | $ 400 | |||||||||
Preferred stock, par value | $ 0.01 | |||||||||
Preferred stock dividend declared | $ 12 | $ 13 | ||||||||
Preferred stock holders of record, date of record | Aug. 31, 2017 | Feb. 28, 2017 | ||||||||
Preferred stock dividends, date to be paid | Sep. 15, 2017 | Mar. 15, 2017 | ||||||||
Preferred stock dividend declared, per share | $ 29.38 | $ 32.64 | ||||||||
Series A Preferred Stock [Member] | LIBOR [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, basis spread on variable rate | 4.435% | |||||||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||||||
Preferred stock dividend declared | $ 12 | |||||||||
Preferred stock holders of record, date of record | Feb. 28, 2018 | |||||||||
Preferred stock dividends, date to be paid | Mar. 15, 2018 | |||||||||
Preferred stock dividend declared, per share | $ 29.38 | |||||||||
Series B Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, dividend rate, percentage | 5.30% | |||||||||
Preferred stock, date of change in dividend rate from fixed to floating | Mar. 15, 2023 | |||||||||
Preferred stock, shares outstanding | 3,000 | |||||||||
Preferred stock, liquidation preference per share | $ 100,000 | $ 100,000 | ||||||||
Preferred stock, liquidation preference per depositary share | $ 1,000 | |||||||||
Preferred stock, amount outstanding | $ 295 | $ 295 | $ 0 | |||||||
Preferred stock, depositary shares issued | 300,000 | |||||||||
Proceeds from issuance of preferred stock | $ 300 | |||||||||
Preferred stock, par value | $ 0.01 | |||||||||
Series B Preferred Stock [Member] | LIBOR [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, basis spread on variable rate | 3.16% |
Shareholders' Equity (Details -
Shareholders' Equity (Details - Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | $ (137) | $ (99) | $ (249) |
Other comprehensive income (loss), before reclassifications | 137 | (5) | (97) |
Amounts reclassified from accumulated other comprehensive income (loss) | (26) | (33) | 247 |
Other comprehensive income (loss) | 111 | (38) | 150 |
Ending balance, | (26) | (137) | (99) |
Available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | (139) | (101) | 7 |
Other comprehensive income (loss), before reclassifications | 137 | (5) | (84) |
Amounts reclassified from accumulated other comprehensive income (loss) | (24) | (33) | (24) |
Other comprehensive income (loss) | 113 | (38) | (108) |
Ending balance, | (26) | (139) | (101) |
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | 2 | 2 | 5 |
Other comprehensive income (loss), before reclassifications | 0 | 0 | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | 0 | 0 |
Other comprehensive income (loss) | (2) | 0 | (3) |
Ending balance, | $ 0 | 2 | 2 |
Cash flow hedging instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance, | $ 0 | (261) | |
Other comprehensive income (loss), before reclassifications | (10) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 271 | ||
Other comprehensive income (loss) | 261 | ||
Ending balance, | $ 0 |
Shareholders' Equity (Details96
Shareholders' Equity (Details - Other Comprehensive Income Activity) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale securities, before tax | |||
Unrealized gains (losses), before tax | $ 213 | $ (10) | $ (136) |
Reclassification into earnings, before tax | (39) | (53) | (39) |
Net change from available-for-sale securities, before tax | 174 | (63) | (175) |
Cash flow hedging instruments, before tax | |||
Unrealized gains (losses), before tax | 0 | 0 | (17) |
Reclassification into earnings, before tax | 0 | 0 | 439 |
Net change from cash flow hedging instruments, before tax | 0 | 0 | 422 |
Foreign currency translation, before tax | |||
Unrealized gains (losses), before tax | 0 | 0 | (3) |
Reclassification into earnings, before tax | (2) | 0 | 0 |
Net change from foreign currency translation, before tax | (2) | 0 | (3) |
Available-for-sale securities, tax effect | |||
Unrealized gains (losses), tax effect | (76) | 5 | 52 |
Reclassification into earnings, tax effect | 15 | 20 | 15 |
Net change from available-for-sale securities, tax effect | (61) | 25 | 67 |
Cash flow hedging instruments, tax effect | |||
Unrealized gains (losses), tax effect | 0 | 0 | 7 |
Reclassification into earnings, tax effect | 0 | 0 | (168) |
Net change from cash flow hedging instruments, tax effect | 0 | 0 | (161) |
Foreign currency translation, tax effect | |||
Unrealized gains (losses), tax effect | 0 | 0 | 0 |
Reclassification into earnings, tax effect | 0 | 0 | 0 |
Net change from foreign currency translation, tax effect | 0 | 0 | 0 |
Available-for-sale securities, after tax | |||
Unrealized gains (losses), after tax | 137 | (5) | (84) |
Reclassification into earnings, after tax | (24) | (33) | (24) |
Net change from available-for-sale securities | 113 | (38) | (108) |
Cash flow hedging instruments, after tax | |||
Unrealized losses, net | 0 | 0 | (10) |
Reclassification into earnings, after tax | 0 | 0 | 271 |
Net change from cash flow hedging instruments | 0 | 0 | 261 |
Foreign currency translation, after tax | |||
Unrealized gains (losses), after tax | 0 | 0 | (3) |
Reclassification into earnings, after tax | (2) | 0 | 0 |
Net change from foreign currency translation, after tax | (2) | 0 | (3) |
Other comprehensive income (loss), before tax | 172 | (63) | 244 |
Other comprehensive income (loss), tax effect | (61) | 25 | (94) |
Other comprehensive income (loss) | $ 111 | $ (38) | $ 150 |
Shareholders' Equity (Details97
Shareholders' Equity (Details - Reclassification Out Of Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Gains (losses) on securities and other, net | $ 28 | $ 42 | $ (324) | ||||||||
Interest expense | (86) | (85) | (194) | ||||||||
Income tax (expense) benefit | (450) | (286) | 177 | ||||||||
Pre-tax income (loss) | 1,064 | 838 | 91 | ||||||||
Other Noninterest Expense | (76) | (71) | (82) | ||||||||
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | 614 | 552 | 268 |
Available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income (Loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Gains (losses) on securities and other, net | 39 | 53 | 39 | ||||||||
Income tax (expense) benefit | (15) | (20) | (15) | ||||||||
Net income | 24 | 33 | 24 | ||||||||
Cash flow hedging instruments | Reclassification out of Accumulated Other Comprehensive Income (Loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Gains (losses) on securities and other, net | 0 | 0 | (370) | ||||||||
Interest expense | 0 | 0 | (69) | ||||||||
Income tax (expense) benefit | 0 | 0 | 168 | ||||||||
Pre-tax income (loss) | 0 | 0 | (439) | ||||||||
Net income | 0 | 0 | (271) | ||||||||
Foreign currency translation | Reclassification out of Accumulated Other Comprehensive Income (Loss) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Other Noninterest Expense | 2 | 0 | 0 | ||||||||
Net income | $ 2 | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | $ 614 | $ 552 | $ 268 |
Preferred stock dividends | 25 | 0 | 0 | ||||||||
Net income available to common shareholders | $ 589 | $ 552 | $ 268 | ||||||||
Share data (in thousands): | |||||||||||
Basic weighted-average shares outstanding | 273,190 | 277,789 | 290,762 | ||||||||
Effect of weighted-average dilutive securities: | |||||||||||
Restricted stock and options | 1,076 | 872 | 1,429 | ||||||||
Convertible debentures | 86 | 387 | 2,820 | ||||||||
Diluted weighted-average shares outstanding(1) | 274,352 | 279,048 | 295,011 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.48 | $ 0.49 | $ 0.70 | $ 0.48 | $ 0.46 | $ 0.51 | $ 0.48 | $ 0.54 | $ 2.16 | $ 1.99 | $ 0.92 |
Diluted earnings per common share (in dollars per share) | $ 0.48 | $ 0.49 | $ 0.70 | $ 0.48 | $ 0.46 | $ 0.51 | $ 0.48 | $ 0.53 | $ 2.15 | $ 1.98 | $ 0.91 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Required Net Capital | $ 215,000,000 | $ 159,000,000 | |
Net Capital | 1,251,000,000 | 1,012,000,000 | |
Excess Net Capital | 1,036,000,000 | 853,000,000 | |
E TRADE Securities [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Dividends from subsidiaries paid to parent company | 345,000,000 | ||
Net capital requirement under alternative method | $ 250,000 | ||
Minimum percentage of aggregate debit balances to calculate net capital | 2.00% | ||
Required Net Capital | $ 211,000,000 | 158,000,000 | |
Net Capital | 1,213,000,000 | 969,000,000 | |
Excess Net Capital | 1,002,000,000 | 811,000,000 | |
E TRADE Futures [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Net capital requirement under CFTC regulations | $ 1,000,000 | ||
Minimum percentage of total risk margin requirements to calculate net capital | 8.00% | ||
Required Net Capital | $ 4,000,000 | ||
Net Capital | 19,000,000 | ||
Excess Net Capital | 15,000,000 | ||
OptionsHouse [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Required Net Capital | 1,000,000 | ||
Net Capital | 22,000,000 | ||
Excess Net Capital | 21,000,000 | ||
International broker-dealer [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Required Net Capital | 0 | 0 | |
Net Capital | 19,000,000 | 21,000,000 | |
Excess Net Capital | $ 19,000,000 | $ 21,000,000 | |
Subsequent Event [Member] | E TRADE Securities [Member] | |||
Broker Dealer Subsidiaries Net Capital [Line Items] | |||
Dividends from subsidiaries paid to parent company | $ 125,000,000 |
Regulatory Requirements - Bank
Regulatory Requirements - Bank Capital Requirements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Total risk-based capital [Abstract] | ||
Minimum percentage of Common Equity Tier 1 capital conservation buffer | 2.50% | |
Minimum [Member] | Capital conservation buffer [Member] | ||
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 4.50% | |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | |
Total risk-based capital [Abstract] | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |
Parent Company [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 4,386 | $ 3,610 |
Tier 1 Leverage Capital to Average Assets | 7.40% | 7.80% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 2,976 | $ 2,316 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 1,410 | $ 1,294 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 3,773 | $ 3,483 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 33.90% | 37.00% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 722 | $ 612 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 3,051 | $ 2,871 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 4,386 | $ 3,610 |
Tier One Risk Based Capital to Risk Weighted Assets | 39.50% | 38.30% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 889 | $ 754 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 3,497 | $ 2,856 |
Total risk-based capital [Abstract] | ||
Capital | $ 4,874 | $ 4,148 |
Capital to Risk Weighted Assets | 43.80% | 44.00% |
Capital Required to be Well Capitalized | $ 1,111 | $ 942 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 3,763 | $ 3,206 |
E TRADE Bank [Member] | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 3,620 | $ 3,132 |
Tier 1 Leverage Capital to Average Assets | 7.60% | 8.80% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 2,394 | $ 1,786 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 1,226 | $ 1,346 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 3,620 | $ 3,132 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 35.70% | 38.30% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 660 | $ 532 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 2,960 | $ 2,600 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 3,620 | $ 3,132 |
Tier One Risk Based Capital to Risk Weighted Assets | 35.70% | 38.30% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 812 | $ 655 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 2,808 | $ 2,477 |
Total risk-based capital [Abstract] | ||
Capital | $ 3,694 | $ 3,237 |
Capital to Risk Weighted Assets | 36.40% | 39.50% |
Capital Required to be Well Capitalized | $ 1,015 | $ 819 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 2,679 | $ 2,418 |
E TRADE Savings Bank | ||
Tier I leverage [Abstract] | ||
Tier 1 Leverage Capital | $ 904 | $ 226 |
Tier 1 Leverage Capital to Average Assets | 26.60% | 12.00% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 170 | $ 94 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Excess Tier 1 Leverage Capital | $ 734 | $ 132 |
Common equity Tier I capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 904 | $ 226 |
Common Equity Tier 1 Capital to Risk Weighted Assets | 111.10% | 69.60% |
Common Equity Tier 1 Capital Required To Be Well Capitalized | $ 53 | $ 21 |
Common Equity Tier 1 Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | 6.50% |
Excess Common Equity Tier 1 Capital To Be Well Capitalized | $ 851 | $ 205 |
Tier I risk based capital [Abstract] | ||
Tier One Risk Based Capital | $ 904 | $ 226 |
Tier One Risk Based Capital to Risk Weighted Assets | 111.10% | 69.60% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 65 | $ 26 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Excess Tier One Risk Based Capital to be Well Capitalized | $ 839 | $ 200 |
Total risk-based capital [Abstract] | ||
Capital | $ 905 | $ 227 |
Capital to Risk Weighted Assets | 111.20% | 69.80% |
Capital Required to be Well Capitalized | $ 81 | $ 32 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Excess capital | $ 824 | $ 195 |
Lease Arrangements (Details)
Lease Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lease Arrangements Textuals [Abstract] | |||
Operating Leases, Longest Term, Year | 2,029 | ||
Operating leases, rent expense, net | $ 26 | $ 24 | $ 22 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 27 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 29 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 23 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 21 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 12 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 45 | ||
Operating Leases, Future Minimum Payments Due | 157 | ||
Sublease proceeds | (2) | ||
Net lease commitments | $ 155 |
Commitments, Contingencies a102
Commitments, Contingencies and Other Regulatory Matters (Details) $ / shares in Units, $ in Millions | May 16, 2011 | Dec. 31, 2017USD ($)$ / CapitalSecurity | Dec. 31, 2003USD ($) | Apr. 30, 2013$ / shares |
Loss Contingencies [Line Items] | ||||
Commitments to fund partnerships | $ 99 | |||
Time deposit maturities, next rolling twelve months | $ 21 | |||
Trust preferred securities contractual time period | 30 years | |||
Liquidation amount per trust preferred security | $ / CapitalSecurity | 1,000 | |||
Estimated maximum potential liability trust preferred securities | $ 416 | |||
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 |
Condensed Financial Informat103
Condensed Financial Information Condensed Statement of Comprehensive Income (Loss) (Parent Only) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other revenue | $ 43 | $ 41 | $ 39 | ||||||||
Total net revenue | $ 637 | $ 599 | $ 577 | $ 553 | $ 509 | $ 486 | $ 474 | $ 472 | 2,366 | 1,941 | 1,370 |
Total non-interest expense | 1,470 | 1,252 | 1,319 | ||||||||
Income before income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries | 1,064 | 838 | 91 | ||||||||
Income tax expense (benefit) | 450 | 286 | (177) | ||||||||
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | 614 | 552 | 268 |
Other comprehensive (loss) income | 111 | (38) | 150 | ||||||||
Comprehensive income | 725 | 514 | 418 | ||||||||
Net income available to common shareholders | 589 | 552 | 268 | ||||||||
Preferred stock dividends | 25 | 0 | 0 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries(1) | 350 | 858 | 859 | ||||||||
Other revenue | 377 | 328 | 317 | ||||||||
Total net revenue | 727 | 1,186 | 1,176 | ||||||||
Total non-interest expense | 611 | 501 | 560 | ||||||||
Income before income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries | 116 | 685 | 616 | ||||||||
Income tax expense (benefit) | 75 | 456 | (287) | ||||||||
Equity in undistributed income (loss) of subsidiaries | 573 | 323 | (635) | ||||||||
Net income | 614 | 552 | 268 | ||||||||
Other comprehensive (loss) income | 111 | (38) | 150 | ||||||||
Comprehensive income | 725 | 514 | 418 | ||||||||
Net income available to common shareholders | 589 | ||||||||||
Preferred stock dividends | $ 25 | ||||||||||
E TRADE Bank [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries(1) | $ 423 | $ 281 |
Condensed Financial Informat104
Condensed Financial Information Condensed Balance Sheet (Parent Only) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and equivalents | $ 931 | $ 1,950 | $ 2,233 | $ 1,783 |
Property and equipment, net | 253 | 239 | ||
Deferred tax assets, net | 251 | 756 | ||
Other assets | 983 | 923 | ||
Assets | 63,365 | 48,999 | ||
Corporate debt | 991 | 994 | ||
Other liabilities | 800 | 500 | ||
Liabilities | 56,434 | 42,727 | ||
Total shareholders’ equity | 6,931 | 6,272 | 5,799 | 5,375 |
Total liabilities and shareholders’ equity | 63,365 | 48,999 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and equivalents | 493 | 416 | $ 432 | $ 220 |
Property and equipment, net | 157 | 148 | ||
Investment in consolidated subsidiaries(1) | 7,268 | 6,523 | ||
Receivable from subsidiaries | 59 | 38 | ||
Other assets | 202 | 332 | ||
Assets | 8,179 | 7,457 | ||
Corporate debt | 991 | 994 | ||
Other liabilities | 257 | 191 | ||
Liabilities | 1,248 | 1,185 | ||
Total shareholders’ equity | 6,931 | 6,272 | ||
Total liabilities and shareholders’ equity | 8,179 | 7,457 | ||
E TRADE Bank [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Investment in consolidated subsidiaries(1) | $ 3,700 | $ 3,200 |
Condensed Financial Informat105
Condensed Financial Information Condensed Statement of Cash Flows (Parent Only) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | $ 614 | $ 552 | $ 268 | |
Depreciation and amortization | 262 | 239 | 325 | |||||||||
Equity in undistributed (income) loss from subsidiaries | (2) | 5 | (9) | |||||||||
Losses on early extinguishment of debt | 9 | 0 | 37 | |||||||||
Other | (7) | (5) | 1 | |||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 1,121 | 1,646 | 843 | |||||||||
Capital expenditures for property and equipment | (102) | (75) | (70) | |||||||||
Other | 43 | 1 | (73) | |||||||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (13,576) | (4,004) | 2 | |||||||||
Proceeds from issuance of senior notes | 999 | 0 | 460 | |||||||||
Payments on senior notes | (1,000) | 0 | (800) | |||||||||
Issuance of preferred stock | 300 | 400 | 0 | |||||||||
Repurchases of common stock | (362) | (452) | (50) | |||||||||
Preferred stock dividends | 25 | 0 | 0 | |||||||||
Other | (36) | (28) | (19) | |||||||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 11,436 | 2,075 | (395) | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | (1,019) | (283) | 450 | |||||||||
Cash and equivalents | 931 | 1,950 | 931 | 1,950 | 2,233 | $ 1,783 | ||||||
Parent Company [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net income | 614 | 552 | 268 | |||||||||
Depreciation and amortization | 51 | 48 | 44 | |||||||||
Equity in undistributed (income) loss from subsidiaries | 573 | 323 | (635) | |||||||||
Losses on early extinguishment of debt | 9 | 0 | 5 | |||||||||
Other | 213 | 585 | (152) | |||||||||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 314 | 862 | 800 | |||||||||
Capital expenditures for property and equipment | (59) | (36) | (33) | |||||||||
Cash contributions to subsidiaries | (61) | (766) | (147) | |||||||||
Other | 6 | 16 | 0 | |||||||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (114) | (786) | (180) | |||||||||
Proceeds from issuance of senior notes | 999 | 0 | 460 | |||||||||
Payments on senior notes | (1,000) | 0 | (800) | |||||||||
Issuance of preferred stock | 300 | 400 | 0 | |||||||||
Repurchases of common stock | (362) | (452) | (50) | |||||||||
Preferred stock dividends | 25 | |||||||||||
Other | (35) | (40) | (18) | |||||||||
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (123) | (92) | (408) | |||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 77 | (16) | 212 | |||||||||
Cash and equivalents | $ 493 | $ 416 | $ 493 | $ 416 | $ 432 | $ 220 |
Condensed Financial Informat106
Condensed Financial Information (Parent Company) Guarantees (Details) | Dec. 31, 2017USD ($) |
Parent Company [Member] | Foreign Exchange Guarantee [Member] | |
Condensed Financial Information Parent Company Guarantees [Line Items] | |
Guarantor obligations, current carrying value | $ 0 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenue | $ 637 | $ 599 | $ 577 | $ 553 | $ 509 | $ 486 | $ 474 | $ 472 | $ 2,366 | $ 1,941 | $ 1,370 |
Net income | $ 129 | $ 147 | $ 193 | $ 145 | $ 127 | $ 139 | $ 133 | $ 153 | $ 614 | $ 552 | $ 268 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.48 | $ 0.49 | $ 0.70 | $ 0.48 | $ 0.46 | $ 0.51 | $ 0.48 | $ 0.54 | $ 2.16 | $ 1.99 | $ 0.92 |
Diluted (in dollars per share) | $ 0.48 | $ 0.49 | $ 0.70 | $ 0.48 | $ 0.46 | $ 0.51 | $ 0.48 | $ 0.53 | $ 2.15 | $ 1.98 | $ 0.91 |
Income Statement [Abstract] | |||||||||||
Provision (benefit) for loan losses | $ (99) | $ (168) | $ (149) | $ (40) | |||||||
Gains (losses) on early extinguishment of debt | $ (58) | (58) | $ 0 | $ (112) | |||||||
Additional tax expense related to the federal tax reform law | $ 58 | $ 58 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2018USD ($) | |
Subsequent Event [Member] | Brokerage accounts acquisition from Capital One [Member] | |
Subsequent Event [Line Items] | |
Acquisition of brokerage accounts of Capital One | $ 170 |