DEI_Document
DEI Document | 12 Months Ended | |
Dec. 31, 2014 | Feb. 01, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Entity Central Index Key | 759944 | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | CFG | |
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 545,901,116 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | No |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
ASSETS: | ||||
Cash and due from banks | $1,171 | $1,406 | ||
Interest-bearing cash and due from banks | 2,105 | 1,351 | ||
Interest-bearing deposits in banks | 370 | 233 | ||
Securities available for sale, at fair value | 18,656 | 15,995 | ||
Securities held to maturity (fair value of $5,193 and $4,257, respectively) | 5,148 | 4,315 | ||
Other investment securities | 872 | 935 | ||
Loans held for sale, at fair value | 256 | 176 | ||
Other loans held for sale | 25 | 1,078 | ||
Loans and leases | 93,410 | [1],[2] | 85,859 | [1],[2] |
Less: Allowance for loan and lease losses | 1,195 | 1,221 | ||
Net loans and leases | 92,215 | 84,638 | ||
Derivative assets (related party balances of $1 and $0, respectively) | 629 | 650 | ||
Premises and equipment, net | 595 | 592 | ||
Bank-owned life insurance | 1,527 | 1,339 | ||
Goodwill | 6,876 | 6,876 | ||
Due from broker | 0 | 446 | ||
Other branch assets held for sale | 0 | 46 | ||
Other assets (related party balances of $7 and $63, respectively) | 2,412 | 2,078 | ||
TOTAL ASSETS | 132,857 | 122,154 | ||
LIABILITIES: | ||||
Noninterest-bearing | 26,086 | 24,931 | ||
Interest-bearing (related party balances of $5 and $5, respectively) | 69,621 | 61,972 | ||
Total deposits | 95,707 | 86,903 | ||
Deposits held for sale | 0 | 5,277 | ||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,791 | ||
Other short-term borrowed funds | 6,253 | 2,251 | ||
Derivative liabilities (related party balances of $387 and $835, respectively) | 612 | 939 | ||
Deferred taxes, net | 493 | 199 | ||
Long-term borrowed funds (related party balances of $2,000 and $1,000, respectively) | 4,642 | 1,405 | ||
Other liabilities (related party balances of $30 and $27, respectively) | 1,606 | 1,193 | ||
TOTAL LIABILITIES | 113,589 | 102,958 | ||
Contingencies | ||||
STOCKHOLDERS' EQUITY: | ||||
$25.00 par value, 100,000,000 shares authorized, no shares outstanding at December 31, 2014, and $1.00 par value, 30,000 shares authorized, no shares outstanding at December 31, 2013 | 0 | 0 | ||
$0.01 par value, 1,000,000,000 shares authorized, 560,262,638 shares issued and 545,884,519 shares outstanding at December 31, 2014, and 559,998,324 shares issued and outstanding at December 31, 2013 | 6 | 6 | ||
Additional paid-in capital | 18,676 | 18,603 | ||
Retained earnings | 1,294 | 1,235 | ||
Treasury stock, at cost, 14,378,119 and 0 shares at December 31, 2014 and 2013, respectively | -336 | 0 | ||
Accumulated other comprehensive loss | -372 | -648 | ||
TOTAL STOCKHOLDERS' EQUITY | 19,268 | 19,196 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $132,857 | $122,154 | ||
[1] | Excluded from the table above are loans held for sale totaling $281 million as of December 31, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Chicago Divestiture. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.†| |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS Parenthetical (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
ASSETS: | ||
Securities held-to-maturity, Fair Value | $5,193 | $4,257 |
Derivative sssets | 629 | 650 |
Other assets | 2,412 | 2,078 |
LIABILITIES: | ||
Interest-bearing | 69,621 | 61,972 |
Derivative liabilities | 612 | 939 |
Long-term borrowed funds | 4,642 | 1,405 |
Other liabilities | 1,606 | 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 | 0 | 0 |
Common Stock, Par Value (in Dollars per Share) | $0.01 | $0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares Issued | 560,262,638 | 559,998,324 |
Common Stock, Shares Outstanding | 545,884,519 | 559,998,324 |
Treasury Stock, Shares | 14,378,119 | 0 |
Related Party | ||
ASSETS: | ||
Derivative sssets | 1 | 0 |
Other assets | 7 | 63 |
LIABILITIES: | ||
Interest-bearing | 5 | 5 |
Derivative liabilities | 387 | 835 |
Long-term borrowed funds | 2,000 | 1,000 |
Other liabilities | $30 | $27 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME: | |||
Interest and fees on loans and leases (related party balances of $72, $56 and $0, respectively) | $3,012 | $3,001 | $3,205 |
Interest and fees on loans held for sale | 5 | 12 | 17 |
Interest and fees on other loans held for sale | 23 | 0 | 0 |
Investment securities | 619 | 477 | 620 |
Interest-bearing deposits in banks | 5 | 11 | 4 |
Total interest income | 3,664 | 3,501 | 3,846 |
INTEREST EXPENSE: | |||
Deposits (related party balances of $0, $15 and $104, respectively) | 156 | 216 | 375 |
Deposits held for sale | 4 | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase (related party balances of $24, $184, and $117, respectively) | 32 | 192 | 119 |
Other short-term borrowed funds (related party balances of $75, $3, and $90, respectively) | 89 | 4 | 101 |
Long-term borrowed funds (related party balances of $64, $16 and $9, respectively) | 82 | 31 | 24 |
Total interest expense | 363 | 443 | 619 |
Net interest income | 3,301 | 3,058 | 3,227 |
Provision for credit losses | 319 | 479 | 413 |
Net interest income after provision for credit losses | 2,982 | 2,579 | 2,814 |
NONINTEREST INCOME: | |||
Service charges and fees (related party balances of $6, $15 and $23, respectively) | 574 | 640 | 704 |
Card fees | 233 | 234 | 249 |
Trust and investment services fees | 158 | 149 | 131 |
Foreign exchange and trade finance fees (related party balances of $58, ($15) and ($9), respectively) | 95 | 97 | 105 |
Capital markets fees (related party balances of $11, $14 and $7, respectively) | 91 | 53 | 52 |
Mortgage banking fees | 71 | 153 | 189 |
Bank-owned life insurance income | 49 | 50 | 51 |
Securities gains, net | 28 | 144 | 95 |
Other-than-temporary impairment: | |||
Total other-than-temporary impairment losses | -45 | -49 | -84 |
Portions of loss recognized in other comprehensive income (before taxes) | 35 | 41 | 60 |
Net impairment losses recognized in earnings | -10 | -8 | -24 |
Other income (related party balances of ($209), ($32) and ($285), respectively) | 389 | 120 | 115 |
Total noninterest income | 1,678 | 1,632 | 1,667 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 1,678 | 1,652 | 1,743 |
Outside services (related party balances of $22, $20 and $21, respectively) | 420 | 360 | 339 |
Occupancy (related party balances of $1, $3 and $2, respectively) | 326 | 327 | 310 |
Equipment expense | 250 | 275 | 279 |
Amortization of software | 145 | 102 | 77 |
Goodwill impairment | 0 | 4,435 | 0 |
Other operating expense | 573 | 528 | 709 |
Total noninterest expense | 3,392 | 7,679 | 3,457 |
Income (loss) before income tax expense (benefit) | 1,268 | -3,468 | 1,024 |
Income tax expense (benefit) | 403 | -42 | 381 |
NET INCOME (LOSS) | $865 | ($3,426) | $643 |
Weighted-average number of shares outstanding: | |||
Basic (in Shares) | 556,674,146 | 559,998,324 | 559,998,324 |
Diluted (in Shares) | 557,724,936 | 559,998,324 | 559,998,324 |
Per common share information: | |||
Basic earnings (in Dollars per Share) | $1.55 | ($6.12) | $1.15 |
Diluted earnings (in Dollars per Share) | $1.55 | ($6.12) | $1.15 |
Dividends declared and paid to parent (in Dollars per Share) | $1.43 | $2.12 | $0.27 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS Parenthetical (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME: | |||
Interest and fees on loans and leases, Related party balance | $3,012 | $3,001 | $3,205 |
INTEREST EXPENSE: | |||
Deposits, Related party balance | 156 | 216 | 375 |
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 32 | 192 | 119 |
Other short-term borrowed funds | 89 | 4 | 101 |
Long-term borrowed funds, Related party balance | 82 | 31 | 24 |
NONINTEREST INCOME: | |||
Service charges and fees, Related party balance | 574 | 640 | 704 |
Foreign exchange and trade finance fees, Related party balance | 95 | 97 | 105 |
Capital markets fees, Related party balance | 91 | 53 | 52 |
Other income, Related party balance | 389 | 120 | 115 |
NONINTEREST EXPENSE: | |||
Occupancy, Related party balance | 326 | 327 | 310 |
Outside services, Related party balance | 420 | 360 | 339 |
Related Party | |||
INTEREST INCOME: | |||
Interest and fees on loans and leases, Related party balance | 72 | 56 | 0 |
INTEREST EXPENSE: | |||
Deposits, Related party balance | 0 | 15 | 104 |
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 24 | 184 | 117 |
Other short-term borrowed funds | 75 | 3 | 90 |
Long-term borrowed funds, Related party balance | 64 | 16 | 9 |
NONINTEREST INCOME: | |||
Service charges and fees, Related party balance | 6 | 15 | 23 |
Foreign exchange and trade finance fees, Related party balance | 58 | -15 | -9 |
Capital markets fees, Related party balance | 11 | 14 | 7 |
Other income, Related party balance | -209 | -32 | -285 |
NONINTEREST EXPENSE: | |||
Occupancy, Related party balance | 1 | 3 | 2 |
Outside services, Related party balance | $22 | $20 | $21 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $865 | ($3,426) | $643 |
Other comprehensive income (loss): | |||
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of $122, ($100) and ($15), respectively | 212 | -172 | -26 |
Reclassification adjustment for net derivative losses included in net income, net of income taxes of $10, $66 and $123, respectively | 17 | 114 | 212 |
Net unrealized securities gains (losses) arising during the periods, net of income taxes of $116, ($165) and $80, respectively | 198 | -285 | 138 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of ($13), ($15) and ($22), respectively | -22 | -26 | -38 |
Reclassification of net securities gains to net income, net of income taxes of ($7), ($50) and ($26), respectively | -11 | -86 | -45 |
Defined benefit pension plans: | |||
Actuarial (loss) gain, net of income taxes of ($92), $66 and ($63), respectively | -148 | 110 | -107 |
Net prior service credit, net of income taxes of $3, $0 and $0, respectively | 4 | 0 | 0 |
Amortization of actuarial gain, net of income taxes $3, $5 and $14, respectively | 7 | 9 | 24 |
Amortization of net prior service credit, net of income taxes $0, $0 and $0, respectively | -1 | 0 | 0 |
Divestitures to parent effective September 1, 2014, net of income taxes of $12, $0 and $0, respectively | 20 | 0 | 0 |
Settlement, net of income taxes of $0, $0 and $34, respectively | 0 | 0 | 58 |
Total other comprehensive income (loss), net of income taxes | 276 | -336 | 216 |
Total comprehensive income (loss) | $1,141 | ($3,762) | $859 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Parenthetical (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative instrument gains (losses) arising during the periods, Tax | $122 | ($100) | ($15) |
Reclassification adjustment for net derivative losses included in net income, Tax | 10 | 66 | 123 |
Net unrealized securities gains (losses) arising during the periods, Tax | 116 | -165 | 80 |
Other-than-temporary impairment not recognized in earnings on securities, Tax | -13 | -15 | -22 |
Reclassification of net securities gains to net income, Tax | -7 | -50 | -26 |
Actuarial loss, Tax | -92 | 66 | -63 |
Net prior service credit, Tax | 3 | 0 | 0 |
Amortization of actuarial loss, Tax | 3 | 5 | 14 |
Amortization of prior service cost, Tax | 0 | 0 | 0 |
Settlement/curtailment, Tax | 0 | 0 | 34 |
Divestitures, Tax | $12 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Amount | Additional Paid-in Capital | Treasury Stock, at Cost | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Millions, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2011 | $23,393 | $0 | $6 | $18,562 | $0 | $5,353 | ($528) |
Beginning balance (in shares) at Dec. 31, 2011 | 560,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend to parent | -150 | -150 | |||||
Capital contribution | 27 | 27 | |||||
Employee stock purchase plan shares purchased | 0 | ||||||
Net income (loss) | 643 | 643 | |||||
Other comprehensive income (loss) | 216 | 216 | |||||
Total comprehensive income (loss) | 859 | 643 | 216 | ||||
Ending balance at Dec. 31, 2012 | 24,129 | 0 | 6 | 18,589 | 0 | 5,846 | -312 |
Ending balance (in shares) at Dec. 31, 2012 | 560,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend to parent | -185 | -185 | |||||
Dividends to parent — exchange transactions | -1,000 | -1,000 | |||||
Capital contribution | 14 | 14 | |||||
Employee stock purchase plan shares purchased | 0 | ||||||
Net income (loss) | -3,426 | -3,426 | |||||
Other comprehensive income (loss) | -336 | -336 | |||||
Total comprehensive income (loss) | -3,762 | -3,426 | -336 | ||||
Ending balance at Dec. 31, 2013 | 19,196 | 0 | 6 | 18,603 | 0 | 1,235 | -648 |
Beginning balance (in shares) at Dec. 31, 2013 | 560,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend to common stockholders | -16 | -16 | |||||
Dividend to parent | -124 | -124 | |||||
Dividends to parent — exchange transactions | -666 | -666 | |||||
Share-based compensation plans | 69 | 71 | -2 | ||||
Employee stock purchase plan shares purchased | 2 | 2 | |||||
Common shares repurchased from parent (in shares) | -14,000,000 | ||||||
Common shares repurchased from parent | -334 | -334 | |||||
Net income (loss) | 865 | 865 | |||||
Other comprehensive income (loss) | 276 | 276 | |||||
Total comprehensive income (loss) | 1,141 | 865 | 276 | ||||
Ending balance at Dec. 31, 2014 | $19,268 | $0 | $6 | $18,676 | ($336) | $1,294 | ($372) |
Ending balance (in shares) at Dec. 31, 2014 | 546,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income (loss) | $865 | ($3,426) | $643 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for credit losses | 319 | 479 | 413 |
Originations of mortgage loans held for sale | -1,615 | -3,781 | -5,496 |
Proceeds from sales of mortgage loans held for sale | 1,578 | 4,229 | 5,436 |
Purchases of commercial loans held for sale | -312 | 0 | 0 |
Proceeds from sales of commercial loans held for sale | 269 | 0 | 0 |
Amortization of terminated cash flow hedges (related party balances of $45, $69 and $74, respectively) | 46 | 73 | 97 |
Depreciation, amortization and accretion | 386 | 404 | 467 |
(Recovery) impairment of mortgage servicing rights | -5 | -47 | 12 |
Securities impairment | 10 | 8 | 24 |
Goodwill impairment | 0 | 4,435 | 0 |
Gain on other investment securities | 0 | 0 | -3 |
Deferred income taxes | 141 | -53 | 306 |
Share-based compensation | 53 | 27 | 29 |
Loss on disposal/impairment of premises and equipment | 27 | 16 | 11 |
Loss on sale of other branch assets held for sale | 9 | 0 | 0 |
Gain on sale of: Securities available for sale | -28 | -144 | -93 |
Gain on sale of: Other investment securities | 0 | 0 | -63 |
Gain on sale of: Other loans held for sale | -11 | 0 | 0 |
Gain on sale of: Deposits held for sale | -286 | 0 | 0 |
Gain on sale of: Other assets | 0 | 0 | 24 |
(Increase) decrease in other assets (related party balances of $55, ($35) and ($24), respectively) | -295 | 827 | 76 |
Increase (decrease) in other liabilities (related party balances of ($445), ($452) and ($323), respectively) | 239 | -398 | -169 |
Net cash provided by operating activities | 1,390 | 2,649 | 1,714 |
INVESTING ACTIVITIES | |||
Purchases of securities available for sale | -8,315 | -10,999 | -5,532 |
Proceeds from maturities and paydowns of securities available for sale | 2,999 | 4,708 | 6,667 |
Proceeds from sales of securities available for sale | 3,325 | 3,645 | 2,724 |
Purchases of other investment securities | -84 | -1 | -1 |
Proceeds from sales of other investment securities | 146 | 127 | 204 |
Purchases of securities held to maturity | -1,174 | -224 | 0 |
Proceeds from maturities and paydowns of securities held to maturity | 362 | 22 | 0 |
Net (decrease) increase in interest-bearing deposits in banks | -137 | 993 | -995 |
Net increase in loans and leases (related party balances of ($413), $0 and $0, respectively) | -6,900 | -341 | -1,432 |
Net increase in bank-owned life insurance | -188 | -40 | -42 |
Net cash payments for divestiture activities | 0 | 0 | -309 |
Premises and equipment: Purchases | -141 | -160 | -178 |
Premises and equipment: Proceeds from sales | 3 | 25 | 6 |
Capitalization of software | -170 | -208 | -193 |
Net cash (used in) provided by investing activities | -10,274 | -2,453 | 919 |
FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 3,813 | -2,968 | 2,584 |
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | -515 | 1,190 | -551 |
Net increase (decrease) in other short-term borrowed funds | 4,002 | 1,750 | -2,599 |
Proceeds from issuance of long-term borrowed funds (related party balances of $1,000, $1,000 and $0, respectively) | 3,249 | 1,002 | 337 |
Repayments of long-term borrowed funds (related party balances of $0, $280 and $216, respectively) | -6 | -291 | -2,885 |
Repurchase of common stock | -334 | 0 | 0 |
Dividends declared and paid to common stockholders | -16 | 0 | 0 |
Dividends declared and paid to parent | -790 | -1,185 | -150 |
Net cash provided by (used in) financing activities | 9,403 | -502 | -3,264 |
Increase (decrease) in cash and cash equivalents | 519 | -306 | -631 |
Cash and cash equivalents at beginning of period | 2,757 | 3,063 | 3,694 |
Cash and cash equivalents at end of period | 3,276 | 2,757 | 3,063 |
Supplemental disclosures: | |||
Interest paid | 338 | 452 | 644 |
Income taxes paid | 391 | 20 | 201 |
Non-cash items: | |||
Transfer of securities available for sale to held to maturity | 0 | 4,240 | 0 |
Transfer of loans and leases to other loans held for sale | 0 | 1,078 | 22 |
Loans securitized and transferred to securities available for sale | 18 | 106 | 21 |
Stock purchased for share-based compensation plans | 71 | 0 | 0 |
Capital contribution | 0 | 14 | 27 |
Employee stock purchase plan shares purchased | 2 | 0 | 0 |
Income tax withholding on stock purchased for share-based compensation | 2 | 0 | 0 |
Due from broker for securities sold but not settled | 0 | -442 | -4 |
Due to broker for securities purchased but not settled | $0 | $0 | $2 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS Parenthetical (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amortization of terminated cash flow hedges | $46 | $73 | $97 |
(Increase) decrease in other assets | -295 | 827 | 76 |
Increase (decrease) in other liabilities | 239 | -398 | -169 |
Net increase in loans and leases | -6,900 | -341 | -1,432 |
Proceeds from issuance of long-term borrowed funds | 3,249 | 1,002 | 337 |
Repayments of long-term borrowed funds | -6 | -291 | -2,885 |
Related Party | |||
Amortization of terminated cash flow hedges | 45 | 69 | 74 |
(Increase) decrease in other assets | 55 | -35 | -24 |
Increase (decrease) in other liabilities | -445 | -452 | -323 |
Net increase in loans and leases | -413 | 0 | 0 |
Proceeds from issuance of long-term borrowed funds | 1,000 | 1,000 | 0 |
Repayments of long-term borrowed funds | $0 | ($280) | ($216) |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES | |
The accounting and reporting policies of Citizens Financial Group, Inc. (formerly RBS Citizens Financial Group, Inc., effective April 16, 2014) conform to GAAP. The Company is a majority-owned subsidiary of The Royal Bank of Scotland Group plc. On December 1, 2008, the UK Government became the ultimate controlling party of RBSG. The UK Government’s shareholding is managed by UK Financial Investments Limited, a company wholly owned by the UK Government. The Company’s principal business activity is banking, conducted through its subsidiaries Citizens Bank, N.A. (formerly RBS Citizens, N.A., effective April 16, 2014) and Citizens Bank of Pennsylvania. | ||
Following is a summary of the significant accounting policies of the Company: | ||
Basis of Presentation | ||
The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements for a variable interest entity to be consolidated. | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the provision for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. | ||
Cash and Cash Equivalents | ||
For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. | ||
Interest-Bearing Deposits in Banks | ||
Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. | ||
Securities | ||
Investments in debt and equity securities are carried in four portfolios: AFS, HTM, trading account assets and other investment securities. Management determines the appropriate classification at the time of purchase. | ||
Securities in the AFS portfolio will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy. Gains and losses on the sales of securities are recognized in earnings and are computed using the specific identification method. Security impairments (i.e., declines in the fair value of securities below cost) that are considered by management to be other-than-temporary are recognized in earnings as realized losses. However, the determination of the impairment amount is dependent on the Company’s intent to sell (or not sell) the security. If the Company intends to sell the impaired security, the impairment loss recognized in current period earnings equals the difference between the instrument’s fair value and amortized cost. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, only the credit-related impairment loss is recognized in current period earnings and this amount equals the difference between the amortized cost of the security and the present value of the expected cash flows that have currently been projected. | ||
Securities AFS are carried at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Premiums and discounts on debt securities are amortized or accreted using a level-yield method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. | ||
Securities are classified as HTM because the Company has the ability and intent to hold the securities to maturity. Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in OCI and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. The securities are reported at cost and adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. | ||
Trading account assets are comprised of debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are carried at fair value. Realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. | ||
Other investment securities are comprised mainly of FHLB stock and FRB stock (which are carried at cost) and venture capital investments (which are carried at fair value, with changes in fair value recognized in noninterest income). For securities that are not publicly traded, estimates of fair value are made based upon review of the investee’s financial results, condition and prospects. Other investment securities, which are carried at cost, are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. | ||
Loans and Leases | ||
Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts (on purchased loans). Deferred loan origination fees and costs and purchase discounts and premiums are amortized as an adjustment of yield over the life of the loan, using the level-yield interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. | ||
Leases are classified at the inception of the lease. Lease receivables, including leveraged leases, are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, including unamortized investment credits. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against noninterest income. Leveraged leases are reported net of non-recourse debt. Unearned income is recognized to yield a level rate of return on the net investment in the leases. | ||
Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. | ||
Loans held for sale (including those loans associated with the Chicago Divestiture) are carried at the lower of cost or fair value. Loans accounted for under the fair value option (including those loans associated with our mortgage banking business and secondary loan trading desk) are carried at fair value. | ||
Allowance for Credit Losses | ||
Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience, and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. The ALLL is maintained at a level that management considers to be reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the allowance. While management uses available information to estimate loan and lease losses, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. | ||
The evaluation of the adequacy of the commercial, commercial real estate, and lease allowance for loan and lease losses and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses and forward loss curve ratios. | ||
For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default, and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location, delinquency status, and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans, and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can used to support management overlays if deemed necessary. | ||
For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. | ||
For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows, compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. | ||
The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, base versus stress losses, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. | ||
In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. | ||
The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the ALLL and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. | ||
Commercial loans and leases are charged off to the allowance when there is little prospect of collecting either principal or interest. Charge-offs of commercial loans and leases usually involve receipt of borrower-specific adverse information. For commercial collateral-dependent loans, an appraisal or other valuation is used to quantify a shortfall between the fair value of the collateral less costs to sell and the recorded investment in the commercial loan. Retail loan charge-offs are generally based on established delinquency thresholds rather than borrower-specific adverse information. When a loan is collateral-dependent, any shortfalls between the fair value of the collateral less costs to sell and the recorded investment is promptly charged off. Placing any loan or lease on nonaccrual status does not by itself require a partial or total charge-off; however, any identified losses are charged off at that time. | ||
Nonperforming Loans and Leases | ||
Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and it’s reasonably assured that the loan or lease will be brought fully current within a reasonable period. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. | ||
Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent. Residential mortgages are returned to accrual status when principal and interest payments become less than 120 days past due and when future payments are reasonably assured. Credit card balances are placed on nonaccrual status when past due 90 days or more. Credit card balances are restored to accruing status if they subsequently become less than 90 days past due. Guaranteed student loans are not placed on nonaccrual status. | ||
All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Loans are generally returned to accrual status if the loan becomes less than 15 days past due. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. | ||
Impaired Loans | ||
A loan is considered to be impaired when it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogenous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. A loan modification is identified as a TDR when the Company or bankruptcy court grants the borrower a concession the Company would not otherwise make, in response to the borrower’s financial difficulties. 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 loans with risk similar to that of the restructured loan. Additionally, TDRs for commercial loans 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. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. | ||
Impairment evaluations are performed at the individual loan level, and consider expected future cash flows from the loan, including, if appropriate, the realizable value of collateral. Impaired loans which are not TDRs are nonaccruing, and loans involved in TDRs may be accruing or nonaccruing. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. | ||
Loans are generally restored to accrual status when principal and interest payments are brought current and when future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan’s contractual terms. | ||
Premises and Equipment | ||
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. | ||
Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||
Software | ||
Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. | ||
Fair Value | ||
The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. | ||
A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, private equity investments, and derivative instruments. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: | ||
• | Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
• | Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. | |
• | Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. | |
Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. | ||
The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. | ||
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans, and goodwill. | ||
Goodwill | ||
Goodwill is the purchase premium associated with the acquisition of a business. It is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. | ||
Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. | ||
The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible assets as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | ||
The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the current discount rate, as well as projected loan loss, income tax and capital retention rates. | ||
Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. | ||
The Company bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. | ||
Bank-Owned Life Insurance | ||
Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers and selected employees of the Company. | ||
Employee Benefits | ||
Pension costs under defined benefit plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The cost of postretirement and postemployment benefits other than pensions is recognized on an accrual basis during the periods employees provide services to earn those benefits. | ||
Share-Based Compensation | ||
The Company sponsors various stock award plans under which restricted stock units are granted periodically to employees. The Company recognizes compensation expense related to stock awards based upon the fair value of the awards which is the closing price of CFG common stock on the date of the grant, adjusted for expected forfeiting. The related expense is charged to earnings over the requisite service period (e.g., vesting period). Additionally, the Company estimates the number of awards for which it is probable that service will be rendered based upon historical data to estimate employee attrition and adjusts compensation cost accordingly. Estimated forfeitures are subsequently adjusted to reflect actual shares that have vested. | ||
Derivatives | ||
The Company is party to a variety of derivative transactions, including interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, forward sale contracts, warrants and purchase options. The Company enters into contracts in order to meet the financing needs of its customers. The Company also enters into contracts as a means of reducing its interest rate and foreign currency risks, and these contracts are designated as hedges when acquired, based on management’s intent. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. | ||
All derivatives, whether designated for hedging relationships or not, are recognized in the Consolidated Balance Sheets at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI, a component of stockholders’ equity. The ineffective portions of cash flow hedges are immediately recognized as an adjustment to income or expense. For cash flow hedging relationships that have been discontinued, balances in OCI are reclassified to interest expense in the periods during which the hedged item affects income. If it is probable that the hedged forecasted transaction will not occur, balances in OCI are reclassified immediately to income. If a derivative is designated as a fair value hedge, gains or losses attributable to the change in fair value of the derivative instrument, as well as the gains and losses attributable to the change in fair value of the hedged item, are recognized in other noninterest income in the period in which the change in fair value occurs. Hedge ineffectiveness is recognized as other noninterest income to the extent the changes in fair value of the derivative do not offset the changes in fair value of the hedged item. Changes in the fair value of derivatives that do not qualify as hedges are recognized immediately in earnings. | ||
Derivative assets and derivative liabilities governed by master netting agreements are netted by counterparty on the balance sheet, and this netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a CSA. | ||
Transfers and Servicing of Financial Assets | ||
A transfer of financial assets is accounted for as a sale when control over the assets transferred is surrendered. Assets transferred that satisfy the conditions of a sale are derecognized, and all assets obtained and liabilities incurred in a purchase are recognized and measured at fair value. Servicing rights retained in the transfer of financial assets are initially recognized at fair value. Subsequent to the initial recognition date, the Company recognizes periodic amortization expense of servicing rights and assesses servicing rights for impairment. | ||
Mortgage Banking | ||
Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking fees. | ||
MSRs are presented in the Consolidated Balance Sheets net of accumulated amortization, which is recorded in proportion to, and over the period of, net servicing income. The Company’s identification of MSRs in a single class is determined based on the availability of market inputs and the Company’s method of managing MSR risks. For the purpose of evaluating impairment, MSRs are stratified based on predominant risk characteristics (such as interest rate, loan size, origination date, term, or geographic location) of the underlying loans. An allowance is then established in the event the recorded value of an individual stratum exceeds fair value. | ||
The Company accounts for derivatives in its mortgage banking operations at fair value on the balance sheet as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. | ||
Income Taxes | ||
The Company uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes. This results in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the bases of assets and liabilities, as measured by tax laws, and their bases, as reported in the Consolidated Financial Statements. | ||
Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. | ||
The Company also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. | ||
Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. | ||
Treasury Stock | ||
The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on the first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable. | ||
Revenue Recognition | ||
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. | ||
Interest income on loans and securities classified as AFS or HTM is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan or security, to provide a constant rate of return over the terms of the financial assets. Securities classified as trading account assets, and other financial assets accounted for using the fair value option, are measured at fair value with corresponding changes recognized in noninterest income. | ||
Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate on the loan. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. | ||
Other types of noninterest revenues, such as service charges on deposits, interchange income on credit cards and trust revenues, are accrued and recognized into income as services are provided and the amount of fees earned are reasonably determinable. | ||
Earnings Per Share | ||
Basic EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income/(loss) available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as call options, share-based payment awards, and warrants using the treasury stock method. | ||
Recent Accounting Pronouncements | ||
In November 2014, the FASB issued Accounting Standards Update No. 2014-17, “Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)”. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. The amendments, which were effective on November 18, 2014 did not have a material impact on the Company’s Consolidated Financial Statements. | ||
In November 2014, the FASB issued Accounting Standards Update No. 2014-16, “Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity”. The ASU applies to certain classes of shares that include features that entitle the holders to preferences and rights (such as conversion rights, redemption rights, voting powers, and liquidation and dividend payment preferences) over the other shareholders. The amendments require all reporting entities that are issuers of (or investors in) such hybrid financial instruments to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances. The amendment is effective for annual periods beginning after December 15, 2015, and interim periods thereafter, and is not expected to have a material impact on the Company’s Consolidated Financial Statements. | ||
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. It is not expected to have a material impact on the Company’s 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 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 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 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 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 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. It is not expected to have a material impact on the Company’s 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 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. Management expects this amendment to unfavorably impact the 2015 effective income tax rate by approximately 2.4%, however this is not expected to have a material impact on the Company’s Consolidated Financial Statements. See Note 14 “Income Taxes” for further information. |
CASH_AND_DUE_FROM_BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | CASH AND DUE FROM BANKS |
The Company’s subsidiary banks maintain certain average reserve balances and compensating balances for check clearing and other services with the FRB. At December 31, 2014 and 2013, the balance of deposits at the FRB amounted to $2.1 billion and $1.4 billion, respectively. Average balances maintained with the FRB during the years ended December 31, 2014, 2013, and 2012 exceeded amounts required by law for the FRB’s requirements. All amounts, both required and excess reserves, held at the FRB currently earn interest at a fixed rate of 25 basis points. As a result, the Company recorded, in interest-bearing deposits in banks, interest income on FRB deposits of $5 million, $5 million, and $3 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
SECURITIES
SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||
SECURITIES | SECURITIES | ||||||||||||||||||||||||||
The following table provides the major components of securities at amortized cost and fair value: | |||||||||||||||||||||||||||
December 31, 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 | 17,683 | 301 | (50 | ) | 17,934 | 14,970 | 151 | (128 | ) | 14,993 | |||||||||||||||||
Other/non-agency | 703 | 4 | (35 | ) | 672 | 992 | 5 | (45 | ) | 952 | |||||||||||||||||
Total mortgage-backed securities | 18,386 | 305 | (85 | ) | 18,606 | 15,962 | 156 | (173 | ) | 15,945 | |||||||||||||||||
Total debt securities available for sale | 18,411 | 305 | (85 | ) | 18,631 | 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 | $18,433 | $308 | ($85 | ) | $18,656 | $16,010 | $159 | ($174 | ) | $15,995 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,728 | $22 | ($31 | ) | $3,719 | $2,940 | $— | ($33 | ) | $2,907 | |||||||||||||||||
Other/non-agency | 1,420 | 54 | — | 1,474 | 1,375 | — | (25 | ) | 1,350 | ||||||||||||||||||
Total securities held to maturity | $5,148 | $76 | ($31 | ) | $5,193 | $4,315 | $— | ($58 | ) | $4,257 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $477 | $— | $— | $477 | $462 | $— | $— | $462 | |||||||||||||||||||
Federal Home Loan Bank stock | 390 | — | — | 390 | 468 | — | — | 468 | |||||||||||||||||||
Venture capital and other investments | 5 | — | — | 5 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $872 | $— | $— | $872 | $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: | |||||||||||||||||||||||||||
December 31, 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 | ||||||||||||||||||
State and political subdivisions | — | $— | $— | 1 | $10 | $— | 1 | $10 | $— | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 75 | 3,282 | (24 | ) | 52 | 1,766 | (57 | ) | 127 | 5,048 | (81 | ) | |||||||||||||||
Other/non-agency | 6 | 80 | (2 | ) | 17 | 397 | (33 | ) | 23 | 477 | (35 | ) | |||||||||||||||
Total mortgage-backed securities | 81 | 3,362 | (26 | ) | 69 | 2,163 | (90 | ) | 150 | 5,525 | (116 | ) | |||||||||||||||
Total | 81 | $3,362 | ($26 | ) | 70 | $2,173 | ($90 | ) | 151 | $5,535 | ($116 | ) | |||||||||||||||
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: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cumulative balance at beginning of period | $56 | $55 | $38 | ||||||||||||||||||||||||
Credit impairments recognized in earnings on securities not previously impaired | — | — | 1 | ||||||||||||||||||||||||
Credit impairments recognized in earnings on securities that have been previously impaired | 10 | 8 | 23 | ||||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (4 | ) | (7 | ) | (7 | ) | |||||||||||||||||||||
Cumulative balance at end of period | $62 | $56 | $55 | ||||||||||||||||||||||||
Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of December 31, 2014, 2013 and 2012 were $62 million, $56 million, $55 million, respectively. There were no credit losses recognized in earnings for the Company's HTM portfolio for the years ended December 31, 2014 and 2013. For the years ended December 31, 2014, 2013 and 2012, the Company recognized credit related other-than-temporary impairment losses in earnings of $10 million, $8 million and $24 million, respectively, related to non-agency MBS in the AFS portfolio. The Company sold no impaired debt securities during the years ended December 31, 2014, 2013 and 2012, respectively. Reductions in credit losses due to increases in cash flow expectations were $4 million, $7 million and $7 million for the years ended December 31, 2014, 2013, and 2012, 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 December 31, 2014, 2013, and 2012, $35 million, $41 million, and $60 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 December 31, 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 | 2 | 53 | 2,318 | 15,310 | 17,683 | ||||||||||||||||||||||
Other/non-agency | — | 51 | 57 | 595 | 703 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 104 | 2,375 | 15,915 | 18,411 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,728 | 3,728 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,420 | 1,420 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,148 | 5,148 | ||||||||||||||||||||||
Total amortized cost of debt securities | $17 | $104 | $2,375 | $21,063 | $23,559 | ||||||||||||||||||||||
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 | 2 | 56 | 2,333 | 15,543 | 17,934 | ||||||||||||||||||||||
Other/non-agency | — | 52 | 58 | 562 | 672 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 108 | 2,391 | 16,115 | 18,631 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,719 | 3,719 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,474 | 1,474 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,193 | 5,193 | ||||||||||||||||||||||
Total fair value of debt securities | $17 | $108 | $2,391 | $21,308 | $23,824 | ||||||||||||||||||||||
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Taxable | $619 | $477 | $618 | ||||||||||||||||||||||||
Non-taxable | — | — | 2 | ||||||||||||||||||||||||
Interest-bearing cash and due from banks and deposits in banks | 5 | 11 | 4 | ||||||||||||||||||||||||
Total interest income from investment securities | $624 | $488 | $624 | ||||||||||||||||||||||||
Realized gains and losses on AFS securities are shown below: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Gains on sale of debt securities | $33 | $144 | $93 | ||||||||||||||||||||||||
Losses on sale of debt securities | (5 | ) | — | — | |||||||||||||||||||||||
Gains on sale of marketable equity securities | — | — | 2 | ||||||||||||||||||||||||
Total | $28 | $144 | $95 | ||||||||||||||||||||||||
The amortized cost and fair value of securities pledged are shown below: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $3,650 | $3,701 | $5,016 | $4,998 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,355 | 1,407 | 1 | 1 | |||||||||||||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,453 | 3,520 | 2,818 | 2,853 | |||||||||||||||||||||||
Securitizations of mortgage loans retained in the investment portfolio for the years ended December 31, 2014, 2013, and 2012 were $18 million, $106 million, and $21 million, respectively. These securitizations included a substantive guarantee by a third party. In 2014 and 2013, the guarantors were Fannie Mae, Ginnie Mae, and Freddie Mac. In 2012, the guarantors were Fannie Mae and Freddie Mac. These securitizations were accounted for as a sale of the transferred loans and as a purchase of securities. The securities received from the guarantors are classified as AFS. | |||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
December 31, 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 | (2,600 | ) | — | (2,600 | ) | (3,000 | ) | — | (3,000 | ) | |||||||||||||||||
Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 15 “Derivatives.” |
LOANS_AND_LEASES
LOANS AND LEASES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
LOANS AND LEASES | LOANS AND LEASES | |||||||
A summary of the loans and leases portfolio follows: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Commercial | $31,431 | $28,667 | ||||||
Commercial real estate | 7,809 | 6,948 | ||||||
Leases | 3,986 | 3,780 | ||||||
Total commercial | 43,226 | 39,395 | ||||||
Residential mortgages | 11,832 | 9,726 | ||||||
Home equity loans | 3,424 | 4,301 | ||||||
Home equity lines of credit | 15,423 | 15,667 | ||||||
Home equity loans serviced by others (1) | 1,228 | 1,492 | ||||||
Home equity lines of credit serviced by others (1) | 550 | 679 | ||||||
Automobile | 12,706 | 9,397 | ||||||
Student | 2,256 | 2,208 | ||||||
Credit cards | 1,693 | 1,691 | ||||||
Other retail | 1,072 | 1,303 | ||||||
Total retail | 50,184 | 46,464 | ||||||
Total loans and leases (2) (3) | $93,410 | $85,859 | ||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | ||||||||
(2) Excluded from the table above are loans held for sale totaling $281 million as of December 31, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Chicago Divestiture. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.” | ||||||||
(3) Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively. | ||||||||
Loans held for sale totaled $256 million and $176 million at December 31, 2014 and 2013, respectively, and consisted primarily of residential mortgages originated for sale. Other loans held for sale totaled $25 million and $1.1 billion at December 31, 2014 and 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 17 “Divestitures and Branch Assets and Liabilities Held for Sale.” | ||||||||
Loans pledged as collateral for FHLB borrowed funds totaled $22.0 billion and $19.0 billion at December 31, 2014 and 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 $11.8 billion and $13.9 billion at December 31, 2014 and 2013, respectively. | ||||||||
During the year ended December 31, 2014, the Company purchased a portfolio of residential loans with an outstanding principal balance of $1.9 billion, a portfolio of auto loans with an outstanding principal balance of $1.7 billion, a portfolio of student loans with an outstanding principal balance of $59 million. Additionally, the Company purchased a portfolio of performing commercial loans to customers in the oil and gas industry from RBS with an outstanding principal balance of $417 million. During the year ended December 31, 2013, the Company purchased a portfolio of residential loans with an outstanding principal balance of $912 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 $301 million during the year ended December 31, 2014. The Company had no sale transactions during the year ended December 31, 2013. | ||||||||
In December 2014, the Company committed to purchasing pools of performing student loans with principal balances outstanding of approximately $260 million. The specific loans to be purchased were identified in January 2015 and the transactions were settled in January and February 2015. | ||||||||
The Company is engaged in the leasing of equipment for commercial use, with primary lease concentrations to Fortune 1000 companies for large capital equipment acquisitions. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its balance sheet. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. | ||||||||
A summary of the investment in leases, before the allowance for lease losses, is as follows: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Direct financing leases | $3,873 | $3,668 | ||||||
Leveraged leases | 113 | 112 | ||||||
Total leases | $3,986 | $3,780 | ||||||
The components of the investment in leases, before the allowance for lease losses, are as follows: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Total future minimum lease rentals | $3,324 | $3,252 | ||||||
Estimated residual value of leased equipment (non-guaranteed) | 1,059 | 968 | ||||||
Initial direct costs | 22 | 20 | ||||||
Unearned income on minimum lease rentals and estimated residual value of leased equipment | (419 | ) | (460 | ) | ||||
Total leases | $3,986 | $3,780 | ||||||
At December 31, 2014, the future minimum lease rentals on direct financing and leveraged leases are as follows: | ||||||||
Year Ended December 31, | (in millions) | |||||||
2015 | $699 | |||||||
2016 | 615 | |||||||
2017 | 497 | |||||||
2018 | 444 | |||||||
2019 | 347 | |||||||
Thereafter | 722 | |||||||
Total | $3,324 | |||||||
Pre-tax income on leveraged leases was $2 million for the year ended December 31, 2014 and $3 million for the years ended December 31, 2013 and 2012. The income tax expense on this income was $1 million for the years ended December 31, 2014, 2013 and 2012. There was no investment credit recognized in income during these years. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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” 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. | |||||||||||||||||||||
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. | |||||||||||||||||||||
Additionally, during December 2013, the Company revised and extended its incurred loss period for certain residential mortgages. This change reflects management's recognition that incurred but unrealized losses emerge differently during various points of an economic/business cycle. Incurred Loss Periods (“ILPs”) are not static and move over time based on several factors. As economies expand and contract, access to credit, jobs, and liquidity moves directionally with the economy. ILPs will be longer in stronger economic times, when borrowers have the financial ability to withstand adversity and the ILPs will be shorter in an adverse economic environment, when the borrower has less financial flexibility. Since the current economy has not been as strong as the economy during the 2002-2006 time period, we believe that ILPs will not be as long, but rather directional to our history. Since overall Company reserves are deemed adequate, there was no need to increase the reserve but rather reallocate some of the general reserves to cover the $96 million incurred loss period increase. | |||||||||||||||||||||
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: | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in millions) | Commercial | Retail | Total | ||||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | ||||||||||||||||||
Charge-offs | (43 | ) | (450 | ) | (493 | ) | |||||||||||||||
Recoveries | 58 | 112 | 170 | ||||||||||||||||||
Net recoveries (charge-offs) | 15 | (338 | ) | (323 | ) | ||||||||||||||||
Provision charged to income | 31 | 266 | 297 | ||||||||||||||||||
Allowance for loan and lease losses as of December 31, 2014 | 544 | 651 | 1,195 | ||||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | ||||||||||||||||||
Provision for unfunded lending commitments | 22 | — | 22 | ||||||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2014 | 61 | — | 61 | ||||||||||||||||||
Total allowance for credit losses as of December 31, 2014 | $605 | $651 | $1,256 | ||||||||||||||||||
Year Ended December 31, 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 | (108 | ) | (595 | ) | — | (703 | ) | ||||||||||||||
Recoveries | 87 | 115 | — | 202 | |||||||||||||||||
Net charge-offs | (21 | ) | (480 | ) | — | (501 | ) | ||||||||||||||
Sales/Other | (6 | ) | (6 | ) | (1 | ) | (13 | ) | |||||||||||||
Provision charged to income | (19 | ) | 396 | 103 | 480 | ||||||||||||||||
Transfer of unallocated reserve to qualitative reserve | 35 | 60 | (95 | ) | — | ||||||||||||||||
Loss emergence period change | — | 96 | (96 | ) | — | ||||||||||||||||
Allowance for loan and lease losses as of December 31, 2013 | 498 | 723 | — | 1,221 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2013 | 40 | — | — | 40 | |||||||||||||||||
Credit for unfunded lending commitments | (1 | ) | — | — | (1 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2013 | 39 | — | — | 39 | |||||||||||||||||
Total allowance for credit losses as of December 31, 2013 | $537 | $723 | $— | $1,260 | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in millions) | Commercial | Retail | Unallocated | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2012 | $691 | $816 | $191 | $1,698 | |||||||||||||||||
Charge-offs | (257 | ) | (853 | ) | — | (1,110 | ) | ||||||||||||||
Recoveries | 113 | 122 | — | 235 | |||||||||||||||||
Net charge-offs | (144 | ) | (731 | ) | — | (875 | ) | ||||||||||||||
Sales/Other | (2 | ) | — | — | (2 | ) | |||||||||||||||
Provision charged to income | (36 | ) | 572 | (102 | ) | 434 | |||||||||||||||
Allowance for loan and lease losses as of December 31, 2012 | 509 | 657 | 89 | 1,255 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2012 | 61 | — | — | 61 | |||||||||||||||||
Credit for unfunded lending commitments | (21 | ) | — | — | (21 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2012 | 40 | — | — | 40 | |||||||||||||||||
Total allowance for credit losses as of December 31, 2012 | $549 | $657 | $89 | $1,295 | |||||||||||||||||
The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: | |||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||
Individually evaluated | $205 | $1,208 | $1,413 | $239 | $1,200 | $1,439 | |||||||||||||||
Formula-based evaluation | 43,021 | 48,976 | 91,997 | 39,156 | 45,264 | 84,420 | |||||||||||||||
Total | $43,226 | $50,184 | $93,410 | $39,395 | $46,464 | $85,859 | |||||||||||||||
The following is a summary of the allowance for credit losses by evaluation method: | |||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||
Individually evaluated | $20 | $109 | $129 | $23 | $108 | $131 | |||||||||||||||
Formula-based evaluation | 585 | 542 | 1,127 | 514 | 615 | 1,129 | |||||||||||||||
Allowance for credit losses | $605 | $651 | $1,256 | $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: | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Criticized | |||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | $30,022 | $876 | $427 | $106 | $31,431 | ||||||||||||||||
Commercial real estate | 7,354 | 329 | 61 | 65 | 7,809 | ||||||||||||||||
Leases | 3,924 | 12 | 50 | — | 3,986 | ||||||||||||||||
Total | $41,300 | $1,217 | $538 | $171 | $43,226 | ||||||||||||||||
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: | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||
Residential mortgages | $11,352 | $114 | $97 | $269 | $11,832 | ||||||||||||||||
Home equity loans | 2,997 | 222 | 60 | 145 | 3,424 | ||||||||||||||||
Home equity lines of credit | 14,705 | 447 | 73 | 198 | 15,423 | ||||||||||||||||
Home equity loans serviced by others (1) | 1,101 | 78 | 26 | 23 | 1,228 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 455 | 66 | 10 | 19 | 550 | ||||||||||||||||
Automobile | 11,839 | 758 | 93 | 16 | 12,706 | ||||||||||||||||
Student | 2,106 | 108 | 25 | 17 | 2,256 | ||||||||||||||||
Credit cards | 1,615 | 39 | 22 | 17 | 1,693 | ||||||||||||||||
Other retail | 985 | 65 | 18 | 4 | 1,072 | ||||||||||||||||
Total | $47,155 | $1,897 | $424 | $708 | $50,184 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||
Residential mortgages | $9,236 | $114 | $115 | $261 | $9,726 | ||||||||||||||||
Home equity loans | 3,808 | 257 | 68 | 168 | 4,301 | ||||||||||||||||
Home equity lines of credit | 14,868 | 490 | 76 | 233 | 15,667 | ||||||||||||||||
Home equity loans serviced by others (1) | 1,340 | 84 | 32 | 36 | 1,492 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 561 | 83 | 11 | 24 | 679 | ||||||||||||||||
Automobile | 8,863 | 481 | 44 | 9 | 9,397 | ||||||||||||||||
Student | 2,012 | 118 | 45 | 33 | 2,208 | ||||||||||||||||
Credit cards | 1,581 | 67 | 22 | 21 | 1,691 | ||||||||||||||||
Other retail | 1,205 | 69 | 22 | 7 | 1,303 | ||||||||||||||||
Total | $43,474 | $1,763 | $435 | $792 | $46,464 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Nonperforming Assets | |||||||||||||||||||||
A summary of nonperforming loans and leases by class is as follows: | |||||||||||||||||||||
December 31, 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 | $113 | $1 | $114 | $96 | $— | $96 | |||||||||||||||
Commercial real estate | 50 | — | 50 | 169 | — | 169 | |||||||||||||||
Leases | — | — | — | — | — | — | |||||||||||||||
Total commercial | 163 | 1 | 164 | 265 | — | 265 | |||||||||||||||
Residential mortgages | 345 | — | 345 | 382 | — | 382 | |||||||||||||||
Home equity loans | 203 | — | 203 | 266 | — | 266 | |||||||||||||||
Home equity lines of credit | 257 | — | 257 | 333 | — | 333 | |||||||||||||||
Home equity loans serviced by others (1) | 47 | — | 47 | 59 | — | 59 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 25 | — | 25 | 30 | — | 30 | |||||||||||||||
Automobile | 21 | — | 21 | 16 | — | 16 | |||||||||||||||
Student | 11 | 6 | 17 | 3 | 31 | 34 | |||||||||||||||
Credit cards | 16 | 1 | 17 | 19 | 2 | 21 | |||||||||||||||
Other retail | 5 | — | 5 | 10 | — | 10 | |||||||||||||||
Total retail | 930 | 7 | 937 | 1,118 | 33 | 1,151 | |||||||||||||||
Total | $1,093 | $8 | $1,101 | $1,383 | $33 | $1,416 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
A summary of other nonperforming assets is as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in millions) | 2014 | 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: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.18 | % | 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 | 1.18 | 1.65 | |||||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.13 | 0.23 | |||||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.73 | 0.97 | |||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.86 | % | 1.2 | % | |||||||||||||||||
The following is an analysis of the age of the past due amounts (accruing and nonaccruing): | |||||||||||||||||||||
December 31, 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 | $57 | $114 | $171 | $61 | $96 | $157 | |||||||||||||||
Commercial real estate | 26 | 50 | 76 | 34 | 169 | 203 | |||||||||||||||
Leases | 3 | — | 3 | 24 | — | 24 | |||||||||||||||
Total commercial | 86 | 164 | 250 | 119 | 265 | 384 | |||||||||||||||
Residential mortgages | 97 | 269 | 366 | 115 | 261 | 376 | |||||||||||||||
Home equity loans | 60 | 145 | 205 | 68 | 168 | 236 | |||||||||||||||
Home equity lines of credit | 73 | 198 | 271 | 76 | 233 | 309 | |||||||||||||||
Home equity loans serviced by others (1) | 26 | 23 | 49 | 32 | 36 | 68 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 10 | 19 | 29 | 11 | 24 | 35 | |||||||||||||||
Automobile | 93 | 16 | 109 | 44 | 9 | 53 | |||||||||||||||
Student | 25 | 17 | 42 | 45 | 33 | 78 | |||||||||||||||
Credit cards | 22 | 17 | 39 | 22 | 21 | 43 | |||||||||||||||
Other retail | 18 | 4 | 22 | 22 | 7 | 29 | |||||||||||||||
Total retail | 424 | 708 | 1,132 | 435 | 792 | 1,227 | |||||||||||||||
Total | $510 | $872 | $1,382 | $554 | $1,057 | $1,611 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
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: | |||||||||||||||||||||
December 31, 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 | $124 | $19 | $36 | $178 | $160 | ||||||||||||||||
Commercial real estate | 7 | 1 | 38 | 62 | 45 | ||||||||||||||||
Total commercial | 131 | 20 | 74 | 240 | 205 | ||||||||||||||||
Residential mortgages | 157 | 18 | 288 | 605 | 445 | ||||||||||||||||
Home equity loans | 129 | 11 | 141 | 335 | 270 | ||||||||||||||||
Home equity lines of credit | 75 | 3 | 86 | 193 | 161 | ||||||||||||||||
Home equity loans serviced by others (1) | 75 | 9 | 16 | 102 | 91 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 4 | 1 | 7 | 14 | 11 | ||||||||||||||||
Automobile | 2 | 1 | 9 | 16 | 11 | ||||||||||||||||
Student | 167 | 48 | — | 167 | 167 | ||||||||||||||||
Credit cards | 32 | 13 | — | 32 | 32 | ||||||||||||||||
Other retail | 17 | 5 | 3 | 23 | 20 | ||||||||||||||||
Total retail | 658 | 109 | 550 | 1,487 | 1,208 | ||||||||||||||||
Total | $789 | $129 | $624 | $1,727 | $1,413 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
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 mortgages | 174 | 42 | 267 | 588 | 441 | ||||||||||||||||
Home equity loans | 104 | 17 | 143 | 301 | 247 | ||||||||||||||||
Home equity lines of credit | 77 | — | 87 | 192 | 164 | ||||||||||||||||
Home equity loans serviced by others (1) | 86 | 10 | 14 | 110 | 100 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 5 | 1 | 7 | 15 | 12 | ||||||||||||||||
Automobile | 2 | — | 8 | 15 | 10 | ||||||||||||||||
Student | 159 | 21 | — | 159 | 159 | ||||||||||||||||
Credit cards | 42 | 14 | — | 42 | 42 | ||||||||||||||||
Other retail | 21 | 3 | 4 | 28 | 25 | ||||||||||||||||
Total retail | 670 | 108 | 530 | 1,450 | 1,200 | ||||||||||||||||
Total | $832 | $131 | $607 | $1,885 | $1,439 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Additional information on impaired loans is as follows: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | |||||||||||||||
Commercial | $9 | $198 | $1 | $157 | $1 | $276 | |||||||||||||||
Commercial real estate | 2 | 98 | 1 | 149 | 1 | 310 | |||||||||||||||
Total commercial | 11 | 296 | 2 | 306 | 2 | 586 | |||||||||||||||
Residential mortgages | 14 | 429 | 7 | 419 | 4 | 236 | |||||||||||||||
Home equity loans | 8 | 246 | 5 | 228 | 2 | 200 | |||||||||||||||
Home equity lines of credit | 4 | 149 | 2 | 90 | — | 38 | |||||||||||||||
Home equity loans serviced by others (1) | 5 | 91 | 5 | 102 | 6 | 118 | |||||||||||||||
Home equity lines of credit serviced by others (1) | — | 11 | — | 12 | — | 9 | |||||||||||||||
Automobile | — | 7 | — | 8 | — | 5 | |||||||||||||||
Student | 8 | 153 | 7 | 140 | — | 11 | |||||||||||||||
Credit cards | 2 | 31 | 3 | 41 | — | — | |||||||||||||||
Other retail | 1 | 21 | 1 | 25 | 1 | 28 | |||||||||||||||
Total retail | 42 | 1,138 | 30 | 1,065 | 13 | 645 | |||||||||||||||
Total | $53 | $1,434 | $32 | $1,371 | $15 | $1,231 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
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, 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 $176 million and $167 million on December 31, 2014 and 2013, respectively. Retail TDRs totaled $1.2 billion on December 31, 2014 and 2013. Commitments to lend additional funds to debtors owing receivables which were TDRs were $53 million and $52 million on December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
The following table summarizes how loans were modified during the year ended December 31, 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 December 31, 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 | 25 | $8 | $7 | 131 | $21 | $22 | |||||||||||||||
Commercial real estate | 9 | 1 | 2 | 15 | 3 | 2 | |||||||||||||||
Total commercial | 34 | 9 | 9 | 146 | 24 | 24 | |||||||||||||||
Residential mortgages | 126 | 17 | 17 | 40 | 6 | 5 | |||||||||||||||
Home equity loans | 125 | 8 | 9 | 85 | 5 | 6 | |||||||||||||||
Home equity lines of credit | 7 | — | — | 276 | 17 | 16 | |||||||||||||||
Home equity loans serviced by others (3) | 42 | 2 | 2 | — | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 4 | — | — | 1 | — | — | |||||||||||||||
Automobile | 75 | 1 | 1 | 18 | — | — | |||||||||||||||
Credit cards | 2,165 | 12 | 12 | — | — | — | |||||||||||||||
Other retail | 3 | — | — | — | — | — | |||||||||||||||
Total retail | 2,547 | 40 | 41 | 420 | 28 | 27 | |||||||||||||||
Total | 2,581 | $49 | $50 | 566 | $52 | $51 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(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 | 27 | $52 | $74 | $3 | $— | ||||||||||||||||
Commercial real estate | 1 | 7 | 7 | — | 3 | ||||||||||||||||
Total commercial | 28 | 59 | 81 | 3 | 3 | ||||||||||||||||
Residential mortgages | 393 | 47 | 46 | (4 | ) | 1 | |||||||||||||||
Home equity loans | 1,046 | 63 | 62 | (1 | ) | 2 | |||||||||||||||
Home equity lines of credit | 356 | 25 | 21 | — | 5 | ||||||||||||||||
Home equity loans serviced by others (3) | 138 | 5 | 5 | (1 | ) | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 39 | 2 | 2 | — | — | ||||||||||||||||
Automobile | 1,039 | 17 | 13 | — | 5 | ||||||||||||||||
Student | 1,675 | 31 | 31 | 5 | — | ||||||||||||||||
Other retail | 57 | 2 | 1 | (1 | ) | — | |||||||||||||||
Total retail | 4,743 | 192 | 181 | (2 | ) | 13 | |||||||||||||||
Total | 4,771 | $251 | $262 | $1 | $16 | ||||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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 year ended December 31, 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 December 31, 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 | 126 | $13 | $13 | 134 | $18 | $18 | |||||||||||||||
Commercial real estate | 11 | 7 | 7 | 3 | 1 | 1 | |||||||||||||||
Total commercial | 137 | 20 | 20 | 137 | 19 | 19 | |||||||||||||||
Residential mortgages | 200 | 32 | 33 | 46 | 5 | 6 | |||||||||||||||
Home equity loans | 196 | 15 | 16 | 94 | 6 | 6 | |||||||||||||||
Home equity lines of credit | 18 | 1 | 1 | 2,081 | 80 | 70 | |||||||||||||||
Home equity loans serviced by others (3) | 31 | 2 | 2 | 5 | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 3 | — | — | 1 | — | — | |||||||||||||||
Automobile | 238 | 2 | 2 | 2 | — | — | |||||||||||||||
Credit cards | 2,729 | 15 | 15 | — | — | — | |||||||||||||||
Other retail | 21 | — | — | — | — | — | |||||||||||||||
Total retail | 3,436 | 67 | 69 | 2,229 | 91 | 82 | |||||||||||||||
Total | 3,573 | $87 | $89 | 2,366 | $110 | $101 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(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 | — | — | (2 | ) | — | |||||||||||||||
Total commercial | 7 | 1 | 1 | (2 | ) | 1 | |||||||||||||||
Residential mortgages | 430 | 64 | 63 | 5 | 2 | ||||||||||||||||
Home equity loans | 995 | 57 | 51 | 2 | 5 | ||||||||||||||||
Home equity lines of credit | 771 | 53 | 46 | — | 16 | ||||||||||||||||
Home equity loans serviced by others (3) | 269 | 12 | 10 | — | 3 | ||||||||||||||||
Home equity lines of credit serviced by others (3) | 43 | 2 | 1 | — | 1 | ||||||||||||||||
Automobile | 1,323 | 13 | 10 | — | 3 | ||||||||||||||||
Student | 2,620 | 48 | 47 | — | — | ||||||||||||||||
Other retail | 148 | 3 | 3 | — | 1 | ||||||||||||||||
Total retail | 6,599 | 252 | 231 | 7 | 31 | ||||||||||||||||
Total | 6,606 | $253 | $232 | $5 | $32 | ||||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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 year ended December 31, 2012, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2012, and were paid off in full, charged off, or sold prior to December 31, 2012. | |||||||||||||||||||||
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 | 18 | $13 | $13 | 108 | $25 | $24 | |||||||||||||||
Commercial real estate | 4 | 9 | 9 | 6 | 14 | 13 | |||||||||||||||
Total commercial | 22 | 22 | 22 | 114 | 39 | 37 | |||||||||||||||
Residential mortgages | 346 | 77 | 80 | 36 | 4 | 5 | |||||||||||||||
Home equity loans | 218 | 18 | 19 | 48 | 4 | 5 | |||||||||||||||
Home equity lines of credit | 1 | — | — | 109 | 6 | 6 | |||||||||||||||
Home equity loans serviced by others (3) | 41 | 2 | 2 | 7 | 1 | — | |||||||||||||||
Home equity lines of credit serviced by others(3) | 3 | — | — | — | — | — | |||||||||||||||
Credit cards | 2,965 | 17 | 16 | — | — | — | |||||||||||||||
Total retail | 3,574 | 114 | 117 | 200 | 15 | 16 | |||||||||||||||
Total | 3,596 | $136 | $139 | 314 | $54 | $53 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change(5) to ALLL Resulting from Modification | Charge-offs Resulting from Modification | ||||||||||||||||
Commercial | 180 | $43 | $46 | ($29 | ) | $14 | |||||||||||||||
Commercial real estate | 16 | 72 | 74 | (26 | ) | 2 | |||||||||||||||
Total commercial | 196 | 115 | 120 | (55 | ) | 16 | |||||||||||||||
Residential mortgages | 2,331 | 203 | 195 | (4 | ) | 9 | |||||||||||||||
Home equity loans | 2,336 | 130 | 117 | (2 | ) | 14 | |||||||||||||||
Home equity lines of credit | 1,554 | 92 | 72 | — | 20 | ||||||||||||||||
Home equity loans serviced by others (3) | 1,192 | 50 | 37 | (8 | ) | 13 | |||||||||||||||
Home equity lines of credit serviced by others (3) | 322 | 17 | 13 | — | 4 | ||||||||||||||||
Automobile | 2,938 | 19 | 14 | (4 | ) | 4 | |||||||||||||||
Student | 7,557 | 139 | 138 | 3 | — | ||||||||||||||||
Credit cards | — | — | — | 2 | — | ||||||||||||||||
Other retail | 263 | 6 | 3 | — | 4 | ||||||||||||||||
Total retail | 18,493 | 656 | 589 | (13 | ) | 68 | |||||||||||||||
Total | 18,689 | $771 | $709 | ($68 | ) | $84 | |||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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. | |||||||||||||||||||||
(5) Retail data is estimated for certain loan classes. | |||||||||||||||||||||
The table below summarizes TDRs that defaulted during the years ended December 31, 2014, 2013 and 2012 within 12 months of their modification date. For purposes of this table, 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 December 31, 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. | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | |||||||||||||||
Commercial | 37 | $12 | 18 | $1 | 4 | $3 | |||||||||||||||
Commercial real estate | 3 | 1 | 3 | 1 | 1 | 5 | |||||||||||||||
Total commercial | 40 | 13 | 21 | 2 | 5 | 8 | |||||||||||||||
Residential mortgages | 301 | 35 | 526 | 60 | 208 | 35 | |||||||||||||||
Home equity loans | 329 | 24 | 740 | 43 | 318 | 31 | |||||||||||||||
Home equity lines of credit | 229 | 12 | 394 | 21 | 187 | 15 | |||||||||||||||
Home equity loans serviced by others (1) | 60 | 2 | 187 | 3 | 194 | 14 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 20 | — | 42 | 2 | 14 | 1 | |||||||||||||||
Automobile | 112 | 1 | 208 | 1 | 143 | 1 | |||||||||||||||
Student | 355 | 7 | 885 | 17 | — | — | |||||||||||||||
Credit cards | 579 | 3 | 548 | 3 | 628 | 4 | |||||||||||||||
Other retail | 12 | — | 33 | 1 | 8 | — | |||||||||||||||
Total retail | 1,997 | 84 | 3,563 | 151 | 1,700 | 101 | |||||||||||||||
Total | 2,037 | $97 | 3,584 | $153 | 1,705 | $109 | |||||||||||||||
(1) The Company's SBO portfolio consists of loans that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||
Most of the Company's business activity is with customers located in the New England, Mid-Atlantic and Midwest regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of December 31, 2014 and 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: | |||||||||||||||||||||
December 31, 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 | $773 | $1,743 | $1,025 | $— | $3,541 | ||||||||||||||||
Interest only/negative amortization | 894 | — | — | — | 894 | ||||||||||||||||
Low introductory rate | — | — | — | 98 | 98 | ||||||||||||||||
Multiple characteristics and other | 24 | — | — | — | 24 | ||||||||||||||||
Total | $1,691 | $1,743 | $1,025 | $98 | $4,557 | ||||||||||||||||
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 | ||||||||||||||||
PREMISES_EQUIPMENT_AND_SOFTWAR
PREMISES, EQUIPMENT, AND SOFTWARE | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
PREMISES, EQUIPMENT, AND SOFTWARE | PREMISES, EQUIPMENT AND SOFTWARE | |||||||||
A summary of the carrying value of premises and equipment follows: | ||||||||||
December 31, | ||||||||||
(dollars in millions) | Useful Lives | 2014 | 2013 | |||||||
Land and land improvements | 15 years | $26 | $33 | |||||||
Buildings and leasehold improvements | 7-40 years | 607 | 636 | |||||||
Furniture, fixtures and equipment | 5-15 years | 1,613 | 1,598 | |||||||
Total premises and equipment, gross | 2,246 | 2,267 | ||||||||
Less: accumulated depreciation | 1,651 | 1,675 | ||||||||
Total premises and equipment, net | $595 | $592 | ||||||||
The above table includes capital leases with book values of $46 million and $45 million and related accumulated depreciation of $22 million and $17 million as of December 31, 2014 and 2013, respectively. Depreciation charged to noninterest expense was $117 million, $138 million, and $163 million for the years ended December 31, 2014, 2013, and 2012, respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense. | ||||||||||
The Company entered into a sale-leaseback transaction during 2013, which includes an operating lease for a period of 10 years. There was a $15 million gain recorded in 2013 of which $14 million was deferred. There were no sale-leaseback transactions during 2014 and 2012. | ||||||||||
The Company had capitalized software assets, net of amortization, of $754 million and $729 million as of December 31, 2014 and 2013, respectively. Amortization expense was $145 million, $102 million, and $77 million for the years ended December 31, 2014, 2013, and 2012, respectively. Capitalized software assets are reported as a component of other assets in the Consolidated Balance Sheets. | ||||||||||
The estimated future amortization expense for capitalized software assets is as follows: | ||||||||||
Year | (in millions) | |||||||||
2015 | $127 | |||||||||
2016 | 110 | |||||||||
2017 | 93 | |||||||||
2018 | 72 | |||||||||
2019 | 41 | |||||||||
Thereafter | 130 | |||||||||
Total (1) | $573 | |||||||||
(1) Excluded from this balance is $181 million of in-process software at December 31, 2014. |
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases [Abstract] | ||||||||
LEASE COMMITMENTS | LEASE COMMITMENTS | |||||||
The Company is committed under long-term leases for the rental of premises and equipment. These leases have varying renewal options and require, in certain instances, the payment of insurance, real estate taxes and other operating expenses. | ||||||||
At December 31, 2014, the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are as follows for the years ended December 31: | ||||||||
(in millions) | Operating Leases | Capital Leases | ||||||
2015 | $162 | $8 | ||||||
2016 | 148 | 7 | ||||||
2017 | 124 | 6 | ||||||
2018 | 92 | 2 | ||||||
2019 | 59 | 1 | ||||||
Thereafter | 167 | 9 | ||||||
Total minimum lease payments | $752 | $33 | ||||||
Amounts representing interest | N/A | (9 | ) | |||||
Present value of net minimum lease payments | N/A | $24 | ||||||
Rental expense for such leases for the years ended December 31, 2014, 2013, and 2012 totaled $214 million, $224 million, and $203 million, respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense. |
GOODWILL
GOODWILL | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
GOODWILL | GOODWILL | |||||||||||
Goodwill represents the excess of fair value of purchased assets 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 years ended December 31, 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 December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at December 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at December 31, 2014 and 2013. The accumulated impairment losses related to the Commercial Banking unit totaled $50 million at December 31, 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 23 “Business Segments” for further information regarding segment reporting. No impairment was recorded in 2014 and 2012. | ||||||||||||
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 had demonstrated signs of recovery, notably improvements in unemployment and housing, the pace and extent of these indicators, as well as in overall GDP, lagged previous expectations. The impact of the slow recovery was 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, 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” for further information regarding the impairment test. |
MORTGAGE_BANKING
MORTGAGE BANKING | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Mortgage Banking [Abstract] | ||||||||||||
MORTGAGE BANKING | MORTGAGE BANKING | |||||||||||
In its mortgage banking business, the Company sells residential mortgages 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 $1.6 billion, $4.2 billion, and $5.4 billion of proceeds from the sale of residential mortgages for the years ended December 31, 2014, 2013 and 2012, respectively, and recognized gains on such sales of $36 million, $66 million, and $123 million for the years ended December 31, 2014, 2013 and 2012, respectively. Pursuant to the standard representations and warranties obligations discussed in the preceding paragraph, the Company repurchased mortgage loans totaling $25 million, $35 million, and $13 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Mortgage servicing fees, a component of mortgage banking income, were $59 million, $61 million, and $60 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company recorded valuation recoveries of $5 million and $47 million and an impairment of $12 million for its MSRs for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Changes related to MSRs were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
MSRs: | ||||||||||||
Balance as of January 1 | $208 | $215 | $215 | |||||||||
Amount capitalized | 17 | 45 | 67 | |||||||||
Amortization | (41 | ) | (52 | ) | (67 | ) | ||||||
Carrying amount before valuation allowance | 184 | 208 | 215 | |||||||||
Valuation allowance for servicing assets: | ||||||||||||
Balance as of January 1 | 23 | 70 | 58 | |||||||||
Valuation (recovery) impairment | (5 | ) | (47 | ) | 12 | |||||||
Balance at end of period | 18 | 23 | 70 | |||||||||
Net carrying value of MSRs | $166 | $185 | $145 | |||||||||
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, contractual servicing fee income, servicing costs, default rates, ancillary income, 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: | ||||||||||||
Year Ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | ||||||||||
Fair value | $179 | $195 | ||||||||||
Weighted average life (in years) | 5.2 | 5.4 | ||||||||||
Weighted average constant prepayment rate | 12.4 | % | 13 | % | ||||||||
Weighted average discount rate | 9.8 | % | 10.8 | % | ||||||||
The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted average life (in years) | 5.8 | 6 | 4 | |||||||||
Weighted average constant prepayment rate | 11.7 | % | 12.4 | % | 20.7 | % | ||||||
Weighted average discount rate | 10.3 | % | 10.5 | % | 10.5 | % | ||||||
The sensitivity analysis below as of December 31, 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. | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Prepayment rate: | ||||||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $9 | $9 | $11 | |||||||||
Decline in fair value from 100 basis points adverse change in interest rates | $15 | $18 | $18 | |||||||||
Weighted average discount rate: | ||||||||||||
Decline in fair value from 50 basis points adverse change | $3 | $3 | $2 | |||||||||
Decline in fair value from 100 basis points adverse change | $6 | $6 | $4 | |||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking and Thrift [Abstract] | ||||||||
DEPOSITS | DEPOSITS | |||||||
The major components of deposits are as follows: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Demand | $26,086 | $24,931 | ||||||
Checking with interest | 16,394 | 13,630 | ||||||
Regular savings | 7,824 | 7,509 | ||||||
Money market accounts | 33,345 | 31,245 | ||||||
Term deposits | 12,058 | 9,588 | ||||||
Total deposits | $95,707 | $86,903 | ||||||
Excluded from the table above are deposits totaling $5.3 billion, that were reclassified to deposits held for sale at December 31, 2013. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.” | ||||||||
The maturity distribution of term deposits as of December 31, 2014 is as follows: | ||||||||
Year | (in millions) | |||||||
2015 | $8,278 | |||||||
2016 | 2,796 | |||||||
2017 | 425 | |||||||
2018 | 427 | |||||||
2019 | 125 | |||||||
2020 and thereafter | 7 | |||||||
Total | $12,058 | |||||||
Of these deposits, the amount of term deposits with a denomination of $100,000 or more was $6.4 billion at December 31, 2014. The remaining maturities of these deposits are as follows: | ||||||||
(in millions) | ||||||||
Three months or less | $3,244 | |||||||
After three months through six months | 454 | |||||||
After six months through twelve months | 1,091 | |||||||
After twelve months | 1,572 | |||||||
Total term deposits | $6,361 | |||||||
BORROWED_FUNDS
BORROWED FUNDS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
BORROWED FUNDS | BORROWED FUNDS | |||||||||||
The following is a summary of the Company’s short-term borrowed funds: | ||||||||||||
December 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Federal funds purchased | $574 | $689 | ||||||||||
Securities sold under agreements to repurchase | 3,702 | 4,102 | ||||||||||
Other short-term borrowed funds | 6,253 | 2,251 | ||||||||||
Total short-term borrowed funds | $10,529 | $7,042 | ||||||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||||||
As of and for the Year Ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Weighted-average interest rate at year-end: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.14 | % | 0.09 | % | 0.1 | % | ||||||
Other short-term borrowed funds | 0.26 | 0.2 | 0.29 | |||||||||
Maximum amount outstanding at month-end during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $7,022 | $5,114 | $4,393 | |||||||||
Other short-term borrowed funds | 7,702 | 2,251 | 5,050 | |||||||||
Average amount outstanding during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,699 | $2,400 | $2,716 | |||||||||
Other short-term borrowed funds | 5,640 | 251 | 3,026 | |||||||||
Weighted-average interest rate during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.12 | % | 0.31 | % | 0.22 | % | ||||||
Other short-term borrowed funds | 0.25 | 0.44 | 0.33 | |||||||||
The following is a summary of the Company’s long-term borrowed funds: | ||||||||||||
December 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
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 | — | ||||||||||
4.082% fixed rate subordinated debt, due 2025 (1) | 334 | — | ||||||||||
Banking Subsidiaries: | ||||||||||||
1.600% senior unsecured notes, due 2017 (2) | 750 | — | ||||||||||
2.450% senior unsecured notes, due 2019 (2) (3) | 746 | — | ||||||||||
Federal Home Loan advances due through 2033 | 772 | 25 | ||||||||||
Other | 24 | 30 | ||||||||||
Total long-term borrowed funds | $4,642 | $1,405 | ||||||||||
(1) Intercompany borrowed funds with RBS Group. See Note 18 “Related Party Transactions” for further information. | ||||||||||||
(2) These securities were offered under CBNA's Global Bank Note Program dated December 1, 2014. | ||||||||||||
(3) $750 million principal balance of unsecured notes presented net of $4 million hedge of interest rate risk on medium term debt using interest rate swaps. See Note 15 “Derivatives” for further information. | ||||||||||||
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 $11.3 billion and $4.2 billion at December 31, 2014 and 2013, respectively. The Company’s available FHLB borrowing capacity was $3.5 billion and $8.2 billion at December 31, 2014 and 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 December 31, 2014, the Company’s unused secured borrowing capacity was approximately $26.3 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 December 31, 2014: | ||||||||||||
Year | (in millions) | |||||||||||
2015 or on demand | $— | |||||||||||
2016 | 755 | |||||||||||
2017 | 762 | |||||||||||
2018 | 11 | |||||||||||
2019 | 747 | |||||||||||
2020 and thereafter | 2,367 | |||||||||||
Total | $4,642 | |||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
STOCKHOLDERS EQUITY | STOCKHOLDERS' EQUITY |
Preferred Stock | |
As of December 31, 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 Company's Board of Directors (the “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 shares 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. | |
Treasury Stock | |
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 for 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. | |
As of December 31, 2014, the Company repurchased in the open market an additional 80,358 shares of common stock associated with share-based compensation plan activity for a total cost of $2 million at an average price per share of $25.03. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 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 five-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, the Company transferred $129 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 Company made a $1 million cash payment to RBS as a result of divesting the portion of the pension and other benefit plans associated with the Affiliates. | ||||||||||||||||||||||||||||||||||||
During 2012, the Company offered to vested former employees who had not yet retired a one-time opportunity to receive the value of future defined benefit pension payments as a single lump sum payment. In December 2012, the Company made lump sum payments of $196 million to former employees who accepted the offer, which resulted in a $240 million reduction of the defined benefit obligation and a $92 million settlement charge. | ||||||||||||||||||||||||||||||||||||
The qualified plan's allocation by asset category is as follows: | ||||||||||||||||||||||||||||||||||||
Target Asset Allocation | Actual Asset Allocation | |||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Equity securities | 45-55% | 49 | % | 52.6 | % | |||||||||||||||||||||||||||||||
Debt securities | 40-50% | 44.7 | % | 42.9 | % | |||||||||||||||||||||||||||||||
Other | 0-10% | 6.3 | % | 4.5 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
The written Pension Plan Investment Policy, set forth by the CFG Retirement Committee, formulates those investment principles and guidelines that are appropriate to the needs and objectives of the Plan, and defines the management, structure, and monitoring procedures adopted for the ongoing operation of the aggregate funds of the Plan. Stated goals and objectives are: | ||||||||||||||||||||||||||||||||||||
• | Total return, consistent with prudent investment management, is the primary goal of the Plan. The nominal rate of return objective should meet or exceed the actuarial rate return target. In addition, assets of the Plan shall be invested to ensure that principal is preserved and enhanced over time; | |||||||||||||||||||||||||||||||||||
• | The total return for the overall Plan shall meet or exceed the Plan’s Policy Index; | |||||||||||||||||||||||||||||||||||
• | Total portfolio risk exposure should generally rank in the mid-range of comparable funds. Risk-adjusted returns are expected to consistently rank in the top-half of comparable funds; and | |||||||||||||||||||||||||||||||||||
• | Investment managers shall exceed the return of the designated benchmark index and rank in the top-half of the appropriate asset class and style universe. | |||||||||||||||||||||||||||||||||||
The CFG Retirement Committee reviews, at least annually, the assets and net cash flow of the Plan, discusses the current economic outlook and the Plan’s investment strategy with the investment managers, reviews the current asset mix and its compliance with the Policy, and receives and considers statistics on the investment performance of the Plan. | ||||||||||||||||||||||||||||||||||||
The equity investment mandates follows a global equity approach. Investments are made in broadly diversified portfolios that contain investments in U.S. and non-U.S. developed and developing economies. The fixed income investment mandates are US investment grade mandates and follow a long duration investment approach. Investment in high-yield bonds are not allowed unless an investment grade bond is downgraded to a non-investment grade category. | ||||||||||||||||||||||||||||||||||||
The assets of the qualified plan may be invested in any or all of the following asset categories: | ||||||||||||||||||||||||||||||||||||
a) Equity-oriented investments: | ||||||||||||||||||||||||||||||||||||
• | domestic and foreign common and preferred stocks, and related rights, warrants, convertible debentures, and other common share equivalents | |||||||||||||||||||||||||||||||||||
b) Fixed income-oriented investments: | ||||||||||||||||||||||||||||||||||||
• | domestic and foreign bonds, debentures and notes | |||||||||||||||||||||||||||||||||||
• | mortgages | |||||||||||||||||||||||||||||||||||
• | mortgage-backed securities | |||||||||||||||||||||||||||||||||||
• | asset-backed securities | |||||||||||||||||||||||||||||||||||
• | money market securities or cash | |||||||||||||||||||||||||||||||||||
• | financial futures and options on financial futures | |||||||||||||||||||||||||||||||||||
• | forward contracts | |||||||||||||||||||||||||||||||||||
In addition, derivatives may be employed under the guidelines established for individual managers in order to manage risk exposures and/or to increase the efficiency of strategies. The extent to which derivatives will be utilized will be specified in the investment guidelines for each manager. The Plan will not be exposed to losses through derivatives that exceed the capital invested. | ||||||||||||||||||||||||||||||||||||
In selecting the expected long-term rate of return on assets, the Company considers the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of this Plan. This includes considering the trust’s asset allocation and the expected returns likely to be earned over the life of the Plan. This basis is consistent with the prior year. | ||||||||||||||||||||||||||||||||||||
Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are summarized as follows: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | |||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $1,031 | $998 | $1,106 | $— | $— | $— | ||||||||||||||||||||||||||||||
Actual return (loss) on plan assets | 98 | 111 | 142 | — | — | — | ||||||||||||||||||||||||||||||
Employer contributions | — | — | — | 9 | 8 | 8 | ||||||||||||||||||||||||||||||
Settlements | — | — | (196 | ) | — | — | — | |||||||||||||||||||||||||||||
Divestitures | (129 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Benefits and administrative expenses paid | (77 | ) | (78 | ) | (54 | ) | (9 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||
Fair value of plan assets as of December 31 | 923 | 1,031 | 998 | — | — | — | ||||||||||||||||||||||||||||||
Projected benefit obligation | 1,093 | 1,026 | 1,185 | 117 | 107 | 116 | ||||||||||||||||||||||||||||||
Pension asset (obligation) | ($170 | ) | $5 | ($187 | ) | ($117 | ) | ($107 | ) | ($116 | ) | |||||||||||||||||||||||||
Accumulated benefit obligation | $1,093 | $1,026 | $1,185 | $117 | $107 | $116 | ||||||||||||||||||||||||||||||
(1) December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
The Company’s share of the 2012 single lump sum payments to vested former employees described earlier in this Note for the qualified plan was $146 million as of December 31, 2012. | ||||||||||||||||||||||||||||||||||||
The pre-tax amounts recognized (for the qualified and non-qualified plans) in AOCI are as follows: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | |||||||||||||||||||||||||||||||||
Net prior service credit | $— | $— | ||||||||||||||||||||||||||||||||||
Net actuarial loss | 606 | 414 | ||||||||||||||||||||||||||||||||||
Total loss recognized in accumulated other comprehensive income | $606 | $414 | ||||||||||||||||||||||||||||||||||
(1) December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
Approximately $15 million of net actuarial loss recorded in AOCI as of December 31, 2014 is expected to be recognized as a component of net periodic benefit costs during 2015. | ||||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations (for the qualified and non-qualified plans) recognized in OCI include the following: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Net periodic pension (income) cost | ($8 | ) | ($3 | ) | $150 | |||||||||||||||||||||||||||||||
Net actuarial (gain) loss | 237 | (174 | ) | 169 | ||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | 1 | |||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | (10 | ) | (14 | ) | (38 | ) | ||||||||||||||||||||||||||||||
Settlement | — | — | (92 | ) | ||||||||||||||||||||||||||||||||
Divestiture | (35 | ) | — | — | ||||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | 192 | (188 | ) | 40 | ||||||||||||||||||||||||||||||||
Total recognized in net periodic pension cost and other comprehensive income | $184 | ($191 | ) | $190 | ||||||||||||||||||||||||||||||||
(1) Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
There were no settlements for the years ended December 31, 2014 and December 31, 2013. The Company’s share of the $92 million settlement was $77 million for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||
The following table presents the components of net periodic (income) cost for the Company's qualified and non-qualified plans: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | ||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $3 | $3 | $42 | $— | $— | $— | $3 | $3 | $42 | |||||||||||||||||||||||||||
Interest cost | 47 | 48 | 58 | 5 | 5 | 5 | 52 | 53 | 63 | |||||||||||||||||||||||||||
Expected return on plan assets | (73 | ) | (73 | ) | (84 | ) | — | — | — | (73 | ) | (73 | ) | (84 | ) | |||||||||||||||||||||
Amortization of actuarial loss | 9 | 13 | 35 | 1 | 1 | 3 | 10 | 14 | 38 | |||||||||||||||||||||||||||
Amortization of prior service cost | — | — | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||||
Settlement | $— | $— | $92 | $— | $— | $— | $— | $— | $92 | |||||||||||||||||||||||||||
Net periodic pension (income) cost | ($14 | ) | ($9 | ) | $142 | $6 | $6 | $8 | ($8 | ) | ($3 | ) | $150 | |||||||||||||||||||||||
(1) Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are as follows: | ||||||||||||||||||||||||||||||||||||
As of and for the | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Assumptions for benefit obligations | ||||||||||||||||||||||||||||||||||||
Discount rate--qualified plan | 4.125 | % | 5 | % | 4.125 | % | ||||||||||||||||||||||||||||||
Discount rate--non-qualified plan | 3.875 | % | 4.75 | % | 4 | % | ||||||||||||||||||||||||||||||
Compensation increase rate | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||||
Assumptions for net periodic pension cost | ||||||||||||||||||||||||||||||||||||
Discount rate--qualified plan | 5.00/4.25% | (1) | 4.125 | % | 5.25 | % | ||||||||||||||||||||||||||||||
Discount rate--non-qualified plan | 4.75/4.00% | (2) | 4 | % | 5 | % | ||||||||||||||||||||||||||||||
Compensation increases--qualified and non-qualified plans | N/A | N/A | 4.75 | % | ||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||||
(1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
(2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
The Company expects to contribute approximately $100 million to the qualified pension plan and $8 million to the non-qualified plan in 2015. | ||||||||||||||||||||||||||||||||||||
The following benefit payments for the qualified and non-qualified plans reflect expected future service, as appropriate, that are expected to be paid, are as follows: | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Expected benefit payments by fiscal year ended | ||||||||||||||||||||||||||||||||||||
31-Dec-15 | $63 | |||||||||||||||||||||||||||||||||||
31-Dec-16 | 64 | |||||||||||||||||||||||||||||||||||
31-Dec-17 | 64 | |||||||||||||||||||||||||||||||||||
31-Dec-18 | 65 | |||||||||||||||||||||||||||||||||||
31-Dec-19 | 66 | |||||||||||||||||||||||||||||||||||
December 31, 2020 - 2024 | 345 | |||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||
The following valuation techniques are used to measure the qualified pension plan assets at fair value: | ||||||||||||||||||||||||||||||||||||
Cash and money market funds: | ||||||||||||||||||||||||||||||||||||
Cash and money market funds represent instruments that generally mature in one year or less and are valued at cost, which approximates fair value. Cash and money market funds are classified as Level 2. | ||||||||||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||||||
Where observable quoted prices are available in an active market, mutual funds are classified as Level 1 in the fair value hierarchy. If quoted market prices are not available, mutual funds are classified as Level 2 because they currently trade in active markets and the Company expects all future purchases and sales to be valued at current net asset value. | ||||||||||||||||||||||||||||||||||||
Corporate bonds, municipal obligations, U.S. government obligations and Non-U.S. government obligations: | ||||||||||||||||||||||||||||||||||||
Corporate bonds, municipal obligations, U.S. government obligations and Non-U.S. government obligations are valued at the quoted market prices determined in the active markets in which the bonds are traded. If quoted market prices are not available, the fair value of the security is estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. These investments are classified as Level 2, because they currently trade in active markets for similar securities and the inputs to the valuations are observable. | ||||||||||||||||||||||||||||||||||||
Limited partnerships: | ||||||||||||||||||||||||||||||||||||
Limited partnerships are valued at estimated fair value based on their proportionate share of the limited partnerships’ fair value as recorded in the limited partnerships’ audited financial statements. The limited partnerships invest primarily in readily marketable securities. The limited partnerships allocate gains, losses and expenses to the partners based on ownership percentage as described in the partnership agreements. The instruments that can be transacted at the investment net asset value are classified as Level 2 because the Company expects all future purchases and sales to be valued at current net asset value. The instruments that cannot be transacted at the investment net asset value are classified as Level 3 investments. | ||||||||||||||||||||||||||||||||||||
Common collective funds: | ||||||||||||||||||||||||||||||||||||
The fair value is estimated using the net asset value received from the investment companies. The instruments that can be transacted at the investment net asset value are classified as Level 2 because the Company expects all future purchases to be valued at current net asset value. Instruments that cannot be transacted at the investment net asset value are classified as Level 3 investments. | ||||||||||||||||||||||||||||||||||||
Derivatives-Managed portfolio: | ||||||||||||||||||||||||||||||||||||
The managed portfolio invests in certain derivatives that are valued at the settlement price determined by the relevant exchange and are classified as Level 2 in the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||
The following tables present the qualified pension plan assets measured at fair value within the fair value hierarchy: | ||||||||||||||||||||||||||||||||||||
Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Cash and money market funds | $18 | $— | $18 | $— | ||||||||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||||||||||||
International equity funds | 24 | 24 | — | — | ||||||||||||||||||||||||||||||||
Income funds | 39 | — | 39 | — | ||||||||||||||||||||||||||||||||
Common and collective funds | ||||||||||||||||||||||||||||||||||||
Global equities common and collective funds | 241 | — | 241 | — | ||||||||||||||||||||||||||||||||
Fixed income common and collective funds | 305 | — | 305 | — | ||||||||||||||||||||||||||||||||
Managed portfolio | ||||||||||||||||||||||||||||||||||||
Cash and money market funds | (6 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||||||
Corporate bonds | 85 | — | 85 | — | ||||||||||||||||||||||||||||||||
Municipal obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
U.S. government obligations | 17 | — | 17 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
Derivative assets - credit default swaps | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Derivative liabilities - foreign currency futures | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Other | 14 | — | 14 | — | ||||||||||||||||||||||||||||||||
Limited partnerships | 183 | — | 183 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $923 | $24 | $899 | $— | ||||||||||||||||||||||||||||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Cash and money market funds | $8 | $— | $8 | $— | ||||||||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||||||||||||
International equity funds | 28 | 28 | — | — | ||||||||||||||||||||||||||||||||
Income funds | 43 | — | 43 | — | ||||||||||||||||||||||||||||||||
Common and collective funds | ||||||||||||||||||||||||||||||||||||
International equity common and collective funds | 115 | — | 115 | — | ||||||||||||||||||||||||||||||||
Balanced common and collective funds | 474 | — | 474 | — | ||||||||||||||||||||||||||||||||
Fixed income common and collective funds | 117 | — | 117 | — | ||||||||||||||||||||||||||||||||
Managed portfolio | ||||||||||||||||||||||||||||||||||||
Cash and money market funds | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||
Corporate bonds | 105 | — | 105 | — | ||||||||||||||||||||||||||||||||
Municipal obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
U.S. government obligations | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government obligations | 3 | — | 3 | — | ||||||||||||||||||||||||||||||||
Limited partnerships | 126 | — | 126 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $1,031 | $28 | $1,003 | $— | ||||||||||||||||||||||||||||||||
In keeping with the Plan’s fixed income strategic objectives, the December 31, 2013 holdings of the managed fund included exchange traded Eurodollar futures contracts with a notional value of $324 million and an unrealized gain (fair value) of under $1 million. | ||||||||||||||||||||||||||||||||||||
There were no transfers among Levels 1, 2 or 3 during the years ended December 31, 2014, 2013, and 2012. The fair values of participation units in the common and collective trusts are based on net asset value after adjustments to reflect all fund investments at fair value. The unfunded commitments, redemption frequency, and redemption notice period for those Plan investments that utilize net asset value to determine the fair value as of December 31, 2014 and 2013, are as follows: | ||||||||||||||||||||||||||||||||||||
Fair Value Estimated Using Net Asset Value per Share December 31, | ||||||||||||||||||||||||||||||||||||
Unfunded | Redemption | Redemption | Redemption | |||||||||||||||||||||||||||||||||
Investment (dollars in millions) | 2014 | 2013 | Commitment | Frequency | Restrictions | Notice Period | ||||||||||||||||||||||||||||||
Equity Mutual Fund(1) | $39 | $43 | $— | Daily | None | 1-7 days | ||||||||||||||||||||||||||||||
Common and Collective Funds: | ||||||||||||||||||||||||||||||||||||
International equity fund(2) | — | 115 | — | Monthly | None | 3 days | ||||||||||||||||||||||||||||||
Global equities funds(3) | 241 | — | — | Daily | None | 2-3 days | ||||||||||||||||||||||||||||||
Balanced funds(4) | — | 474 | — | Daily | None | 2-3 days | ||||||||||||||||||||||||||||||
Fixed income fund(5) | 305 | 117 | — | Daily | None | 3 days | ||||||||||||||||||||||||||||||
Limited Partnerships: | ||||||||||||||||||||||||||||||||||||
International equity fund(2) | 90 | — | — | Monthly | None | 3 days | ||||||||||||||||||||||||||||||
International equity(6) | 84 | 116 | — | Daily | None | 10 days | ||||||||||||||||||||||||||||||
Offshore feeder fund(7) | 9 | 10 | — | Daily | None | 1-14 days | ||||||||||||||||||||||||||||||
Total | $768 | $875 | $— | |||||||||||||||||||||||||||||||||
(1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. | ||||||||||||||||||||||||||||||||||||
(2) The international equity fund seeks medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. | ||||||||||||||||||||||||||||||||||||
(3) The global equities funds objective is to track the MSCI All Country World Index. | ||||||||||||||||||||||||||||||||||||
(4) The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. | ||||||||||||||||||||||||||||||||||||
(5) The fixed income fund seeks to outperform the Barclays US Long Corporate Bond Index or similar benchmark. | ||||||||||||||||||||||||||||||||||||
(6) The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. | ||||||||||||||||||||||||||||||||||||
(7) The offshore feeder fund operates under a “master/feeder” structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fund”). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5%. The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. | ||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||
The accumulated postretirement benefit obligation was $14 million and $27 million at December 31, 2014 and 2013, respectively. The funded status was a liability of $14 million and $27 million at December 31, 2014 and 2013, respectively, and is reported in other liabilities in the accompanying Consolidated Balance Sheets. The total gain recognized in OCI was $1 million and $367 thousand at December 31, 2014 and 2013, respectively. The Company contributed and paid benefits of $3 million, $3 million, and $2 million during 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||||||||||||||
The following benefit payments for the postretirement benefit plan reflect expected future service, as appropriate, that are expected to be paid, are as follows: | ||||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Expected benefit payments by fiscal year ended | ||||||||||||||||||||||||||||||||||||
31-Dec-15 | $1 | |||||||||||||||||||||||||||||||||||
31-Dec-16 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-17 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-18 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-19 | 1 | |||||||||||||||||||||||||||||||||||
December 31, 2020 - 2024 | 5 | |||||||||||||||||||||||||||||||||||
The Company expects to contribute approximately $1 million to the plan during 2015. | ||||||||||||||||||||||||||||||||||||
The weighted-average discount rate assumed in determining the actuarial present value of benefit obligations was 3.50% and 4.625% as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||||||
For measurement purposes, a 7.0% and 7.5% assumed annual rate of increase in the per capita cost of covered health care benefits was used for the years ended December 31, 2014 and 2013, respectively. This is expected to decrease gradually down to a 5% ultimate rate over the next several years. | ||||||||||||||||||||||||||||||||||||
Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: | ||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Discount rate | 4.625/3.875/3.75% | (1) | 3.875 | % | ||||||||||||||||||||||||||||||||
Rate of compensation increase | — | % | — | % | ||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 5 | % | 5 | % | ||||||||||||||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||||||
One percent increase | $— | $2 | ||||||||||||||||||||||||||||||||||
One percent decrease | — | (2 | ) | |||||||||||||||||||||||||||||||||
(1) 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.75% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
Postemployment Benefits | ||||||||||||||||||||||||||||||||||||
The Company provides postemployment benefits to certain former and inactive employees, primarily the Company’s long-term disability plan. Effective January 1, 2013, the Company required claimants receiving long-term disability benefits for 24 months to apply for Medicare approval so that Medicare is the primary payer of medical benefits. Benefit recorded for the years ended December 31, 2014, 2013, and 2012 were $1 million, $3 million, and $1 million, respectively. | ||||||||||||||||||||||||||||||||||||
401(k) Plan | ||||||||||||||||||||||||||||||||||||
The Company sponsors an employee tax-deferred 401(k) plan under which individual employee contributions to the plan are matched by the Company. Employees hired or rehired on or after January 1, 2009 receive an additional 3% of earnings, subject to limits set by the Internal Revenue Service. Effective January 1, 2013, contributions are matched at 100% up to an overall limitation of 5% on a pay period basis. Substantially all employees will receive an additional 2% of earnings, subject to limits set by the Internal Revenue Service. Effective January 1, 2015, the match was reduced from 5% to 4%. Amounts contributed by the Company for the years ended December 31, 2014, 2013, and 2012 were $60 million, $70 million, and $60 million, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||||||||
Total income tax expense (benefit) was as follows: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Income tax expense (benefit) | $403 | ($42 | ) | $381 | ||||||||||||||
Tax effect of changes in OCI | 154 | (194 | ) | 125 | ||||||||||||||
Total comprehensive income tax expense (benefit) | $557 | ($236 | ) | $506 | ||||||||||||||
Components of income tax expense (benefit) are as follows: | ||||||||||||||||||
(in millions) | Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
U.S. federal | $224 | $145 | $369 | |||||||||||||||
State and local | 38 | (4 | ) | 34 | ||||||||||||||
Total | $262 | $141 | $403 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
U.S. federal | $3 | ($47 | ) | ($44 | ) | |||||||||||||
State and local | 8 | (6 | ) | 2 | ||||||||||||||
Total | $11 | ($53 | ) | ($42 | ) | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
U.S. federal | $19 | $269 | $288 | |||||||||||||||
State and local | 56 | 37 | 93 | |||||||||||||||
Total | $75 | $306 | $381 | |||||||||||||||
The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2014, 2013 and 2012 as follows: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||
U.S. Federal income tax expense (benefit) and tax rate | $444 | 35 | % | ($1,214 | ) | 35 | % | $359 | 35 | % | ||||||||
Increase (decrease) resulting from: | ||||||||||||||||||
Goodwill impairment | — | — | 1,217 | (35.1 | ) | — | — | |||||||||||
State and local income taxes (net of federal benefit) | 22 | 1.7 | 1 | — | 61 | 5.9 | ||||||||||||
Bank-owned life insurance | (17 | ) | (1.3 | ) | (17 | ) | 0.5 | (18 | ) | (1.8 | ) | |||||||
Tax-exempt interest | (15 | ) | (1.2 | ) | (13 | ) | 0.4 | (12 | ) | (1.1 | ) | |||||||
Tax credits | (27 | ) | (2.1 | ) | (11 | ) | 0.3 | (8 | ) | (0.7 | ) | |||||||
Other | (4 | ) | (0.3 | ) | (5 | ) | 0.1 | (1 | ) | (0.1 | ) | |||||||
Total income tax expense (benefit) and tax rate | $403 | 31.8 | % | ($42 | ) | 1.2 | % | $381 | 37.2 | % | ||||||||
The tax rates for the years ended December 31, 2013 and 2012 reflected in the table above have been restated with one decimal place to conform to the Company's current year tax rate presentation. | ||||||||||||||||||
The increase in the effective tax rate from 2013 to 2014 was mainly due to the tax rate impact of the goodwill impairment charge taken in 2013. Goodwill not deductible for tax purposes accounted for 78.4% of the total goodwill impairment charge and generated a reduction of 35.1% in our effective tax rate for the year ended December 31, 2013. | ||||||||||||||||||
Additionally, the effective income tax rate will be affected in future periods by the impact of the adoption of Accounting Standard Update No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” We expect this change in accounting method to increase the 2015 effective income tax rate by approximately 2.4 percentage points; however this is not expected to have a material impact on the Company’s Consolidated Financial Statements. For further information, see Recent Accounting Pronouncements in Note 1 “Significant Accounting Policies.” | ||||||||||||||||||
The decrease in the effective tax rate from 2012 to 2013 represents the tax rate impact of the 2013 goodwill impairment in addition to the tax rate impact of a 2012 tax settlement. The state tax settlement represents 2.5% of the total tax rate for 2012 and is included in the rate reconciliation as a component of state and local income taxes (net of federal benefit). | ||||||||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: | ||||||||||||||||||
December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Other comprehensive income | $232 | $397 | ||||||||||||||||
Allowance for credit losses | 456 | 475 | ||||||||||||||||
Net operating loss carryforwards | 155 | 185 | ||||||||||||||||
Accrued expenses not currently deductible | 170 | 149 | ||||||||||||||||
Investment and other tax credit carryforwards | — | 62 | ||||||||||||||||
Deferred income | 45 | 35 | ||||||||||||||||
Fair value marks | 34 | 30 | ||||||||||||||||
Other | 1 | — | ||||||||||||||||
Total deferred tax assets | 1,093 | 1,333 | ||||||||||||||||
Valuation allowance | (157 | ) | (193 | ) | ||||||||||||||
Deferred tax assets, net of valuation allowance | 936 | 1,140 | ||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||
Leasing transactions | 825 | 811 | ||||||||||||||||
Amortization of intangibles | 380 | 296 | ||||||||||||||||
Depreciation | 164 | 124 | ||||||||||||||||
Pension and other employee compensation plans | 14 | 56 | ||||||||||||||||
MSRs | 46 | 50 | ||||||||||||||||
Other | — | 2 | ||||||||||||||||
Total deferred tax liabilities | 1,429 | 1,339 | ||||||||||||||||
Net deferred tax liability | $493 | $199 | ||||||||||||||||
Certain of the December 31, 2013 balances reflected in the table above were restated to conform to the current year presentation. The portion of the state net operating losses that management has determined will not be recognized, along with the associated valuation allowance, is now presented without any federal tax impact. | ||||||||||||||||||
At December 31, 2014, the Company had state tax net operating loss carryforwards of $2.0 billion. Limitations on the ability to realize these carryforwards are reflected in the associated valuation allowance. Additionally, it is planned that RBS Group will divest its remaining ownership interest in CFG by December 31, 2016. The change in ownership resulting from this divestiture will generate an annual limitation on the amount of carryforwards that can be utilized. These net operating losses will expire, if not utilized, in the years 2015 - 2034. | ||||||||||||||||||
At December 31, 2014, the Company had a valuation allowance of $157 million against the deferred tax assets related to certain state temporary differences and net operating losses, as it is management’s current assessment that it is more likely than not that the Company will not recognize a portion of the deferred tax asset related to these items. The valuation allowance decreased $36 million during the year ended December 31, 2014. | ||||||||||||||||||
Effective with the fiscal year ended September 30, 1997, the reserve method for bad debts was no longer permitted for tax purposes. The repeal of the reserve method required the recapture of the reserve balance in excess of certain base year reserve amounts attributable to years ended prior to 1988. At December 31, 2014, the Company’s base year loan loss reserves attributable to years ended prior to 1988, for which no deferred income taxes have been provided, was $557 million. This base year reserve may become taxable if certain distributions are made with respect to the stock of the Company or if the Company ceases to qualify as a bank for tax purposes. No actions are planned that would cause this reserve to become wholly or partially taxable. | ||||||||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by major tax authorities for years before 2010. | ||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||||
December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Balance at the beginning of the year, January 1 | $33 | $34 | $136 | |||||||||||||||
Gross increases for tax positions related to prior years | 60 | — | 29 | |||||||||||||||
Decreases for tax positions as a result of the lapse of the statute of limitations | (1 | ) | — | — | ||||||||||||||
Decreases for tax positions related to settlements with taxing authorities | (20 | ) | (1 | ) | (134 | ) | ||||||||||||
Gross increases for tax positions related to the current year | — | — | 3 | |||||||||||||||
Balance at end of year | $72 | $33 | $34 | |||||||||||||||
Included in the total amount of unrecognized tax benefits at December 31, 2014, are potential benefits of $49 million that, if recognized, would impact the effective tax rate. | ||||||||||||||||||
The Company classifies interest and penalties related to unrecognized tax benefits as a component of income taxes. The Company accrued $1 million, $2 million, and $14 million of interest expense through December 31, 2014, 2013, and 2012, respectively. The Company had approximately $15 million, $14 million, and $12 million accrued for the payment of interest at December 31, 2014, 2013, and 2012, respectively. There were no amounts accrued for penalties as of December 31, 2014, 2013, and 2012, and there were no penalties recognized during 2014, 2013, and 2012. | ||||||||||||||||||
It is anticipated that during 2015 the Company will enter into settlement agreements with certain state taxing authorities regarding its passive investment companies. Settlement of these uncertainties would reduce the unrecognized tax benefit by $61 million. During 2014, the Company settled nexus issues with various state taxing authorities for the years 2004 through 2013. Settlement of these uncertainties reduced the unrecognized tax benefit by $20 million. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 19 “Fair Value Measurements.” | ||||||||||||||||||||
The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: | ||||||||||||||||||||
December 31, 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 | $5,750 | $24 | $99 | $5,500 | $23 | $412 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 31,848 | 589 | 501 | 29,355 | 654 | 558 | ||||||||||||||
Foreign exchange contracts | 8,359 | 170 | 164 | 7,771 | 94 | 87 | ||||||||||||||
Other contracts | 730 | 7 | 9 | 569 | 7 | 10 | ||||||||||||||
Total derivatives not designated as hedging instruments | 766 | 674 | 755 | 655 | ||||||||||||||||
Gross derivative fair values | 790 | 773 | 778 | 1,067 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets (2) | (161 | ) | (161 | ) | (128 | ) | (128 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets (3) | $629 | $612 | $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 3 “Securities” 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 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. | ||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||
The Company has entered into an interest rate swap agreement to manage the interest rate exposure on its medium term fixed-rate borrowing. This agreement involves the receipt of fixed-rate amounts in exchange for floating-rate interest payments over the life of the agreement. The changes in fair value of the fair value hedges, to the extent that the hedging relationship is effective, are recorded through earnings and offset against changes in the fair value of the hedged item. | ||||||||||||||||||||
The following table summarizes certain information related to the Company’s fair value hedges: | ||||||||||||||||||||
The Effect of Fair Value Hedges on Net Income | ||||||||||||||||||||
Amounts Recognized in Other Income for the Year Ended December 31, 2014 | Amounts Recognized in Other Income for the Year Ended December 31, 2013 | |||||||||||||||||||
(in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||
Hedges of interest rate risk on borrowing using interest rate swaps | ($4) | $4 | $— | $— | $— | $— | ||||||||||||||
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 $17 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 | ||||||||||||||||||||
Amounts Recognized for the Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Effective portion of gain (loss) recognized in OCI (1) | $334 | ($59 | ) | ($42 | ) | |||||||||||||||
Amounts reclassified from OCI to interest income (2) | 72 | 56 | — | |||||||||||||||||
Amounts reclassified from OCI to interest expense (2) | (99 | ) | (235 | ) | (335 | ) | ||||||||||||||
Amounts reclassified from OCI to net gains (3) | — | (1 | ) | (1 | ) | |||||||||||||||
Ineffective portion of gain recognized in other income (4) | — | — | 1 | |||||||||||||||||
(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 net gains (losses) line item on the Consolidated Statements of Operations. | ||||||||||||||||||||
(4) This amount represents the net ineffectiveness recorded during the reporting periods presented plus any amounts excluded from effectiveness testing. These amounts are 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 | ||||||||||||||||||||
Amounts Recognized in Noninterest Income for the Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts (1) | $240 | $79 | $292 | |||||||||||||||||
Customer foreign exchange contracts (1) | (59 | ) | 18 | 10 | ||||||||||||||||
Residential loan commitments (3) | 6 | (7 | ) | 11 | ||||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) | (209 | ) | (30 | ) | (285 | ) | ||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) | 58 | (15 | ) | (10 | ) | |||||||||||||||
Forward sale contracts (3) | (3 | ) | 25 | 8 | ||||||||||||||||
Total | $33 | $70 | $26 | |||||||||||||||||
(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 | 12 Months Ended | |||||||
Dec. 31, 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. | ||||||||
In December 2014, the Company committed to purchasing pools of performing student loans with principal balances outstanding of approximately $260 million. The specific loans to be purchased were identified in January 2015 and the transactions were settled in January and February 2015. | ||||||||
In July 2014, the Company created a commercial loan trading desk to provide ongoing secondary market support and liquidity to its clients. Unsettled loan trades (i.e., loan purchase contracts) represent firm commitments to purchase loans from a third party at an agreed-upon price. Principal amounts associated with unsettled commercial loan trades will remain off-balance sheet, as delivery of the loans has not taken place. However fair value adjustments associated with each unsettled loan trade will be recognized on the Consolidated Balance Sheets and classified within other assets or other liabilities, depending on whether the fair value of the unsettled trade represents an unrealized gain or unrealized loss. The principal balance of unsettled commercial loan trades was $40 million at December 31, 2014. Settled loans purchased by the trading desk are classified as commercial loans held for sale on the Consolidated Balance Sheets. Refer to Note 19 “Fair Value Measurements” for further information. | ||||||||
In May 2014, the Company entered into an agreement to purchase automobile 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 year ended December 31, 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 December 31, 2014 and 2013 was $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 December 31, 2014 and 2013 is $19 million and $17 million, respectively. The current amount of credit exposure is spread out over 71 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 $2 million and none at December 31, 2013 and 2014, respectively. | ||||||||
The following is a summary of outstanding off-balance sheet arrangements: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,899 | $53,987 | ||||||
Financial standby letters of credit | 2,315 | 2,556 | ||||||
Performance letters of credit | 65 | 149 | ||||||
Commercial letters of credit | 75 | 64 | ||||||
Marketing rights | 51 | 54 | ||||||
Risk participation agreements | 19 | 17 | ||||||
Residential mortgage loans sold with recourse | 11 | 13 | ||||||
Total | $58,435 | $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 a regular and ongoing basis regarding various issues, and 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 and its subsidiaries. Based on information currently available, the advice of legal counsel and other advisers, 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 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 $8 million in restitution to affected customers, agreed to cease and desist any operations in violation of Section 5 of the Federal Trade Commission Act, and submit to the regulators periodic written progress reports regarding compliance with the Consent Orders. In addition, CBNA 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 CBNA 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, signature debit transactions and certain overdraft fees, 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. | ||||||||
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, but is unable to predict the outcome of 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, but is unable to predict the outcome of 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 December 31, 2014, the Company received approximately $158 million in repurchase demands and $99 million in indemnification payment requests in respect of loans originated, for the most part, since 2003. Of those claims presented, $88 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 $25 million and $35 million for the years ended December 31, 2014 and 2013, respectively. The Company incurred indemnification costs of $8 million and $12 million for the years ended December 31, 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. The volume of repurchase demands may increase. In addition to the above, the Company responded to subpoenas issued by the Office of the Inspector General for the Federal Housing Finance Agency in December 2013 which requested information about loans sold to FNMA and the FHLMC from 2003 through 2011. The Company is cooperating with the investigation. |
DIVESTITURES_AND_BRANCH_ASSETS
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE | 12 Months Ended | |||
Dec. 31, 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 | |||
On June 20, 2014, we completed the sale of certain assets and liabilities associated with our Chicago-area retail branches, small business relationships and select middle market relationships to U.S. Bancorp. The agreement to sell these assets and liabilities to U.S. Bancorp had previously been announced in January 2014. This sale included 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 year ended December 31, 2014, the corresponding interest and fees on these loans was $20 million and interest expense on deposits was $4 million. As a result of this transaction, the related assets and liabilities were classified as held for sale as of December 31, 2013. | ||||
The following table presents the assets and liabilities held for sale related to this transaction as of December 31, 2013: | ||||
(in millions) | ||||
Loans held for sale: | ||||
Commercial | $551 | |||
Commercial real estate | 49 | |||
Total commercial | 600 | |||
Home equity loans | 50 | |||
Home equity lines of credit | 339 | |||
Credit cards | 82 | |||
Other retail | 7 | |||
Total retail | 478 | |||
Total loans held for sale | 1,078 | |||
Other branch assets held for sale: | ||||
Properties and equipment, net | 46 | |||
Total other branch assets held for sale | 46 | |||
Total branch assets held for sale | $1,124 | |||
Deposits held for sale: | ||||
Demand | $1,020 | |||
Checking with interest | 849 | |||
Regular savings | 504 | |||
Money market accounts | 2,013 | |||
Term Deposits | 891 | |||
Total deposits held for sale | 5,277 | |||
Total branch liabilities held for sale | $5,277 | |||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS | ||||||||||||
The Company is an indirect subsidiary of RBSG. In September 2014, the Company entered into certain agreements with RBS Group that will provide a framework for its ongoing relationship with 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 were filed as exhibits in Part II, Item 6 — Exhibits to the Company's Quarterly Report on Form 10-Q/A filed November 14, 2014. | |||||||||||||
The following is a summary of inter-company borrowed funds: | |||||||||||||
December 31, | |||||||||||||
(dollars in millions) | Related Party | Interest Rate | Maturity Date | 2014 | 2013 | ||||||||
Subordinated debt | RBSG | 4.08% | Jan-25 | $334 | $— | ||||||||
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 $64 million, $16 million and $9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
During the fourth quarter of 2014, the Company purchased a portfolio of performing commercial loans to customers in the oil and gas industry from RBS. The Company paid $413 million, which was the estimated fair value corroborated by an independent appraiser, as of the purchase dates, to purchase 17 customer relationships with outstanding principal balances of $417 million and unfunded commitments totaling $458 million. Also related to these loans, the Company entered into offsetting customer derivative contracts with an aggregate notional amount of $946 million, and an aggregate fair value of ($17) thousand on the purchase dates. | |||||||||||||
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 year ended December 31, 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 December 31, 2014, the total notional amount of swaps outstanding was $5.8 billion with fixed rates ranging from 1.66% to 4.30%. Included in this balance were $4.0 billion of receive-fixed swaps with rates ranging from 1.78% to 2.04% maturing in 2023 and $1.0 billion of pay fixed swaps with fixed rates ranging from 4.18% to 4.30% maturing in 2016. The company also has a medium term swap agreement with a notional of $750 million and a receive-fixed rate of 1.66% that had been executed as of December 31, 2014. As of December 31, 2013, the total notional amount of swaps outstanding was $5.5 billion, with fixed rates ranging from 1.78% to 5.47%. Included in this balance were $1.5 billion of pay-fixed swaps with fixed rates ranging from 4.18% to 5.47% with maturities from 2014 through 2016 and $4.0 billion of receive-fixed swaps with fixed rates ranging from 1.78% to 2.04% maturing in 2023. The Company recorded net interest expense of $27 million, $146 million, and $311 million for the years ended December 31, 2014, 2013, and 2012, respectively. The lower pay-fixed swaps expense and higher interest income on the receive-fixed swaps resulted in lower expense in 2014 and 2013 compared to 2012. | |||||||||||||
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 $9.8 billion and $13.4 billion at December 31, 2014 and 2013, respectively. The Company recorded expense of $209 million, $32 million, and $285 million within other income for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
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 $4.7 billion and $4.6 billion at December 31, 2014 and 2013, respectively. Within foreign exchange and trade finance fees, the Company recorded income of $58 million for the year ended December 31, 2014 and expense of $15 million and $9 million for the years ended December 31, 2013 and 2012, 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 $16 million, $26 million, and $28 million for the years ended December 31, 2014, 2013, and 2012, respectively. Also, the Company receives certain services provided by RBS and by certain RBS entities the fees for which were recorded in outside services expense. Total outside services expense was $22 million, $20 million, and $21 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
In 2014 and 2013, the Company paid $666 million and $1.0 billion, respectively, of common stock dividends to RBS as part of exchange transactions. Additionally, the Company paid $124 million, $185 million and $150 million in regular common stock dividends to RBS for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
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 for 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. | |||||||||||||
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 December 31, 2014 and 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||
As discussed in Note 1 “Significant Accounting Policies,” 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: | ||||||||||||||||||||||||||||
December 31, 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 | $213 | $206 | $7 | $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 $5 million, ($33) million and $6 million for the years ended December 31, 2014, 2013 and 2012, 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: | ||||||||||||||||||||||||||||
December 31, 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 | $43 | $43 | $— | |||||||||||||||||||||||||
There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of December 31, 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 are 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. Unsettled trades within the commercial trading portfolio are not recognized on the Consolidated Balance Sheets and represent off-balance sheet commitments. Refer to Note 16 “Commitments and Contingencies” for further information. | ||||||||||||||||||||||||||||
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. Additionally, the Company recognized $1 million for the year ended December 31, 2014 in other noninterest income related to its commercial trading portfolio. | ||||||||||||||||||||||||||||
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 December 31, 2014: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,606 | $— | $18,606 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 18,656 | 23 | 18,633 | — | ||||||||||||||||||||||||
Residential loans held for sale | 213 | — | 213 | — | ||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale | 43 | — | 43 | — | ||||||||||||||||||||||||
Total loans held for sale | 256 | — | 256 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 613 | — | 613 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 170 | — | 170 | — | ||||||||||||||||||||||||
Other contracts | 7 | — | 7 | — | ||||||||||||||||||||||||
Total derivative assets | 790 | — | 790 | — | ||||||||||||||||||||||||
Venture capital investments and other investments | 5 | — | — | 5 | ||||||||||||||||||||||||
Total assets | $19,707 | $23 | $19,679 | $5 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $600 | $— | $600 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 164 | — | 164 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative liabilities | 773 | — | 773 | — | ||||||||||||||||||||||||
Total liabilities | $773 | $— | $773 | $— | ||||||||||||||||||||||||
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 and 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: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Balance as of January 1 | $5 | $6 | $57 | |||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | — | — | 1 | |||||||||||||||||||||||||
Sales | — | (4 | ) | (45 | ) | |||||||||||||||||||||||
Settlements | — | 3 | 23 | |||||||||||||||||||||||||
Other net gains (losses) | — | — | (30 | ) | ||||||||||||||||||||||||
Balance as of December 31 | $5 | $5 | $6 | |||||||||||||||||||||||||
Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 | $— | $— | ($11 | ) | ||||||||||||||||||||||||
There were no transfers among Levels 1, 2 or 3 during the year ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||
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 December 31, 2014, the fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life of 5.2 years (range of 2.8 - 6.6 years), weighted-average constant prepayment rate of 12.4% (range of 10.4% - 22.6%) and weighted-average discount rate of 9.8% (range of 9.1% - 12.1%). At December 31, 2013, the fair value was calculated using a discounted cash flow model, which used 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 1 “Significant Accounting Policies” and Note 9 “Mortgage Banking” for more information. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
For information on the Company’s goodwill impairment testing and the most recent goodwill impairment test, see Note 1 “Significant Accounting Policies” and Note 8 “Goodwill” for a description of the Company's goodwill valuation methodology. | ||||||||||||||||||||||||||||
The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Impaired collateral-dependent loans | ($101 | ) | ($83 | ) | ($101 | ) | ||||||||||||||||||||||
MSRs | 5 | 47 | (12 | ) | ||||||||||||||||||||||||
Foreclosed assets | (3 | ) | (4 | ) | (6 | ) | ||||||||||||||||||||||
Goodwill impairment (1) | — | (4,435 | ) | — | ||||||||||||||||||||||||
The following tables present assets and liabilities measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $102 | $— | $102 | $— | ||||||||||||||||||||||||
MSRs | 166 | — | — | 166 | ||||||||||||||||||||||||
Foreclosed assets | 40 | — | 40 | — | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $74 | $— | $74 | $— | ||||||||||||||||||||||||
MSRs | 185 | — | — | 185 | ||||||||||||||||||||||||
Foreclosed assets | 49 | — | 49 | — | ||||||||||||||||||||||||
Goodwill (1) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
(1) In the year ended December 31, 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 fair value of other investment securities, such as FHLB stock and FRB stock, is assumed to approximate the cost basis 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 Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | ||||||||||||||||||||||||||||
December 31, 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 | $93,410 | $93,674 | $— | $— | $102 | $102 | $93,308 | $93,572 | ||||||||||||||||||||
Other loans held for sale | 25 | 25 | — | — | — | — | 25 | 25 | ||||||||||||||||||||
Securities held to maturity | 5,148 | 5,193 | — | — | 5,148 | 5,193 | — | — | ||||||||||||||||||||
Other investment securities | 872 | 872 | — | — | 872 | 872 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 95,707 | 95,710 | — | — | 95,707 | 95,710 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,276 | — | — | 4,276 | 4,276 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 6,253 | 6,253 | — | — | 6,253 | 6,253 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 4,642 | 4,706 | — | — | 4,642 | 4,706 | — | — | ||||||||||||||||||||
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 | 12 Months Ended | |||||||||||||||||
Dec. 31, 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 the Company 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 Basel III capital framework effective January 1, 2015, 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); (3) common equity Tier 1 risk-based capital (common equity Tier 1 capital/risk-weighted on- and off-balance sheet assets); and 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 under the Basel I capital framework effective for the Company as of December 31, 2014: | ||||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well Capitalized | ||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||
Total capital to risk-weighted assets | $16,781 | 15.8 | % | $8,477 | 8 | % | $10,596 | 10 | % | |||||||||
Tier 1 capital to risk-weighted assets | 13,173 | 12.4 | 4,239 | 4 | 6,358 | 6 | ||||||||||||
Tier 1 capital to average assets (leverage) | 13,173 | 10.6 | 4,982 | 4 | 6,227 | 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 $790 million, $1.2 billion and $150 million as of December 31, 2014, 2013 and 2012, 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, CFG. This requirement will be in place through the fourth quarter of 2015. As of December 31, 2014, the unconsolidated BHC had liquid assets in excess of $340 million compared to an annual interest burden on existing subordinated debt of approximately $104 million on a non-consolidated basis. | ||||||||||||||||||
On March 13, 2014, the OCC determined that CBNA no longer meets the condition — namely that 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 itself. 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 insurance 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 addresses the deficiencies to the OCC's satisfaction, 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. The OCC Agreement provides that if CBNA fails to remediate the deficiencies 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 developed a plan to address the deficiencies and has implemented a comprehensive enterprise-wide program. |
EXIT_COSTS_AND_RESTRUCTURING_R
EXIT COSTS AND RESTRUCTURING RESERVES | 12 Months Ended | ||||||||||||
Dec. 31, 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 year ended December 31, 2014, the Company incurred $101 million of restructuring costs, consisting of $41 million of employee compensation reported in salaries and employee benefits, $18 million of facilities costs (including $6 million of building impairment) in occupancy, $24 million in outside services, $6 million in software expense reported in amortization of software, and $12 million in other operating expenses. | |||||||||||||
In 2014, as a result of the sale of retail branches located in Illinois (see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale” for further information), the Company incurred total costs of approximately $17 million for the year ended December 31, 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 in outside services and $7 million in other operating expenses. | |||||||||||||
In the year ended December 31, 2013, the Company reversed $5 million and recorded $31 million in noninterest expense for restructuring charges. The reversed restructuring charges consisted primarily of lease termination costs of $4 million and employee termination costs of $1 million. The recorded restructuring charges consisted primarily of employee termination costs of $6 million, lease termination costs of $15 million, fixed asset write-offs of $7 million, and $3 million of other costs. | |||||||||||||
For segment reporting, all of these restructuring costs are reported within Other. See Note 23 “Business Segments” 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 January 1, 2012 | $9 | $59 | $— | $68 | |||||||||
Additions | 2 | 1 | 4 | 7 | |||||||||
Reversals | (1 | ) | (11 | ) | — | (12 | ) | ||||||
Utilization | (7 | ) | (22 | ) | (4 | ) | (33 | ) | |||||
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 | 24 | 57 | 124 | |||||||||
Reversals | (1 | ) | (5 | ) | (4 | ) | (10 | ) | |||||
Utilization | (21 | ) | (25 | ) | (50 | ) | (96 | ) | |||||
Reserve balance as of December 31, 2014 | $23 | $18 | $3 | $44 | |||||||||
RECLASSIFICATIONS_OUT_OF_ACCUM
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
The following table presents the changes in the balances, net of income 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 January 1, 2012 | ($426 | ) | $251 | ($353 | ) | ($528 | ) | |||||||||||
Other comprehensive (loss) income before reclassifications | (26 | ) | 138 | — | 112 | |||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (38 | ) | — | (38 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 212 | (45 | ) | (25 | ) | 142 | ||||||||||||
Net other comprehensive income (loss) | 186 | 55 | (25 | ) | 216 | |||||||||||||
Balance at December 31, 2012 | (240 | ) | 306 | (378 | ) | (312 | ) | |||||||||||
Other comprehensive loss before reclassifications | (172 | ) | (285 | ) | — | (457 | ) | |||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (26 | ) | — | (26 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 114 | (86 | ) | 119 | 147 | |||||||||||||
Net other comprehensive (loss) income | (58 | ) | (397 | ) | 119 | (336 | ) | |||||||||||
Balance at December 31, 2013 | (298 | ) | (91 | ) | (259 | ) | (648 | ) | ||||||||||
Other comprehensive income before reclassifications | 212 | 198 | — | 410 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (22 | ) | — | (22 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 17 | (11 | ) | (118 | ) | (112 | ) | |||||||||||
Net other comprehensive income (loss) | 229 | 165 | (118 | ) | 276 | |||||||||||||
Balance at December 31, 2014 | ($69 | ) | $74 | ($377 | ) | ($372 | ) | |||||||||||
The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Details about AOCI Components | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $72 | $56 | $— | Interest income | ||||||||||||||
(99 | ) | (235 | ) | (335 | ) | Interest expense | ||||||||||||
— | (1 | ) | — | Other income | ||||||||||||||
(27 | ) | (180 | ) | (335 | ) | Income (loss) before income tax expense (benefit) | ||||||||||||
(10 | ) | (66 | ) | (123 | ) | Income tax expense (benefit) | ||||||||||||
($17 | ) | ($114 | ) | ($212 | ) | Net income (loss) | ||||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $28 | $144 | $95 | Securities gains, net | ||||||||||||||
(10 | ) | (8 | ) | (24 | ) | Net impairment losses recognized in earnings | ||||||||||||
18 | 136 | 71 | Income (loss) before income tax expense (benefit) | |||||||||||||||
7 | 50 | 26 | Income tax expense (benefit) | |||||||||||||||
$11 | $86 | $45 | Net income (loss) | |||||||||||||||
Reclassification of changes related to defined benefit pension plans: | $192 | ($190 | ) | $40 | Salaries and employee benefits | |||||||||||||
192 | (190 | ) | 40 | Income (loss) before income tax expense (benefit) | ||||||||||||||
74 | (71 | ) | 15 | Income tax expense (benefit) | ||||||||||||||
$118 | ($119 | ) | $25 | Net income (loss) | ||||||||||||||
Total reclassification gains (losses) | $112 | ($147 | ) | ($142 | ) | Net income (loss) | ||||||||||||
The following table presents the effects to net income of the amounts reclassified out of AOCI: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Net interest income (includes ($27), ($179) and ($335) of AOCI reclassifications, respectively) | $3,301 | $3,058 | $3,227 | |||||||||||||||
Provision for credit losses | 319 | 479 | 413 | |||||||||||||||
Noninterest income (includes $18, $135 and $71 of AOCI reclassifications, respectively) | 1,678 | 1,632 | 1,667 | |||||||||||||||
Noninterest expense (includes ($192), $190 and ($40) of AOCI reclassifications, respectively) | 3,392 | 7,679 | 3,457 | |||||||||||||||
Income (loss) before income tax expense (benefit) | 1,268 | (3,468 | ) | 1,024 | ||||||||||||||
Income tax expense (benefit) (includes $71, ($87) and $82 income tax net expense and (benefit) from reclassification items, respectively) | 403 | (42 | ) | 381 | ||||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS | |||||||||||||||
The Company is managed by its CEO on a segment 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 one or more segment heads who report 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, capital, revenues, provision for credit losses 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 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 industries. A key component of the Commercial Banking'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 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 Year Ended December 31, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $2,151 | $1,073 | $77 | $3,301 | ||||||||||||
Noninterest income | 899 | 429 | 350 | 1,678 | ||||||||||||
Total revenue | 3,050 | 1,502 | 427 | 4,979 | ||||||||||||
Noninterest expense | 2,513 | 652 | 227 | 3,392 | ||||||||||||
Profit before provision for credit losses | 537 | 850 | 200 | 1,587 | ||||||||||||
Provision for credit losses | 259 | (6 | ) | 66 | 319 | |||||||||||
Income before income tax expense | 278 | 856 | 134 | 1,268 | ||||||||||||
Income tax expense | 96 | 295 | 12 | 403 | ||||||||||||
Net income | $182 | $561 | $122 | $865 | ||||||||||||
Total Average Assets | $48,939 | $38,483 | $40,202 | $127,624 | ||||||||||||
As of and for the Year Ended December 31, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $2,176 | $1,031 | ($149 | ) | $3,058 | |||||||||||
Noninterest income | 1,025 | 389 | 218 | 1,632 | ||||||||||||
Total revenue | 3,201 | 1,420 | 69 | 4,690 | ||||||||||||
Noninterest expense | 2,522 | 635 | 4,522 | 7,679 | ||||||||||||
Profit (loss) before provision for credit losses | 679 | 785 | (4,453 | ) | (2,989 | ) | ||||||||||
Provision for credit losses | 308 | (7 | ) | 178 | 479 | |||||||||||
Income (loss) before income tax expense (benefit) | 371 | 792 | (4,631 | ) | (3,468 | ) | ||||||||||
Income tax expense (benefit) | 129 | 278 | (449 | ) | (42 | ) | ||||||||||
Net income (loss) | $242 | $514 | ($4,182 | ) | ($3,426 | ) | ||||||||||
Total Average Assets | $46,465 | $35,229 | $39,172 | $120,866 | ||||||||||||
As of and for the Year Ended December 31, 2012 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $2,197 | $1,036 | ($6 | ) | $3,227 | |||||||||||
Noninterest income | 1,187 | 349 | 131 | 1,667 | ||||||||||||
Total revenue | 3,384 | 1,385 | 125 | 4,894 | ||||||||||||
Noninterest expense | 2,691 | 625 | 141 | 3,457 | ||||||||||||
Profit (loss) before provision for credit losses | 693 | 760 | (16 | ) | 1,437 | |||||||||||
Provision for credit losses | 408 | 63 | (58 | ) | 413 | |||||||||||
Income before income tax expense | 285 | 697 | 42 | 1,024 | ||||||||||||
Income tax expense | 100 | 244 | 37 | 381 | ||||||||||||
Net income | $185 | $453 | $5 | $643 | ||||||||||||
Total Average Assets | $47,824 | $33,474 | $46,368 | $127,666 | ||||||||||||
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 | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 share-based compensation awards to employees of the Company pursuant to its various long-term incentive plans, which are administered by the RBS Group Performance and Remuneration Committee. Below is a summary of those awards. All share-based compensation awards granted to Company employees have been historically settled in RBSG shares. Effective as of the IPO, no share-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 RBS Group Performance and Remuneration Committee. | |||||||||||||||||||||
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 IPO, 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 IPO and the bond portion of special IPO awards were converted into equity-based awards in respect of CFG 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 CFG common stock. Following the IPO, no additional awards were granted under the Converted Equity Plans. | |||||||||||||||||||||
The number of shares of CFG 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 IPO 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 IPO (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 CFG common stock on the pricing date of the IPO. The bond portion of the special IPO awards was converted by dividing the bond value by the price per share of CFG common stock on the pricing date of the IPO. During 2014, the Company converted 19,390,752 RBSG share awards to 5,249,721 CFG share awards. The difference between the fair value of RBSG restricted share units immediately preceding the conversion and the fair value of the CFG equity-based awards granted was not material. The bond portions of the Special IPO awards were converted to 524,783 CFG share awards. | |||||||||||||||||||||
Employee Share Plans Following the IPO | |||||||||||||||||||||
Omnibus Incentive Plan | |||||||||||||||||||||
In connection with the IPO, the Company adopted the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”). This plan permits the Company to grant a variety of awards to employees and service providers. In 2014, certain employees received share grants under this plan as an element of fixed compensation for service in a “Material Risk Taker” role (as defined by the European Banking Authority). These shares were fully vested at grant, but are subject to a retention period which lapses ratably over three to five years. The Company has also granted time-based restricted stock units under this plan. If a dividend is paid on shares underlying the restricted 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 stockholders generally. | |||||||||||||||||||||
Director Compensation Plan | |||||||||||||||||||||
In connection with the IPO, the Company adopted the 2014 Non-Employee Directors Compensation Plan (the “Directors Plan”). Effective upon the closing of the IPO, 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 stockholders 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 stockholders 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 IPO, 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 CFG 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. The first purchase of 103,247 shares under the ESPP was on December 31, 2014. | |||||||||||||||||||||
Summary of Share-Based Plans Activity | |||||||||||||||||||||
The following tables summarize the activity related to our share-based plans (excluding the ESPP): | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
RBS Share Awards | Shares Underlying Awards | Weighted Average Grant Price | Shares Underlying Awards | Weighted Average Grant Price | Shares Underlying Awards | Weighted Average Grant Price | |||||||||||||||
Nonvested, January 1 | 19,778,967 | $5.31 | 22,865,810 | $6.14 | 23,490,759 | $6.49 | |||||||||||||||
Granted | 9,627,635 | 5.48 | 6,363,919 | 4.66 | 9,477,611 | 4.41 | |||||||||||||||
Vested | (6,040,806 | ) | 6.14 | (4,208,789 | ) | 6.68 | (8,379,848 | ) | 5.22 | ||||||||||||
Forfeited | (3,975,044 | ) | 6.73 | (5,241,973 | ) | 7.03 | (1,722,712 | ) | 5.93 | ||||||||||||
Conversion to CFG Shares | (19,390,752 | ) | 4.84 | — | — | — | — | ||||||||||||||
Nonvested, December 31 | — | $— | 19,778,967 | $5.31 | 22,865,810 | $6.14 | |||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
CFG Share Awards | Shares | Weighted Average Grant Price | |||||||||||||||||||
Underlying Awards | |||||||||||||||||||||
Nonvested, January 1 | — | $— | |||||||||||||||||||
Conversion to CFG Shares | 5,774,504 | 21.5 | |||||||||||||||||||
Granted | 209,099 | 24.87 | |||||||||||||||||||
Vested | (161,067 | ) | 25.07 | ||||||||||||||||||
Forfeited | (226,654 | ) | 21.5 | ||||||||||||||||||
Nonvested, December 31 | 5,595,882 | $21.52 | |||||||||||||||||||
Approximately 61 million shares of Company common stock are available for awards to be granted under our employee share plans. Upon vesting, the Company generally issues new shares, but may also issue shares from treasury stock. | |||||||||||||||||||||
Compensation Expense | |||||||||||||||||||||
Compensation expense related to the above share-based plans was $53 million, $27 million, and $29 million for the years ended December 31, 2014, 2013, and 2012, respectively. At December 31, 2014, the total unrecognized compensation expense for nonvested equity awards granted was $31 million. This expense is expected to be recognized over a weighted-average period of two years. No share-based compensation costs were capitalized during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
The income tax benefit recognized in earnings based on the compensation expense recognized for all share-based compensation arrangements amounted to $17 million in 2014. The excess of actual tax deductions over amounts assumed, which are recognized in stockholders’ equity, were insignificant in 2013 and 2012. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions, except share and per-share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator (basic and diluted): | |||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | |||||||||
Less: Preferred stock dividends | — | — | — | ||||||||||
Net income (loss) available to common stockholders | $865 | ($3,426 | ) | $643 | |||||||||
Denominator: | |||||||||||||
Weighted-average common shares outstanding - basic | 556,674,146 | 559,998,324 | 559,998,324 | ||||||||||
Dilutive common shares: share-based awards | 1,050,790 | — | — | ||||||||||
Weighted-average common shares outstanding - diluted | 557,724,936 | 559,998,324 | 559,998,324 | ||||||||||
Earnings (loss) per common share: | |||||||||||||
Basic | $1.55 | ($6.12 | ) | $1.15 | |||||||||
Diluted | 1.55 | (6.12 | ) | 1.15 | |||||||||
Basic EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income/(loss) available to common stockholders 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. | |||||||||||||
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. |
PARENT_COMPANY_ONLY_FINANCIALS
PARENT COMPANY ONLY FINANCIALS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
PARENT COMPANY ONLY FINANCIALS | PARENT COMPANY ONLY FINANCIALS | |||||||||||
CFG Parent Company | ||||||||||||
Condensed Statements of Operations | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
OPERATING INCOME: | ||||||||||||
Income from bank subsidiaries and associated banks, excluding equity in undistributed income: | ||||||||||||
Dividends | $595 | $210 | $175 | |||||||||
Interest | 29 | 13 | 13 | |||||||||
Management and service fees | 21 | 26 | 42 | |||||||||
Securities gains | — | — | 1 | |||||||||
All other operating income | 5 | 2 | 4 | |||||||||
Total operating income | 650 | 251 | 235 | |||||||||
OPERATING EXPENSE: | ||||||||||||
Salaries and employee benefits | 63 | 38 | 52 | |||||||||
Interest expense | 80 | 24 | 4 | |||||||||
All other expenses | 123 | 43 | 39 | |||||||||
Total operating expense | 266 | 105 | 95 | |||||||||
Income before taxes and undistributed income | 384 | 146 | 140 | |||||||||
Applicable income taxes | (77 | ) | (22 | ) | (9 | ) | ||||||
Income before undistributed income of subsidiaries and associated companies | 461 | 168 | 149 | |||||||||
Equity in undistributed income (losses) of subsidiaries and associated companies: | ||||||||||||
Bank | 402 | (3,595 | ) | 501 | ||||||||
Nonbank | 2 | 1 | (7 | ) | ||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||
Other comprehensive income (loss), net of income taxes: | ||||||||||||
Net pension plan activity arising during the period | $8 | $17 | ($7 | ) | ||||||||
Net unrealized derivative instrument gains arising during the period | — | 1 | — | |||||||||
Net unrealized securities gains arising during the period | 1 | — | — | |||||||||
Other comprehensive income (loss) activity of the Parent Company Only, net of income taxes | 9 | 18 | (7 | ) | ||||||||
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | 267 | (354 | ) | 223 | ||||||||
Total other comprehensive income (loss), net of income taxes | 276 | (336 | ) | 216 | ||||||||
Total comprehensive income (loss) | $1,141 | ($3,762 | ) | $859 | ||||||||
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 total common stock dividends of $806 million in 2014, $1.2 billion in 2013, and $150 million in 2012. | ||||||||||||
CFG Parent Company | ||||||||||||
Condensed Balance Sheets | ||||||||||||
(in millions) | December 31, 2014 | December 31, 2013 | ||||||||||
ASSETS: | ||||||||||||
Cash and due from banks | $280 | $494 | ||||||||||
Loans and advances to: | ||||||||||||
Bank subsidiaries | 1,685 | 459 | ||||||||||
Related bank holding companies | — | 1 | ||||||||||
Investments in subsidiaries: | ||||||||||||
Bank subsidiaries | 19,512 | 19,522 | ||||||||||
Nonbank subsidiaries | 72 | 73 | ||||||||||
Other assets | 214 | 178 | ||||||||||
TOTAL ASSETS | $21,763 | $20,727 | ||||||||||
LIABILITIES: | ||||||||||||
Long-term debt due to: | ||||||||||||
Unaffiliated companies | $350 | $350 | ||||||||||
Related bank holding companies | 2,000 | 1,000 | ||||||||||
Balances due to related bank holding companies | 2 | — | ||||||||||
Other liabilities | 143 | 181 | ||||||||||
TOTAL LIABILITIES | 2,495 | 1,531 | ||||||||||
TOTAL STOCKHOLDERS' EQUITY | 19,268 | 19,196 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $21,763 | $20,727 | ||||||||||
CFG Parent Company | ||||||||||||
Condensed Cash Flow Statements | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Deferred income taxes | 27 | (11 | ) | (12 | ) | |||||||
Gain on sales of assets | — | — | (1 | ) | ||||||||
Equity in undistributed (earnings) losses of subsidiaries | (404 | ) | 3,594 | (494 | ) | |||||||
Net change in other liabilities | 18 | 7 | 47 | |||||||||
Net change in other assets | (74 | ) | 15 | (20 | ) | |||||||
Other operating, net | 17 | 1 | (2 | ) | ||||||||
Total adjustments | (416 | ) | 3,606 | (482 | ) | |||||||
Net cash provided by operating activities | 449 | 180 | 161 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Proceeds from sales and maturities of securities available for sale | — | — | 3 | |||||||||
Payments for investments in and advances to subsidiaries | (1,470 | ) | (220 | ) | (800 | ) | ||||||
Sale or repayment of investments in and advances to subsidiaries | 945 | 315 | 1,164 | |||||||||
Other investing, net | (11 | ) | (1 | ) | (1 | ) | ||||||
Net cash (used) provided by investing activities | (536 | ) | 94 | 366 | ||||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from advances from subsidiaries | — | — | 5 | |||||||||
Repayment of advances from subsidiaries | — | (289 | ) | (239 | ) | |||||||
Proceeds from issuance of long-term debt | 1,000 | 1,000 | 350 | |||||||||
Proceeds from issuance of common stock | 13 | — | — | |||||||||
Repurchase of common stock | (334 | ) | — | — | ||||||||
Dividends paid | (806 | ) | (1,185 | ) | (150 | ) | ||||||
Net cash used by financing activities | (127 | ) | (474 | ) | (34 | ) | ||||||
Net (decrease) increase in cash and due from banks | (214 | ) | (200 | ) | 493 | |||||||
Cash and due from banks at beginning of year | 494 | 694 | 201 | |||||||||
Cash and due from banks at end of year | $280 | $494 | $694 | |||||||||
OTHER_OPERATING_EXPENSE
OTHER OPERATING EXPENSE | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
OTHER OPERATING EXPENSE | OTHER OPERATING EXPENSE | |||||||||||
The following table presents the details of other operating expense: | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Deposit insurance | $95 | $85 | $98 | |||||||||
Promotional expense | 86 | 76 | 86 | |||||||||
Settlements and operating losses | 89 | 51 | 58 | |||||||||
Postage and delivery | 48 | 60 | 196 | |||||||||
Other | 255 | 256 | 271 | |||||||||
Other operating expense | $573 | $528 | $709 | |||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
The Company has evaluated the impacts of events that have occurred subsequent to December 31, 2014 through the date the Consolidated Financial Statements were filed with the SEC. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the Consolidated Financial Statements and related Notes, other than that on February 19, 2015, the Company paid a quarterly dividend on our common shares of $0.10 per share, or $55 million, to stockholders of record on February 5, 2015. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements for a variable interest entity to be consolidated. | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the provision for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. | ||
Interest-Bearing Deposits in Banks | Interest-Bearing Deposits in Banks | |
Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. | ||
Securities | Securities | |
Investments in debt and equity securities are carried in four portfolios: AFS, HTM, trading account assets and other investment securities. Management determines the appropriate classification at the time of purchase. | ||
Securities in the AFS portfolio will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy. Gains and losses on the sales of securities are recognized in earnings and are computed using the specific identification method. Security impairments (i.e., declines in the fair value of securities below cost) that are considered by management to be other-than-temporary are recognized in earnings as realized losses. However, the determination of the impairment amount is dependent on the Company’s intent to sell (or not sell) the security. If the Company intends to sell the impaired security, the impairment loss recognized in current period earnings equals the difference between the instrument’s fair value and amortized cost. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, only the credit-related impairment loss is recognized in current period earnings and this amount equals the difference between the amortized cost of the security and the present value of the expected cash flows that have currently been projected. | ||
Securities AFS are carried at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Premiums and discounts on debt securities are amortized or accreted using a level-yield method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. | ||
Securities are classified as HTM because the Company has the ability and intent to hold the securities to maturity. Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in OCI and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. The securities are reported at cost and adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. | ||
Trading account assets are comprised of debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are carried at fair value. Realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. | ||
Other investment securities are comprised mainly of FHLB stock and FRB stock (which are carried at cost) and venture capital investments (which are carried at fair value, with changes in fair value recognized in noninterest income). For securities that are not publicly traded, estimates of fair value are made based upon review of the investee’s financial results, condition and prospects. Other investment securities, which are carried at cost, are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. | ||
Loans and Leases | Loans and Leases | |
Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts (on purchased loans). Deferred loan origination fees and costs and purchase discounts and premiums are amortized as an adjustment of yield over the life of the loan, using the level-yield interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. | ||
Leases are classified at the inception of the lease. Lease receivables, including leveraged leases, are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, including unamortized investment credits. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against noninterest income. Leveraged leases are reported net of non-recourse debt. Unearned income is recognized to yield a level rate of return on the net investment in the leases. | ||
Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. | ||
Loans held for sale (including those loans associated with the Chicago Divestiture) are carried at the lower of cost or fair value. Loans accounted for under the fair value option (including those loans associated with our mortgage banking business and secondary loan trading desk) are carried at fair value. | ||
Allowance for Credit Losses | Allowance for Credit Losses | |
Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience, and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. The ALLL is maintained at a level that management considers to be reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the allowance. While management uses available information to estimate loan and lease losses, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. | ||
The evaluation of the adequacy of the commercial, commercial real estate, and lease allowance for loan and lease losses and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses and forward loss curve ratios. | ||
For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default, and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location, delinquency status, and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans, and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can used to support management overlays if deemed necessary. | ||
For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. | ||
For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows, compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. | ||
The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, base versus stress losses, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. | ||
In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. | ||
The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the ALLL and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. | ||
Commercial loans and leases are charged off to the allowance when there is little prospect of collecting either principal or interest. Charge-offs of commercial loans and leases usually involve receipt of borrower-specific adverse information. For commercial collateral-dependent loans, an appraisal or other valuation is used to quantify a shortfall between the fair value of the collateral less costs to sell and the recorded investment in the commercial loan. Retail loan charge-offs are generally based on established delinquency thresholds rather than borrower-specific adverse information. When a loan is collateral-dependent, any shortfalls between the fair value of the collateral less costs to sell and the recorded investment is promptly charged off. Placing any loan or lease on nonaccrual status does not by itself require a partial or total charge-off; however, any identified losses are charged off at that time. | ||
Nonperforming Loans and Leases | Nonperforming Loans and Leases | |
Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and it’s reasonably assured that the loan or lease will be brought fully current within a reasonable period. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. | ||
Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent. Residential mortgages are returned to accrual status when principal and interest payments become less than 120 days past due and when future payments are reasonably assured. Credit card balances are placed on nonaccrual status when past due 90 days or more. Credit card balances are restored to accruing status if they subsequently become less than 90 days past due. Guaranteed student loans are not placed on nonaccrual status. | ||
All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Loans are generally returned to accrual status if the loan becomes less than 15 days past due. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. | ||
Impaired Loans | Impaired Loans | |
A loan is considered to be impaired when it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogenous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. A loan modification is identified as a TDR when the Company or bankruptcy court grants the borrower a concession the Company would not otherwise make, in response to the borrower’s financial difficulties. 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 loans with risk similar to that of the restructured loan. Additionally, TDRs for commercial loans 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. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. | ||
Impairment evaluations are performed at the individual loan level, and consider expected future cash flows from the loan, including, if appropriate, the realizable value of collateral. Impaired loans which are not TDRs are nonaccruing, and loans involved in TDRs may be accruing or nonaccruing. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. | ||
Loans are generally restored to accrual status when principal and interest payments are brought current and when future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan’s contractual terms. | ||
Premises and Equipment | Premises and Equipment | |
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. | ||
Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. | ||
Software | Software | |
Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. | ||
Fair Value | Fair Value | |
The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. | ||
A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, private equity investments, and derivative instruments. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: | ||
• | Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
• | Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. | |
• | Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. | |
Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Level 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. | ||
The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. | ||
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans, and goodwill. | ||
Goodwill | Goodwill | |
Goodwill is the purchase premium associated with the acquisition of a business. It is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. | ||
Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. | ||
The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible assets as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | ||
The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the current discount rate, as well as projected loan loss, income tax and capital retention rates. | ||
Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. | ||
The Company bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. | ||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | |
Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers and selected employees of the Company. | ||
Employee Benefits | Employee Benefits | |
Pension costs under defined benefit plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The cost of postretirement and postemployment benefits other than pensions is recognized on an accrual basis during the periods employees provide services to earn those benefits. | ||
Share-Based Compensation | Share-Based Compensation | |
The Company sponsors various stock award plans under which restricted stock units are granted periodically to employees. The Company recognizes compensation expense related to stock awards based upon the fair value of the awards which is the closing price of CFG common stock on the date of the grant, adjusted for expected forfeiting. The related expense is charged to earnings over the requisite service period (e.g., vesting period). Additionally, the Company estimates the number of awards for which it is probable that service will be rendered based upon historical data to estimate employee attrition and adjusts compensation cost accordingly. Estimated forfeitures are subsequently adjusted to reflect actual shares that have vested. | ||
Derivatives | Derivatives | |
The Company is party to a variety of derivative transactions, including interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, forward sale contracts, warrants and purchase options. The Company enters into contracts in order to meet the financing needs of its customers. The Company also enters into contracts as a means of reducing its interest rate and foreign currency risks, and these contracts are designated as hedges when acquired, based on management’s intent. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. | ||
All derivatives, whether designated for hedging relationships or not, are recognized in the Consolidated Balance Sheets at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI, a component of stockholders’ equity. The ineffective portions of cash flow hedges are immediately recognized as an adjustment to income or expense. For cash flow hedging relationships that have been discontinued, balances in OCI are reclassified to interest expense in the periods during which the hedged item affects income. If it is probable that the hedged forecasted transaction will not occur, balances in OCI are reclassified immediately to income. If a derivative is designated as a fair value hedge, gains or losses attributable to the change in fair value of the derivative instrument, as well as the gains and losses attributable to the change in fair value of the hedged item, are recognized in other noninterest income in the period in which the change in fair value occurs. Hedge ineffectiveness is recognized as other noninterest income to the extent the changes in fair value of the derivative do not offset the changes in fair value of the hedged item. Changes in the fair value of derivatives that do not qualify as hedges are recognized immediately in earnings. | ||
Derivative assets and derivative liabilities governed by master netting agreements are netted by counterparty on the balance sheet, and this netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a CSA. | ||
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets | |
A transfer of financial assets is accounted for as a sale when control over the assets transferred is surrendered. Assets transferred that satisfy the conditions of a sale are derecognized, and all assets obtained and liabilities incurred in a purchase are recognized and measured at fair value. Servicing rights retained in the transfer of financial assets are initially recognized at fair value. Subsequent to the initial recognition date, the Company recognizes periodic amortization expense of servicing rights and assesses servicing rights for impairment. | ||
Mortgage Banking | Mortgage Banking | |
Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking fees. | ||
MSRs are presented in the Consolidated Balance Sheets net of accumulated amortization, which is recorded in proportion to, and over the period of, net servicing income. The Company’s identification of MSRs in a single class is determined based on the availability of market inputs and the Company’s method of managing MSR risks. For the purpose of evaluating impairment, MSRs are stratified based on predominant risk characteristics (such as interest rate, loan size, origination date, term, or geographic location) of the underlying loans. An allowance is then established in the event the recorded value of an individual stratum exceeds fair value. | ||
The Company accounts for derivatives in its mortgage banking operations at fair value on the balance sheet as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. | ||
Income Taxes | Income Taxes | |
The Company uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes. This results in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the bases of assets and liabilities, as measured by tax laws, and their bases, as reported in the Consolidated Financial Statements. | ||
Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. | ||
The Company also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. | ||
Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. | ||
Treasury Stock | Treasury Stock | |
The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on the first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable. | ||
Revenue Recognition | Revenue Recognition | |
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. | ||
Interest income on loans and securities classified as AFS or HTM is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan or security, to provide a constant rate of return over the terms of the financial assets. Securities classified as trading account assets, and other financial assets accounted for using the fair value option, are measured at fair value with corresponding changes recognized in noninterest income. | ||
Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate on the loan. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. | ||
Other types of noninterest revenues, such as service charges on deposits, interchange income on credit cards and trust revenues, are accrued and recognized into income as services are provided and the amount of fees earned are reasonably determinable. | ||
Earnings Per Share | Earnings Per Share | |
Basic EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income/(loss) available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as call options, share-based payment awards, and warrants using the treasury stock method. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In November 2014, the FASB issued Accounting Standards Update No. 2014-17, “Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)”. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. The amendments, which were effective on November 18, 2014 did not have a material impact on the Company’s Consolidated Financial Statements. | ||
In November 2014, the FASB issued Accounting Standards Update No. 2014-16, “Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity”. The ASU applies to certain classes of shares that include features that entitle the holders to preferences and rights (such as conversion rights, redemption rights, voting powers, and liquidation and dividend payment preferences) over the other shareholders. The amendments require all reporting entities that are issuers of (or investors in) such hybrid financial instruments to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances. The amendment is effective for annual periods beginning after December 15, 2015, and interim periods thereafter, and is not expected to have a material impact on the Company’s Consolidated Financial Statements. | ||
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. It is not expected to have a material impact on the Company’s 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 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 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 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 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 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. It is not expected to have a material impact on the Company’s 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 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. Management expects this amendment to unfavorably impact the 2015 effective income tax rate by approximately 2.4%, however this is not expected to have a material impact on the Company’s Consolidated Financial Statements. See Note 14 “Income Taxes” for further information. |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 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: | ||||||||||||||||||||||||||
December 31, 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 | 17,683 | 301 | (50 | ) | 17,934 | 14,970 | 151 | (128 | ) | 14,993 | |||||||||||||||||
Other/non-agency | 703 | 4 | (35 | ) | 672 | 992 | 5 | (45 | ) | 952 | |||||||||||||||||
Total mortgage-backed securities | 18,386 | 305 | (85 | ) | 18,606 | 15,962 | 156 | (173 | ) | 15,945 | |||||||||||||||||
Total debt securities available for sale | 18,411 | 305 | (85 | ) | 18,631 | 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 | $18,433 | $308 | ($85 | ) | $18,656 | $16,010 | $159 | ($174 | ) | $15,995 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,728 | $22 | ($31 | ) | $3,719 | $2,940 | $— | ($33 | ) | $2,907 | |||||||||||||||||
Other/non-agency | 1,420 | 54 | — | 1,474 | 1,375 | — | (25 | ) | 1,350 | ||||||||||||||||||
Total securities held to maturity | $5,148 | $76 | ($31 | ) | $5,193 | $4,315 | $— | ($58 | ) | $4,257 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $477 | $— | $— | $477 | $462 | $— | $— | $462 | |||||||||||||||||||
Federal Home Loan Bank stock | 390 | — | — | 390 | 468 | — | — | 468 | |||||||||||||||||||
Venture capital and other investments | 5 | — | — | 5 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $872 | $— | $— | $872 | $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: | ||||||||||||||||||||||||||
December 31, 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 | ||||||||||||||||||
State and political subdivisions | — | $— | $— | 1 | $10 | $— | 1 | $10 | $— | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 75 | 3,282 | (24 | ) | 52 | 1,766 | (57 | ) | 127 | 5,048 | (81 | ) | |||||||||||||||
Other/non-agency | 6 | 80 | (2 | ) | 17 | 397 | (33 | ) | 23 | 477 | (35 | ) | |||||||||||||||
Total mortgage-backed securities | 81 | 3,362 | (26 | ) | 69 | 2,163 | (90 | ) | 150 | 5,525 | (116 | ) | |||||||||||||||
Total | 81 | $3,362 | ($26 | ) | 70 | $2,173 | ($90 | ) | 151 | $5,535 | ($116 | ) | |||||||||||||||
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: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cumulative balance at beginning of period | $56 | $55 | $38 | ||||||||||||||||||||||||
Credit impairments recognized in earnings on securities not previously impaired | — | — | 1 | ||||||||||||||||||||||||
Credit impairments recognized in earnings on securities that have been previously impaired | 10 | 8 | 23 | ||||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (4 | ) | (7 | ) | (7 | ) | |||||||||||||||||||||
Cumulative balance at end of period | $62 | $56 | $55 | ||||||||||||||||||||||||
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities at December 31, 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 | 2 | 53 | 2,318 | 15,310 | 17,683 | ||||||||||||||||||||||
Other/non-agency | — | 51 | 57 | 595 | 703 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 104 | 2,375 | 15,915 | 18,411 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,728 | 3,728 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,420 | 1,420 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,148 | 5,148 | ||||||||||||||||||||||
Total amortized cost of debt securities | $17 | $104 | $2,375 | $21,063 | $23,559 | ||||||||||||||||||||||
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 | 2 | 56 | 2,333 | 15,543 | 17,934 | ||||||||||||||||||||||
Other/non-agency | — | 52 | 58 | 562 | 672 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 108 | 2,391 | 16,115 | 18,631 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,719 | 3,719 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,474 | 1,474 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,193 | 5,193 | ||||||||||||||||||||||
Total fair value of debt securities | $17 | $108 | $2,391 | $21,308 | $23,824 | ||||||||||||||||||||||
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: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Taxable | $619 | $477 | $618 | ||||||||||||||||||||||||
Non-taxable | — | — | 2 | ||||||||||||||||||||||||
Interest-bearing cash and due from banks and deposits in banks | 5 | 11 | 4 | ||||||||||||||||||||||||
Total interest income from investment securities | $624 | $488 | $624 | ||||||||||||||||||||||||
Realized gains and losses on AFS securities are shown below: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Gains on sale of debt securities | $33 | $144 | $93 | ||||||||||||||||||||||||
Losses on sale of debt securities | (5 | ) | — | — | |||||||||||||||||||||||
Gains on sale of marketable equity securities | — | — | 2 | ||||||||||||||||||||||||
Total | $28 | $144 | $95 | ||||||||||||||||||||||||
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are shown below: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $3,650 | $3,701 | $5,016 | $4,998 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,355 | 1,407 | 1 | 1 | |||||||||||||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,453 | 3,520 | 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: | ||||||||||||||||||||||||||
December 31, 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 | (2,600 | ) | — | (2,600 | ) | (3,000 | ) | — | (3,000 | ) | |||||||||||||||||
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of loans and leases | A summary of the loans and leases portfolio follows: | |||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Commercial | $31,431 | $28,667 | ||||||
Commercial real estate | 7,809 | 6,948 | ||||||
Leases | 3,986 | 3,780 | ||||||
Total commercial | 43,226 | 39,395 | ||||||
Residential mortgages | 11,832 | 9,726 | ||||||
Home equity loans | 3,424 | 4,301 | ||||||
Home equity lines of credit | 15,423 | 15,667 | ||||||
Home equity loans serviced by others (1) | 1,228 | 1,492 | ||||||
Home equity lines of credit serviced by others (1) | 550 | 679 | ||||||
Automobile | 12,706 | 9,397 | ||||||
Student | 2,256 | 2,208 | ||||||
Credit cards | 1,693 | 1,691 | ||||||
Other retail | 1,072 | 1,303 | ||||||
Total retail | 50,184 | 46,464 | ||||||
Total loans and leases (2) (3) | $93,410 | $85,859 | ||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | ||||||||
(2) Excluded from the table above are loans held for sale totaling $281 million as of December 31, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Chicago Divestiture. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.” | ||||||||
(3) Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively. | ||||||||
Schedule of commercial financing receivables | A summary of the investment in leases, before the allowance for lease losses, is as follows: | |||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Direct financing leases | $3,873 | $3,668 | ||||||
Leveraged leases | 113 | 112 | ||||||
Total leases | $3,986 | $3,780 | ||||||
The components of the investment in leases, before the allowance for lease losses, are as follows: | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Total future minimum lease rentals | $3,324 | $3,252 | ||||||
Estimated residual value of leased equipment (non-guaranteed) | 1,059 | 968 | ||||||
Initial direct costs | 22 | 20 | ||||||
Unearned income on minimum lease rentals and estimated residual value of leased equipment | (419 | ) | (460 | ) | ||||
Total leases | $3,986 | $3,780 | ||||||
Schedule of future minimum rental payments receivable | At December 31, 2014, the future minimum lease rentals on direct financing and leveraged leases are as follows: | |||||||
Year Ended December 31, | (in millions) | |||||||
2015 | $699 | |||||||
2016 | 615 | |||||||
2017 | 497 | |||||||
2018 | 444 | |||||||
2019 | 347 | |||||||
Thereafter | 722 | |||||||
Total | $3,324 | |||||||
ALLOWANCE_FOR_CREDIT_LOSSES_NO1
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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: | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
(in millions) | Commercial | Retail | Total | ||||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | ||||||||||||||||||
Charge-offs | (43 | ) | (450 | ) | (493 | ) | |||||||||||||||
Recoveries | 58 | 112 | 170 | ||||||||||||||||||
Net recoveries (charge-offs) | 15 | (338 | ) | (323 | ) | ||||||||||||||||
Provision charged to income | 31 | 266 | 297 | ||||||||||||||||||
Allowance for loan and lease losses as of December 31, 2014 | 544 | 651 | 1,195 | ||||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | ||||||||||||||||||
Provision for unfunded lending commitments | 22 | — | 22 | ||||||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2014 | 61 | — | 61 | ||||||||||||||||||
Total allowance for credit losses as of December 31, 2014 | $605 | $651 | $1,256 | ||||||||||||||||||
Year Ended December 31, 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 | (108 | ) | (595 | ) | — | (703 | ) | ||||||||||||||
Recoveries | 87 | 115 | — | 202 | |||||||||||||||||
Net charge-offs | (21 | ) | (480 | ) | — | (501 | ) | ||||||||||||||
Sales/Other | (6 | ) | (6 | ) | (1 | ) | (13 | ) | |||||||||||||
Provision charged to income | (19 | ) | 396 | 103 | 480 | ||||||||||||||||
Transfer of unallocated reserve to qualitative reserve | 35 | 60 | (95 | ) | — | ||||||||||||||||
Loss emergence period change | — | 96 | (96 | ) | — | ||||||||||||||||
Allowance for loan and lease losses as of December 31, 2013 | 498 | 723 | — | 1,221 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2013 | 40 | — | — | 40 | |||||||||||||||||
Credit for unfunded lending commitments | (1 | ) | — | — | (1 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2013 | 39 | — | — | 39 | |||||||||||||||||
Total allowance for credit losses as of December 31, 2013 | $537 | $723 | $— | $1,260 | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
(in millions) | Commercial | Retail | Unallocated | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2012 | $691 | $816 | $191 | $1,698 | |||||||||||||||||
Charge-offs | (257 | ) | (853 | ) | — | (1,110 | ) | ||||||||||||||
Recoveries | 113 | 122 | — | 235 | |||||||||||||||||
Net charge-offs | (144 | ) | (731 | ) | — | (875 | ) | ||||||||||||||
Sales/Other | (2 | ) | — | — | (2 | ) | |||||||||||||||
Provision charged to income | (36 | ) | 572 | (102 | ) | 434 | |||||||||||||||
Allowance for loan and lease losses as of December 31, 2012 | 509 | 657 | 89 | 1,255 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2012 | 61 | — | — | 61 | |||||||||||||||||
Credit for unfunded lending commitments | (21 | ) | — | — | (21 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of December 31, 2012 | 40 | — | — | 40 | |||||||||||||||||
Total allowance for credit losses as of December 31, 2012 | $549 | $657 | $89 | $1,295 | |||||||||||||||||
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: | ||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||
Individually evaluated | $205 | $1,208 | $1,413 | $239 | $1,200 | $1,439 | |||||||||||||||
Formula-based evaluation | 43,021 | 48,976 | 91,997 | 39,156 | 45,264 | 84,420 | |||||||||||||||
Total | $43,226 | $50,184 | $93,410 | $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: | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | |||||||||||||||
Individually evaluated | $20 | $109 | $129 | $23 | $108 | $131 | |||||||||||||||
Formula-based evaluation | 585 | 542 | 1,127 | 514 | 615 | 1,129 | |||||||||||||||
Allowance for credit losses | $605 | $651 | $1,256 | $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: | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Criticized | |||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial | $30,022 | $876 | $427 | $106 | $31,431 | ||||||||||||||||
Commercial real estate | 7,354 | 329 | 61 | 65 | 7,809 | ||||||||||||||||
Leases | 3,924 | 12 | 50 | — | 3,986 | ||||||||||||||||
Total | $41,300 | $1,217 | $538 | $171 | $43,226 | ||||||||||||||||
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: | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||
Residential mortgages | $11,352 | $114 | $97 | $269 | $11,832 | ||||||||||||||||
Home equity loans | 2,997 | 222 | 60 | 145 | 3,424 | ||||||||||||||||
Home equity lines of credit | 14,705 | 447 | 73 | 198 | 15,423 | ||||||||||||||||
Home equity loans serviced by others (1) | 1,101 | 78 | 26 | 23 | 1,228 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 455 | 66 | 10 | 19 | 550 | ||||||||||||||||
Automobile | 11,839 | 758 | 93 | 16 | 12,706 | ||||||||||||||||
Student | 2,106 | 108 | 25 | 17 | 2,256 | ||||||||||||||||
Credit cards | 1,615 | 39 | 22 | 17 | 1,693 | ||||||||||||||||
Other retail | 985 | 65 | 18 | 4 | 1,072 | ||||||||||||||||
Total | $47,155 | $1,897 | $424 | $708 | $50,184 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||
Residential mortgages | $9,236 | $114 | $115 | $261 | $9,726 | ||||||||||||||||
Home equity loans | 3,808 | 257 | 68 | 168 | 4,301 | ||||||||||||||||
Home equity lines of credit | 14,868 | 490 | 76 | 233 | 15,667 | ||||||||||||||||
Home equity loans serviced by others (1) | 1,340 | 84 | 32 | 36 | 1,492 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 561 | 83 | 11 | 24 | 679 | ||||||||||||||||
Automobile | 8,863 | 481 | 44 | 9 | 9,397 | ||||||||||||||||
Student | 2,012 | 118 | 45 | 33 | 2,208 | ||||||||||||||||
Credit cards | 1,581 | 67 | 22 | 21 | 1,691 | ||||||||||||||||
Other retail | 1,205 | 69 | 22 | 7 | 1,303 | ||||||||||||||||
Total | $43,474 | $1,763 | $435 | $792 | $46,464 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Schedule of nonperforming loans and leases by class | A summary of nonperforming loans and leases by class is as follows: | ||||||||||||||||||||
December 31, 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 | $113 | $1 | $114 | $96 | $— | $96 | |||||||||||||||
Commercial real estate | 50 | — | 50 | 169 | — | 169 | |||||||||||||||
Leases | — | — | — | — | — | — | |||||||||||||||
Total commercial | 163 | 1 | 164 | 265 | — | 265 | |||||||||||||||
Residential mortgages | 345 | — | 345 | 382 | — | 382 | |||||||||||||||
Home equity loans | 203 | — | 203 | 266 | — | 266 | |||||||||||||||
Home equity lines of credit | 257 | — | 257 | 333 | — | 333 | |||||||||||||||
Home equity loans serviced by others (1) | 47 | — | 47 | 59 | — | 59 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 25 | — | 25 | 30 | — | 30 | |||||||||||||||
Automobile | 21 | — | 21 | 16 | — | 16 | |||||||||||||||
Student | 11 | 6 | 17 | 3 | 31 | 34 | |||||||||||||||
Credit cards | 16 | 1 | 17 | 19 | 2 | 21 | |||||||||||||||
Other retail | 5 | — | 5 | 10 | — | 10 | |||||||||||||||
Total retail | 930 | 7 | 937 | 1,118 | 33 | 1,151 | |||||||||||||||
Total | $1,093 | $8 | $1,101 | $1,383 | $33 | $1,416 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Schedule of nonperforming assets | A summary of other nonperforming assets is as follows: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in millions) | 2014 | 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: | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.18 | % | 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 | 1.18 | 1.65 | |||||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.13 | 0.23 | |||||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.73 | 0.97 | |||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.86 | % | 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): | ||||||||||||||||||||
December 31, 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 | $57 | $114 | $171 | $61 | $96 | $157 | |||||||||||||||
Commercial real estate | 26 | 50 | 76 | 34 | 169 | 203 | |||||||||||||||
Leases | 3 | — | 3 | 24 | — | 24 | |||||||||||||||
Total commercial | 86 | 164 | 250 | 119 | 265 | 384 | |||||||||||||||
Residential mortgages | 97 | 269 | 366 | 115 | 261 | 376 | |||||||||||||||
Home equity loans | 60 | 145 | 205 | 68 | 168 | 236 | |||||||||||||||
Home equity lines of credit | 73 | 198 | 271 | 76 | 233 | 309 | |||||||||||||||
Home equity loans serviced by others (1) | 26 | 23 | 49 | 32 | 36 | 68 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 10 | 19 | 29 | 11 | 24 | 35 | |||||||||||||||
Automobile | 93 | 16 | 109 | 44 | 9 | 53 | |||||||||||||||
Student | 25 | 17 | 42 | 45 | 33 | 78 | |||||||||||||||
Credit cards | 22 | 17 | 39 | 22 | 21 | 43 | |||||||||||||||
Other retail | 18 | 4 | 22 | 22 | 7 | 29 | |||||||||||||||
Total retail | 424 | 708 | 1,132 | 435 | 792 | 1,227 | |||||||||||||||
Total | $510 | $872 | $1,382 | $554 | $1,057 | $1,611 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Schedule of impaired loans by class | The following is a summary of impaired loan information by class: | ||||||||||||||||||||
December 31, 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 | $124 | $19 | $36 | $178 | $160 | ||||||||||||||||
Commercial real estate | 7 | 1 | 38 | 62 | 45 | ||||||||||||||||
Total commercial | 131 | 20 | 74 | 240 | 205 | ||||||||||||||||
Residential mortgages | 157 | 18 | 288 | 605 | 445 | ||||||||||||||||
Home equity loans | 129 | 11 | 141 | 335 | 270 | ||||||||||||||||
Home equity lines of credit | 75 | 3 | 86 | 193 | 161 | ||||||||||||||||
Home equity loans serviced by others (1) | 75 | 9 | 16 | 102 | 91 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 4 | 1 | 7 | 14 | 11 | ||||||||||||||||
Automobile | 2 | 1 | 9 | 16 | 11 | ||||||||||||||||
Student | 167 | 48 | — | 167 | 167 | ||||||||||||||||
Credit cards | 32 | 13 | — | 32 | 32 | ||||||||||||||||
Other retail | 17 | 5 | 3 | 23 | 20 | ||||||||||||||||
Total retail | 658 | 109 | 550 | 1,487 | 1,208 | ||||||||||||||||
Total | $789 | $129 | $624 | $1,727 | $1,413 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
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 mortgages | 174 | 42 | 267 | 588 | 441 | ||||||||||||||||
Home equity loans | 104 | 17 | 143 | 301 | 247 | ||||||||||||||||
Home equity lines of credit | 77 | — | 87 | 192 | 164 | ||||||||||||||||
Home equity loans serviced by others (1) | 86 | 10 | 14 | 110 | 100 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 5 | 1 | 7 | 15 | 12 | ||||||||||||||||
Automobile | 2 | — | 8 | 15 | 10 | ||||||||||||||||
Student | 159 | 21 | — | 159 | 159 | ||||||||||||||||
Credit cards | 42 | 14 | — | 42 | 42 | ||||||||||||||||
Other retail | 21 | 3 | 4 | 28 | 25 | ||||||||||||||||
Total retail | 670 | 108 | 530 | 1,450 | 1,200 | ||||||||||||||||
Total | $832 | $131 | $607 | $1,885 | $1,439 | ||||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Schedule of additional information on impaired loans | Additional information on impaired loans is as follows: | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | |||||||||||||||
Commercial | $9 | $198 | $1 | $157 | $1 | $276 | |||||||||||||||
Commercial real estate | 2 | 98 | 1 | 149 | 1 | 310 | |||||||||||||||
Total commercial | 11 | 296 | 2 | 306 | 2 | 586 | |||||||||||||||
Residential mortgages | 14 | 429 | 7 | 419 | 4 | 236 | |||||||||||||||
Home equity loans | 8 | 246 | 5 | 228 | 2 | 200 | |||||||||||||||
Home equity lines of credit | 4 | 149 | 2 | 90 | — | 38 | |||||||||||||||
Home equity loans serviced by others (1) | 5 | 91 | 5 | 102 | 6 | 118 | |||||||||||||||
Home equity lines of credit serviced by others (1) | — | 11 | — | 12 | — | 9 | |||||||||||||||
Automobile | — | 7 | — | 8 | — | 5 | |||||||||||||||
Student | 8 | 153 | 7 | 140 | — | 11 | |||||||||||||||
Credit cards | 2 | 31 | 3 | 41 | — | — | |||||||||||||||
Other retail | 1 | 21 | 1 | 25 | 1 | 28 | |||||||||||||||
Total retail | 42 | 1,138 | 30 | 1,065 | 13 | 645 | |||||||||||||||
Total | $53 | $1,434 | $32 | $1,371 | $15 | $1,231 | |||||||||||||||
(1) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Troubled debt restructurings on financing receivables | The following table summarizes how loans were modified during the year ended December 31, 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 December 31, 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 | 25 | $8 | $7 | 131 | $21 | $22 | |||||||||||||||
Commercial real estate | 9 | 1 | 2 | 15 | 3 | 2 | |||||||||||||||
Total commercial | 34 | 9 | 9 | 146 | 24 | 24 | |||||||||||||||
Residential mortgages | 126 | 17 | 17 | 40 | 6 | 5 | |||||||||||||||
Home equity loans | 125 | 8 | 9 | 85 | 5 | 6 | |||||||||||||||
Home equity lines of credit | 7 | — | — | 276 | 17 | 16 | |||||||||||||||
Home equity loans serviced by others (3) | 42 | 2 | 2 | — | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 4 | — | — | 1 | — | — | |||||||||||||||
Automobile | 75 | 1 | 1 | 18 | — | — | |||||||||||||||
Credit cards | 2,165 | 12 | 12 | — | — | — | |||||||||||||||
Other retail | 3 | — | — | — | — | — | |||||||||||||||
Total retail | 2,547 | 40 | 41 | 420 | 28 | 27 | |||||||||||||||
Total | 2,581 | $49 | $50 | 566 | $52 | $51 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(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 | 27 | $52 | $74 | $3 | $— | ||||||||||||||||
Commercial real estate | 1 | 7 | 7 | — | 3 | ||||||||||||||||
Total commercial | 28 | 59 | 81 | 3 | 3 | ||||||||||||||||
Residential mortgages | 393 | 47 | 46 | (4 | ) | 1 | |||||||||||||||
Home equity loans | 1,046 | 63 | 62 | (1 | ) | 2 | |||||||||||||||
Home equity lines of credit | 356 | 25 | 21 | — | 5 | ||||||||||||||||
Home equity loans serviced by others (3) | 138 | 5 | 5 | (1 | ) | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 39 | 2 | 2 | — | — | ||||||||||||||||
Automobile | 1,039 | 17 | 13 | — | 5 | ||||||||||||||||
Student | 1,675 | 31 | 31 | 5 | — | ||||||||||||||||
Other retail | 57 | 2 | 1 | (1 | ) | — | |||||||||||||||
Total retail | 4,743 | 192 | 181 | (2 | ) | 13 | |||||||||||||||
Total | 4,771 | $251 | $262 | $1 | $16 | ||||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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 year ended December 31, 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 December 31, 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 | 126 | $13 | $13 | 134 | $18 | $18 | |||||||||||||||
Commercial real estate | 11 | 7 | 7 | 3 | 1 | 1 | |||||||||||||||
Total commercial | 137 | 20 | 20 | 137 | 19 | 19 | |||||||||||||||
Residential mortgages | 200 | 32 | 33 | 46 | 5 | 6 | |||||||||||||||
Home equity loans | 196 | 15 | 16 | 94 | 6 | 6 | |||||||||||||||
Home equity lines of credit | 18 | 1 | 1 | 2,081 | 80 | 70 | |||||||||||||||
Home equity loans serviced by others (3) | 31 | 2 | 2 | 5 | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 3 | — | — | 1 | — | — | |||||||||||||||
Automobile | 238 | 2 | 2 | 2 | — | — | |||||||||||||||
Credit cards | 2,729 | 15 | 15 | — | — | — | |||||||||||||||
Other retail | 21 | — | — | — | — | — | |||||||||||||||
Total retail | 3,436 | 67 | 69 | 2,229 | 91 | 82 | |||||||||||||||
Total | 3,573 | $87 | $89 | 2,366 | $110 | $101 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(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 | — | — | (2 | ) | — | |||||||||||||||
Total commercial | 7 | 1 | 1 | (2 | ) | 1 | |||||||||||||||
Residential mortgages | 430 | 64 | 63 | 5 | 2 | ||||||||||||||||
Home equity loans | 995 | 57 | 51 | 2 | 5 | ||||||||||||||||
Home equity lines of credit | 771 | 53 | 46 | — | 16 | ||||||||||||||||
Home equity loans serviced by others (3) | 269 | 12 | 10 | — | 3 | ||||||||||||||||
Home equity lines of credit serviced by others (3) | 43 | 2 | 1 | — | 1 | ||||||||||||||||
Automobile | 1,323 | 13 | 10 | — | 3 | ||||||||||||||||
Student | 2,620 | 48 | 47 | — | — | ||||||||||||||||
Other retail | 148 | 3 | 3 | — | 1 | ||||||||||||||||
Total retail | 6,599 | 252 | 231 | 7 | 31 | ||||||||||||||||
Total | 6,606 | $253 | $232 | $5 | $32 | ||||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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 year ended December 31, 2012, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2012, and were paid off in full, charged off, or sold prior to December 31, 2012. | |||||||||||||||||||||
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 | 18 | $13 | $13 | 108 | $25 | $24 | |||||||||||||||
Commercial real estate | 4 | 9 | 9 | 6 | 14 | 13 | |||||||||||||||
Total commercial | 22 | 22 | 22 | 114 | 39 | 37 | |||||||||||||||
Residential mortgages | 346 | 77 | 80 | 36 | 4 | 5 | |||||||||||||||
Home equity loans | 218 | 18 | 19 | 48 | 4 | 5 | |||||||||||||||
Home equity lines of credit | 1 | — | — | 109 | 6 | 6 | |||||||||||||||
Home equity loans serviced by others (3) | 41 | 2 | 2 | 7 | 1 | — | |||||||||||||||
Home equity lines of credit serviced by others(3) | 3 | — | — | — | — | — | |||||||||||||||
Credit cards | 2,965 | 17 | 16 | — | — | — | |||||||||||||||
Total retail | 3,574 | 114 | 117 | 200 | 15 | 16 | |||||||||||||||
Total | 3,596 | $136 | $139 | 314 | $54 | $53 | |||||||||||||||
Primary Modification Types | |||||||||||||||||||||
Other (4) | |||||||||||||||||||||
(dollars in millions) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Net Change(5) to ALLL Resulting from Modification | Charge-offs Resulting from Modification | ||||||||||||||||
Commercial | 180 | $43 | $46 | ($29 | ) | $14 | |||||||||||||||
Commercial real estate | 16 | 72 | 74 | (26 | ) | 2 | |||||||||||||||
Total commercial | 196 | 115 | 120 | (55 | ) | 16 | |||||||||||||||
Residential mortgages | 2,331 | 203 | 195 | (4 | ) | 9 | |||||||||||||||
Home equity loans | 2,336 | 130 | 117 | (2 | ) | 14 | |||||||||||||||
Home equity lines of credit | 1,554 | 92 | 72 | — | 20 | ||||||||||||||||
Home equity loans serviced by others (3) | 1,192 | 50 | 37 | (8 | ) | 13 | |||||||||||||||
Home equity lines of credit serviced by others (3) | 322 | 17 | 13 | — | 4 | ||||||||||||||||
Automobile | 2,938 | 19 | 14 | (4 | ) | 4 | |||||||||||||||
Student | 7,557 | 139 | 138 | 3 | — | ||||||||||||||||
Credit cards | — | — | — | 2 | — | ||||||||||||||||
Other retail | 263 | 6 | 3 | — | 4 | ||||||||||||||||
Total retail | 18,493 | 656 | 589 | (13 | ) | 68 | |||||||||||||||
Total | 18,689 | $771 | $709 | ($68 | ) | $84 | |||||||||||||||
(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) The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
(4) 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. | |||||||||||||||||||||
(5) Retail data is estimated for certain loan classes. | |||||||||||||||||||||
Schedule of defaults | The table below summarizes TDRs that defaulted during the years ended December 31, 2014, 2013 and 2012 within 12 months of their modification date. For purposes of this table, 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 December 31, 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. | ||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | |||||||||||||||
Commercial | 37 | $12 | 18 | $1 | 4 | $3 | |||||||||||||||
Commercial real estate | 3 | 1 | 3 | 1 | 1 | 5 | |||||||||||||||
Total commercial | 40 | 13 | 21 | 2 | 5 | 8 | |||||||||||||||
Residential mortgages | 301 | 35 | 526 | 60 | 208 | 35 | |||||||||||||||
Home equity loans | 329 | 24 | 740 | 43 | 318 | 31 | |||||||||||||||
Home equity lines of credit | 229 | 12 | 394 | 21 | 187 | 15 | |||||||||||||||
Home equity loans serviced by others (1) | 60 | 2 | 187 | 3 | 194 | 14 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 20 | — | 42 | 2 | 14 | 1 | |||||||||||||||
Automobile | 112 | 1 | 208 | 1 | 143 | 1 | |||||||||||||||
Student | 355 | 7 | 885 | 17 | — | — | |||||||||||||||
Credit cards | 579 | 3 | 548 | 3 | 628 | 4 | |||||||||||||||
Other retail | 12 | — | 33 | 1 | 8 | — | |||||||||||||||
Total retail | 1,997 | 84 | 3,563 | 151 | 1,700 | 101 | |||||||||||||||
Total | 2,037 | $97 | 3,584 | $153 | 1,705 | $109 | |||||||||||||||
(1) The Company's SBO portfolio consists of loans that were originally serviced by others. The Company now services a portion of this portfolio internally. | |||||||||||||||||||||
Schedule of loans that may increase credit exposure | The following table presents balances of loans with these characteristics: | ||||||||||||||||||||
December 31, 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 | $773 | $1,743 | $1,025 | $— | $3,541 | ||||||||||||||||
Interest only/negative amortization | 894 | — | — | — | 894 | ||||||||||||||||
Low introductory rate | — | — | — | 98 | 98 | ||||||||||||||||
Multiple characteristics and other | 24 | — | — | — | 24 | ||||||||||||||||
Total | $1,691 | $1,743 | $1,025 | $98 | $4,557 | ||||||||||||||||
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 | ||||||||||||||||
PREMISES_EQUIPMENT_AND_SOFTWAR1
PREMISES, EQUIPMENT, AND SOFTWARE (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Summary of the carrying value of premises and equipment | A summary of the carrying value of premises and equipment follows: | |||||||||
December 31, | ||||||||||
(dollars in millions) | Useful Lives | 2014 | 2013 | |||||||
Land and land improvements | 15 years | $26 | $33 | |||||||
Buildings and leasehold improvements | 7-40 years | 607 | 636 | |||||||
Furniture, fixtures and equipment | 5-15 years | 1,613 | 1,598 | |||||||
Total premises and equipment, gross | 2,246 | 2,267 | ||||||||
Less: accumulated depreciation | 1,651 | 1,675 | ||||||||
Total premises and equipment, net | $595 | $592 | ||||||||
Schedule of estimated future amortization expense for capitalized software assets | The estimated future amortization expense for capitalized software assets is as follows: | |||||||||
Year | (in millions) | |||||||||
2015 | $127 | |||||||||
2016 | 110 | |||||||||
2017 | 93 | |||||||||
2018 | 72 | |||||||||
2019 | 41 | |||||||||
Thereafter | 130 | |||||||||
Total (1) | $573 | |||||||||
(1) Excluded from this balance is $181 million of in-process software at December 31, 2014. |
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases [Abstract] | ||||||||
Schedule of aggregate minimum rental commitments | At December 31, 2014, the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are as follows for the years ended December 31: | |||||||
(in millions) | Operating Leases | Capital Leases | ||||||
2015 | $162 | $8 | ||||||
2016 | 148 | 7 | ||||||
2017 | 124 | 6 | ||||||
2018 | 92 | 2 | ||||||
2019 | 59 | 1 | ||||||
Thereafter | 167 | 9 | ||||||
Total minimum lease payments | $752 | $33 | ||||||
Amounts representing interest | N/A | (9 | ) | |||||
Present value of net minimum lease payments | N/A | $24 | ||||||
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of goodwill | The changes in the carrying value of goodwill for the years ended December 31, 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 December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at December 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
MORTGAGE_BANKING_Tables
MORTGAGE BANKING (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Mortgage Banking [Abstract] | ||||||||||||
Schedule of valuation allowance for impairment of recognized servicing assets | Changes related to MSRs were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
MSRs: | ||||||||||||
Balance as of January 1 | $208 | $215 | $215 | |||||||||
Amount capitalized | 17 | 45 | 67 | |||||||||
Amortization | (41 | ) | (52 | ) | (67 | ) | ||||||
Carrying amount before valuation allowance | 184 | 208 | 215 | |||||||||
Valuation allowance for servicing assets: | ||||||||||||
Balance as of January 1 | 23 | 70 | 58 | |||||||||
Valuation (recovery) impairment | (5 | ) | (47 | ) | 12 | |||||||
Balance at end of period | 18 | 23 | 70 | |||||||||
Net carrying value of MSRs | $166 | $185 | $145 | |||||||||
Servicing asset at amortized cost | Changes related to MSRs were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
MSRs: | ||||||||||||
Balance as of January 1 | $208 | $215 | $215 | |||||||||
Amount capitalized | 17 | 45 | 67 | |||||||||
Amortization | (41 | ) | (52 | ) | (67 | ) | ||||||
Carrying amount before valuation allowance | 184 | 208 | 215 | |||||||||
Valuation allowance for servicing assets: | ||||||||||||
Balance as of January 1 | 23 | 70 | 58 | |||||||||
Valuation (recovery) impairment | (5 | ) | (47 | ) | 12 | |||||||
Balance at end of period | 18 | 23 | 70 | |||||||||
Net carrying value of MSRs | $166 | $185 | $145 | |||||||||
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: | |||||||||||
Year Ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | ||||||||||
Fair value | $179 | $195 | ||||||||||
Weighted average life (in years) | 5.2 | 5.4 | ||||||||||
Weighted average constant prepayment rate | 12.4 | % | 13 | % | ||||||||
Weighted average discount rate | 9.8 | % | 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: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Weighted average life (in years) | 5.8 | 6 | 4 | |||||||||
Weighted average constant prepayment rate | 11.7 | % | 12.4 | % | 20.7 | % | ||||||
Weighted average discount rate | 10.3 | % | 10.5 | % | 10.5 | % | ||||||
Schedule of the impact to fair value of an adverse change in key economic assumptions | ||||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Prepayment rate: | ||||||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $9 | $9 | $11 | |||||||||
Decline in fair value from 100 basis points adverse change in interest rates | $15 | $18 | $18 | |||||||||
Weighted average discount rate: | ||||||||||||
Decline in fair value from 50 basis points adverse change | $3 | $3 | $2 | |||||||||
Decline in fair value from 100 basis points adverse change | $6 | $6 | $4 | |||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking and Thrift [Abstract] | ||||||||
Schedule of the major components of deposits | The major components of deposits are as follows: | |||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Demand | $26,086 | $24,931 | ||||||
Checking with interest | 16,394 | 13,630 | ||||||
Regular savings | 7,824 | 7,509 | ||||||
Money market accounts | 33,345 | 31,245 | ||||||
Term deposits | 12,058 | 9,588 | ||||||
Total deposits | $95,707 | $86,903 | ||||||
Schedule of maturity distribution of term deposits | The maturity distribution of term deposits as of December 31, 2014 is as follows: | |||||||
Year | (in millions) | |||||||
2015 | $8,278 | |||||||
2016 | 2,796 | |||||||
2017 | 425 | |||||||
2018 | 427 | |||||||
2019 | 125 | |||||||
2020 and thereafter | 7 | |||||||
Total | $12,058 | |||||||
Schedule of maturities of term deposits greater than $100,000 | The remaining maturities of these deposits are as follows: | |||||||
(in millions) | ||||||||
Three months or less | $3,244 | |||||||
After three months through six months | 454 | |||||||
After six months through twelve months | 1,091 | |||||||
After twelve months | 1,572 | |||||||
Total term deposits | $6,361 | |||||||
BORROWED_FUNDS_Tables
BORROWED FUNDS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of short-term borrowed funds | The following is a summary of the Company’s short-term borrowed funds: | |||||||||||
December 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Federal funds purchased | $574 | $689 | ||||||||||
Securities sold under agreements to repurchase | 3,702 | 4,102 | ||||||||||
Other short-term borrowed funds | 6,253 | 2,251 | ||||||||||
Total short-term borrowed funds | $10,529 | $7,042 | ||||||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||||||
As of and for the Year Ended December 31, | ||||||||||||
(dollars in millions) | 2014 | 2013 | 2012 | |||||||||
Weighted-average interest rate at year-end: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.14 | % | 0.09 | % | 0.1 | % | ||||||
Other short-term borrowed funds | 0.26 | 0.2 | 0.29 | |||||||||
Maximum amount outstanding at month-end during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $7,022 | $5,114 | $4,393 | |||||||||
Other short-term borrowed funds | 7,702 | 2,251 | 5,050 | |||||||||
Average amount outstanding during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,699 | $2,400 | $2,716 | |||||||||
Other short-term borrowed funds | 5,640 | 251 | 3,026 | |||||||||
Weighted-average interest rate during the year: | ||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.12 | % | 0.31 | % | 0.22 | % | ||||||
Other short-term borrowed funds | 0.25 | 0.44 | 0.33 | |||||||||
Schedule of long-term borrowed funds | The following is a summary of the Company’s long-term borrowed funds: | |||||||||||
December 31, | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
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 | — | ||||||||||
4.082% fixed rate subordinated debt, due 2025 (1) | 334 | — | ||||||||||
Banking Subsidiaries: | ||||||||||||
1.600% senior unsecured notes, due 2017 (2) | 750 | — | ||||||||||
2.450% senior unsecured notes, due 2019 (2) (3) | 746 | — | ||||||||||
Federal Home Loan advances due through 2033 | 772 | 25 | ||||||||||
Other | 24 | 30 | ||||||||||
Total long-term borrowed funds | $4,642 | $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 December 31, 2014: | |||||||||||
Year | (in millions) | |||||||||||
2015 or on demand | $— | |||||||||||
2016 | 755 | |||||||||||
2017 | 762 | |||||||||||
2018 | 11 | |||||||||||
2019 | 747 | |||||||||||
2020 and thereafter | 2,367 | |||||||||||
Total | $4,642 | |||||||||||
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The qualified plan's allocation by asset category is as follows: | |||||||||||||||||||||||||||||||||||
Target Asset Allocation | Actual Asset Allocation | |||||||||||||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||||||||
Equity securities | 45-55% | 49 | % | 52.6 | % | |||||||||||||||||||||||||||||||
Debt securities | 40-50% | 44.7 | % | 42.9 | % | |||||||||||||||||||||||||||||||
Other | 0-10% | 6.3 | % | 4.5 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are summarized as follows: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | |||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $1,031 | $998 | $1,106 | $— | $— | $— | ||||||||||||||||||||||||||||||
Actual return (loss) on plan assets | 98 | 111 | 142 | — | — | — | ||||||||||||||||||||||||||||||
Employer contributions | — | — | — | 9 | 8 | 8 | ||||||||||||||||||||||||||||||
Settlements | — | — | (196 | ) | — | — | — | |||||||||||||||||||||||||||||
Divestitures | (129 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||
Benefits and administrative expenses paid | (77 | ) | (78 | ) | (54 | ) | (9 | ) | (8 | ) | (8 | ) | ||||||||||||||||||||||||
Fair value of plan assets as of December 31 | 923 | 1,031 | 998 | — | — | — | ||||||||||||||||||||||||||||||
Projected benefit obligation | 1,093 | 1,026 | 1,185 | 117 | 107 | 116 | ||||||||||||||||||||||||||||||
Pension asset (obligation) | ($170 | ) | $5 | ($187 | ) | ($117 | ) | ($107 | ) | ($116 | ) | |||||||||||||||||||||||||
Accumulated benefit obligation | $1,093 | $1,026 | $1,185 | $117 | $107 | $116 | ||||||||||||||||||||||||||||||
(1) December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in AOCI | The pre-tax amounts recognized (for the qualified and non-qualified plans) in AOCI are as follows: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | |||||||||||||||||||||||||||||||||
Net prior service credit | $— | $— | ||||||||||||||||||||||||||||||||||
Net actuarial loss | 606 | 414 | ||||||||||||||||||||||||||||||||||
Total loss recognized in accumulated other comprehensive income | $606 | $414 | ||||||||||||||||||||||||||||||||||
(1) December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in OCI | Other changes in plan assets and benefit obligations (for the qualified and non-qualified plans) recognized in OCI include the following: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Net periodic pension (income) cost | ($8 | ) | ($3 | ) | $150 | |||||||||||||||||||||||||||||||
Net actuarial (gain) loss | 237 | (174 | ) | 169 | ||||||||||||||||||||||||||||||||
Amortization of prior service credit | — | — | 1 | |||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | (10 | ) | (14 | ) | (38 | ) | ||||||||||||||||||||||||||||||
Settlement | — | — | (92 | ) | ||||||||||||||||||||||||||||||||
Divestiture | (35 | ) | — | — | ||||||||||||||||||||||||||||||||
Total recognized in other comprehensive income | 192 | (188 | ) | 40 | ||||||||||||||||||||||||||||||||
Total recognized in net periodic pension cost and other comprehensive income | $184 | ($191 | ) | $190 | ||||||||||||||||||||||||||||||||
(1) Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||||
Year Ended December 31 | ||||||||||||||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | ||||||||||||||||||||||||||||||||||
(in millions) | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | 2014 | (1) | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $3 | $3 | $42 | $— | $— | $— | $3 | $3 | $42 | |||||||||||||||||||||||||||
Interest cost | 47 | 48 | 58 | 5 | 5 | 5 | 52 | 53 | 63 | |||||||||||||||||||||||||||
Expected return on plan assets | (73 | ) | (73 | ) | (84 | ) | — | — | — | (73 | ) | (73 | ) | (84 | ) | |||||||||||||||||||||
Amortization of actuarial loss | 9 | 13 | 35 | 1 | 1 | 3 | 10 | 14 | 38 | |||||||||||||||||||||||||||
Amortization of prior service cost | — | — | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||||||||||||||
Settlement | $— | $— | $92 | $— | $— | $— | $— | $— | $92 | |||||||||||||||||||||||||||
Net periodic pension (income) cost | ($14 | ) | ($9 | ) | $142 | $6 | $6 | $8 | ($8 | ) | ($3 | ) | $150 | |||||||||||||||||||||||
(1) Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are as follows: | |||||||||||||||||||||||||||||||||||
As of and for the | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
Assumptions for benefit obligations | ||||||||||||||||||||||||||||||||||||
Discount rate--qualified plan | 4.125 | % | 5 | % | 4.125 | % | ||||||||||||||||||||||||||||||
Discount rate--non-qualified plan | 3.875 | % | 4.75 | % | 4 | % | ||||||||||||||||||||||||||||||
Compensation increase rate | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||||
Assumptions for net periodic pension cost | ||||||||||||||||||||||||||||||||||||
Discount rate--qualified plan | 5.00/4.25% | (1) | 4.125 | % | 5.25 | % | ||||||||||||||||||||||||||||||
Discount rate--non-qualified plan | 4.75/4.00% | (2) | 4 | % | 5 | % | ||||||||||||||||||||||||||||||
Compensation increases--qualified and non-qualified plans | N/A | N/A | 4.75 | % | ||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | 7.75 | % | ||||||||||||||||||||||||||||||
(1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
(2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: | ||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Discount rate | 4.625/3.875/3.75% | (1) | 3.875 | % | ||||||||||||||||||||||||||||||||
Rate of compensation increase | — | % | — | % | ||||||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 5 | % | 5 | % | ||||||||||||||||||||||||||||||||
Effect on accumulated postretirement benefit obligation | ||||||||||||||||||||||||||||||||||||
One percent increase | $— | $2 | ||||||||||||||||||||||||||||||||||
One percent decrease | — | (2 | ) | |||||||||||||||||||||||||||||||||
(1) 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.75% for September 1 - December 31, 2014 period. | ||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Plan Assets | The following tables present the qualified pension plan assets measured at fair value within the fair value hierarchy: | |||||||||||||||||||||||||||||||||||
Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Cash and money market funds | $18 | $— | $18 | $— | ||||||||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||||||||||||
International equity funds | 24 | 24 | — | — | ||||||||||||||||||||||||||||||||
Income funds | 39 | — | 39 | — | ||||||||||||||||||||||||||||||||
Common and collective funds | ||||||||||||||||||||||||||||||||||||
Global equities common and collective funds | 241 | — | 241 | — | ||||||||||||||||||||||||||||||||
Fixed income common and collective funds | 305 | — | 305 | — | ||||||||||||||||||||||||||||||||
Managed portfolio | ||||||||||||||||||||||||||||||||||||
Cash and money market funds | (6 | ) | — | (6 | ) | — | ||||||||||||||||||||||||||||||
Corporate bonds | 85 | — | 85 | — | ||||||||||||||||||||||||||||||||
Municipal obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
U.S. government obligations | 17 | — | 17 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
Derivative assets - credit default swaps | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Derivative liabilities - foreign currency futures | (1 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||||||
Other | 14 | — | 14 | — | ||||||||||||||||||||||||||||||||
Limited partnerships | 183 | — | 183 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $923 | $24 | $899 | $— | ||||||||||||||||||||||||||||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
Cash and money market funds | $8 | $— | $8 | $— | ||||||||||||||||||||||||||||||||
Mutual funds | ||||||||||||||||||||||||||||||||||||
International equity funds | 28 | 28 | — | — | ||||||||||||||||||||||||||||||||
Income funds | 43 | — | 43 | — | ||||||||||||||||||||||||||||||||
Common and collective funds | ||||||||||||||||||||||||||||||||||||
International equity common and collective funds | 115 | — | 115 | — | ||||||||||||||||||||||||||||||||
Balanced common and collective funds | 474 | — | 474 | — | ||||||||||||||||||||||||||||||||
Fixed income common and collective funds | 117 | — | 117 | — | ||||||||||||||||||||||||||||||||
Managed portfolio | ||||||||||||||||||||||||||||||||||||
Cash and money market funds | 1 | — | 1 | — | ||||||||||||||||||||||||||||||||
Corporate bonds | 105 | — | 105 | — | ||||||||||||||||||||||||||||||||
Municipal obligations | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
U.S. government obligations | 9 | — | 9 | — | ||||||||||||||||||||||||||||||||
Non-U.S. government obligations | 3 | — | 3 | — | ||||||||||||||||||||||||||||||||
Limited partnerships | 126 | — | 126 | — | ||||||||||||||||||||||||||||||||
Total assets measured at fair value | $1,031 | $28 | $1,003 | $— | ||||||||||||||||||||||||||||||||
Schedule of Fair Value of Investments Using Net Asset Value Per Share | The unfunded commitments, redemption frequency, and redemption notice period for those Plan investments that utilize net asset value to determine the fair value as of December 31, 2014 and 2013, are as follows: | |||||||||||||||||||||||||||||||||||
Fair Value Estimated Using Net Asset Value per Share December 31, | ||||||||||||||||||||||||||||||||||||
Unfunded | Redemption | Redemption | Redemption | |||||||||||||||||||||||||||||||||
Investment (dollars in millions) | 2014 | 2013 | Commitment | Frequency | Restrictions | Notice Period | ||||||||||||||||||||||||||||||
Equity Mutual Fund(1) | $39 | $43 | $— | Daily | None | 1-7 days | ||||||||||||||||||||||||||||||
Common and Collective Funds: | ||||||||||||||||||||||||||||||||||||
International equity fund(2) | — | 115 | — | Monthly | None | 3 days | ||||||||||||||||||||||||||||||
Global equities funds(3) | 241 | — | — | Daily | None | 2-3 days | ||||||||||||||||||||||||||||||
Balanced funds(4) | — | 474 | — | Daily | None | 2-3 days | ||||||||||||||||||||||||||||||
Fixed income fund(5) | 305 | 117 | — | Daily | None | 3 days | ||||||||||||||||||||||||||||||
Limited Partnerships: | ||||||||||||||||||||||||||||||||||||
International equity fund(2) | 90 | — | — | Monthly | None | 3 days | ||||||||||||||||||||||||||||||
International equity(6) | 84 | 116 | — | Daily | None | 10 days | ||||||||||||||||||||||||||||||
Offshore feeder fund(7) | 9 | 10 | — | Daily | None | 1-14 days | ||||||||||||||||||||||||||||||
Total | $768 | $875 | $— | |||||||||||||||||||||||||||||||||
(1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. | ||||||||||||||||||||||||||||||||||||
(2) The international equity fund seeks medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. | ||||||||||||||||||||||||||||||||||||
(3) The global equities funds objective is to track the MSCI All Country World Index. | ||||||||||||||||||||||||||||||||||||
(4) The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. | ||||||||||||||||||||||||||||||||||||
(5) The fixed income fund seeks to outperform the Barclays US Long Corporate Bond Index or similar benchmark. | ||||||||||||||||||||||||||||||||||||
(6) The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. | ||||||||||||||||||||||||||||||||||||
(7) The offshore feeder fund operates under a “master/feeder” structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fund”). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5%. The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. | ||||||||||||||||||||||||||||||||||||
Qualified and Non-Qualified Plans | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | The following benefit payments for the qualified and non-qualified plans reflect expected future service, as appropriate, that are expected to be paid, are as follows: | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Expected benefit payments by fiscal year ended | ||||||||||||||||||||||||||||||||||||
31-Dec-15 | $63 | |||||||||||||||||||||||||||||||||||
31-Dec-16 | 64 | |||||||||||||||||||||||||||||||||||
31-Dec-17 | 64 | |||||||||||||||||||||||||||||||||||
31-Dec-18 | 65 | |||||||||||||||||||||||||||||||||||
31-Dec-19 | 66 | |||||||||||||||||||||||||||||||||||
December 31, 2020 - 2024 | 345 | |||||||||||||||||||||||||||||||||||
Postretirement Benefit Plan | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||
Schedule of Expected Benefit Payments | The following benefit payments for the postretirement benefit plan reflect expected future service, as appropriate, that are expected to be paid, are as follows: | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Expected benefit payments by fiscal year ended | ||||||||||||||||||||||||||||||||||||
31-Dec-15 | $1 | |||||||||||||||||||||||||||||||||||
31-Dec-16 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-17 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-18 | 1 | |||||||||||||||||||||||||||||||||||
31-Dec-19 | 1 | |||||||||||||||||||||||||||||||||||
December 31, 2020 - 2024 | 5 | |||||||||||||||||||||||||||||||||||
INCOME_TAXES_INCOME_TAXES_Tabl
INCOME TAXES INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||
Schedule of Comprehensive Income Tax | Total income tax expense (benefit) was as follows: | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Income tax expense (benefit) | $403 | ($42 | ) | $381 | ||||||||||||||
Tax effect of changes in OCI | 154 | (194 | ) | 125 | ||||||||||||||
Total comprehensive income tax expense (benefit) | $557 | ($236 | ) | $506 | ||||||||||||||
Schedule of components of income tax expense | Components of income tax expense (benefit) are as follows: | |||||||||||||||||
(in millions) | Current | Deferred | Total | |||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
U.S. federal | $224 | $145 | $369 | |||||||||||||||
State and local | 38 | (4 | ) | 34 | ||||||||||||||
Total | $262 | $141 | $403 | |||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
U.S. federal | $3 | ($47 | ) | ($44 | ) | |||||||||||||
State and local | 8 | (6 | ) | 2 | ||||||||||||||
Total | $11 | ($53 | ) | ($42 | ) | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
U.S. federal | $19 | $269 | $288 | |||||||||||||||
State and local | 56 | 37 | 93 | |||||||||||||||
Total | $75 | $306 | $381 | |||||||||||||||
Schedule of effective income tax rate reconciliation | The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2014, 2013 and 2012 as follows: | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(dollars in millions) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||
U.S. Federal income tax expense (benefit) and tax rate | $444 | 35 | % | ($1,214 | ) | 35 | % | $359 | 35 | % | ||||||||
Increase (decrease) resulting from: | ||||||||||||||||||
Goodwill impairment | — | — | 1,217 | (35.1 | ) | — | — | |||||||||||
State and local income taxes (net of federal benefit) | 22 | 1.7 | 1 | — | 61 | 5.9 | ||||||||||||
Bank-owned life insurance | (17 | ) | (1.3 | ) | (17 | ) | 0.5 | (18 | ) | (1.8 | ) | |||||||
Tax-exempt interest | (15 | ) | (1.2 | ) | (13 | ) | 0.4 | (12 | ) | (1.1 | ) | |||||||
Tax credits | (27 | ) | (2.1 | ) | (11 | ) | 0.3 | (8 | ) | (0.7 | ) | |||||||
Other | (4 | ) | (0.3 | ) | (5 | ) | 0.1 | (1 | ) | (0.1 | ) | |||||||
Total income tax expense (benefit) and tax rate | $403 | 31.8 | % | ($42 | ) | 1.2 | % | $381 | 37.2 | % | ||||||||
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: | |||||||||||||||||
December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Other comprehensive income | $232 | $397 | ||||||||||||||||
Allowance for credit losses | 456 | 475 | ||||||||||||||||
Net operating loss carryforwards | 155 | 185 | ||||||||||||||||
Accrued expenses not currently deductible | 170 | 149 | ||||||||||||||||
Investment and other tax credit carryforwards | — | 62 | ||||||||||||||||
Deferred income | 45 | 35 | ||||||||||||||||
Fair value marks | 34 | 30 | ||||||||||||||||
Other | 1 | — | ||||||||||||||||
Total deferred tax assets | 1,093 | 1,333 | ||||||||||||||||
Valuation allowance | (157 | ) | (193 | ) | ||||||||||||||
Deferred tax assets, net of valuation allowance | 936 | 1,140 | ||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||
Leasing transactions | 825 | 811 | ||||||||||||||||
Amortization of intangibles | 380 | 296 | ||||||||||||||||
Depreciation | 164 | 124 | ||||||||||||||||
Pension and other employee compensation plans | 14 | 56 | ||||||||||||||||
MSRs | 46 | 50 | ||||||||||||||||
Other | — | 2 | ||||||||||||||||
Total deferred tax liabilities | 1,429 | 1,339 | ||||||||||||||||
Net deferred tax liability | $493 | $199 | ||||||||||||||||
Schedule of unrecognized tax benefits rollforward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||||||
December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Balance at the beginning of the year, January 1 | $33 | $34 | $136 | |||||||||||||||
Gross increases for tax positions related to prior years | 60 | — | 29 | |||||||||||||||
Decreases for tax positions as a result of the lapse of the statute of limitations | (1 | ) | — | — | ||||||||||||||
Decreases for tax positions related to settlements with taxing authorities | (20 | ) | (1 | ) | (134 | ) | ||||||||||||
Gross increases for tax positions related to the current year | — | — | 3 | |||||||||||||||
Balance at end of year | $72 | $33 | $34 | |||||||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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: | |||||||||||||||||||
December 31, 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 | $5,750 | $24 | $99 | $5,500 | $23 | $412 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 31,848 | 589 | 501 | 29,355 | 654 | 558 | ||||||||||||||
Foreign exchange contracts | 8,359 | 170 | 164 | 7,771 | 94 | 87 | ||||||||||||||
Other contracts | 730 | 7 | 9 | 569 | 7 | 10 | ||||||||||||||
Total derivatives not designated as hedging instruments | 766 | 674 | 755 | 655 | ||||||||||||||||
Gross derivative fair values | 790 | 773 | 778 | 1,067 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets (2) | (161 | ) | (161 | ) | (128 | ) | (128 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets (3) | $629 | $612 | $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 3 “Securities” for further information | ||||||||||||||||||||
Schedule of fair value hedges | The following table summarizes certain information related to the Company’s fair value hedges: | |||||||||||||||||||
The Effect of Fair Value Hedges on Net Income | ||||||||||||||||||||
Amounts Recognized in Other Income for the Year Ended December 31, 2014 | Amounts Recognized in Other Income for the Year Ended December 31, 2013 | |||||||||||||||||||
(in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | Derivative | Hedged Item | Hedge Ineffectiveness | ||||||||||||||
Hedges of interest rate risk on borrowing using interest rate swaps | ($4) | $4 | $— | $— | $— | $— | ||||||||||||||
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 | ||||||||||||||||||||
Amounts Recognized for the Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Effective portion of gain (loss) recognized in OCI (1) | $334 | ($59 | ) | ($42 | ) | |||||||||||||||
Amounts reclassified from OCI to interest income (2) | 72 | 56 | — | |||||||||||||||||
Amounts reclassified from OCI to interest expense (2) | (99 | ) | (235 | ) | (335 | ) | ||||||||||||||
Amounts reclassified from OCI to net gains (3) | — | (1 | ) | (1 | ) | |||||||||||||||
Ineffective portion of gain recognized in other income (4) | — | — | 1 | |||||||||||||||||
(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 net gains (losses) line item on the Consolidated Statements of Operations. | ||||||||||||||||||||
(4) This amount represents the net ineffectiveness recorded during the reporting periods presented plus any amounts excluded from effectiveness testing. These amounts are 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 | ||||||||||||||||||||
Amounts Recognized in Noninterest Income for the Year Ended December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts (1) | $240 | $79 | $292 | |||||||||||||||||
Customer foreign exchange contracts (1) | (59 | ) | 18 | 10 | ||||||||||||||||
Residential loan commitments (3) | 6 | (7 | ) | 11 | ||||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) | (209 | ) | (30 | ) | (285 | ) | ||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) | 58 | (15 | ) | (10 | ) | |||||||||||||||
Forward sale contracts (3) | (3 | ) | 25 | 8 | ||||||||||||||||
Total | $33 | $70 | $26 | |||||||||||||||||
(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) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of outstanding off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: | |||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,899 | $53,987 | ||||||
Financial standby letters of credit | 2,315 | 2,556 | ||||||
Performance letters of credit | 65 | 149 | ||||||
Commercial letters of credit | 75 | 64 | ||||||
Marketing rights | 51 | 54 | ||||||
Risk participation agreements | 19 | 17 | ||||||
Residential mortgage loans sold with recourse | 11 | 13 | ||||||
Total | $58,435 | $56,840 | ||||||
DIVESTITURES_AND_BRANCH_ASSETS1
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Schedule of assets and liabilities held for sale | The following table presents the assets and liabilities held for sale related to this transaction as of December 31, 2013: | |||
(in millions) | ||||
Loans held for sale: | ||||
Commercial | $551 | |||
Commercial real estate | 49 | |||
Total commercial | 600 | |||
Home equity loans | 50 | |||
Home equity lines of credit | 339 | |||
Credit cards | 82 | |||
Other retail | 7 | |||
Total retail | 478 | |||
Total loans held for sale | 1,078 | |||
Other branch assets held for sale: | ||||
Properties and equipment, net | 46 | |||
Total other branch assets held for sale | 46 | |||
Total branch assets held for sale | $1,124 | |||
Deposits held for sale: | ||||
Demand | $1,020 | |||
Checking with interest | 849 | |||
Regular savings | 504 | |||
Money market accounts | 2,013 | |||
Term Deposits | 891 | |||
Total deposits held for sale | 5,277 | |||
Total branch liabilities held for sale | $5,277 | |||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Schedule of inter-company borrowed funds | The following is a summary of inter-company borrowed funds: | ||||||||||||
December 31, | |||||||||||||
(dollars in millions) | Related Party | Interest Rate | Maturity Date | 2014 | 2013 | ||||||||
Subordinated debt | RBSG | 4.08% | Jan-25 | $334 | $— | ||||||||
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) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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: | |||||||||||||||||||||||||||
December 31, 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 | $213 | $206 | $7 | $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: | |||||||||||||||||||||||||||
December 31, 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 | $43 | $43 | $— | |||||||||||||||||||||||||
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 December 31, 2014: | |||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,606 | $— | $18,606 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 25 | 8 | 17 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 18,656 | 23 | 18,633 | — | ||||||||||||||||||||||||
Residential loans held for sale | 213 | — | 213 | — | ||||||||||||||||||||||||
Commercial and commercial real estate loans held for sale | 43 | — | 43 | — | ||||||||||||||||||||||||
Total loans held for sale | 256 | — | 256 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 613 | — | 613 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 170 | — | 170 | — | ||||||||||||||||||||||||
Other contracts | 7 | — | 7 | — | ||||||||||||||||||||||||
Total derivative assets | 790 | — | 790 | — | ||||||||||||||||||||||||
Venture capital investments and other investments | 5 | — | — | 5 | ||||||||||||||||||||||||
Total assets | $19,707 | $23 | $19,679 | $5 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $600 | $— | $600 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 164 | — | 164 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative liabilities | 773 | — | 773 | — | ||||||||||||||||||||||||
Total liabilities | $773 | $— | $773 | $— | ||||||||||||||||||||||||
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 and 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: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Balance as of January 1 | $5 | $6 | $57 | |||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | — | — | 1 | |||||||||||||||||||||||||
Sales | — | (4 | ) | (45 | ) | |||||||||||||||||||||||
Settlements | — | 3 | 23 | |||||||||||||||||||||||||
Other net gains (losses) | — | — | (30 | ) | ||||||||||||||||||||||||
Balance as of December 31 | $5 | $5 | $6 | |||||||||||||||||||||||||
Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 | $— | $— | ($11 | ) | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Impaired collateral-dependent loans | ($101 | ) | ($83 | ) | ($101 | ) | ||||||||||||||||||||||
MSRs | 5 | 47 | (12 | ) | ||||||||||||||||||||||||
Foreclosed assets | (3 | ) | (4 | ) | (6 | ) | ||||||||||||||||||||||
Goodwill impairment (1) | — | (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: | |||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $102 | $— | $102 | $— | ||||||||||||||||||||||||
MSRs | 166 | — | — | 166 | ||||||||||||||||||||||||
Foreclosed assets | 40 | — | 40 | — | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $74 | $— | $74 | $— | ||||||||||||||||||||||||
MSRs | 185 | — | — | 185 | ||||||||||||||||||||||||
Foreclosed assets | 49 | — | 49 | — | ||||||||||||||||||||||||
Goodwill (1) | 6,876 | — | — | 6,876 | ||||||||||||||||||||||||
(1) In the year ended December 31, 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 Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | |||||||||||||||||||||||||||
December 31, 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 | $93,410 | $93,674 | $— | $— | $102 | $102 | $93,308 | $93,572 | ||||||||||||||||||||
Other loans held for sale | 25 | 25 | — | — | — | — | 25 | 25 | ||||||||||||||||||||
Securities held to maturity | 5,148 | 5,193 | — | — | 5,148 | 5,193 | — | — | ||||||||||||||||||||
Other investment securities | 872 | 872 | — | — | 872 | 872 | — | — | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 95,707 | 95,710 | — | — | 95,707 | 95,710 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,276 | — | — | 4,276 | 4,276 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 6,253 | 6,253 | — | — | 6,253 | 6,253 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 4,642 | 4,706 | — | — | 4,642 | 4,706 | — | — | ||||||||||||||||||||
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) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents capital and capital ratio information under the Basel I capital framework effective for the Company as of December 31, 2014: | |||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well Capitalized | ||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||
Total capital to risk-weighted assets | $16,781 | 15.8 | % | $8,477 | 8 | % | $10,596 | 10 | % | |||||||||
Tier 1 capital to risk-weighted assets | 13,173 | 12.4 | 4,239 | 4 | 6,358 | 6 | ||||||||||||
Tier 1 capital to average assets (leverage) | 13,173 | 10.6 | 4,982 | 4 | 6,227 | 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) | 12 Months Ended | ||||||||||||
Dec. 31, 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 January 1, 2012 | $9 | $59 | $— | $68 | |||||||||
Additions | 2 | 1 | 4 | 7 | |||||||||
Reversals | (1 | ) | (11 | ) | — | (12 | ) | ||||||
Utilization | (7 | ) | (22 | ) | (4 | ) | (33 | ) | |||||
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 | 24 | 57 | 124 | |||||||||
Reversals | (1 | ) | (5 | ) | (4 | ) | (10 | ) | |||||
Utilization | (21 | ) | (25 | ) | (50 | ) | (96 | ) | |||||
Reserve balance as of December 31, 2014 | $23 | $18 | $3 | $44 | |||||||||
RECLASSIFICATIONS_OUT_OF_ACCUM1
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income 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 January 1, 2012 | ($426 | ) | $251 | ($353 | ) | ($528 | ) | |||||||||||
Other comprehensive (loss) income before reclassifications | (26 | ) | 138 | — | 112 | |||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (38 | ) | — | (38 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 212 | (45 | ) | (25 | ) | 142 | ||||||||||||
Net other comprehensive income (loss) | 186 | 55 | (25 | ) | 216 | |||||||||||||
Balance at December 31, 2012 | (240 | ) | 306 | (378 | ) | (312 | ) | |||||||||||
Other comprehensive loss before reclassifications | (172 | ) | (285 | ) | — | (457 | ) | |||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (26 | ) | — | (26 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 114 | (86 | ) | 119 | 147 | |||||||||||||
Net other comprehensive (loss) income | (58 | ) | (397 | ) | 119 | (336 | ) | |||||||||||
Balance at December 31, 2013 | (298 | ) | (91 | ) | (259 | ) | (648 | ) | ||||||||||
Other comprehensive income before reclassifications | 212 | 198 | — | 410 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (22 | ) | — | (22 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 17 | (11 | ) | (118 | ) | (112 | ) | |||||||||||
Net other comprehensive income (loss) | 229 | 165 | (118 | ) | 276 | |||||||||||||
Balance at December 31, 2014 | ($69 | ) | $74 | ($377 | ) | ($372 | ) | |||||||||||
Schedule of reclassification out of accumulated other comprehensive income | The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Details about AOCI Components | Affected Line Item in the Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $72 | $56 | $— | Interest income | ||||||||||||||
(99 | ) | (235 | ) | (335 | ) | Interest expense | ||||||||||||
— | (1 | ) | — | Other income | ||||||||||||||
(27 | ) | (180 | ) | (335 | ) | Income (loss) before income tax expense (benefit) | ||||||||||||
(10 | ) | (66 | ) | (123 | ) | Income tax expense (benefit) | ||||||||||||
($17 | ) | ($114 | ) | ($212 | ) | Net income (loss) | ||||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $28 | $144 | $95 | Securities gains, net | ||||||||||||||
(10 | ) | (8 | ) | (24 | ) | Net impairment losses recognized in earnings | ||||||||||||
18 | 136 | 71 | Income (loss) before income tax expense (benefit) | |||||||||||||||
7 | 50 | 26 | Income tax expense (benefit) | |||||||||||||||
$11 | $86 | $45 | Net income (loss) | |||||||||||||||
Reclassification of changes related to defined benefit pension plans: | $192 | ($190 | ) | $40 | Salaries and employee benefits | |||||||||||||
192 | (190 | ) | 40 | Income (loss) before income tax expense (benefit) | ||||||||||||||
74 | (71 | ) | 15 | Income tax expense (benefit) | ||||||||||||||
$118 | ($119 | ) | $25 | Net income (loss) | ||||||||||||||
Total reclassification gains (losses) | $112 | ($147 | ) | ($142 | ) | Net income (loss) | ||||||||||||
The following table presents the effects to net income of the amounts reclassified out of AOCI: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||
Net interest income (includes ($27), ($179) and ($335) of AOCI reclassifications, respectively) | $3,301 | $3,058 | $3,227 | |||||||||||||||
Provision for credit losses | 319 | 479 | 413 | |||||||||||||||
Noninterest income (includes $18, $135 and $71 of AOCI reclassifications, respectively) | 1,678 | 1,632 | 1,667 | |||||||||||||||
Noninterest expense (includes ($192), $190 and ($40) of AOCI reclassifications, respectively) | 3,392 | 7,679 | 3,457 | |||||||||||||||
Income (loss) before income tax expense (benefit) | 1,268 | (3,468 | ) | 1,024 | ||||||||||||||
Income tax expense (benefit) (includes $71, ($87) and $82 income tax net expense and (benefit) from reclassification items, respectively) | 403 | (42 | ) | 381 | ||||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of segment reporting information | ||||||||||||||||
As of and for the Year Ended December 31, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $2,151 | $1,073 | $77 | $3,301 | ||||||||||||
Noninterest income | 899 | 429 | 350 | 1,678 | ||||||||||||
Total revenue | 3,050 | 1,502 | 427 | 4,979 | ||||||||||||
Noninterest expense | 2,513 | 652 | 227 | 3,392 | ||||||||||||
Profit before provision for credit losses | 537 | 850 | 200 | 1,587 | ||||||||||||
Provision for credit losses | 259 | (6 | ) | 66 | 319 | |||||||||||
Income before income tax expense | 278 | 856 | 134 | 1,268 | ||||||||||||
Income tax expense | 96 | 295 | 12 | 403 | ||||||||||||
Net income | $182 | $561 | $122 | $865 | ||||||||||||
Total Average Assets | $48,939 | $38,483 | $40,202 | $127,624 | ||||||||||||
As of and for the Year Ended December 31, 2013 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $2,176 | $1,031 | ($149 | ) | $3,058 | |||||||||||
Noninterest income | 1,025 | 389 | 218 | 1,632 | ||||||||||||
Total revenue | 3,201 | 1,420 | 69 | 4,690 | ||||||||||||
Noninterest expense | 2,522 | 635 | 4,522 | 7,679 | ||||||||||||
Profit (loss) before provision for credit losses | 679 | 785 | (4,453 | ) | (2,989 | ) | ||||||||||
Provision for credit losses | 308 | (7 | ) | 178 | 479 | |||||||||||
Income (loss) before income tax expense (benefit) | 371 | 792 | (4,631 | ) | (3,468 | ) | ||||||||||
Income tax expense (benefit) | 129 | 278 | (449 | ) | (42 | ) | ||||||||||
Net income (loss) | $242 | $514 | ($4,182 | ) | ($3,426 | ) | ||||||||||
Total Average Assets | $46,465 | $35,229 | $39,172 | $120,866 | ||||||||||||
As of and for the Year Ended December 31, 2012 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income (expense) | $2,197 | $1,036 | ($6 | ) | $3,227 | |||||||||||
Noninterest income | 1,187 | 349 | 131 | 1,667 | ||||||||||||
Total revenue | 3,384 | 1,385 | 125 | 4,894 | ||||||||||||
Noninterest expense | 2,691 | 625 | 141 | 3,457 | ||||||||||||
Profit (loss) before provision for credit losses | 693 | 760 | (16 | ) | 1,437 | |||||||||||
Provision for credit losses | 408 | 63 | (58 | ) | 413 | |||||||||||
Income before income tax expense | 285 | 697 | 42 | 1,024 | ||||||||||||
Income tax expense | 100 | 244 | 37 | 381 | ||||||||||||
Net income | $185 | $453 | $5 | $643 | ||||||||||||
Total Average Assets | $47,824 | $33,474 | $46,368 | $127,666 | ||||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
RBS Share Awards | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Schedule of Share-based Compensation Activity | The following tables summarize the activity related to our share-based plans (excluding the ESPP): | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
RBS Share Awards | Shares Underlying Awards | Weighted Average Grant Price | Shares Underlying Awards | Weighted Average Grant Price | Shares Underlying Awards | Weighted Average Grant Price | |||||||||||||||
Nonvested, January 1 | 19,778,967 | $5.31 | 22,865,810 | $6.14 | 23,490,759 | $6.49 | |||||||||||||||
Granted | 9,627,635 | 5.48 | 6,363,919 | 4.66 | 9,477,611 | 4.41 | |||||||||||||||
Vested | (6,040,806 | ) | 6.14 | (4,208,789 | ) | 6.68 | (8,379,848 | ) | 5.22 | ||||||||||||
Forfeited | (3,975,044 | ) | 6.73 | (5,241,973 | ) | 7.03 | (1,722,712 | ) | 5.93 | ||||||||||||
Conversion to CFG Shares | (19,390,752 | ) | 4.84 | — | — | — | — | ||||||||||||||
Nonvested, December 31 | — | $— | 19,778,967 | $5.31 | 22,865,810 | $6.14 | |||||||||||||||
Citizens Share Awards | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Schedule of Share-based Compensation Activity | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
CFG Share Awards | Shares | Weighted Average Grant Price | |||||||||||||||||||
Underlying Awards | |||||||||||||||||||||
Nonvested, January 1 | — | $— | |||||||||||||||||||
Conversion to CFG Shares | 5,774,504 | 21.5 | |||||||||||||||||||
Granted | 209,099 | 24.87 | |||||||||||||||||||
Vested | (161,067 | ) | 25.07 | ||||||||||||||||||
Forfeited | (226,654 | ) | 21.5 | ||||||||||||||||||
Nonvested, December 31 | 5,595,882 | $21.52 | |||||||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of earnings per share | |||||||||||||
Year Ended December 31, | |||||||||||||
(dollars in millions, except share and per-share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator (basic and diluted): | |||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | |||||||||
Less: Preferred stock dividends | — | — | — | ||||||||||
Net income (loss) available to common stockholders | $865 | ($3,426 | ) | $643 | |||||||||
Denominator: | |||||||||||||
Weighted-average common shares outstanding - basic | 556,674,146 | 559,998,324 | 559,998,324 | ||||||||||
Dilutive common shares: share-based awards | 1,050,790 | — | — | ||||||||||
Weighted-average common shares outstanding - diluted | 557,724,936 | 559,998,324 | 559,998,324 | ||||||||||
Earnings (loss) per common share: | |||||||||||||
Basic | $1.55 | ($6.12 | ) | $1.15 | |||||||||
Diluted | 1.55 | (6.12 | ) | 1.15 | |||||||||
PARENT_COMPANY_ONLY_FINANCIALS1
PARENT COMPANY ONLY FINANCIALS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Statements of Operations | Condensed Statements of Operations | |||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
OPERATING INCOME: | ||||||||||||
Income from bank subsidiaries and associated banks, excluding equity in undistributed income: | ||||||||||||
Dividends | $595 | $210 | $175 | |||||||||
Interest | 29 | 13 | 13 | |||||||||
Management and service fees | 21 | 26 | 42 | |||||||||
Securities gains | — | — | 1 | |||||||||
All other operating income | 5 | 2 | 4 | |||||||||
Total operating income | 650 | 251 | 235 | |||||||||
OPERATING EXPENSE: | ||||||||||||
Salaries and employee benefits | 63 | 38 | 52 | |||||||||
Interest expense | 80 | 24 | 4 | |||||||||
All other expenses | 123 | 43 | 39 | |||||||||
Total operating expense | 266 | 105 | 95 | |||||||||
Income before taxes and undistributed income | 384 | 146 | 140 | |||||||||
Applicable income taxes | (77 | ) | (22 | ) | (9 | ) | ||||||
Income before undistributed income of subsidiaries and associated companies | 461 | 168 | 149 | |||||||||
Equity in undistributed income (losses) of subsidiaries and associated companies: | ||||||||||||
Bank | 402 | (3,595 | ) | 501 | ||||||||
Nonbank | 2 | 1 | (7 | ) | ||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||
Other comprehensive income (loss), net of income taxes: | ||||||||||||
Net pension plan activity arising during the period | $8 | $17 | ($7 | ) | ||||||||
Net unrealized derivative instrument gains arising during the period | — | 1 | — | |||||||||
Net unrealized securities gains arising during the period | 1 | — | — | |||||||||
Other comprehensive income (loss) activity of the Parent Company Only, net of income taxes | 9 | 18 | (7 | ) | ||||||||
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | 267 | (354 | ) | 223 | ||||||||
Total other comprehensive income (loss), net of income taxes | 276 | (336 | ) | 216 | ||||||||
Total comprehensive income (loss) | $1,141 | ($3,762 | ) | $859 | ||||||||
Condensed Balance Sheets | Condensed Balance Sheets | |||||||||||
(in millions) | December 31, 2014 | December 31, 2013 | ||||||||||
ASSETS: | ||||||||||||
Cash and due from banks | $280 | $494 | ||||||||||
Loans and advances to: | ||||||||||||
Bank subsidiaries | 1,685 | 459 | ||||||||||
Related bank holding companies | — | 1 | ||||||||||
Investments in subsidiaries: | ||||||||||||
Bank subsidiaries | 19,512 | 19,522 | ||||||||||
Nonbank subsidiaries | 72 | 73 | ||||||||||
Other assets | 214 | 178 | ||||||||||
TOTAL ASSETS | $21,763 | $20,727 | ||||||||||
LIABILITIES: | ||||||||||||
Long-term debt due to: | ||||||||||||
Unaffiliated companies | $350 | $350 | ||||||||||
Related bank holding companies | 2,000 | 1,000 | ||||||||||
Balances due to related bank holding companies | 2 | — | ||||||||||
Other liabilities | 143 | 181 | ||||||||||
TOTAL LIABILITIES | 2,495 | 1,531 | ||||||||||
TOTAL STOCKHOLDERS' EQUITY | 19,268 | 19,196 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $21,763 | $20,727 | ||||||||||
Condensed Cash Flow Statements | Condensed Cash Flow Statements | |||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
OPERATING ACTIVITIES | ||||||||||||
Net income (loss) | $865 | ($3,426 | ) | $643 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Deferred income taxes | 27 | (11 | ) | (12 | ) | |||||||
Gain on sales of assets | — | — | (1 | ) | ||||||||
Equity in undistributed (earnings) losses of subsidiaries | (404 | ) | 3,594 | (494 | ) | |||||||
Net change in other liabilities | 18 | 7 | 47 | |||||||||
Net change in other assets | (74 | ) | 15 | (20 | ) | |||||||
Other operating, net | 17 | 1 | (2 | ) | ||||||||
Total adjustments | (416 | ) | 3,606 | (482 | ) | |||||||
Net cash provided by operating activities | 449 | 180 | 161 | |||||||||
INVESTING ACTIVITIES | ||||||||||||
Proceeds from sales and maturities of securities available for sale | — | — | 3 | |||||||||
Payments for investments in and advances to subsidiaries | (1,470 | ) | (220 | ) | (800 | ) | ||||||
Sale or repayment of investments in and advances to subsidiaries | 945 | 315 | 1,164 | |||||||||
Other investing, net | (11 | ) | (1 | ) | (1 | ) | ||||||
Net cash (used) provided by investing activities | (536 | ) | 94 | 366 | ||||||||
FINANCING ACTIVITIES | ||||||||||||
Proceeds from advances from subsidiaries | — | — | 5 | |||||||||
Repayment of advances from subsidiaries | — | (289 | ) | (239 | ) | |||||||
Proceeds from issuance of long-term debt | 1,000 | 1,000 | 350 | |||||||||
Proceeds from issuance of common stock | 13 | — | — | |||||||||
Repurchase of common stock | (334 | ) | — | — | ||||||||
Dividends paid | (806 | ) | (1,185 | ) | (150 | ) | ||||||
Net cash used by financing activities | (127 | ) | (474 | ) | (34 | ) | ||||||
Net (decrease) increase in cash and due from banks | (214 | ) | (200 | ) | 493 | |||||||
Cash and due from banks at beginning of year | 494 | 694 | 201 | |||||||||
Cash and due from banks at end of year | $280 | $494 | $694 | |||||||||
OTHER_OPERATING_EXPENSE_Tables
OTHER OPERATING EXPENSE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Schedule of other operating expense | The following table presents the details of other operating expense: | |||||||||||
Year Ended December 31, | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Deposit insurance | $95 | $85 | $98 | |||||||||
Promotional expense | 86 | 76 | 86 | |||||||||
Settlements and operating losses | 89 | 51 | 58 | |||||||||
Postage and delivery | 48 | 60 | 196 | |||||||||
Other | 255 | 256 | 271 | |||||||||
Other operating expense | $573 | $528 | $709 | |||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loss analysis threshold | 3 |
Accounting Standard Update No. 2014-01 [Member] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Expected impact to tax rate of adoption of new accounting standard in 2015 | 2.40% |
CASH_AND_DUE_FROM_BANKS_Narrat
CASH AND DUE FROM BANKS - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Abstract] | |||
Interest-bearing cash and due from banks | $2,105 | $1,351 | |
Interest rate on FRB balances | 0.25% | 0.25% | 0.25% |
Interest earned on FRB balances | $5 | $5 | $3 |
SECURITIES_Narrative_Details
SECURITIES - Narrative (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Impaired debt securities sold | $0 | $0 | $0 | |
Pretax non-credit related losses were deferred in OCI | 35 | 41 | 60 | |
Other/non-agency | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative balance at end of period | 10 | 8 | 24 | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Securitizations of loans | 18 | 106 | 21 | |
Available-for-sale Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative balance at end of period | 62 | 56 | 55 | 38 |
Reductions due to increases in cash flow expectations on impaired securities | 4 | 7 | 7 | |
Held-to-maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative balance at end of period | $0 | $0 |
SECURITIES_Schedule_of_Investm
SECURITIES - Schedule of Investments (Details) (USD $) | Dec. 31, 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 | $18,433 | $16,010 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 308 | 159 |
Equity Securities Available-for-sale, Gross Unrealized Losses | -85 | -174 |
Equity Securities Available-for-sale, Fair Value | 18,656 | 15,995 |
Securities Held-to-maturity, Amortized Cost | 5,148 | 4,315 |
Securities Held-to-maturity, Gross Unrealized Gain | 76 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | -31 | -58 |
Securities held-to-maturity, Fair Value | 5,193 | 4,257 |
Other Investment Securities, Amortized Cost | 872 | 935 |
Other Investment Securities, Gross Unrealized Gains | 0 | 0 |
Other Investment Securities, Gross Unrealized Losses | 0 | 0 |
Other Investment Securities, Fair Value | 872 | 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 | 17,683 | 14,970 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 301 | 151 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -50 | -128 |
Debt Securities Available-for-sale, Fair Value | 17,934 | 14,993 |
Securities Held-to-maturity, Amortized Cost | 3,728 | 2,940 |
Securities Held-to-maturity, Gross Unrealized Gain | 22 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | -31 | -33 |
Securities held-to-maturity, Fair Value | 3,719 | 2,907 |
Other/non-agency | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Debt Securities Available-for-sale, Amortized Cost | 703 | 992 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 4 | 5 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -35 | -45 |
Debt Securities Available-for-sale, Fair Value | 672 | 952 |
Securities Held-to-maturity, Amortized Cost | 1,420 | 1,375 |
Securities Held-to-maturity, Gross Unrealized Gain | 54 | 0 |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | -25 |
Securities held-to-maturity, Fair Value | 1,474 | 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 | 18,386 | 15,962 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 305 | 156 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -85 | -173 |
Debt Securities Available-for-sale, Fair Value | 18,606 | 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 | 18,411 | 15,988 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 305 | 156 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -85 | -174 |
Debt Securities Available-for-sale, Fair Value | 18,631 | 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 | 477 | 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 | 477 | 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 | 390 | 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 | 390 | 468 |
Total other investment securities | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Venture Capital, Amortized Cost | 5 | 5 |
Venture Capital, Gross Unrealized Gain | 0 | 0 |
Venture Capital, Gross Unrealized Loss | 0 | 0 |
Venture Capital, Fair Value | $5 | $5 |
SECURITIES_Schedule_of_Investm1
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | 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 | 81 | 286 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $3,362 | $13,529 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -26 | -193 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 70 | 26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 2,173 | 510 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -90 | -39 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 151 | 312 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 5,535 | 14,039 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -116 | -232 |
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 | 75 | 263 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,282 | 12,067 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -24 | -158 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 52 | 7 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,766 | 20 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -57 | -2 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 127 | 270 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 5,048 | 12,087 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -81 | -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 | 6 | 22 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 80 | 1,452 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -2 | -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 | 397 | 490 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -33 | -37 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 23 | 41 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 477 | 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 | 81 | 285 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,362 | 13,519 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -26 | -192 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 69 | 26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 2,163 | 510 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -90 | -39 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 150 | 311 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 5,525 | 14,029 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | ($116) | ($231) |
SECURITIES_Schedule_of_Cumulat
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) (Available-for-sale Securities [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Cumulative balance at beginning of period | $56 | $55 | $38 |
Credit impairments recognized in earnings on securities not previously impaired | 0 | 0 | 1 |
Credit impairments recognized in earnings on debt securities that have been previously impaired | 10 | 8 | 23 |
Reductions due to increases in cash flow expectations on impaired securities | -4 | -7 | -7 |
Cumulative balance at end of period | $62 | $56 | $55 |
SECURITIES_Schedule_of_Availab
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) (USD $) | Dec. 31, 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 | $17 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 104 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,375 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,915 |
Amortized Cost, Debt securities available for sale, Total | 18,411 |
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 | 5,148 |
Amortized Cost, Debt securities held to maturity, Total | 5,148 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 17 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 104 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 2,375 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,063 |
Total amortized cost of debt securities, Total | 23,559 |
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 | 17 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 108 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,391 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,115 |
Fair Value, Debt securities available for sale, Total | 18,631 |
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 | 5,193 |
Fair Value, Debt securities held to maturity, Total | 5,193 |
Total fair value of debt securities, Maturity of 1 Year or Less | 17 |
Total fair value of debt securities, Maturity of 1-5 Years | 108 |
Total fair value of debt securities, Maturity of 5-10 Years | 2,391 |
Total fair value of debt securities, Maturity After 10 Years | 21,308 |
Total fair value of debt securities, Total | 23,824 |
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 | 2 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 53 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,318 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,310 |
Amortized Cost, Debt securities available for sale, Total | 17,683 |
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 | 3,728 |
Amortized Cost, Debt securities held to maturity, Total | 3,728 |
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 | 2 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 56 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,333 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,543 |
Fair Value, Debt securities available for sale, Total | 17,934 |
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 | 3,719 |
Fair Value, Debt securities held to maturity, Total | 3,719 |
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 | 51 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 57 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 595 |
Amortized Cost, Debt securities available for sale, Total | 703 |
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 | 1,420 |
Amortized Cost, Debt securities held to maturity, Total | 1,420 |
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 | 52 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 58 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 562 |
Fair Value, Debt securities available for sale, Total | 672 |
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 | 1,474 |
Fair Value, Debt securities held to maturity, Total | $1,474 |
SECURITIES_Income_Recognized_f
SECURITIES - Income Recognized from Investment Securities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | |||
Taxable | $619 | $477 | $618 |
Non-taxable | 0 | 0 | 2 |
Interest-bearing deposits in banks | 5 | 11 | 4 |
Total interest income from investment securities | 624 | 488 | 624 |
Gain (Loss) on Sale of Investments [Abstract] | |||
Gains on sale of debt securities | 33 | 144 | 93 |
Losses on sale of debt securities | -5 | 0 | 0 |
Gains on sale of marketable equity securities | 0 | 0 | 2 |
Total | $28 | $144 | $95 |
SECURITIES_Schedule_of_Securit
SECURITIES - Schedule of Securities Pledged (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $3,650 | $5,016 |
Pledged against repurchase agreements, Fair Value | 3,701 | 4,998 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,355 | 1 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,407 | 1 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,453 | 2,818 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $3,520 | $2,853 |
SECURITIES_Schedule_of_Balance
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Securities purchased under agreements to resell, gross | $0 | $0 |
Securities purchased under agreements to resell, offset | 0 | 0 |
Securities purchased under agreements to resell, net | 0 | 0 |
Securities sold under agreements to repurchase, gross | -2,600 | -3,000 |
Securities sold under agreements to repurchase, offset | 0 | 0 |
Securities sold under agreements to repurchase, net | ($2,600) | ($3,000) |
LOANS_AND_LEASES_Narrative_Det
LOANS AND LEASES - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | $256,000,000 | $176,000,000 | $256,000,000 | |
Other loans held for sale | 25,000,000 | 1,078,000,000 | 25,000,000 | |
Loans sold during period | 0 | |||
Leveraged Leases, Income (Loss) [Abstract] | ||||
Pre-tax income on leveraged leases | 2,000,000 | 3,000,000 | 3,000,000 | |
Income tax on leveraged leases | 1,000,000 | 1,000,000 | 1,000,000 | |
Residential Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans pledged as collateral for FHLB borrowed funds | 22,000,000,000 | 19,000,000,000 | 22,000,000,000 | |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 11,800,000,000 | 13,900,000,000 | 11,800,000,000 | |
Residential Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | 256,000,000 | 176,000,000 | 256,000,000 | |
Residential, including originated home equity products | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans purchased during period | 1,900,000,000 | 912,000,000 | ||
Residential mortgage loans sold | 126,000,000 | |||
Consumer Loans Auto Financing Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans purchased during period | 1,700,000,000 | |||
Student | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans purchased during period | 59,000,000 | |||
Residential mortgage loans sold | 357,000,000 | |||
Student | Purchase Commitment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans purchased during period | 260,000,000 | |||
Commercial Loans, Oil and Natural Gas Industry | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal balance of loans held-for-investment acquired during period | 417,000,000 | |||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential mortgage loans sold | 301,000,000 | |||
Disposed of by sale | Illinois | Retail branches | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential mortgage loans sold | $1,000,000,000 |
LOANS_AND_LEASES_Summary_of_Lo
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | $43,226,000,000 | $39,395,000,000 | ||
Loans and leases retail | 50,184,000,000 | 46,464,000,000 | ||
Loans and leases | 93,410,000,000 | [1],[2] | 85,859,000,000 | [1],[2] |
Loans held for sale | 256,000,000 | 176,000,000 | ||
Banking Subsidiaries | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans serviced for others by the Company's subsidiaries | 17,900,000,000 | 18,700,000,000 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 31,431,000,000 | 28,667,000,000 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 7,809,000,000 | 6,948,000,000 | ||
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 3,986,000,000 | 3,780,000,000 | ||
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 11,832,000,000 | 9,726,000,000 | ||
Loans held for sale | 256,000,000 | 176,000,000 | ||
Home equity loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 3,424,000,000 | 4,301,000,000 | ||
Home equity lines of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 15,423,000,000 | 15,667,000,000 | ||
Home equity loans serviced by others | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,228,000,000 | [3] | 1,492,000,000 | [3] |
Home equity lines of credit serviced by others | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 550,000,000 | [3] | 679,000,000 | [3] |
Automobile | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 12,706,000,000 | 9,397,000,000 | ||
Student | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 2,256,000,000 | 2,208,000,000 | ||
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,693,000,000 | 1,691,000,000 | ||
Other retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,072,000,000 | 1,303,000,000 | ||
Residential mortgage and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | $281,000,000 | $1,300,000,000 | ||
[1] | Excluded from the table above are loans held for sale totaling $281 million as of December 31, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Chicago Divestiture. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.†| |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively. | |||
[3] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
LOANS_AND_LEASES_Summary_of_In
LOANS AND LEASES - Summary of Investments in Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total leases | $43,226 | $39,395 |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Direct financing leases | 3,873 | 3,668 |
Leveraged leases | 113 | 112 |
Total leases | $3,986 | $3,780 |
LOANS_AND_LEASES_Components_of
LOANS AND LEASES - Components of Investments in Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | $3,324 | |
Total leases | 43,226 | 39,395 |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | 3,324 | 3,252 |
Estimated residual value of leased equipment (non-guaranteed) | 1,059 | 968 |
Initial direct costs | 22 | 20 |
Unearned income on minimum lease rentals and estimated residual value of leased equipment | -419 | -460 |
Total leases | $3,986 | $3,780 |
LOANS_AND_LEASES_Future_Minimu
LOANS AND LEASES - Future Minimum Payments Receivable (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Future Minimum Payments Receivable | |
2015 | $699 |
2016 | 615 |
2017 | 497 |
2018 | 444 |
2019 | 347 |
Thereafter | 722 |
Total | $3,324 |
ALLOWANCE_FOR_CREDIT_LOSSES_NO2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Modifications [Line Items] | ||
Larger balance commercial loans minimum balance | $3 | $3 |
Commitments to lend additional funds to debtors owing receivables which were TDRs | 53 | 52 |
High loan to value criteria | 90.00% | 90.00% |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | 176 | 167 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | 1,200 | 1,200 |
Allowance for loan and lease losses | ||
Financing Receivable, Modifications [Line Items] | ||
Loss period change | 0 | |
Allowance for loan and lease losses | Retail | ||
Financing Receivable, Modifications [Line Items] | ||
Loss period change | $96 |
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 $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $1,221 | ||
Provision charged to income | 319 | 479 | 413 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,195 | 1,221 | |
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, Beginning balance | 1,221 | 1,255 | 1,698 |
Charge-offs | -493 | -703 | -1,110 |
Recoveries | 170 | 202 | 235 |
Net recoveries (charge-offs) | -323 | -501 | -875 |
Sales / Other | -13 | -2 | |
Provision charged to income | 297 | 480 | 434 |
Transfer of unallocated reserve to qualitative reserve | 0 | ||
Loss emergence period change | 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,195 | 1,221 | 1,255 |
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, Beginning balance | 498 | 509 | 691 |
Charge-offs | -43 | -108 | -257 |
Recoveries | 58 | 87 | 113 |
Net recoveries (charge-offs) | 15 | -21 | -144 |
Sales / Other | -6 | -2 | |
Provision charged to income | 31 | -19 | -36 |
Transfer of unallocated reserve to qualitative reserve | 35 | ||
Loss emergence period change | 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 544 | 498 | 509 |
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, Beginning balance | 723 | 657 | 816 |
Charge-offs | -450 | -595 | -853 |
Recoveries | 112 | 115 | 122 |
Net recoveries (charge-offs) | -338 | -480 | -731 |
Sales / Other | -6 | 0 | |
Provision charged to income | 266 | 396 | 572 |
Transfer of unallocated reserve to qualitative reserve | 60 | ||
Loss emergence period change | 96 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 651 | 723 | 657 |
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, Beginning balance | 89 | 191 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net recoveries (charge-offs) | 0 | 0 | |
Sales / Other | -1 | 0 | |
Provision charged to income | 103 | -102 | |
Transfer of unallocated reserve to qualitative reserve | -95 | ||
Loss emergence period change | -96 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 89 | |
Reserve for unfunded lending commitments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 39 | 40 | 61 |
Provision for unfunded lending commitments | 22 | ||
Credit for unfunded lending commitments | -1 | -21 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 61 | 39 | 40 |
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, Beginning balance | 39 | 40 | 61 |
Provision for unfunded lending commitments | 22 | ||
Credit for unfunded lending commitments | -1 | -21 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 61 | 39 | 40 |
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, Beginning balance | 0 | 0 | 0 |
Provision for unfunded lending commitments | 0 | ||
Credit for unfunded lending commitments | 0 | 0 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 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, Beginning balance | 0 | 0 | |
Credit for unfunded lending commitments | 0 | 0 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 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, Ending balance | 1,256 | 1,260 | 1,295 |
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, Ending balance | 605 | 537 | 549 |
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, Ending balance | 651 | 723 | 657 |
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, Ending balance | $0 | $89 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $1,413 | $1,439 |
Formula-based evaluation | 91,997 | 84,420 |
Investment in loan balance | 93,410 | 85,859 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 1,208 | 1,200 |
Formula-based evaluation | 48,976 | 45,264 |
Investment in loan balance | 50,184 | 46,464 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 205 | 239 |
Formula-based evaluation | 43,021 | 39,156 |
Investment in loan balance | $43,226 | $39,395 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $129 | $131 |
Formula-based evaluation | 1,127 | 1,129 |
Allowance for credit losses | 1,256 | 1,260 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 20 | 23 |
Formula-based evaluation | 585 | 514 |
Allowance for credit losses | 605 | 537 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 109 | 108 |
Formula-based evaluation | 542 | 615 |
Allowance for credit losses | $651 | $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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $93,410 | $85,859 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 43,226 | 39,395 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 31,431 | 28,667 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 7,809 | 6,948 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 3,986 | 3,780 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 41,300 | 37,478 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 30,022 | 27,433 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 7,354 | 6,366 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 3,924 | 3,679 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,217 | 967 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 876 | 588 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 329 | 339 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 12 | 40 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 538 | 718 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 427 | 541 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 61 | 116 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 50 | 61 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 171 | 232 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 106 | 105 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 65 | 127 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $0 | $0 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Investment in loan balance | $93,410 | $85,859 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Investment in loan balance | 50,184 | 46,464 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 11,352 | 9,236 | ||
1-29 Days Past Due | 114 | 114 | ||
30-89 Days Past Due | 97 | 115 | ||
90 Days or More Past Due | 269 | 261 | ||
Investment in loan balance | 11,832 | 9,726 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 2,997 | 3,808 | ||
1-29 Days Past Due | 222 | 257 | ||
30-89 Days Past Due | 60 | 68 | ||
90 Days or More Past Due | 145 | 168 | ||
Investment in loan balance | 3,424 | 4,301 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 14,705 | 14,868 | ||
1-29 Days Past Due | 447 | 490 | ||
30-89 Days Past Due | 73 | 76 | ||
90 Days or More Past Due | 198 | 233 | ||
Investment in loan balance | 15,423 | 15,667 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,101 | [1] | 1,340 | [1] |
1-29 Days Past Due | 78 | [1] | 84 | [1] |
30-89 Days Past Due | 26 | [1] | 32 | [1] |
90 Days or More Past Due | 23 | [1] | 36 | [1] |
Investment in loan balance | 1,228 | [1] | 1,492 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 455 | [1] | 561 | [1] |
1-29 Days Past Due | 66 | [1] | 83 | [1] |
30-89 Days Past Due | 10 | [1] | 11 | [1] |
90 Days or More Past Due | 19 | [1] | 24 | [1] |
Investment in loan balance | 550 | [1] | 679 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 11,839 | 8,863 | ||
1-29 Days Past Due | 758 | 481 | ||
30-89 Days Past Due | 93 | 44 | ||
90 Days or More Past Due | 16 | 9 | ||
Investment in loan balance | 12,706 | 9,397 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 2,106 | 2,012 | ||
1-29 Days Past Due | 108 | 118 | ||
30-89 Days Past Due | 25 | 45 | ||
90 Days or More Past Due | 17 | 33 | ||
Investment in loan balance | 2,256 | 2,208 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,615 | 1,581 | ||
1-29 Days Past Due | 39 | 67 | ||
30-89 Days Past Due | 22 | 22 | ||
90 Days or More Past Due | 17 | 21 | ||
Investment in loan balance | 1,693 | 1,691 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 985 | 1,205 | ||
1-29 Days Past Due | 65 | 69 | ||
30-89 Days Past Due | 18 | 22 | ||
90 Days or More Past Due | 4 | 7 | ||
Investment in loan balance | 1,072 | 1,303 | ||
Total retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 47,155 | 43,474 | ||
1-29 Days Past Due | 1,897 | 1,763 | ||
30-89 Days Past Due | 424 | 435 | ||
90 Days or More Past Due | 708 | 792 | ||
Investment in loan balance | $50,184 | $46,464 | ||
[1] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | $1,093 | $1,383 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 8 | 33 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 1,101 | 1,416 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 163 | 265 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 1 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 164 | 265 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 113 | 96 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 1 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 114 | 96 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 50 | 169 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 50 | 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 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 930 | 1,118 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 7 | 33 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 937 | 1,151 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 345 | 382 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 345 | 382 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 203 | 266 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 203 | 266 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 257 | 333 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 257 | 333 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 47 | [1] | 59 | [1] |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | [1] | 0 | [1] |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 47 | [1] | 59 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 25 | [1] | 30 | [1] |
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | [1] | 0 | [1] |
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 25 | [1] | 30 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 21 | 16 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 21 | 16 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 11 | 3 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 6 | 31 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 17 | 34 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 16 | 19 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 1 | 2 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 17 | 21 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 5 | 10 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | $5 | $10 | ||
[1] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO9
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) (USD $) | Dec. 31, 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) | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 1.18% | 1.65% |
Nonperforming assets as a percentage of total assets | 0.86% | 1.20% |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.18% | 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 | 0.73% | 0.97% |
Recovered_Sheet2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | $510 | $554 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 872 | 1,057 | ||
Impaired Financing Receivables, Total Past Due | 1,382 | 1,611 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 86 | 119 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 164 | 265 | ||
Impaired Financing Receivables, Total Past Due | 250 | 384 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 57 | 61 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 114 | 96 | ||
Impaired Financing Receivables, Total Past Due | 171 | 157 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 26 | 34 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 50 | 169 | ||
Impaired Financing Receivables, Total Past Due | 76 | 203 | ||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 3 | 24 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 0 | 0 | ||
Impaired Financing Receivables, Total Past Due | 3 | 24 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 424 | 435 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 708 | 792 | ||
Impaired Financing Receivables, Total Past Due | 1,132 | 1,227 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 97 | 115 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 269 | 261 | ||
Impaired Financing Receivables, Total Past Due | 366 | 376 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 60 | 68 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 145 | 168 | ||
Impaired Financing Receivables, Total Past Due | 205 | 236 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 73 | 76 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 198 | 233 | ||
Impaired Financing Receivables, Total Past Due | 271 | 309 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 26 | [1] | 32 | [1] |
Impaired Financing Receivables, 90 Days or More Past Due | 23 | [1] | 36 | [1] |
Impaired Financing Receivables, Total Past Due | 49 | [1] | 68 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 10 | [1] | 11 | [1] |
Impaired Financing Receivables, 90 Days or More Past Due | 19 | [1] | 24 | [1] |
Impaired Financing Receivables, Total Past Due | 29 | [1] | 35 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 93 | 44 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 16 | 9 | ||
Impaired Financing Receivables, Total Past Due | 109 | 53 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 25 | 45 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 17 | 33 | ||
Impaired Financing Receivables, Total Past Due | 42 | 78 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 22 | 22 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 17 | 21 | ||
Impaired Financing Receivables, Total Past Due | 39 | 43 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 18 | 22 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 4 | 7 | ||
Impaired Financing Receivables, Total Past Due | $22 | $29 | ||
[1] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Recovered_Sheet3
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | $789 | $832 | ||
Allowance on Impaired Loans | 129 | 131 | ||
Impaired Loans Without a Related Allowance | 624 | 607 | ||
Unpaid Contractual Balance | 1,727 | 1,885 | ||
Total Recorded Investment in Impaired Loans | 1,413 | 1,439 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 131 | 162 | ||
Allowance on Impaired Loans | 20 | 23 | ||
Impaired Loans Without a Related Allowance | 74 | 77 | ||
Unpaid Contractual Balance | 240 | 435 | ||
Total Recorded Investment in Impaired Loans | 205 | 239 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 124 | 86 | ||
Allowance on Impaired Loans | 19 | 15 | ||
Impaired Loans Without a Related Allowance | 36 | 33 | ||
Unpaid Contractual Balance | 178 | 214 | ||
Total Recorded Investment in Impaired Loans | 160 | 119 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 7 | 76 | ||
Allowance on Impaired Loans | 1 | 8 | ||
Impaired Loans Without a Related Allowance | 38 | 44 | ||
Unpaid Contractual Balance | 62 | 221 | ||
Total Recorded Investment in Impaired Loans | 45 | 120 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 658 | 670 | ||
Allowance on Impaired Loans | 109 | 108 | ||
Impaired Loans Without a Related Allowance | 550 | 530 | ||
Unpaid Contractual Balance | 1,487 | 1,450 | ||
Total Recorded Investment in Impaired Loans | 1,208 | 1,200 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 157 | 174 | ||
Allowance on Impaired Loans | 18 | 42 | ||
Impaired Loans Without a Related Allowance | 288 | 267 | ||
Unpaid Contractual Balance | 605 | 588 | ||
Total Recorded Investment in Impaired Loans | 445 | 441 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 129 | 104 | ||
Allowance on Impaired Loans | 11 | 17 | ||
Impaired Loans Without a Related Allowance | 141 | 143 | ||
Unpaid Contractual Balance | 335 | 301 | ||
Total Recorded Investment in Impaired Loans | 270 | 247 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 75 | 77 | ||
Allowance on Impaired Loans | 3 | 0 | ||
Impaired Loans Without a Related Allowance | 86 | 87 | ||
Unpaid Contractual Balance | 193 | 192 | ||
Total Recorded Investment in Impaired Loans | 161 | 164 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 75 | [1] | 86 | [1] |
Allowance on Impaired Loans | 9 | [1] | 10 | [1] |
Impaired Loans Without a Related Allowance | 16 | [1] | 14 | [1] |
Unpaid Contractual Balance | 102 | [1] | 110 | [1] |
Total Recorded Investment in Impaired Loans | 91 | [1] | 100 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 4 | [1] | 5 | [1] |
Allowance on Impaired Loans | 1 | [1] | 1 | [1] |
Impaired Loans Without a Related Allowance | 7 | [1] | 7 | [1] |
Unpaid Contractual Balance | 14 | [1] | 15 | [1] |
Total Recorded Investment in Impaired Loans | 11 | [1] | 12 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 2 | 2 | ||
Allowance on Impaired Loans | 1 | 0 | ||
Impaired Loans Without a Related Allowance | 9 | 8 | ||
Unpaid Contractual Balance | 16 | 15 | ||
Total Recorded Investment in Impaired Loans | 11 | 10 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 167 | 159 | ||
Allowance on Impaired Loans | 48 | 21 | ||
Impaired Loans Without a Related Allowance | 0 | 0 | ||
Unpaid Contractual Balance | 167 | 159 | ||
Total Recorded Investment in Impaired Loans | 167 | 159 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 32 | 42 | ||
Allowance on Impaired Loans | 13 | 14 | ||
Impaired Loans Without a Related Allowance | 0 | 0 | ||
Unpaid Contractual Balance | 32 | 42 | ||
Total Recorded Investment in Impaired Loans | 32 | 42 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 17 | 21 | ||
Allowance on Impaired Loans | 5 | 3 | ||
Impaired Loans Without a Related Allowance | 3 | 4 | ||
Unpaid Contractual Balance | 23 | 28 | ||
Total Recorded Investment in Impaired Loans | $20 | $25 | ||
[1] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Recovered_Sheet4
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | $53 | $32 | $15 | |||
Average Recorded Investment | 1,434 | 1,371 | 1,231 | |||
Commercial Banking | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 11 | 2 | 2 | |||
Average Recorded Investment | 296 | 306 | 586 | |||
Commercial | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 9 | 1 | 1 | |||
Average Recorded Investment | 198 | 157 | 276 | |||
Commercial real estate | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 2 | 1 | 1 | |||
Average Recorded Investment | 98 | 149 | 310 | |||
Retail | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 42 | 30 | 13 | |||
Average Recorded Investment | 1,138 | 1,065 | 645 | |||
Residential mortgages | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 14 | 7 | 4 | |||
Average Recorded Investment | 429 | 419 | 236 | |||
Home equity loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 8 | 5 | 2 | |||
Average Recorded Investment | 246 | 228 | 200 | |||
Home equity lines of credit | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 4 | 2 | 0 | |||
Average Recorded Investment | 149 | 90 | 38 | |||
Home equity loans serviced by others | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 5 | [1] | 5 | [1] | 6 | [1] |
Average Recorded Investment | 91 | [1] | 102 | [1] | 118 | [1] |
Home equity lines of credit serviced by others | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 0 | [1] | 0 | [1] | 0 | [1] |
Average Recorded Investment | 11 | [1] | 12 | [1] | 9 | [1] |
Automobile | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 0 | 0 | 0 | |||
Average Recorded Investment | 7 | 8 | 5 | |||
Student | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 8 | 7 | 0 | |||
Average Recorded Investment | 153 | 140 | 11 | |||
Credit cards | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 2 | 3 | 0 | |||
Average Recorded Investment | 31 | 41 | 0 | |||
Other retail | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Interest Income Recognized | 1 | 1 | 1 | |||
Average Recorded Investment | $21 | $25 | $28 | |||
[1] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Recovered_Sheet5
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | $1 | $5 | ($68) | |||
Charge-offs Resulting from Modification | 16 | 32 | 84 | |||
Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 2,581 | [1] | 3,573 | [1] | 3,596 | [1] |
Pre-Modification Outstanding Recorded Investment | 49 | [1] | 87 | [1] | 136 | [1] |
Post-Modification Outstanding Recorded Investment | 50 | [1] | 89 | [1] | 139 | [1] |
Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 566 | [2] | 2,366 | [2] | 314 | [2] |
Pre-Modification Outstanding Recorded Investment | 52 | [2] | 110 | [2] | 54 | [2] |
Post-Modification Outstanding Recorded Investment | 51 | [2] | 101 | [2] | 53 | [2] |
Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 4,771 | [3] | 6,606 | [3] | 18,689 | [3] |
Pre-Modification Outstanding Recorded Investment | 251 | [3] | 253 | [3] | 771 | [3] |
Post-Modification Outstanding Recorded Investment | 262 | [3] | 232 | [3] | 709 | [3] |
Commercial Banking | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 3 | -2 | -55 | |||
Charge-offs Resulting from Modification | 3 | 1 | 16 | |||
Commercial Banking | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 34 | [1] | 137 | [1] | 22 | [1] |
Pre-Modification Outstanding Recorded Investment | 9 | [1] | 20 | [1] | 22 | [1] |
Post-Modification Outstanding Recorded Investment | 9 | [1] | 20 | [1] | 22 | [1] |
Commercial Banking | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 146 | [2] | 137 | [2] | 114 | [2] |
Pre-Modification Outstanding Recorded Investment | 24 | [2] | 19 | [2] | 39 | [2] |
Post-Modification Outstanding Recorded Investment | 24 | [2] | 19 | [2] | 37 | [2] |
Commercial Banking | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 28 | [3] | 7 | [3] | 196 | [3] |
Pre-Modification Outstanding Recorded Investment | 59 | [3] | 1 | [3] | 115 | [3] |
Post-Modification Outstanding Recorded Investment | 81 | [3] | 1 | [3] | 120 | [3] |
Commercial | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 3 | 0 | -29 | |||
Charge-offs Resulting from Modification | 0 | 1 | 14 | |||
Commercial | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 25 | [1] | 126 | [1] | 18 | [1] |
Pre-Modification Outstanding Recorded Investment | 8 | [1] | 13 | [1] | 13 | [1] |
Post-Modification Outstanding Recorded Investment | 7 | [1] | 13 | [1] | 13 | [1] |
Commercial | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 131 | [2] | 134 | [2] | 108 | [2] |
Pre-Modification Outstanding Recorded Investment | 21 | [2] | 18 | [2] | 25 | [2] |
Post-Modification Outstanding Recorded Investment | 22 | [2] | 18 | [2] | 24 | [2] |
Commercial | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 27 | [3] | 6 | [3] | 180 | [3] |
Pre-Modification Outstanding Recorded Investment | 52 | [3] | 1 | [3] | 43 | [3] |
Post-Modification Outstanding Recorded Investment | 74 | [3] | 1 | [3] | 46 | [3] |
Commercial real estate | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 0 | -2 | -26 | |||
Charge-offs Resulting from Modification | 3 | 0 | 2 | |||
Commercial real estate | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 9 | [1] | 11 | [1] | 4 | [1] |
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 7 | [1] | 9 | [1] |
Post-Modification Outstanding Recorded Investment | 2 | [1] | 7 | [1] | 9 | [1] |
Commercial real estate | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 15 | [2] | 3 | [2] | 6 | [2] |
Pre-Modification Outstanding Recorded Investment | 3 | [2] | 1 | [2] | 14 | [2] |
Post-Modification Outstanding Recorded Investment | 2 | [2] | 1 | [2] | 13 | [2] |
Commercial real estate | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1 | [3] | 1 | [3] | 16 | [3] |
Pre-Modification Outstanding Recorded Investment | 7 | [3] | 0 | [3] | 72 | [3] |
Post-Modification Outstanding Recorded Investment | 7 | [3] | 0 | [3] | 74 | [3] |
Retail | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | -2 | 7 | -13 | |||
Charge-offs Resulting from Modification | 13 | 31 | 68 | |||
Retail | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 2,547 | [1] | 3,436 | [1] | 3,574 | [1] |
Pre-Modification Outstanding Recorded Investment | 40 | [1] | 67 | [1] | 114 | [1] |
Post-Modification Outstanding Recorded Investment | 41 | [1] | 69 | [1] | 117 | [1] |
Retail | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 420 | [2] | 2,229 | [2] | 200 | [2] |
Pre-Modification Outstanding Recorded Investment | 28 | [2] | 91 | [2] | 15 | [2] |
Post-Modification Outstanding Recorded Investment | 27 | [2] | 82 | [2] | 16 | [2] |
Retail | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 4,743 | [3] | 6,599 | [3] | 18,493 | [3] |
Pre-Modification Outstanding Recorded Investment | 192 | [3] | 252 | [3] | 656 | [3] |
Post-Modification Outstanding Recorded Investment | 181 | [3] | 231 | [3] | 589 | [3] |
Residential mortgages | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | -4 | 5 | -4 | [4] | ||
Charge-offs Resulting from Modification | 1 | 2 | 9 | |||
Residential mortgages | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 126 | [1] | 200 | [1] | 346 | [1] |
Pre-Modification Outstanding Recorded Investment | 17 | [1] | 32 | [1] | 77 | [1] |
Post-Modification Outstanding Recorded Investment | 17 | [1] | 33 | [1] | 80 | [1] |
Residential mortgages | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 40 | [2] | 46 | [2] | 36 | [2] |
Pre-Modification Outstanding Recorded Investment | 6 | [2] | 5 | [2] | 4 | [2] |
Post-Modification Outstanding Recorded Investment | 5 | [2] | 6 | [2] | 5 | [2] |
Residential mortgages | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 393 | [3] | 430 | [3] | 2,331 | [3] |
Pre-Modification Outstanding Recorded Investment | 47 | [3] | 64 | [3] | 203 | [3] |
Post-Modification Outstanding Recorded Investment | 46 | [3] | 63 | [3] | 195 | [3] |
Home equity loans | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | -1 | 2 | -2 | [4] | ||
Charge-offs Resulting from Modification | 2 | 5 | 14 | |||
Home equity loans | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 125 | [1] | 196 | [1] | 218 | [1] |
Pre-Modification Outstanding Recorded Investment | 8 | [1] | 15 | [1] | 18 | [1] |
Post-Modification Outstanding Recorded Investment | 9 | [1] | 16 | [1] | 19 | [1] |
Home equity loans | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 85 | [2] | 94 | [2] | 48 | [2] |
Pre-Modification Outstanding Recorded Investment | 5 | [2] | 6 | [2] | 4 | [2] |
Post-Modification Outstanding Recorded Investment | 6 | [2] | 6 | [2] | 5 | [2] |
Home equity loans | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1,046 | [3] | 995 | [3] | 2,336 | [3] |
Pre-Modification Outstanding Recorded Investment | 63 | [3] | 57 | [3] | 130 | [3] |
Post-Modification Outstanding Recorded Investment | 62 | [3] | 51 | [3] | 117 | [3] |
Home equity lines of credit | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | [4] | ||
Charge-offs Resulting from Modification | 5 | 16 | 20 | |||
Home equity lines of credit | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 7 | [1] | 18 | [1] | 1 | [1] |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 0 | [1] |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 1 | [1] | 0 | [1] |
Home equity lines of credit | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 276 | [2] | 2,081 | [2] | 109 | [2] |
Pre-Modification Outstanding Recorded Investment | 17 | [2] | 80 | [2] | 6 | [2] |
Post-Modification Outstanding Recorded Investment | 16 | [2] | 70 | [2] | 6 | [2] |
Home equity lines of credit | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 356 | [3] | 771 | [3] | 1,554 | [3] |
Pre-Modification Outstanding Recorded Investment | 25 | [3] | 53 | [3] | 92 | [3] |
Post-Modification Outstanding Recorded Investment | 21 | [3] | 46 | [3] | 72 | [3] |
Home equity loans serviced by others | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | -1 | [5] | 0 | [5] | -8 | [4],[5] |
Charge-offs Resulting from Modification | 0 | [5] | 3 | [5] | 13 | [5] |
Home equity loans serviced by others | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 42 | [1],[5] | 31 | [1],[5] | 41 | [1],[5] |
Pre-Modification Outstanding Recorded Investment | 2 | [1],[5] | 2 | [1],[5] | 2 | [1],[5] |
Post-Modification Outstanding Recorded Investment | 2 | [1],[5] | 2 | [1],[5] | 2 | [1],[5] |
Home equity loans serviced by others | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 0 | [2],[5] | 5 | [2],[5] | 7 | [2],[5] |
Pre-Modification Outstanding Recorded Investment | 0 | [2],[5] | 0 | [2],[5] | 1 | [2],[5] |
Post-Modification Outstanding Recorded Investment | 0 | [2],[5] | 0 | [2],[5] | 0 | [2],[5] |
Home equity loans serviced by others | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 138 | [3],[5] | 269 | [3],[5] | 1,192 | [3],[5] |
Pre-Modification Outstanding Recorded Investment | 5 | [3],[5] | 12 | [3],[5] | 50 | [3],[5] |
Post-Modification Outstanding Recorded Investment | 5 | [3],[5] | 10 | [3],[5] | 37 | [3],[5] |
Home equity lines of credit serviced by others | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 0 | [5] | 0 | [5] | 0 | [4],[5] |
Charge-offs Resulting from Modification | 0 | [5] | 1 | [5] | 4 | [5] |
Home equity lines of credit serviced by others | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 4 | [1],[5] | 3 | [1],[5] | 3 | [1],[5] |
Pre-Modification Outstanding Recorded Investment | 0 | [1],[5] | 0 | [1],[5] | 0 | [1],[5] |
Post-Modification Outstanding Recorded Investment | 0 | [1],[5] | 0 | [1],[5] | 0 | [1],[5] |
Home equity lines of credit serviced by others | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1 | [2],[5] | 1 | [2],[5] | 0 | [2],[5] |
Pre-Modification Outstanding Recorded Investment | 0 | [2],[5] | 0 | [2],[5] | 0 | [2],[5] |
Post-Modification Outstanding Recorded Investment | 0 | [2],[5] | 0 | [2],[5] | 0 | [2],[5] |
Home equity lines of credit serviced by others | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 39 | [3],[5] | 43 | [3],[5] | 322 | [3],[5] |
Pre-Modification Outstanding Recorded Investment | 2 | [3],[5] | 2 | [3],[5] | 17 | [3],[5] |
Post-Modification Outstanding Recorded Investment | 2 | [3],[5] | 1 | [3],[5] | 13 | [3],[5] |
Automobile | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 0 | 0 | -4 | [4] | ||
Charge-offs Resulting from Modification | 5 | 3 | 4 | |||
Automobile | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 75 | [1] | 238 | [1] | ||
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 2 | [1] | ||
Post-Modification Outstanding Recorded Investment | 1 | [1] | 2 | [1] | ||
Automobile | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 18 | [2] | 2 | [2] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | ||
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | ||
Automobile | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1,039 | [3] | 1,323 | [3] | 2,938 | [3] |
Pre-Modification Outstanding Recorded Investment | 17 | [3] | 13 | [3] | 19 | [3] |
Post-Modification Outstanding Recorded Investment | 13 | [3] | 10 | [3] | 14 | [3] |
Student | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 5 | 0 | 3 | [4] | ||
Charge-offs Resulting from Modification | 0 | 0 | 0 | |||
Student | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1,675 | [3] | 2,620 | [3] | 7,557 | [3] |
Pre-Modification Outstanding Recorded Investment | 31 | [3] | 48 | [3] | 139 | [3] |
Post-Modification Outstanding Recorded Investment | 31 | [3] | 47 | [3] | 138 | [3] |
Credit cards | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | 2 | [4] | ||||
Charge-offs Resulting from Modification | 0 | |||||
Credit cards | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 2,165 | [1] | 2,729 | [1] | 2,965 | [1] |
Pre-Modification Outstanding Recorded Investment | 12 | [1] | 15 | [1] | 17 | [1] |
Post-Modification Outstanding Recorded Investment | 12 | [1] | 15 | [1] | 16 | [1] |
Credit cards | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 0 | [2] | 0 | [2] | 0 | [2] |
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] |
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | 0 | [2] |
Credit cards | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 0 | [3] | ||||
Pre-Modification Outstanding Recorded Investment | 0 | [3] | ||||
Post-Modification Outstanding Recorded Investment | 0 | [3] | ||||
Other retail | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Net Change to ALLL Resulting from Modification | -1 | 0 | 0 | [4] | ||
Charge-offs Resulting from Modification | 0 | 1 | 4 | |||
Other retail | Interest Rate Reduction | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 3 | [1] | 21 | [1] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] | ||
Post-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] | ||
Other retail | Maturity Extension | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 0 | [2] | 0 | [2] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | ||
Post-Modification Outstanding Recorded Investment | 0 | [2] | 0 | [2] | ||
Other retail | Other | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 57 | [3] | 148 | [3] | 263 | [3] |
Pre-Modification Outstanding Recorded Investment | 2 | [3] | 3 | [3] | 6 | [3] |
Post-Modification Outstanding Recorded Investment | $1 | [3] | $3 | [3] | $3 | [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. | |||||
[4] | Retail data is estimated for certain loan classes. | |||||
[5] | The Company's SBO portfolio consists of home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Recovered_Sheet6
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
contract | contract | contract | ||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 2,037 | 3,584 | 1,705 | |||
Balance Defaulted | $97 | $153 | $109 | |||
Commercial Banking | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 40 | 21 | 5 | |||
Balance Defaulted | 13 | 2 | 8 | |||
Commercial | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 37 | 18 | 4 | |||
Balance Defaulted | 12 | 1 | 3 | |||
Commercial real estate | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 3 | 3 | 1 | |||
Balance Defaulted | 1 | 1 | 5 | |||
Retail | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 1,997 | 3,563 | 1,700 | |||
Balance Defaulted | 84 | 151 | 101 | |||
Residential mortgages | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 301 | 526 | 208 | |||
Balance Defaulted | 35 | 60 | 35 | |||
Home equity loans | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 329 | 740 | 318 | |||
Balance Defaulted | 24 | 43 | 31 | |||
Home equity lines of credit | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 229 | 394 | 187 | |||
Balance Defaulted | 12 | 21 | 15 | |||
Home equity loans serviced by others | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 60 | [1] | 187 | [1] | 194 | [1] |
Balance Defaulted | 2 | [1] | 3 | [1] | 14 | [1] |
Home equity lines of credit serviced by others | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 20 | [1] | 42 | [1] | 14 | [1] |
Balance Defaulted | 0 | [1] | 2 | [1] | 1 | [1] |
Automobile | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 112 | 208 | 143 | |||
Balance Defaulted | 1 | 1 | 1 | |||
Student | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 355 | 885 | 0 | |||
Balance Defaulted | 7 | 17 | 0 | |||
Credit cards | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 579 | 548 | 628 | |||
Balance Defaulted | 3 | 3 | 4 | |||
Other retail | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of Contracts | 12 | 33 | 8 | |||
Balance Defaulted | $0 | $1 | $0 | |||
[1] | The Company's SBO portfolio consists of loans that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Recovered_Sheet7
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $3,541 | $5,433 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 773 | 1,054 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,743 | 2,798 |
High loan-to-value | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,025 | 1,581 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Interest only/negative amortization | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 894 | 882 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 894 | 882 |
Interest only/negative amortization | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Interest only/negative amortization | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Interest only/negative amortization | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Low introductory rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 98 | 119 |
Low introductory rate | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Low introductory rate | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 98 | 119 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 24 | 96 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 24 | 96 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Multiple characteristics and other | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Multiple characteristics and other | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 0 | 0 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 4,557 | 6,530 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,691 | 2,032 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,743 | 2,798 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,025 | 1,581 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $98 | $119 |
PREMISES_EQUIPMENT_AND_SOFTWAR2
PREMISES, EQUIPMENT, AND SOFTWARE - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
sale-leaseback | sale-leaseback | sale-leaseback | |
Capital Leases of Lessee [Abstract] | |||
Book value of capital leased assets | $46 | $45 | |
Capital leased assets accumulated depreciation | 22 | 17 | |
Depreciation expense | 117 | 138 | 163 |
Sale Leaseback Transaction | |||
Sale leaseback transaction term | 10 years | ||
Gain on sale leaseback transaction | 15 | ||
Deferred gain on sale leaseback transaction | 14 | ||
Number of sale-leaseback transactions entered into during period | 0 | 1 | 0 |
Capitalized Software | |||
Capitalized software assets, net | 754 | 729 | |
Amortization of software | $145 | $102 | $77 |
PREMISES_EQUIPMENT_AND_SOFTWAR3
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Premises and Equipment (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $2,246 | $2,267 |
Less: accumulated depreciation | 1,651 | 1,675 |
Total premises and equipment, net | 595 | 592 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years | |
Total premises and equipment, gross | 26 | 33 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | 607 | 636 |
Buildings and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | |
Buildings and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years | |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $1,613 | $1,598 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years |
PREMISES_EQUIPMENT_AND_SOFTWAR4
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Amortization (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Capitalized Software, Expected Future Amortization Expense [Abstract] | ||
2015 | $127 | |
2016 | 110 | |
2017 | 93 | |
2018 | 72 | |
2019 | 41 | |
Thereafter | 130 | |
Total | 573 | [1] |
In-process software | $181 | |
[1] | Excluded from this balance is $181 million of in-process software at December 31, 2014. |
LEASE_COMMITMENTS_Narrative_De
LEASE COMMITMENTS - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Rent expense for operating leases and capital leases | $214 | $224 | $203 |
LEASE_COMMITMENTS_Aggregate_Mi
LEASE COMMITMENTS - Aggregate Minimum Rental Commitments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leases | |
2015 | $162 |
2016 | 148 |
2017 | 124 |
2018 | 92 |
2019 | 59 |
Thereafter | 167 |
Total minimum lease payments | 752 |
Capital Leases | |
2015 | 8 |
2016 | 7 |
2017 | 6 |
2018 | 2 |
2019 | 1 |
Thereafter | 9 |
Total minimum lease payments | 33 |
Amounts representing interest | -9 |
Present value of net minimum lease payments | $24 |
GOODWILL_Narrative_Details
GOODWILL -Narrative (Details) (USD $) | 12 Months Ended | 324 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2013 |
business | |||||
Goodwill [Line Items] | |||||
Number of acquisitions of banks or assets of banks | 25 | ||||
Goodwill impairment | $0 | $4,435 | $0 | ||
Consumer Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 5,900 | 5,900 | 5,900 | ||
Goodwill impairment | 4,435 | 4,400 | |||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 50 | 50 | 50 | ||
Goodwill impairment | $0 |
GOODWILL_Goodwill_Rollforward_
GOODWILL - Goodwill Rollforward (Details) (USD $) | 12 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Goodwill [Roll Forward] | ||||
Beginning balance | $6,876 | $11,311 | $11,311 | |
Goodwill impairment | 0 | -4,435 | 0 | |
Transfers | 0 | |||
Adjustments | 0 | |||
Ending balance | 6,876 | 6,876 | 11,311 | |
Consumer Banking | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 2,136 | 6,393 | 6,393 | |
Goodwill impairment | -4,435 | -4,400 | ||
Transfers | 178 | |||
Adjustments | 0 | |||
Ending balance | 2,136 | 2,136 | ||
Commercial Banking | ||||
Goodwill [Roll Forward] | ||||
Beginning balance | 4,740 | 4,918 | 4,918 | |
Goodwill impairment | 0 | |||
Transfers | -178 | |||
Adjustments | 0 | |||
Ending balance | $4,740 | $4,740 |
MORTGAGE_BANKING_Narrative_Det
MORTGAGE BANKING - Narrative (Details) (USD $) | 12 Months Ended | 72 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | $1,578 | $4,229 | $5,436 | |
Repurchased mortgage loans | 25 | 35 | 13 | 88 |
Mortgage servicing fees | 59 | 61 | 60 | |
(Recovery) impairment of mortgage servicing rights | -5 | -47 | 12 | |
Residential Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | 1,600 | 4,200 | 5,400 | |
Gain on sale of residential mortgages | $36 | $66 | $123 |
MORTGAGE_BANKING_Changes_Relat
MORTGAGE BANKING - Changes Related to MSRs (Details) (Residential Mortgages, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Residential Mortgages | |||
MSRs | |||
Balance as of January 1 | $208 | $215 | $215 |
Amount capitalized | 17 | 45 | 67 |
Amortization | -41 | -52 | -67 |
Carrying amount before valuation allowance | 184 | 208 | 215 |
Valuation allowance for servicing assets | |||
Balance as of January 1 | 23 | 70 | 58 |
Valuation (recovery) impairment | -5 | -47 | 12 |
Balance at end of period | 18 | 23 | 70 |
Net carrying value of MSRs | $166 | $185 | $145 |
MORTGAGE_BANKING_Economic_Assu
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 5 years 2 months 12 days | 5 years 4 months 24 days |
Weighted average constant prepayment rate (percent) | 12.40% | 13.00% |
Weighted average discount rate (percent) | 9.80% | 10.80% |
Residential Mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | 179 | 195 |
Weighted average life (in years) | 5 years 2 months 12 days | 5 years 4 months 24 days |
Weighted average constant prepayment rate (percent) | 12.40% | 13.00% |
Weighted average discount rate (percent) | 9.80% | 10.80% |
MORTGAGE_BANKING_Economic_Assu1
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) (Residential Mortgages) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Residential Mortgages | |||
Servicing Assets at Fair Value [Line Items] | |||
Weighted average life (in years) | 5 years 9 months 18 days | 6 years | 4 years |
Weighted average constant prepayment rate (percent) | 11.70% | 12.40% | 20.70% |
Weighted average discount rate (percent) | 10.30% | 10.50% | 10.50% |
MORTGAGE_BANKING_Sensitivity_A
MORTGAGE BANKING - Sensitivity Analysis (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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% | 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% | 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 | 9 | 9 | 11 |
Decline in fair value from 100 basis points adverse change in interest rates | 15 | 18 | 18 |
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 | 2 |
Decline in fair value from 100 basis points adverse change | 6 | 6 | 4 |
DEPOSITS_Narrative_Details
DEPOSITS - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Deposits held for sale | $0 | $5,277 |
Time deposits of $100,000 or more | $6,361 |
DEPOSITS_Major_Components_of_D
DEPOSITS - Major Components of Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deposits, by Type [Abstract] | ||
Demand | $26,086 | $24,931 |
Checking with interest | 16,394 | 13,630 |
Regular savings | 7,824 | 7,509 |
Money market accounts | 33,345 | 31,245 |
Term deposits | 12,058 | 9,588 |
Total deposits | $95,707 | $86,903 |
DEPOSITS_Maturities_of_Term_De
DEPOSITS - Maturities of Term Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2015 | $8,278 | |
2016 | 2,796 | |
2017 | 425 | |
2018 | 427 | |
2019 | 125 | |
2020 and thereafter | 7 | |
Total | $12,058 | $9,588 |
DEPOSITS_Maturities_of_Term_De1
DEPOSITS - Maturities of Term Deposits Greater than $100,000 (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | |
Three months or less | $3,244 |
After three months through six months | 454 |
After six months through twelve months | 1,091 |
After twelve months | 1,572 |
Total term deposits | $6,361 |
BORROWED_FUNDS_Narrative_Detai
BORROWED FUNDS - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $10,529,000,000 | $7,042,000,000 |
Federal Home Loan Bank Advances and Letters of Credit [Member] | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 11,300,000,000 | 4,200,000,000 |
Federal Home Loan 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 | $26,300,000,000 |
BORROWED_FUNDS_Short_Term_Debt
BORROWED FUNDS - Short Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $10,529 | $7,042 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 574 | 689 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 3,702 | 4,102 |
Other short-term borrowed funds | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $6,253 | $2,251 |
BORROWED_FUNDS_Short_Term_Borr
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal funds purchased and securities sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 0.14% | 0.09% | 0.10% |
Maximum amount outstanding at month-end during the period | $7,022 | $5,114 | $4,393 |
Average amount outstanding during the period | 5,699 | 2,400 | 2,716 |
Weighted-average interest rate during the period | 0.12% | 0.31% | 0.22% |
Other short-term borrowed funds | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 0.26% | 0.20% | 0.29% |
Maximum amount outstanding at month-end during the period | 7,702 | 2,251 | 5,050 |
Average amount outstanding during the period | $5,640 | $251 | $3,026 |
Weighted-average interest rate during the period | 0.25% | 0.44% | 0.33% |
BORROWED_FUNDS_Long_Term_Debt_
BORROWED FUNDS - Long Term Debt (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $4,642 | $1,405 | ||
Derivative | 790 | 778 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 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 | |||
Subordinated Debt | Citizens Financial Group, Inc. | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 333 | [1] | 333 | [1] |
Interest rate | 5.16% | [1] | ||
Maturity date | 30-Jun-23 | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.56% | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.771% fixed rate subordinated debt, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 333 | [1] | 333 | [1] |
Interest rate | 4.77% | [1] | ||
Maturity date | 31-Oct-23 | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.691% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 334 | [1] | 334 | [1] |
Interest rate | 4.69% | [1] | ||
Maturity date | 31-Jan-24 | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.153% fixed rate subordinated debt due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 333 | [1] | 0 | [1] |
Interest rate | 4.15% | [1] | ||
Maturity date | 31-Jul-24 | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.023% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 333 | [1] | 0 | [1] |
Interest rate | 4.02% | [1] | ||
Maturity date | 31-Oct-24 | [1] | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.082% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 334 | [1] | 0 | [1] |
Interest rate | 4.08% | [1] | ||
Maturity date | 1-Jan-25 | [1] | ||
Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | 750 | [2],[3] | ||
Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | Hedge of interest rate risk | ||||
Debt Instrument [Line Items] | ||||
Derivative | 4 | |||
Senior Unsecured Notes | Banking Subsidiaries | 1.600% senior unsecured notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 750 | [2] | 0 | [2] |
Interest rate | 1.60% | [2] | ||
Maturity date | 1-Jan-17 | [2] | ||
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 746 | [2],[3] | 0 | [2],[3] |
Interest rate | 2.45% | [2] | ||
Maturity date | 1-Jan-19 | [2] | ||
Federal Home Loan advances | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 772 | 25 | ||
Maturity date | 1-Jan-33 | |||
Other | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $24 | $30 | ||
[1] | Intercompany borrowed funds with RBS Group. See Note 18 “Related Party Transactions†for further information. | |||
[2] | These securities were offered under CBNA's Global Bank Note Program dated December 1, 2014. | |||
[3] | principal balance of unsecured notes presented net of $4 million hedge of interest rate risk on medium term debt using interest rate swaps. See Note 15 “Derivatives†for further information. |
BORROWED_FUNDS_Maturities_of_L
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 or on demand | $0 | |
2016 | 755 | |
2017 | 762 | |
2018 | 11 | |
2019 | 747 | |
2020 and thereafter | 2,367 | |
Total | $4,642 | $1,405 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 08, 2014 | Apr. 08, 2014 |
Preferred Stock | ||||||
Number of shares of preferred stock authorized | 100,000,000 | 100,000,000 | 30,000 | |||
Preferred stock par value (in Dollars per Share) | $25 | $25 | $1 | |||
Treasury Stock | ||||||
Long-term borrowed funds | $4,642 | $4,642 | $1,405 | |||
Shares repurchased (in shares) | 80,358 | |||||
Cost of stock repurchase | 2 | 334 | 0 | 0 | ||
Shares repurchased, price per share (in dollars per share) | $25.03 | |||||
RBSG | ||||||
Treasury Stock | ||||||
Shares repurchased (in shares) | 14,297,761 | |||||
Cost of stock repurchase | 334 | |||||
Shares repurchased, price per share (in dollars per share) | $23.36 | |||||
RBSG | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | ||||||
Treasury Stock | ||||||
Long-term borrowed funds | $334 | $334 | $0 | |||
Debt term | 10 years | |||||
Interest rate | 4.08% | 4.08% | ||||
Noncumulative Preferred Stock | ||||||
Preferred Stock | ||||||
Number of shares of preferred stock authorized | 30,000 | |||||
Preferred stock par value (in Dollars per Share) | 1 | |||||
Preferred stock redemption price (in Dollars per Share) | 100,000 | |||||
Noncumulative Preferred Stock | LIBOR | ||||||
Preferred Stock | ||||||
Dividend variable rate | 1.80% |
EMPLOYEE_BENEFITS_Narrative_De
EMPLOYEE BENEFITS - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2015 | Mar. 31, 2015 | Sep. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2011 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Lump Sum payments | $196,000,000 | |||||||||
Reduction of defined benefit obligation | 240,000,000 | |||||||||
Settlement charge | 92,000,000 | |||||||||
Amortization of actuarial loss | 10,000,000 | [1] | 14,000,000 | 38,000,000 | ||||||
Settlements recognized in OCI | 0 | [1] | 0 | 92,000,000 | ||||||
Fair value of plan assets | 923,000,000 | 1,031,000,000 | ||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Funded status of plan | 14,000,000 | 27,000,000 | ||||||||
Recognized in other comprehensive income | 192,000,000 | [1] | -188,000,000 | 40,000,000 | ||||||
Postemployment Benefits | ||||||||||
(Benefit) cost | -1,000,000 | -3,000,000 | -1,000,000 | |||||||
401(k) Plan | ||||||||||
Employer matching contribution, Percent of employees' pay | 5.00% | 3.00% | ||||||||
Employer matching contribution percentage | 100.00% | |||||||||
Employer matching contribution, Change | 2.00% | |||||||||
Employer contribution amount | 60,000,000 | 70,000,000 | 60,000,000 | |||||||
Subsequent Event | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Amortization of actuarial loss | 15,000,000 | |||||||||
401(k) Plan | ||||||||||
Employer matching contribution, Percent of employees' pay | 4.00% | |||||||||
Managed portfolio | Derivative liabilities - interest rate swaps | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Fair value of plan assets | -1,000,000 | |||||||||
Managed portfolio | Derivative liabilities - interest rate swaps | Eurodollar futures | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Fair value of plan assets | 324,000,000 | |||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Unrealized Gain (Loss) on Derivatives | 1,000,000 | |||||||||
Citizens Financial Group, Inc. | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Settlements recognized in OCI | 77,000,000 | |||||||||
RBS | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Payment made due to divestiture of portion of plans associated with affiliates | 1,000,000 | |||||||||
Qualified Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Assets transferred to Affiliate plans | 129,000,000 | [2] | 0 | 0 | 129,000,000 | |||||
Liabilities transferred to Affiliate plans | 148,000,000 | 148,000,000 | ||||||||
Lump Sum payments | 146,000,000 | |||||||||
Amortization of actuarial loss | 9,000,000 | [1] | 13,000,000 | 35,000,000 | ||||||
Fair value of plan assets | 923,000,000 | [2] | 1,031,000,000 | [2] | 998,000,000 | 1,106,000,000 | ||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Accumulated benefit obligation | 1,093,000,000 | [2] | 1,026,000,000 | 1,185,000,000 | ||||||
Employer contributions | 0 | [2] | 0 | 0 | ||||||
Estimated employer contributions in 2015 | 100,000,000 | |||||||||
Discount rate used in determining actuarial present value of benefit obligation | 4.13% | 5.00% | 4.13% | |||||||
Postretirement Benefit Plan | ||||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Accumulated benefit obligation | 14,000,000 | 27,000,000 | ||||||||
Recognized in other comprehensive income | 1,000,000 | 367,000 | ||||||||
Employer contributions | 3,000,000 | 3,000,000 | 2,000,000 | |||||||
Estimated employer contributions in 2015 | 1,000,000 | |||||||||
Discount rate used in determining actuarial present value of benefit obligation | 3.50% | 4.63% | ||||||||
Health care cost trend rate for the next year | 7.00% | 7.50% | ||||||||
Ultimate health care cost trend rate | 5.00% | 5.00% | ||||||||
Postretirement Benefit Plan | Affiliates | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Liabilities transferred to Affiliate plans | 7,000,000 | |||||||||
Postretirement Benefit Plan | 25 or more years of service | ||||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Cost sharing benefit (as a percentage) | 70.00% | |||||||||
Postretirement Benefit Plan | 15-24 years of service | ||||||||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Cost sharing benefit (as a percentage) | 50.00% | |||||||||
Non-Qualified Plan | ||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||
Assets transferred to Affiliate plans | 0 | [2] | 0 | 0 | ||||||
Liabilities transferred to Affiliate plans | 7,000,000 | 7,000,000 | ||||||||
Amortization of actuarial loss | 1,000,000 | [1] | 1,000,000 | 3,000,000 | ||||||
Fair value of plan assets | 0 | [2] | 0 | [2] | 0 | 0 | ||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | ||||||||||
Accumulated benefit obligation | 117,000,000 | [2] | 107,000,000 | 116,000,000 | ||||||
Employer contributions | 9,000,000 | [2] | 8,000,000 | 8,000,000 | ||||||
Estimated employer contributions in 2015 | $8,000,000 | |||||||||
Discount rate used in determining actuarial present value of benefit obligation | 3.88% | 4.75% | 4.00% | |||||||
[1] | Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | |||||||||
[2] | December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
EMPLOYEE_BENEFITS_Allocation_o
EMPLOYEE BENEFITS - Allocation of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocations | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 45.00% | |
Maximum target asset allocation | 55.00% | |
Actual asset allocations | 49.00% | 52.60% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 40.00% | |
Maximum target asset allocation | 50.00% | |
Actual asset allocations | 44.70% | 42.90% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 0.00% | |
Maximum target asset allocation | 10.00% | |
Actual asset allocations | 6.30% | 4.50% |
EMPLOYEE_BENEFITS_Changes_in_t
EMPLOYEE BENEFITS - Changes in the Fair Value of Pension Plan Assets, Projected Benefit Obligation, Funded Status, and Accumulated Benefit Obligation (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets as of December 31 | $923 | $1,031 | ||||
Qualified Plan | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets as of January 1 | 1,031 | [1] | 998 | 1,106 | ||
Actual return (loss) on plan assets | 98 | [1] | 111 | 142 | ||
Employer contributions | 0 | [1] | 0 | 0 | ||
Settlements | 0 | [1] | 0 | -196 | ||
Divestitures | -129 | -129 | [1] | 0 | 0 | |
Benefits and administrative expenses paid | -77 | [1] | -78 | -54 | ||
Fair value of plan assets as of December 31 | 923 | [1] | 1,031 | [1] | 998 | |
Projected benefit obligation | 1,093 | [1] | 1,026 | 1,185 | ||
Pension asset (obligation) | -170 | [1] | 5 | -187 | ||
Accumulated benefit obligation | 1,093 | [1] | 1,026 | 1,185 | ||
Liabilities transferred to Affiliate plans | 148 | 148 | ||||
Non-Qualified Plan | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair value of plan assets as of January 1 | 0 | [1] | 0 | 0 | ||
Actual return (loss) on plan assets | 0 | [1] | 0 | 0 | ||
Employer contributions | 9 | [1] | 8 | 8 | ||
Settlements | 0 | [1] | 0 | 0 | ||
Divestitures | 0 | [1] | 0 | 0 | ||
Benefits and administrative expenses paid | -9 | [1] | -8 | -8 | ||
Fair value of plan assets as of December 31 | 0 | [1] | 0 | [1] | 0 | |
Projected benefit obligation | 117 | [1] | 107 | 116 | ||
Pension asset (obligation) | -117 | [1] | -107 | -116 | ||
Accumulated benefit obligation | 117 | [1] | 107 | 116 | ||
Liabilities transferred to Affiliate plans | $7 | $7 | ||||
[1] | December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
EMPLOYEE_BENEFITS_Plan_Amounts
EMPLOYEE BENEFITS - Plan Amounts Recognized in AOCI (Details) (USD $) | 0 Months Ended | |||
In Millions, unless otherwise specified | Sep. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Net prior service credit | $0 | [1] | $0 | |
Net actuarial loss | 606 | [1] | 414 | |
Total loss recognized in accumulated other comprehensive income | 606 | [1] | 414 | |
AOCI loss transferred to Affiliate plans | $35 | |||
[1] | December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. |
EMPLOYEE_BENEFITS_Plan_Amounts1
EMPLOYEE BENEFITS - Plan Amounts Recognized in OCI (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Sep. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Compensation and Retirement Disclosure [Abstract] | |||||
Net periodic pension (income) cost | ($8,000,000) | [1] | ($3,000,000) | $150,000,000 | |
Net actuarial (gain) loss | 237,000,000 | [1] | -174,000,000 | 169,000,000 | |
Amortization of prior service credit | 0 | [1] | 0 | 1,000,000 | |
Amortization of prior service credit | -10,000,000 | [1] | -14,000,000 | -38,000,000 | |
Settlement | 0 | [1] | 0 | -92,000,000 | |
Divestiture | -35,000,000 | [1] | 0 | 0 | |
Total recognized in other comprehensive income | 192,000,000 | [1] | -188,000,000 | 40,000,000 | |
Total recognized in net periodic pension cost and other comprehensive income | 184,000,000 | [1] | -191,000,000 | 190,000,000 | |
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Assets transferred to Affiliate plans | 129,000,000 | 129,000,000 | [2] | 0 | 0 |
Liabilities transferred to Affiliate plans | 148,000,000 | 148,000,000 | |||
Non-Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Assets transferred to Affiliate plans | 0 | [2] | 0 | 0 | |
Liabilities transferred to Affiliate plans | $7,000,000 | $7,000,000 | |||
[1] | Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||
[2] | December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
EMPLOYEE_BENEFITS_Schedule_of_
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $3 | [1] | $3 | $42 | |
Interest cost | 52 | [1] | 53 | 63 | |
Expected return on plan assets | -73 | [1] | -73 | -84 | |
Amortization of actuarial loss | 10 | [1] | 14 | 38 | |
Amortization of prior service cost | 0 | [1] | 0 | -1 | |
Settlement | 0 | [1] | 0 | 92 | |
Net periodic pension (income) cost | -8 | [1] | -3 | 150 | |
Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | [1] | 3 | 42 | |
Interest cost | 47 | [1] | 48 | 58 | |
Expected return on plan assets | -73 | [1] | -73 | -84 | |
Amortization of actuarial loss | 9 | [1] | 13 | 35 | |
Amortization of prior service cost | 0 | [1] | 0 | -1 | |
Settlement | 0 | [1] | 0 | 92 | |
Net periodic pension (income) cost | -14 | [1] | -9 | 142 | |
Assets transferred to Affiliate plans | 129 | 129 | [2] | 0 | 0 |
Liabilities transferred to Affiliate plans | 148 | 148 | |||
Non-Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | [1] | 0 | 0 | |
Interest cost | 5 | [1] | 5 | 5 | |
Expected return on plan assets | 0 | [1] | 0 | 0 | |
Amortization of actuarial loss | 1 | [1] | 1 | 3 | |
Amortization of prior service cost | 0 | [1] | 0 | 0 | |
Settlement | 0 | [1] | 0 | 0 | |
Net periodic pension (income) cost | 6 | [1] | 6 | 8 | |
Assets transferred to Affiliate plans | 0 | [2] | 0 | 0 | |
Liabilities transferred to Affiliate plans | $7 | $7 | |||
[1] | Results for the period September 1, 2014 through December 31, 2014 excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. | ||||
[2] | December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
EMPLOYEE_BENEFITS_Assumptions_
EMPLOYEE BENEFITS - Assumptions Used in Determining Actuarial Present Value of Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | 4 Months Ended | 8 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Aug. 31, 2014 | |||
Assumptions for benefit obligations | |||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.75% | 7.50% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Compensation increases--qualified and non-qualified plans | 4.75% | ||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.75% | ||||
Qualified Plan | |||||||
Assumptions for benefit obligations | |||||||
Discount rate | 4.13% | 5.00% | 4.13% | 4.13% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Discount rate | 4.13% | 5.25% | 4.25% | [1] | 5.00% | [1] | |
Non-Qualified Plan | |||||||
Assumptions for benefit obligations | |||||||
Discount rate | 3.88% | 4.75% | 4.00% | 3.88% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Discount rate | 4.00% | 5.00% | 4.00% | [2] | 4.75% | [2] | |
[1] | 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | ||||||
[2] | 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. |
EMPLOYEE_BENEFITS_Expected_Fut
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Qualified and Non-Qualified Plans | |
Expected benefit payments by fiscal year ended | |
31-Dec-15 | $63 |
31-Dec-16 | 64 |
31-Dec-17 | 64 |
31-Dec-18 | 65 |
31-Dec-19 | 66 |
December 31, 2020 - 2024 | 345 |
Postretirement Benefit Plan | |
Expected benefit payments by fiscal year ended | |
31-Dec-15 | 1 |
31-Dec-16 | 1 |
31-Dec-17 | 1 |
31-Dec-18 | 1 |
31-Dec-19 | 1 |
December 31, 2020 - 2024 | $5 |
EMPLOYEE_BENEFITS_Fair_Value_o
EMPLOYEE BENEFITS - Fair Value of Plan Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $923 | $1,031 |
Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 18 | 8 |
Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 24 | 28 |
Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39 | 43 |
Common and collective funds | International equity common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 115 | |
Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 241 | |
Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 474 | |
Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 305 | 117 |
Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -6 | 1 |
Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 85 | 105 |
Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 2 |
Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17 | 9 |
Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 3 |
Managed portfolio | Derivative assets - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Managed portfolio | Derivative liabilities - interest rate swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -1 | |
Managed portfolio | Derivative liabilities - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -1 | |
Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | |
Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 183 | 126 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 24 | 28 |
Level 1 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 24 | 28 |
Level 1 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Common and collective funds | International equity common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Derivative assets - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Derivative liabilities - interest rate swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Derivative liabilities - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 899 | 1,003 |
Level 2 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 18 | 8 |
Level 2 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39 | 43 |
Level 2 | Common and collective funds | International equity common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 115 | |
Level 2 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 241 | |
Level 2 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 474 | |
Level 2 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 305 | 117 |
Level 2 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -6 | 1 |
Level 2 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 85 | 105 |
Level 2 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 2 |
Level 2 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17 | 9 |
Level 2 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2 | 3 |
Level 2 | Managed portfolio | Derivative assets - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Level 2 | Managed portfolio | Derivative liabilities - interest rate swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -1 | |
Level 2 | Managed portfolio | Derivative liabilities - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | -1 | |
Level 2 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | |
Level 2 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 183 | 126 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Common and collective funds | International equity common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Derivative assets - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Derivative liabilities - interest rate swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Derivative liabilities - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $0 | $0 |
EMPLOYEE_BENEFITS_Fair_Value_E
EMPLOYEE BENEFITS - Fair Value Estimated Using Net Asset Value per Share (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | $768 | $875 | ||
Unfunded commitments | 0 | |||
Mutual funds | Equity Mutual Fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 39 | [1] | 43 | [1] |
Unfunded commitments | 0 | [1] | ||
Mutual funds | Equity Mutual Fund | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 1 day | [1] | ||
Mutual funds | Equity Mutual Fund | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 7 days | [1] | ||
Common and collective funds | Global equity funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 241 | [2] | 0 | [2] |
Unfunded commitments | 0 | [2] | ||
Common and collective funds | Global equity funds | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 2 days | [2] | ||
Common and collective funds | Global equity funds | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 3 days | [2] | ||
Common and collective funds | Balanced funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 0 | [3] | 474 | [3] |
Unfunded commitments | 0 | [3] | ||
Common and collective funds | Balanced funds | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 2 days | [3] | ||
Common and collective funds | Balanced funds | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 3 days | [3] | ||
Common and collective funds | Fixed income fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 305 | [4] | 117 | [4] |
Unfunded commitments | 0 | [4] | ||
Redemption notice period | 3 days | [4] | ||
Common and collective funds | International equity funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 0 | [5] | 115 | [5] |
Unfunded commitments | 0 | [5] | ||
Redemption notice period | 3 days | [5] | ||
Limited partnerships | International equity funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 90 | [5] | 0 | [5] |
Unfunded commitments | 0 | [5] | ||
Redemption notice period | 3 days | [5] | ||
Limited partnerships | International equity | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 84 | [6] | 116 | [6] |
Unfunded commitments | 0 | [6] | ||
Redemption notice period | 10 days | [6] | ||
Limited partnerships | Offshore feeder fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Fair value of investment | 9 | [7] | 10 | [7] |
Unfunded commitments | $0 | [7] | ||
Target investment return (Percent) | 8.00% | |||
Target investment return standard deviation (Percent) | 5.00% | |||
Limited partnerships | Offshore feeder fund | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 1 day | [7] | ||
Limited partnerships | Offshore feeder fund | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 14 days | [7] | ||
[1] | The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. | |||
[2] | The global equities funds objective is to track the MSCI All Country World Index. | |||
[3] | The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. | |||
[4] | The fixed income fund seeks to outperform the Barclays US Long Corporate Bond Index or similar benchmark. | |||
[5] | The international equity fund seeks medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. | |||
[6] | The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. | |||
[7] | The offshore feeder fund operates under a “master/feeder†structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fundâ€). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5%. The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. |
EMPLOYEE_BENEFITS_Assumptions_1
EMPLOYEE BENEFITS - Assumptions Used in Determining the Net Periodic Benefit Cost of the Postretirement Benefits Plan (Details) (USD $) | 12 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Aug. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | 31-May-14 | Dec. 31, 2014 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Rate of compensation increase | 4.75% | ||||||||||
Pension Plan | |||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Discount rate | 5.25% | 4.25% | [1] | 5.00% | [1] | 4.13% | |||||
Non-Qualified Plan | |||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Discount rate | 5.00% | 4.00% | [2] | 4.75% | [2] | 4.00% | |||||
Postretirement Benefit Plan | |||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Discount rate | 3.75% | [3] | 3.88% | 3.88% | [3] | 4.63% | [3] | ||||
Rate of compensation increase | 0.00% | 0.00% | |||||||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | |||||||||
Effect on accumulated postretirement benefit obligation: One percent increase | 2 | $0 | |||||||||
Effect on accumulated postretirement benefit obligation: One percent decrease | -2 | $0 | |||||||||
[1] | 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | ||||||||||
[2] | 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. | ||||||||||
[3] | 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.75% for September 1 - December 31, 2014 period. |
INCOME_TAXES_Narrative_Details
INCOME TAXES - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Goodwill impairment charges representing goodwill not deductible for tax purposes (Percent) | 78.40% | ||
State tax settlement (Percent) | 2.50% | ||
State operating loss carryforwards | $2,000,000,000 | ||
Deferred tax asset valuation allowance | 157,000,000 | 193,000,000 | |
Decrease in deferred tax asset valuation allowance | 36,000,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 49,000,000 | ||
Interest on unrecognized tax benefits accrued during period | 1,000,000 | 2,000,000 | 14,000,000 |
Accrued interest on unrecognized tax benefits | 15,000,000 | 14,000,000 | 12,000,000 |
Decreases for tax positions related to settlements with taxing authorities | -20,000,000 | -1,000,000 | -134,000,000 |
Effective Income Tax Rate | |||
Goodwill Impairment (Percent) | 0.00% | -35.10% | 0.00% |
Settlement with State Taxing Authority | |||
Effective Income Tax Rate | |||
Anticipated decrease in unrecognized tax benefits due to settlement with taxing authorities | 61,000,000 | ||
Accounting Standard Update No. 2014-01 [Member] | |||
Effective Income Tax Rate | |||
Expected impact to tax rate of adoption of new accounting standard in 2015 | 2.40% | ||
Tax Years Ended Prior to 1988 [Member] | |||
Effective Income Tax Rate | |||
Base year loan loss reserves attributable to prior years | $557,000,000 |
INCOME_TAXES_Income_Tax_Expens
INCOME TAXES - Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $403 | ($42) | $381 |
Tax effect of changes in OCI | 154 | -194 | 125 |
Total comprehensive income tax expense (benefit) | $557 | ($236) | $506 |
INCOME_TAXES_Components_of_Inc
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
U.S. federal | $224 | $3 | $19 |
State and local | 38 | 8 | 56 |
Total | 262 | 11 | 75 |
Deferred | |||
U.S. federal | 145 | -47 | 269 |
State and local | -4 | -6 | 37 |
Total | 141 | -53 | 306 |
U.S. federal | 369 | -44 | 288 |
State and local | 34 | 2 | 93 |
Total | $403 | ($42) | $381 |
INCOME_TAXES_Effective_Income_
INCOME TAXES - Effective Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amount | |||
U.S. Federal income tax expense (benefit) | $444 | ($1,214) | $359 |
Increase (decrease) resulting from: | |||
Goodwill impairment | 0 | 1,217 | 0 |
State and local income taxes (net of federal benefit) | 22 | 1 | 61 |
Bank-owned life insurance | -17 | -17 | -18 |
Tax-exempt interest | -15 | -13 | -12 |
Tax credits | -27 | -11 | -8 |
Other | -4 | -5 | -1 |
Total | $403 | ($42) | $381 |
Rate | |||
Federal income tax rate, Rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Goodwill Impairment, Rate | 0.00% | -35.10% | 0.00% |
State and local income taxes (net of federal benefit), Rate | 1.70% | 0.00% | 5.90% |
Bank-owned life insurance, Rate | -1.30% | 0.50% | -1.80% |
Tax-exempt interest, Rate | -1.20% | 0.40% | -1.10% |
Tax credits, Rate | -2.10% | 0.30% | -0.70% |
Other, Rate | -0.30% | 0.10% | -0.10% |
Total, Rate | 31.80% | 1.20% | 37.20% |
INCOME_TAXES_Deferred_INcome_T
INCOME TAXES - Deferred INcome Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Other comprehensive income | $232 | $397 |
Allowance for credit losses | 456 | 475 |
Net operating loss carryforwards | 155 | 185 |
Accrued expenses not currently deductible | 170 | 149 |
Investment and other tax credit carryforwards | 0 | 62 |
Deferred income | 45 | 35 |
Fair value marks | 34 | 30 |
Other | 1 | 0 |
Total deferred tax assets | 1,093 | 1,333 |
Valuation allowance | -157 | -193 |
Deferred tax assets, net of valuation allowance | 936 | 1,140 |
Deferred tax liabilities: | ||
Leasing transactions | 825 | 811 |
Amortization of intangibles | 380 | 296 |
Depreciation | 164 | 124 |
Pension and other employee compensation plans | 14 | 56 |
MSRs | 46 | 50 |
Other | 0 | 2 |
Total deferred tax liabilities | 1,429 | 1,339 |
Net deferred tax liability | $493 | $199 |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES - Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year, January 1 | $33 | $34 | $136 |
Gross increases for tax positions related to prior years | 60 | 0 | 29 |
Decreases for tax positions as a result of the lapse of the statute of limitations | -1 | 0 | 0 |
Decreases for tax positions related to settlements with taxing authorities | -20 | -1 | -134 |
Gross increases for tax positions related to the current year | 0 | 0 | 3 |
Balance at end of year | $72 | $33 | $34 |
DERIVATIVES_Narrative_Details
DERIVATIVES - Narrative (Details) (USD $) | Dec. 31, 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 | $17 |
DERIVATIVES_Schedule_of_Deriva
DERIVATIVES - Schedule of Derivative Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Assets | ||||
Derivative Assets | $790,000,000 | $778,000,000 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -161,000,000 | [1] | -128,000,000 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 629,000,000 | [2] | 650,000,000 | [2] |
Derivative Liabilities | ||||
Derivative Liabilities | 773,000,000 | 1,067,000,000 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -161,000,000 | [1] | -128,000,000 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 612,000,000 | [2] | 939,000,000 | [2] |
Derivatives not designated as hedging instruments: | ||||
Derivative Assets | ||||
Derivative Assets | 766,000,000 | 755,000,000 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 674,000,000 | 655,000,000 | ||
Interest rate swaps | Derivatives designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 5,750,000,000 | [3] | 5,500,000,000 | [3] |
Derivative Assets | ||||
Derivative Assets | 24,000,000 | 23,000,000 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 99,000,000 | 412,000,000 | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 31,848,000,000 | [3] | 29,355,000,000 | [3] |
Derivative Assets | ||||
Derivative Assets | 589,000,000 | 654,000,000 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 501,000,000 | 558,000,000 | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 8,359,000,000 | [3] | 7,771,000,000 | [3] |
Derivative Assets | ||||
Derivative Assets | 170,000,000 | 94,000,000 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 164,000,000 | 87,000,000 | ||
Other contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 730,000,000 | [3] | 569,000,000 | [3] |
Derivative Assets | ||||
Derivative Assets | 7,000,000 | 7,000,000 | ||
Derivative Liabilities | ||||
Derivative Liabilities | $9,000,000 | $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 3 “Securities†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_Schedule_of_Fair_V
DERIVATIVES - Schedule of Fair Value Hedges (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | $33 | $70 | $26 |
Hedge of interest rate risk | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | -4 | 0 | |
Hedged Item | 4 | 0 | |
Hedge Ineffectiveness | $0 | $0 |
DERIVATIVES_Effect_of_Derivati
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amounts reclassified from OCI to interest income | $624 | $488 | $624 | |||
Amounts reclassified from OCI to interest expense | -363 | -443 | -619 | |||
Amounts reclassified from OCI to other income | 33 | 70 | 26 | |||
Amount Reclassified from AOCI | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Effective portion of gain (loss) recognized in OCI | 334 | [1] | -59 | [1] | -42 | [1] |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amounts reclassified from OCI to interest income | 72 | [2] | 56 | [2] | 0 | [2] |
Amounts reclassified from OCI to interest expense | -99 | [2] | -235 | [2] | -335 | [2] |
Amounts reclassified from OCI to other income | 0 | [3] | -1 | [3] | -1 | [3] |
Ineffective portion of gain recognized in other income | $0 | [4] | $0 | [4] | $1 | [4] |
[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 net gains (losses) line item on the Consolidated Statements of Operations. | |||||
[4] | This amount represents the net ineffectiveness recorded during the reporting periods presented plus any amounts excluded from effectiveness testing. These amounts are 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 $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | $33 | $70 | $26 | |||
Other Income | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | -4 | 0 | ||||
Customer derivative contracts | Other Income | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | 240 | [1] | 79 | [1] | 292 | [1] |
Customer derivative contracts | Other Income | Foreign exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | -59 | [1] | 18 | [1] | 10 | [1] |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | 6 | [2] | -7 | [2] | 11 | [2] |
Economic hedges | Other Income | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | -209 | [1] | -30 | [1] | -285 | [1] |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | 58 | [3] | -15 | [3] | -10 | [3] |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative | ($3) | [2] | $25 | [2] | $8 | [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 $) | 12 Months Ended | 72 Months Ended | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2003 | 29-May-14 | |
counterparty | |||||||
Risk Participation Agreements [Abstract] | |||||||
Risk participation agreements | $19,000,000 | $17,000,000 | $19,000,000 | ||||
Risk participation agreements number of counterparties | 71 | ||||||
Risk participation agreements, Maximum term | 11 years | ||||||
Mortgage Repurchase Demands [Abstract] | |||||||
Mortgage repurchase demands received | 158,000,000 | ||||||
Indemnification payment requests received | 99,000,000 | ||||||
Repurchased mortgage loans | 25,000,000 | 35,000,000 | 13,000,000 | 88,000,000 | |||
Indemnification payment requests paid | 8,000,000 | 12,000,000 | 33,000,000 | ||||
Payments for Repurchase of Mortgage Loans | 25,000,000 | 35,000,000 | |||||
Consent Orders | |||||||
Consumer Products [Abstract] | |||||||
Litigation settlement amount | 10,000,000 | ||||||
Restitution amount payable | 8,000,000 | 8,000,000 | |||||
Minimum | |||||||
Risk Participation Agreements [Abstract] | |||||||
Risk participation agreements, Average term | 1 year | ||||||
Maximum | |||||||
Risk Participation Agreements [Abstract] | |||||||
Risk participation agreements, Average term | 5 years | ||||||
Letter of Credit | |||||||
Letters of Credit [Abstract] | |||||||
Letters of credit outstanding | 3,000,000 | 3,000,000 | |||||
Auto Loans | Minimum | |||||||
Commitments [Abstract] | |||||||
Purchase commitment, Quarterly amount, May 30, 2014 through May 29, 2015 | 250,000,000 | ||||||
Purchase commitment, Quarterly amount, May 30, 2015 and after | 400,000,000 | ||||||
Auto Loans | Maximum | |||||||
Commitments [Abstract] | |||||||
Purchase commitment, Quarterly amount, May 30, 2014 through May 29, 2015 | 600,000,000 | ||||||
Purchase commitment, Quarterly amount, May 30, 2015 and after | 600,000,000 | ||||||
Student loans | Minimum | |||||||
Commitments [Abstract] | |||||||
Purchase commitment, Quarterly amount, May 30, 2014 through May 29, 2015 | 260,000,000 | 260,000,000 | |||||
Marketing rights | |||||||
Commitments [Abstract] | |||||||
Commitment period | 25 years | ||||||
Payments made | 3,000,000 | 3,000,000 | |||||
Remaining obligation due | 51,000,000 | 51,000,000 | |||||
Derivative assets - credit default swaps | RBS | Options Held | |||||||
Guarantees [Abstract] | |||||||
Notional value of open option contracts | 0 | 2,000,000 | 0 | ||||
Purchase Commitment | Commercial real estate loans held for sale | |||||||
Commitments [Abstract] | |||||||
Unsettled commercial loan trades | $40,000,000 | $40,000,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Commitments [Line Items] | ||
Commitment amount | $58,435 | $56,840 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 55,899 | 53,987 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,315 | 2,556 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 65 | 149 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 75 | 64 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 51 | 54 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 19 | 17 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $11 | $13 |
DIVESTITURES_AND_BRANCH_ASSETS2
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 20, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
branch | |||
Disposal of Branch Assets and Liabilities [Abstract] | |||
Deposit liabilities | $5,277 | ||
Loans (primarily middle market, small business, home equity and credit card balances) | 1,078 | ||
Disposed of by sale | Illinois | Retail branches | |||
Disposal of Branch Assets and Liabilities [Abstract] | |||
Number of branches sold | 103 | ||
Deposit liabilities | 4,800 | ||
Loans (primarily middle market, small business, home equity and credit card balances) | 1,000 | ||
Gain (loss) on sale | 288 | ||
Disposed of by sale | Illinois | Retail branches | Deposits | |||
Disposal of Branch Assets and Liabilities [Abstract] | |||
Gain (loss) on sale | 286 | ||
Interest expense on deposits | 4 | ||
Disposed of by sale | Illinois | Retail branches | Loans | |||
Disposal of Branch Assets and Liabilities [Abstract] | |||
Gain (loss) on sale | 11 | ||
Interest and fee income on loans | 20 | ||
Disposed of by sale | Illinois | Retail branches | Other branch assets | |||
Disposal of Branch Assets and Liabilities [Abstract] | |||
Gain (loss) on sale | ($9) |
DIVESTITURES_AND_BRANCH_ASSETS3
DIVESTITURES AND BRANCH ASSETS AND LIABILITIES HELD FOR SALE - Assets and Liabilities Held-for-sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | $1,078 | |
Other branch assets held for sale, Properties and equipment, net | 0 | 46 |
Total other branch assets held for sale | 46 | |
Total branch assets held for sale | 1,124 | |
Deposits held for sale: | 5,277 | |
Total branch liabilities held for sale | 5,277 | |
Demand | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deposits held for sale: | 1,020 | |
Checking with interest | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deposits held for sale: | 849 | |
Regular savings | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deposits held for sale: | 504 | |
Money market accounts | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deposits held for sale: | 2,013 | |
Term Deposits | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Deposits held for sale: | 891 | |
Commercial Banking | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 600 | |
Commercial | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 551 | |
Commercial real estate | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 49 | |
Retail | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 478 | |
Home equity loans | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 50 | |
Home equity lines of credit | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 339 | |
Credit cards | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | 82 | |
Other retail | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loans held for sale: | $7 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 08, 2014 | Dec. 31, 2014 | |||||
customer_relationship | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest expense | $64,000,000 | $16,000,000 | $9,000,000 | |||||||
Unfunded commitments | 0 | 0 | 0 | |||||||
Other short-term borrowed funds | 89,000,000 | 4,000,000 | 101,000,000 | |||||||
Outside services | 420,000,000 | 360,000,000 | 339,000,000 | |||||||
Dividends to parent — exchange transactions | -666,000,000 | -1,000,000,000 | ||||||||
Long-term borrowed funds | 4,642,000,000 | 4,642,000,000 | 1,405,000,000 | 4,642,000,000 | ||||||
Shares repurchased (in shares) | 80,358 | |||||||||
Cost of stock repurchase | 2,000,000 | 334,000,000 | 0 | 0 | ||||||
Shares repurchased, price per share (in dollars per share) | $25.03 | |||||||||
Interest rate swaps | Derivatives designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 5,750,000,000 | [1] | 5,750,000,000 | [1] | 5,500,000,000 | [1] | 5,750,000,000 | [1] | ||
Interest rate swaps | Derivatives not designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 31,848,000,000 | [1] | 31,848,000,000 | [1] | 29,355,000,000 | [1] | 31,848,000,000 | [1] | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 8,359,000,000 | [1] | 8,359,000,000 | [1] | 7,771,000,000 | [1] | 8,359,000,000 | [1] | ||
RBS | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Borrowing capacity | 50,000,000 | |||||||||
Income from services and referrals net of rent income (expense) | 16,000,000 | 26,000,000 | 28,000,000 | |||||||
Outside services | 22,000,000 | 20,000,000 | 21,000,000 | |||||||
Dividend to parent | 124,000,000 | 185,000,000 | 150,000,000 | |||||||
RBS | Interest rate swaps | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest expense | 27,000,000 | 146,000,000 | 311,000,000 | |||||||
Derivative expense | 209,000,000 | 32,000,000 | 285,000,000 | |||||||
RBS | Interest rate swaps | Derivatives designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 5,800,000,000 | [1] | 5,800,000,000 | [1] | 5,500,000,000 | [1] | 5,800,000,000 | [1] | ||
Minimum fixed interest rate | 1.66% | 1.66% | 1.78% | 1.66% | ||||||
Maximum fixed interest rate | 4.30% | 4.30% | 5.47% | 4.30% | ||||||
RBS | Interest rate swaps | Derivatives not designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 9,800,000,000 | 9,800,000,000 | 13,400,000,000 | 9,800,000,000 | ||||||
RBS | Interest rate swaps | Receive swap | Derivatives designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 4,000,000,000 | [1] | 4,000,000,000 | [1] | 4,000,000,000 | [1] | 4,000,000,000 | [1] | ||
Minimum fixed interest rate | 1.78% | 1.78% | 1.78% | 1.78% | ||||||
Maximum fixed interest rate | 2.04% | 2.04% | 2.04% | 2.04% | ||||||
RBS | Interest rate swaps | Pay swap | Derivatives designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 1,000,000,000 | [1] | 1,000,000,000 | [1] | 1,500,000,000 | [1] | 1,000,000,000 | [1] | ||
Minimum fixed interest rate | 4.18% | 4.18% | 4.18% | 4.18% | ||||||
Maximum fixed interest rate | 4.30% | 4.30% | 5.47% | 4.30% | ||||||
RBS | Interest rate swaps | Medium term swap | Derivatives designated as hedging instruments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 750,000,000 | [1] | 750,000,000 | [1] | 750,000,000 | [1] | ||||
Fixed interest rate | 1.66% | 1.66% | 1.66% | |||||||
RBS | Foreign exchange contracts | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notional amount | 4,700,000,000 | 4,700,000,000 | 4,600,000,000 | 4,700,000,000 | ||||||
Foreign exchange and trade finance revenue | 58,000,000 | |||||||||
Foreign exchange and trade finance fees | 15,000,000 | 9,000,000 | ||||||||
RBSG | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Shares repurchased (in shares) | 14,297,761 | |||||||||
Cost of stock repurchase | 334,000,000 | |||||||||
Shares repurchased, price per share (in dollars per share) | $23.36 | |||||||||
RBSG | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Long-term borrowed funds | 334,000,000 | 334,000,000 | 0 | 334,000,000 | ||||||
Debt term | 10 years | |||||||||
Interest rate | 4.08% | 4.08% | 4.08% | |||||||
Executive Officers, Family Members, and Their Businesses | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related party loans | 126,000,000 | 126,000,000 | 78,000,000 | 126,000,000 | ||||||
Special Dividend | RBS | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Dividends to parent — exchange transactions | -666,000,000 | -1,000,000,000 | ||||||||
Line of Credit | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other short-term borrowed funds | 0 | |||||||||
Commercial Loans, Oil and Natural Gas Industry | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Principal balance of loans held-for-investment acquired during period | 417,000,000 | |||||||||
Commercial Loans, Oil and Natural Gas Industry | RBS | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Customer relationships purchased during period | 413,000,000 | |||||||||
Number of customer relationships acquired | 17 | |||||||||
Principal balance of loans held-for-investment acquired during period | 417,000,000 | |||||||||
Unfunded commitments | 458,000,000 | [2] | 458,000,000 | [2] | 458,000,000 | [2] | ||||
Notional amount | 946,000,000 | 946,000,000 | 946,000,000 | |||||||
Fair value of derivatives | -17,000 | -17,000 | -17,000 | |||||||
Parent Company [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Dividend to parent | 806,000,000 | 1,200,000,000 | ||||||||
Cost of stock repurchase | $334,000,000 | $0 | $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. | |||||||||
[2] | The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS - Schedule of Related Party Debt Terms (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Long-term borrowed funds | $4,642 | $1,405 |
Subordinated Debt | RBSG | 4.082% fixed rate subordinated debt, due 2025 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.08% | |
Long-term borrowed funds | 334 | 0 |
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_Nonrec
FAIR VALUE MEASUREMENTS - Nonrecurring Fair Value Measurements Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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) | 12.40% | 13.00% | |
Weighted average discount rate (percent) | 9.80% | 10.80% | |
Transfers between Levels 1, 2, or 3 | $0 | $0 | $0 |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average life (in years) | 2 years 9 months 18 days | 1 year 9 months 18 days | |
Weighted average constant prepayment rate (percent) | 10.40% | 9.40% | |
Weighted average discount rate (percent) | 9.10% | 10.20% | |
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average life (in years) | 6 years 7 months 6 days | 7 years 4 months 24 days | |
Weighted average constant prepayment rate (percent) | 22.60% | 41.50% | |
Weighted average discount rate (percent) | 12.10% | 13.10% |
FAIR_VALUE_MEASUREMENTS_Reside
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate Fair Value | $256,000,000 | $176,000,000 | |
Mortgage banking noninterest income (loss) | 71,000,000 | 153,000,000 | 189,000,000 |
Residential loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Mortgage banking noninterest income (loss) | 5,000,000 | -33,000,000 | 6,000,000 |
Commercial real estate loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans in this portfolio that were 90 days or more past due or nonaccruing | 0 | ||
Other noninterest income | 1,000,000 | ||
Level 2 | Residential loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate Fair Value | 213,000,000 | 176,000,000 | |
Aggregate Unpaid Principal | 206,000,000 | 173,000,000 | |
Aggregate Fair Value Less Aggregate Unpaid Principal | 7,000,000 | 3,000,000 | |
Level 2 | Commercial real estate loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate Fair Value | 43,000,000 | ||
Aggregate Unpaid Principal | 43,000,000 | ||
Aggregate Fair Value Less Aggregate Unpaid Principal | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Securities available for sale | $18,656 | $15,995 |
Loans held for sale | 256 | 176 |
Derivative assets (related party balances of $1 and $0, respectively) | 629 | 650 |
Liabilities | ||
Derivative liabilities | 612 | 939 |
Fair Value Measurement [Domain] | ||
Assets | ||
Securities available for sale | 18,656 | 15,995 |
Loans held for sale | 256 | |
Derivative assets (related party balances of $1 and $0, respectively) | 790 | 778 |
Venture capital investments and other investments | 5 | 5 |
Total assets | 19,707 | 16,954 |
Liabilities | ||
Derivative liabilities | 773 | 1,067 |
Total liabilities | 773 | 1,067 |
Fair Value Measurement [Domain] | Interest rate swaps | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 613 | 677 |
Liabilities | ||
Derivative liabilities | 600 | 970 |
Fair Value Measurement [Domain] | Foreign exchange contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 170 | 94 |
Liabilities | ||
Derivative liabilities | 164 | 87 |
Fair Value Measurement [Domain] | Other contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 7 | 7 |
Liabilities | ||
Derivative liabilities | 9 | 10 |
Fair Value Measurement [Domain] | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,606 | 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 | 213 | 176 |
Fair Value Measurement [Domain] | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 43 | |
Fair Value Measurement [Domain] | Level 1 | ||
Assets | ||
Securities available for sale | 23 | 23 |
Loans held for sale | 0 | |
Derivative assets (related party balances of $1 and $0, respectively) | 0 | 0 |
Venture capital investments and other 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 (related party balances of $1 and $0, respectively) | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Foreign exchange contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Other contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 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 | 18,633 | 15,972 |
Loans held for sale | 256 | |
Derivative assets (related party balances of $1 and $0, respectively) | 790 | 778 |
Venture capital investments and other investments | 0 | 0 |
Total assets | 19,679 | 16,926 |
Liabilities | ||
Derivative liabilities | 773 | 1,067 |
Total liabilities | 773 | 1,067 |
Fair Value Measurement [Domain] | Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 613 | 677 |
Liabilities | ||
Derivative liabilities | 600 | 970 |
Fair Value Measurement [Domain] | Level 2 | Foreign exchange contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 170 | 94 |
Liabilities | ||
Derivative liabilities | 164 | 87 |
Fair Value Measurement [Domain] | Level 2 | Other contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 7 | 7 |
Liabilities | ||
Derivative liabilities | 9 | 10 |
Fair Value Measurement [Domain] | Level 2 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,606 | 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 | 213 | 176 |
Fair Value Measurement [Domain] | Level 2 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 43 | |
Fair Value Measurement [Domain] | Level 3 | ||
Assets | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | |
Derivative assets (related party balances of $1 and $0, respectively) | 0 | 0 |
Venture capital investments and other investments | 5 | 5 |
Total assets | 5 | 5 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Foreign exchange contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Other contracts | ||
Assets | ||
Derivative assets (related party balances of $1 and $0, respectively) | 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 $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Recurring basis | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance as of January 1 | $5 | $6 | $57 |
Purchases | 0 | 0 | 1 |
Sales | 0 | -4 | -45 |
Settlements | 0 | 3 | 23 |
Other net gains (losses) | 0 | 0 | -30 |
Balance as of period end | 5 | 5 | 6 |
Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 | $0 | $0 | ($11) |
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 $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Impaired collateral-dependent loans | ||||||
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 | ($101) | ($83) | ($101) | |||
MSRs | ||||||
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 | 47 | -12 | |||
Foreclosed assets | ||||||
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 | -3 | -4 | -6 | |||
Goodwill impairment (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 | $0 | [1] | ($4,435) | [1] | $0 | [1] |
[1] | In the year ended December 31, 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_Schedu3
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill | $6,876 | $6,876 | $11,311 | ||
Goodwill impairment | 0 | 4,435 | 0 | ||
Residential Mortgages | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net carrying value of MSRs | 166 | 185 | 145 | ||
Servicing Asset at Amortized Cost | 184 | 208 | 215 | 215 | |
Valuation (recovery) impairment | 5 | 47 | -12 | ||
Cumulative valuation allowance on mortgage servicing rights | 18 | 23 | 70 | 58 | |
Nonrecurring measurement basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired collateral-dependent loans | 102 | 74 | |||
Mortgage Servicing Rights | 166 | 185 | |||
Foreclosed assets | 40 | 49 | |||
Goodwill | 6,876 | [1] | |||
Level 1 | Nonrecurring measurement basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired collateral-dependent loans | 0 | 0 | |||
Mortgage Servicing Rights | 0 | 0 | |||
Foreclosed assets | 0 | 0 | |||
Goodwill | 0 | [1] | |||
Level 2 | Nonrecurring measurement basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired collateral-dependent loans | 102 | 74 | |||
Mortgage Servicing Rights | 0 | 0 | |||
Foreclosed assets | 40 | 49 | |||
Goodwill | 0 | [1] | |||
Level 3 | Nonrecurring measurement basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired collateral-dependent loans | 0 | 0 | |||
Mortgage Servicing Rights | 166 | 185 | |||
Foreclosed assets | 0 | 0 | |||
Goodwill | $6,876 | [1] | |||
[1] | In the year ended December 31, 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 $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases | $93,410 | [1],[2] | $85,859 | [1],[2] |
Loans and leases | 93,674 | 85,724 | ||
Other loans held for sale | 25 | 1,078 | ||
Other loans held for sale | 25 | 1,078 | ||
Securities held to maturity | 5,148 | 4,315 | ||
Securities held-to-maturity | 5,193 | 4,257 | ||
Other investment securities | 872 | 935 | ||
Other investment securities | 872 | 935 | ||
Deposits | 95,707 | 86,903 | ||
Deposits | 95,710 | 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 | 4,276 | 4,791 | ||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,791 | ||
Other short-term borrowed funds | 6,253 | 2,251 | ||
Other short-term borrowed funds | 6,253 | 2,249 | ||
Long-term borrowed funds | 4,642 | 1,405 | ||
Long-term borrowed funds | 4,706 | 1,404 | ||
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases | 93,410 | 85,859 | ||
Other loans held for sale | 25 | 1,078 | ||
Securities held to maturity | 5,148 | 4,315 | ||
Other investment securities | 872 | 935 | ||
Deposits | 95,707 | 86,903 | ||
Deposits held for sale | 5,277 | |||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,791 | ||
Other short-term borrowed funds | 6,253 | 2,251 | ||
Long-term borrowed funds | 4,642 | 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 | 102 | 74 | ||
Other loans held for sale | 0 | 0 | ||
Securities held-to-maturity | 5,193 | 4,257 | ||
Other investment securities | 872 | 935 | ||
Deposits | 95,710 | 86,907 | ||
Deposits held for sale | 5,277 | |||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,791 | ||
Other short-term borrowed funds | 6,253 | 2,249 | ||
Long-term borrowed funds | 4,706 | 1,404 | ||
Level 2 | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases | 102 | 74 | ||
Other loans held for sale | 0 | 0 | ||
Securities held to maturity | 5,148 | 4,315 | ||
Other investment securities | 872 | 935 | ||
Deposits | 95,707 | 86,903 | ||
Deposits held for sale | 5,277 | |||
Federal funds purchased and securities sold under agreements to repurchase | 4,276 | 4,791 | ||
Other short-term borrowed funds | 6,253 | 2,251 | ||
Long-term borrowed funds | 4,642 | 1,405 | ||
Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans and leases | 93,572 | 85,650 | ||
Other loans held for sale | 25 | 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 | 93,308 | 85,785 | ||
Other loans held for sale | 25 | 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 $281 million as of December 31, 2014 and $1.3 billion as of December 31, 2013. The December 31, 2013 loans held for sale balance primarily related to the Chicago Divestiture. For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale.†| |||
[2] | Mortgage loans serviced for others by the Company's subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively. |
REGULATORY_MATTERS_Narrative_D
REGULATORY MATTERS - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividend to parent | $16 | ||
RBS | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividend to parent | 790 | 1,200 | 150 |
CBNA | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Liquid assets | 340 | ||
Average | Subordinated Debt | CBNA | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Annual interest burden on debt | $104 |
REGULATORY_MATTERS_Capital_and
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total Capital to Risk-Weighted Assets (Amount) | ||
Actual | $16,781 | $15,885 |
Minimum Capital Adequacy | 8,477 | 7,891 |
Classification as Well Capitalized | 10,596 | 9,863 |
Total Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 15.80% | 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 | 13,173 | 13,301 |
Minimum Capital Adequacy | 4,239 | 3,945 |
Classification as Well Capitalized | 6,358 | 5,918 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 12.40% | 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 | 13,173 | 13,301 |
Minimum Capital Adequacy | 4,982 | 4,577 |
Classification as Well Capitalized | $6,227 | $5,721 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||
Actual | 10.60% | 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 $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | $121 | ||
Restructuring costs | 101 | ||
Restructuring charges incurred | 124 | 31 | 7 |
Restructuring reserve reversals | 10 | 5 | 12 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 12 | ||
Restructuring charges incurred | 7 | ||
Outside Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 24 | ||
Restructuring charges incurred | 4 | ||
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 | 2 |
Restructuring reserve reversals | 1 | 1 | 1 |
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | 40 | ||
Facility Closing | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 18 | ||
Restructuring charges incurred | 24 | 22 | 1 |
Restructuring reserve reversals | 5 | 4 | 11 |
Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring cost | 40 | ||
Other Restructuring | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 57 | 3 | 4 |
Restructuring reserve reversals | 4 | 0 | 0 |
Building Impairment | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment charges | 6 | ||
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 | ||
Software expense | Amortization of software | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 6 | ||
Lease Termination Costs | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 15 | ||
Writeoff of Fixed Assets | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | $7 |
EXIT_COSTS_AND_RESTRUCTURING_R3
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $26 | $30 | $68 |
Additions | 124 | 31 | 7 |
Reversals | -10 | -5 | -12 |
Utilization | -96 | -30 | -33 |
Ending balance | 44 | 26 | 30 |
Employee Severance | Salaries & Employee Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 2 | 3 | 9 |
Additions | 43 | 6 | 2 |
Reversals | -1 | -1 | -1 |
Utilization | -21 | -6 | -7 |
Ending balance | 23 | 2 | 3 |
Facility Closing | Occupancy & Equipment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 24 | 27 | 59 |
Additions | 24 | 22 | 1 |
Reversals | -5 | -4 | -11 |
Utilization | -25 | -21 | -22 |
Ending balance | 18 | 24 | 27 |
Other Restructuring | Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Additions | 57 | 3 | 4 |
Reversals | -4 | 0 | 0 |
Utilization | -50 | -3 | -4 |
Ending balance | $3 | $0 | $0 |
RECLASSIFICATIONS_OUT_OF_ACCUM2
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | ($648) | ($312) | ($528) |
Other comprehensive loss before reclassifications | 410 | -457 | 112 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | -22 | -26 | -38 |
Amounts reclassified from other comprehensive income | -112 | 147 | 142 |
Net other comprehensive (loss) income | 276 | -336 | 216 |
Ending balance | -372 | -648 | -312 |
Net Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -298 | -240 | -426 |
Other comprehensive loss before reclassifications | 212 | -172 | -26 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | 0 | 0 | 0 |
Amounts reclassified from other comprehensive income | 17 | 114 | 212 |
Net other comprehensive (loss) income | 229 | -58 | 186 |
Ending balance | -69 | -298 | -240 |
Net Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -91 | 306 | 251 |
Other comprehensive loss before reclassifications | 198 | -285 | 138 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | -22 | -26 | -38 |
Amounts reclassified from other comprehensive income | -11 | -86 | -45 |
Net other comprehensive (loss) income | 165 | -397 | 55 |
Ending balance | 74 | -91 | 306 |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -259 | -378 | -353 |
Other comprehensive loss before reclassifications | 0 | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | 0 | 0 | 0 |
Amounts reclassified from other comprehensive income | -118 | 119 | -25 |
Net other comprehensive (loss) income | -118 | 119 | -25 |
Ending balance | ($377) | ($259) | ($378) |
RECLASSIFICATIONS_OUT_OF_ACCUM3
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Interest income | $624 | $488 | $624 | |||
Interest expense | -363 | -443 | -619 | |||
Securities impairment | -10 | -8 | -24 | |||
Salaries and employee benefits | 1,678 | 1,652 | 1,743 | |||
Income (loss) before income tax expense (benefit) | 1,268 | -3,468 | 1,024 | |||
Income tax expense (benefit) | 403 | -42 | 381 | |||
NET INCOME (LOSS) | 865 | -3,426 | 643 | |||
Amount Reclassified from AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax expense (benefit) | 71 | -87 | 82 | |||
NET INCOME (LOSS) | 112 | -147 | -142 | |||
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 | 72 | [1] | 56 | [1] | 0 | [1] |
Interest expense | -99 | [1] | -235 | [1] | -335 | [1] |
Other income | 0 | -1 | 0 | |||
Income (loss) before income tax expense (benefit) | -27 | -180 | -335 | |||
Income tax expense (benefit) | -10 | -66 | -123 | |||
NET INCOME (LOSS) | -17 | -114 | -212 | |||
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 | 28 | 144 | 95 | |||
Securities impairment | -10 | -8 | -24 | |||
Income (loss) before income tax expense (benefit) | 18 | 136 | 71 | |||
Income tax expense (benefit) | 7 | 50 | 26 | |||
NET INCOME (LOSS) | 11 | 86 | 45 | |||
Reclassification of changes related to defined benefit pension plans: | Amount Reclassified from AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Salaries and employee benefits | 192 | -190 | 40 | |||
Income (loss) before income tax expense (benefit) | 192 | -190 | 40 | |||
Income tax expense (benefit) | 74 | -71 | 15 | |||
NET INCOME (LOSS) | $118 | ($119) | $25 | |||
[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. |
RECLASSIFICATIONS_OUT_OF_ACCUM4
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Effects to Net Income of Amounts Reclassified Out of OCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | $3,301 | $3,058 | $3,227 |
Provision for credit losses | 319 | 479 | 413 |
Noninterest income | 1,678 | 1,632 | 1,667 |
Noninterest expense | 3,392 | 7,679 | 3,457 |
Income (loss) before income tax expense (benefit) | 1,268 | -3,468 | 1,024 |
Income tax expense (benefit) | 403 | -42 | 381 |
NET INCOME (LOSS) | 865 | -3,426 | 643 |
Amount Reclassified from OCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | 3,301 | 3,058 | 3,227 |
Provision for credit losses | 319 | 479 | 413 |
Noninterest income | 1,678 | 1,632 | 1,667 |
Noninterest expense | 3,392 | 7,679 | 3,457 |
Income (loss) before income tax expense (benefit) | 1,268 | -3,468 | 1,024 |
Income tax expense (benefit) | 403 | -42 | 381 |
NET INCOME (LOSS) | 865 | -3,426 | 643 |
Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | -27 | -179 | -335 |
Noninterest income | 18 | 135 | 71 |
Noninterest expense | -192 | 190 | -40 |
Income tax expense (benefit) | 71 | -87 | 82 |
NET INCOME (LOSS) | 112 | -147 | -142 |
Net Unrealized Gains (Losses) on Derivatives | Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income tax expense (benefit) | -27 | -180 | -335 |
Income tax expense (benefit) | -10 | -66 | -123 |
NET INCOME (LOSS) | ($17) | ($114) | ($212) |
BUSINESS_SEGMENTS_Narrative_De
BUSINESS SEGMENTS - Narrative (Details) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ||||
Number of segments | 2 | |||
Revenues | $4,979 | $4,690 | $4,894 | |
Goodwill impairment | 0 | -4,435 | 0 | |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,050 | 3,201 | 3,384 | |
Goodwill impairment | -4,400 | -4,435 | ||
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,502 | 1,420 | 1,385 | |
Goodwill impairment | 0 | |||
Minimum | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Maximum | Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Maximum | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $2,500 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Net interest income | $3,301 | $3,058 | $3,227 |
Noninterest income | 1,678 | 1,632 | 1,667 |
Total revenue | 4,979 | 4,690 | 4,894 |
Noninterest expense | 3,392 | 7,679 | 3,457 |
Profit (loss) before provision for credit losses | 1,587 | -2,989 | 1,437 |
Provision for credit losses | 319 | 479 | 413 |
Income (loss) before income tax expense (benefit) | 1,268 | -3,468 | 1,024 |
Income tax expense (benefit) | 403 | -42 | 381 |
NET INCOME (LOSS) | 865 | -3,426 | 643 |
Total Average Assets | 127,624 | 120,866 | 127,666 |
Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,151 | 2,176 | 2,197 |
Noninterest income | 899 | 1,025 | 1,187 |
Total revenue | 3,050 | 3,201 | 3,384 |
Noninterest expense | 2,513 | 2,522 | 2,691 |
Profit (loss) before provision for credit losses | 537 | 679 | 693 |
Provision for credit losses | 259 | 308 | 408 |
Income (loss) before income tax expense (benefit) | 278 | 371 | 285 |
Income tax expense (benefit) | 96 | 129 | 100 |
NET INCOME (LOSS) | 182 | 242 | 185 |
Total Average Assets | 48,939 | 46,465 | 47,824 |
Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 1,073 | 1,031 | 1,036 |
Noninterest income | 429 | 389 | 349 |
Total revenue | 1,502 | 1,420 | 1,385 |
Noninterest expense | 652 | 635 | 625 |
Profit (loss) before provision for credit losses | 850 | 785 | 760 |
Provision for credit losses | -6 | -7 | 63 |
Income (loss) before income tax expense (benefit) | 856 | 792 | 697 |
Income tax expense (benefit) | 295 | 278 | 244 |
NET INCOME (LOSS) | 561 | 514 | 453 |
Total Average Assets | 38,483 | 35,229 | 33,474 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 77 | -149 | -6 |
Noninterest income | 350 | 218 | 131 |
Total revenue | 427 | 69 | 125 |
Noninterest expense | 227 | 4,522 | 141 |
Profit (loss) before provision for credit losses | 200 | -4,453 | -16 |
Provision for credit losses | 66 | 178 | -58 |
Income (loss) before income tax expense (benefit) | 134 | -4,631 | 42 |
Income tax expense (benefit) | 12 | -449 | 37 |
NET INCOME (LOSS) | 122 | -4,182 | 5 |
Total Average Assets | $40,202 | $39,172 | $46,368 |
SHAREBASED_COMPENSATION_Narrat
SHARE-BASED COMPENSATION - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 61,000,000 | 61,000,000 | |||
Compensation expense related to share-based plans | $53,000,000 | $27,000,000 | $29,000,000 | ||
Share-based compensation not yet recognized | 31,000,000 | 31,000,000 | |||
Share-based compensation not yet recognized, period of recognition | 2 years | ||||
Tax benefit from share-based compensation expense | 17,000,000 | ||||
Time-based restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance-based restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Employee Stock Purchase Plan | Amount | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 103,247 | ||||
RBSG | Special IPO Awards | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares converted | 19,390,752 | ||||
Citizens | Special IPO Awards | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares converted | 5,249,721 | ||||
Shares issued upon conversion of IPO award bonds | 524,783 | ||||
Prior to IPO | Special IPO Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion period | 30 days | ||||
Prior to IPO | Special IPO Awards | Restricted Stock Units or Convertible Bonds | Percent Vesting in March 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Prior to IPO | Special IPO Awards | Restricted Stock Units or Convertible Bonds | Percent Vesting in March 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Prior to IPO | Converted Equity Plan | Restricted Stock Units or Convertible Bonds | Percent Vesting in March 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Prior to IPO | Converted Equity Plan | Restricted Stock Units or Convertible Bonds | Percent Vesting in March 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Following IPO | Employee Stock Purchase Plan | Amount | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase date, Discount from market price | 10.00% | ||||
Percent of compensation eligible to be contributed (as a percent) | 10.00% | 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 |
SHAREBASED_COMPENSATION_Shareb
SHARE-BASED COMPENSATION - Share-based Compensation Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
RBS Share Awards | |||
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 19,778,967 | 22,865,810 | 23,490,759 |
Granted (in shares) | 9,627,635 | 6,363,919 | 9,477,611 |
Vested (in shares) | -6,040,806 | -4,208,789 | -8,379,848 |
Forfeited (in shares) | -3,975,044 | -5,241,973 | -1,722,712 |
Converted to CFG Shares (in shares) | -19,390,752 | 0 | |
Nonvested, End of period (in shares) | 0 | 19,778,967 | 22,865,810 |
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $5.31 | $6.14 | $6.49 |
Granted (in dollars per share) | $5.48 | $4.66 | $4.41 |
Vested (in dollars per share) | $6.14 | $6.68 | $5.22 |
Forfeited (in dollars per share) | $6.73 | $7.03 | $5.93 |
Converted to CFG Shares (in dollars per share) | $4.84 | $0 | |
Nonvested, End of period (in dollars per share) | $0 | $5.31 | $6.14 |
Citizens Share Awards | |||
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 0 | ||
Granted (in shares) | 209,099 | ||
Vested (in shares) | -161,067 | ||
Forfeited (in shares) | -226,654 | ||
Converted to CFG Shares (in shares) | 5,774,504 | ||
Nonvested, End of period (in shares) | 5,595,882 | ||
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $0 | ||
Granted (in dollars per share) | $24.87 | ||
Vested (in dollars per share) | $25.07 | ||
Forfeited (in dollars per share) | $21.50 | ||
Converted to CFG Shares (in dollars per share) | $21.50 | ||
Nonvested, End of period (in dollars per share) | $21.52 |
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 $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator (basic and diluted): | |||
Net income (loss) | $865 | ($3,426) | $643 |
Less: Preferred stock dividends | 0 | 0 | 0 |
Net income (loss) available to common stockholders | $865 | ($3,426) | $643 |
Denominator: | |||
Weighted-average common shares outstanding - basic (in Shares) | 556,674,146 | 559,998,324 | 559,998,324 |
Dilutive common shares (in Shares) | 1,050,790 | 0 | 0 |
Weighted-average common shares outstanding - diluted (in Shares) | 557,724,936 | 559,998,324 | 559,998,324 |
Earnings (loss) per common share: | |||
Basic (in Dollars per Share) | $1.55 | ($6.12) | $1.15 |
Diluted (in Dollars per Share) | $1.55 | ($6.12) | $1.15 |
PARENT_COMPANY_ONLY_FINANCIALS2
PARENT COMPANY ONLY FINANCIALS - Condensed Statements of Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Income | |||
Interest income | $624 | $488 | $624 |
Total operating income | 3,664 | 3,501 | 3,846 |
Operating expense | |||
Salaries and employee benefits | 1,678 | 1,652 | 1,743 |
Interest expense | 363 | 443 | 619 |
All other expenses | 573 | 528 | 709 |
Applicable income taxes | 403 | -42 | 381 |
Net income (loss) | 865 | -3,426 | 643 |
Other comprehensive (loss) income, net of income taxes | |||
Reclassification of net securities gains to net income, net of income taxes of ($7), ($50) and ($26), respectively | -11 | -86 | -45 |
Net unrealized securities gains (losses) arising during the periods | 198 | -285 | 138 |
Total other comprehensive income (loss), net of income taxes | 276 | -336 | 216 |
Net other comprehensive (loss) income | 276 | -336 | 216 |
Total comprehensive income (loss) | 1,141 | -3,762 | 859 |
RBS | |||
Operating Income | |||
Securities gains | 0 | 0 | 1 |
All other operating income | 5 | 2 | 4 |
Total operating income | 650 | 251 | 235 |
Operating expense | |||
Salaries and employee benefits | 63 | 38 | 52 |
Interest expense | 80 | 24 | 4 |
All other expenses | 123 | 43 | 39 |
Total operating expense | 266 | 105 | 95 |
Income before taxes and undistributed income | 384 | 146 | 140 |
Applicable income taxes | -77 | -22 | -9 |
Income before undistributed income of subsidiaries and associated companies | 461 | 168 | 149 |
Equity in undistributed income (losses) of subsidiaries and associated companies | 404 | -3,594 | 494 |
Net income (loss) | 865 | -3,426 | 643 |
Other comprehensive (loss) income, net of income taxes | |||
Net pension plan activity arising during the period | 8 | 17 | -7 |
Reclassification of net securities gains to net income, net of income taxes of ($7), ($50) and ($26), respectively | 0 | 1 | 0 |
Net unrealized securities gains (losses) arising during the periods | 1 | 0 | 0 |
Total other comprehensive income (loss), net of income taxes | 9 | 18 | -7 |
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | 267 | -354 | 223 |
Net other comprehensive (loss) income | 276 | -336 | 216 |
Total comprehensive income (loss) | 1,141 | -3,762 | 859 |
Dividend to parent | 806 | 1,200 | |
Bank Subsidiaries and Associated Banks | RBS | |||
Operating Income | |||
Dividends | 595 | 210 | 175 |
Interest income | 29 | 13 | 13 |
Management and service fees | 21 | 26 | 42 |
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | 402 | -3,595 | 501 |
Nonbank Subsidiaries and Associated Nonbank Companies | RBS | |||
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | $2 | $1 | ($7) |
PARENT_COMPANY_ONLY_FINANCIALS3
PARENT COMPANY ONLY FINANCIALS - Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Cash and due from banks | $1,171 | $1,406 | ||
Other assets | 2,412 | 2,078 | ||
TOTAL ASSETS | 132,857 | 122,154 | ||
LIABILITIES: | ||||
Long-term debt | 4,642 | 1,405 | ||
Other liabilities | 1,606 | 1,193 | ||
TOTAL LIABILITIES | 113,589 | 102,958 | ||
TOTAL STOCKHOLDERS' EQUITY | 19,268 | 19,196 | 24,129 | 23,393 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 132,857 | 122,154 | ||
RBS | ||||
ASSETS | ||||
Cash and due from banks | 280 | 494 | ||
Other assets | 214 | 178 | ||
TOTAL ASSETS | 21,763 | 20,727 | ||
LIABILITIES: | ||||
Other liabilities | 143 | 181 | ||
TOTAL LIABILITIES | 2,495 | 1,531 | ||
TOTAL STOCKHOLDERS' EQUITY | 19,268 | 19,196 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 21,763 | 20,727 | ||
Bank subsidiaries | RBS | ||||
ASSETS | ||||
Loans and advances | 1,685 | 459 | ||
Investments in subsidiaries | 19,512 | 19,522 | ||
Nonbank subsidiaries | RBS | ||||
ASSETS | ||||
Investments in subsidiaries | 72 | 73 | ||
Related bank holding companies | RBS | ||||
ASSETS | ||||
Loans and advances | 0 | 1 | ||
LIABILITIES: | ||||
Long-term debt | 2,000 | 1,000 | ||
Balances due to related bank holding companies | 2 | 0 | ||
Unaffiliated companies | RBS | ||||
LIABILITIES: | ||||
Long-term debt | $350 | $350 |
PARENT_COMPANY_ONLY_FINANCIALS4
PARENT COMPANY ONLY FINANCIALS - Condensed Cash Flow Statements (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income (loss) | $865 | ($3,426) | $643 |
Deferred income taxes | 141 | -53 | 306 |
Gain on sale of assets | 9 | 0 | 0 |
Net change in other liabilities | 239 | -398 | -169 |
Net change in other assets | -295 | 827 | 76 |
Net cash provided by operating activities | 1,390 | 2,649 | 1,714 |
INVESTING ACTIVITIES | |||
Net cash (used in) provided by investing activities | -10,274 | -2,453 | 919 |
FINANCING ACTIVITIES | |||
Repurchase of common stock | -334 | 0 | 0 |
Dividends paid | -790 | -1,185 | -150 |
Net cash provided by (used in) financing activities | 9,403 | -502 | -3,264 |
Increase (decrease) in cash and cash equivalents | 519 | -306 | -631 |
Cash and cash equivalents at beginning of period | 2,757 | 3,063 | 3,694 |
Cash and cash equivalents at end of period | 3,276 | 2,757 | 3,063 |
RBS | |||
OPERATING ACTIVITIES | |||
Net income (loss) | 865 | -3,426 | 643 |
Deferred income taxes | 27 | -11 | -12 |
Gain on sale of assets | 0 | 0 | -1 |
Equity in undistributed (earnings) losses of subsidiaries | -404 | 3,594 | -494 |
Net change in other liabilities | 18 | 7 | 47 |
Net change in other assets | -74 | 15 | -20 |
Other operating, net | 17 | 1 | -2 |
Total adjustments | -416 | 3,606 | -482 |
Net cash provided by operating activities | 449 | 180 | 161 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of securities available for sale | 0 | 0 | 3 |
Payments for investments in and advances to subsidiaries | -1,470 | -220 | -800 |
Sale or repayment of investments in and advances to subsidiaries | 945 | 315 | 1,164 |
Other investing, net | -11 | -1 | -1 |
Net cash (used in) provided by investing activities | -536 | 94 | 366 |
FINANCING ACTIVITIES | |||
Proceeds from advances from subsidiaries | 0 | 0 | 5 |
Repayment of advances from subsidiaries | 0 | -289 | -239 |
Proceeds from issuance of long-term debt | 1,000 | 1,000 | 350 |
Proceeds from issuance of common stock | 13 | 0 | 0 |
Repurchase of common stock | -334 | 0 | 0 |
Dividends paid | -806 | -1,185 | -150 |
Net cash provided by (used in) financing activities | -127 | -474 | -34 |
Increase (decrease) in cash and cash equivalents | -214 | -200 | 493 |
Cash and cash equivalents at beginning of period | 494 | 694 | 201 |
Cash and cash equivalents at end of period | $280 | $494 | $694 |
OTHER_OPERATING_EXPENSE_Detail
OTHER OPERATING EXPENSE (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Deposit insurance | $95 | $85 | $98 |
Promotional expense | 86 | 76 | 86 |
Settlements and operating losses | 89 | 51 | 58 |
Postage and delivery | 48 | 60 | 196 |
Other | 255 | 256 | 271 |
Other operating expense | $573 | $528 | $709 |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 19, 2015 |
Subsequent Event [Line Items] | ||||
Dividends paid (in dollars per share) | $1.43 | $2.12 | $0.27 | |
Dividends paid | $16 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends paid (in dollars per share) | $0.10 | |||
Dividends paid | $55 |