DEI_Document
DEI Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Entity Central Index Key | '0000759944 | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CFG | ' |
Entity Registrant Name | 'CITIZENS FINANCIAL GROUP INC/RI | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 545,700,563 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS: | ' | ' | ||
Cash and due from banks | $993 | $1,406 | ||
Interest-bearing cash and due from banks | 1,896 | 1,351 | ||
Interest-bearing deposits in banks | 292 | 233 | ||
Securities available for sale, at fair value | 18,666 | 15,995 | ||
Securities held to maturity (fair value of $5,278 and $4,257, respectively) | 5,289 | 4,315 | ||
Other investment securities | 893 | 935 | ||
Loans held for sale, at fair value | 205 | 176 | ||
Other loans held for sale | 3 | 1,078 | ||
Loans and leases | 90,749 | [1],[2] | 85,859 | [1],[2] |
Less: Allowance for loan and lease losses | 1,201 | 1,221 | ||
Net loans and leases | 89,548 | 84,638 | ||
Derivative assets | 547 | 650 | ||
Premises and equipment, net | 541 | 592 | ||
Bank-owned life insurance | 1,370 | 1,339 | ||
Goodwill | 6,876 | 6,876 | ||
Due from broker | 2,067 | 446 | ||
Other branch assets held for sale | 0 | 46 | ||
Other assets (related party balances of $8 and $63, respectively) | 2,155 | 2,078 | ||
TOTAL ASSETS | 131,341 | 122,154 | ||
LIABILITIES: | ' | ' | ||
Noninterest-bearing | 25,877 | 24,931 | ||
Interest-bearing (related party balances of $5 and $5, respectively) | 67,586 | 61,972 | ||
Total deposits | 93,463 | 86,903 | ||
Deposits held for sale | 0 | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 4,791 | ||
Other short-term borrowed funds | 6,715 | 2,251 | ||
Derivative liabilities (related party balances of $485 and $835, respectively) | 638 | 939 | ||
Deferred taxes, net | 354 | 199 | ||
Long-term borrowed funds (related party balances of $1,666 and $1,000, respectively) | 2,062 | 1,405 | ||
Due to broker | 2,087 | 0 | ||
Other liabilities (related party balances of $42 and $27, respectively) | 1,455 | 1,193 | ||
TOTAL LIABILITIES | 111,958 | 102,958 | ||
Contingencies (refer to Note 12) | ' | ' | ||
STOCKHOLDERS' EQUITY: | ' | ' | ||
Preferred stock, $25.00 par value, 100,000,000 shares authorized, no shares outstanding at September 30, 2014 and $1.00 par value, 30,000 shares authorized, no shares outstanding at December 31, 2013 | 0 | 0 | ||
Common stock, $.01 par value, 1,000,000,000 shares authorized, 559,998,324 shares issued and outstanding at September 30, 2014 and December 31, 2013 | 6 | 6 | ||
Additional paid-in capital | 18,660 | 18,603 | ||
Retained earnings | 1,152 | 1,235 | ||
Accumulated other comprehensive loss | -435 | -648 | ||
TOTAL STOCKHOLDERS' EQUITY | 19,383 | 19,196 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $131,341 | $122,154 | ||
[1] | Excluded from the table above are loans held for sale totaling $208 million as of September 30, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches. For further discussion, see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $18.1 billion and $18.7 billion at September 30, 2014 and December 31, 2013, respectively. |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) Parenthetical (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
ASSETS: | ' | ' |
Securities held-to-maturity, Fair Value | $5,278 | $4,257 |
Other assets | 2,155 | 2,078 |
LIABILITIES: | ' | ' |
Interest-bearing | 67,586 | 61,972 |
Derivative liabilities | 638 | 939 |
Long-term borrowed funds | 2,062 | 1,405 |
Other liabilities | 1,455 | 1,193 |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred Stock, Par Value (in Dollars per Share) | $25 | $1 |
Preferred Stock, Shares Authorized | 100,000,000 | 30,000 |
Preferred Stock, Shares Outstanding (in Shares) | 0 | 0 |
Common Stock, Par Value (in Dollars per Share) | $0.01 | $0.01 |
Common Stock, Shares Authorized (in Shares) | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares Issued (in Shares) | 559,998,324 | 559,998,324 |
Common Stock, Shares Outstanding (in Shares) | 559,998,324 | 559,998,324 |
Related Party | ' | ' |
ASSETS: | ' | ' |
Other assets | 8 | 63 |
LIABILITIES: | ' | ' |
Interest-bearing | 5 | 5 |
Derivative liabilities | 485 | 835 |
Long-term borrowed funds | 1,666 | 1,000 |
Other liabilities | $42 | $27 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INTEREST INCOME: | ' | ' | ' | ' |
Interest and fees on loans and leases (related party balances of $18, $17, $54 and $38, respectively) | $754 | $748 | $2,235 | $2,258 |
Interest and fees on loans held for sale | 2 | 3 | 4 | 10 |
Interest and fees on other loans held for sale | 0 | 0 | 22 | 0 |
Investment securities | 155 | 120 | 458 | 348 |
Interest-bearing deposits in banks | 2 | 2 | 4 | 9 |
Total interest income | 913 | 873 | 2,723 | 2,625 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits (related party balances of $0, $12, $0 and $15, respectively) | 41 | 58 | 108 | 176 |
Deposits held for sale | 0 | 0 | 4 | 0 |
Federal funds purchased and securities sold under agreement to repurchase (related party balances of $3, $33, $16 and $143, respectively) | 9 | 35 | 25 | 150 |
Other short-term borrowed funds (related party balances of $16, $3, $60 and $3, respectively) | 21 | 2 | 70 | 4 |
Long-term borrowed funds (related party balances of $17, $4, $42 and $6, respectively) | 22 | 8 | 55 | 16 |
Total interest expense | 93 | 103 | 262 | 346 |
Net interest income | 820 | 770 | 2,461 | 2,279 |
Provision for credit losses | 77 | 145 | 247 | 347 |
Net interest income after provision for credit losses | 743 | 625 | 2,214 | 1,932 |
NONINTEREST INCOME: | ' | ' | ' | ' |
Service charges and fees (related party balances of $1, $4, $4 and $13, respectively) | 144 | 163 | 430 | 488 |
Card fees | 58 | 63 | 175 | 176 |
Trust and investment services fees | 39 | 39 | 120 | 109 |
Foreign exchange and trade finance fees (related party balances of $59, ($33), $52 and ($20), respectively) | 26 | 25 | 70 | 73 |
Capital markets fees (related party balances of $4, $4, $9 and $9, respectively) | 22 | 11 | 66 | 35 |
Mortgage banking fees | 21 | 20 | 55 | 133 |
Bank-owned life insurance income | 13 | 12 | 36 | 37 |
Securities gains, net | 2 | 25 | 27 | 119 |
Other-than-temporary impairment: | ' | ' | ' | ' |
Total other-than-temporary impairment losses | -3 | -1 | -42 | -61 |
Portions of loss recognized in other comprehensive income (before taxes) | 2 | -2 | 35 | 54 |
Net impairment losses recognized in earnings | -1 | -3 | -7 | -7 |
Other income (related party balances of $5, ($44), ($130) and $132, respectively) | 17 | 28 | 367 | 90 |
Total noninterest income | 341 | 383 | 1,339 | 1,253 |
NONINTEREST EXPENSE: | ' | ' | ' | ' |
Salaries and employee benefits | 409 | 403 | 1,281 | 1,261 |
Outside services | 106 | 87 | 314 | 259 |
Occupancy (related party balances of $0, $1, $0 and $3, respectively) | 77 | 80 | 245 | 244 |
Equipment expense | 58 | 69 | 187 | 207 |
Amortization of software | 38 | 26 | 102 | 71 |
Goodwill impairment | 0 | 0 | 0 | 4,435 |
Other operating expense | 122 | 123 | 439 | 384 |
Total noninterest expense | 810 | 788 | 2,568 | 6,861 |
Income (loss) before income tax expense (benefit) | 274 | 220 | 985 | -3,676 |
Income tax expense (benefit) | 85 | 76 | 317 | -98 |
NET INCOME (LOSS) | $189 | $144 | $668 | ($3,578) |
Weighted-average number of shares outstanding: | ' | ' | ' | ' |
Basic (in Shares) | 559,998,324 | 559,998,324 | 559,998,324 | 559,998,324 |
Diluted (in Shares) | 560,243,747 | 559,998,324 | 560,081,031 | 559,998,324 |
Per common share information: | ' | ' | ' | ' |
Basic earnings (in Dollars per Share) | $0.34 | $0.26 | $1.19 | ($6.39) |
Diluted earnings (in Dollars per Share) | $0.34 | $0.26 | $1.19 | ($6.39) |
Dividends declared and paid to parent (in Dollars per Share) | $0.68 | $0.68 | $1.34 | $1.45 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INTEREST INCOME: | ' | ' | ' | ' |
Interest and fees on loans and leases, Related party balance | $754 | $748 | $2,235 | $2,258 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits, Related party balance | 41 | 58 | 108 | 176 |
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 9 | 35 | 25 | 150 |
Other short-term borrowed funds | 21 | 2 | 70 | 4 |
Long-term borrowed funds, Related party balance | 22 | 8 | 55 | 16 |
NONINTEREST INCOME: | ' | ' | ' | ' |
Service charges and fees, Related party balance | 144 | 163 | 430 | 488 |
Foreign exchange and trade finance fees, Related party balance | 26 | 25 | 70 | 73 |
Capital markets fees, Related party balance | 22 | 11 | 66 | 35 |
Other income, Related party balance | 17 | 28 | 367 | 90 |
NONINTEREST EXPENSE: | ' | ' | ' | ' |
Occupancy, Related party balance | 77 | 80 | 245 | 244 |
Related Party | ' | ' | ' | ' |
INTEREST INCOME: | ' | ' | ' | ' |
Interest and fees on loans and leases, Related party balance | 18 | 17 | 54 | 38 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits, Related party balance | 0 | 12 | 0 | 15 |
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 3 | 33 | 16 | 143 |
Other short-term borrowed funds | 16 | 3 | 60 | 3 |
Long-term borrowed funds, Related party balance | 17 | 4 | 42 | 6 |
NONINTEREST INCOME: | ' | ' | ' | ' |
Service charges and fees, Related party balance | 1 | 4 | 4 | 13 |
Foreign exchange and trade finance fees, Related party balance | 59 | -33 | 52 | -20 |
Capital markets fees, Related party balance | 4 | 4 | 9 | 9 |
Other income, Related party balance | 5 | -44 | -130 | 132 |
NONINTEREST EXPENSE: | ' | ' | ' | ' |
Occupancy, Related party balance | $0 | $1 | $0 | $3 |
CONSOLIDATED_STATEMENTS_OF_OTH
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (UNAUDITED) Statement (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $189 | $144 | $668 | ($3,578) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of $10, $1, $80 and ($70), respectively | 17 | 1 | 137 | -121 |
Reclassification adjustment for net derivative losses included in net income, net of income taxes of $2, $11, $9 and $45, respectively | 3 | 19 | 16 | 79 |
Net unrealized securities gains (losses) arising during the periods, net of income taxes of ($36), $19, $73 and ($107), respectively | -61 | 35 | 127 | -184 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $0, ($12) and ($21), respectively | -1 | 0 | -22 | -35 |
Reclassification of net securities gains to net income, net of income taxes of $0, ($7), ($7) and ($41), respectively | -1 | -15 | -13 | -71 |
Defined benefit pension plans: | ' | ' | ' | ' |
Actuarial loss, net of taxes of ($35), $0, ($35) and $0, respectively | -59 | 0 | -59 | 0 |
Net prior service credit, net of income taxes of $3, $0, $3 and $0, respectively | 4 | 0 | 4 | 0 |
Amortization of actuarial loss, net of taxes of $1, $1, $2 and $4, respectively | 2 | 2 | 4 | 5 |
Divestitures effective 9/1/14, net of taxes of $13, $0, $13 and $0, respectively | 19 | 0 | 19 | 0 |
Total other comprehensive income (loss), net of income taxes | -77 | 42 | 213 | -327 |
Total comprehensive income (loss) | $112 | $186 | $881 | ($3,905) |
CONSOLIDATED_STATEMENTS_OF_OTH1
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (UNAUDITED) Parenthetical (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized derivative instrument gains (losses) arising during the periods tax | $10 | $1 | $80 | ($70) |
Reclassification adjustment for net derivative losses included in net income tax | 2 | 11 | 9 | 45 |
Net unrealized securities gains (losses) arising during the periods tax | -36 | 19 | 73 | -107 |
Other-than-temporary impairment not recognized in earnings on securities tax | 0 | 0 | -12 | -21 |
Reclassification of net securities gains to net income tax | 0 | -7 | -7 | -41 |
Actuarial loss tax | -35 | 0 | -35 | 0 |
Net prior service credit tax | 3 | 0 | 3 | 0 |
Amortization of actuarial loss tax | 1 | 1 | 2 | 4 |
Tax on divestitures | $13 | $0 | $13 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Millions, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2012 | $24,129 | $0 | $6 | $18,589 | $5,846 | ($312) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Dividend to parent | -145 | ' | ' | ' | -145 | ' |
Dividends to parent — exchange transactions | -666 | ' | ' | ' | -666 | ' |
Net income (loss) | -3,578 | ' | ' | ' | -3,578 | ' |
Other comprehensive loss | -327 | ' | ' | ' | ' | -327 |
Total comprehensive income (loss) | -3,905 | ' | ' | ' | -3,578 | -327 |
Ending balance at Sep. 30, 2013 | 19,413 | 0 | 6 | 18,589 | 1,457 | -639 |
Beginning balance at Dec. 31, 2013 | 19,196 | 0 | 6 | 18,603 | 1,235 | -648 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Dividend to parent | -85 | ' | ' | ' | -85 | ' |
Dividends to parent — exchange transactions | -666 | ' | ' | ' | -666 | ' |
Share-based compensation plans | 57 | ' | ' | 57 | ' | ' |
Net income (loss) | 668 | ' | ' | ' | 668 | ' |
Other comprehensive loss | 213 | ' | ' | ' | ' | 213 |
Total comprehensive income (loss) | 881 | ' | ' | ' | 668 | 213 |
Ending balance at Sep. 30, 2014 | $19,383 | $0 | $6 | $18,660 | $1,152 | ($435) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income (loss) | $668 | ($3,578) | ' |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Provision for credit losses | 247 | 347 | ' |
Originations of mortgage loans held for sale | -1,131 | -3,310 | ' |
Proceeds from sales of mortgage loans held for sale | 1,089 | 3,649 | ' |
Amortization of terminated cash flow hedges (related party balances of $13 and $53, respectively) | 36 | 57 | ' |
Depreciation, amortization and accretion | 313 | 304 | ' |
Recovery of mortgage servicing rights | -8 | -42 | ' |
Securities impairment | 7 | 7 | ' |
Goodwill impairment | 0 | 4,435 | 4,400 |
Deferred income taxes | 31 | -110 | ' |
Share-based compensation | 29 | 24 | ' |
Loss on disposal/impairment of premises and equipment | -18 | -15 | ' |
Loss on sale of other branch assets held for sale | 9 | 0 | ' |
Gain on sale of: Securities available for sale | -27 | -119 | ' |
Gain on sale of: Other loans held for sale | -11 | 0 | ' |
Gain on sale of: Deposits held for sale | -286 | 0 | ' |
(Increase) decrease in other assets (related party balances of $53 and $1, respectively) | -2,040 | 530 | ' |
Increase (decrease) in other liabilities (related party balances of ($151) and $23, respectively) | 2,256 | -573 | ' |
Net cash provided by operating activities | 1,200 | 1,636 | ' |
INVESTING ACTIVITIES | ' | ' | ' |
Purchases of securities available for sale | -5,642 | -8,830 | ' |
Proceeds from maturities and paydowns of securities available for sale | 2,238 | 3,931 | ' |
Proceeds from sales of securities available for sale | 1,265 | 3,014 | ' |
Purchases of other investment securities | -72 | -1 | ' |
Proceeds from sales of other investment securities | 114 | 101 | ' |
Purchases of securities held to maturity | -1,174 | 0 | ' |
Proceeds from maturities and paydowns of securities held to maturity | 216 | 0 | ' |
Net (increase) decrease in interest-bearing deposits in banks | -59 | 990 | ' |
Net (increase) decrease in loans and leases | -4,120 | 1,289 | ' |
Net increase in bank-owned life insurance | -31 | -29 | ' |
Premises and equipment: Purchases | -48 | -118 | ' |
Premises and equipment: Proceeds from sales | 29 | 0 | ' |
Capitalization of software | -116 | -129 | ' |
Net cash (used in) provided by investing activities | -7,400 | 218 | ' |
FINANCING ACTIVITIES | ' | ' | ' |
Net increase (decrease) in deposits | 1,569 | -1,218 | ' |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 393 | -742 | ' |
Net increase in other short-term borrowed funds | 4,462 | 64 | ' |
Proceeds from issuance of long-term borrowed funds (related party balances of $666 and $666, respectively) | 666 | 666 | ' |
Repayments of long-term borrowed funds (related party balances of $0 and $280, respectively) | -7 | -294 | ' |
Dividends declared and paid to parent | -751 | -811 | ' |
Net cash provided by (used in) financing activities | 6,332 | -2,335 | ' |
Increase (decrease) in cash and cash equivalents | 132 | -481 | ' |
Cash and cash equivalents at beginning of period | 2,757 | 3,063 | 3,063 |
Cash and cash equivalents at end of period | 2,889 | 2,582 | 2,757 |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 248 | 354 | ' |
Income taxes paid | 201 | 19 | ' |
Non-cash items: | ' | ' | ' |
Due from broker for securities sold but not settled | 1,621 | 4 | ' |
Due to broker for securities purchased but not settled | ($2,110) | ($2) | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Parenthetical (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Amortization of terminated cash flow hedges | $36 | $57 |
Decrease in other assets | -2,040 | 530 |
Increase (decrease) in other liabilities | 2,256 | -573 |
Proceeds from issuance of long-term borrowed funds | 666 | 666 |
Repayments of long-term borrowed funds | -7 | -294 |
Related Party | ' | ' |
Amortization of terminated cash flow hedges | 13 | 53 |
Decrease in other assets | 53 | 1 |
Increase (decrease) in other liabilities | -151 | 23 |
Proceeds from issuance of long-term borrowed funds | 666 | 666 |
Repayments of long-term borrowed funds | $0 | $280 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Basis of Presentation | |
The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc. (formerly RBS Citizens Financial Group, Inc., prior to April 16, 2014), have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company's Registration Statement on Form S-1/A, declared effective by the United States Securities and Exchange Commission on September 23, 2014 (the "Registration Statement"). The Company is a majority-owned subsidiary of The Royal Bank of Scotland Group plc. The Company’s principal business activity is banking, conducted through its subsidiaries, Citizens Bank, N.A. (formerly RBS Citizens, N.A., prior to April 16, 2014) and Citizens Bank of Pennsylvania. | |
The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. | |
On August 22, 2014, the Company's Board of Directors declared a 165,582-for-1 stock split. Except for the amount of authorized shares and par value, all references to share and per share amounts in the unaudited interim Consolidated Financial Statements and accompanying Notes have been retroactively adjusted to reflect the stock split. | |
Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. | |
Recent Accounting Pronouncements | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The amendment is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-14, “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” This update amends the guidance in Accounting Standards Codification 310 and requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2014 and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-13, “Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.” This update amends the guidance in Accounting Standards Codification 820 and clarifies that a reporting entity that consolidates a collateralized financing entity within the scope of this update may elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in this update or Topic 820 on fair value measurement. When the measurement alternative is not elected for a consolidated collateralized financing entity within the scope of this update, the amendments clarify that (1) the fair value of the financial assets and the fair value of the financial liabilities of the consolidated collateralized financing entity should be measured using the requirements of Topic 820 and (2) any differences in the fair value of the financial assets and the fair value of the financial liabilities of that consolidated collateralized financing entity should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2015 and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This update amends the guidance on stock compensation and clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Accordingly, an entity should not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which a transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2015, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures,” which makes limited amendments to the guidance on accounting for certain repurchase agreements. This update requires entities to account for repurchase-to maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements); eliminates accounting guidance on linked repurchase financing transactions; and expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers accounted for as secured borrowings. This update also amends the existing guidance to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in the existing guidance should be accounted for as secured borrowings. This amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue From Contracts With Customers.” This amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The new guidance applies to all contracts with customers except those that are within the scope of other topics in GAAP. This amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This amendment modifies the requirements for reporting a discontinued operation. The amended definition of “discontinued operations” includes only disposals, held-for-sale classifications of components, or groups of components of an entity that represent “strategic shift” that either has or will have a major effect on the entity’s operations and financial results, such as geographic area, line of business, equity method investment or other parts of an entity. This amendment also provides disclosure guidance for situations where an entity has continuing involvement with a discontinued operation or retains an equity method investment in a component after disposal. This amendment is effective for all disposals or classifications as held for sale (including businesses or nonprofit activities that, on acquisition, are classified as held for sale) that occur in annual periods, and in interim periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In January 2014, the FASB issued Accounting Standards Update No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” This amendment clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendment requires disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In January 2014, the FASB issued Accounting Standards Update No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” This amendment permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Qualified affordable housing project investments that are not accounted for using the proportional amortization method must be accounted for as an equity method or cost method investment. This amendment is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. |
SECURITIES
SECURITIES | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||
SECURITIES | ' | ||||||||||||||||||||||||||
SECURITIES | |||||||||||||||||||||||||||
The following table provides the major components of securities at amortized cost and fair value: | |||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $15 | $15 | $— | $— | $15 | |||||||||||||||||||
State and political subdivisions | 10 | — | — | 10 | 11 | — | (1 | ) | 10 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 17,759 | 207 | (68 | ) | 17,898 | 14,970 | 151 | (128 | ) | 14,993 | |||||||||||||||||
Other/non-agency | 747 | 6 | (35 | ) | 718 | 992 | 5 | (45 | ) | 952 | |||||||||||||||||
Total mortgage-backed securities | 18,506 | 213 | (103 | ) | 18,616 | 15,962 | 156 | (173 | ) | 15,945 | |||||||||||||||||
Total debt securities available for sale | 18,531 | 213 | (103 | ) | 18,641 | 15,988 | 156 | (174 | ) | 15,970 | |||||||||||||||||
Marketable equity securities | 10 | 3 | — | 13 | 10 | 3 | — | 13 | |||||||||||||||||||
Other equity securities | 12 | — | — | 12 | 12 | — | — | 12 | |||||||||||||||||||
Total equity securities available for sale | 22 | 3 | — | 25 | 22 | 3 | — | 25 | |||||||||||||||||||
Total securities available for sale | $18,553 | $216 | ($103 | ) | $18,666 | $16,010 | $159 | ($174 | ) | $15,995 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,833 | $9 | ($46 | ) | $3,796 | $2,940 | $— | ($33 | ) | $2,907 | |||||||||||||||||
Other/non-agency | 1,456 | 26 | — | 1,482 | 1,375 | — | (25 | ) | 1,350 | ||||||||||||||||||
Total securities held to maturity | $5,289 | $35 | ($46 | ) | $5,278 | $4,315 | $— | ($58 | ) | $4,257 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $470 | $— | $— | $470 | $462 | $— | $— | $462 | |||||||||||||||||||
Federal Home Loan Bank stock | 417 | — | — | 417 | 468 | — | — | 468 | |||||||||||||||||||
Venture capital and other investments | 6 | — | — | 6 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $893 | $— | $— | $893 | $935 | $— | $— | $935 | |||||||||||||||||||
The Company has reviewed its securities portfolio for other-than-temporary impairments. The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: | |||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||
(dollars in millions) | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Treasury | — | $— | $— | — | $— | $— | — | $— | $— | ||||||||||||||||||
State and political subdivisions | — | — | — | 1 | 10 | — | 1 | 10 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 121 | 7,178 | (63 | ) | 45 | 1,213 | (51 | ) | 166 | 8,391 | (114 | ) | |||||||||||||||
Other/non-agency | 5 | 112 | (1 | ) | 17 | 414 | (34 | ) | 22 | 526 | (35 | ) | |||||||||||||||
Total mortgage-backed securities | 126 | 7,290 | (64 | ) | 62 | 1,627 | (85 | ) | 188 | 8,917 | (149 | ) | |||||||||||||||
Total | 126 | $7,290 | ($64 | ) | 63 | $1,637 | ($85 | ) | 189 | $8,927 | ($149 | ) | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||
(dollars in millions) | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
State and political subdivisions | 1 | $10 | ($1 | ) | — | $— | $— | 1 | $10 | ($1 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 263 | 12,067 | (158 | ) | 7 | 20 | (2 | ) | 270 | 12,087 | (160 | ) | |||||||||||||||
Other/non-agency | 22 | 1,452 | (34 | ) | 19 | 490 | (37 | ) | 41 | 1,942 | (71 | ) | |||||||||||||||
Total mortgage-backed securities | 285 | 13,519 | (192 | ) | 26 | 510 | (39 | ) | 311 | 14,029 | (231 | ) | |||||||||||||||
Total | 286 | $13,529 | ($193 | ) | 26 | $510 | ($39 | ) | 312 | $14,039 | ($232 | ) | |||||||||||||||
For each debt security identified with an unrealized loss, the Company reviews the expected cash flows to determine if the impairment in value is temporary or other-than-temporary. If the Company has determined that the present value of the debt security’s expected cash flows is less than its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of impairment loss that is recognized in current period earnings is dependent on the Company’s intent to sell (or not sell) the debt security. | |||||||||||||||||||||||||||
If the Company intends to sell the impaired debt security, the impairment loss recognized in current period earnings equals the difference between the debt security’s fair value and its amortized cost. If the Company does not intend to sell the impaired debt security, and it is not likely that the Company will be required to sell the impaired security, the credit-related impairment loss is recognized in current period earnings and equals the difference between the amortized cost of the debt security and the present value of the expected cash flows that have currently been projected. | |||||||||||||||||||||||||||
In addition to these cash flow projections, several other characteristics of each debt security are reviewed when determining whether a credit loss exists and the period over which the debt security is expected to recover. These characteristics include: (1) the type of investment, (2) various market factors affecting the fair value of the security (e.g., interest rates, spread levels, liquidity in the sector, etc.), (3) the length and severity of impairment, and (4) the public credit rating of the instrument. | |||||||||||||||||||||||||||
The Company estimates the portion of loss attributable to credit using a cash flow model. The inputs to this model include prepayment, default and loss severity assumptions that are based on industry research and observed data. The loss projections generated by the model are reviewed on a quarterly basis by a cross-functional governance committee. This governance committee determines whether security impairments are other-than-temporary based on this review. | |||||||||||||||||||||||||||
The following table presents the cumulative credit related losses recognized in earnings on debt securities held by the Company as of: | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Cumulative balance at beginning of period | $60 | $56 | $56 | $55 | |||||||||||||||||||||||
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 3 | 7 | 7 | |||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (1 | ) | (3 | ) | (3 | ) | (6 | ) | |||||||||||||||||||
Cumulative balance at end of period | $60 | $56 | $60 | $56 | |||||||||||||||||||||||
Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of September 30, 2014 and 2013 were $60 million and $56 million, respectively. There were no credit losses recognized in earnings for the Company's HTM portfolio as of September 30, 2014 and 2013. In the three months ended September 30, 2014 and 2013, the Company recognized credit related other-than-temporary impairment losses in earnings of $1 million and $3 million, respectively, related to non-agency MBS in the AFS portfolio. For the nine months ended September 30, 2014 and 2013, $7 million of credit related other-than-temporary impairment losses was recognized in earnings. No impaired debt securities were sold during the three or nine month periods ended September 30, 2014 and 2013. Reductions in credit losses due to increases in cash flow expectations were $1 million and $3 million in the three months ended September 30, 2014 and 2013, and were $3 million and $6 million for the nine months ended September 30, 2014 and 2013, respectively, and were presented in investment securities interest income on the Consolidated Statements of Operations. The Company does not currently have the intent to sell these debt securities, and it is not likely that the Company will be required to sell these debt securities prior to the recovery of their amortized cost bases. As of September 30, 2014 and 2013, $35 million and $54 million, respectively, of pre-tax non-credit related losses were deferred in OCI. | |||||||||||||||||||||||||||
The Company has determined that credit losses are not expected to be incurred on the remaining agency and non-agency MBS identified with unrealized losses as of the current reporting date. The unrealized losses on these debt securities reflect the reduced liquidity in the MBS market and the increased risk spreads due to the uncertainty of the U.S. macroeconomic environment. Therefore, the Company has determined that these debt securities are not other-than-temporarily impaired because the Company does not currently have the intent to sell these debt securities, and it is not likely that the Company will be required to sell these debt securities prior to the recovery of their amortized cost bases. Additionally, any subsequent increases in the valuation of impaired debt securities do not impact their recorded cost bases. | |||||||||||||||||||||||||||
The amortized cost and fair value of debt securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||
Distribution of Maturities | |||||||||||||||||||||||||||
(in millions) | 1 Year or Less | 1-5 Years | 5-10 Years | After 10 Years | Total | ||||||||||||||||||||||
Amortized Cost: | |||||||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $— | $15 | ||||||||||||||||||||||
State and political subdivisions | — | — | — | 10 | 10 | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 56 | 2,438 | 15,261 | 17,759 | ||||||||||||||||||||||
Other/non-agency | — | 61 | 62 | 624 | 747 | ||||||||||||||||||||||
Total debt securities available for sale | 19 | 117 | 2,500 | 15,895 | 18,531 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,833 | 3,833 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,456 | 1,456 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,289 | 5,289 | ||||||||||||||||||||||
Total amortized cost of debt securities | $19 | $117 | $2,500 | $21,184 | $23,820 | ||||||||||||||||||||||
Fair Value: | |||||||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $— | $15 | ||||||||||||||||||||||
State and political subdivisions | — | — | — | 10 | 10 | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 60 | 2,441 | 15,393 | 17,898 | ||||||||||||||||||||||
Other/non-agency | — | 61 | 64 | 593 | 718 | ||||||||||||||||||||||
Total debt securities available for sale | 19 | 121 | 2,505 | 15,996 | 18,641 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,796 | 3,796 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,482 | 1,482 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,278 | 5,278 | ||||||||||||||||||||||
Total fair value of debt securities | $19 | $121 | $2,505 | $21,274 | $23,919 | ||||||||||||||||||||||
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations: | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Taxable | $155 | $120 | $458 | $348 | |||||||||||||||||||||||
Non-taxable | — | — | — | — | |||||||||||||||||||||||
Total interest income from investment securities | $155 | $120 | $458 | $348 | |||||||||||||||||||||||
The Company recognized gains on sale of debt securities in earnings of $2 million and $25 million for the three months ended September 30, 2014 and 2013, respectively, and $27 million and $119 million for the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
The amortized cost and fair value of securities pledged are shown below: | |||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $5,129 | $5,165 | $5,016 | $4,998 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,390 | 1,416 | 1 | 1 | |||||||||||||||||||||||
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,463 | 3,514 | 2,818 | 2,853 | |||||||||||||||||||||||
The Company regularly enters into security repurchase agreements with unrelated counterparties. Repurchase agreements are financial transactions that involve the transfer of a security from one party to another and a subsequent transfer of the same (or "substantially the same") security back to the original party. The Company’s repurchase agreements are typically short-term transactions (e.g., overnight), but they may be extended to longer terms to maturity. Such transactions are accounted for as secured borrowed funds on the Company’s financial statements. When permitted by GAAP, the Company offsets the short-term receivables associated with its reverse repurchase agreements with the short-term payables associated with its repurchase agreements. | |||||||||||||||||||||||||||
The effects of this offsetting on the Consolidated Balance Sheets are presented in the following table: | |||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Gross Assets (Liabilities) | Gross Assets (Liabilities) Offset | Net Amounts of Assets (Liabilities) | Gross Assets (Liabilities) | Gross Assets (Liabilities) Offset | Net Amounts of Assets (Liabilities) | |||||||||||||||||||||
Securities purchased under agreements to resell | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Securities sold under agreements to repurchase | (4,100 | ) | — | (4,100 | ) | (3,000 | ) | — | (3,000 | ) | |||||||||||||||||
Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. See Note 11 "Derivatives" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information. |
LOANS_AND_LEASES
LOANS AND LEASES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
LOANS AND LEASES | ' | |||||||
LOANS AND LEASES | ||||||||
A summary of the loans and leases portfolio follows: | ||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||
Commercial | $30,356 | $28,667 | ||||||
Commercial real estate | 7,239 | 6,948 | ||||||
Leases | 3,875 | 3,780 | ||||||
Total commercial | 41,470 | 39,395 | ||||||
Residential, including originated home equity products | 30,458 | 29,694 | ||||||
Home equity products serviced by others | 1,870 | 2,171 | ||||||
Other secured retail | 13,206 | 10,700 | ||||||
Unsecured retail | 3,745 | 3,899 | ||||||
Total retail | 49,279 | 46,464 | ||||||
Total loans and leases (1) (2) | $90,749 | $85,859 | ||||||
(1) Excluded from the table above are loans held for sale totaling $208 million as of September 30, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches. For further discussion, see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | ||||||||
(2) Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $18.1 billion and $18.7 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||
Loans held for sale totaled $205 million and $176 million at September 30, 2014 and December 31, 2013, respectively, and consisted of residential mortgages originated for sale. Other loans held for sale totaled $3 million and $1.1 billion at September 30, 2014 and December 31, 2013, respectively. The other loans held for sale balance at December 31, 2013 primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches (the "Chicago Divestiture"). See Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further details. | ||||||||
Loans pledged as collateral for FHLB borrowed funds totaled $19.5 billion and $19.0 billion at September 30, 2014 and December 31, 2013, respectively. This collateral consists primarily of residential mortgages and home equity loans. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, totaled $13.4 billion and $13.9 billion at September 30, 2014 and December 31, 2013, respectively. | ||||||||
During the nine months ended September 30, 2014, the Company purchased a portfolio of residential loans with an outstanding principal balance of $1.5 billion, a portfolio of auto loans with an outstanding principal balance of $1.3 billion and a portfolio of student loans with an outstanding principal balance of $59 million. In addition to the $1.0 billion loans sold as part of the Chicago Divestiture, the Company sold portfolios of residential mortgage loans with outstanding principal balances of $126 million and student loans of $357 million as well as commercial loans with an outstanding principal balance of $165 million during the nine months ended September 30, 2014. The Company had no loan portfolio purchase or sale transactions during the nine months ended September 30, 2013. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | ' | |||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | ||||||||||||||||||||
The ALLL is increased through a provision for credit losses that is charged to earnings, based on the Company’s quarterly evaluation of the loan portfolio, and is reduced by net charge-offs and the ALLL associated with sold loans. See Note 1 “Significant Accounting Policies” of the Company’s audited Consolidated Financial Statements, for a detailed discussion of ALLL methodologies and estimation techniques. | ||||||||||||||||||||
On a quarterly basis, the Company reviews and refines its estimate of the allowance for credit losses, taking into consideration changes in portfolio size and composition, historical loss experience, internal risk ratings, current economic conditions, industry performance trends and other pertinent information. Changes in these factors since September 30, 2013, led to an increase in the allowance for credit losses as of September 30, 2014. ALLL decreased over the same period reflecting asset quality improvements and lower charge-offs. | ||||||||||||||||||||
During 2013, the Company modified the way that it establishes the ALLL. The ALLL is reviewed separately for commercial and retail loan portfolios, and the ALLL for each includes an adjustment for qualitative reserves that includes certain risks, factors and events that might not be measured in the statistical analysis. As a result of this change, the unallocated reserve was absorbed into the separately measured commercial and retail qualitative reserves. | ||||||||||||||||||||
There were no other material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period’s ALLL and the reserve for unfunded lending commitments. | ||||||||||||||||||||
The following is a summary of changes in the allowance for credit losses: | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | |||||||||||||||||
Charge-offs | (30 | ) | (344 | ) | (374 | ) | ||||||||||||||
Recoveries | 47 | 84 | 131 | |||||||||||||||||
Net recoveries (charge-offs) | 17 | (260 | ) | (243 | ) | |||||||||||||||
Provision charged to income | 27 | 196 | 223 | |||||||||||||||||
Allowance for loan and lease losses as of September 30, 2014 | 542 | 659 | 1,201 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | |||||||||||||||||
Provision for unfunded lending commitments | 24 | — | 24 | |||||||||||||||||
Reserve for unfunded lending commitments as of September 30, 2014 | 63 | — | 63 | |||||||||||||||||
Total allowance for credit losses as of September 30, 2014 | $605 | $659 | $1,264 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Unallocated | Total | ||||||||||||||||
Allowance for loan and lease losses as of January 1, 2013 | $509 | $657 | $89 | $1,255 | ||||||||||||||||
Charge-offs | (72 | ) | (470 | ) | — | (542 | ) | |||||||||||||
Recoveries | 69 | 87 | — | 156 | ||||||||||||||||
Net charge-offs | (3 | ) | (383 | ) | — | (386 | ) | |||||||||||||
Provision charged to income | (51 | ) | 329 | 72 | 350 | |||||||||||||||
Allowance for loan and lease losses as of September 30, 2013 | 455 | 603 | 161 | 1,219 | ||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2013 | 40 | — | — | 40 | ||||||||||||||||
Provision for unfunded lending commitments | (3 | ) | — | — | (3 | ) | ||||||||||||||
Reserve for unfunded lending commitments as of September 30, 2013 | 37 | — | — | 37 | ||||||||||||||||
Total allowance for credit losses as of September 30, 2013 | $492 | $603 | $161 | $1,256 | ||||||||||||||||
The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: | ||||||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $191 | $1,214 | $1,405 | $239 | $1,200 | $1,439 | ||||||||||||||
Formula-based evaluation | 41,279 | 48,065 | 89,344 | 39,156 | 45,264 | 84,420 | ||||||||||||||
Total | $41,470 | $49,279 | $90,749 | $39,395 | $46,464 | $85,859 | ||||||||||||||
The following is a summary of the allowance for credit losses by evaluation method: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $14 | $116 | $130 | $23 | $108 | $131 | ||||||||||||||
Formula-based evaluation | 591 | 543 | 1,134 | 514 | 615 | 1,129 | ||||||||||||||
Allowance for credit losses | $605 | $659 | $1,264 | $537 | $723 | $1,260 | ||||||||||||||
For commercial loans and leases, the Company utilizes regulatory classification ratings to monitor credit quality. Loans with a “pass” rating are those that the Company believes will be fully repaid in accordance with the contractual loan terms. Commercial loans and leases that are “criticized” are those that have some weakness that indicates an increased probability of future loss. For retail loans, the Company primarily uses the loan’s payment and delinquency status to monitor credit quality. The further a loan is past due, the greater the likelihood of future credit loss. These credit quality indicators for both commercial and retail loans are continually updated and monitored. | ||||||||||||||||||||
The recorded investment in classes of commercial loans and leases based on regulatory classification ratings is as follows: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $28,857 | $861 | $517 | $121 | $30,356 | |||||||||||||||
Commercial real estate | 6,869 | 207 | 97 | 66 | 7,239 | |||||||||||||||
Leases | 3,814 | 15 | 46 | — | 3,875 | |||||||||||||||
Total | $39,540 | $1,083 | $660 | $187 | $41,470 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $27,433 | $588 | $541 | $105 | $28,667 | |||||||||||||||
Commercial real estate | 6,366 | 339 | 116 | 127 | 6,948 | |||||||||||||||
Leases | 3,679 | 40 | 61 | — | 3,780 | |||||||||||||||
Total | $37,478 | $967 | $718 | $232 | $39,395 | |||||||||||||||
The recorded investment in classes of retail loans, categorized by delinquency status is as follows: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential, including originated home equity products | $28,852 | $811 | $227 | $568 | $30,458 | |||||||||||||||
Home equity products serviced by others | 1,638 | 138 | 42 | 52 | 1,870 | |||||||||||||||
Other secured retail | 12,438 | 673 | 79 | 16 | 13,206 | |||||||||||||||
Unsecured retail | 3,548 | 118 | 49 | 30 | 3,745 | |||||||||||||||
Total | $46,476 | $1,740 | $397 | $666 | $49,279 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential, including originated home equity products | $27,912 | $861 | $259 | $662 | $29,694 | |||||||||||||||
Home equity products serviced by others | 1,901 | 167 | 43 | 60 | 2,171 | |||||||||||||||
Other secured retail | 10,068 | 550 | 66 | 16 | 10,700 | |||||||||||||||
Unsecured retail | 3,593 | 185 | 67 | 54 | 3,899 | |||||||||||||||
Total | $43,474 | $1,763 | $435 | $792 | $46,464 | |||||||||||||||
Nonperforming Assets | ||||||||||||||||||||
A summary of nonperforming loans and leases by class is as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Nonaccruing | Accruing and 90 Days or More Delinquent | Total Nonperforming Loans and Leases | Nonaccruing | Accruing and 90 Days or More Delinquent | Total Nonperforming Loans and Leases | ||||||||||||||
Commercial | $93 | $— | $93 | $96 | $— | $96 | ||||||||||||||
Commercial real estate | 82 | 1 | 83 | 169 | — | 169 | ||||||||||||||
Leases | — | — | — | — | — | — | ||||||||||||||
Total commercial | 175 | 1 | 176 | 265 | — | 265 | ||||||||||||||
Residential, including originated home equity products | 770 | — | 770 | 981 | — | 981 | ||||||||||||||
Home equity products serviced by others | 81 | — | 81 | 89 | — | 89 | ||||||||||||||
Other secured retail | 22 | — | 22 | 26 | — | 26 | ||||||||||||||
Unsecured retail | 23 | 7 | 30 | 22 | 33 | 55 | ||||||||||||||
Total retail | 896 | 7 | 903 | 1,118 | 33 | 1,151 | ||||||||||||||
Total | $1,071 | $8 | $1,079 | $1,383 | $33 | $1,416 | ||||||||||||||
A summary of other nonperforming assets is as follows: | ||||||||||||||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance: | ||||||||||||||||||||
Commercial | $3 | $10 | ||||||||||||||||||
Retail | 39 | 40 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance | $42 | $50 | ||||||||||||||||||
Nonperforming assets consists primarily of other real estate owned and is presented in other assets on the Consolidated Balance Sheets. | ||||||||||||||||||||
A summary of key performance indicators is as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.19 | % | 0.31 | % | ||||||||||||||||
Nonperforming retail loans as a percentage of total loans and leases | 1 | 1.34 | ||||||||||||||||||
Total nonperforming loans and leases as a percentage of total loans and leases | 1.19 | 1.65 | ||||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.13 | 0.23 | ||||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.72 | 0.97 | ||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.85 | % | 1.2 | % | ||||||||||||||||
The following is an analysis of the age of the past due amounts (accruing and nonaccruing): | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | 30-89 Days Past Due | 90 Days or More Past Due | Total Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total Past Due | ||||||||||||||
Commercial | $30 | $93 | $123 | $61 | $96 | $157 | ||||||||||||||
Commercial real estate | 42 | 83 | 125 | 34 | 169 | 203 | ||||||||||||||
Leases | 2 | — | 2 | 24 | — | 24 | ||||||||||||||
Total commercial | 74 | 176 | 250 | 119 | 265 | 384 | ||||||||||||||
Residential, including originated home equity products | 227 | 568 | 795 | 259 | 662 | 921 | ||||||||||||||
Home equity products serviced by others | 42 | 52 | 94 | 43 | 60 | 103 | ||||||||||||||
Other secured retail | 79 | 16 | 95 | 66 | 16 | 82 | ||||||||||||||
Unsecured retail | 49 | 30 | 79 | 67 | 54 | 121 | ||||||||||||||
Total retail | 397 | 666 | 1,063 | 435 | 792 | 1,227 | ||||||||||||||
Total | $471 | $842 | $1,313 | $554 | $1,057 | $1,611 | ||||||||||||||
Impaired loans include: (1) nonaccruing larger balance commercial loans (greater than $3 million carrying value); and (2) commercial and retail TDRs. The following is a summary of impaired loan information by class: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Impaired Loans With a Related Allowance | Allowance on Impaired Loans | Impaired Loans Without a Related Allowance | Unpaid Contractual Balance | Total Recorded Investment in Impaired Loans | |||||||||||||||
Commercial | $116 | $14 | $53 | $195 | $169 | |||||||||||||||
Commercial real estate | — | — | 34 | 72 | 34 | |||||||||||||||
Total commercial | 116 | 14 | 87 | 267 | 203 | |||||||||||||||
Residential, including originated home equity products | 361 | 57 | 518 | 1,131 | 879 | |||||||||||||||
Home equity products serviced by others | 83 | 14 | 23 | 120 | 106 | |||||||||||||||
Other secured retail | 21 | 4 | 10 | 39 | 31 | |||||||||||||||
Unsecured retail | 198 | 41 | — | 198 | 198 | |||||||||||||||
Total retail | 663 | 116 | 551 | 1,488 | 1,214 | |||||||||||||||
Total | $779 | $130 | $638 | $1,755 | $1,417 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Impaired Loans With a Related Allowance | Allowance on Impaired Loans | Impaired Loans Without a Related Allowance | Unpaid Contractual Balance | Total Recorded Investment in Impaired Loans | |||||||||||||||
Commercial | $86 | $15 | $33 | $214 | $119 | |||||||||||||||
Commercial real estate | 76 | 8 | 44 | 221 | 120 | |||||||||||||||
Total commercial | 162 | 23 | 77 | 435 | 239 | |||||||||||||||
Residential, including originated home equity products | 355 | 59 | 497 | 1,081 | 852 | |||||||||||||||
Home equity products serviced by others | 91 | 11 | 21 | 125 | 112 | |||||||||||||||
Other secured retail | 23 | 3 | 12 | 43 | 35 | |||||||||||||||
Unsecured retail | 201 | 35 | — | 201 | 201 | |||||||||||||||
Total retail | 670 | 108 | 530 | 1,450 | 1,200 | |||||||||||||||
Total | $832 | $131 | $607 | $1,885 | $1,439 | |||||||||||||||
Additional information on impaired loans is as follows: | ||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $2 | $138 | $1 | $154 | ||||||||||||||||
Commercial real estate | — | 62 | — | 154 | ||||||||||||||||
Total commercial | 2 | 200 | 1 | 308 | ||||||||||||||||
Residential, including originated home equity products | 6 | 865 | 6 | 762 | ||||||||||||||||
Home equity products serviced by others | 1 | 106 | 1 | 118 | ||||||||||||||||
Other secured retail | 1 | 30 | (4 | ) | 36 | |||||||||||||||
Unsecured retail | 3 | 195 | 6 | 197 | ||||||||||||||||
Total retail | 11 | 1,196 | 9 | 1,113 | ||||||||||||||||
Total | $13 | $1,396 | $10 | $1,421 | ||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $2 | $141 | $2 | $169 | ||||||||||||||||
Commercial real estate | 1 | 70 | 1 | 172 | ||||||||||||||||
Total commercial | 3 | 211 | 3 | 341 | ||||||||||||||||
Residential, including originated home equity products | 19 | 835 | 9 | 727 | ||||||||||||||||
Home equity products serviced by others | 4 | 105 | 4 | 119 | ||||||||||||||||
Other secured retail | 1 | 29 | — | 35 | ||||||||||||||||
Unsecured retail | 8 | 188 | 8 | 185 | ||||||||||||||||
Total retail | 32 | 1,157 | 21 | 1,066 | ||||||||||||||||
Total | $35 | $1,368 | $24 | $1,407 | ||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||
A loan modification is identified as a TDR when the Company or a bankruptcy court grants the borrower a concession the Company would not otherwise make in response to the borrower’s financial difficulties. TDRs typically result from the Company's loss mitigation efforts and are undertaken in order to improve the likelihood of recovery and continuity of the relationship. The Company's loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower's financial needs. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forbearance, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for debt with risk similar to that of the restructured loan. TDRs for commercial loans and leases may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. | ||||||||||||||||||||
Because TDRs are impaired loans, the Company measures impairment by comparing the present value of expected future cash flows, or, when appropriate, to the fair value of collateral, to the loan’s recorded investment. Any excess of recorded investment over the present value of expected future cash flows or collateral value is recognized by creating a valuation allowance or increasing an existing valuation allowance. Any portion of the loan’s recorded investment the Company does not expect to collect as a result of the modification is charged off at the time of modification. | ||||||||||||||||||||
Commercial TDRs were $140 million and $167 million on September 30, 2014 and December 31, 2013, respectively. Retail TDRs totaled $1.2 billion on September 30, 2014 and December 31, 2013. Commitments to lend additional funds to debtors owing receivables which were TDRs were $48 million and $52 million on September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
The following table summarizes how loans were modified during the three months ended September 30, 2014, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014, and were paid off in full, charged off, or sold prior to September 30, 2014. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 5 | $— | $— | 10 | $2 | $2 | ||||||||||||||
Commercial real estate | 1 | — | — | 3 | 1 | 1 | ||||||||||||||
Total commercial | 6 | — | — | 13 | 3 | 3 | ||||||||||||||
Residential, including originated home equity products | 57 | 6 | 7 | 87 | 6 | 6 | ||||||||||||||
Home equity products serviced by others | 8 | — | — | — | — | — | ||||||||||||||
Other secured retail | 7 | — | — | 4 | — | — | ||||||||||||||
Unsecured retail | 513 | 3 | 3 | — | — | — | ||||||||||||||
Total retail | 585 | 9 | 10 | 91 | 6 | 6 | ||||||||||||||
Total | 591 | $9 | $10 | 104 | $9 | $9 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 3 | $— | $— | $— | $— | |||||||||||||||
Commercial real estate | — | — | — | — | — | |||||||||||||||
Total commercial | 3 | — | — | — | — | |||||||||||||||
Residential, including originated home equity products | 466 | 34 | 32 | (1 | ) | 2 | ||||||||||||||
Home equity products serviced by others | 35 | 2 | 2 | (1 | ) | — | ||||||||||||||
Other secured retail | 262 | 5 | 3 | — | 2 | |||||||||||||||
Unsecured retail | 346 | 6 | 6 | 1 | — | |||||||||||||||
Total retail | 1,109 | 47 | 43 | (1 | ) | 4 | ||||||||||||||
Total | 1,112 | $47 | $43 | ($1 | ) | $4 | ||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
The following table summarizes how loans were modified during the three months ended September 30, 2013, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2013, and were paid off in full, charged off, or sold prior to September 30, 2013. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 29 | $1 | $1 | 22 | $1 | $1 | ||||||||||||||
Commercial real estate | 6 | 4 | 4 | — | — | — | ||||||||||||||
Total commercial | 35 | 5 | 5 | 22 | 1 | 1 | ||||||||||||||
Residential, including originated home equity products | 102 | 11 | 12 | 11 | 1 | 1 | ||||||||||||||
Home equity products serviced by others | 4 | 1 | 1 | — | — | — | ||||||||||||||
Other secured retail | 29 | — | — | — | — | — | ||||||||||||||
Unsecured retail | 712 | 4 | 4 | — | — | — | ||||||||||||||
Total retail | 847 | 16 | 17 | 11 | 1 | 1 | ||||||||||||||
Total | 882 | $21 | $22 | 33 | $2 | $2 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 3 | $1 | $1 | $1 | $— | |||||||||||||||
Commercial real estate | 1 | — | — | (2 | ) | — | ||||||||||||||
Total commercial | 4 | 1 | 1 | (1 | ) | — | ||||||||||||||
Residential, including originated home equity products | 598 | 44 | 42 | 1 | 1 | |||||||||||||||
Home equity products serviced by others | 105 | 5 | 4 | 1 | 1 | |||||||||||||||
Other secured retail | 370 | 5 | 3 | — | 2 | |||||||||||||||
Unsecured retail | 541 | 10 | 10 | — | — | |||||||||||||||
Total retail | 1,614 | 64 | 59 | 2 | 4 | |||||||||||||||
Total | 1,618 | $65 | $60 | $1 | $4 | |||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
The following table summarizes how loans were modified during the nine months ended September 30, 2014, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014, and were paid off in full, charged off, or sold prior to September 30, 2014. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 20 | $7 | $7 | 38 | $4 | $4 | ||||||||||||||
Commercial real estate | 3 | — | — | 5 | 1 | 1 | ||||||||||||||
Total commercial | 23 | 7 | 7 | 43 | 5 | 5 | ||||||||||||||
Residential, including originated home equity products | 193 | 20 | 21 | 353 | 24 | 22 | ||||||||||||||
Home equity products serviced by others | 29 | 1 | 1 | 1 | — | — | ||||||||||||||
Other secured retail | 65 | 1 | 1 | 11 | — | — | ||||||||||||||
Unsecured retail | 1,698 | 9 | 9 | — | — | — | ||||||||||||||
Total retail | 1,985 | 31 | 32 | 365 | 24 | 22 | ||||||||||||||
Total | 2,008 | $38 | $39 | 408 | $29 | $27 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 5 | $— | $— | ($8 | ) | $— | ||||||||||||||
Commercial real estate | — | — | — | — | — | |||||||||||||||
Total commercial | 5 | — | — | (8 | ) | — | ||||||||||||||
Residential, including originated home equity products | 1,387 | 107 | 101 | (4 | ) | 7 | ||||||||||||||
Home equity products serviced by others | 144 | 6 | 6 | (1 | ) | — | ||||||||||||||
Other secured retail | 708 | 12 | 8 | — | 4 | |||||||||||||||
Unsecured retail | 1,199 | 22 | 22 | 2 | — | |||||||||||||||
Total retail | 3,438 | 147 | 137 | (3 | ) | 11 | ||||||||||||||
Total | 3,443 | $147 | $137 | ($11 | ) | $11 | ||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
The following table summarizes how loans were modified during the nine months ended September 30, 2013, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2013, and were paid off in full, charged off, or sold prior to September 30, 2013. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 100 | $5 | $5 | 106 | $5 | $5 | ||||||||||||||
Commercial real estate | 10 | 7 | 7 | 1 | — | — | ||||||||||||||
Total commercial | 110 | 12 | 12 | 107 | 5 | 5 | ||||||||||||||
Residential, including originated home equity products | 340 | 38 | 41 | 91 | 8 | 8 | ||||||||||||||
Home equity products serviced by others | 23 | 2 | 2 | 1 | — | — | ||||||||||||||
Other secured retail | 224 | 2 | 2 | 2 | — | — | ||||||||||||||
Unsecured retail | 2,054 | 11 | 11 | — | — | — | ||||||||||||||
Total retail | 2,641 | 53 | 56 | 94 | 8 | 8 | ||||||||||||||
Total | 2,751 | $65 | $68 | 201 | $13 | $13 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 6 | $1 | $1 | $1 | $— | |||||||||||||||
Commercial real estate | 1 | — | — | (3 | ) | — | ||||||||||||||
Total commercial | 7 | 1 | 1 | (2 | ) | — | ||||||||||||||
Residential, including originated home equity products | 1,648 | 129 | 122 | 6 | 7 | |||||||||||||||
Home equity products serviced by others | 250 | 12 | 9 | 1 | 3 | |||||||||||||||
Other secured retail | 1,217 | 13 | 10 | — | 3 | |||||||||||||||
Unsecured retail | 2,077 | 38 | 38 | (1 | ) | — | ||||||||||||||
Total retail | 5,192 | 192 | 179 | 6 | 13 | |||||||||||||||
Total | 5,199 | $193 | $180 | $4 | $13 | |||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
The table below summarizes TDRs that defaulted during the three months ended September 30, 2014 and 2013 within 12 months of their modification date. | ||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 5 | $4 | 7 | $1 | ||||||||||||||||
Commercial real estate | 1 | — | — | — | ||||||||||||||||
Total commercial | 6 | 4 | 7 | 1 | ||||||||||||||||
Residential, including originated home equity products | 247 | 22 | 289 | 19 | ||||||||||||||||
Home equity products serviced by others | 23 | — | 51 | — | ||||||||||||||||
Other secured retail | 32 | — | 84 | 1 | ||||||||||||||||
Unsecured retail | 224 | 3 | 414 | 6 | ||||||||||||||||
Total retail | 526 | 25 | 838 | 26 | ||||||||||||||||
Total | 532 | $29 | 845 | $27 | ||||||||||||||||
The table below summarizes TDRs that defaulted during the nine months ended September 30, 2014 and 2013 within 12 months of their modification date. | ||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 22 | $7 | 8 | $1 | ||||||||||||||||
Commercial real estate | 2 | 1 | 1 | — | ||||||||||||||||
Total commercial | 24 | 8 | 9 | 1 | ||||||||||||||||
Residential, including originated home equity products | 676 | 55 | 1,413 | 104 | ||||||||||||||||
Home equity products serviced by others | 69 | 1 | 201 | 4 | ||||||||||||||||
Other secured retail | 99 | 1 | 214 | 2 | ||||||||||||||||
Unsecured retail | 728 | 8 | 1,006 | 14 | ||||||||||||||||
Total retail | 1,572 | 65 | 2,834 | 124 | ||||||||||||||||
Total | 1,596 | $73 | 2,843 | $125 | ||||||||||||||||
For purposes of the tables above, a payment default is defined as being past due 90 days or more under the modified terms. Amounts represent the loan's recorded investment at the time of payment default. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to September 30, 2014 and 2013. If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell. The amount written off is charged to the ALLL. | ||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||
Most of the Company's business activity is with customers located in the New England, Mid-Atlantic and Mid-West regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of September 30, 2014 and December 31, 2013, the Company had a significant amount of loans collateralized by residential and commercial real estate. There are no significant concentrations in particular industries within the commercial loan portfolio. Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements. The Company's policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction. | ||||||||||||||||||||
Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values. These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interest-only and negative amortization residential mortgages, and loans with low introductory rates. Certain loans have more than one of these characteristics. | ||||||||||||||||||||
The following table presents balances of loans with these characteristics: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $847 | $2,183 | $1,291 | $— | $4,321 | |||||||||||||||
Interest only/negative amortization | 863 | — | — | — | 863 | |||||||||||||||
Low introductory rate | — | — | — | 100 | 100 | |||||||||||||||
Multiple characteristics and other | 56 | — | — | — | 56 | |||||||||||||||
Total | $1,766 | $2,183 | $1,291 | $100 | $5,340 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $1,054 | $2,798 | $1,581 | $— | $5,433 | |||||||||||||||
Interest only/negative amortization | 882 | — | — | — | 882 | |||||||||||||||
Low introductory rate | — | — | — | 119 | 119 | |||||||||||||||
Multiple characteristics and other | 96 | — | — | — | 96 | |||||||||||||||
Total | $2,032 | $2,798 | $1,581 | $119 | $6,530 | |||||||||||||||
GOODWILL
GOODWILL | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
GOODWILL | ' | |||||||||||
GOODWILL | ||||||||||||
Goodwill represents the excess of fair value of assets purchased over the purchase price. Since 1988, the Company has completed more than 25 acquisitions of banks or assets of banks. The changes in the carrying value of goodwill for the nine months ended September 30, 2014 and 2013 were: | ||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Total | |||||||||
Balance at December 31, 2012 | $6,393 | $4,918 | $11,311 | |||||||||
Impairment losses based on results of interim impairment testing | (4,435 | ) | — | (4,435 | ) | |||||||
Transfers | 178 | (178 | ) | — | ||||||||
Balance at September 30, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Balance at December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at September 30, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at September 30, 2014, and 2013. The accumulated impairment losses related to the Commercial Banking unit totaled $50 million at September 30, 2014 and 2013. | ||||||||||||
The Company performs an annual test for impairment of goodwill at a level of reporting referred to as a reporting unit. The Company has identified and allocated goodwill to the following reporting units based upon reviews of the structure of the Company's executive team and supporting functions, resource allocations and financial reporting processes: | ||||||||||||
• | Consumer Banking | |||||||||||
• | Commercial Banking | |||||||||||
The Company tested the value of goodwill as of June 30, 2013, and recorded an impairment charge of $4.4 billion relating to the Consumer Banking reporting unit. The impairment charge, which was a non-cash item, had minimal impact on the Company's regulatory capital ratios and liquidity, and for segment reporting purposes was included in Other. Refer to Note 19 "Business Segments" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information regarding segment reporting. | ||||||||||||
The valuation of goodwill is dependent on forward-looking expectations related to the performance of the U.S. economy and the associated financial performance of the Company. The prolonged delay in the full recovery of the U.S. economy, and the impact of that delay on earnings expectations, prompted a goodwill impairment test as of June 30, 2013. Although the U.S. economy has demonstrated signs of recovery, notably improvements in unemployment and housing, the pace and extent of these indicators, as well as in overall GDP, have lagged previous expectations. The impact of the slow recovery is most evident in the Company's Consumer Banking reporting unit. Forecasted economic growth for the U.S., coupled with the continuing impact of the new regulatory framework in the financial industry, have resulted in a deceleration of expected growth for the Consumer Banking reporting unit's future profits and an associated goodwill impairment. Refer to Note 1 "Significant Accounting Policies" in the Company's audited Consolidated Financial Statements for information regarding the impairment test. |
MORTGAGE_BANKING
MORTGAGE BANKING | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Mortgage Banking [Abstract] | ' | |||||||
MORTGAGE BANKING | ' | |||||||
MORTGAGE BANKING | ||||||||
In its mortgage banking business, the Company sells residential mortgage loans to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights of the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud, or servicing violations. This primarily occurs during a loan file review. | ||||||||
The Company received $1.1 billion and $3.6 billion of proceeds from the sale of residential mortgages in the nine months ended September 30, 2014 and 2013, respectively, and recognized gains on such sales of $25 million and $58 million in the nine months then ended, respectively. Pursuant to the standard representations and warranties obligations discussed in the preceding paragraph, the Company repurchased mortgage loans totaling $22 million and $30 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Mortgage servicing fees, a component of mortgage banking income, were $44 million and $49 million for the nine months ended September 30, 2014 and 2013, respectively. The Company recorded a valuation recovery of $8 million compared to a recovery of $42 million for its MSRs for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Changes related to MSRs were as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $208 | $215 | ||||||
Amount capitalized | 13 | 39 | ||||||
Amortization | (32 | ) | (41 | ) | ||||
Carrying amount before valuation allowance | 189 | 213 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 23 | 70 | ||||||
Valuation recovery | (8 | ) | (42 | ) | ||||
Balance at end of period | 15 | 28 | ||||||
Net carrying value of MSRs | $174 | $185 | ||||||
MSRs are presented in other assets on the Consolidated Balance Sheets. | ||||||||
The fair value of MSRs is estimated using a valuation model that calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors, which are determined based on current market conditions. The valuation model uses a static discounted cash flow methodology incorporating current market interest rates. A static model does not attempt to forecast or predict the future direction of interest rates; rather it estimates the amount and timing of future servicing cash flows using current market interest rates. The current mortgage interest rate influences the expected prepayment rate and therefore, the length of the cash flows associated with the servicing asset, while the discount rate determines the present value of those cash flows. Expected mortgage loan prepayment assumptions are obtained using the QRM Multi Component prepayment model. The Company periodically obtains third-party valuations of its MSRs to assess the reasonableness of the fair value calculated by the valuation model. | ||||||||
The key economic assumptions used to estimate the value of MSRs are presented in the following table: | ||||||||
September 30, | ||||||||
(dollars in millions) | 2014 | 2013 | ||||||
Fair value | $187 | $193 | ||||||
Weighted average life (in years) | 5.3 | 5.1 | ||||||
Weighted average constant prepayment rate | 12.2 | % | 13.9 | % | ||||
Weighted average discount rate | 10.3 | % | 10.8 | % | ||||
The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Weighted average life (in years) | 5.7 | 6.1 | ||||||
Weighted average constant prepayment rate | 11.7 | % | 12.6 | % | ||||
Weighted average discount rate | 10.3 | % | 10.5 | % | ||||
The sensitivity analysis below as of September 30, 2014 and 2013, presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical. The effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (for example, changes in interest rates, which drive changes in prepayment speeds, could result in changes in the discount rates), which might amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. | ||||||||
Nine Months Ended September 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Prepayment rate: | ||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $6 | $7 | ||||||
Decline in fair value from 100 basis points adverse change in interest rates | 11 | 10 | ||||||
Weighted average discount rate: | ||||||||
Decline in fair value from 50 basis points adverse change | 3 | 3 | ||||||
Decline in fair value from 100 basis points adverse change | 6 | 6 | ||||||
BORROWED_FUNDS
BORROWED FUNDS | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
BORROWED FUNDS | ' | |||||||
BORROWED FUNDS | ||||||||
The following is a summary of the Company’s short-term borrowed funds: | ||||||||
(in millions) | As of September 30, 2014 | As of December 31, 2013 | ||||||
Federal funds purchased | $— | $689 | ||||||
Securities sold under agreements to repurchase | 5,184 | 4,102 | ||||||
Other short-term borrowed funds | 6,715 | 2,251 | ||||||
Total short-term borrowed funds | $11,899 | $7,042 | ||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||
(dollars in millions) | As of and For the Nine Months Ended September 30, 2014 | As of and For the Year Ended December 31, 2013 | ||||||
Weighted-average interest rate at period end: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.12 | % | 0.09 | % | ||||
Other short-term borrowed funds | 0.25 | 0.2 | ||||||
Maximum amount outstanding at month-end during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $7,022 | $5,114 | ||||||
Other short-term borrowed funds | 7,702 | 2,251 | ||||||
Average amount outstanding during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,908 | $2,400 | ||||||
Other short-term borrowed funds | 5,479 | 259 | ||||||
Weighted-average interest rate during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.08 | % | 0.31 | % | ||||
Other short-term borrowed funds | 0.26 | 0.44 | ||||||
The following is a summary of the Company’s long-term borrowed funds: | ||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||
Citizens Financial Group, Inc.: | ||||||||
4.150% fixed rate subordinated debt, due 2022 | $350 | $350 | ||||||
5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023(1) | 333 | 333 | ||||||
4.771% fixed rate subordinated debt, due 2023(1) | 333 | 333 | ||||||
4.691% fixed rate subordinated debt, due 2024(1) | 334 | 334 | ||||||
4.153% fixed rate subordinated debt, due 2024(1) | 333 | — | ||||||
4.023% fixed rate subordinated debt, due 2024(1) | 333 | — | ||||||
Banking Subsidiaries: | ||||||||
Federal Home Loan advances due through 2033 | 23 | 25 | ||||||
Other | 23 | 30 | ||||||
Total long-term borrowed funds | $2,062 | $1,405 | ||||||
(1) Intercompany borrowed funds with the RBS Group. See Note 14 “Related Party Transactions” to the Company's unaudited interim Consolidated Financial Statements in Part I, Item 1 — Financial Information included elsewhere in this report. | ||||||||
Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $11.0 billion and $4.2 billion at September 30, 2014 and December 31, 2013, respectively. The Company’s available FHLB borrowing capacity was $3.5 billion and $8.2 billion at September 30, 2014 and December 31, 2013, respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, such as investment securities and loans, is pledged to provide borrowing capacity at the FRB. At September 30, 2014, the Company’s unused secured borrowing capacity was approximately $26.0 billion, which includes free securities, FHLB borrowing capacity, and FRB discount window capacity. | ||||||||
The following is a summary of maturities for the Company’s long-term borrowed funds at September 30, 2014: | ||||||||
Year | (in millions) | |||||||
2015 or on demand | $1 | |||||||
2016 | 5 | |||||||
2017 | 13 | |||||||
2018 | 11 | |||||||
2019 | 1 | |||||||
2020 and thereafter | 2,031 | |||||||
Total | $2,062 | |||||||
PREFERRED_STOCK
PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
PREFERRED STOCK | ' |
PREFERRED STOCK | |
As of September 30, 2014, the Company had authorized 100,000,000 shares of $25.00 par value undesignated preferred stock. These undesignated shares were authorized on April 9, 2014, by resolution of the Board of Directors. The Company's Board of Directors (the "Board of Directors") or any authorized committee thereof are authorized to provide for the issuance of these shares in one or more series, and by filing a certificate pursuant to applicable law of the State of Delaware, to establish or change from time to time the number of shares of each such series, and to fix the designations, powers, including voting powers, full or limited, or no voting powers, preferences and the relative, participating, optional or other special rights of the shares of each series and any qualifications, limitations and restrictions thereof. | |
Prior to April 9, 2014, the Company had authorized 30,000 of $1.00 par value non-cumulative, non-voting perpetual preferred stock. That preferred stock ranked senior to the common stock of the Company with respect to dividend rights upon liquidation or dissolution of the Company. The stock was not convertible into any other property of the Company, nor was it redeemable by either the Company or the holder thereof. Dividends were non-cumulative and were payable quarterly at LIBOR plus 180 basis points, if and when declared by the Board of Directors. In the event of any liquidation, dissolution or winding up of the Company, holders of each share of the preferred stock outstanding were entitled to be paid, out of the assets of the Company available for distribution to stockholders, before any payment was made to the holders of common stock, an amount equal to $100,000 per share of preferred stock then issued and outstanding. | |
There were no shares of preferred stock issued and outstanding during 2014 or 2013. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFITS | ' | |||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFITS | ||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||
The Company maintains a non-contributory pension plan (the “Plan” or “qualified plan”) that was closed to new hires and re-hires effective January 1, 2009 and frozen to all participants effective December 31, 2012. Benefits under the Plan are based on employees' years of service and highest 5-year average eligible compensation. The Plan is funded on a current basis, in compliance with the requirements of ERISA. The Company also provides an unfunded, non-qualified supplemental retirement plan (the “non-qualified plan”), which was closed and frozen consistent with the qualified plan. | ||||||||||||||||||||||||||||||||||||||||||
RBS Group restructured the administration of employee benefit plans during 2008. As a result, the qualified and non-qualified pension plans of certain RBS Group subsidiaries referred to as the Company's "Affiliates" merged with the Company's pension plans. In September 2014, in preparation for the IPO, the Company divested portions of the qualified and non-qualified plans to newly established plans sponsored by the Affiliates. Citizens remains the sponsor of the original plans, which provides benefits for its current and former employees. RBS is the plan sponsor of the newly established plans, which provide benefits for current and former employees of the Affiliates. As a result of this divestiture, which was recorded as a plan settlement, the Company transferred $114 million of plan assets and $148 million of plan liabilities from the qualified plan to the new plan for Affiliates. The Company also transferred liabilities of $7 million related to the non-qualified plan to the new plan established for Affiliates. | ||||||||||||||||||||||||||||||||||||||||||
The following table presents the components of net periodic (income) cost for the Company's qualified and non-qualified plans: | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | Qualified Plan | Non-Qualified Plan | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Service cost | $1 | $1 | $— | $— | $1 | $1 | $3 | $3 | $— | $— | $3 | $3 | ||||||||||||||||||||||||||||||
Interest cost | 11 | 10 | 1 | 1 | 12 | 11 | 33 | 31 | 3 | 3 | 36 | 34 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (18 | ) | (17 | ) | — | — | (18 | ) | (17 | ) | (53 | ) | (51 | ) | — | — | (53 | ) | (51 | ) | ||||||||||||||||||||||
Amortization of actuarial loss | 2 | 3 | — | — | 2 | 3 | 6 | 9 | 1 | 1 | 7 | 10 | ||||||||||||||||||||||||||||||
Net periodic pension (income) cost | ($4 | ) | ($3 | ) | $1 | $1 | ($3 | ) | ($2 | ) | ($11 | ) | ($8 | ) | $4 | $4 | ($7 | ) | ($4 | ) | ||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||
The Company and Affiliates merged their postretirement plans into a single postretirement plan in 2008 and continue to provide health care insurance benefits for certain retired employees and their spouses. In preparation for the IPO, the Company divested the portion of the postretirement plan associated with the Affiliates in September 2014. As a result, the Company transferred liabilities of approximately $7 million to the Affiliates. | ||||||||||||||||||||||||||||||||||||||||||
Employees enrolled in medical coverage immediately prior to retirement and meeting eligibility requirements can elect retiree medical coverage. Employees and covered spouses can continue coverage at the full cost, except for a small group described below. However, coverage must be elected at the time of retirement and cannot be elected at a future date. Spouses may be covered only if the spouse is covered at the time of the employee’s retirement. | ||||||||||||||||||||||||||||||||||||||||||
The Company reviews coverage on an annual basis and reserves the right to modify or cancel coverage at any renewal date. The Company’s cost sharing for certain full-time employees, who were hired prior to August 1, 1993 with 25 years of service who reach retirement age (under age 65) while employed by the Company is 70%; for those with 15-24 years of service, the Company’s share is 50%. Also, the Company shares in the cost for retiree medical benefits for a closed group of grandfathered arrangements from acquisitions. A small, closed group of retirees receive life insurance coverage. Effective July 1, 2014, the Company utilizes a private health care exchange to provide medical and dental benefits to current and future Medicare-eligible plan participants. The Company provides a fixed subsidy to a small, closed group of retirees and spouses based on the subsidy levels prior to July 1, 2014; retirees and spouses pay the cost of benefits in excess of the fixed subsidy. | ||||||||||||||||||||||||||||||||||||||||||
As a result of divesting the portion of the pension and other benefit plans associated with the Affiliates, the Company recorded an $18 million cash liability due to RBS. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Income Tax Provision (Benefit) | |
The provision for income taxes was $85 million and $76 million for the three months ended September 30, 2014 and 2013, respectively. This resulted in an effective tax rate of 31% and 35% for the three months ended September 30, 2014 and 2013, respectively. The provision (benefit) for income taxes was $317 million and $(98) million for the nine months ended September 30, 2014 and 2013, respectively. The provision represented an effective tax rate of 32% and 3% for the nine months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014, the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of tax credits and the permanent benefit of tax-exempt income. For the nine months ended September 30, 2013, the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of the tax rate impact of a goodwill impairment charge. | |
Deferred Tax Liability | |
At September 30, 2014, the Company reported a net deferred tax liability of $354 million, compared to a $199 million liability as of December 31, 2013. The increase in the net deferred tax liability is primarily attributable to the utilization of net operating loss and tax credit carryforwards, in addition to a decrease in the unrealized loss reported on securities AFS, derivative instruments, and hedging activities, which were both partially offset by a decrease in the deferred tax liability related to temporary differences. |
DERIVATIVES
DERIVATIVES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
DERIVATIVES | ' | |||||||||||||||||||
DERIVATIVES | ||||||||||||||||||||
In the normal course of business, the Company enters into a variety of derivative transactions in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company does not use derivatives for speculative purposes. | ||||||||||||||||||||
The Company’s derivative instruments are recognized on the Consolidated Balance Sheets at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 15 "Fair Value Measurements" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | ||||||||||||||||||||
The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Notional Amount(1) | Derivative Assets | Derivative Liabilities | Notional Amount(1) | Derivative Assets | Derivative Liabilities | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | $5,000 | $22 | $203 | $5,500 | $23 | $412 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 28,940 | 541 | 452 | 29,355 | 654 | 558 | ||||||||||||||
Foreign exchange contracts | 8,278 | 137 | 132 | 7,771 | 94 | 87 | ||||||||||||||
Other contracts | 686 | 6 | 10 | 569 | 7 | 10 | ||||||||||||||
Total derivatives not designated as hedging instruments | 684 | 594 | 755 | 655 | ||||||||||||||||
Gross derivative fair values | 706 | 797 | 778 | 1,067 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(2) | (159 | ) | (159 | ) | (128 | ) | (128 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets(3) | $547 | $638 | $650 | $939 | ||||||||||||||||
(1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. | ||||||||||||||||||||
(2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||||||||||||||||||||
(3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 "Securities" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information. | ||||||||||||||||||||
The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. | ||||||||||||||||||||
Institutional derivatives | ||||||||||||||||||||
The institutional derivatives portfolio primarily consists of interest rate swap agreements that are used to hedge the interest rate risk associated with the Company’s investment securities, loans and financing liabilities (i.e., borrowed funds, deposits, etc.). The goal of the Company’s interest rate hedging activities is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect net interest income. | ||||||||||||||||||||
The Company enters into certain interest rate swap agreements to hedge the risk associated with floating rate loans. By entering into pay-floating/receive-fixed interest rate swaps, the Company was able to minimize the variability in the cash flows of these assets due to changes in interest rates. The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s borrowed funds and deposits. By entering into a pay-fixed/receive-floating interest rate swap, a portion of these liabilities has been effectively converted to a fixed rate liability for the term of the interest rate swap agreement. | ||||||||||||||||||||
Customer derivatives | ||||||||||||||||||||
The customer derivatives portfolio consists of interest rate swap agreements and option contracts that are transacted to meet the financing needs of the Company’s customers. Offsetting swap and cap agreements are simultaneously transacted to effectively eliminate the Company’s market risk associated with the customer derivative products. The customer derivatives portfolio also includes foreign exchange contracts that are entered into on behalf of customers for the purpose of hedging exposure related to cash orders and loans and deposits denominated in foreign currency. The primary risks associated with these transactions arise from exposure to changes in foreign currency exchange rates and the ability of the counterparties to meet the terms of the contract. To manage this market risk, the Company simultaneously enters into offsetting foreign exchange contracts. | ||||||||||||||||||||
Residential loan derivatives | ||||||||||||||||||||
The Company enters into residential loan commitments that allow residential mortgage customers to lock in the interest rate on a residential mortgage while the loan undergoes the underwriting process. The Company also uses forward sales contracts to protect the value of residential mortgage loans and loan commitments that are being underwritten for future sale to investors in the secondary market. | ||||||||||||||||||||
The Company has certain derivative transactions that are designated as hedging instruments described as follows: | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
The Company’s total institutional hedging portfolio qualifies for hedge accounting. This includes interest rate swaps that are designated in highly effective cash flow hedging relationships. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, the Company uses dollar offset or regression analysis at the hedge’s inception, and monthly thereafter to assess whether the derivatives are expected to be, or have been, highly effective in offsetting changes in the hedged item’s expected cash flows. The Company discontinues hedge accounting when it is determined that a derivative is not expected to be or has ceased to be effective as a hedge, and then reflects changes in fair value in earnings after termination of the hedge relationship. | ||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||
The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets and financing liabilities (including its borrowed funds and deposits). All of these swaps have been deemed as highly effective cash flow hedges. The effective portion of the hedging gains and losses associated with these hedges are recorded in OCI; the ineffective portion of the hedging gains and losses is recorded in earnings (other income). Hedging gains and losses on derivative contracts reclassified from OCI to current period earnings are included in the line item in the accompanying Consolidated Statements of Operations in which the hedged item is recorded, and in the same period that the hedged item affects earnings. During the next 12 months, approximately $23 million of net loss (pre-tax) on derivative instruments included in OCI is expected to be reclassified to net interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||
Hedging gains and losses associated with the Company’s cash flow hedges are immediately reclassified from OCI to current period earnings (other income) if it becomes probable that the hedged forecasted transactions will not occur during the originally specified time period. | ||||||||||||||||||||
The following table summarizes certain information related to the Company’s cash flow hedges: | ||||||||||||||||||||
The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Effective portion of gain (loss) recognized in OCI(1) | $27 | $2 | $217 | ($191 | ) | |||||||||||||||
Amounts reclassified from OCI to interest income(2) | 18 | 18 | 54 | 38 | ||||||||||||||||
Amounts reclassified from OCI to interest expense(2) | (23 | ) | (48 | ) | (79 | ) | (160 | ) | ||||||||||||
Amounts reclassified from OCI to other income(3) | — | — | — | (2 | ) | |||||||||||||||
(1) The cumulative effective gains and losses on the Company's cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | ||||||||||||||||||||
(2) This amount includes both (a) the amortization of effective gains and losses associated with the Company's terminated cash flow hedges and (b) the current reporting period's interest settlements realized on the Company's active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | ||||||||||||||||||||
(3) This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other income line item on the Consolidated Statements of Operations. | ||||||||||||||||||||
Economic Hedges | ||||||||||||||||||||
The Company’s customer derivatives are recorded on the Consolidated Balance Sheets at fair value. These include interest rate and foreign exchange derivative contracts that are transacted to meet the hedging and financing needs of the Company’s customers. Mark-to-market adjustments to the fair value of customer related interest rate contracts are included in other income in the accompanying Consolidated Statements of Operations. Mark-to-market adjustments to the fair value of foreign exchange contracts relating to foreign currency loans are included in interest and fees on loans and leases in the accompanying Consolidated Statements of Operations, while all other foreign currency contract fair value changes are included in foreign exchange and trade finance fees. In both cases, the mark-to-market gains and losses associated with the customer derivatives are mitigated by the mark-to-market gains and losses on the offsetting interest rate and foreign exchange derivative contracts transacted. | ||||||||||||||||||||
The Company’s residential loan derivatives (including residential loan commitments and forward sales contracts) are recorded on the Consolidated Balance Sheets at fair value. Mark-to-market adjustments to the fair value of residential loan commitments and forward sale contracts are included in noninterest income under mortgage banking fees. | ||||||||||||||||||||
The following table summarizes certain information related to the Company’s economic hedges: | ||||||||||||||||||||
The Effect of Customer Derivatives and Economic Hedges on Net Income | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts(1) | $2 | $55 | $151 | ($95 | ) | |||||||||||||||
Customer foreign exchange contracts(1) | (60 | ) | 32 | (54 | ) | 22 | ||||||||||||||
Residential loan commitments(3) | (4 | ) | 48 | 4 | 8 | |||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts(1) | 5 | (45 | ) | (130 | ) | 133 | ||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts(2) | 59 | (33 | ) | 52 | (20 | ) | ||||||||||||||
Forward sale contracts(3) | 2 | (21 | ) | (2 | ) | 19 | ||||||||||||||
Total | $4 | $36 | $21 | $67 | ||||||||||||||||
(1) Reported in other income on the Consolidated Statements of Operations. | ||||||||||||||||||||
(2) Reported in foreign exchange and trade finance fees on the Consolidated Statements of Operations. | ||||||||||||||||||||
(3) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Commitments | ||||||||
Commitments to extend credit are agreements to lend to customers in accordance with conditions contractually agreed upon in advance. Generally, the commitments have fixed expiration dates or termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. | ||||||||
When-issued securities are agreements to purchase securities that have been authorized for issuance but not yet issued. The fair value of when-issued securities is reflected in the Consolidated Balance Sheets at trade date. | ||||||||
On May 29, 2014, the Company entered into an agreement to purchase newly originated auto loans on a quarterly basis in future periods. For the first year, the agreement requires the purchase of a minimum of $250 million of outstanding balances to a maximum of $600 million per quarterly period. For quarterly periods after the first year, the minimum and maximum purchases are $400 million and $600 million, respectively. The agreement automatically renews until terminated by either party. The Company may cancel the agreement at will with payment of a variable termination fee. After three years, there is no termination fee. | ||||||||
During 2003, the Company entered into a 25-year agreement to acquire the naming and marketing rights of a baseball stadium in Pennsylvania. The Company has paid $3 million on this contract for the nine months ended September 30, 2014 and $3 million for the year ended December 31, 2013 and is obligated to pay $51 million over the remainder of the contract. | ||||||||
Letters of Credit | ||||||||
Standby letters of credit, both financial and performance, are issued by the Company for its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project (performance). Commercial letters of credit are used to facilitate the import of goods. The commercial letter of credit is used as the method of payment to the Company’s customers’ suppliers. The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments, net of the value of collateral held. Standby letters of credit and commercial letters of credit are issued for terms of up to ten years and one year, respectively. | ||||||||
Generally, letters of credit are collateralized by cash, accounts receivable, inventory or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amounts of reserves for unfunded commitments. | ||||||||
The Company recognizes a liability on the Consolidated Balance Sheets representing its obligation to stand ready to perform over the term of the standby letters of credit in the event that the specified triggering events occur. The liability for these guarantees at September 30, 2014 and December 31, 2013 is $3 million. | ||||||||
Risk Participation Agreements | ||||||||
RPAs are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. Under the terms of these agreements, the “participating bank” receives a fee from the “lead bank” in exchange for the guarantee of reimbursement if the customer defaults on an interest rate swap. The interest rate swap is transacted such that any and all exchanges of interest payments (favorable and unfavorable) are made between the lead bank and the customer. In the event that an early termination of the swap occurs and the customer is unable to make a required close out payment, the participating bank assumes that obligation and is required to make this payment. | ||||||||
RPAs where the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. RPAs where the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The Company’s estimate of the credit exposure associated with its risk participations-in as of September 30, 2014 and December 31, 2013 is $16 million and $17 million, respectively. The current amount of credit exposure is spread out over 73 counterparties. RPAs generally have terms ranging from 1-5 years; however, certain outstanding agreements have terms as long as 11 years. | ||||||||
Other Guarantees | ||||||||
The Company has issued a guarantee to RBS, for a fee, whereby the Company will absorb credit losses related to the sale of option contracts by RBS to customers of the Company. There were outstanding option contracts with a notional value of $404 thousand and $2 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||
The following is a summary of outstanding off-balance sheet arrangements: | ||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,333 | $53,987 | ||||||
Financial standby letters of credit | 2,498 | 2,556 | ||||||
Performance letters of credit | 94 | 149 | ||||||
Commercial letters of credit | 74 | 64 | ||||||
Marketing rights | 51 | 54 | ||||||
Risk participation agreements | 16 | 17 | ||||||
Residential mortgage loans sold with recourse | 11 | 13 | ||||||
Total | $58,077 | $56,840 | ||||||
Contingencies | ||||||||
The Company operates in a legal and regulatory environment that exposes it to potentially significant risks. A certain amount of litigation ordinarily results from the nature of the Company’s banking and other businesses. The Company is a party to legal proceedings, including class actions. It is also the subject of investigations, reviews, and regulatory matters arising out of its normal business operations, which, in some instances, relate to concerns about unfair and/or deceptive practices and mis-selling of certain products. In addition, the Company engages in discussions with relevant governmental and regulatory authorities on an ongoing and regular basis regarding various issues, and it is possible that any issues discussed or identified may result in investigatory or other action being taken. Litigation and regulatory matters may result in settlements, damages, fines, penalties, public or private censure, increased costs, required remediation, restrictions on business activities, or other impacts on the Company. | ||||||||
In these disputes and proceedings, the Company contests liability and the amount of damages as appropriate. Given their complex nature, it may be years before some of these matters are finally resolved. Moreover, before liability can be reasonably estimated for a claim, numerous legal and factual issues may need to be examined, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal issues relevant to the proceedings in question. | ||||||||
The Company cannot predict with certainty if, how, or when such claims will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. The Company recognizes a provision for a claim when, in the opinion of management after seeking legal advice, it is probable that a liability exists and the amount of loss can be reasonably estimated. In many proceedings, however, it is not possible to determine whether any loss is probable or to estimate the amount of any loss. In each of the matters described below, the Company is unable to estimate the liability in excess of any provision accrued, if any, that might arise or its effects on the Company’s Consolidated Statements of Operations or Consolidated Cash Flows in any particular period. | ||||||||
Set out below are descriptions of significant legal matters involving the Company. Based on information currently available, the advice of legal and other counsel, and established reserves, management believes that the aggregate liabilities, if any, potentially arising from these proceedings will not have a materially adverse effect on the Company’s unaudited interim Consolidated Financial Statements. | ||||||||
Consumer Products Matters | ||||||||
The activities of the Company’s bank subsidiaries are subject to extensive laws and regulations concerning unfair or deceptive acts or practices in connection with customer products. Certain of the bank subsidiaries’ practices with respect to overdraft protection and other consumer products have not met applicable standards. The bank subsidiaries have implemented and are continuing to implement changes to improve and bring their practices in accordance with regulatory guidance. | ||||||||
In April 2013, the bank subsidiaries consented to the issuance of orders by the OCC and the FDIC (the Consent Orders). In the Consent Orders (which are publicly available and will remain in effect until terminated by the regulators), the bank subsidiaries neither admitted nor denied the regulators’ findings that they had engaged in deceptive marketing and implementation of the bank’s overdraft protection program, checking rewards programs, and stop-payment process for pre-authorized recurring electronic fund transfers. Under the Consent Orders, the bank subsidiaries paid a total of $10 million in civil monetary penalties and are required to develop plans to provide restitution to affected customers (the amount of which is anticipated to be approximately $8 million) to cease and desist any operations in violation of Section 5 of the Federal Trade Commission Act, and to submit to the regulators periodic written progress reports regarding compliance with the Consent Orders. In addition, Citizens Bank, N.A. agreed to take certain remedial actions to improve its compliance risk management systems and to create a comprehensive action plan designed to achieve compliance with the Consent Orders. Restitution plans have been prepared and submitted for approval, and Citizens Bank, N.A. has submitted for approval, and is in the process of implementing, its action plan for compliance with the Consent Orders, as well as updated policies, procedures, and programs related to its compliance risk management systems. | ||||||||
The Company's banking subsidiaries have engaged in discussions with regulators regarding, among other things, certain identity theft and debt cancellation products, certain overdraft fees, signature debit card fees, the bank subsidiaries' policies and practices with respect to consumer complaints process, identifying and correcting errors in customer deposits, and the charging of cost-based credit card late payment fees. The banking subsidiaries have paid restitution regarding some of these practices and it is probable that there will be additional restitution to certain affected customers in connection with certain of these practices. In addition, the banking subsidiaries could face formal administrative enforcement actions from their federal supervisory agencies, including the assessment of civil monetary penalties and restitution, relating to the past practices and policies identified above and other consumer products, as well as potential civil litigation. The Company does not expect that the aggregate of amounts paid in connection with these matters will have a material adverse effect on the Company’s unaudited interim Consolidated Financial Statements. | ||||||||
Telephone Consumer Protection Act Litigation | ||||||||
The Company is a defendant in a purported class action complaint filed in December 2013 in the United States District Court for the Southern District of California pursuant to the Telephone Consumer Protection Act. The named plaintiff purports to represent a "national class" of customers who allegedly received automated calls to their cell phones from the bank or its agents, without customer consent, in violation of the Telephone Consumer Protection Act. The Company is vigorously defending this matter. | ||||||||
LIBOR Litigation | ||||||||
The Company is a defendant in lawsuits in which allegations have been made that its parent company, RBS Group, manipulated U.S. dollar LIBOR to the detriment of the Company's customers. The lawsuits include a purported class action on behalf of borrowers of the Company whose interest rates were tied to U.S. dollar LIBOR. The plaintiffs in these cases assert various theories of liability, including fraud, negligent misrepresentation, breach of contract, and unjust enrichment. The Company is vigorously defending these matters. | ||||||||
Foreclosure-Related Expenses | ||||||||
In May 2013, the civil division of the U.S. Attorney's Office for the Southern District of New York served a subpoena pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 seeking information regarding home mortgage foreclosure expenses submitted for reimbursement to the United States Department of Housing and Urban Development, FNMA, or FHLMC. The Company is cooperating with the investigation. | ||||||||
Mortgage Repurchase Demands | ||||||||
The Company is an originator and servicer of residential mortgages and routinely sells such mortgage loans in the secondary market and to government-sponsored entities. In the context of such sales, the Company makes certain representations and warranties regarding the characteristics of the underlying loans and, as a result, may be contractually required to repurchase such loans or indemnify certain parties against losses for certain breaches of those representations and warranties. Between the start of January 2009 and the end of September 30, 2014, the Company has received approximately $154 million in repurchase demands and $98 million in indemnification payment requests in respect of loans originated, for the most part, since 2003. Of those claims presented, $85 million was paid to repurchase residential mortgage loans, and $33 million was incurred for indemnification costs to make investors whole. The Company repurchased mortgage loans totaling $22 million and $30 million for the nine months ended September 30, 2014 and 2013, respectively. The Company incurred indemnification costs of $7 million and $8 million for the nine months ended September 30, 2014 and 2013, respectively. The Company cannot estimate what the future level of repurchase demands will be or the Company’s ultimate exposure, and cannot give any assurance that its historical experience will continue in the future. It is possible that the volume of repurchase demands will increase. In addition to the above, the Company has since December 2013 been responding to subpoenas issued by the Office of the Inspector General for the Federal Housing Finance Agency seeking information about loans sold to FNMA and the FHLMC from 2003 through 2011. |
DIVESTITURES_AND_BRANCH_ASSETS
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE | 9 Months Ended |
Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE | ' |
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE | |
In June 2014, the Company sold 103 retail branches located in Illinois, including certain customer deposits of $4.8 billion and selected loans of $1.0 billion (primarily middle market, small business, home equity and credit card balances). As a result of this transaction, the Company recorded a gain on sale of $288 million consisting of, $286 million related to the deposits, a gain on sale of $11 million related to the loans and $9 million loss on sale of other branch assets. For the nine months ended September 30, 2014, the corresponding interest and fees on these loans was $20 million and interest expense on deposits was $4 million. The Company has agreed to service the credit card accounts sold to the purchaser until September 2014. At such time, the Company is expected to complete all exit activities associated with this transaction. As a result of this transaction, the related assets and liabilities were classified as held for sale as of December 31, 2013. See Note 17 "Divestitures and Branch Assets and Liabilities Held for Sale" in the Company's audited Consolidated Financial Statements for further details. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||
The Company is an indirect subsidiary of RBSG. During the period, the Company entered into certain agreements with RBS Group that will provide a framework for its ongoing relationship with the RBS Group. Specifically, the Company entered into the following agreements with RBSG or other affiliates of RBS Group: Separation and Shareholder Agreement, Registration Rights Agreement, Trade Mark License Agreement, Amended and Restated Master Services Agreement, and Transitional Services Agreements. These agreements are attached in Part II, Item 6 of this report. | ||||||||||||||
The following is a summary of inter-company borrowed funds: | ||||||||||||||
(dollars in millions) | Related Party | Interest Rate | Maturity Date | September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||||||
Subordinated debt | RBSG | 4.02% | Oct-24 | $333 | $— | |||||||||
RBSG | 4.15% | Jul-24 | 333 | — | ||||||||||
RBSG | 4.69% | Jan-24 | 334 | 334 | ||||||||||
RBSG | 4.77% | Oct-23 | 333 | 333 | ||||||||||
RBS | 5.16% | Jun-23 | 333 | 333 | ||||||||||
Total interest expense recorded on inter-company subordinated debt was $17 million and $4 million for the three months ended September 30, 2014 and 2013, respectively, and $42 million and $6 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
The Company maintained a $50 million revolving line of credit at December 31, 2013 with RBS. This line of credit was not drawn upon at December 31, 2013, expired on January 31, 2014, and was not renewed. No interest expense was incurred on this revolving line of credit for the nine months ended September 30, 2013. | ||||||||||||||
The Company enters into interest rate swap agreements with RBS for the purpose of reducing the Company’s exposure to interest rate fluctuations. As of September 30, 2014, the total notional amount of swaps outstanding was $5.0 billion which pay fixed rates ranging from 1.78% to 4.30% and receive overnight fed funds rate and one month LIBOR with maturities from 2016 through 2023. As of December 31, 2013, the total notional amount of swaps outstanding was $5.5 billion, all of which paid fixed rates ranging from 1.78% to 5.47% and received overnight fed funds rate with maturities from 2014 through 2023. Included in these balances were $4.0 billion of receive-fixed swaps that had been executed as of September 30, 2014 and 2013 as part of a new hedging program implemented during the quarter ended March 31, 2013. The Company recorded net interest expense of $1 million and $31 million for the three months ended September 30, 2014 and 2013, respectively, and $22 million and $123 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
In order to meet the financing needs of its customers, the Company enters into interest rate swap and cap agreements with its customers and simultaneously enters into offsetting swap and cap agreements with RBS. The Company earns a spread equal to the difference between rates charged to the customer and rates charged by RBS. The notional amount of these interest rate swap and cap agreements outstanding with RBS was $10.6 billion and $13.4 billion at September 30, 2014 and December 31, 2013, respectively. The Company recorded income of $5 million for the three months ended September 30, 2014 and expense of $130 million for the nine months ended September 30, 2014. For the three months ended September 30, 2013 the Company recorded expense of $44 million and income of $132 million for the nine months ended September 30, 2013 within other income. | ||||||||||||||
Also to meet the financing needs of its customers, the Company enters into a variety of foreign currency denominated products, such as loans, deposits and foreign exchange contracts. To manage the foreign exchange risk associated with these products, the Company simultaneously enters into offsetting foreign exchange contracts with RBS. The Company earns a spread equal to the difference between rates charged to the customer and rates charged by RBS. The notional amount of foreign exchange contracts outstanding with RBS was $5.0 billion and $4.6 billion at September 30, 2014 and December 31, 2013, respectively. The Company recorded income within foreign exchange and trade finance fees of $59 million and $52 million for the three and nine months ended September 30, 2014, respectively. The Company recorded expense of $33 million and $20 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||
The Company receives income for providing services and referring customers to RBS. The Company also shares office space with certain RBS entities for which rent expense and/or income is recorded in occupancy expense. The total fee income, net of occupancy expense, was $5 million and $7 million for the three months ended September 30, 2014 and 2013, respectively, and for the nine months ended September 30, 2014 and 2013 was $13 million and $19 million, respectively. | ||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, the Company paid $333 million and $666 million, respectively, of common stock dividends to RBS as part of the exchange transactions described in "MD&A - Capital" included elsewhere in this report. Additionally, the Company paid $50 million of regular dividends to RBS for the three months ended September 30, 2014 and 2013, respectively, and $85 million and $145 million of regular dividends to RBS for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||
The Company, as a matter of policy and during the ordinary course of business with underwriting terms similar to those offered to the public, has made loans to directors and executive officers and their immediate families, as well as their affiliated companies. Such loans amounted to $126 million and $78 million at September 30, 2014 and December 31, 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||
As discussed in Note 1 “Significant Accounting Policies” in the Company’s audited Consolidated Financial Statements, the Company measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. The Company also applies the fair value measurement guidance to determine amounts reported for certain disclosures in this Note for assets and liabilities not required to be reported at fair value in the financial statements. | ||||||||||||||||||||||||||||
Fair Value Option, Residential Mortgage Loans Held for Sale | ||||||||||||||||||||||||||||
The Company elected to account for residential mortgage loans held for sale at fair value. Applying fair value accounting to the residential mortgage loans held for sale better aligns the reported results of the economic changes in the value of these loans and their related hedge instruments. | ||||||||||||||||||||||||||||
The fair value of residential loans held for sale is derived from observable mortgage security prices and includes adjustments for loan servicing value, agency guarantee fees, and other loan level attributes which are mostly observable in the marketplace. Credit risk does not significantly impact the valuation since these loans are sold shortly after origination. Therefore, the Company classifies the residential mortgage loans held for sale in Level 2 of the fair value hierarchy. | ||||||||||||||||||||||||||||
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans held for sale measured at fair value: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | ||||||||||||||||||||||
Residential mortgage loans held for sale, at fair value | $189 | $183 | $6 | $176 | $173 | $3 | ||||||||||||||||||||||
The election of the fair value option for financial assets and financial liabilities is optional and irrevocable. The loans accounted for under the fair value option are initially measured at fair value (i.e., acquisition cost) when the financial asset is acquired. Subsequent changes in fair value are recognized in current earnings. The Company recognized mortgage banking noninterest income of ($2) million and $10 million for the three months ended September 30, 2014 and 2013, respectively, and $3 million and ($26) million for the nine months ended September 30, 2014 and 2013, respectively. Interest income on residential mortgage loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. | ||||||||||||||||||||||||||||
Fair Value Option, Commercial and Commercial Real Estate Loans Held for Sale | ||||||||||||||||||||||||||||
The Company elected to account for certain commercial and commercial real estate loans held for sale at fair value. These loans are managed by a commercial secondary loan desk that provides liquidity to banks, finance companies and institutional investors. Applying fair value accounting to this portfolio is appropriate because the Company holds these loans with the intent to sell within short term periods. | ||||||||||||||||||||||||||||
The fair value of commercial and commercial real estate loans held for sale is estimated using observable prices of identical or similar loans that transact in the marketplace. In addition, the Company uses external pricing services that provide estimates of fair values based on quotes from various dealers transacting in the market, sector curves or benchmarking techniques. Therefore, the Company classifies the commercial and commercial real estate loans managed by the commercial secondary loan desk in Level 2 of the fair value hierarchy given the observable market inputs. | ||||||||||||||||||||||||||||
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for commercial and commercial real estate loans held for sale measured at fair value: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | |||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale, at fair value | $16 | $16 | $— | |||||||||||||||||||||||||
There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of September 30, 2014. The loans accounted for under the fair value option are initially measured at fair value when the financial asset is recognized. Subsequent changes in fair value are recognized in current earnings. Since all loans in the Company's commercial trading portfolio consist of floating rate obligations, all changes in fair value were due to changes in credit risk. Such credit-related fair value changes may include observed changes in overall credit spreads and/or changes to the creditworthiness of an individual borrower. | ||||||||||||||||||||||||||||
Interest income on commercial and commercial real estate loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. | ||||||||||||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||||||||||||
The Company utilizes a variety of valuation techniques to measure its assets and liabilities at fair value. Following is a description of valuation methodologies used for significant assets and liabilities carried on the balance sheet at fair value on a recurring basis: | ||||||||||||||||||||||||||||
Securities AFS | ||||||||||||||||||||||||||||
The fair value of securities classified as AFS is based upon quoted prices, if available. Where observable quoted prices are available in an active market, securities are classified as Level 1 in the fair value hierarchy. Classes of instruments that are valued using this market approach include debt securities issued by the U.S. Treasury. If quoted market prices are not available, the fair value for the security is estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. These instruments are classified as Level 2 because they currently trade in active markets and the inputs to the valuations are observable. The pricing models used to value securities generally begin with market prices (or rates) for similar instruments and make adjustments based on the unique characteristics of the instrument being valued. These adjustments reflect assumptions made regarding the sensitivity of each security’s value to changes in interest rates and prepayment speeds. Classes of instruments that are valued using this market approach include residential and commercial CMOs, specified pool mortgage “pass-through” securities and other debt securities issued by U.S. government-sponsored entities and state and political subdivisions. | ||||||||||||||||||||||||||||
A significant majority of the Company’s Level 1 and 2 securities are priced using an external pricing service. The Company verifies the accuracy of the pricing provided by its primary outside pricing service on a quarterly basis. This process involves using a secondary external vendor to provide valuations for the Company’s securities portfolio for comparison purposes. Any securities with discrepancies beyond a certain threshold are researched and, if necessary, valued by an independent outside broker. | ||||||||||||||||||||||||||||
In certain cases where there is limited activity or less transparency around inputs to the valuation model, securities are classified as Level 3. | ||||||||||||||||||||||||||||
Residential loans held for sale | ||||||||||||||||||||||||||||
See the "Fair Value Option - Residential Mortgage Loans Held for Sale" discussion above. | ||||||||||||||||||||||||||||
Commercial loans held for sale | ||||||||||||||||||||||||||||
See the "Fair Value Option Commercial and Commercial Real Estate Loans Held for Sale" discussion above. | ||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||
The majority of the Company’s derivatives portfolio is comprised of “plain vanilla” interest rate swaps, which are traded in over-the-counter markets where quoted market prices are not readily available. For these interest rate derivatives, fair value is determined utilizing models that use primarily market observable inputs, such as swap rates and yield curves. The pricing models used to value interest rate swaps calculate the sum of each instrument’s fixed and variable cash flows, which are then discounted using an appropriate yield curve (i.e., LIBOR or OIS curve) to arrive at the fair value of each swap. The pricing models do not contain a high level of subjectivity as the methodologies used do not require significant judgment. The Company also considers certain adjustments to the modeled price which market participants would make when pricing each instrument, including a credit valuation adjustment that reflects the credit quality of the swap counterparty. The Company incorporates the effect of exposure to a particular counterparty’s credit by netting its derivative contracts with the collateral available and calculating a credit valuation adjustment on the basis of the net position with the counterparty where permitted. The determination of this adjustment requires judgment on behalf of Company management; however, the total amount of this portfolio-level adjustment is not material to the total fair value of the interest rate swaps in their entirety. Therefore, interest rate swaps are classified as Level 2 in the valuation hierarchy. | ||||||||||||||||||||||||||||
The Company’s other derivatives include foreign exchange contracts. Fair value of foreign exchange derivatives uses the mid-point of daily quoted currency spot prices. A valuation model estimates fair value based on the quoted spot rates together with interest rate yield curves and forward currency rates. Since all of these inputs are observable in the market, foreign exchange derivatives are classified as Level 2 in the fair value hierarchy. | ||||||||||||||||||||||||||||
Venture capital investments | ||||||||||||||||||||||||||||
The Company values its venture capital private equity fund investments based on its capital invested in each fund, which is adjusted by management each quarter, if necessary, to arrive at its estimate of fair value. Adjustments for a fund’s underlying investments may be based upon comparisons to public companies, industry benchmarks, current financing round pricing, earnings multiples of comparable companies, current operating performance and future expectations, or third-party valuations. Since the inputs to the valuation are difficult to independently corroborate in the marketplace, and involve a significant degree of management judgment, venture capital investments are classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||||||
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at September 30, 2014: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,616 | $— | $18,616 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 18,666 | 23 | 18,643 | — | ||||||||||||||||||||||||
Residential loans held for sale | 189 | — | 189 | — | ||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale | 16 | — | 16 | — | ||||||||||||||||||||||||
Total loans held for sale | 205 | — | 205 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 563 | — | 563 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 137 | — | 137 | — | ||||||||||||||||||||||||
Other contracts | 6 | — | 6 | — | ||||||||||||||||||||||||
Total derivative assets | 706 | — | 706 | — | ||||||||||||||||||||||||
Venture capital investments | 6 | — | — | 6 | ||||||||||||||||||||||||
Total assets | $19,583 | $23 | $19,554 | $6 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $655 | $— | $655 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 132 | — | 132 | — | ||||||||||||||||||||||||
Other contracts | 10 | — | 10 | — | ||||||||||||||||||||||||
Total derivative liabilities | 797 | — | 797 | — | ||||||||||||||||||||||||
Total liabilities | $797 | $— | $797 | $— | ||||||||||||||||||||||||
The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2013: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $15,945 | $— | $15,945 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 15,995 | 23 | 15,972 | — | ||||||||||||||||||||||||
Residential loans held for sale | 176 | — | 176 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 677 | — | 677 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 94 | — | 94 | — | ||||||||||||||||||||||||
Other contracts | 7 | — | 7 | — | ||||||||||||||||||||||||
Total derivative assets | 778 | — | 778 | — | ||||||||||||||||||||||||
Venture capital investments | 5 | — | — | 5 | ||||||||||||||||||||||||
Total assets | $16,954 | $23 | $16,926 | $5 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $970 | $— | $970 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 87 | — | 87 | — | ||||||||||||||||||||||||
Other contracts | 10 | — | 10 | — | ||||||||||||||||||||||||
Total derivative liabilities | 1,067 | — | 1,067 | — | ||||||||||||||||||||||||
Total liabilities | $1,067 | $— | $1,067 | $— | ||||||||||||||||||||||||
The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||
Balance as of January 1, | $5 | $6 | ||||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Sales | — | (4 | ) | |||||||||||||||||||||||||
Settlements | — | 3 | ||||||||||||||||||||||||||
Other net gains | 1 | — | ||||||||||||||||||||||||||
Balance as of period end | $6 | $5 | ||||||||||||||||||||||||||
Net unrealized gain (loss) included in net income for the period relating to assets held at period end | $— | $— | ||||||||||||||||||||||||||
There were no transfers among Levels 1, 2 or 3 during the nine months ended September 30, 2014 and 2013. | ||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||||||||||
The following valuation techniques are utilized to measure significant assets for which the Company utilizes fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
The carrying amount of collateral-dependent impaired loans is compared to the appraised value of the collateral less costs to dispose and is classified as Level 2. Any excess of carrying amount over the appraised value is charged to the ALLL. | ||||||||||||||||||||||||||||
MSRs | ||||||||||||||||||||||||||||
MSRs do not trade in an active market with readily observable prices. MSRs are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. At September 30, 2014 the fair value is calculated using the discounted cash flow model, the model which uses assumptions, including weighted average life of 5.2 years (range of 1.7 - 7.0 years), weighted average constant prepayment rate of 12.2% (range of 9.8% - 22.4%) and weighted average discount rate of 10.3% (range of 9.6% - 12.6%). At December 31, 2013 the fair value is calculated using the discounted cash flow model, the model which uses assumptions, including weighted average life of 5.4 years (range of 1.8 - 7.4 years), weighted average constant prepayment rate of 13% (range of 9.4% - 41.5%) and weighted average discount rate of 10.8% (range of 10.2% - 13.1%). Refer to Note 6 "Mortgage Banking" in the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information as well as Note 1 "Significant Accounting Policies" and Note 9 "Mortgage Banking" in the Company’s audited Consolidated Financial Statements. | ||||||||||||||||||||||||||||
Foreclosed assets | ||||||||||||||||||||||||||||
Foreclosed assets consist primarily of residential properties. Foreclosed assets are carried at the lower of carrying value or fair value less costs to dispose. Fair value is based upon independent market prices or appraised values of the collateral and is classified as Level 2. | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
Goodwill is valued using unobservable inputs and is classified as Level 3. Fair value is calculated using the present value of estimated future earnings (discounted cash flow method). On a quarterly basis, the Company assesses whether or not impairment indicators are present. | ||||||||||||||||||||||||||||
The Company monitored events and circumstances during the first half of 2014 and did not observe any factors that would more likely than not reduce the fair value of one or more reporting units below its respective carrying value. Accordingly, goodwill was not tested for impairment during the first half of 2014. For additional information on the Company’s goodwill impairment testing and the most recent goodwill impairment test, see Note 5 "Goodwill" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information as well as Note 1 “Significant Accounting Policies” and Note 5 "Goodwill" included in the Company’s audited Consolidated Financial Statements. | ||||||||||||||||||||||||||||
The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | ($5 | ) | ($56 | ) | ($99 | ) | ($114 | ) | ||||||||||||||||||||
MSRs(2) | 5 | 3 | 8 | 42 | ||||||||||||||||||||||||
Foreclosed assets(3) | 1 | 1 | 2 | 3 | ||||||||||||||||||||||||
Goodwill impairment(4) | — | — | — | (4,435 | ) | |||||||||||||||||||||||
The following tables present assets and liabilities measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | $103 | $— | $103 | $— | ||||||||||||||||||||||||
MSRs(2) | 174 | — | — | 174 | ||||||||||||||||||||||||
Foreclosed assets(3) | 40 | — | 40 | — | ||||||||||||||||||||||||
Goodwill(4) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | $74 | $— | $74 | $— | ||||||||||||||||||||||||
MSRs(2) | 185 | — | — | 185 | ||||||||||||||||||||||||
Foreclosed assets(3) | 49 | — | 49 | — | ||||||||||||||||||||||||
Goodwill(4) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
(1) During the three and nine months ended September 30, 2014, the Company recorded impairment charges of $5 million and $99 million, respectively. The impairment charges included current charges from $144 million of collateral-dependent loans which have been written down to $103 million as of September 30, 2014 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30,2014. During the three and nine months ended September 30, 2013, the Company recorded impairment charges of $56 million and $114 million, respectively. The impairment charges include current charges from $209 million of collateral-dependent loans which have been written down to $113 million as of September 30, 2013 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30, 2013. | ||||||||||||||||||||||||||||
(2) In the first nine months of 2014, MSRs totaling $208 million were evaluated for impairment and written down to $174 million, resulting in an impairment recapture of $8 million and a total cumulative valuation allowance of $15 million. In the first nine months of 2013, MSRs totaling $215 million were evaluated for impairment and written down to $185 million, resulting in an impairment (charge) of $42 million and a total cumulative valuation allowance of $28 million. | ||||||||||||||||||||||||||||
(3) In the first nine months of 2014, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $40 million, resulting in impairment charges of $2 million. In the year ended 2013, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $49 million, resulting in an impairment charge of $4 million. | ||||||||||||||||||||||||||||
(4) In the year ended 2013, Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion, resulting in an impairment charge of $4.4 billion. | ||||||||||||||||||||||||||||
Disclosures about Fair Value of Financial Instruments | ||||||||||||||||||||||||||||
Following is a description of valuation methodologies used to estimate the fair value of financial instruments for disclosure purposes (these instruments are not recorded in the financial statements at fair value): | ||||||||||||||||||||||||||||
Loans and leases | ||||||||||||||||||||||||||||
For loans and leases not recorded at fair value on a recurring basis that are not accounted for as collateral-dependent impaired loans, fair value is estimated by using one of two methods: a discounted cash flow method or a securitization method. The discounted cash flow method involves discounting the expected future cash flows using current rates which a market participant would likely use to value similar pools of loans. Inputs used in this method include observable information such as contractual cash flows (net of servicing cost) and unobservable information such as estimated prepayment speeds, credit loss exposures, and discount rates. The securitization method involves utilizing market securitization data to value the assets as if a securitization transaction had been executed. Inputs used include observable market-based MBS data and pricing adjustments based on unobservable data reflecting the liquidity risk, credit loss exposure and other characteristics of the underlying loans. The internal risk-weighted balances of loans are grouped by product type for purposes of these estimated valuations. For nonaccruing loans, fair value is estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets. Fair value of collateral-dependent loans is primarily based on the appraised value of the collateral. | ||||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||||
Balances are loans that were transferred to loans held for sale that are reported at book value. | ||||||||||||||||||||||||||||
Securities HTM | ||||||||||||||||||||||||||||
The fair value of securities classified as HTM is estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flow. The pricing models used to value these securities generally begin with market prices (or rates) for similar instruments and make adjustments based on the unique characteristics of the instrument being valued. These adjustments reflect assumptions made regarding the sensitivity of each security’s value to changes in interest rates and prepayment speeds. | ||||||||||||||||||||||||||||
Other investment securities | ||||||||||||||||||||||||||||
The cost basis carrying value of other investment securities, such as FHLB stock and FRB stock, is assumed to approximate the fair value of the securities. As a member of the FHLB and FRB, the Company is required to hold FHLB and FRB stock. The stock can be sold only to the FHLB and FRB upon termination of membership, or redeemed at the FHLB’s or FRB’s sole discretion. | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
The fair value of demand deposits, checking with interest accounts, regular savings and money market accounts is the amount payable on demand at the balance sheet date. The fair value of term deposits is estimated by discounting the expected future cash flows using rates currently offered for deposits of similar remaining maturities. | ||||||||||||||||||||||||||||
Deposits held for sale | ||||||||||||||||||||||||||||
Balances are deposits that were transferred to held for sale that are reported at book value. | ||||||||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase, other short-term borrowed funds, and long-term borrowed funds | ||||||||||||||||||||||||||||
Rates currently available to the Company for debt of similar terms and remaining maturities are used to discount the expected cash flows of existing debt. | ||||||||||||||||||||||||||||
The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||
Loans and leases | $90,749 | $91,227 | $— | $— | $103 | $103 | $90,646 | $91,124 | ||||||||||||||||||||
Other loans held for sale | 3 | 3 | — | — | — | — | 3 | 3 | ||||||||||||||||||||
Securities held to maturity | 5,289 | 5,278 | — | — | 5,289 | 5,278 | — | — | ||||||||||||||||||||
Other investment securities | 893 | 893 | — | — | 893 | 893 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 93,463 | 93,791 | — | — | 93,463 | 93,791 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 7,310 | — | — | 5,184 | 7,310 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 6,715 | 6,710 | — | — | 6,715 | 6,710 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 2,062 | 2,060 | — | — | 2,062 | 2,060 | — | — | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||
Loans and leases | $85,859 | $85,724 | $— | $— | $74 | $74 | $85,785 | $85,650 | ||||||||||||||||||||
Other loans held for sale | 1,078 | 1,078 | — | — | — | — | 1,078 | 1,078 | ||||||||||||||||||||
Securities held to maturity | 4,315 | 4,257 | — | — | 4,315 | 4,257 | — | — | ||||||||||||||||||||
Other investment securities | 935 | 935 | — | — | 935 | 935 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 86,903 | 86,907 | — | — | 86,903 | 86,907 | — | — | ||||||||||||||||||||
Deposits held for sale | 5,277 | 5,277 | — | — | 5,277 | 5,277 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,791 | 4,791 | — | — | 4,791 | 4,791 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 2,251 | 2,249 | — | — | 2,251 | 2,249 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 1,405 | 1,404 | — | — | 1,405 | 1,404 | — | — | ||||||||||||||||||||
REGULATORY_MATTERS
REGULATORY MATTERS | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||
REGULATORY MATTERS | ' | |||||||||||||||||
REGULATORY MATTERS | ||||||||||||||||||
As a BHC, the Company is subject to regulation and supervision by the FRB. The primary subsidiaries of Citizens are its two insured depository institutions CBNA, a national banking association whose primary federal regulator is the OCC, and CBPA, a Pennsylvania-chartered savings bank regulated by the Department of Banking of the Commonwealth of Pennsylvania and supervised by the FDIC as its primary federal regulator. Under the regulatory capital adequacy guidelines of the FDICIA, the Company and its banking subsidiaries must meet specific capital requirements. These requirements are expressed in terms of the following ratios: (1) Total Risk-Based Capital (total capital/risk-weighted on- and off-balance sheet assets); (2) Tier 1 Risk-Based Capital (Tier 1 capital/risk-weighted on- and off-balance sheet assets); and (3) Tier 1 Leverage (Tier 1 capital/adjusted average quarterly assets). To meet the regulatory capital requirements, the Company and its banking subsidiaries must maintain minimum Total Risk-Based Capital, Tier 1 Risk-Based Capital, and Tier 1 Leverage ratios. In addition, the Company must not be subject to a written agreement, order or capital directive with any of its regulators. Failure to meet minimum capital requirements can result in the initiation of certain actions that, if undertaken, could have a material effect on the Company’s Consolidated Financial Statements. | ||||||||||||||||||
The following table presents capital and capital ratio information: | ||||||||||||||||||
FDIC Requirements | ||||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well Capitalized | ||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of September 30, 2014 | ||||||||||||||||||
Total Capital to Risk-Weighted Assets | $16,612 | 16.1 | % | $8,257 | 8 | % | $10,321 | 10 | % | |||||||||
Tier 1 Capital to Risk-Weighted Assets | 13,330 | 12.9 | 4,128 | 4 | 6,192 | 6 | ||||||||||||
Tier 1 Capital to Average Assets (Leverage) | 13,330 | 10.9 | 4,901 | 4 | 6,126 | 5 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Total Capital to Risk-Weighted Assets | $15,885 | 16.1 | % | $7,891 | 8 | % | $9,863 | 10 | % | |||||||||
Tier 1 Capital to Risk-Weighted Assets | 13,301 | 13.5 | 3,945 | 4 | 5,918 | 6 | ||||||||||||
Tier 1 Capital to Average Assets (Leverage) | 13,301 | 11.6 | 4,577 | 4 | 5,721 | 5 | ||||||||||||
In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Company itself are generally limited to the retained earnings of the respective banking subsidiaries unless specifically approved by the appropriate bank regulator. The Company declared and paid RBS total common stock dividends of $751 million, $811 million and $1.2 billion as of September 30, 2014, September 30, 2013 and December 31, 2013, respectively. | ||||||||||||||||||
The earnings impact of goodwill impairment recognized by CBNA has put the bank subsidiary in the position of having to request specific approval from the OCC before executing capital distributions to its parent, Citizens. This requirement will be in place through the fourth quarter of 2015. As of September 30, 2014, the unconsolidated BHC had liquid assets in excess of $501 million compared to an annual interest burden on existing subordinated debt of approximately $91 million on a non-consolidated basis. | ||||||||||||||||||
The OCC recently determined that CBNA no longer meets both conditions necessary to own a financial subsidiary. CBNA must be both well capitalized and well managed to own a financial subsidiary. A financial subsidiary is permitted to engage in a broader range of activities, similar to those of a financial holding company, than those permissible for a national bank. CBNA has two financial subsidiaries, Citizens Securities, Inc., a registered broker-dealer, and RBS Citizens Insurance Agency, Inc., a dormant entity, although it continues to collect commissions on certain outstanding policies. CBNA has entered into an agreement with the OCC (the "OCC Agreement") pursuant to which it must develop a remediation plan, which must be submitted to the OCC, setting forth the specific actions it will take to bring itself back into compliance with the conditions to own a financial subsidiary and the schedule for achieving that objective. Until CBNA satisfactorily addresses the deficiencies, CBNA may not consolidate its assets and liabilities with those of the financial subsidiaries for purposes of determining and reporting regulatory capital. In addition, CBNA will be subject to restrictions on its ability to acquire control or hold an interest in any new financial subsidiary and to commence new activities in any existing financial subsidiary, without the prior consent of the OCC. If CBNA fails to remediate the deficiencies within 180 days from March 13, 2014, or such longer period as the OCC may permit, it may have to divest itself of its financial subsidiaries and comply with any additional limitations or conditions on its conduct as the OCC may impose. CBNA has implemented a comprehensive enterprise-wide program that seeks to address these deficiencies. |
EXIT_COSTS_AND_RESTRUCTURING_R
EXIT COSTS AND RESTRUCTURING RESERVES | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
EXIT COSTS AND RESTRUCTURING RESERVES | ' | ||||
EXIT COSTS AND RESTRUCTURING RESERVES | |||||
In 2014, the Company began the implementation of a restructuring initiative designed to achieve operating efficiencies and reduce expense growth. As a result of this program, the Company expects to incur total restructuring costs of approximately $121 million through December 31, 2015, consisting of $41 million of employee compensation, $40 million of facilities costs and $40 million of other costs, primarily consulting and technology services. For the nine months ended September 30, 2014, the Company incurred $90 million of restructuring costs, consisting of $41 million of employee compensation reported in salaries and employee benefits, $12 million of facilities costs (including $6 million of building impairment) reported in occupancy, $26 million reported in outside services, and $11 million in other operating expenses. | |||||
In 2014, as a result of the sale of retail branches located in Illinois (see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information), the Company incurred total costs of approximately $17 million for the nine months ended September 30, 2014, consisting of $3 million of employee compensation reported in salaries and employee benefits, $3 million of fixed assets expenses reported in equipment, $4 million reported in outside services and $7 million reported in other operating expenses. | |||||
For segment reporting all of these restructuring costs are reported within Other. See Note 19 "Business Segments" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information. | |||||
The following table includes the activity in the exit costs and restructuring reserves: | |||||
(in millions) | Salaries & Employee Benefits | Occupancy & Equipment | Other | Total | |
Reserve balance as of December 31, 2012 | $3 | $27 | $— | $30 | |
Additions | 6 | 22 | 3 | 31 | |
Reversals | -1 | -4 | — | -5 | |
Utilization | -6 | -21 | -3 | -30 | |
Reserve balance as of December 31, 2013 | 2 | 24 | — | 26 | |
Additions | 43 | 17 | 48 | 108 | |
Reversals | -1 | -3 | — | -4 | |
Utilization | -10 | -18 | -28 | -56 | |
Reserve balance as of September 30, 2014 | $34 | $20 | $20 | $74 |
RECLASSIFICATIONS_OUT_OF_ACCUM
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||
The following tables present the changes in the balances, net of taxes, of each component of AOCI: | |||||||||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||
Balance at December 31, 2012 | ($240 | ) | $306 | ($378 | ) | ($312 | ) | ||||||||||||
Other comprehensive loss before reclassifications | (121 | ) | (184 | ) | — | (305 | ) | ||||||||||||
Other-than-temporary impairment not recognized in earnings on securities | — | (35 | ) | — | (35 | ) | |||||||||||||
Amounts reclassified from other comprehensive income | 79 | (71 | ) | 5 | 13 | ||||||||||||||
Net other comprehensive (loss) income | (42 | ) | (290 | ) | 5 | (327 | ) | ||||||||||||
Balance at September 30, 2013 | ($282 | ) | $16 | ($373 | ) | ($639 | ) | ||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||
Balance at December 31, 2013 | ($298 | ) | ($91 | ) | ($259 | ) | ($648 | ) | |||||||||||
Other comprehensive income before reclassifications | 137 | 127 | — | 264 | |||||||||||||||
Other-than-temporary impairment not recognized in earnings on securities | — | (22 | ) | — | (22 | ) | |||||||||||||
Amounts reclassified from other comprehensive income | 16 | (13 | ) | (32 | ) | (29 | ) | ||||||||||||
Net other comprehensive income | 153 | 92 | (32 | ) | 213 | ||||||||||||||
Balance at September 30, 2014 | ($145 | ) | $1 | ($291 | ) | ($435 | ) | ||||||||||||
The following table reports the amounts reclassified out of each component of OCI and into the Consolidated Statements of Operations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $18 | $18 | $54 | $38 | Interest income | ||||||||||||||
(23 | ) | (48 | ) | (79 | ) | (160 | ) | Interest expense | |||||||||||
— | — | — | (2 | ) | Other income | ||||||||||||||
(5 | ) | (30 | ) | (25 | ) | (124 | ) | Income (loss) before income tax expense (benefit) | |||||||||||
(2 | ) | (11 | ) | (9 | ) | (45 | ) | Income tax expense (benefit) | |||||||||||
($3 | ) | ($19 | ) | ($16 | ) | ($79 | ) | Net income (loss) | |||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $2 | $25 | $27 | $119 | Securities gains, net | ||||||||||||||
(1 | ) | (3 | ) | (7 | ) | (7 | ) | Net impairment losses recognized in earnings | |||||||||||
1 | 22 | 20 | 112 | Income (loss) before income tax expense (benefit) | |||||||||||||||
— | 7 | 7 | 41 | Income tax expense (benefit) | |||||||||||||||
$1 | $15 | $13 | $71 | Net income (loss) | |||||||||||||||
Reclassification of changes related to the employee benefit plan: | $52 | ($3 | ) | $49 | ($9 | ) | Salaries and employee benefits | ||||||||||||
52 | (3 | ) | 49 | (9 | ) | Income (loss) before income tax expense (benefit) | |||||||||||||
18 | (1 | ) | 17 | (4 | ) | Income tax expense (benefit) | |||||||||||||
$34 | ($2 | ) | $32 | ($5 | ) | Net income (loss) | |||||||||||||
Total reclassification losses | $32 | ($6 | ) | $29 | ($13 | ) | Net income (loss) | ||||||||||||
The following table presents the effects to net income of the amounts reclassified out of OCI: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net interest income (includes ($5), ($30), ($25) and ($122) of AOCI reclassifications, respectively) | $820 | $770 | $2,461 | $2,279 | |||||||||||||||
Provision for credit losses | 77 | 145 | 247 | 347 | |||||||||||||||
Noninterest income (includes $1, $22, $20 and $110 of AOCI reclassifications, respectively) | 341 | 383 | 1,339 | 1,253 | |||||||||||||||
Noninterest expense (includes ($52), $3, ($49) and $9 of AOCI reclassifications, respectively) | 810 | 788 | 2,568 | 6,861 | |||||||||||||||
Income before income tax expense (benefit) | 274 | 220 | 985 | (3,676 | ) | ||||||||||||||
Income tax expense (benefit) (includes $16, ($5), $15 and ($8) income tax net expense and (benefit) from reclassification items, respectively) | 85 | 76 | 317 | (98 | ) | ||||||||||||||
Net income (loss) | $189 | $144 | $668 | ($3,578 | ) | ||||||||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||
The Company is managed by its CEO on a divisional basis. The Company’s two business segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has a Vice Chairman who reports directly to the CEO. The CEO has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the CEO. Non-segment operations are classified as Other, which includes corporate functions, the Treasury function, the securities portfolio, wholesale funding activities, intangible assets, Community Development, Non-Core assets, and other unallocated assets, liabilities, revenues and expenses. | ||||||||||||||||
Reportable Segments | ||||||||||||||||
Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the Company’s organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below: | ||||||||||||||||
Consumer Banking | ||||||||||||||||
The Consumer Banking segment focuses on retail customers and small businesses with annual revenues of up to $25 million. It offers traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans and financial management services. It also operates an indirect auto financing business, providing financing for both new and used vehicles through auto dealerships. The segment’s distribution channels include a branch network, ATMs and a work force of experienced specialists ranging from financial consultants, mortgage loan officers and business banking officers to private bankers. | ||||||||||||||||
Commercial Banking | ||||||||||||||||
The Commercial Banking segment primarily targets companies with annual revenues from $25 million to $2.5 billion and provides a full complement of financial products and solutions, including loans, leases, trade financing, deposits, cash management, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities. It focuses on small and middle-market companies and has dedicated teams with industry expertise in government banking, not-for-profit, healthcare, technology, asset finance, franchise finance, asset-based lending, commercial real estate, private equity and sponsor finance. While the segment’s business development efforts are predominantly focused on the Company's twelve-state core footprint, some of its specialized industry businesses also operate selectively on a national basis (such as healthcare, asset finance and franchise finance). Commercial Banking is organized by teams that target different client segments. A key component of the segment’s growth strategy is to expand its loan portfolio by originating high-quality commercial loans, which produce revenues consistent with its financial objectives and complies with its conservative credit policies. Commercial underwriting is driven by cash flow analysis supported by collateral analysis and review. The commercial lending teams offer a wide range of commercial loan products, including commercial real estate loans; working capital loans and lines of credit; demand, term and time loans; and equipment, inventory and accounts receivable financing. | ||||||||||||||||
Non-segment Operations | ||||||||||||||||
Other | ||||||||||||||||
In addition to non-segment operations, Other includes certain reconciling items in order to translate the segment results that are based on management accounting practices into consolidated results. For example, Other includes goodwill and the associated pre-tax $4.4 billion goodwill impairment charge recorded in 2013. | ||||||||||||||||
As of and for the Three Months Ended September 30, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $532 | $270 | $18 | $820 | ||||||||||||
Noninterest income | 226 | 104 | 11 | 341 | ||||||||||||
Total revenue | 758 | 374 | 29 | 1,161 | ||||||||||||
Noninterest expense | 609 | 162 | 39 | 810 | ||||||||||||
Profit (loss) before provision for credit losses | 149 | 212 | (10 | ) | 351 | |||||||||||
Provision for credit losses | 66 | — | 11 | 77 | ||||||||||||
Income (loss) before income tax expense (benefit) | 83 | 212 | (21 | ) | 274 | |||||||||||
Income tax expense (benefit) | 29 | 73 | (17 | ) | 85 | |||||||||||
Net income (loss) | $54 | $139 | ($4 | ) | $189 | |||||||||||
Total Average Assets | $49,012 | $38,854 | $40,825 | $128,691 | ||||||||||||
As of and for the Three months ended September 30, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $543 | $263 | ($36 | ) | $770 | |||||||||||
Noninterest income | 246 | 93 | 44 | 383 | ||||||||||||
Total revenue | 789 | 356 | 8 | 1,153 | ||||||||||||
Noninterest expense | 622 | 156 | 10 | 788 | ||||||||||||
Profit (loss) before provision for credit losses | 167 | 200 | (2 | ) | 365 | |||||||||||
Provision for credit losses | 87 | 3 | 55 | 145 | ||||||||||||
Income (loss) before income tax expense (benefit) | 80 | 197 | (57 | ) | 220 | |||||||||||
Income tax expense (benefit) | 28 | 70 | (22 | ) | 76 | |||||||||||
Net income (loss) | $52 | $127 | ($35 | ) | $144 | |||||||||||
Total Average Assets | $46,169 | $35,019 | $36,198 | $117,386 | ||||||||||||
As of and for the Nine Months Ended September 30, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $1,615 | $790 | $56 | $2,461 | ||||||||||||
Noninterest income | 681 | 318 | 340 | 1,339 | ||||||||||||
Total revenue | 2,296 | 1,108 | 396 | 3,800 | ||||||||||||
Noninterest expense | 1,902 | 472 | 194 | 2,568 | ||||||||||||
Profit before provision for credit losses | 394 | 636 | 202 | 1,232 | ||||||||||||
Provision for credit losses | 195 | (7 | ) | 59 | 247 | |||||||||||
Income before income tax expense | 199 | 643 | 143 | 985 | ||||||||||||
Income tax expense | 69 | 222 | 26 | 317 | ||||||||||||
Net income | $130 | $421 | $117 | $668 | ||||||||||||
Total Average Assets | $48,398 | $37,951 | $40,249 | $126,598 | ||||||||||||
As of and for the Nine Months Ended September 30, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $1,633 | $771 | ($125 | ) | $2,279 | |||||||||||
Noninterest income | 790 | 284 | 179 | 1,253 | ||||||||||||
Total revenue | 2,423 | 1,055 | 54 | 3,532 | ||||||||||||
Noninterest expense | 1,884 | 471 | 4,506 | 6,861 | ||||||||||||
Profit (loss) before provision for credit losses | 539 | 584 | (4,452 | ) | (3,329 | ) | ||||||||||
Provision for credit losses | 243 | (21 | ) | 125 | 347 | |||||||||||
Income (loss) before income tax expense (benefit) | 296 | 605 | (4,577 | ) | (3,676 | ) | ||||||||||
Income tax expense (benefit) | 104 | 214 | (416 | ) | (98 | ) | ||||||||||
Net income (loss) | $192 | $391 | ($4,161 | ) | ($3,578 | ) | ||||||||||
Total Average Assets | $46,546 | $34,938 | $39,542 | $121,026 | ||||||||||||
Management accounting practices utilized by the Company as the basis for presentation for segment results include the following: | ||||||||||||||||
FTP adjustments | ||||||||||||||||
The Company utilizes an FTP system to eliminate the effect of interest rate risk from the segments’ net interest income because such risk is centrally managed within the Treasury function. The FTP system credits (or charges) the segments with the economic value of the funds created (or used) by the segments. The FTP system provides a funds credit for sources of funds and a funds charge for the use of funds by each segment. The sum of the interest income/expense and FTP charges/credits for each segment is its designated net interest income. The variance between the Company’s cumulative FTP charges and cumulative FTP credits is offset in Other. | ||||||||||||||||
Provision for credit losses allocations | ||||||||||||||||
Provision for credit losses is allocated to each business segment based on actual net charge-offs that have been recognized by the business segment. The difference between the consolidated provision for credit losses and the business segments’ net charge-offs is reflected in Other. | ||||||||||||||||
Income tax allocations | ||||||||||||||||
Income taxes are assessed to each line of business at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Other. | ||||||||||||||||
Expense allocations | ||||||||||||||||
Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services. | ||||||||||||||||
Goodwill | ||||||||||||||||
For impairment testing purposes, the Company allocates goodwill to its Consumer Banking and Commercial Banking reporting units. For management reporting purposes, the Company presents the goodwill balance (and any related impairment charges) in Other. | ||||||||||||||||
Substantially all revenues generated and long-lived assets held by the Company’s business segments are derived from clients that reside in the United States. Neither business segment earns revenue from a single external customer that represents 10 percent or more of the Company’s total revenues. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
SHARE-BASED COMPENSATION | ' |
SHARE-BASED COMPENSATION | |
Equity Grants Prior to the IPO | |
Prior to the Company's IPO, RBS Group granted stock-based compensation awards to employees of the Company pursuant to its various long-term incentive plans, which are administered by the Performance and Remuneration Committee of the RBSG Board of Directors. Below is a summary of those awards. All stock-based compensation awards granted to Company employees have been historically settled in RBSG shares. Effective as of the IPO, no stock-based compensation awards in respect of RBSG shares will be granted to Company employees. | |
Restricted Stock Units | |
A restricted stock unit is the right to receive shares of stock on a future date, which may be subject to time-based vesting conditions and/or performance-based vesting conditions. Time-based restricted stock units granted historically have generally become vested ratably over a three-year period. Performance-based restricted stock units granted historically have generally become vested at the end of a three-year performance period, depending on the level of performance achieved during such period as compared to specified RBS Group, divisional and/or functional performance guideposts and subject to the further adjustment at the discretion of the Performance and Remuneration Committee of the RBSG Board of Directors. | |
The fair value of each award is determined on the grant date. All awards (whether they become vested in one increment or ratable increments) are expensed on a straight-line basis over the requisite service period. With respect to performance-based awards, over the performance and requisite service period (i.e., vesting period) of the award, the compensation expense and the number of shares of stock expected to be issued are adjusted upward or downward based upon the probability of achievement of performance. Once vesting has occurred, the related compensation cost recognized as expense is based on actual performance and the number of shares actually issued. | |
Special IPO Awards | |
In March 2014, RBS Group granted special IPO awards to certain Citizens employees. These awards were granted half in the form of restricted stock units in respect of RBSG shares and half as a fixed convertible bond. The special IPO awards are scheduled to vest 50% in March 2016 and 50% in March 2017, subject to certain conditions. Pursuant to their terms, upon the closing of the Company's IPO, these awards were converted into Company restricted stock units and the performance condition was met; however, following the offering these awards remain subject to the original vesting schedule (50% in March 2016 and 50% in March 2017) and other original terms and conditions. | |
Equity Award Conversion | |
In conjunction with the Company's IPO, any restricted stock units granted by RBS Group to Company employees that were unvested at the time of the offering and the bond portion of special IPO awards were converted into equity-based awards in respect of Company common stock. Converted awards are governed by the Citizens Financial Group, Inc. Converted Equity 2010 Deferral Plan and the Citizens Financial Group, Inc. Converted Equity 2010 Long Term Incentive Plan (collectively, the "Converted Equity Plans") and are generally subject to the same terms and conditions as prior to conversion. However, when the awards become vested and are settled in accordance with their terms, grantees will receive shares of Company common stock. Following the offering, no additional awards were granted under the Converted Equity Plans. | |
The number of shares of Company common stock underlying converted awards was determined by dividing (A) the product of (x) the maximum number of RBSG shares underlying the awards outstanding as of the closing of the offering and (y) the average of the closing prices of RBSG shares on each of the 30 London Stock Exchange dealing days immediately prior to the pricing date of the offering (such 30-day period, the “Conversion Period”), converted into U.S. Dollars using the average British Pound to U.S. Dollar currency rate over the Conversion Period, by (B) the price per share of Company common stock on the pricing date of the offering. The bond portion of the special IPO awards was converted by dividing the bond value by the price per share of Company common stock on the pricing date of the offering. | |
The Company awarded 9,627,635 and 6,363,919 RBSG shares to employees during the nine months ended September 30, 2014 and 2013, respectively. The grant date fair value of the shares was $53 million and $30 million for the awards granted during the nine months ended September 30, 2014 and 2013, respectively. Grant date fair value for all RBSG awards is estimated using the fair value of RBSG shares on grant date. In September 2014, 19,055,349 of RBSG share awards were converted to 5,158,928 Citizens share awards. The difference between the fair value of the RBSG restricted share units immediately preceding the conversion and the fair value of the Company equity-based awards granted was not material. The bond portions of the Special IPO awards were converted to 524,783 Citizens share awards. Total unvested share awards at September 30, 2014 were 5,706,624; this includes the Directors shares discussed below. | |
For the three months ended September 30, 2014, compensation expense related to share-based plans was $10 million compared to $9 million for the three months ended September 30, 2013. For the nine months ended September 30, 2014, compensation expense related to share-based plans was $29 million compared to $24 million for the nine months ended September 30, 2013. | |
Employee Share Plans Following the IPO | |
Omnibus Incentive Plan | |
In connection with the offering, the Company adopted the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan. This plan permits the Company to grant a variety of awards to employees and service providers. No awards have been granted under this plan to date. | |
Director Compensation Plan | |
In connection with the offering, the Company adopted the 2014 Non-Employee Directors Compensation Plan (the "Directors Plan"). Effective upon the closing of the offering, restricted stock units were granted by the Company to its non-employee directors under the Directors Plan. These grants are scheduled to vest on the earlier to occur of September 29, 2015 or the date of the 2015 annual shareholders meeting. If a dividend is paid on shares underlying the stock units prior to the date such shares are distributed, those dividends will be distributed following vesting in the same form as the dividend that has been paid to shareholders generally. In the event that a director ceases to serve on the Board of Directors prior to the vesting date for any reason other than under circumstances which would constitute cause, the restricted stock units will fully vest on the date of the director's cessation from service. | |
Employee Stock Purchase Plan | |
In connection with the offering, the Company adopted the 2014 Employee Stock Purchase Plan, which provides eligible employees an opportunity to purchase its common stock at a 10% discount, through accumulated payroll deductions. Beginning in the fourth quarter of 2014 eligible employees may contribute up to 10% of eligible compensation to the ESPP, except that this limit is increased to 50% of eligible compensation for the first offering period during the fourth quarter of 2014; in each case, no participant may purchase shares in any year with a value exceeding $25,000. Offering periods under the ESPP are quarterly. | |
Shares of Company common stock are purchased by a participant on the last day of each quarter at a 10% discount from the fair market value (fair market value under the plan is defined as the closing price on the day of purchase). Prior to the date the shares are purchased, participants do not have any rights or privileges as a stockholder with respect to shares to be purchased at the end of the offering period. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollars in millions, except share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Basic: | ||||||||||||||||
Net income (loss) from operations | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Less: undistributed earnings allocated to participating securities | — | — | — | — | ||||||||||||
Net income (loss) available to common shareholders | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Diluted: | ||||||||||||||||
Net income (loss) from operations | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Less: undistributed earnings allocated to participating securities | — | — | — | — | ||||||||||||
Net income (loss) available to common shareholders | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding - basic | 559,998,324 | 559,998,324 | 559,998,324 | 559,998,324 | ||||||||||||
Dilutive common shares | 245,423 | — | 82,707 | — | ||||||||||||
Weighted-average common shares outstanding - diluted | 560,243,747 | 559,998,324 | 560,081,031 | 559,998,324 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $0.34 | $0.26 | $1.19 | ($6.39 | ) | |||||||||||
Diluted | 0.34 | 0.26 | 1.19 | (6.39 | ) | |||||||||||
Basic EPS is computed by dividing net income/(loss) available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income/(loss) available to common shareholders by the weighted average number of common shares outstanding during each period, plus the effect of potential dilutive common shares such as share-based awards, using the treasury stock method. Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. | ||||||||||||||||
Unvested restricted shares that contain non-forfeitable rights to dividends or undistributed earnings are participating securities and, therefore, are included in computing both basic and diluted EPS using the two-class method as mandated by relevant accounting guidance. | ||||||||||||||||
On August 22, 2014, the Company declared and made effective a 165,582-for-1 forward stock split of common stock. As a result, all share and per share data have been restated to reflect the effect of the split. |
OTHER_OPERATING_EXPENSE
OTHER OPERATING EXPENSE | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
OTHER OPERATING EXPENSE | ' | |||||||||||||||
OTHER OPERATING EXPENSE | ||||||||||||||||
The following table presents the details of other operating expense: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Deposit insurance | $23 | $18 | $69 | $67 | ||||||||||||
Promotional expense | 19 | 18 | 60 | 56 | ||||||||||||
Settlements and operating losses | 10 | 9 | 74 | 32 | ||||||||||||
Postage and delivery | 12 | 14 | 37 | 39 | ||||||||||||
Other | 58 | 64 | 199 | 190 | ||||||||||||
Other operating expense | $122 | $123 | $439 | $384 | ||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
The Company has evaluated the impacts of events that have occurred subsequent to September 30, 2014 through the date the unaudited interim Consolidated Financial Statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the unaudited interim Consolidated Financial Statements and related Notes, other than that on October 8, 2014 Citizens executed a capital exchange transaction which involved the issuance of $334 million of 10-year subordinated notes to RBSG at a rate of 4.082% and the simultaneous repurchase of 14,297,761 shares of common stock owned by RBS Group a total cost of $334 million and an average price per share of $23.36. The purchase price per share was the average of the daily volume-weighted average price of a share of our common stock as reported by the New York Stock Exchange over the five trading days preceding the purchase date. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The new standard provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The amendment is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-14, “Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.” This update amends the guidance in Accounting Standards Codification 310 and requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2014 and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-13, “Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.” This update amends the guidance in Accounting Standards Codification 820 and clarifies that a reporting entity that consolidates a collateralized financing entity within the scope of this update may elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in this update or Topic 820 on fair value measurement. When the measurement alternative is not elected for a consolidated collateralized financing entity within the scope of this update, the amendments clarify that (1) the fair value of the financial assets and the fair value of the financial liabilities of the consolidated collateralized financing entity should be measured using the requirements of Topic 820 and (2) any differences in the fair value of the financial assets and the fair value of the financial liabilities of that consolidated collateralized financing entity should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2015 and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This update amends the guidance on stock compensation and clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Accordingly, an entity should not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which a transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2015, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures,” which makes limited amendments to the guidance on accounting for certain repurchase agreements. This update requires entities to account for repurchase-to maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements); eliminates accounting guidance on linked repurchase financing transactions; and expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers accounted for as secured borrowings. This update also amends the existing guidance to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in the existing guidance should be accounted for as secured borrowings. This amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue From Contracts With Customers.” This amendment outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The new guidance applies to all contracts with customers except those that are within the scope of other topics in GAAP. This amendment is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This amendment modifies the requirements for reporting a discontinued operation. The amended definition of “discontinued operations” includes only disposals, held-for-sale classifications of components, or groups of components of an entity that represent “strategic shift” that either has or will have a major effect on the entity’s operations and financial results, such as geographic area, line of business, equity method investment or other parts of an entity. This amendment also provides disclosure guidance for situations where an entity has continuing involvement with a discontinued operation or retains an equity method investment in a component after disposal. This amendment is effective for all disposals or classifications as held for sale (including businesses or nonprofit activities that, on acquisition, are classified as held for sale) that occur in annual periods, and in interim periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In January 2014, the FASB issued Accounting Standards Update No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” This amendment clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendment requires disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. | |
In January 2014, the FASB issued Accounting Standards Update No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” This amendment permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Qualified affordable housing project investments that are not accounted for using the proportional amortization method must be accounted for as an equity method or cost method investment. This amendment is effective for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014, and is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of securities held | ' | ||||||||||||||||||||||||||
The following table provides the major components of securities at amortized cost and fair value: | |||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $15 | $15 | $— | $— | $15 | |||||||||||||||||||
State and political subdivisions | 10 | — | — | 10 | 11 | — | (1 | ) | 10 | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 17,759 | 207 | (68 | ) | 17,898 | 14,970 | 151 | (128 | ) | 14,993 | |||||||||||||||||
Other/non-agency | 747 | 6 | (35 | ) | 718 | 992 | 5 | (45 | ) | 952 | |||||||||||||||||
Total mortgage-backed securities | 18,506 | 213 | (103 | ) | 18,616 | 15,962 | 156 | (173 | ) | 15,945 | |||||||||||||||||
Total debt securities available for sale | 18,531 | 213 | (103 | ) | 18,641 | 15,988 | 156 | (174 | ) | 15,970 | |||||||||||||||||
Marketable equity securities | 10 | 3 | — | 13 | 10 | 3 | — | 13 | |||||||||||||||||||
Other equity securities | 12 | — | — | 12 | 12 | — | — | 12 | |||||||||||||||||||
Total equity securities available for sale | 22 | 3 | — | 25 | 22 | 3 | — | 25 | |||||||||||||||||||
Total securities available for sale | $18,553 | $216 | ($103 | ) | $18,666 | $16,010 | $159 | ($174 | ) | $15,995 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,833 | $9 | ($46 | ) | $3,796 | $2,940 | $— | ($33 | ) | $2,907 | |||||||||||||||||
Other/non-agency | 1,456 | 26 | — | 1,482 | 1,375 | — | (25 | ) | 1,350 | ||||||||||||||||||
Total securities held to maturity | $5,289 | $35 | ($46 | ) | $5,278 | $4,315 | $— | ($58 | ) | $4,257 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $470 | $— | $— | $470 | $462 | $— | $— | $462 | |||||||||||||||||||
Federal Home Loan Bank stock | 417 | — | — | 417 | 468 | — | — | 468 | |||||||||||||||||||
Venture capital and other investments | 6 | — | — | 6 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $893 | $— | $— | $893 | $935 | $— | $— | $935 | |||||||||||||||||||
Schedule of unrealized loss on investments | ' | ||||||||||||||||||||||||||
The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: | |||||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||
(dollars in millions) | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. Treasury | — | $— | $— | — | $— | $— | — | $— | $— | ||||||||||||||||||
State and political subdivisions | — | — | — | 1 | 10 | — | 1 | 10 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 121 | 7,178 | (63 | ) | 45 | 1,213 | (51 | ) | 166 | 8,391 | (114 | ) | |||||||||||||||
Other/non-agency | 5 | 112 | (1 | ) | 17 | 414 | (34 | ) | 22 | 526 | (35 | ) | |||||||||||||||
Total mortgage-backed securities | 126 | 7,290 | (64 | ) | 62 | 1,627 | (85 | ) | 188 | 8,917 | (149 | ) | |||||||||||||||
Total | 126 | $7,290 | ($64 | ) | 63 | $1,637 | ($85 | ) | 189 | $8,927 | ($149 | ) | |||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||
(dollars in millions) | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | Number of Issues | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
State and political subdivisions | 1 | $10 | ($1 | ) | — | $— | $— | 1 | $10 | ($1 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 263 | 12,067 | (158 | ) | 7 | 20 | (2 | ) | 270 | 12,087 | (160 | ) | |||||||||||||||
Other/non-agency | 22 | 1,452 | (34 | ) | 19 | 490 | (37 | ) | 41 | 1,942 | (71 | ) | |||||||||||||||
Total mortgage-backed securities | 285 | 13,519 | (192 | ) | 26 | 510 | (39 | ) | 311 | 14,029 | (231 | ) | |||||||||||||||
Total | 286 | $13,529 | ($193 | ) | 26 | $510 | ($39 | ) | 312 | $14,039 | ($232 | ) | |||||||||||||||
Schedule of credit losses recognized in earnings | ' | ||||||||||||||||||||||||||
The following table presents the cumulative credit related losses recognized in earnings on debt securities held by the Company as of: | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Cumulative balance at beginning of period | $60 | $56 | $56 | $55 | |||||||||||||||||||||||
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 3 | 7 | 7 | |||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (1 | ) | (3 | ) | (3 | ) | (6 | ) | |||||||||||||||||||
Cumulative balance at end of period | $60 | $56 | $60 | $56 | |||||||||||||||||||||||
Schedule of investments classified by maturity date | ' | ||||||||||||||||||||||||||
The amortized cost and fair value of debt securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||
Distribution of Maturities | |||||||||||||||||||||||||||
(in millions) | 1 Year or Less | 1-5 Years | 5-10 Years | After 10 Years | Total | ||||||||||||||||||||||
Amortized Cost: | |||||||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $— | $15 | ||||||||||||||||||||||
State and political subdivisions | — | — | — | 10 | 10 | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 56 | 2,438 | 15,261 | 17,759 | ||||||||||||||||||||||
Other/non-agency | — | 61 | 62 | 624 | 747 | ||||||||||||||||||||||
Total debt securities available for sale | 19 | 117 | 2,500 | 15,895 | 18,531 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,833 | 3,833 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,456 | 1,456 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,289 | 5,289 | ||||||||||||||||||||||
Total amortized cost of debt securities | $19 | $117 | $2,500 | $21,184 | $23,820 | ||||||||||||||||||||||
Fair Value: | |||||||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||||||
U.S. Treasury | $15 | $— | $— | $— | $15 | ||||||||||||||||||||||
State and political subdivisions | — | — | — | 10 | 10 | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 4 | 60 | 2,441 | 15,393 | 17,898 | ||||||||||||||||||||||
Other/non-agency | — | 61 | 64 | 593 | 718 | ||||||||||||||||||||||
Total debt securities available for sale | 19 | 121 | 2,505 | 15,996 | 18,641 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,796 | 3,796 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,482 | 1,482 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,278 | 5,278 | ||||||||||||||||||||||
Total fair value of debt securities | $19 | $121 | $2,505 | $21,274 | $23,919 | ||||||||||||||||||||||
Schedule of income recognized on investment securities | ' | ||||||||||||||||||||||||||
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations: | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Taxable | $155 | $120 | $458 | $348 | |||||||||||||||||||||||
Non-taxable | — | — | — | — | |||||||||||||||||||||||
Total interest income from investment securities | $155 | $120 | $458 | $348 | |||||||||||||||||||||||
Schedule of financial instruments owned and pledged as collateral | ' | ||||||||||||||||||||||||||
The amortized cost and fair value of securities pledged are shown below: | |||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $5,129 | $5,165 | $5,016 | $4,998 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,390 | 1,416 | 1 | 1 | |||||||||||||||||||||||
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,463 | 3,514 | 2,818 | 2,853 | |||||||||||||||||||||||
Schedule of effect of repurchase agreements on balance sheet accounts | ' | ||||||||||||||||||||||||||
The effects of this offsetting on the Consolidated Balance Sheets are presented in the following table: | |||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Gross Assets (Liabilities) | Gross Assets (Liabilities) Offset | Net Amounts of Assets (Liabilities) | Gross Assets (Liabilities) | Gross Assets (Liabilities) Offset | Net Amounts of Assets (Liabilities) | |||||||||||||||||||||
Securities purchased under agreements to resell | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Securities sold under agreements to repurchase | (4,100 | ) | — | (4,100 | ) | (3,000 | ) | — | (3,000 | ) | |||||||||||||||||
Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. See Note 11 "Derivatives" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information. |
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of loans and leases | ' | |||||||
A summary of the loans and leases portfolio follows: | ||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||
Commercial | $30,356 | $28,667 | ||||||
Commercial real estate | 7,239 | 6,948 | ||||||
Leases | 3,875 | 3,780 | ||||||
Total commercial | 41,470 | 39,395 | ||||||
Residential, including originated home equity products | 30,458 | 29,694 | ||||||
Home equity products serviced by others | 1,870 | 2,171 | ||||||
Other secured retail | 13,206 | 10,700 | ||||||
Unsecured retail | 3,745 | 3,899 | ||||||
Total retail | 49,279 | 46,464 | ||||||
Total loans and leases (1) (2) | $90,749 | $85,859 | ||||||
(1) Excluded from the table above are loans held for sale totaling $208 million as of September 30, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches. For further discussion, see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | ||||||||
(2) Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $18.1 billion and $18.7 billion at September 30, 2014 and December 31, 2013, respectively. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO1
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||
Schedule of changes in the allowance for credit losses | ' | |||||||||||||||||||
The following is a summary of changes in the allowance for credit losses: | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | |||||||||||||||||
Charge-offs | (30 | ) | (344 | ) | (374 | ) | ||||||||||||||
Recoveries | 47 | 84 | 131 | |||||||||||||||||
Net recoveries (charge-offs) | 17 | (260 | ) | (243 | ) | |||||||||||||||
Provision charged to income | 27 | 196 | 223 | |||||||||||||||||
Allowance for loan and lease losses as of September 30, 2014 | 542 | 659 | 1,201 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | |||||||||||||||||
Provision for unfunded lending commitments | 24 | — | 24 | |||||||||||||||||
Reserve for unfunded lending commitments as of September 30, 2014 | 63 | — | 63 | |||||||||||||||||
Total allowance for credit losses as of September 30, 2014 | $605 | $659 | $1,264 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Unallocated | Total | ||||||||||||||||
Allowance for loan and lease losses as of January 1, 2013 | $509 | $657 | $89 | $1,255 | ||||||||||||||||
Charge-offs | (72 | ) | (470 | ) | — | (542 | ) | |||||||||||||
Recoveries | 69 | 87 | — | 156 | ||||||||||||||||
Net charge-offs | (3 | ) | (383 | ) | — | (386 | ) | |||||||||||||
Provision charged to income | (51 | ) | 329 | 72 | 350 | |||||||||||||||
Allowance for loan and lease losses as of September 30, 2013 | 455 | 603 | 161 | 1,219 | ||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2013 | 40 | — | — | 40 | ||||||||||||||||
Provision for unfunded lending commitments | (3 | ) | — | — | (3 | ) | ||||||||||||||
Reserve for unfunded lending commitments as of September 30, 2013 | 37 | — | — | 37 | ||||||||||||||||
Total allowance for credit losses as of September 30, 2013 | $492 | $603 | $161 | $1,256 | ||||||||||||||||
Schedule of loans and leases based on evaluation method | ' | |||||||||||||||||||
The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: | ||||||||||||||||||||
30-Sep-14 | December 31, 2013 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $191 | $1,214 | $1,405 | $239 | $1,200 | $1,439 | ||||||||||||||
Formula-based evaluation | 41,279 | 48,065 | 89,344 | 39,156 | 45,264 | 84,420 | ||||||||||||||
Total | $41,470 | $49,279 | $90,749 | $39,395 | $46,464 | $85,859 | ||||||||||||||
Schedule of allowance for credit losses by evaluation method | ' | |||||||||||||||||||
The following is a summary of the allowance for credit losses by evaluation method: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $14 | $116 | $130 | $23 | $108 | $131 | ||||||||||||||
Formula-based evaluation | 591 | 543 | 1,134 | 514 | 615 | 1,129 | ||||||||||||||
Allowance for credit losses | $605 | $659 | $1,264 | $537 | $723 | $1,260 | ||||||||||||||
Schedule of classes of commercial loans and leases based on regulatory classifications | ' | |||||||||||||||||||
The recorded investment in classes of commercial loans and leases based on regulatory classification ratings is as follows: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $28,857 | $861 | $517 | $121 | $30,356 | |||||||||||||||
Commercial real estate | 6,869 | 207 | 97 | 66 | 7,239 | |||||||||||||||
Leases | 3,814 | 15 | 46 | — | 3,875 | |||||||||||||||
Total | $39,540 | $1,083 | $660 | $187 | $41,470 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $27,433 | $588 | $541 | $105 | $28,667 | |||||||||||||||
Commercial real estate | 6,366 | 339 | 116 | 127 | 6,948 | |||||||||||||||
Leases | 3,679 | 40 | 61 | — | 3,780 | |||||||||||||||
Total | $37,478 | $967 | $718 | $232 | $39,395 | |||||||||||||||
Schedule of retail loan investments categorized by delinquency status | ' | |||||||||||||||||||
The recorded investment in classes of retail loans, categorized by delinquency status is as follows: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential, including originated home equity products | $28,852 | $811 | $227 | $568 | $30,458 | |||||||||||||||
Home equity products serviced by others | 1,638 | 138 | 42 | 52 | 1,870 | |||||||||||||||
Other secured retail | 12,438 | 673 | 79 | 16 | 13,206 | |||||||||||||||
Unsecured retail | 3,548 | 118 | 49 | 30 | 3,745 | |||||||||||||||
Total | $46,476 | $1,740 | $397 | $666 | $49,279 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential, including originated home equity products | $27,912 | $861 | $259 | $662 | $29,694 | |||||||||||||||
Home equity products serviced by others | 1,901 | 167 | 43 | 60 | 2,171 | |||||||||||||||
Other secured retail | 10,068 | 550 | 66 | 16 | 10,700 | |||||||||||||||
Unsecured retail | 3,593 | 185 | 67 | 54 | 3,899 | |||||||||||||||
Total | $43,474 | $1,763 | $435 | $792 | $46,464 | |||||||||||||||
Schedule of nonperforming loans and leases by class | ' | |||||||||||||||||||
A summary of nonperforming loans and leases by class is as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Nonaccruing | Accruing and 90 Days or More Delinquent | Total Nonperforming Loans and Leases | Nonaccruing | Accruing and 90 Days or More Delinquent | Total Nonperforming Loans and Leases | ||||||||||||||
Commercial | $93 | $— | $93 | $96 | $— | $96 | ||||||||||||||
Commercial real estate | 82 | 1 | 83 | 169 | — | 169 | ||||||||||||||
Leases | — | — | — | — | — | — | ||||||||||||||
Total commercial | 175 | 1 | 176 | 265 | — | 265 | ||||||||||||||
Residential, including originated home equity products | 770 | — | 770 | 981 | — | 981 | ||||||||||||||
Home equity products serviced by others | 81 | — | 81 | 89 | — | 89 | ||||||||||||||
Other secured retail | 22 | — | 22 | 26 | — | 26 | ||||||||||||||
Unsecured retail | 23 | 7 | 30 | 22 | 33 | 55 | ||||||||||||||
Total retail | 896 | 7 | 903 | 1,118 | 33 | 1,151 | ||||||||||||||
Total | $1,071 | $8 | $1,079 | $1,383 | $33 | $1,416 | ||||||||||||||
Schedule of nonperforming assets | ' | |||||||||||||||||||
A summary of other nonperforming assets is as follows: | ||||||||||||||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance: | ||||||||||||||||||||
Commercial | $3 | $10 | ||||||||||||||||||
Retail | 39 | 40 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance | $42 | $50 | ||||||||||||||||||
Summary of key performance indicators | ' | |||||||||||||||||||
A summary of key performance indicators is as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.19 | % | 0.31 | % | ||||||||||||||||
Nonperforming retail loans as a percentage of total loans and leases | 1 | 1.34 | ||||||||||||||||||
Total nonperforming loans and leases as a percentage of total loans and leases | 1.19 | 1.65 | ||||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.13 | 0.23 | ||||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.72 | 0.97 | ||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.85 | % | 1.2 | % | ||||||||||||||||
Analysis of age of past due amounts | ' | |||||||||||||||||||
The following is an analysis of the age of the past due amounts (accruing and nonaccruing): | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | 30-89 Days Past Due | 90 Days or More Past Due | Total Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total Past Due | ||||||||||||||
Commercial | $30 | $93 | $123 | $61 | $96 | $157 | ||||||||||||||
Commercial real estate | 42 | 83 | 125 | 34 | 169 | 203 | ||||||||||||||
Leases | 2 | — | 2 | 24 | — | 24 | ||||||||||||||
Total commercial | 74 | 176 | 250 | 119 | 265 | 384 | ||||||||||||||
Residential, including originated home equity products | 227 | 568 | 795 | 259 | 662 | 921 | ||||||||||||||
Home equity products serviced by others | 42 | 52 | 94 | 43 | 60 | 103 | ||||||||||||||
Other secured retail | 79 | 16 | 95 | 66 | 16 | 82 | ||||||||||||||
Unsecured retail | 49 | 30 | 79 | 67 | 54 | 121 | ||||||||||||||
Total retail | 397 | 666 | 1,063 | 435 | 792 | 1,227 | ||||||||||||||
Total | $471 | $842 | $1,313 | $554 | $1,057 | $1,611 | ||||||||||||||
Schedule of impaired loans by class | ' | |||||||||||||||||||
The following is a summary of impaired loan information by class: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Impaired Loans With a Related Allowance | Allowance on Impaired Loans | Impaired Loans Without a Related Allowance | Unpaid Contractual Balance | Total Recorded Investment in Impaired Loans | |||||||||||||||
Commercial | $116 | $14 | $53 | $195 | $169 | |||||||||||||||
Commercial real estate | — | — | 34 | 72 | 34 | |||||||||||||||
Total commercial | 116 | 14 | 87 | 267 | 203 | |||||||||||||||
Residential, including originated home equity products | 361 | 57 | 518 | 1,131 | 879 | |||||||||||||||
Home equity products serviced by others | 83 | 14 | 23 | 120 | 106 | |||||||||||||||
Other secured retail | 21 | 4 | 10 | 39 | 31 | |||||||||||||||
Unsecured retail | 198 | 41 | — | 198 | 198 | |||||||||||||||
Total retail | 663 | 116 | 551 | 1,488 | 1,214 | |||||||||||||||
Total | $779 | $130 | $638 | $1,755 | $1,417 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Impaired Loans With a Related Allowance | Allowance on Impaired Loans | Impaired Loans Without a Related Allowance | Unpaid Contractual Balance | Total Recorded Investment in Impaired Loans | |||||||||||||||
Commercial | $86 | $15 | $33 | $214 | $119 | |||||||||||||||
Commercial real estate | 76 | 8 | 44 | 221 | 120 | |||||||||||||||
Total commercial | 162 | 23 | 77 | 435 | 239 | |||||||||||||||
Residential, including originated home equity products | 355 | 59 | 497 | 1,081 | 852 | |||||||||||||||
Home equity products serviced by others | 91 | 11 | 21 | 125 | 112 | |||||||||||||||
Other secured retail | 23 | 3 | 12 | 43 | 35 | |||||||||||||||
Unsecured retail | 201 | 35 | — | 201 | 201 | |||||||||||||||
Total retail | 670 | 108 | 530 | 1,450 | 1,200 | |||||||||||||||
Total | $832 | $131 | $607 | $1,885 | $1,439 | |||||||||||||||
Schedule of additional information on impaired loans | ' | |||||||||||||||||||
Additional information on impaired loans is as follows: | ||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $2 | $138 | $1 | $154 | ||||||||||||||||
Commercial real estate | — | 62 | — | 154 | ||||||||||||||||
Total commercial | 2 | 200 | 1 | 308 | ||||||||||||||||
Residential, including originated home equity products | 6 | 865 | 6 | 762 | ||||||||||||||||
Home equity products serviced by others | 1 | 106 | 1 | 118 | ||||||||||||||||
Other secured retail | 1 | 30 | (4 | ) | 36 | |||||||||||||||
Unsecured retail | 3 | 195 | 6 | 197 | ||||||||||||||||
Total retail | 11 | 1,196 | 9 | 1,113 | ||||||||||||||||
Total | $13 | $1,396 | $10 | $1,421 | ||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $2 | $141 | $2 | $169 | ||||||||||||||||
Commercial real estate | 1 | 70 | 1 | 172 | ||||||||||||||||
Total commercial | 3 | 211 | 3 | 341 | ||||||||||||||||
Residential, including originated home equity products | 19 | 835 | 9 | 727 | ||||||||||||||||
Home equity products serviced by others | 4 | 105 | 4 | 119 | ||||||||||||||||
Other secured retail | 1 | 29 | — | 35 | ||||||||||||||||
Unsecured retail | 8 | 188 | 8 | 185 | ||||||||||||||||
Total retail | 32 | 1,157 | 21 | 1,066 | ||||||||||||||||
Total | $35 | $1,368 | $24 | $1,407 | ||||||||||||||||
Troubled debt restructurings on financing receivables | ' | |||||||||||||||||||
The following table summarizes how loans were modified during the nine months ended September 30, 2013, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2013, and were paid off in full, charged off, or sold prior to September 30, 2013. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 100 | $5 | $5 | 106 | $5 | $5 | ||||||||||||||
Commercial real estate | 10 | 7 | 7 | 1 | — | — | ||||||||||||||
Total commercial | 110 | 12 | 12 | 107 | 5 | 5 | ||||||||||||||
Residential, including originated home equity products | 340 | 38 | 41 | 91 | 8 | 8 | ||||||||||||||
Home equity products serviced by others | 23 | 2 | 2 | 1 | — | — | ||||||||||||||
Other secured retail | 224 | 2 | 2 | 2 | — | — | ||||||||||||||
Unsecured retail | 2,054 | 11 | 11 | — | — | — | ||||||||||||||
Total retail | 2,641 | 53 | 56 | 94 | 8 | 8 | ||||||||||||||
Total | 2,751 | $65 | $68 | 201 | $13 | $13 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 6 | $1 | $1 | $1 | $— | |||||||||||||||
Commercial real estate | 1 | — | — | (3 | ) | — | ||||||||||||||
Total commercial | 7 | 1 | 1 | (2 | ) | — | ||||||||||||||
Residential, including originated home equity products | 1,648 | 129 | 122 | 6 | 7 | |||||||||||||||
Home equity products serviced by others | 250 | 12 | 9 | 1 | 3 | |||||||||||||||
Other secured retail | 1,217 | 13 | 10 | — | 3 | |||||||||||||||
Unsecured retail | 2,077 | 38 | 38 | (1 | ) | — | ||||||||||||||
Total retail | 5,192 | 192 | 179 | 6 | 13 | |||||||||||||||
Total | 5,199 | $193 | $180 | $4 | $13 | |||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
The following table summarizes how loans were modified during the nine months ended September 30, 2014, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014, and were paid off in full, charged off, or sold prior to September 30, 2014. | ||||||||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Interest Rate Reduction(1) | Maturity Extension(2) | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||
Commercial | 20 | $7 | $7 | 38 | $4 | $4 | ||||||||||||||
Commercial real estate | 3 | — | — | 5 | 1 | 1 | ||||||||||||||
Total commercial | 23 | 7 | 7 | 43 | 5 | 5 | ||||||||||||||
Residential, including originated home equity products | 193 | 20 | 21 | 353 | 24 | 22 | ||||||||||||||
Home equity products serviced by others | 29 | 1 | 1 | 1 | — | — | ||||||||||||||
Other secured retail | 65 | 1 | 1 | 11 | — | — | ||||||||||||||
Unsecured retail | 1,698 | 9 | 9 | — | — | — | ||||||||||||||
Total retail | 1,985 | 31 | 32 | 365 | 24 | 22 | ||||||||||||||
Total | 2,008 | $38 | $39 | 408 | $29 | $27 | ||||||||||||||
Primary Modification Types | ||||||||||||||||||||
Other(3) | ||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change to ALLL Resulting from Modification | Charge-offs Resulting from Modification | |||||||||||||||
Commercial | 5 | $— | $— | ($8 | ) | $— | ||||||||||||||
Commercial real estate | — | — | — | — | — | |||||||||||||||
Total commercial | 5 | — | — | (8 | ) | — | ||||||||||||||
Residential, including originated home equity products | 1,387 | 107 | 101 | (4 | ) | 7 | ||||||||||||||
Home equity products serviced by others | 144 | 6 | 6 | (1 | ) | — | ||||||||||||||
Other secured retail | 708 | 12 | 8 | — | 4 | |||||||||||||||
Unsecured retail | 1,199 | 22 | 22 | 2 | — | |||||||||||||||
Total retail | 3,438 | 147 | 137 | (3 | ) | 11 | ||||||||||||||
Total | 3,443 | $147 | $137 | ($11 | ) | $11 | ||||||||||||||
(1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||||||||||||||||||
(2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||||||||||||||||||
(3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. | ||||||||||||||||||||
Schedule of defaults | ' | |||||||||||||||||||
The table below summarizes TDRs that defaulted during the three months ended September 30, 2014 and 2013 within 12 months of their modification date. | ||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 5 | $4 | 7 | $1 | ||||||||||||||||
Commercial real estate | 1 | — | — | — | ||||||||||||||||
Total commercial | 6 | 4 | 7 | 1 | ||||||||||||||||
Residential, including originated home equity products | 247 | 22 | 289 | 19 | ||||||||||||||||
Home equity products serviced by others | 23 | — | 51 | — | ||||||||||||||||
Other secured retail | 32 | — | 84 | 1 | ||||||||||||||||
Unsecured retail | 224 | 3 | 414 | 6 | ||||||||||||||||
Total retail | 526 | 25 | 838 | 26 | ||||||||||||||||
Total | 532 | $29 | 845 | $27 | ||||||||||||||||
The table below summarizes TDRs that defaulted during the nine months ended September 30, 2014 and 2013 within 12 months of their modification date. | ||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 22 | $7 | 8 | $1 | ||||||||||||||||
Commercial real estate | 2 | 1 | 1 | — | ||||||||||||||||
Total commercial | 24 | 8 | 9 | 1 | ||||||||||||||||
Residential, including originated home equity products | 676 | 55 | 1,413 | 104 | ||||||||||||||||
Home equity products serviced by others | 69 | 1 | 201 | 4 | ||||||||||||||||
Other secured retail | 99 | 1 | 214 | 2 | ||||||||||||||||
Unsecured retail | 728 | 8 | 1,006 | 14 | ||||||||||||||||
Total retail | 1,572 | 65 | 2,834 | 124 | ||||||||||||||||
Total | 1,596 | $73 | 2,843 | $125 | ||||||||||||||||
Schedule of loans that may increase credit exposure | ' | |||||||||||||||||||
The following table presents balances of loans with these characteristics: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $847 | $2,183 | $1,291 | $— | $4,321 | |||||||||||||||
Interest only/negative amortization | 863 | — | — | — | 863 | |||||||||||||||
Low introductory rate | — | — | — | 100 | 100 | |||||||||||||||
Multiple characteristics and other | 56 | — | — | — | 56 | |||||||||||||||
Total | $1,766 | $2,183 | $1,291 | $100 | $5,340 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $1,054 | $2,798 | $1,581 | $— | $5,433 | |||||||||||||||
Interest only/negative amortization | 882 | — | — | — | 882 | |||||||||||||||
Low introductory rate | — | — | — | 119 | 119 | |||||||||||||||
Multiple characteristics and other | 96 | — | — | — | 96 | |||||||||||||||
Total | $2,032 | $2,798 | $1,581 | $119 | $6,530 | |||||||||||||||
GOODWILL_Tables
GOODWILL (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of goodwill | ' | |||||||||||
The changes in the carrying value of goodwill for the nine months ended September 30, 2014 and 2013 were: | ||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Total | |||||||||
Balance at December 31, 2012 | $6,393 | $4,918 | $11,311 | |||||||||
Impairment losses based on results of interim impairment testing | (4,435 | ) | — | (4,435 | ) | |||||||
Transfers | 178 | (178 | ) | — | ||||||||
Balance at September 30, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Balance at December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at September 30, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
MORTGAGE_BANKING_Tables
MORTGAGE BANKING (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Mortgage Banking [Abstract] | ' | |||||||
Schedule of valuation allowance for impairment of recognized servicing assets | ' | |||||||
Changes related to MSRs were as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $208 | $215 | ||||||
Amount capitalized | 13 | 39 | ||||||
Amortization | (32 | ) | (41 | ) | ||||
Carrying amount before valuation allowance | 189 | 213 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 23 | 70 | ||||||
Valuation recovery | (8 | ) | (42 | ) | ||||
Balance at end of period | 15 | 28 | ||||||
Net carrying value of MSRs | $174 | $185 | ||||||
Servicing asset at amortized cost | ' | |||||||
Changes related to MSRs were as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $208 | $215 | ||||||
Amount capitalized | 13 | 39 | ||||||
Amortization | (32 | ) | (41 | ) | ||||
Carrying amount before valuation allowance | 189 | 213 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 23 | 70 | ||||||
Valuation recovery | (8 | ) | (42 | ) | ||||
Balance at end of period | 15 | 28 | ||||||
Net carrying value of MSRs | $174 | $185 | ||||||
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights | ' | |||||||
The key economic assumptions used to estimate the value of MSRs are presented in the following table: | ||||||||
September 30, | ||||||||
(dollars in millions) | 2014 | 2013 | ||||||
Fair value | $187 | $193 | ||||||
Weighted average life (in years) | 5.3 | 5.1 | ||||||
Weighted average constant prepayment rate | 12.2 | % | 13.9 | % | ||||
Weighted average discount rate | 10.3 | % | 10.8 | % | ||||
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights capitalized in current period | ' | |||||||
The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Weighted average life (in years) | 5.7 | 6.1 | ||||||
Weighted average constant prepayment rate | 11.7 | % | 12.6 | % | ||||
Weighted average discount rate | 10.3 | % | 10.5 | % | ||||
Schedule of the impact to fair value of an adverse change in key economic assumptions | ' | |||||||
Nine Months Ended September 30, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Prepayment rate: | ||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $6 | $7 | ||||||
Decline in fair value from 100 basis points adverse change in interest rates | 11 | 10 | ||||||
Weighted average discount rate: | ||||||||
Decline in fair value from 50 basis points adverse change | 3 | 3 | ||||||
Decline in fair value from 100 basis points adverse change | 6 | 6 | ||||||
BORROWED_FUNDS_Tables
BORROWED FUNDS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of short-term borrowed funds | ' | |||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||
(dollars in millions) | As of and For the Nine Months Ended September 30, 2014 | As of and For the Year Ended December 31, 2013 | ||||||
Weighted-average interest rate at period end: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.12 | % | 0.09 | % | ||||
Other short-term borrowed funds | 0.25 | 0.2 | ||||||
Maximum amount outstanding at month-end during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $7,022 | $5,114 | ||||||
Other short-term borrowed funds | 7,702 | 2,251 | ||||||
Average amount outstanding during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,908 | $2,400 | ||||||
Other short-term borrowed funds | 5,479 | 259 | ||||||
Weighted-average interest rate during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.08 | % | 0.31 | % | ||||
Other short-term borrowed funds | 0.26 | 0.44 | ||||||
The following is a summary of the Company’s short-term borrowed funds: | ||||||||
(in millions) | As of September 30, 2014 | As of December 31, 2013 | ||||||
Federal funds purchased | $— | $689 | ||||||
Securities sold under agreements to repurchase | 5,184 | 4,102 | ||||||
Other short-term borrowed funds | 6,715 | 2,251 | ||||||
Total short-term borrowed funds | $11,899 | $7,042 | ||||||
Schedule of long-term borrowed funds | ' | |||||||
The following is a summary of the Company’s long-term borrowed funds: | ||||||||
(in millions) | 30-Sep-14 | 31-Dec-13 | ||||||
Citizens Financial Group, Inc.: | ||||||||
4.150% fixed rate subordinated debt, due 2022 | $350 | $350 | ||||||
5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023(1) | 333 | 333 | ||||||
4.771% fixed rate subordinated debt, due 2023(1) | 333 | 333 | ||||||
4.691% fixed rate subordinated debt, due 2024(1) | 334 | 334 | ||||||
4.153% fixed rate subordinated debt, due 2024(1) | 333 | — | ||||||
4.023% fixed rate subordinated debt, due 2024(1) | 333 | — | ||||||
Banking Subsidiaries: | ||||||||
Federal Home Loan advances due through 2033 | 23 | 25 | ||||||
Other | 23 | 30 | ||||||
Total long-term borrowed funds | $2,062 | $1,405 | ||||||
Schedule of maturities of long-term borrowed funds | ' | |||||||
The following is a summary of maturities for the Company’s long-term borrowed funds at September 30, 2014: | ||||||||
Year | (in millions) | |||||||
2015 or on demand | $1 | |||||||
2016 | 5 | |||||||
2017 | 13 | |||||||
2018 | 11 | |||||||
2019 | 1 | |||||||
2020 and thereafter | 2,031 | |||||||
Total | $2,062 | |||||||
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic (income) cost | ' | |||||||||||||||||||||||||||||||||||||||||
The following table presents the components of net periodic (income) cost for the Company's qualified and non-qualified plans: | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | Qualified Plan | Non-Qualified Plan | Total | |||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Service cost | $1 | $1 | $— | $— | $1 | $1 | $3 | $3 | $— | $— | $3 | $3 | ||||||||||||||||||||||||||||||
Interest cost | 11 | 10 | 1 | 1 | 12 | 11 | 33 | 31 | 3 | 3 | 36 | 34 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (18 | ) | (17 | ) | — | — | (18 | ) | (17 | ) | (53 | ) | (51 | ) | — | — | (53 | ) | (51 | ) | ||||||||||||||||||||||
Amortization of actuarial loss | 2 | 3 | — | — | 2 | 3 | 6 | 9 | 1 | 1 | 7 | 10 | ||||||||||||||||||||||||||||||
Net periodic pension (income) cost | ($4 | ) | ($3 | ) | $1 | $1 | ($3 | ) | ($2 | ) | ($11 | ) | ($8 | ) | $4 | $4 | ($7 | ) | ($4 | ) | ||||||||||||||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of derivative instruments in consolidated balance sheets | ' | |||||||||||||||||||
The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
(in millions) | Notional Amount(1) | Derivative Assets | Derivative Liabilities | Notional Amount(1) | Derivative Assets | Derivative Liabilities | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | $5,000 | $22 | $203 | $5,500 | $23 | $412 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 28,940 | 541 | 452 | 29,355 | 654 | 558 | ||||||||||||||
Foreign exchange contracts | 8,278 | 137 | 132 | 7,771 | 94 | 87 | ||||||||||||||
Other contracts | 686 | 6 | 10 | 569 | 7 | 10 | ||||||||||||||
Total derivatives not designated as hedging instruments | 684 | 594 | 755 | 655 | ||||||||||||||||
Gross derivative fair values | 706 | 797 | 778 | 1,067 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets(2) | (159 | ) | (159 | ) | (128 | ) | (128 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets(3) | $547 | $638 | $650 | $939 | ||||||||||||||||
(1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. | ||||||||||||||||||||
(2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||||||||||||||||||||
(3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 "Securities" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information | ||||||||||||||||||||
Schedule of effect of cash flow hedges on net income and stockholders' equity | ' | |||||||||||||||||||
The following table summarizes certain information related to the Company’s cash flow hedges: | ||||||||||||||||||||
The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Effective portion of gain (loss) recognized in OCI(1) | $27 | $2 | $217 | ($191 | ) | |||||||||||||||
Amounts reclassified from OCI to interest income(2) | 18 | 18 | 54 | 38 | ||||||||||||||||
Amounts reclassified from OCI to interest expense(2) | (23 | ) | (48 | ) | (79 | ) | (160 | ) | ||||||||||||
Amounts reclassified from OCI to other income(3) | — | — | — | (2 | ) | |||||||||||||||
(1) The cumulative effective gains and losses on the Company's cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | ||||||||||||||||||||
(2) This amount includes both (a) the amortization of effective gains and losses associated with the Company's terminated cash flow hedges and (b) the current reporting period's interest settlements realized on the Company's active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | ||||||||||||||||||||
(3) This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other income line item on the Consolidated Statements of Operations. | ||||||||||||||||||||
Schedule of effect of derivative Instruments on net income | ' | |||||||||||||||||||
The following table summarizes certain information related to the Company’s economic hedges: | ||||||||||||||||||||
The Effect of Customer Derivatives and Economic Hedges on Net Income | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts(1) | $2 | $55 | $151 | ($95 | ) | |||||||||||||||
Customer foreign exchange contracts(1) | (60 | ) | 32 | (54 | ) | 22 | ||||||||||||||
Residential loan commitments(3) | (4 | ) | 48 | 4 | 8 | |||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts(1) | 5 | (45 | ) | (130 | ) | 133 | ||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts(2) | 59 | (33 | ) | 52 | (20 | ) | ||||||||||||||
Forward sale contracts(3) | 2 | (21 | ) | (2 | ) | 19 | ||||||||||||||
Total | $4 | $36 | $21 | $67 | ||||||||||||||||
(1) Reported in other income on the Consolidated Statements of Operations. | ||||||||||||||||||||
(2) Reported in foreign exchange and trade finance fees on the Consolidated Statements of Operations. | ||||||||||||||||||||
(3) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of outstanding off balance sheet arrangements | ' | |||||||
The following is a summary of outstanding off-balance sheet arrangements: | ||||||||
(in millions) | September 30, 2014 | December 31, 2013 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,333 | $53,987 | ||||||
Financial standby letters of credit | 2,498 | 2,556 | ||||||
Performance letters of credit | 94 | 149 | ||||||
Commercial letters of credit | 74 | 64 | ||||||
Marketing rights | 51 | 54 | ||||||
Risk participation agreements | 16 | 17 | ||||||
Residential mortgage loans sold with recourse | 11 | 13 | ||||||
Total | $58,077 | $56,840 | ||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||
Schedule of inter-company borrowed funds | ' | |||||||||||||
The following is a summary of inter-company borrowed funds: | ||||||||||||||
(dollars in millions) | Related Party | Interest Rate | Maturity Date | September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||||||
Subordinated debt | RBSG | 4.02% | Oct-24 | $333 | $— | |||||||||
RBSG | 4.15% | Jul-24 | 333 | — | ||||||||||
RBSG | 4.69% | Jan-24 | 334 | 334 | ||||||||||
RBSG | 4.77% | Oct-23 | 333 | 333 | ||||||||||
RBS | 5.16% | Jun-23 | 333 | 333 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Difference between aggregate fair value and aggregate unpaid principal balance for residential mortgage loans held-for-sale | ' | |||||||||||||||||||||||||||
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans held for sale measured at fair value: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | ||||||||||||||||||||||
Residential mortgage loans held for sale, at fair value | $189 | $183 | $6 | $176 | $173 | $3 | ||||||||||||||||||||||
Difference between aggregate fair value and aggregate unpaid principal balance for commercial mortgage loans held-for-sale | ' | |||||||||||||||||||||||||||
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for commercial and commercial real estate loans held for sale measured at fair value: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(in millions) | Aggregate Fair Value | Aggregate Unpaid Principal | Aggregate Fair Value Less Aggregate Unpaid Principal | |||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale, at fair value | $16 | $16 | $— | |||||||||||||||||||||||||
Assets and liabilities measured on recurring basis | ' | |||||||||||||||||||||||||||
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at September 30, 2014: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,616 | $— | $18,616 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 18,666 | 23 | 18,643 | — | ||||||||||||||||||||||||
Residential loans held for sale | 189 | — | 189 | — | ||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale | 16 | — | 16 | — | ||||||||||||||||||||||||
Total loans held for sale | 205 | — | 205 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 563 | — | 563 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 137 | — | 137 | — | ||||||||||||||||||||||||
Other contracts | 6 | — | 6 | — | ||||||||||||||||||||||||
Total derivative assets | 706 | — | 706 | — | ||||||||||||||||||||||||
Venture capital investments | 6 | — | — | 6 | ||||||||||||||||||||||||
Total assets | $19,583 | $23 | $19,554 | $6 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $655 | $— | $655 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 132 | — | 132 | — | ||||||||||||||||||||||||
Other contracts | 10 | — | 10 | — | ||||||||||||||||||||||||
Total derivative liabilities | 797 | — | 797 | — | ||||||||||||||||||||||||
Total liabilities | $797 | $— | $797 | $— | ||||||||||||||||||||||||
The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2013: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $15,945 | $— | $15,945 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 15,995 | 23 | 15,972 | — | ||||||||||||||||||||||||
Residential loans held for sale | 176 | — | 176 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 677 | — | 677 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 94 | — | 94 | — | ||||||||||||||||||||||||
Other contracts | 7 | — | 7 | — | ||||||||||||||||||||||||
Total derivative assets | 778 | — | 778 | — | ||||||||||||||||||||||||
Venture capital investments | 5 | — | — | 5 | ||||||||||||||||||||||||
Total assets | $16,954 | $23 | $16,926 | $5 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $970 | $— | $970 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 87 | — | 87 | — | ||||||||||||||||||||||||
Other contracts | 10 | — | 10 | — | ||||||||||||||||||||||||
Total derivative liabilities | 1,067 | — | 1,067 | — | ||||||||||||||||||||||||
Total liabilities | $1,067 | $— | $1,067 | $— | ||||||||||||||||||||||||
The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||
Balance as of January 1, | $5 | $6 | ||||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Sales | — | (4 | ) | |||||||||||||||||||||||||
Settlements | — | 3 | ||||||||||||||||||||||||||
Other net gains | 1 | — | ||||||||||||||||||||||||||
Balance as of period end | $6 | $5 | ||||||||||||||||||||||||||
Net unrealized gain (loss) included in net income for the period relating to assets held at period end | $— | $— | ||||||||||||||||||||||||||
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | ' | |||||||||||||||||||||||||||
The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | ($5 | ) | ($56 | ) | ($99 | ) | ($114 | ) | ||||||||||||||||||||
MSRs(2) | 5 | 3 | 8 | 42 | ||||||||||||||||||||||||
Foreclosed assets(3) | 1 | 1 | 2 | 3 | ||||||||||||||||||||||||
Goodwill impairment(4) | — | — | — | (4,435 | ) | |||||||||||||||||||||||
Fair value of assets and liabilities measured on a nonrecurring basis | ' | |||||||||||||||||||||||||||
The following tables present assets and liabilities measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | $103 | $— | $103 | $— | ||||||||||||||||||||||||
MSRs(2) | 174 | — | — | 174 | ||||||||||||||||||||||||
Foreclosed assets(3) | 40 | — | 40 | — | ||||||||||||||||||||||||
Goodwill(4) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans(1) | $74 | $— | $74 | $— | ||||||||||||||||||||||||
MSRs(2) | 185 | — | — | 185 | ||||||||||||||||||||||||
Foreclosed assets(3) | 49 | — | 49 | — | ||||||||||||||||||||||||
Goodwill(4) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
(1) During the three and nine months ended September 30, 2014, the Company recorded impairment charges of $5 million and $99 million, respectively. The impairment charges included current charges from $144 million of collateral-dependent loans which have been written down to $103 million as of September 30, 2014 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30,2014. During the three and nine months ended September 30, 2013, the Company recorded impairment charges of $56 million and $114 million, respectively. The impairment charges include current charges from $209 million of collateral-dependent loans which have been written down to $113 million as of September 30, 2013 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30, 2013. | ||||||||||||||||||||||||||||
(2) In the first nine months of 2014, MSRs totaling $208 million were evaluated for impairment and written down to $174 million, resulting in an impairment recapture of $8 million and a total cumulative valuation allowance of $15 million. In the first nine months of 2013, MSRs totaling $215 million were evaluated for impairment and written down to $185 million, resulting in an impairment (charge) of $42 million and a total cumulative valuation allowance of $28 million. | ||||||||||||||||||||||||||||
(3) In the first nine months of 2014, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $40 million, resulting in impairment charges of $2 million. In the year ended 2013, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $49 million, resulting in an impairment charge of $4 million. | ||||||||||||||||||||||||||||
(4) In the year ended 2013, Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion, resulting in an impairment charge of $4.4 billion. | ||||||||||||||||||||||||||||
Assets and liabilities measured at fair value | ' | |||||||||||||||||||||||||||
The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||
Loans and leases | $90,749 | $91,227 | $— | $— | $103 | $103 | $90,646 | $91,124 | ||||||||||||||||||||
Other loans held for sale | 3 | 3 | — | — | — | — | 3 | 3 | ||||||||||||||||||||
Securities held to maturity | 5,289 | 5,278 | — | — | 5,289 | 5,278 | — | — | ||||||||||||||||||||
Other investment securities | 893 | 893 | — | — | 893 | 893 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 93,463 | 93,791 | — | — | 93,463 | 93,791 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 7,310 | — | — | 5,184 | 7,310 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 6,715 | 6,710 | — | — | 6,715 | 6,710 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 2,062 | 2,060 | — | — | 2,062 | 2,060 | — | — | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||
Loans and leases | $85,859 | $85,724 | $— | $— | $74 | $74 | $85,785 | $85,650 | ||||||||||||||||||||
Other loans held for sale | 1,078 | 1,078 | — | — | — | — | 1,078 | 1,078 | ||||||||||||||||||||
Securities held to maturity | 4,315 | 4,257 | — | — | 4,315 | 4,257 | — | — | ||||||||||||||||||||
Other investment securities | 935 | 935 | — | — | 935 | 935 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 86,903 | 86,907 | — | — | 86,903 | 86,907 | — | — | ||||||||||||||||||||
Deposits held for sale | 5,277 | 5,277 | — | — | 5,277 | 5,277 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,791 | 4,791 | — | — | 4,791 | 4,791 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 2,251 | 2,249 | — | — | 2,251 | 2,249 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 1,405 | 1,404 | — | — | 1,405 | 1,404 | — | — | ||||||||||||||||||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | |||||||||||||||||
The following table presents capital and capital ratio information: | ||||||||||||||||||
FDIC Requirements | ||||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well Capitalized | ||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of September 30, 2014 | ||||||||||||||||||
Total Capital to Risk-Weighted Assets | $16,612 | 16.1 | % | $8,257 | 8 | % | $10,321 | 10 | % | |||||||||
Tier 1 Capital to Risk-Weighted Assets | 13,330 | 12.9 | 4,128 | 4 | 6,192 | 6 | ||||||||||||
Tier 1 Capital to Average Assets (Leverage) | 13,330 | 10.9 | 4,901 | 4 | 6,126 | 5 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Total Capital to Risk-Weighted Assets | $15,885 | 16.1 | % | $7,891 | 8 | % | $9,863 | 10 | % | |||||||||
Tier 1 Capital to Risk-Weighted Assets | 13,301 | 13.5 | 3,945 | 4 | 5,918 | 6 | ||||||||||||
Tier 1 Capital to Average Assets (Leverage) | 13,301 | 11.6 | 4,577 | 4 | 5,721 | 5 | ||||||||||||
EXIT_COSTS_AND_RESTRUCTURING_R1
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Schedule of restructuring and related costs | ' | ||||
The following table includes the activity in the exit costs and restructuring reserves: | |||||
(in millions) | Salaries & Employee Benefits | Occupancy & Equipment | Other | Total | |
Reserve balance as of December 31, 2012 | $3 | $27 | $— | $30 | |
Additions | 6 | 22 | 3 | 31 | |
Reversals | -1 | -4 | — | -5 | |
Utilization | -6 | -21 | -3 | -30 | |
Reserve balance as of December 31, 2013 | 2 | 24 | — | 26 | |
Additions | 43 | 17 | 48 | 108 | |
Reversals | -1 | -3 | — | -4 | |
Utilization | -10 | -18 | -28 | -56 | |
Reserve balance as of September 30, 2014 | $34 | $20 | $20 | $74 |
RECLASSIFICATIONS_OUT_OF_ACCUM1
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Schedule of other comprehensive income | ' | ||||||||||||||||||
The following tables present the changes in the balances, net of taxes, of each component of AOCI: | |||||||||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||
Balance at December 31, 2012 | ($240 | ) | $306 | ($378 | ) | ($312 | ) | ||||||||||||
Other comprehensive loss before reclassifications | (121 | ) | (184 | ) | — | (305 | ) | ||||||||||||
Other-than-temporary impairment not recognized in earnings on securities | — | (35 | ) | — | (35 | ) | |||||||||||||
Amounts reclassified from other comprehensive income | 79 | (71 | ) | 5 | 13 | ||||||||||||||
Net other comprehensive (loss) income | (42 | ) | (290 | ) | 5 | (327 | ) | ||||||||||||
Balance at September 30, 2013 | ($282 | ) | $16 | ($373 | ) | ($639 | ) | ||||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||
Balance at December 31, 2013 | ($298 | ) | ($91 | ) | ($259 | ) | ($648 | ) | |||||||||||
Other comprehensive income before reclassifications | 137 | 127 | — | 264 | |||||||||||||||
Other-than-temporary impairment not recognized in earnings on securities | — | (22 | ) | — | (22 | ) | |||||||||||||
Amounts reclassified from other comprehensive income | 16 | (13 | ) | (32 | ) | (29 | ) | ||||||||||||
Net other comprehensive income | 153 | 92 | (32 | ) | 213 | ||||||||||||||
Balance at September 30, 2014 | ($145 | ) | $1 | ($291 | ) | ($435 | ) | ||||||||||||
Schedule of reclassification out of accumulated other comprehensive income | ' | ||||||||||||||||||
The following table presents the effects to net income of the amounts reclassified out of OCI: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net interest income (includes ($5), ($30), ($25) and ($122) of AOCI reclassifications, respectively) | $820 | $770 | $2,461 | $2,279 | |||||||||||||||
Provision for credit losses | 77 | 145 | 247 | 347 | |||||||||||||||
Noninterest income (includes $1, $22, $20 and $110 of AOCI reclassifications, respectively) | 341 | 383 | 1,339 | 1,253 | |||||||||||||||
Noninterest expense (includes ($52), $3, ($49) and $9 of AOCI reclassifications, respectively) | 810 | 788 | 2,568 | 6,861 | |||||||||||||||
Income before income tax expense (benefit) | 274 | 220 | 985 | (3,676 | ) | ||||||||||||||
Income tax expense (benefit) (includes $16, ($5), $15 and ($8) income tax net expense and (benefit) from reclassification items, respectively) | 85 | 76 | 317 | (98 | ) | ||||||||||||||
Net income (loss) | $189 | $144 | $668 | ($3,578 | ) | ||||||||||||||
The following table reports the amounts reclassified out of each component of OCI and into the Consolidated Statements of Operations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Details about AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $18 | $18 | $54 | $38 | Interest income | ||||||||||||||
(23 | ) | (48 | ) | (79 | ) | (160 | ) | Interest expense | |||||||||||
— | — | — | (2 | ) | Other income | ||||||||||||||
(5 | ) | (30 | ) | (25 | ) | (124 | ) | Income (loss) before income tax expense (benefit) | |||||||||||
(2 | ) | (11 | ) | (9 | ) | (45 | ) | Income tax expense (benefit) | |||||||||||
($3 | ) | ($19 | ) | ($16 | ) | ($79 | ) | Net income (loss) | |||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $2 | $25 | $27 | $119 | Securities gains, net | ||||||||||||||
(1 | ) | (3 | ) | (7 | ) | (7 | ) | Net impairment losses recognized in earnings | |||||||||||
1 | 22 | 20 | 112 | Income (loss) before income tax expense (benefit) | |||||||||||||||
— | 7 | 7 | 41 | Income tax expense (benefit) | |||||||||||||||
$1 | $15 | $13 | $71 | Net income (loss) | |||||||||||||||
Reclassification of changes related to the employee benefit plan: | $52 | ($3 | ) | $49 | ($9 | ) | Salaries and employee benefits | ||||||||||||
52 | (3 | ) | 49 | (9 | ) | Income (loss) before income tax expense (benefit) | |||||||||||||
18 | (1 | ) | 17 | (4 | ) | Income tax expense (benefit) | |||||||||||||
$34 | ($2 | ) | $32 | ($5 | ) | Net income (loss) | |||||||||||||
Total reclassification losses | $32 | ($6 | ) | $29 | ($13 | ) | Net income (loss) | ||||||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of segment reporting information | ' | |||||||||||||||
As of and for the Three Months Ended September 30, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $532 | $270 | $18 | $820 | ||||||||||||
Noninterest income | 226 | 104 | 11 | 341 | ||||||||||||
Total revenue | 758 | 374 | 29 | 1,161 | ||||||||||||
Noninterest expense | 609 | 162 | 39 | 810 | ||||||||||||
Profit (loss) before provision for credit losses | 149 | 212 | (10 | ) | 351 | |||||||||||
Provision for credit losses | 66 | — | 11 | 77 | ||||||||||||
Income (loss) before income tax expense (benefit) | 83 | 212 | (21 | ) | 274 | |||||||||||
Income tax expense (benefit) | 29 | 73 | (17 | ) | 85 | |||||||||||
Net income (loss) | $54 | $139 | ($4 | ) | $189 | |||||||||||
Total Average Assets | $49,012 | $38,854 | $40,825 | $128,691 | ||||||||||||
As of and for the Three months ended September 30, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $543 | $263 | ($36 | ) | $770 | |||||||||||
Noninterest income | 246 | 93 | 44 | 383 | ||||||||||||
Total revenue | 789 | 356 | 8 | 1,153 | ||||||||||||
Noninterest expense | 622 | 156 | 10 | 788 | ||||||||||||
Profit (loss) before provision for credit losses | 167 | 200 | (2 | ) | 365 | |||||||||||
Provision for credit losses | 87 | 3 | 55 | 145 | ||||||||||||
Income (loss) before income tax expense (benefit) | 80 | 197 | (57 | ) | 220 | |||||||||||
Income tax expense (benefit) | 28 | 70 | (22 | ) | 76 | |||||||||||
Net income (loss) | $52 | $127 | ($35 | ) | $144 | |||||||||||
Total Average Assets | $46,169 | $35,019 | $36,198 | $117,386 | ||||||||||||
As of and for the Nine Months Ended September 30, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $1,615 | $790 | $56 | $2,461 | ||||||||||||
Noninterest income | 681 | 318 | 340 | 1,339 | ||||||||||||
Total revenue | 2,296 | 1,108 | 396 | 3,800 | ||||||||||||
Noninterest expense | 1,902 | 472 | 194 | 2,568 | ||||||||||||
Profit before provision for credit losses | 394 | 636 | 202 | 1,232 | ||||||||||||
Provision for credit losses | 195 | (7 | ) | 59 | 247 | |||||||||||
Income before income tax expense | 199 | 643 | 143 | 985 | ||||||||||||
Income tax expense | 69 | 222 | 26 | 317 | ||||||||||||
Net income | $130 | $421 | $117 | $668 | ||||||||||||
Total Average Assets | $48,398 | $37,951 | $40,249 | $126,598 | ||||||||||||
As of and for the Nine Months Ended September 30, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $1,633 | $771 | ($125 | ) | $2,279 | |||||||||||
Noninterest income | 790 | 284 | 179 | 1,253 | ||||||||||||
Total revenue | 2,423 | 1,055 | 54 | 3,532 | ||||||||||||
Noninterest expense | 1,884 | 471 | 4,506 | 6,861 | ||||||||||||
Profit (loss) before provision for credit losses | 539 | 584 | (4,452 | ) | (3,329 | ) | ||||||||||
Provision for credit losses | 243 | (21 | ) | 125 | 347 | |||||||||||
Income (loss) before income tax expense (benefit) | 296 | 605 | (4,577 | ) | (3,676 | ) | ||||||||||
Income tax expense (benefit) | 104 | 214 | (416 | ) | (98 | ) | ||||||||||
Net income (loss) | $192 | $391 | ($4,161 | ) | ($3,578 | ) | ||||||||||
Total Average Assets | $46,546 | $34,938 | $39,542 | $121,026 | ||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of earnings per share | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollars in millions, except share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Numerator: | ||||||||||||||||
Basic: | ||||||||||||||||
Net income (loss) from operations | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Less: undistributed earnings allocated to participating securities | — | — | — | — | ||||||||||||
Net income (loss) available to common shareholders | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Diluted: | ||||||||||||||||
Net income (loss) from operations | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Less: undistributed earnings allocated to participating securities | — | — | — | — | ||||||||||||
Net income (loss) available to common shareholders | $189 | $144 | $668 | ($3,578 | ) | |||||||||||
Denominator: | ||||||||||||||||
Weighted-average common shares outstanding - basic | 559,998,324 | 559,998,324 | 559,998,324 | 559,998,324 | ||||||||||||
Dilutive common shares | 245,423 | — | 82,707 | — | ||||||||||||
Weighted-average common shares outstanding - diluted | 560,243,747 | 559,998,324 | 560,081,031 | 559,998,324 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $0.34 | $0.26 | $1.19 | ($6.39 | ) | |||||||||||
Diluted | 0.34 | 0.26 | 1.19 | (6.39 | ) | |||||||||||
OTHER_OPERATING_EXPENSE_Tables
OTHER OPERATING EXPENSE (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Schedule of other operating expense | ' | |||||||||||||||
The following table presents the details of other operating expense: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Deposit insurance | $23 | $18 | $69 | $67 | ||||||||||||
Promotional expense | 19 | 18 | 60 | 56 | ||||||||||||
Settlements and operating losses | 10 | 9 | 74 | 32 | ||||||||||||
Postage and delivery | 12 | 14 | 37 | 39 | ||||||||||||
Other | 58 | 64 | 199 | 190 | ||||||||||||
Other operating expense | $122 | $123 | $439 | $384 | ||||||||||||
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION - Narrative (Details) | 0 Months Ended |
Aug. 22, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Stock split | 165,582 |
SECURITIES_Narrative_Details
SECURITIES - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative balance at end of period | $60 | $56 | $60 | $56 | $60 | $56 | $56 | $55 |
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 3 | 7 | 7 | ' | ' | ' | ' |
Reductions due to increases in cash flow expectations on impaired securities | 1 | 3 | 3 | 6 | ' | ' | ' | ' |
Pretax non-credit related losses were deferred in OCI | ' | ' | 35 | 54 | ' | ' | ' | ' |
Gain on sale of debt securities | $2 | $25 | $27 | $119 | ' | ' | ' | ' |
SECURITIES_Schedule_of_Investm
SECURITIES - Schedule of Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Equity Securities Available-for-sale, Amortized Cost | $18,553 | $16,010 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 216 | 159 |
Equity Securities Available-for-sale, Gross Unrealized Losses | -103 | -174 |
Equity Securities Available-for-sale, Fair Value | 18,666 | 15,995 |
Securities Held-to-maturity, Amortized Cost | 5,289 | 4,315 |
Securities Held-to-maturity, Gross Unrealized Gain | 35 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | -46 | -58 |
Securities held-to-maturity, Fair Value | 5,278 | 4,257 |
Other Investment Securities, Amortized Cost | 893 | 935 |
Other Investment Securities, Gross Unrealized Gains | 0 | 0 |
Other Investment Securities, Gross Unrealized Losses | 0 | 0 |
Other Investment Securities, Fair Value | 893 | 935 |
U.S. Treasury | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 15 | 15 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Debt Securities Available-for-sale, Fair Value | 15 | 15 |
State and political subdivisions | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 10 | 11 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | -1 |
Debt Securities Available-for-sale, Fair Value | 10 | 10 |
Federal agencies and U.S. government sponsored entities | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 17,759 | 14,970 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 207 | 151 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -68 | -128 |
Debt Securities Available-for-sale, Fair Value | 17,898 | 14,993 |
Securities Held-to-maturity, Amortized Cost | 3,833 | 2,940 |
Securities Held-to-maturity, Gross Unrealized Gain | 9 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | -46 | -33 |
Securities held-to-maturity, Fair Value | 3,796 | 2,907 |
Other/non-agency | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 747 | 992 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 6 | 5 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -35 | -45 |
Debt Securities Available-for-sale, Fair Value | 718 | 952 |
Securities Held-to-maturity, Amortized Cost | 1,456 | 1,375 |
Securities Held-to-maturity, Gross Unrealized Gain | 26 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | -25 |
Securities held-to-maturity, Fair Value | 1,482 | 1,350 |
Total mortgage-backed securities | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 18,506 | 15,962 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 213 | 156 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -103 | -173 |
Debt Securities Available-for-sale, Fair Value | 18,616 | 15,945 |
Total debt securities available for sale | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Debt Securities Available-for-sale, Amortized Cost | 18,531 | 15,988 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 213 | 156 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -103 | -174 |
Debt Securities Available-for-sale, Fair Value | 18,641 | 15,970 |
Marketable equity securities | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Equity Securities Available-for-sale, Amortized Cost | 10 | 10 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 3 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 13 | 13 |
Other equity securities | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Equity Securities Available-for-sale, Amortized Cost | 12 | 12 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 12 | 12 |
Total equity securities available for sale | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Equity Securities Available-for-sale, Amortized Cost | 22 | 22 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 3 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 25 | 25 |
Federal Reserve Bank stock | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Federal Reserve Bank Stock, Amortized Cost | 470 | 462 |
Federal Reserve Bank Stock, Gross Unrealized Gains | 0 | 0 |
Federal Reserve Bank Stock, Gross Unrealized Loss | 0 | 0 |
Federal Reserve Bank Stock, Fair Value | 470 | 462 |
Federal Home Loan Bank stock | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Federal Home Loan Bank Stock, Amortized Cost | 417 | 468 |
Federal Home Loan Bank Stock, Gross Unrealized Gain | 0 | 0 |
Federal Home Loan Bank Stock, Gross Unrealized Loss | 0 | 0 |
Federal Home Loan Bank Stock, Fair Value | 417 | 468 |
Total other investment securities | ' | ' |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ' | ' |
Venture Capital, Amortized Cost | 6 | 5 |
Venture Capital, Gross Unrealized Gain | 0 | 0 |
Venture Capital, Gross Unrealized Loss | 0 | 0 |
Venture Capital, Fair Value | $6 | $5 |
SECURITIES_Schedule_of_Investm1
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Securities | Securities | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 126 | 286 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $7,290 | $13,529 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -64 | -193 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 63 | 26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,637 | 510 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -85 | -39 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 189 | 312 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 8,927 | 14,039 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -149 | -232 |
U.S. Treasury | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 0 | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | 0 | ' |
State and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 0 | 1 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 10 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | 0 | -1 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 1 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 10 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | 0 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 1 | 1 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 10 | 10 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | 0 | -1 |
Federal agencies and U.S. government sponsored entities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 121 | 263 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 7,178 | 12,067 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -63 | -158 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 45 | 7 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,213 | 20 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -51 | -2 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 166 | 270 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 8,391 | 12,087 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -114 | -160 |
Other/non-agency | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 5 | 22 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 112 | 1,452 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -1 | -34 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 17 | 19 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 414 | 490 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -34 | -37 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 22 | 41 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 526 | 1,942 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -35 | -71 |
Total mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | 126 | 285 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 7,290 | 13,519 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -64 | -192 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 62 | 26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,627 | 510 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -85 | -39 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 188 | 311 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 8,917 | 14,029 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | ($149) | ($231) |
SECURITIES_Schedule_of_Cumulat
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' | ' |
Cumulative balance at beginning of period | $60 | $56 | $56 | $55 |
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 3 | 7 | 7 |
Reductions due to increases in cash flow expectations on impaired securities | -1 | -3 | -3 | -6 |
Cumulative balance at end of period | $60 | $56 | $60 | $56 |
SECURITIES_Schedule_of_Availab
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis, [Abstract] [Abstract] | ' |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | $19 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 117 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,500 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,895 |
Amortized Cost, Debt securities available for sale, Total | 18,531 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 5,289 |
Amortized Cost, Debt securities held to maturity, Total | 5,289 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 19 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 117 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 2,500 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,184 |
Total amortized cost of debt securities, Total | 23,820 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | ' |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 19 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 121 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,505 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,996 |
Fair Value, Debt securities available for sale, Total | 18,641 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 5,278 |
Fair Value, Debt securities held to maturity, Total | 5,278 |
Total fair value of debt securities, Maturity of 1 Year or Less | 19 |
Total fair value of debt securities, Maturity of 1-5 Years | 121 |
Total fair value of debt securities, Maturity of 5-10 Years | 2,505 |
Total fair value of debt securities, Maturity of 5-10 Years | 21,274 |
Total fair value of debt securities, Total | 23,919 |
U.S. Treasury | ' |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis, [Abstract] [Abstract] | ' |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 15 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 15 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | ' |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 15 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 15 |
State and political subdivisions | ' |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis, [Abstract] [Abstract] | ' |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 10 |
Amortized Cost, Debt securities available for sale, Total | 10 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | ' |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 10 |
Fair Value, Debt securities available for sale, Total | 10 |
Federal agencies and U.S. government sponsored entities | ' |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis, [Abstract] [Abstract] | ' |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 4 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 56 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,438 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,261 |
Amortized Cost, Debt securities available for sale, Total | 17,759 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,833 |
Amortized Cost, Debt securities held to maturity, Total | 3,833 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | ' |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 4 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 60 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,441 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,393 |
Fair Value, Debt securities available for sale, Total | 17,898 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,796 |
Fair Value, Debt securities held to maturity, Total | 3,796 |
Other/non-agency | ' |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis, [Abstract] [Abstract] | ' |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 61 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 62 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 624 |
Amortized Cost, Debt securities available for sale, Total | 747 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 1,456 |
Amortized Cost, Debt securities held to maturity, Total | 1,456 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | ' |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 61 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 64 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 593 |
Fair Value, Debt securities available for sale, Total | 718 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 1,482 |
Fair Value, Debt securities held to maturity, Total | $1,482 |
SECURITIES_Schedule_of_Taxable
SECURITIES - Schedule of Taxable and Non-taxable Interest Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Taxable | $155 | $120 | $458 | $348 |
Non-taxable | 0 | 0 | 0 | 0 |
Total interest income from investment securities | $155 | $120 | $458 | $348 |
SECURITIES_Schedule_of_Securit
SECURITIES - Schedule of Securities Pledged (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Pledged against repurchase agreements, Amortized Cost | $5,129 | $5,016 |
Pledged against repurchase agreements, Fair Value | 5,165 | 4,998 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,390 | 1 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,416 | 1 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,463 | 2,818 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $3,514 | $2,853 |
SECURITIES_Schedule_of_Balance
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Gross Assets (Liabilities) | ' | ' |
Schedule of Repurchase Agreements [Line Items] | ' | ' |
Securities purchased under agreements to resell | $0 | $0 |
Securities sold under agreements to repurchase | -4,100 | -3,000 |
Gross Assets (Liabilities) Offset | ' | ' |
Schedule of Repurchase Agreements [Line Items] | ' | ' |
Securities purchased under agreements to resell | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Net Amounts of Assets (Liabilities) | ' | ' |
Schedule of Repurchase Agreements [Line Items] | ' | ' |
Securities purchased under agreements to resell | 0 | 0 |
Securities sold under agreements to repurchase | ($4,100) | ($3,000) |
LOANS_AND_LEASES_Narrative_Det
LOANS AND LEASES (Narrative) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Retail branches | Residential Mortgages | Residential Mortgages | Residential Mortgages | Residential Mortgages | Residential, including originated home equity products | Consumer Loans Auto Financing Receivable | Consumer Student Loans Receivable | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans held for sale | ' | $205,000,000 | $176,000,000 | ' | ' | ' | $205,000,000 | $176,000,000 | ' | ' | ' | ' |
Other loans held for sale | ' | 3,000,000 | 1,078,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans pledged as collateral for FHLB borrowed funds | ' | ' | ' | ' | 19,500,000,000 | 19,000,000,000 | ' | ' | ' | ' | ' | ' |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | ' | ' | ' | ' | 13,400,000,000 | 13,900,000,000 | ' | ' | ' | ' | ' | ' |
Loans purchased during period | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000,000 | 1,300,000,000 | 59,000,000 | ' |
Loans sold during period | $0 | ' | ' | $1,000,000,000 | ' | ' | ' | ' | $126,000,000 | ' | $357,000,000 | $165,000,000 |
LOANS_AND_LEASES_Summary_of_Lo
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total commercial | $41,470,000,000 | $39,395,000,000 | ||
Total retail | 49,279,000,000 | 46,464,000,000 | ||
Total loans and leases | 90,749,000,000 | [1],[2] | 85,859,000,000 | [1],[2] |
Loans held for sale | 205,000,000 | 176,000,000 | ||
Residential Mortgage and Other [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Loans held for sale | 208,000,000 | 1,300,000,000 | ||
Commercial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total commercial | 30,356,000,000 | 28,667,000,000 | ||
Commercial real estate | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total commercial | 7,239,000,000 | 6,948,000,000 | ||
Leases | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total commercial | 3,875,000,000 | 3,780,000,000 | ||
Residential, including originated home equity products | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total retail | 30,458,000,000 | 29,694,000,000 | ||
Home equity products serviced by others | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total retail | 1,870,000,000 | 2,171,000,000 | ||
Other secured retail | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total retail | 13,206,000,000 | 10,700,000,000 | ||
Unsecured retail | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Total retail | 3,745,000,000 | 3,899,000,000 | ||
Banking Subsidiaries | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Mortgage loans serviced for others by the Company's subsidiaries | $18,100,000,000 | $18,700,000,000 | ||
[1] | Excluded from the table above are loans held for sale totaling $208 million as of September 30, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches. For further discussion, see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $18.1 billion and $18.7 billion at September 30, 2014 and December 31, 2013, respectively. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||
Total commercial | Total commercial | Total retail | |||||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | ' | |||
High loan to value criteria | 90.00% | 90.00% | ' | ' | ' | ' | |||
TDR balance | ' | ' | ' | $140 | [1] | $167 | [1] | $1,200 | [1] |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $48 | ' | $52 | ' | ' | ' | |||
[1] | Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). |
ALLOWANCE_FOR_CREDIT_LOSSES_NO3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | $1,221 | ' |
Provision for credit losses | 247 | 347 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 1,201 | ' |
Allowance for loan and lease losses | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 1,221 | 1,255 |
Charge-offs | -374 | -542 |
Recoveries | 131 | 156 |
Net recoveries (charge-offs) | -243 | -386 |
Provision for credit losses | 223 | -350 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 1,201 | 1,219 |
Allowance for loan and lease losses | Commercial | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 498 | 509 |
Charge-offs | -30 | -72 |
Recoveries | 47 | 69 |
Net recoveries (charge-offs) | 17 | -3 |
Provision for credit losses | 27 | -51 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 542 | 455 |
Allowance for loan and lease losses | Retail | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 723 | 657 |
Charge-offs | -344 | -470 |
Recoveries | 84 | 87 |
Net recoveries (charge-offs) | -260 | -383 |
Provision for credit losses | 196 | -329 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 659 | 603 |
Allowance for loan and lease losses | Unallocated | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | ' | 89 |
Charge-offs | ' | 0 |
Recoveries | ' | 0 |
Net recoveries (charge-offs) | ' | 0 |
Provision for credit losses | ' | -72 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | ' | 161 |
Reserve for unfunded lending commitments | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 39 | 40 |
Provision for Other Credit Losses | -24 | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 63 | 37 |
Reserve for unfunded lending commitments | Commercial | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 39 | 40 |
Provision for Other Credit Losses | -24 | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 63 | 37 |
Reserve for unfunded lending commitments | Retail | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 0 | 0 |
Provision for Other Credit Losses | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 0 | 0 |
Reserve for unfunded lending commitments | Unallocated | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | ' | 0 |
Provision for Other Credit Losses | ' | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | ' | 0 |
Allowance for loan and lease losses and reserve for off-balance sheet activities. Total | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 1,264 | 1,256 |
Allowance for loan and lease losses and reserve for off-balance sheet activities. Total | Commercial | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 605 | 492 |
Allowance for loan and lease losses and reserve for off-balance sheet activities. Total | Retail | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | 659 | 603 |
Allowance for loan and lease losses and reserve for off-balance sheet activities. Total | Unallocated | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' |
Allowance for loan and lease losses / Reserve for unfunded lending commitments | ' | $161 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO4
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) (Loans and Leases, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Individually evaluated | $1,405 | $1,439 |
Formula-based evaluation | 89,344 | 84,420 |
Total | 90,749 | 85,859 |
Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Individually evaluated | 191 | 239 |
Formula-based evaluation | 41,279 | 39,156 |
Total | 41,470 | 39,395 |
Total retail | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Individually evaluated | 1,214 | 1,200 |
Formula-based evaluation | 48,065 | 45,264 |
Total | $49,279 | $46,464 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Allowance for Credit Losses by Evaluation Method (Details) (Loans and Leases, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Individually evaluated | $130 | $131 |
Formula-based evaluation | 1,134 | 1,129 |
Allowance for credit losses | 1,264 | 1,260 |
Total commercial | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Individually evaluated | 14 | 23 |
Formula-based evaluation | 591 | 514 |
Allowance for credit losses | 605 | 537 |
Total retail | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Individually evaluated | 116 | 108 |
Formula-based evaluation | 543 | 615 |
Allowance for credit losses | $659 | $723 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Commercial Loans and Leases by Regulatory Classification Ratings (Details) (Loans and Leases, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | $90,749 | $85,859 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 30,356 | 28,667 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 7,239 | 6,948 |
Leases | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 3,875 | 3,780 |
Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 41,470 | 39,395 |
Pass | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 28,857 | 27,433 |
Pass | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 6,869 | 6,366 |
Pass | Leases | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 3,814 | 3,679 |
Pass | Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 39,540 | 37,478 |
Special Mention | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 861 | 588 |
Special Mention | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 207 | 339 |
Special Mention | Leases | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 15 | 40 |
Special Mention | Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 1,083 | 967 |
Substandard | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 517 | 541 |
Substandard | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 97 | 116 |
Substandard | Leases | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 46 | 61 |
Substandard | Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 660 | 718 |
Doubtful | Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 121 | 105 |
Doubtful | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 66 | 127 |
Doubtful | Leases | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 0 | 0 |
Doubtful | Total commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | $187 | $232 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) (Loans and Leases, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Total | $90,749 | $85,859 |
Residential, including originated home equity products | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 28,852 | 27,912 |
1-29 Days Past Due | 811 | 861 |
30-89 Days Past Due | 227 | 259 |
90 Days or More Past Due | 568 | 662 |
Total | 30,458 | 29,694 |
Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 1,638 | 1,901 |
1-29 Days Past Due | 138 | 167 |
30-89 Days Past Due | 42 | 43 |
90 Days or More Past Due | 52 | 60 |
Total | 1,870 | 2,171 |
Other secured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 12,438 | 10,068 |
1-29 Days Past Due | 673 | 550 |
30-89 Days Past Due | 79 | 66 |
90 Days or More Past Due | 16 | 16 |
Total | 13,206 | 10,700 |
Unsecured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 3,548 | 3,593 |
1-29 Days Past Due | 118 | 185 |
30-89 Days Past Due | 49 | 67 |
90 Days or More Past Due | 30 | 54 |
Total | 3,745 | 3,899 |
Total retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 46,476 | 43,474 |
1-29 Days Past Due | 1,740 | 1,763 |
30-89 Days Past Due | 397 | 435 |
90 Days or More Past Due | 666 | 792 |
Total | $49,279 | $46,464 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | $1,071 | $1,383 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 8 | 33 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 1,079 | 1,416 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 93 | 96 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 93 | 96 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 82 | 169 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 1 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 83 | 169 |
Leases | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 0 | 0 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 0 | 0 |
Total commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 175 | 265 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 1 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 176 | 265 |
Residential, including originated home equity products | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 770 | 981 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 770 | 981 |
Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 81 | 89 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 81 | 89 |
Other secured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 22 | 26 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 22 | 26 |
Unsecured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 23 | 22 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 7 | 33 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 30 | 55 |
Total retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Financing Receivable, Recorded Investment, Nonaccruing | 896 | 1,118 |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 7 | 33 |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | $903 | $1,151 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO9
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming assets, net of valuation allowance | $42 | $50 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming assets, net of valuation allowance | 3 | 10 |
Retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming assets, net of valuation allowance | $39 | $40 |
Recovered_Sheet1
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming loans and leases as a percentage of total loans and leases | 1.19% | 1.65% |
Nonperforming assets as a percentage of total assets | 0.85% | 1.20% |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming loans and leases as a percentage of total loans and leases | 0.19% | 0.31% |
Nonperforming assets as a percentage of total assets | 0.13% | 0.23% |
Retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonperforming loans and leases as a percentage of total loans and leases | 1.00% | 1.34% |
Nonperforming assets as a percentage of total assets | 0.72% | 0.97% |
Recovered_Sheet2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | $471 | $554 |
90 Days or More Past Due | 842 | 1,057 |
Total Past Due | 1,313 | 1,611 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 30 | 61 |
90 Days or More Past Due | 93 | 96 |
Total Past Due | 123 | 157 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 42 | 34 |
90 Days or More Past Due | 83 | 169 |
Total Past Due | 125 | 203 |
Leases | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 2 | 24 |
90 Days or More Past Due | 0 | 0 |
Total Past Due | 2 | 24 |
Total commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 74 | 119 |
90 Days or More Past Due | 176 | 265 |
Total Past Due | 250 | 384 |
Residential, including originated home equity products | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 227 | 259 |
90 Days or More Past Due | 568 | 662 |
Total Past Due | 795 | 921 |
Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 42 | 43 |
90 Days or More Past Due | 52 | 60 |
Total Past Due | 94 | 103 |
Other secured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 79 | 66 |
90 Days or More Past Due | 16 | 16 |
Total Past Due | 95 | 82 |
Unsecured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 49 | 67 |
90 Days or More Past Due | 30 | 54 |
Total Past Due | 79 | 121 |
Total retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-89 Days Past Due | 397 | 435 |
90 Days or More Past Due | 666 | 792 |
Total Past Due | $1,063 | $1,227 |
Recovered_Sheet3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Larger balance commercial loans minimum balance | $3 | ' |
Impaired Loans With a Related Allowance | 779 | 832 |
Allowance on Impaired Loans | 130 | 131 |
Impaired Loans Without a Related Allowance | 638 | 607 |
Unpaid Contractual Balance | 1,755 | 1,885 |
Total Recorded Investment in Impaired Loans | 1,417 | 1,439 |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 116 | 86 |
Allowance on Impaired Loans | 14 | 15 |
Impaired Loans Without a Related Allowance | 53 | 33 |
Unpaid Contractual Balance | 195 | 214 |
Total Recorded Investment in Impaired Loans | 169 | 119 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 0 | 76 |
Allowance on Impaired Loans | 0 | 8 |
Impaired Loans Without a Related Allowance | 34 | 44 |
Unpaid Contractual Balance | 72 | 221 |
Total Recorded Investment in Impaired Loans | 34 | 120 |
Total commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 116 | 162 |
Allowance on Impaired Loans | 14 | 23 |
Impaired Loans Without a Related Allowance | 87 | 77 |
Unpaid Contractual Balance | 267 | 435 |
Total Recorded Investment in Impaired Loans | 203 | 239 |
Residential, including originated home equity products | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 361 | 355 |
Allowance on Impaired Loans | 57 | 59 |
Impaired Loans Without a Related Allowance | 518 | 497 |
Unpaid Contractual Balance | 1,131 | 1,081 |
Total Recorded Investment in Impaired Loans | 879 | 852 |
Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 83 | 91 |
Allowance on Impaired Loans | 14 | 11 |
Impaired Loans Without a Related Allowance | 23 | 21 |
Unpaid Contractual Balance | 120 | 125 |
Total Recorded Investment in Impaired Loans | 106 | 112 |
Other secured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 21 | 23 |
Allowance on Impaired Loans | 4 | 3 |
Impaired Loans Without a Related Allowance | 10 | 12 |
Unpaid Contractual Balance | 39 | 43 |
Total Recorded Investment in Impaired Loans | 31 | 35 |
Unsecured retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 198 | 201 |
Allowance on Impaired Loans | 41 | 35 |
Impaired Loans Without a Related Allowance | 0 | 0 |
Unpaid Contractual Balance | 198 | 201 |
Total Recorded Investment in Impaired Loans | 198 | 201 |
Total retail | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Impaired Loans With a Related Allowance | 663 | 670 |
Allowance on Impaired Loans | 116 | 108 |
Impaired Loans Without a Related Allowance | 551 | 530 |
Unpaid Contractual Balance | 1,488 | 1,450 |
Total Recorded Investment in Impaired Loans | $1,214 | $1,200 |
Recovered_Sheet4
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | $13 | $10 | $35 | $24 |
Average Recorded Investment | 1,396 | 1,421 | 1,368 | 1,407 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 2 | 1 | 2 | 2 |
Average Recorded Investment | 138 | 154 | 141 | 169 |
Commercial real estate | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 0 | 0 | 1 | 1 |
Average Recorded Investment | 62 | 154 | 70 | 172 |
Total commercial | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 2 | 1 | 3 | 3 |
Average Recorded Investment | 200 | 308 | 211 | 341 |
Residential, including originated home equity products | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 6 | 6 | 19 | 9 |
Average Recorded Investment | 865 | 762 | 835 | 727 |
Home equity products serviced by others | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 1 | 1 | 4 | 4 |
Average Recorded Investment | 106 | 118 | 105 | 119 |
Other secured retail | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 1 | -4 | 1 | 0 |
Average Recorded Investment | 30 | 36 | 29 | 35 |
Unsecured retail | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 3 | 6 | 8 | 8 |
Average Recorded Investment | 195 | 197 | 188 | 185 |
Total retail | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Interest Income Recognized | 11 | 9 | 32 | 21 |
Average Recorded Investment | $1,196 | $1,113 | $1,157 | $1,066 |
Recovered_Sheet5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Commitments to lend additional funds to debtors owing receivables which were TDRs | $48 | ' | $48 | ' | $52 | |||||
Net Change to ALLL Resulting from Modification | -1 | 1 | -11 | 4 | ' | |||||
Charge-offs Resulting from Modification | 4 | 4 | 11 | 13 | ' | |||||
Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 591 | [1] | 882 | [1] | 2,008 | [1] | 2,751 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 9 | [1] | 21 | [1] | 38 | [1] | 65 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 10 | [1] | 22 | [1] | 39 | [1] | 68 | [1] | ' | |
Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 104 | [2] | 33 | [2] | 408 | [2] | 201 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 9 | [2] | 2 | [2] | 29 | [2] | 13 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 9 | [2] | 2 | [2] | 27 | [2] | 13 | [2] | ' | |
Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 1,112 | [3] | 1,618 | [3] | 3,443 | [3] | 5,199 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 47 | [3] | 65 | [3] | 147 | [3] | 193 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 43 | [3] | 60 | [3] | 137 | [3] | 180 | [3] | ' | |
Commercial | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | 0 | 1 | -8 | 1 | ' | |||||
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | ' | |||||
Commercial | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 5 | [1] | 29 | [1] | 20 | [1] | 100 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 7 | [1] | 5 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 7 | [1] | 5 | [1] | ' | |
Commercial | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 10 | [2] | 22 | [2] | 38 | [2] | 106 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 2 | [2] | 1 | [2] | 4 | [2] | 5 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 2 | [2] | 1 | [2] | 4 | [2] | 5 | [2] | ' | |
Commercial | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 3 | [3] | 3 | [3] | 5 | [3] | 6 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [3] | 1 | [3] | 0 | [3] | 1 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [3] | 1 | [3] | 0 | [3] | 1 | [3] | ' | |
Commercial real estate | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | 0 | -2 | 0 | -3 | ' | |||||
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | ' | |||||
Commercial real estate | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 1 | [1] | 6 | [1] | 3 | [1] | 10 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 4 | [1] | 0 | [1] | 7 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 4 | [1] | 0 | [1] | 7 | [1] | ' | |
Commercial real estate | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 3 | [2] | 0 | [2] | 5 | [2] | 1 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 1 | [2] | 0 | [2] | 1 | [2] | 0 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 1 | [2] | 0 | [2] | 1 | [2] | 0 | [2] | ' | |
Commercial real estate | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 0 | [3] | 1 | [3] | 0 | [3] | 1 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | ' | |
Total commercial | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | 0 | -1 | -8 | -2 | ' | |||||
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | ' | |||||
Total commercial | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 6 | [1] | 35 | [1] | 23 | [1] | 110 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 5 | [1] | 7 | [1] | 12 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 5 | [1] | 7 | [1] | 12 | [1] | ' | |
Total commercial | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 13 | [2] | 22 | [2] | 43 | [2] | 107 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 3 | [2] | 1 | [2] | 5 | [2] | 5 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 3 | [2] | 1 | [2] | 5 | [2] | 5 | [2] | ' | |
Total commercial | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 3 | [3] | 4 | [3] | 5 | [3] | 7 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [3] | 1 | [3] | 0 | [3] | 1 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [3] | 1 | [3] | 0 | [3] | 1 | [3] | ' | |
Residential, including originated home equity products | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | -1 | 1 | -4 | 6 | ' | |||||
Charge-offs Resulting from Modification | 2 | 1 | 7 | 7 | ' | |||||
Residential, including originated home equity products | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 57 | [1] | 102 | [1] | 193 | [1] | 340 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 6 | [1] | 11 | [1] | 20 | [1] | 38 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 7 | [1] | 12 | [1] | 21 | [1] | 41 | [1] | ' | |
Residential, including originated home equity products | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 87 | [2] | 11 | [2] | 353 | [2] | 91 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 6 | [2] | 1 | [2] | 24 | [2] | 8 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 6 | [2] | 1 | [2] | 22 | [2] | 8 | [2] | ' | |
Residential, including originated home equity products | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 466 | [3] | 598 | [3] | 1,387 | [3] | 1,648 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 34 | [3] | 44 | [3] | 107 | [3] | 129 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 32 | [3] | 42 | [3] | 101 | [3] | 122 | [3] | ' | |
Home equity products serviced by others | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | -1 | 1 | -1 | 1 | ' | |||||
Charge-offs Resulting from Modification | 0 | 1 | 0 | 3 | ' | |||||
Home equity products serviced by others | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 8 | [1] | 4 | [1] | 29 | [1] | 23 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 1 | [1] | 2 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 1 | [1] | 2 | [1] | ' | |
Home equity products serviced by others | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 0 | [2] | 0 | [2] | 1 | [2] | 1 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Home equity products serviced by others | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 35 | [3] | 105 | [3] | 144 | [3] | 250 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 2 | [3] | 5 | [3] | 6 | [3] | 12 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 2 | [3] | 4 | [3] | 6 | [3] | 9 | [3] | ' | |
Other secured retail | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | ' | |||||
Charge-offs Resulting from Modification | 2 | 2 | 4 | 3 | ' | |||||
Other secured retail | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 7 | [1] | 29 | [1] | 65 | [1] | 224 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] | 1 | [1] | 2 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] | 1 | [1] | 2 | [1] | ' | |
Other secured retail | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 4 | [2] | 0 | [2] | 11 | [2] | 2 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Other secured retail | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 262 | [3] | 370 | [3] | 708 | [3] | 1,217 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 5 | [3] | 5 | [3] | 12 | [3] | 13 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 3 | [3] | 3 | [3] | 8 | [3] | 10 | [3] | ' | |
Unsecured retail | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Net Change to ALLL Resulting from Modification | 1 | 0 | 2 | -1 | ' | |||||
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | ' | |||||
Unsecured retail | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 513 | [1] | 712 | [1] | 1,698 | [1] | 2,054 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 3 | [1] | 4 | [1] | 9 | [1] | 11 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 3 | [1] | 4 | [1] | 9 | [1] | 11 | [1] | ' | |
Unsecured retail | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' | |
Unsecured retail | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 346 | [3] | 541 | [3] | 1,199 | [3] | 2,077 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 6 | [3] | 10 | [3] | 22 | [3] | 38 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | 6 | [3] | 10 | [3] | 22 | [3] | 38 | [3] | ' | |
Total retail | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' | 1,200 | [2] | ||||
Net Change to ALLL Resulting from Modification | -1 | 2 | -3 | 6 | ' | |||||
Charge-offs Resulting from Modification | 4 | 4 | 11 | 13 | ' | |||||
Total retail | Interest Rate Reduction | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 585 | [1] | 847 | [1] | 1,985 | [1] | 2,641 | [1] | ' | |
Pre-Modification Outstanding Recorded Investment | 9 | [1] | 16 | [1] | 31 | [1] | 53 | [1] | ' | |
Post-Modification Outstanding Recorded Investment | 10 | [1] | 17 | [1] | 32 | [1] | 56 | [1] | ' | |
Total retail | Maturity Extension | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 91 | [2] | 11 | [2] | 365 | [2] | 94 | [2] | ' | |
Pre-Modification Outstanding Recorded Investment | 6 | [2] | 1 | [2] | 24 | [2] | 8 | [2] | ' | |
Post-Modification Outstanding Recorded Investment | 6 | [2] | 1 | [2] | 22 | [2] | 8 | [2] | ' | |
Total retail | Other | ' | ' | ' | ' | ' | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' | |||||
Number of Contracts | 1,109 | [3] | 1,614 | [3] | 3,438 | [3] | 5,192 | [3] | ' | |
Pre-Modification Outstanding Recorded Investment | 47 | [3] | 64 | [3] | 147 | [3] | 192 | [3] | ' | |
Post-Modification Outstanding Recorded Investment | $43 | [3] | $59 | [3] | $137 | [3] | $179 | [3] | ' | |
[1] | Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | |||||||||
[2] | Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | |||||||||
[3] | Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. |
Recovered_Sheet6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
contract | contract | contract | contract | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 532 | 845 | 1,596 | 2,843 |
Balance Defaulted | $29 | $27 | $73 | $125 |
Commercial | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 5 | 7 | 22 | 8 |
Balance Defaulted | 4 | 1 | 7 | 1 |
Commercial real estate | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 1 | 0 | 2 | 1 |
Balance Defaulted | 0 | 0 | 1 | 0 |
Total commercial | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 6 | 7 | 24 | 9 |
Balance Defaulted | 4 | 1 | 8 | 1 |
Residential, including originated home equity products | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 247 | 289 | 676 | 1,413 |
Balance Defaulted | 22 | 19 | 55 | 104 |
Home equity products serviced by others | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 23 | 51 | 69 | 201 |
Balance Defaulted | 0 | 0 | 1 | 4 |
Other secured retail | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 32 | 84 | 99 | 214 |
Balance Defaulted | 0 | 1 | 1 | 2 |
Unsecured retail | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 224 | 414 | 728 | 1,006 |
Balance Defaulted | 3 | 6 | 8 | 14 |
Total retail | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 526 | 838 | 1,572 | 2,834 |
Balance Defaulted | $25 | $26 | $65 | $124 |
Recovered_Sheet7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
High loan-to-value | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | $4,321 | $5,433 |
High loan-to-value | Residential Mortgages | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 847 | 1,054 |
High loan-to-value | Home Equity Loans and Lines of Credit | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 2,183 | 2,798 |
High loan-to-value | Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 1,291 | 1,581 |
High loan-to-value | Credit Cards | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Interest only/negative amortization | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 863 | 882 |
Interest only/negative amortization | Residential Mortgages | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 863 | 882 |
Interest only/negative amortization | Home Equity Loans and Lines of Credit | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Interest only/negative amortization | Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Interest only/negative amortization | Credit Cards | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Low introductory rate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 100 | 119 |
Low introductory rate | Residential Mortgages | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Low introductory rate | Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Low introductory rate | Credit Cards | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 100 | 119 |
Multiple characteristics and other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 56 | 96 |
Multiple characteristics and other | Residential Mortgages | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 56 | 96 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Multiple characteristics and other | Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Multiple characteristics and other | Credit Cards | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 0 | 0 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 5,340 | 6,530 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Residential Mortgages | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 1,766 | 2,032 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Home Equity Loans and Lines of Credit | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 2,183 | 2,798 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Home equity products serviced by others | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | 1,291 | 1,581 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Credit Cards | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Credit risk indicated, Loan balance | $100 | $119 |
GOODWILL_Narrative_Details
GOODWILL (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 321 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
business | Consumer Banking | Consumer Banking | Consumer Banking | Commercial Banking | Commercial Banking | ||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions of banks or assets of banks | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' |
Goodwill accumulated impairment loss | ' | ' | ' | ' | ' | ' | ' | $5,900 | $5,900 | $50 | $50 |
Impairment losses based on results of interim impairment testing | $0 | $0 | $0 | $4,435 | $4,400 | ' | $4,400 | $4,435 | ' | $0 | ' |
GOODWILL_Goodwill_Rollforward_
GOODWILL - Goodwill Rollforward (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 6 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consumer Banking | Consumer Banking | Consumer Banking | Commercial Banking | Commercial Banking | ||||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $6,876 | $11,311 | $11,311 | $6,393 | $2,136 | $6,393 | $4,740 | $4,918 |
Impairment losses based on results of interim impairment testing | 0 | 0 | 0 | -4,435 | -4,400 | -4,400 | ' | -4,435 | ' | 0 |
Transfers | ' | ' | ' | 0 | ' | ' | ' | 178 | ' | -178 |
Adjustments | ' | ' | 0 | ' | ' | ' | 0 | ' | 0 | ' |
Ending balance | $6,876 | $6,876 | $6,876 | $6,876 | $6,876 | ' | $2,136 | $2,136 | $4,740 | $4,740 |
MORTGAGE_BANKING_Narrative_Det
MORTGAGE BANKING (Narrative) (Details) (USD $) | 9 Months Ended | 69 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Proceeds from sale of residential mortgages | $1,089 | $3,649 | ' |
Repurchased mortgage loans | 22 | 30 | 85 |
Mortgage servicing fees | 44 | 49 | ' |
Recovery of mortgage servicing rights | 8 | 42 | ' |
Residential Mortgages | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Proceeds from sale of residential mortgages | 1,100 | 3,600 | ' |
Gain on sale of residential mortgages | $25 | $58 | ' |
MORTGAGE_BANKING_Changes_Relat
MORTGAGE BANKING - Changes Related to MSRs (Details) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation allowance for servicing assets: | ' | ' | ' | ' |
Balance at end of period | $15 | $28 | ' | ' |
Residential Mortgages | ' | ' | ' | ' |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ' | ' | ' | ' |
1-Jan | 174 | 185 | 208 | 215 |
Amount capitalized | 13 | 39 | ' | ' |
Amortization | -32 | -41 | ' | ' |
Carrying amount before valuation allowance | 189 | 213 | ' | ' |
Valuation allowance for servicing assets: | ' | ' | ' | ' |
1-Jan | 23 | 70 | ' | ' |
Valuation recovery | -8 | -42 | ' | ' |
Balance at end of period | 15 | 28 | ' | ' |
Net carrying value of MSRs | $174 | $185 | $208 | $215 |
MORTGAGE_BANKING_Economic_Assu
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Residential Mortgages | Residential Mortgages | |||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ' | ' | ' | ' |
Fair value | ' | ' | $187 | $193 |
Weighted average life (in years) | '5 years 2 months 12 days | '5 years 4 months 24 days | '5 years 3 months 18 days | '5 years 1 month 6 days |
Weighted average constant prepayment rate (percent) | 12.20% | 13.00% | 12.20% | 13.90% |
Weighted average discount rate (percent) | 10.30% | 10.80% | 10.30% | 10.80% |
MORTGAGE_BANKING_Economic_Assu1
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) (Residential Mortgages) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Residential Mortgages | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Weighted average life (in years) | '5 years 8 months 12 days | '6 years 1 month 6 days |
Weighted average constant prepayment rate (percent) | 11.70% | 12.60% |
Weighted average discount rate (percent) | 10.30% | 10.50% |
MORTGAGE_BANKING_Sensitivity_A
MORTGAGE BANKING - Sensitivity Analysis (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Minimum | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Adverse change in basis points | 0.50% | 0.50% |
Maximum | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Adverse change in basis points | 1.00% | 1.00% |
Prepayment rate | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Decline in fair value from 50 basis points adverse change in interest rates | 6 | 7 |
Decline in fair value from 100 basis points adverse change in interest rates | 11 | 10 |
Weighted average discount rate | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Decline in fair value from 50 basis points adverse change | 3 | 3 |
Decline in fair value from 100 basis points adverse change | 6 | 6 |
BORROWED_FUNDS_Narrative_Detai
BORROWED FUNDS - (Narrative) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Short-term borrowed funds | $11,899,000,000 | $7,042,000,000 |
Federal Home Loan Bank Advances and Letters of Credit [Member] | Secured Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short-term borrowed funds | 11,000,000,000 | 4,200,000,000 |
Federal Home Loan Bank Advances | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Available borrowing capacity | 3,500,000,000 | 8,200,000,000 |
Federal Reserve Bank Advances | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Available borrowing capacity | $26,000,000,000 | ' |
BORROWED_FUNDS_Short_Term_Debt
BORROWED FUNDS - Short Term Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Total short-term borrowed funds | $11,899 | $7,042 |
Federal funds purchased | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total short-term borrowed funds | 0 | 689 |
Securities sold under agreements to repurchase | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total short-term borrowed funds | 5,184 | 4,102 |
Other short-term borrowed funds | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Total short-term borrowed funds | $6,715 | $2,251 |
BORROWED_FUNDS_Short_Term_Borr
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Federal funds purchased | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Weighted-average interest rate at period end | 0.12% | 0.09% |
Maximum amount outstanding at month-end during the period | $7,022 | $5,114 |
Average amount outstanding during the period | 5,908 | 2,400 |
Weighted-average interest rate during the period | 0.08% | 0.31% |
Other short-term borrowed funds | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Weighted-average interest rate at period end | 0.25% | 0.20% |
Maximum amount outstanding at month-end during the period | 7,702 | 2,251 |
Average amount outstanding during the period | $5,479 | $259 |
Weighted-average interest rate during the period | 0.26% | 0.44% |
BORROWED_FUNDS_Long_Term_Debt_
BORROWED FUNDS - Long Term Debt (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | $2,062 | $1,405 |
Citizens Financial Group, Inc.: | Subordinated Debt | 4.150% fixed rate subordinated debt, due 2022 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 350 | 350 |
Interest rate | 4.15% | ' |
Maturity date | 1-Jan-22 | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 333 | 333 |
Interest rate | 5.16% | ' |
Maturity date | 30-Jun-23 | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | LIBOR | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate | 3.56% | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 4.771% fixed rate subordinated debt, due 2023 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 333 | 333 |
Interest rate | 4.77% | ' |
Maturity date | 31-Oct-23 | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 4.691% fixed rate subordinated debt, due 2024 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 334 | 334 |
Interest rate | 4.69% | ' |
Maturity date | 31-Jan-24 | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 4.153% fixed rate subordinated debt due 2024 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 333 | 0 |
Interest rate | 4.15% | ' |
Maturity date | 31-Jul-24 | ' |
Citizens Financial Group, Inc.: | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 333 | 0 |
Interest rate | 4.02% | ' |
Maturity date | 31-Oct-24 | ' |
Banking Subsidiaries: | Federal Home Loan advances due through 2033 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | 23 | 25 |
Maturity date | 1-Jan-33 | ' |
Banking Subsidiaries: | Other | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term borrowed funds | $23 | $30 |
BORROWED_FUNDS_Maturities_of_L
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2015 or on demand | $1 | ' |
2016 | 5 | ' |
2017 | 13 | ' |
2018 | 11 | ' |
2019 | 1 | ' |
2020 and thereafter | 2,031 | ' |
Total | $2,062 | $1,405 |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 08, 2014 | Apr. 08, 2014 |
Noncumulative Preferred Stock | Noncumulative Preferred Stock | |||
LIBOR | ||||
Class of Stock [Line Items] | ' | ' | ' | ' |
Number of shares of preferred stock authorized | 100,000,000 | 30,000 | 30,000 | ' |
Preferred stock par value (in Dollars per Share) | $25 | $1 | $1 | ' |
Dividend variable rate | ' | ' | ' | 1.80% |
Preferred stock redemption price (in Dollars per Share) | ' | ' | $100,000 | ' |
EMPLOYEE_BENEFITS_Narrative_De
EMPLOYEE BENEFITS - Narrative (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | RBS | Qualified Plan | Non-Qualified Plan | Other Postretirement Benefit Plan | Other Postretirement Benefit Plan | Other Postretirement Benefit Plan |
25 or more years of service | 15-24 years of service | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' |
Assets transferred to Affiliate plans | ' | $114 | ' | ' | ' | ' |
Liabilities transferred to Affiliate plans | ' | 148 | 7 | 7 | ' | ' |
Cost sharing benefit (as a percentage) | ' | ' | ' | ' | 70.00% | 50.00% |
Cash liability | $18 | ' | ' | ' | ' | ' |
EMPLOYEE_BENEFITS_Schedule_of_
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $1 | $1 | $3 | $3 |
Interest cost | 12 | 11 | 36 | 34 |
Expected return on plan assets | -18 | -17 | -53 | -51 |
Amortization of actuarial loss | 2 | 3 | 7 | 10 |
Net periodic pension (income) cost | -3 | -2 | -7 | -4 |
Qualified Plan | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 11 | 10 | 33 | 31 |
Expected return on plan assets | -18 | -17 | -53 | -51 |
Amortization of actuarial loss | 2 | 3 | 6 | 9 |
Net periodic pension (income) cost | -4 | -3 | -11 | -8 |
Non-Qualified Plan | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 1 | 3 | 3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0 | 1 | 1 |
Net periodic pension (income) cost | $1 | $1 | $4 | $4 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax expense (benefit) | $85 | $76 | $317 | ($98) | ' |
Effective income tax rate | 31.00% | 35.00% | 32.00% | 3.00% | ' |
Federal income tax rate | ' | ' | 35.00% | 35.00% | ' |
Deferred taxes, net | $354 | ' | $354 | ' | $199 |
DERIVATIVES_Narrative_Details
DERIVATIVES - Narrative (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Net loss on derivatives expected to be reclassified in next 12 months | $23 |
DERIVATIVES_Schedule_of_Deriva
DERIVATIVES - Schedule of Derivative Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Derivative Assets | ' | ' | ||
Derivative Assets | $706,000,000 | $778,000,000 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -159,000,000 | [1] | -128,000,000 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 547,000,000 | [2] | 650,000,000 | [2] |
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | 797,000,000 | 1,067,000,000 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -159,000,000 | [1] | -128,000,000 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 638,000,000 | [2] | 939,000,000 | [2] |
Derivatives not designated as hedging instruments: | ' | ' | ||
Derivative Assets | ' | ' | ||
Derivative Assets | 684,000,000 | 755,000,000 | ||
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | 594,000,000 | 655,000,000 | ||
Interest rate swaps | Derivatives designated as hedging instruments: | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 5,000,000,000 | [3] | 5,500,000,000 | [3] |
Derivative Assets | ' | ' | ||
Derivative Assets | 22,000,000 | 23,000,000 | ||
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | 203,000,000 | 412,000,000 | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 28,940,000,000 | [3] | 29,355,000,000 | [3] |
Derivative Assets | ' | ' | ||
Derivative Assets | 541,000,000 | 654,000,000 | ||
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | 452,000,000 | 558,000,000 | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 8,278,000,000 | [3] | 7,771,000,000 | [3] |
Derivative Assets | ' | ' | ||
Derivative Assets | 137,000,000 | 94,000,000 | ||
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | 132,000,000 | 87,000,000 | ||
Other contracts | Derivatives not designated as hedging instruments: | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional Amount | 686,000,000 | [3] | 569,000,000 | [3] |
Derivative Assets | ' | ' | ||
Derivative Assets | 6,000,000 | 7,000,000 | ||
Derivative Liabilities | ' | ' | ||
Derivative Liabilities | $10,000,000 | $10,000,000 | ||
[1] | Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | |||
[2] | The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 "Securities" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information for further information. | |||
[3] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. |
DERIVATIVES_Effect_of_Derivati
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from OCI to interest income | $155 | $120 | $458 | $348 | ||||
Amounts reclassified from OCI to interest expense | -93 | -103 | -262 | -346 | ||||
Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Effective portion of gain (loss) recognized in OCI | 27 | [1] | 2 | [1] | 217 | [1] | -191 | [1] |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amounts reclassified from OCI to interest income | 18 | [2] | 18 | [2] | 54 | [2] | 38 | [2] |
Amounts reclassified from OCI to interest expense | -23 | [2] | -48 | [2] | -79 | [2] | -160 | [2] |
Amounts reclassified from OCI to other income | $0 | [3] | $0 | [3] | $0 | [3] | ($2) | [3] |
[1] | The cumulative effective gains and losses on the Company's cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | |||||||
[2] | This amount includes both (a) the amortization of effective gains and losses associated with the Company's terminated cash flow hedges and (b) the current reporting period's interest settlements realized on the Company's active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | |||||||
[3] | This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other income line item on the Consolidated Statements of Operations. |
DERIVATIVES_Effect_of_Customer
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | $4 | $36 | $21 | $67 | ||||
Customer derivative contracts | Other Income | Interest rate swaps | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | 2 | [1] | 55 | [1] | 151 | [1] | -95 | [1] |
Customer derivative contracts | Other Income | Foreign exchange contracts | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | -60 | [1] | 32 | [1] | -54 | [1] | 22 | [1] |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | -4 | [2] | 48 | [2] | 4 | [2] | 8 | [2] |
Economic hedges | Other Income | Interest rate swaps | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | 5 | [1] | -45 | [1] | -130 | [1] | 133 | [1] |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | 59 | [3] | -33 | [3] | 52 | [3] | -20 | [3] |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) on derivative | $2 | [2] | ($21) | [2] | ($2) | [2] | $19 | [2] |
[1] | Reported in other income on the Consolidated Statements of Operations. | |||||||
[2] | Reported in mortgage banking fees on the Consolidated Statements of Operations. | |||||||
[3] | Reported in foreign exchange and trade finance fees on the Consolidated Statements of Operations. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Narrative (Details) (USD $) | 9 Months Ended | 69 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | 29-May-14 | 29-May-14 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2003 | Sep. 30, 2014 | Dec. 31, 2013 | |
counterparty | Consent Orders | Consent Orders | Minimum | Maximum | Letter of Credit | Letter of Credit | Auto Loans | Auto Loans | Marketing rights | Marketing rights | Marketing rights | Credit Risk Contract | Credit Risk Contract | ||||
Minimum | Maximum | RBS | RBS | ||||||||||||||
Options Held | Options Held | ||||||||||||||||
Commitments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitment, Quarterly amount, May 30, 2014 through May 29, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | $600,000,000 | ' | ' | ' | ' | ' |
Purchase commitment, Quarterly amount, May 30, 2015 and after | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | 600,000,000 | ' | ' | ' | ' | ' |
Commitment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '25 years | ' | ' |
Payments made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 3,000,000 | ' | ' | ' |
Remaining obligation due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,000,000 | ' | ' | ' | ' |
Letters of Credit [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Risk Participation Agreements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk participation agreements | 16,000,000 | ' | 16,000,000 | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk participation agreements number of counterparties | 73 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk participation agreements, Average term | ' | ' | ' | ' | ' | ' | '1 year | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk participation agreements, Maximum term | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantees [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional value of open option contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 404,000 | 2,000,000 |
Consumer Products [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement amount | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restitution amount payable | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Repurchase Demands [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage repurchase demands received | 22,000,000 | 30,000,000 | 154,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnification payment requests received | ' | ' | 98,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchased mortgage loans | 22,000,000 | 30,000,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnification payment requests paid | $7,000,000 | $8,000,000 | $33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Commitments [Line Items] | ' | ' |
Commitment amount | $58,077 | $56,840 |
Undrawn commitments to extend credit | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 55,333 | 53,987 |
Financial standby letters of credit | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 2,498 | 2,556 |
Performance letters of credit | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 94 | 149 |
Commercial letters of credit | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 74 | 64 |
Marketing rights | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 51 | 54 |
Risk participation agreements | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | 16 | 17 |
Residential mortgage loans sold with recourse | ' | ' |
Other Commitments [Line Items] | ' | ' |
Commitment amount | $11 | $13 |
DIVESTITURES_AND_BRANCH_ASSETS1
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE (Details) (Disposed of by sale, Illinois, Retail branches, USD $) | 1 Months Ended | 9 Months Ended |
Jun. 30, 2014 | Sep. 30, 2014 | |
branch | ||
Disposal of Branch Assets and Liabilities [Abstract] | ' | ' |
Number of branches sold | 103 | ' |
Deposit liabilities | $4,800,000,000 | ' |
Loans (primarily middle market, small business, home equity and credit card balances) | 1,000,000,000 | ' |
Gain (loss) on sale | ' | 288,000,000 |
Deposits | ' | ' |
Disposal of Branch Assets and Liabilities [Abstract] | ' | ' |
Gain (loss) on sale | ' | 286,000,000 |
Interest expense on deposits | ' | 4,000,000 |
Loans | ' | ' |
Disposal of Branch Assets and Liabilities [Abstract] | ' | ' |
Gain (loss) on sale | ' | 11,000,000 |
Interest and fee income on loans | ' | 20,000,000 |
Other branch assets | ' | ' |
Disposal of Branch Assets and Liabilities [Abstract] | ' | ' |
Gain (loss) on sale | ' | ($9,000,000) |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Interest expense | $17,000,000 | $4,000,000 | $42,000,000 | $6,000,000 | ' | |||
Other short-term borrowed funds | 21,000,000 | 2,000,000 | 70,000,000 | 4,000,000 | ' | |||
Dividends to parent — exchange transactions | ' | ' | -666,000,000 | -666,000,000 | ' | |||
Interest rate swaps | Derivatives designated as hedging instruments | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 5,000,000,000 | [1] | ' | 5,000,000,000 | [1] | ' | 5,500,000,000 | [1] |
Interest rate swaps | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 28,940,000,000 | [1] | ' | 28,940,000,000 | [1] | ' | 29,355,000,000 | [1] |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 8,278,000,000 | [1] | ' | 8,278,000,000 | [1] | ' | 7,771,000,000 | [1] |
RBS | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Borrowing capacity | ' | ' | ' | ' | 50,000,000 | |||
Income from services and referrals net of rent income (expense) | 5,000,000 | 7,000,000 | 13,000,000 | 19,000,000 | ' | |||
Dividend to parent | 50,000,000 | 50,000,000 | 85,000,000 | 145,000,000 | ' | |||
RBS | Interest rate swaps | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Interest expense | 1,000,000 | 31,000,000 | 22,000,000 | 123,000,000 | ' | |||
Derivative revenue | 5,000,000 | ' | ' | 132,000,000 | ' | |||
Derivative expense | ' | 44,000,000 | 130,000,000 | ' | ' | |||
Minimum fixed interest rate | 1.78% | ' | 1.78% | ' | 1.78% | |||
Maximum fixed interest rate | 4.30% | ' | 4.30% | ' | 5.47% | |||
Derivative executed during period | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 | ' | |||
RBS | Interest rate swaps | Derivatives designated as hedging instruments | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 5,000,000,000 | [1] | ' | 5,000,000,000 | [1] | ' | 5,500,000,000 | [1] |
RBS | Interest rate swaps | Derivatives not designated as hedging instruments | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 10,600,000,000 | ' | 10,600,000,000 | ' | 13,400,000,000 | |||
RBS | Foreign exchange contracts | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Notional Amount | 5,000,000,000 | ' | 5,000,000,000 | ' | 4,600,000,000 | |||
Foreign exchange and trade finance fees | ' | 33,000,000 | ' | 20,000,000 | ' | |||
Foreign exchange and trade finance revenue | 59,000,000 | ' | 52,000,000 | ' | ' | |||
Executive Officers, Family Members, and Their Businesses | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Related party loans | 126,000,000 | ' | 126,000,000 | ' | 78,000,000 | |||
Special Dividend | RBS | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Dividends to parent — exchange transactions | -333,000,000 | -333,000,000 | -666,000,000 | -666,000,000 | ' | |||
Line of Credit | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | |||
Other short-term borrowed funds | ' | ' | ' | $0 | ' | |||
[1] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS - Schedule of Related Party Debt Terms (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Long-term borrowed funds | $2,062 | $1,405 |
Subordinated Debt | RBSG | 4.023% fixed rate subordinated debt, due 2024 | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate | 4.02% | ' |
Long-term borrowed funds | 333 | 0 |
Subordinated Debt | RBSG | 4.153% fixed rate subordinated debt due 2024 | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate | 4.15% | ' |
Long-term borrowed funds | 333 | 0 |
Subordinated Debt | RBSG | 4.691% fixed rate subordinated debt, due 2024 | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate | 4.69% | ' |
Long-term borrowed funds | 334 | 334 |
Subordinated Debt | RBSG | 4.771% fixed rate subordinated debt, due 2023 | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate | 4.77% | ' |
Long-term borrowed funds | 333 | 333 |
Subordinated Debt | RBS | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate | 5.16% | ' |
Long-term borrowed funds | $333 | $333 |
FAIR_VALUE_MEASUREMENTS_Reside
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Aggregate Fair Value | $205 | ' | $205 | ' | $176 |
Mortgage banking noninterest income (loss) | 21 | 20 | 55 | 133 | ' |
Residential loans held for sale | ' | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Mortgage banking noninterest income (loss) | -2 | 10 | 3 | -26 | ' |
Level 2 | Residential loans held for sale | ' | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Aggregate Fair Value | 189 | ' | 189 | ' | 176 |
Aggregate Unpaid Principal | 183 | ' | 183 | ' | 173 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 6 | ' | 6 | ' | 3 |
Level 2 | Commercial real estate loans held for sale | ' | ' | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Aggregate Fair Value | 16 | ' | 16 | ' | ' |
Aggregate Unpaid Principal | 16 | ' | 16 | ' | ' |
Aggregate Fair Value Less Aggregate Unpaid Principal | $0 | ' | $0 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Securities available for sale | $18,666 | $15,995 |
Loans held for sale | 205 | 176 |
Derivative assets | 547 | 650 |
Liabilities | ' | ' |
Derivative liabilities | 638 | 939 |
Fair Value Measurement [Domain] | ' | ' |
Assets | ' | ' |
Securities available for sale | 18,666 | 15,995 |
Loans held for sale | 205 | ' |
Derivative assets | 706 | 778 |
Venture capital investments | 6 | 5 |
Total assets | 19,583 | 16,954 |
Liabilities | ' | ' |
Derivative liabilities | 797 | 1,067 |
Total liabilities | 797 | 1,067 |
Fair Value Measurement [Domain] | Interest rate swaps | ' | ' |
Assets | ' | ' |
Derivative assets | 563 | 677 |
Liabilities | ' | ' |
Derivative liabilities | 655 | 970 |
Fair Value Measurement [Domain] | Foreign exchange contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 137 | 94 |
Liabilities | ' | ' |
Derivative liabilities | 132 | 87 |
Fair Value Measurement [Domain] | Other contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 6 | 7 |
Liabilities | ' | ' |
Derivative liabilities | 10 | 10 |
Fair Value Measurement [Domain] | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 18,616 | 15,945 |
Fair Value Measurement [Domain] | State and political subdivisions | ' | ' |
Assets | ' | ' |
Securities available for sale | 10 | 10 |
Fair Value Measurement [Domain] | Equity securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 25 | 25 |
Fair Value Measurement [Domain] | U.S. Treasury | ' | ' |
Assets | ' | ' |
Securities available for sale | 15 | 15 |
Fair Value Measurement [Domain] | Residential loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 189 | 176 |
Fair Value Measurement [Domain] | Commercial real estate loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 16 | ' |
Fair Value Measurement [Domain] | Level 1 | ' | ' |
Assets | ' | ' |
Securities available for sale | 23 | 23 |
Loans held for sale | 0 | ' |
Derivative assets | 0 | 0 |
Venture capital investments | 0 | 0 |
Total assets | 23 | 23 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Interest rate swaps | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Foreign exchange contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Other contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | State and political subdivisions | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Equity securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 8 | 8 |
Fair Value Measurement [Domain] | Level 1 | U.S. Treasury | ' | ' |
Assets | ' | ' |
Securities available for sale | 15 | 15 |
Fair Value Measurement [Domain] | Level 1 | Residential loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Commercial real estate loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 0 | ' |
Fair Value Measurement [Domain] | Level 2 | ' | ' |
Assets | ' | ' |
Securities available for sale | 18,643 | 15,972 |
Loans held for sale | 205 | ' |
Derivative assets | 706 | 778 |
Venture capital investments | 0 | 0 |
Total assets | 19,554 | 16,926 |
Liabilities | ' | ' |
Derivative liabilities | 797 | 1,067 |
Total liabilities | 797 | 1,067 |
Fair Value Measurement [Domain] | Level 2 | Interest rate swaps | ' | ' |
Assets | ' | ' |
Derivative assets | 563 | 677 |
Liabilities | ' | ' |
Derivative liabilities | 655 | 970 |
Fair Value Measurement [Domain] | Level 2 | Foreign exchange contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 137 | 94 |
Liabilities | ' | ' |
Derivative liabilities | 132 | 87 |
Fair Value Measurement [Domain] | Level 2 | Other contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 6 | 7 |
Liabilities | ' | ' |
Derivative liabilities | 10 | 10 |
Fair Value Measurement [Domain] | Level 2 | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 18,616 | 15,945 |
Fair Value Measurement [Domain] | Level 2 | State and political subdivisions | ' | ' |
Assets | ' | ' |
Securities available for sale | 10 | 10 |
Fair Value Measurement [Domain] | Level 2 | Equity securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 17 | 17 |
Fair Value Measurement [Domain] | Level 2 | U.S. Treasury | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 2 | Residential loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 189 | 176 |
Fair Value Measurement [Domain] | Level 2 | Commercial real estate loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 16 | ' |
Fair Value Measurement [Domain] | Level 3 | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | ' |
Derivative assets | 0 | 0 |
Venture capital investments | 6 | 5 |
Total assets | 6 | 5 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Interest rate swaps | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Foreign exchange contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Other contracts | ' | ' |
Assets | ' | ' |
Derivative assets | 0 | 0 |
Liabilities | ' | ' |
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | State and political subdivisions | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Equity securities | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | U.S. Treasury | ' | ' |
Assets | ' | ' |
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Residential loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Commercial real estate loans held for sale | ' | ' |
Assets | ' | ' |
Loans held for sale | $0 | ' |
FAIR_VALUE_MEASUREMENTS_Schedu1
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) (Recurring basis, Level 3, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Recurring basis | Level 3 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | $5 | $6 |
Sales | 0 | -4 |
Settlements | 0 | 3 |
Other net gains | 1 | 0 |
Ending balance | 6 | 5 |
Net unrealized gain (loss) included in net income for the period relating to assets held at period end | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Nonrec
FAIR VALUE MEASUREMENTS - Nonrecurring Fair Value Measurements Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Weighted average life (in years) | '5 years 2 months 12 days | '5 years 4 months 24 days |
Weighted average constant prepayment rate (percent) | 12.20% | 13.00% |
Weighted average discount rate (percent) | 10.30% | 10.80% |
Minimum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Weighted average life (in years) | '1 year 8 months 12 days | '1 year 9 months 18 days |
Weighted average constant prepayment rate (percent) | 9.80% | 9.40% |
Weighted average discount rate (percent) | 9.60% | 10.20% |
Maximum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Weighted average life (in years) | '7 years | '7 years 4 months 24 days |
Weighted average constant prepayment rate (percent) | 22.40% | 41.50% |
Weighted average discount rate (percent) | 12.60% | 13.10% |
FAIR_VALUE_MEASUREMENTS_Schedu2
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) (Nonrecurring measurement basis, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Impaired collateral-dependent loans(1) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (loss) included in earnings on assets measured on a nonrecurring basis | ($5) | ($56) | ($99) | ($114) |
MSRs(2) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (loss) included in earnings on assets measured on a nonrecurring basis | 5 | 3 | 8 | 42 |
Foreclosed assets(3) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (loss) included in earnings on assets measured on a nonrecurring basis | 1 | 1 | 2 | 3 |
Goodwill impairment(4) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $0 | $0 | $0 | ($4,435) |
FAIR_VALUE_MEASUREMENTS_Schedu3
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | |||
Impaired collateral-dependent loans | $103 | ' | $103 | ' | $144 | ' | |||
MSRs | 174 | 185 | 174 | 185 | 208 | 215 | |||
Foreclosed assets | 40 | ' | 40 | ' | 49 | ' | |||
Goodwill | 6,876 | 6,876 | 6,876 | 6,876 | 6,876 | 11,311 | |||
Impairment charge on collateral-dependent loans | 5 | 56 | 99 | 114 | ' | ' | |||
Collateral dependent loans | ' | 113 | ' | 113 | ' | 209 | |||
Impairment of mortgage servicing rights | ' | ' | 8 | 42 | ' | ' | |||
Cumulative valuation allowance on mortgage servicing rights | 15 | 28 | 15 | 28 | ' | ' | |||
Impairment charge on repossessed assets | ' | ' | 2 | ' | 4 | ' | |||
Goodwill impairment | 0 | 0 | 0 | -4,435 | -4,400 | ' | |||
Nonrecurring measurement basis | ' | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | |||
Impaired collateral-dependent loans | 103 | [1] | ' | 103 | [1] | ' | 74 | [1] | ' |
MSRs | 174 | [2] | ' | 174 | [2] | ' | 185 | [2] | ' |
Foreclosed assets | 40 | [3] | ' | 40 | [3] | ' | 49 | [3] | ' |
Goodwill | 6,876 | [4] | ' | 6,876 | [4] | ' | 6,876 | [4] | ' |
Nonrecurring measurement basis | Level 1 | ' | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | |||
Impaired collateral-dependent loans | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] | ' |
MSRs | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] | ' |
Foreclosed assets | 0 | [3] | ' | 0 | [3] | ' | 0 | [3] | ' |
Goodwill | 0 | [4] | ' | 0 | [4] | ' | 0 | [4] | ' |
Nonrecurring measurement basis | Level 2 | ' | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | |||
Impaired collateral-dependent loans | 103 | [1] | ' | 103 | [1] | ' | 74 | [1] | ' |
MSRs | 0 | [2] | ' | 0 | [2] | ' | 0 | [2] | ' |
Foreclosed assets | 40 | [3] | ' | 40 | [3] | ' | 49 | [3] | ' |
Goodwill | 0 | [4] | ' | 0 | [4] | ' | 0 | [4] | ' |
Nonrecurring measurement basis | Level 3 | ' | ' | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | |||
Impaired collateral-dependent loans | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] | ' |
MSRs | 174 | [2] | ' | 174 | [2] | ' | 185 | [2] | ' |
Foreclosed assets | 0 | [3] | ' | 0 | [3] | ' | 0 | [3] | ' |
Goodwill | $6,876 | [4] | ' | $6,876 | [4] | ' | $6,876 | [4] | ' |
[1] | During the three and nine months ended September 30, 2014, the Company recorded impairment charges of $5 million and $99 million, respectively. The impairment charges included current charges from $144 million of collateral-dependent loans which have been written down to $103 million as of September 30, 2014 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30,2014. During the three and nine months ended September 30, 2013, the Company recorded impairment charges of $56 million and $114 million, respectively. The impairment charges include current charges from $209 million of collateral-dependent loans which have been written down to $113 million as of September 30, 2013 and other collateral-dependent loans that have been sold or refinanced and are no longer on the Company's balance sheet as of September 30, 2013. | ||||||||
[2] | In the first nine months of 2014, MSRs totaling $208 million were evaluated for impairment and written down to $174 million, resulting in an impairment recapture of $8 million and a total cumulative valuation allowance of $15 million. In the first nine months of 2013, MSRs totaling $215 million were evaluated for impairment and written down to $185 million, resulting in an impairment (charge) of $42 million and a total cumulative valuation allowance of | ||||||||
[3] | In the first nine months of 2014, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $40 million, resulting in impairment charges of $2 million. In the year ended 2013, foreclosed real estate accounted for at the lower of cost or fair value less costs to sell was written down to fair value of $49 million, resulting in an impairment charge of $4 million. | ||||||||
[4] | In the year ended 2013, Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion, resulting in an impairment charge of $4.4 billion. |
FAIR_VALUE_MEASUREMENTS_Schedu4
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | $90,749 | [1],[2] | $85,859 | [1],[2] |
Loans and leases | 91,227 | 85,724 | ||
Other loans held for sale | 3 | 1,078 | ||
Other loans held for sale | 3 | 1,078 | ||
Securities held to maturity | 5,289 | 4,315 | ||
Securities held-to-maturity | 5,278 | 4,257 | ||
Other investment securities | 893 | 935 | ||
Other investment securities | 893 | 935 | ||
Deposits | 93,463 | 86,903 | ||
Deposits | 93,791 | 86,907 | ||
Deposits held for sale | 0 | 5,277 | ||
Deposits held for sale | ' | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 4,791 | ||
Federal funds purchased and securities sold under agreements to repurchase | 7,310 | 4,791 | ||
Other short-term borrowed funds | 6,715 | 2,251 | ||
Other short-term borrowed funds | 6,710 | 2,249 | ||
Long-term borrowed funds | 2,062 | 1,405 | ||
Long-term borrowed funds | 2,060 | 1,404 | ||
Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 90,749 | 85,859 | ||
Other loans held for sale | 3 | 1,078 | ||
Securities held to maturity | 5,289 | 4,315 | ||
Other investment securities | 893 | 935 | ||
Deposits | 93,463 | 86,903 | ||
Deposits held for sale | ' | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 4,791 | ||
Other short-term borrowed funds | 6,715 | 2,251 | ||
Long-term borrowed funds | 2,062 | 1,405 | ||
Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 0 | 0 | ||
Other loans held for sale | 0 | 0 | ||
Securities held-to-maturity | 0 | 0 | ||
Other investment securities | 0 | 0 | ||
Deposits | 0 | 0 | ||
Deposits held for sale | ' | 0 | ||
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | ||
Other short-term borrowed funds | 0 | 0 | ||
Long-term borrowed funds | 0 | 0 | ||
Level 1 | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 0 | 0 | ||
Other loans held for sale | 0 | 0 | ||
Securities held to maturity | 0 | 0 | ||
Other investment securities | 0 | 0 | ||
Deposits | 0 | 0 | ||
Deposits held for sale | ' | 0 | ||
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | ||
Other short-term borrowed funds | 0 | 0 | ||
Long-term borrowed funds | 0 | 0 | ||
Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 103 | 74 | ||
Other loans held for sale | 0 | 0 | ||
Securities held-to-maturity | 5,278 | 4,257 | ||
Other investment securities | 893 | 935 | ||
Deposits | 93,791 | 86,907 | ||
Deposits held for sale | ' | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 7,310 | 4,791 | ||
Other short-term borrowed funds | 6,710 | 2,249 | ||
Long-term borrowed funds | 2,060 | 1,404 | ||
Level 2 | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 103 | 74 | ||
Other loans held for sale | 0 | 0 | ||
Securities held to maturity | 5,289 | 4,315 | ||
Other investment securities | 893 | 935 | ||
Deposits | 93,463 | 86,903 | ||
Deposits held for sale | ' | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 5,184 | 4,791 | ||
Other short-term borrowed funds | 6,715 | 2,251 | ||
Long-term borrowed funds | 2,062 | 1,405 | ||
Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 91,124 | 85,650 | ||
Other loans held for sale | 3 | 1,078 | ||
Securities held-to-maturity | 0 | 0 | ||
Other investment securities | 0 | 0 | ||
Deposits | 0 | 0 | ||
Deposits held for sale | ' | 0 | ||
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | ||
Other short-term borrowed funds | 0 | 0 | ||
Long-term borrowed funds | 0 | 0 | ||
Level 3 | Carrying Value | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Loans and leases | 90,646 | 85,785 | ||
Other loans held for sale | 3 | 1,078 | ||
Securities held to maturity | 0 | 0 | ||
Other investment securities | 0 | 0 | ||
Deposits | 0 | 0 | ||
Deposits held for sale | ' | 0 | ||
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | ||
Other short-term borrowed funds | 0 | 0 | ||
Long-term borrowed funds | $0 | $0 | ||
[1] | Excluded from the table above are loans held for sale totaling $208 million as of September 30, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Company's sale of certain assets and liabilities associated with its Chicago-area retail branches. For further discussion, see Note 13 "Divestitures and Branch Assets and Liabilities Held for Sale" to the Company's unaudited interim Consolidated Financial Statements included in Part I, Item 1 — Financial Information. | |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $18.1 billion and $18.7 billion at September 30, 2014 and December 31, 2013, respectively. |
REGULATORY_MATTERS_Narrative_D
REGULATORY MATTERS - Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Dividend to parent | $85 | $145 | ' |
RBS | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Dividend to parent | 751 | 811 | 1,200 |
CBNA | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Liquid assets | 501 | ' | ' |
Average | Subordinated Debt | CBNA | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Annual interest burden on debt | $91 | ' | ' |
REGULATORY_MATTERS_Capital_and
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total Capital to Risk-Weighted Assets (Amount) | ' | ' |
Actual | $16,612 | $15,885 |
Minimum Capital Adequacy | 8,257 | 7,891 |
Classification as Well Capitalized | 10,321 | 9,863 |
Total Capital to Risk-Weighted Assets (Ratio) | ' | ' |
Actual | 16.10% | 16.10% |
Minimum Capital Adequacy | 8.00% | 8.00% |
Classification as Well Capitalized | 10.00% | 10.00% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | ' | ' |
Actual | 13,330 | 13,301 |
Minimum Capital Adequacy | 4,128 | 3,945 |
Classification as Well Capitalized | 6,192 | 5,918 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ' | ' |
Actual | 12.90% | 13.50% |
Minimum Capital Adequacy | 4.00% | 4.00% |
Classification as Well Capitalized | 6.00% | 6.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ' | ' |
Actual | 13,330 | 13,301 |
Minimum Capital Adequacy | 4,901 | 4,577 |
Classification as Well Capitalized | $6,126 | $5,721 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ' | ' |
Actual | 10.90% | 11.60% |
Minimum Capital Adequacy | 4.00% | 4.00% |
Classification as Well Capitalized | 5.00% | 5.00% |
EXIT_COSTS_AND_RESTRUCTURING_R2
EXIT COSTS AND RESTRUCTURING RESERVES (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Expected restructuring cost | $121 | ' |
Restructuring Costs | 90 | ' |
Restructuring charges incurred | 108 | 31 |
Outside Services | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Costs | 26 | ' |
Restructuring charges incurred | 4 | ' |
Other Restructuring | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Costs | 11 | ' |
Restructuring charges incurred | 7 | ' |
Employee Severance | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Expected restructuring cost | 41 | ' |
Employee Severance | Salaries & Employee Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Costs | 41 | ' |
Restructuring charges incurred | 43 | 6 |
Facility Closing | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Expected restructuring cost | 40 | ' |
Facility Closing | Occupancy & Equipment | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Costs | 12 | ' |
Restructuring charges incurred | 17 | 22 |
Spinoff | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges incurred | 17 | ' |
Employee Severance | Salaries & Employee Benefits | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges incurred | 3 | ' |
Facility Closing | Occupancy & Equipment | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges incurred | 3 | ' |
Other Restructuring | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Expected restructuring cost | 40 | ' |
Building Impairment | Occupancy & Equipment | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Impairment charges | $6 | ' |
EXIT_COSTS_AND_RESTRUCTURING_R3
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning balance | $26 | $30 |
Additions | 108 | 31 |
Reversals | -4 | -5 |
Utilization | -56 | -30 |
Ending balance | 74 | 26 |
Employee Severance | Salaries & Employee Benefits | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning balance | 2 | 3 |
Additions | 43 | 6 |
Reversals | -1 | -1 |
Utilization | -10 | -6 |
Ending balance | 34 | 2 |
Facility Closing | Occupancy & Equipment | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning balance | 24 | 27 |
Additions | 17 | 22 |
Reversals | -3 | -4 |
Utilization | -18 | -21 |
Ending balance | 20 | 24 |
Other Restructuring | Other | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Beginning balance | 0 | 0 |
Additions | 48 | 3 |
Reversals | 0 | 0 |
Utilization | -28 | -3 |
Ending balance | $20 | $0 |
RECLASSIFICATIONS_OUT_OF_ACCUM2
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | ($648) | ($312) |
Other comprehensive loss before reclassifications | ' | ' | 264 | -305 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $0, ($12) and ($21), respectively | -1 | 0 | -22 | -35 |
Amounts reclassified from other comprehensive income | ' | ' | -29 | 13 |
Net other comprehensive (loss) income | ' | ' | 213 | -327 |
Ending balance | -435 | -639 | -435 | -639 |
Net Unrealized Gains (Losses) on Derivatives | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | -298 | -240 |
Other comprehensive loss before reclassifications | ' | ' | 137 | -121 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $0, ($12) and ($21), respectively | ' | ' | 0 | 0 |
Amounts reclassified from other comprehensive income | ' | ' | 16 | 79 |
Net other comprehensive (loss) income | ' | ' | 153 | -42 |
Ending balance | -145 | -282 | -145 | -282 |
Net Unrealized Gains (Losses) on Securities | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | -91 | 306 |
Other comprehensive loss before reclassifications | ' | ' | 127 | -184 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $0, ($12) and ($21), respectively | ' | ' | -22 | -35 |
Amounts reclassified from other comprehensive income | ' | ' | -13 | -71 |
Net other comprehensive (loss) income | ' | ' | 92 | -290 |
Ending balance | 1 | 16 | 1 | 16 |
Defined Benefit Pension Plans | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | -259 | -378 |
Other comprehensive loss before reclassifications | ' | ' | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $0, ($12) and ($21), respectively | ' | ' | 0 | 0 |
Amounts reclassified from other comprehensive income | ' | ' | -32 | 5 |
Net other comprehensive (loss) income | ' | ' | -32 | 5 |
Ending balance | ($291) | ($373) | ($291) | ($373) |
RECLASSIFICATIONS_OUT_OF_ACCUM3
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Interest income | $155 | $120 | $458 | $348 | ||||
Interest expense | -93 | -103 | -262 | -346 | ||||
Securities impairment | -1 | -3 | -7 | -7 | ||||
Salaries and employee benefits | 409 | 403 | 1,281 | 1,261 | ||||
Income (loss) before income tax expense (benefit) | 274 | 220 | 985 | -3,676 | ||||
Income tax expense (benefit) | -85 | -76 | -317 | 98 | ||||
NET INCOME (LOSS) | 189 | 144 | 668 | -3,578 | ||||
Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Income tax expense (benefit) | -16 | 5 | -15 | 8 | ||||
NET INCOME (LOSS) | 32 | -6 | 29 | -13 | ||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Interest income | 18 | [1] | 18 | [1] | 54 | [1] | 38 | [1] |
Interest expense | -23 | [1] | -48 | [1] | -79 | [1] | -160 | [1] |
Other income | 0 | [2] | 0 | [2] | 0 | [2] | -2 | [2] |
Income (loss) before income tax expense (benefit) | -5 | -30 | -25 | -124 | ||||
Income tax expense (benefit) | -2 | -11 | -9 | -45 | ||||
NET INCOME (LOSS) | -3 | -19 | -16 | -79 | ||||
Reclassification of net securities gains (losses) to net income (loss): | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Securities gains, net | 2 | 25 | 27 | 119 | ||||
Securities impairment | -1 | -3 | -7 | -7 | ||||
Income (loss) before income tax expense (benefit) | 1 | 22 | 20 | 112 | ||||
Income tax expense (benefit) | 0 | 7 | 7 | 41 | ||||
NET INCOME (LOSS) | 1 | 15 | 13 | 71 | ||||
Reclassification of changes related to the employee benefit plan: | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Salaries and employee benefits | 52 | -3 | 49 | -9 | ||||
Income (loss) before income tax expense (benefit) | 52 | -3 | 49 | -9 | ||||
Income tax expense (benefit) | 18 | -1 | 17 | -4 | ||||
NET INCOME (LOSS) | $34 | ($2) | $32 | ($5) | ||||
[1] | This amount includes both (a) the amortization of effective gains and losses associated with the Company's terminated cash flow hedges and (b) the current reporting period's interest settlements realized on the Company's active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | |||||||
[2] | This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other income line item on the Consolidated Statements of Operations. |
RECLASSIFICATIONS_OUT_OF_ACCUM4
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Effects to Net Income of Amounts Reclassified Out of OCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net interest income | $820 | $770 | $2,461 | $2,279 |
Provision for credit losses | 77 | 145 | 247 | 347 |
Noninterest income | 341 | 383 | 1,339 | 1,253 |
Noninterest expense | 810 | 788 | 2,568 | 6,861 |
Income before income tax expense (benefit) | 274 | 220 | 985 | -3,676 |
Income tax expense (benefit) | 85 | 76 | 317 | -98 |
Net income (loss) | 189 | 144 | 668 | -3,578 |
Amount Reclassified from OCI | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net interest income | 820 | 770 | 2,461 | 2,279 |
Provision for credit losses | 77 | 145 | 247 | 347 |
Noninterest income | 341 | 383 | 1,339 | 1,253 |
Noninterest expense | 810 | 788 | 2,568 | 6,861 |
Income before income tax expense (benefit) | 274 | 220 | 985 | -3,676 |
Income tax expense (benefit) | 85 | 76 | 317 | -98 |
Net income (loss) | 189 | 144 | 668 | -3,578 |
Amount Reclassified from AOCI | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net interest income | -5 | -30 | -25 | -122 |
Noninterest income | 1 | 22 | 20 | 110 |
Noninterest expense | -52 | 3 | -49 | 9 |
Income tax expense (benefit) | 16 | -5 | 15 | -8 |
Net income (loss) | 32 | -6 | 29 | -13 |
Net Unrealized Gains (Losses) on Derivatives | Amount Reclassified from AOCI | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income before income tax expense (benefit) | -5 | -30 | -25 | -124 |
Income tax expense (benefit) | 2 | 11 | 9 | 45 |
Net income (loss) | ($3) | ($19) | ($16) | ($79) |
BUSINESS_SEGMENTS_Narrative_De
BUSINESS SEGMENTS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Consumer Banking | Consumer Banking | Consumer Banking | Consumer Banking | Consumer Banking | Commercial Banking | Commercial Banking | Commercial Banking | Commercial Banking | Other | Other | Other | Other | Other | Forecast | Forecast | Forecast | ||||||
Maximum | Maximum | Minimum | ||||||||||||||||||||
Consumer Banking | Commercial Banking | Commercial Banking | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $1,161 | $1,153 | $3,800 | $3,532 | ' | $758 | $789 | ' | $2,296 | $2,423 | $374 | $356 | $1,108 | $1,055 | $29 | $8 | $396 | $54 | ' | $25 | $2,500 | $25 |
Goodwill impairment | $0 | $0 | $0 | $4,435 | $4,400 | ' | ' | $4,400 | ' | $4,435 | ' | ' | ' | $0 | ' | ' | ' | ' | $4,400 | ' | ' | ' |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net interest income | $820 | $770 | $2,461 | $2,279 |
Noninterest income | 341 | 383 | 1,339 | 1,253 |
Total revenue | 1,161 | 1,153 | 3,800 | 3,532 |
Noninterest expense | 810 | 788 | 2,568 | 6,861 |
Profit (loss) before provision for credit losses | 351 | 365 | 1,232 | -3,329 |
Provision for credit losses | 77 | 145 | 247 | 347 |
Income (loss) before income tax expense (benefit) | 274 | 220 | 985 | -3,676 |
Income tax expense (benefit) | 85 | 76 | 317 | -98 |
NET INCOME (LOSS) | 189 | 144 | 668 | -3,578 |
Total Average Assets | 128,691 | 117,386 | 126,598 | 121,026 |
Consumer Banking | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net interest income | 532 | 543 | 1,615 | 1,633 |
Noninterest income | 226 | 246 | 681 | 790 |
Total revenue | 758 | 789 | 2,296 | 2,423 |
Noninterest expense | 609 | 622 | 1,902 | 1,884 |
Profit (loss) before provision for credit losses | 149 | 167 | 394 | 539 |
Provision for credit losses | 66 | 87 | 195 | 243 |
Income (loss) before income tax expense (benefit) | 83 | 80 | 199 | 296 |
Income tax expense (benefit) | 29 | 28 | 69 | 104 |
NET INCOME (LOSS) | 54 | 52 | 130 | 192 |
Total Average Assets | 49,012 | 46,169 | 48,398 | 46,546 |
Commercial Banking | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net interest income | 270 | 263 | 790 | 771 |
Noninterest income | 104 | 93 | 318 | 284 |
Total revenue | 374 | 356 | 1,108 | 1,055 |
Noninterest expense | 162 | 156 | 472 | 471 |
Profit (loss) before provision for credit losses | 212 | 200 | 636 | 584 |
Provision for credit losses | 0 | 3 | -7 | -21 |
Income (loss) before income tax expense (benefit) | 212 | 197 | 643 | 605 |
Income tax expense (benefit) | 73 | 70 | 222 | 214 |
NET INCOME (LOSS) | 139 | 127 | 421 | 391 |
Total Average Assets | 38,854 | 35,019 | 37,951 | 34,938 |
Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net interest income | 18 | -36 | 56 | -125 |
Noninterest income | 11 | 44 | 340 | 179 |
Total revenue | 29 | 8 | 396 | 54 |
Noninterest expense | 39 | 10 | 194 | 4,506 |
Profit (loss) before provision for credit losses | -10 | -2 | 202 | -4,452 |
Provision for credit losses | 11 | 55 | 59 | 125 |
Income (loss) before income tax expense (benefit) | -21 | -57 | 143 | -4,577 |
Income tax expense (benefit) | -17 | -22 | 26 | -416 |
NET INCOME (LOSS) | -4 | -35 | 117 | -4,161 |
Total Average Assets | $40,825 | $36,198 | $40,249 | $39,542 |
SHAREBASED_COMPENSATION_Share_
SHARE-BASED COMPENSATION - Share Based Compensation Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
Restricted Stock Units | Restricted Stock Units or Convertible Bonds | Restricted Stock Units or Convertible Bonds | Restricted Stock Units | Restricted Stock Units | Employee Stock Purchase Plan | Employee Stock Purchase Plan | RBSG | RBSG | RBSG | Citizens | |||||
Percent Vesting in March 2016 | Percent Vesting in March 2017 | Restricted Stock Units or Convertible Bonds | Restricted Stock Units or Convertible Bonds | Common Stock | Common Stock | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | ||||||
Percent Vesting in March 2016 | Percent Vesting in March 2017 | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting percentage | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' |
Conversion period | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,627,635 | 6,363,919 | ' |
Grant date fair value of shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $53,000,000 | $30,000,000 | ' |
Shares converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,055,349 | ' | ' | 5,158,928 |
Shares issued upon conversion of IPO award bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 524,783 |
Total unvested share awards | ' | ' | ' | ' | 5,706,624 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense related to share-based plans | 10,000,000 | 9,000,000 | 29,000,000 | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase date, Discount from market price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Percent of compensation eligible to be contributed (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Percent of compensation eligible to be contributed during first offering period (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Amount of compensation eligible to be contributed | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' | ' | ' |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE (Narrative) (Details) | 0 Months Ended |
Aug. 22, 2014 | |
Earnings Per Share [Abstract] | ' |
Stock split | 165,582 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic: | ' | ' | ' | ' |
Net income (loss) from operations | $189 | $144 | $668 | ($3,578) |
Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) available to common shareholders | 189 | 144 | 668 | -3,578 |
Diluted: | ' | ' | ' | ' |
Net income (loss) from operations | 189 | 144 | 668 | -3,578 |
Less: undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) available to common shareholders | $189 | $144 | $668 | ($3,578) |
Weighted-average number of shares outstanding: | ' | ' | ' | ' |
Weighted-average common shares outstanding - basic (in Shares) | 559,998,324 | 559,998,324 | 559,998,324 | 559,998,324 |
Dilutive common shares (in Shares) | 245,423 | 0 | 82,707 | 0 |
Weighted-average common shares outstanding - diluted (in Shares) | 560,243,747 | 559,998,324 | 560,081,031 | 559,998,324 |
Earnings per common share: | ' | ' | ' | ' |
Basic (in Dollars per Share) | $0.34 | $0.26 | $1.19 | ($6.39) |
Diluted (in Dollars per Share) | $0.34 | $0.26 | $1.19 | ($6.39) |
OTHER_OPERATING_EXPENSE_Detail
OTHER OPERATING EXPENSE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Deposit insurance | $23 | $18 | $69 | $67 |
Promotional expense | 19 | 18 | 60 | 56 |
Settlements and operating losses | 10 | 9 | 74 | 32 |
Postage and delivery | 12 | 14 | 37 | 39 |
Other | 58 | 64 | 199 | 190 |
Other operating expense | $122 | $123 | $439 | $384 |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Details) (Subsequent Event, RBS, USD $) | 0 Months Ended |
Oct. 08, 2014 | |
Subsequent Event [Line Items] | ' |
Shares repurchased | 14,297,761 |
Shares repurchased, price per share (in dollars per share) | $23.36 |
Subordinated Debt | 4.082% Fixed Rate Due January 2025 | ' |
Subsequent Event [Line Items] | ' |
Debt term | '10 years |