Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 759944 | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
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 | 537,022,384 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
ASSETS: | ||
Cash and due from banks | $954 | $1,171 |
Interest-bearing cash and due from banks | 4,050 | 2,105 |
Interest-bearing deposits in banks | 615 | 370 |
Securities available for sale, at fair value | 19,041 | 18,656 |
Securities held to maturity (fair value of $5,281 and $5,193, respectively) | 5,178 | 5,148 |
Other investment securities | 867 | 872 |
Loans held for sale, at fair value | 322 | 256 |
Other loans held for sale | 54 | 25 |
Loans and leases | 94,494 | 93,410 |
Less: Allowance for loan and lease losses | 1,202 | 1,195 |
Net loans and leases | 93,292 | 92,215 |
Derivative assets (related party balances of $14 and $1, respectively) | 742 | 629 |
Premises and equipment, net | 584 | 595 |
Bank-owned life insurance | 1,535 | 1,527 |
Goodwill | 6,876 | 6,876 |
Other assets (related party balances of $8 and $7, respectively) | 2,425 | 2,412 |
TOTAL ASSETS | 136,535 | 132,857 |
LIABILITIES: | ||
Noninterest-bearing | 26,670 | 26,086 |
Interest-bearing (related party balances of $5 and $5, respectively) | 72,320 | 69,621 |
Total deposits | 98,990 | 95,707 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Other short-term borrowed funds | 7,004 | 6,253 |
Derivative liabilities (related party balances of $276 and $387, respectively) | 616 | 612 |
Deferred taxes, net | 586 | 493 |
Long-term borrowed funds (related party balances of $2,000 and $2,000, respectively) | 3,904 | 4,642 |
Due to broker | 61 | 0 |
Other liabilities (related party balances of $33 and $30, respectively) | 1,389 | 1,606 |
TOTAL LIABILITIES | 116,971 | 113,589 |
Contingencies (refer to Note 13) | ||
STOCKHOLDERS’ EQUITY: | ||
$25.00 par value, 100,000,000 shares authorized and no shares outstanding at March 31, 2015 and December 31, 2014 | 0 | 0 |
$0.01 par value, 1,000,000,000 shares authorized, 562,673,438 shares issued and 547,490,812 shares outstanding at March 31, 2015, and 1,000,000,000 shares authorized, 560,262,638 shares issued and 545,884,519 shares outstanding at December 31, 2014 | 6 | 6 |
Additional paid-in capital | 18,707 | 18,676 |
Retained earnings | 1,448 | 1,294 |
Treasury stock, at cost, 15,182,626 and 14,378,119 shares at March 31, 2015 and December 31, 2014, respectively | -357 | -336 |
Accumulated other comprehensive loss | -240 | -372 |
TOTAL STOCKHOLDERS’ EQUITY | 19,564 | 19,268 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $136,535 | $132,857 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
ASSETS: | ||
Securities held-to-maturity, Fair Value | $5,281 | $5,193 |
Derivative assets | 742 | 629 |
Other assets | 2,425 | 2,412 |
LIABILITIES: | ||
Interest-bearing | 72,320 | 69,621 |
Derivative liabilities | 616 | 612 |
Long-term borrowed funds | 3,904 | 4,642 |
Other liabilities | 1,389 | 1,606 |
STOCKHOLDERS’ EQUITY: | ||
Preferred Stock, Par Value (in Dollars per Share) | $25 | $25 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
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 | 562,673,438 | 560,262,638 |
Common Stock, Shares Outstanding | 547,490,812 | 545,884,519 |
Treasury Stock, Shares | 15,182,626 | 14,378,119 |
Related Party | ||
ASSETS: | ||
Derivative assets | 14 | 1 |
Other assets | 8 | 7 |
LIABILITIES: | ||
Interest-bearing | 5 | 5 |
Derivative liabilities | 276 | 387 |
Long-term borrowed funds | 2,000 | 2,000 |
Other liabilities | $33 | $30 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
INTEREST INCOME: | ||
Interest and fees on loans and leases (related party balances of $18 and $18, respectively) | $779 | $730 |
Interest and fees on loans held for sale | 1 | 1 |
Interest and fees on other loans held for sale | 2 | 12 |
Investment securities | 159 | 149 |
Interest-bearing deposits in banks | 1 | 1 |
Total interest income | 942 | 893 |
INTEREST EXPENSE: | ||
Deposits | 52 | 33 |
Deposits held for sale | 0 | 2 |
Federal funds purchased and securities sold under agreements to repurchase (related party balances of $5 and $13, respectively) | 7 | 15 |
Other short-term borrowed funds (related party balances of $10 and $16, respectively) | 15 | 19 |
Long-term borrowed funds (related party balances of $20 and $12, respectively) | 32 | 16 |
Total interest expense | 106 | 85 |
Net interest income | 836 | 808 |
Provision for credit losses | 58 | 121 |
Net interest income after provision for credit losses | 778 | 687 |
NONINTEREST INCOME: | ||
Service charges and fees (related party balances of $1 and $2, respectively) | 135 | 139 |
Card fees | 52 | 56 |
Trust and investment services fees | 36 | 39 |
Foreign exchange and trade finance fees (related party balances of $35 and ($6), respectively) | 23 | 22 |
Capital markets fees (related party balances of $3 and $3, respectively) | 22 | 18 |
Mortgage banking fees | 33 | 20 |
Bank-owned life insurance income | 12 | 11 |
Securities gains, net | 8 | 25 |
Total other-than-temporary impairment losses | -31 | -34 |
Portions of loss recognized in other comprehensive income (before taxes) | 30 | 30 |
Net impairment losses recognized in earnings | 1 | 4 |
Other income (related party balances of ($68) and ($53), respectively) | 27 | 32 |
Total noninterest income | 347 | 358 |
NONINTEREST EXPENSE: | ||
Salaries and employee benefits | 419 | 405 |
Outside services (related party balances of $2 and $8, respectively) | 79 | 83 |
Occupancy | 80 | 81 |
Equipment expense | 63 | 64 |
Amortization of software | 36 | 31 |
Other operating expense | 133 | 146 |
Total noninterest expense | 810 | 810 |
Income before income tax expense | 315 | 235 |
Income tax expense | 106 | 69 |
NET INCOME | $209 | $166 |
Weighted-average number of shares outstanding: | ||
Basic (in Shares) | 546,291,363 | 559,998,324 |
Diluted (in Shares) | 549,798,717 | 559,998,324 |
Per common share information: | ||
Basic earnings (in Dollars per Share) | $0.38 | $0.30 |
Diluted earnings (in Dollars per Share) | $0.38 | $0.30 |
Dividends declared and paid (in Dollars per Share) | $0.10 | $0.04 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
INTEREST INCOME: | ||
Interest and fees on loans and leases, Related party balance | $779 | $730 |
INTEREST EXPENSE: | ||
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 7 | 15 |
Other short-term borrowed funds | 15 | 19 |
Long-term borrowed funds, Related party balance | 32 | 16 |
NONINTEREST INCOME: | ||
Service charges and fees, Related party balance | 135 | 139 |
Foreign exchange and trade finance fees, Related party balance | 23 | 22 |
Capital markets fees, Related party balance | 22 | 18 |
Other income, Related party balance | 27 | 32 |
NONINTEREST EXPENSE: | ||
Outside services, Related party balance | 79 | 83 |
Related Party | ||
INTEREST INCOME: | ||
Interest and fees on loans and leases, Related party balance | 18 | 18 |
INTEREST EXPENSE: | ||
Federal funds purchased and securities sold under agreement to repurchase, Related party balance | 5 | 13 |
Other short-term borrowed funds | 10 | 16 |
Long-term borrowed funds, Related party balance | 20 | 12 |
NONINTEREST INCOME: | ||
Service charges and fees, Related party balance | 1 | 2 |
Foreign exchange and trade finance fees, Related party balance | 35 | -6 |
Capital markets fees, Related party balance | 3 | 3 |
Other income, Related party balance | -68 | -53 |
NONINTEREST EXPENSE: | ||
Outside services, Related party balance | $2 | $8 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $209 | $166 |
Other comprehensive income (loss): | ||
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of $39 and $34, respectively | 65 | 59 |
Reclassification adjustment for net derivative losses included in net income, net of income taxes of ($1) and $4, respectively | -2 | 7 |
Net unrealized available for sale securities gains (losses) arising during the periods, net of income taxes of $54 and $41, respectively | 90 | 71 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of ($11) and ($11), respectively | -19 | -19 |
Reclassification of net securities gains to net income, net of income taxes of ($3) and ($7), respectively | -4 | -14 |
Defined benefit pension plans: | ||
Amortization of actuarial loss, net of income taxes $1 and $1, respectively | 2 | 1 |
Total other comprehensive income, net of income taxes | 132 | 105 |
Total comprehensive income | $341 | $271 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized derivative instrument gains (losses) arising during the periods, Tax | $39 | $34 |
Reclassification adjustment for net derivative losses included in net income, Tax | -1 | 4 |
Net unrealized securities gains (losses) arising during the periods, Tax | 54 | 41 |
Other-than-temporary impairment not recognized in earnings on securities, Tax | -11 | -11 |
Reclassification of net securities gains to net income, Tax | -3 | -7 |
Amortization of actuarial loss, Tax | $1 | $1 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
In Millions, except Share data, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2013 | $19,196 | $6 | $18,603 | $1,235 | $0 | ($648) |
Beginning balance (in shares) at Dec. 31, 2013 | 560,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to RBS | -25 | -25 | ||||
Net income | 166 | 166 | ||||
Other comprehensive income (loss) | 105 | 105 | ||||
Total comprehensive income | 271 | 166 | 105 | |||
Ending balance at Mar. 31, 2014 | 19,442 | 6 | 18,603 | 1,376 | 0 | -543 |
Ending balance (in shares) at Mar. 31, 2014 | 560,000,000 | |||||
Beginning balance at Dec. 31, 2014 | 19,268 | 6 | 18,676 | 1,294 | -336 | -372 |
Beginning balance (in shares) at Dec. 31, 2014 | 546,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividend to common stockholders | -16 | -16 | ||||
Dividend to RBS | -39 | -39 | ||||
Common shares repurchased for share-based compensation (in shares) | 804,507 | 1,000,000 | ||||
Share-based compensation plans | 8 | 29 | -21 | |||
Employee stock purchase plan shares purchased | 2 | 2 | ||||
Net income | 209 | 209 | ||||
Other comprehensive income (loss) | 132 | 132 | ||||
Total comprehensive income | 341 | 209 | 132 | |||
Ending balance at Mar. 31, 2015 | $19,564 | $6 | $18,707 | $1,448 | ($357) | ($240) |
Ending balance (in shares) at Mar. 31, 2015 | 547,000,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES | ||
Net income | $209 | $166 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 58 | 121 |
Originations of mortgage loans held for sale | -495 | -307 |
Proceeds from sales of mortgage loans held for sale | 462 | 352 |
Purchases of commercial loans held for sale | -288 | 0 |
Proceeds from sales of commercial loans held for sale | 262 | 0 |
Amortization of terminated cash flow hedges (related party balances of $4 and $12, respectively) | 4 | 12 |
Depreciation, amortization and accretion | 113 | 96 |
Mortgage servicing rights valuation recovery | -1 | -4 |
Securities impairment | 1 | 4 |
Deferred income taxes | 14 | 58 |
Share-based compensation | 6 | 19 |
Loss on disposal/impairment of premises and equipment | 0 | 1 |
Gain on sales of: Debt securities available for sale | -8 | -25 |
Gain on sales of: Marketable equity securities available for sale | -2 | 0 |
(Increase) decrease in other assets (related party balances of ($13) and $61, respectively) | -136 | 280 |
Decrease in other liabilities (related party balances of ($109) and ($38), respectively) | -101 | -73 |
Net cash provided by operating activities | 98 | 700 |
INVESTING ACTIVITIES | ||
Purchases of securities available for sale | -2,190 | -3,697 |
Proceeds from maturities and paydowns of securities available for sale | 865 | 694 |
Proceeds from sales of securities available for sale | 1,101 | 711 |
Purchases of other investment securities | -6 | 0 |
Proceeds from sales of other investment securities | 11 | 0 |
Purchases of securities held to maturity | -181 | -1,174 |
Proceeds from maturities and paydowns of securities held to maturity | 150 | 40 |
Net decrease in interest-bearing deposits in banks | -245 | -66 |
Net increase in loans and leases | -1,183 | -1,486 |
Net increase in bank-owned life insurance | -8 | -11 |
Premises and equipment: Purchases | -18 | -7 |
Premises and equipment: Proceeds from sales | 11 | 0 |
Capitalization of software | -47 | -40 |
Net cash used in investing activities | -1,740 | -5,036 |
FINANCING ACTIVITIES | ||
Net increase in deposits | 3,283 | 470 |
Net increase in federal funds purchased and securities sold under agreements to repurchase | 145 | 1,289 |
Net increase in other short-term borrowed funds | 0 | 2,700 |
Repayments of long-term borrowed funds | -3 | -3 |
Dividends declared and paid to common stockholders | -16 | 0 |
Dividends declared and paid to RBS | -39 | -25 |
Net cash provided by financing activities | 3,370 | 4,431 |
Increase in cash and cash equivalents | 1,728 | 95 |
Cash and cash equivalents at beginning of period | 3,276 | 2,757 |
Cash and cash equivalents at end of period | $5,004 | $2,852 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Amortization of terminated cash flow hedges | $4 | $12 |
(Increase) decrease in other assets | -136 | 280 |
Decrease in other liabilities | -101 | -73 |
Related Party | ||
Amortization of terminated cash flow hedges | 4 | 12 |
(Increase) decrease in other assets | -13 | 61 |
Decrease in other liabilities | ($109) | ($38) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
Basis of Presentation | |
The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc., have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These unaudited interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s Form 10-K for the year ended December 31, 2014. The Company is an indirect subsidiary of The Royal Bank of Scotland Group plc. The Company’s principal business activity is banking, conducted through its subsidiaries, Citizens Bank, N.A. and Citizens Bank of Pennsylvania. | |
The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. | |
On August 22, 2014, the Company’s Board of Directors declared a 165,582-for-1 stock split. Except for the amount of authorized shares and par value, all references to share and per share amounts in the unaudited interim Consolidated Financial Statements and accompanying Notes have been retroactively adjusted to reflect the stock split. | |
Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. | |
Recent Accounting Pronouncements | |
In February 2015, the FASB issued ASU No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This standard focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (e.g., collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). This new standard simplifies consolidation accounting by reducing the number of consolidation models. The ASU will be effective for the Company beginning on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The potential impact the adoption of this guidance will have to the Company’s unaudited interim Consolidated Financial Statements in under review. | |
In January 2015, the FASB issued ASU No. 2015-01 “Income Statement: Extraordinary and Unusual Items.” This ASU eliminates from GAAP the concept of extraordinary items. Accounting Standards Codification Subtopic 225-20 required that an entity separately classify, present, and disclose extraordinary events and transactions that were unusual in nature and infrequent in occurrence. This ASU is effective for the Company, beginning on January 1, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. |
SECURITIES
SECURITIES | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||
SECURITIES | SECURITIES | ||||||||||||||||||||||||||
The following table provides the major components of securities at amortized cost and fair value: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(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 | 10 | — | — | 10 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 17,999 | 382 | (25 | ) | 18,356 | 17,683 | 301 | (50 | ) | 17,934 | |||||||||||||||||
Other/non-agency | 667 | 4 | (31 | ) | 640 | 703 | 4 | (35 | ) | 672 | |||||||||||||||||
Total mortgage-backed securities | 18,666 | 386 | (56 | ) | 18,996 | 18,386 | 305 | (85 | ) | 18,606 | |||||||||||||||||
Total debt securities available for sale | 18,691 | 386 | (56 | ) | 19,021 | 18,411 | 305 | (85 | ) | 18,631 | |||||||||||||||||
Marketable equity securities | 7 | 1 | — | 8 | 10 | 3 | — | 13 | |||||||||||||||||||
Other equity securities | 12 | — | — | 12 | 12 | — | — | 12 | |||||||||||||||||||
Total equity securities available for sale | 19 | 1 | — | 20 | 22 | 3 | — | 25 | |||||||||||||||||||
Total securities available for sale | $18,710 | $387 | ($56 | ) | $19,041 | $18,433 | $308 | ($85 | ) | $18,656 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,799 | $52 | ($4 | ) | $3,847 | $3,728 | $22 | ($31 | ) | $3,719 | |||||||||||||||||
Other/non-agency | 1,379 | 55 | — | 1,434 | 1,420 | 54 | — | 1,474 | |||||||||||||||||||
Total securities held to maturity | $5,178 | $107 | ($4 | ) | $5,281 | $5,148 | $76 | ($31 | ) | $5,193 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $468 | $— | $— | $468 | $477 | $— | $— | $477 | |||||||||||||||||||
Federal Home Loan Bank stock | 393 | — | — | 393 | 390 | — | — | 390 | |||||||||||||||||||
Venture capital and other investments | 6 | — | — | 6 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $867 | $— | $— | $867 | $872 | $— | $— | $872 | |||||||||||||||||||
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: | |||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||
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 | 14 | 561 | (2 | ) | 40 | 1,292 | (27 | ) | 54 | 1,853 | (29 | ) | |||||||||||||||
Other/non-agency | 6 | 75 | (2 | ) | 17 | 385 | (29 | ) | 23 | 460 | (31 | ) | |||||||||||||||
Total mortgage-backed securities | 20 | 636 | (4 | ) | 57 | 1,677 | (56 | ) | 77 | 2,313 | (60 | ) | |||||||||||||||
Total | 21 | $646 | ($4 | ) | 57 | $1,677 | ($56 | ) | 78 | $2,323 | ($60 | ) | |||||||||||||||
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 | ) | |||||||||||||||
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: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Cumulative balance at beginning of period | $62 | $56 | |||||||||||||||||||||||||
Credit impairments recognized in earnings on securities that have been previously impaired | 1 | 4 | |||||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (1 | ) | (1 | ) | |||||||||||||||||||||||
Cumulative balance at end of period | $62 | $59 | |||||||||||||||||||||||||
Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of March 31, 2015 and 2014 were $62 million and $59 million, respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of March 31, 2015 and 2014. In the three months ended March 31, 2015 and 2014, the Company recognized credit related other-than-temporary impairment losses in earnings of $1 million and $4 million, respectively, related to non-agency MBS in the AFS portfolio. There were no impaired debt securities sold during the three months ended March 31, 2015 and 2014. Reductions in credit losses due to increases in cash flow expectations were $1 million for the three months ended March 31, 2015 and 2014, 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. | |||||||||||||||||||||||||||
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. Any subsequent increases in the valuation of impaired debt securities do not impact their recorded cost bases. As of March 31, 2015 and 2014, $30 million of pre-tax non-credit related losses were deferred in OCI. | |||||||||||||||||||||||||||
The amortized cost and fair value of debt securities at March 31, 2015 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 | 2,196 | 15,748 | 17,999 | ||||||||||||||||||||||
Other/non-agency | — | 54 | 44 | 569 | 667 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 107 | 2,240 | 16,327 | 18,691 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,799 | 3,799 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,379 | 1,379 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,178 | 5,178 | ||||||||||||||||||||||
Total amortized cost of debt securities | $17 | $107 | $2,240 | $21,505 | $23,869 | ||||||||||||||||||||||
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 | 2,226 | 16,072 | 18,356 | ||||||||||||||||||||||
Other/non-agency | — | 54 | 45 | 541 | 640 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 110 | 2,271 | 16,623 | 19,021 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,847 | 3,847 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,434 | 1,434 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,281 | 5,281 | ||||||||||||||||||||||
Total fair value of debt securities | $17 | $110 | $2,271 | $21,904 | $24,302 | ||||||||||||||||||||||
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Taxable | $159 | $149 | |||||||||||||||||||||||||
Non-taxable | — | — | |||||||||||||||||||||||||
Total interest income from investment securities | $159 | $149 | |||||||||||||||||||||||||
Realized gains and losses on AFS securities are shown below: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Gains on sale of debt securities | $12 | $25 | |||||||||||||||||||||||||
Losses on sale of debt securities | (4 | ) | — | ||||||||||||||||||||||||
Debt securities gains, net | $8 | $25 | |||||||||||||||||||||||||
Equity securities gains | $2 | $— | |||||||||||||||||||||||||
The amortized cost and fair value of securities pledged are shown below: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $4,334 | $4,423 | $3,650 | $3,701 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,315 | 1,367 | 1,355 | 1,407 | |||||||||||||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,657 | 3,745 | 3,453 | 3,520 | |||||||||||||||||||||||
There were no loan securitizations for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||
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, 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: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(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 sold under agreements to repurchase | ($3,400 | ) | $— | ($3,400 | ) | ($2,600 | ) | $— | ($2,600 | ) | |||||||||||||||||
Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 12 “Derivatives.” | |||||||||||||||||||||||||||
Securities under the agreements to repurchase or resell are accounted for as secured borrowings. The following table presents the Company's related activity, by collateral type and remaining contractual maturity, at March 31, 2015: | |||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||
(in millions) | Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | ||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | $— | ($350 | ) | ($1,000 | ) | ($2,050 | ) | ($3,400 | ) | ||||||||||||||||||
For these securities sold under the agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. The Company manages the risk by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. |
LOANS_AND_LEASES
LOANS AND LEASES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
LOANS AND LEASES | LOANS AND LEASES | |||||||
A summary of the loans and leases portfolio follows: | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Commercial | $32,249 | $31,431 | ||||||
Commercial real estate | 7,863 | 7,809 | ||||||
Leases | 3,870 | 3,986 | ||||||
Total commercial | 43,982 | 43,226 | ||||||
Residential mortgages | 11,808 | 11,832 | ||||||
Home equity loans | 3,212 | 3,424 | ||||||
Home equity lines of credit | 15,127 | 15,423 | ||||||
Home equity loans serviced by others (1) | 1,192 | 1,228 | ||||||
Home equity lines of credit serviced by others (1) | 544 | 550 | ||||||
Automobile | 13,179 | 12,706 | ||||||
Student | 2,852 | 2,256 | ||||||
Credit cards | 1,588 | 1,693 | ||||||
Other retail | 1,010 | 1,072 | ||||||
Total retail | 50,512 | 50,184 | ||||||
Total loans and leases (2) (3) | $94,494 | $93,410 | ||||||
(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 $376 million as of March 31, 2015 and $281 million as of December 31, 2014. | ||||||||
(3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $18.0 billion and $17.9 billion at March 31, 2015 and December 31, 2014, respectively. | ||||||||
Loans held for sale totaled $322 million and $256 million at March 31, 2015 and December 31, 2014, respectively, and consisted of residential mortgages originated for sale and the commercial trading portfolio. Other loans held for sale totaled $54 million and $25 million at March 31, 2015 and December 31, 2014, respectively, and consisted of commercial loan syndications and a credit card portfolio transferred to held for sale. In March 2015, the Company transferred $41 million to loans held for sale associated with a terminated agent credit card services agreement consisting of $43 million of outstanding credit card balances and a $2 million valuation allowance. The terms of the agreement provided the agent the option, after a designated period of time, to purchase the credit card relationships covered under the agreement from Citizens or cause another financial institution to purchase the interests in these credit card relationships. The transaction is expected to close in mid-2015. | ||||||||
Loans pledged as collateral for FHLB borrowed funds totaled $22.8 billion and $22.0 billion at March 31, 2015 and December 31, 2014, respectively. This collateral consists primarily of residential mortgages and home equity loans. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, totaled $13.0 billion and $11.8 billion at March 31, 2015 and December 31, 2014, respectively. | ||||||||
During the three months ended March 31, 2015, the Company purchased a portfolio of residential mortgages with an outstanding principal balance of $249 million, a portfolio of automobile loans with an outstanding principal balance of $393 million, and a portfolio of student loans with an outstanding principal balance of $261 million. The Company sold a portfolio of residential mortgages with an outstanding principal balance of $273 million as well as commercial leases with an outstanding principal balance of $111 million during the three months ended March 31, 2015. | ||||||||
In March 2014, the Company purchased a portfolio of residential mortgages with an outstanding principal balance of $483 million, a portfolio of automobile loans with an outstanding principal balance of $202 million and a portfolio of student loans with an outstanding principal balance of $40 million. The Company also sold a portfolio of residential mortgage loans with outstanding balances of $126 million in March 2014. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2014, 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. | ||||||||||||||||||||
There were no 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: | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2015 | $544 | $651 | $1,195 | |||||||||||||||||
Charge-offs | (6 | ) | (109 | ) | (115 | ) | ||||||||||||||
Recoveries | 28 | 33 | 61 | |||||||||||||||||
Net recoveries (charge-offs) | 22 | (76 | ) | (54 | ) | |||||||||||||||
Sales/Other | — | (2 | ) | (2 | ) | |||||||||||||||
Provision charged to income | 12 | 51 | 63 | |||||||||||||||||
Allowance for loan and lease losses as of March 31, 2015 | 578 | 624 | 1,202 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2015 | 61 | — | 61 | |||||||||||||||||
Credit for unfunded lending commitments | (5 | ) | — | (5 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of March 31, 2015 | 56 | — | 56 | |||||||||||||||||
Total allowance for credit losses as of March 31, 2015 | $634 | $624 | $1,258 | |||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | |||||||||||||||||
Charge-offs | (6 | ) | (122 | ) | (128 | ) | ||||||||||||||
Recoveries | 14 | 27 | 41 | |||||||||||||||||
Net recoveries (charge-offs) | 8 | (95 | ) | (87 | ) | |||||||||||||||
Provision charged to income | 21 | 104 | 125 | |||||||||||||||||
Allowance for loan and lease losses as of March 31, 2014 | 527 | 732 | 1,259 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | |||||||||||||||||
Credit for unfunded lending commitments | (4 | ) | — | (4 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of March 31, 2014 | 35 | — | 35 | |||||||||||||||||
Total allowance for credit losses as of March 31, 2014 | $562 | $732 | $1,294 | |||||||||||||||||
The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: | ||||||||||||||||||||
31-Mar-15 | December 31, 2014 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $194 | $1,202 | $1,396 | $205 | $1,208 | $1,413 | ||||||||||||||
Formula-based evaluation | 43,788 | 49,310 | 93,098 | 43,021 | 48,976 | 91,997 | ||||||||||||||
Total | $43,982 | $50,512 | $94,494 | $43,226 | $50,184 | $93,410 | ||||||||||||||
The following is a summary of the allowance for credit losses by evaluation method: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $35 | $107 | $142 | $20 | $109 | $129 | ||||||||||||||
Formula-based evaluation | 599 | 517 | 1,116 | 585 | 542 | 1,127 | ||||||||||||||
Allowance for credit losses | $634 | $624 | $1,258 | $605 | $651 | $1,256 | ||||||||||||||
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: | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $30,623 | $903 | $626 | $97 | $32,249 | |||||||||||||||
Commercial real estate | 7,547 | 198 | 52 | 66 | 7,863 | |||||||||||||||
Leases | 3,813 | 6 | 51 | — | 3,870 | |||||||||||||||
Total | $41,983 | $1,107 | $729 | $163 | $43,982 | |||||||||||||||
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 | |||||||||||||||
The recorded investment in classes of retail loans, categorized by delinquency status is as follows: | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential mortgages | $11,373 | $80 | $97 | $258 | $11,808 | |||||||||||||||
Home equity loans | 2,817 | 193 | 57 | 145 | 3,212 | |||||||||||||||
Home equity lines of credit | 14,471 | 386 | 77 | 193 | 15,127 | |||||||||||||||
Home equity loans serviced by others (1) | 1,082 | 67 | 22 | 21 | 1,192 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 455 | 59 | 11 | 19 | 544 | |||||||||||||||
Automobile | 12,378 | 695 | 85 | 21 | 13,179 | |||||||||||||||
Student | 2,725 | 70 | 27 | 30 | 2,852 | |||||||||||||||
Credit cards | 1,517 | 37 | 18 | 16 | 1,588 | |||||||||||||||
Other retail | 929 | 61 | 15 | 5 | 1,010 | |||||||||||||||
Total | $47,747 | $1,648 | $409 | $708 | $50,512 | |||||||||||||||
(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, 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. | ||||||||||||||||||||
Nonperforming Assets | ||||||||||||||||||||
A summary of nonperforming loans and leases by class is as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(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 | $94 | $3 | $97 | $113 | $1 | $114 | ||||||||||||||
Commercial real estate | 60 | — | 60 | 50 | — | 50 | ||||||||||||||
Leases | 1 | — | 1 | — | — | — | ||||||||||||||
Total commercial | 155 | 3 | 158 | 163 | 1 | 164 | ||||||||||||||
Residential mortgages | 347 | — | 347 | 345 | — | 345 | ||||||||||||||
Home equity loans | 210 | — | 210 | 203 | — | 203 | ||||||||||||||
Home equity lines of credit | 270 | — | 270 | 257 | — | 257 | ||||||||||||||
Home equity loans serviced by others (1) | 44 | — | 44 | 47 | — | 47 | ||||||||||||||
Home equity lines of credit serviced by others (1) | 25 | — | 25 | 25 | — | 25 | ||||||||||||||
Automobile | 30 | — | 30 | 21 | — | 21 | ||||||||||||||
Student | 26 | 4 | 30 | 11 | 6 | 17 | ||||||||||||||
Credit cards | 16 | — | 16 | 16 | 1 | 17 | ||||||||||||||
Other retail | 4 | 2 | 6 | 5 | — | 5 | ||||||||||||||
Total retail | 972 | 6 | 978 | 930 | 7 | 937 | ||||||||||||||
Total | $1,127 | $9 | $1,136 | $1,093 | $8 | $1,101 | ||||||||||||||
(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. | ||||||||||||||||||||
The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings are in process was $232 million as of March 31, 2015. | ||||||||||||||||||||
A summary of other nonperforming assets is as follows: | ||||||||||||||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance: | ||||||||||||||||||||
Commercial | $1 | $3 | ||||||||||||||||||
Retail | 37 | 39 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance | $38 | $42 | ||||||||||||||||||
Nonperforming assets consist primarily of other real estate owned and are presented in other assets on the Consolidated Balance Sheets. | ||||||||||||||||||||
A summary of key performance indicators is as follows: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.17 | % | 0.18 | % | ||||||||||||||||
Nonperforming retail loans as a percentage of total loans and leases | 1.03 | 1 | ||||||||||||||||||
Total nonperforming loans and leases as a percentage of total loans and leases | 1.2 | % | 1.18 | % | ||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.12 | % | 0.13 | % | ||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.74 | 0.73 | ||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.86 | % | 0.86 | % | ||||||||||||||||
The following is an analysis of the age of the past due amounts (accruing and nonaccruing): | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(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 | $42 | $97 | $139 | $57 | $114 | $171 | ||||||||||||||
Commercial real estate | 19 | 60 | 79 | 26 | 50 | 76 | ||||||||||||||
Leases | 9 | 1 | 10 | 3 | — | 3 | ||||||||||||||
Total commercial | 70 | 158 | 228 | 86 | 164 | 250 | ||||||||||||||
Residential mortgages | 97 | 258 | 355 | 97 | 269 | 366 | ||||||||||||||
Home equity loans | 57 | 145 | 202 | 60 | 145 | 205 | ||||||||||||||
Home equity lines of credit | 77 | 193 | 270 | 73 | 198 | 271 | ||||||||||||||
Home equity loans serviced by others (1) | 22 | 21 | 43 | 26 | 23 | 49 | ||||||||||||||
Home equity lines of credit serviced by others (1) | 11 | 19 | 30 | 10 | 19 | 29 | ||||||||||||||
Automobile | 85 | 21 | 106 | 93 | 16 | 109 | ||||||||||||||
Student | 27 | 30 | 57 | 25 | 17 | 42 | ||||||||||||||
Credit cards | 18 | 16 | 34 | 22 | 17 | 39 | ||||||||||||||
Other retail | 15 | 5 | 20 | 18 | 4 | 22 | ||||||||||||||
Total retail | 409 | 708 | 1,117 | 424 | 708 | 1,132 | ||||||||||||||
Total | $479 | $866 | $1,345 | $510 | $872 | $1,382 | ||||||||||||||
(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: | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(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 | $97 | $30 | $41 | $163 | $138 | |||||||||||||||
Commercial real estate | 20 | 5 | 36 | 64 | 56 | |||||||||||||||
Total commercial | 117 | 35 | 77 | 227 | 194 | |||||||||||||||
Residential mortgages | 129 | 17 | 316 | 605 | 445 | |||||||||||||||
Home equity loans | 100 | 11 | 173 | 337 | 273 | |||||||||||||||
Home equity lines of credit | 27 | 2 | 130 | 191 | 157 | |||||||||||||||
Home equity loans serviced by others (1) | 59 | 9 | 29 | 100 | 88 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 4 | 1 | 7 | 14 | 11 | |||||||||||||||
Automobile | 2 | — | 10 | 18 | 12 | |||||||||||||||
Student | 165 | 49 | 1 | 166 | 166 | |||||||||||||||
Credit cards | 31 | 13 | — | 31 | 31 | |||||||||||||||
Other retail | 16 | 5 | 3 | 22 | 19 | |||||||||||||||
Total retail | 533 | 107 | 669 | 1,484 | 1,202 | |||||||||||||||
Total | $650 | $142 | $746 | $1,711 | $1,396 | |||||||||||||||
(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, 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. | ||||||||||||||||||||
Additional information on impaired loans is as follows: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $1 | $142 | $— | $102 | ||||||||||||||||
Commercial real estate | — | 51 | 1 | 117 | ||||||||||||||||
Total commercial | 1 | 193 | 1 | 219 | ||||||||||||||||
Residential mortgages | 4 | 441 | 3 | 442 | ||||||||||||||||
Home equity loans | 2 | 268 | 2 | 248 | ||||||||||||||||
Home equity lines of credit | 1 | 156 | 1 | 159 | ||||||||||||||||
Home equity loans serviced by others (1) | 1 | 88 | 1 | 101 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | — | 11 | — | 11 | ||||||||||||||||
Automobile | — | 11 | — | 9 | ||||||||||||||||
Student | 2 | 164 | 2 | 158 | ||||||||||||||||
Credit cards | 1 | 30 | 1 | 39 | ||||||||||||||||
Other retail | — | 19 | — | 23 | ||||||||||||||||
Total retail | 11 | 1,188 | 10 | 1,190 | ||||||||||||||||
Total | $12 | $1,381 | $11 | $1,409 | ||||||||||||||||
(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 $147 million and $176 million on March 31, 2015 and December 31, 2014, respectively. Retail TDRs totaled $1.2 billion on March 31, 2015 and December 31, 2014. Commitments to lend additional funds to debtors owing receivables which were TDRs were $34 million and $53 million on March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||
The following table summarizes how loans were modified during the three months ended March 31, 2015, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015, and were paid off in full, charged off, or sold prior to March 31, 2015. | ||||||||||||||||||||
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 | 6 | $1 | $1 | 28 | $10 | $10 | ||||||||||||||
Commercial real estate | 1 | — | — | — | — | — | ||||||||||||||
Total commercial | 7 | 1 | 1 | 28 | 10 | 10 | ||||||||||||||
Residential mortgages | 33 | 6 | 6 | 10 | 2 | 2 | ||||||||||||||
Home equity loans | 21 | 1 | 1 | 37 | 5 | 5 | ||||||||||||||
Home equity lines of credit | — | — | — | 3 | — | — | ||||||||||||||
Home equity loans serviced by others (3) | 17 | 1 | 1 | — | — | — | ||||||||||||||
Automobile | 20 | 1 | 1 | 1 | — | — | ||||||||||||||
Credit cards | 604 | 3 | 3 | — | — | — | ||||||||||||||
Total retail | 695 | 12 | 12 | 51 | 7 | 7 | ||||||||||||||
Total | 702 | $13 | $13 | 79 | $17 | $17 | ||||||||||||||
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 | 1 | $2 | $2 | ($1 | ) | $— | ||||||||||||||
Commercial real estate | 1 | 4 | 4 | — | — | |||||||||||||||
Total commercial | 2 | 6 | 6 | (1 | ) | — | ||||||||||||||
Residential mortgages | 64 | 6 | 6 | (1 | ) | — | ||||||||||||||
Home equity loans | 197 | 10 | 10 | — | — | |||||||||||||||
Home equity lines of credit | 135 | 8 | 7 | — | 1 | |||||||||||||||
Home equity loans serviced by others (3) | 46 | 2 | 2 | — | 1 | |||||||||||||||
Home equity lines of credit serviced by others (3) | 7 | — | — | — | — | |||||||||||||||
Automobile | 297 | 5 | 4 | — | 1 | |||||||||||||||
Student | 381 | 8 | 7 | 2 | — | |||||||||||||||
Other retail | 11 | — | — | — | — | |||||||||||||||
Total retail | 1,138 | 39 | 36 | 1 | 3 | |||||||||||||||
Total | 1,140 | $45 | $42 | $— | $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) 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 three months ended March 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 March 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 | 7 | $1 | $1 | 13 | $1 | $1 | ||||||||||||||
Commercial real estate | 1 | — | — | — | — | — | ||||||||||||||
Total commercial | 8 | 1 | 1 | 13 | 1 | 1 | ||||||||||||||
Residential mortgages | 42 | 6 | 6 | 12 | 2 | 1 | ||||||||||||||
Home equity loans | 31 | 2 | 2 | 58 | 3 | 3 | ||||||||||||||
Home equity lines of credit | 1 | — | — | 70 | 4 | 4 | ||||||||||||||
Home equity loans serviced by others (3) | 14 | 1 | 1 | — | — | — | ||||||||||||||
Home equity lines of credit serviced by others (3) | 2 | — | — | — | — | — | ||||||||||||||
Automobile | 22 | — | — | — | — | — | ||||||||||||||
Credit cards | 577 | 3 | 3 | — | — | — | ||||||||||||||
Other retail | 2 | — | — | — | — | — | ||||||||||||||
Total retail | 691 | 12 | 12 | 140 | 9 | 8 | ||||||||||||||
Total | 699 | $13 | $13 | 153 | $10 | $9 | ||||||||||||||
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 | 1 | $— | $— | ($1 | ) | $— | ||||||||||||||
Total commercial | 1 | — | — | (1 | ) | — | ||||||||||||||
Residential mortgages | 132 | 15 | 14 | (1 | ) | — | ||||||||||||||
Home equity loans | 210 | 14 | 14 | — | — | |||||||||||||||
Home equity lines of credit | 81 | 6 | 5 | — | 2 | |||||||||||||||
Home equity loans serviced by others (3) | 46 | 3 | 2 | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 13 | — | — | — | — | |||||||||||||||
Automobile | 145 | 2 | 2 | — | 1 | |||||||||||||||
Student | 457 | 8 | 8 | — | — | |||||||||||||||
Other retail | 9 | — | — | — | — | |||||||||||||||
Total retail | 1,093 | 48 | 45 | (1 | ) | 3 | ||||||||||||||
Total | 1,094 | $48 | $45 | ($2 | ) | $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) 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 table below summarizes TDRs that defaulted during the three months ended March 31, 2015 and 2014 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 March 31, 2015 and 2014. 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. | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 6 | $— | 11 | $1 | ||||||||||||||||
Commercial real estate | — | — | 1 | 1 | ||||||||||||||||
Total commercial | 6 | — | 12 | 2 | ||||||||||||||||
Residential mortgages | 49 | 7 | 40 | 4 | ||||||||||||||||
Home equity loans | 51 | 3 | 84 | 6 | ||||||||||||||||
Home equity lines of credit | 40 | 2 | 90 | 4 | ||||||||||||||||
Home equity loans serviced by others (1) | 16 | — | 16 | — | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 1 | — | 9 | — | ||||||||||||||||
Automobile | 23 | — | 32 | — | ||||||||||||||||
Student | 65 | 2 | 97 | 2 | ||||||||||||||||
Credit cards | 102 | 1 | 166 | 1 | ||||||||||||||||
Other retail | 2 | — | 6 | — | ||||||||||||||||
Total retail | 349 | 15 | 540 | 17 | ||||||||||||||||
Total | 355 | $15 | 552 | $19 | ||||||||||||||||
(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 March 31, 2015 and December 31, 2014, 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, and the retail loan portfolio is diversified by product. 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: | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $697 | $1,429 | $1,042 | $— | $3,168 | |||||||||||||||
Interest only/negative amortization | 937 | — | — | — | 937 | |||||||||||||||
Low introductory rate | — | — | — | 87 | 87 | |||||||||||||||
Multiple characteristics and other | 21 | — | — | — | 21 | |||||||||||||||
Total | $1,655 | $1,429 | $1,042 | $87 | $4,213 | |||||||||||||||
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 | |||||||||||||||
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2015 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES |
Low Income Housing Tax Credit Partnerships | |
The Company makes equity investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to assist in achieving goals of the Community Reinvestment Act and to earn an adequate return of capital. Each LIHTC partnership is managed by a general partner who exercises full and exclusive control over the affairs of the limited partnership, including: selecting and investing in specific properties, company expenditures and use of working capital funds, borrowing funds, disposition of fund property, contract authority, employment of agents, and litigation resolution. The limited partner(s) may not participate in the management, control, conduct or operation of the limited partnership’s business and the general partner may only be removed by the limited partner(s) if the general partner fails to comply with the terms of the partnership agreement or is negligent in performing its duties. In addition, Citizens, as a limited partner, is only liable for capital contributions up to a maximum amount specified in the investment agreement. For all of these reasons, the Company believes that the general partner of each limited partnership has the power to direct the activities which most significantly affect the performance of each partnership and that the Company is therefore not the primary beneficiary of any LIHTC partnership. Accordingly, the Company does not consolidate any of its LIHTC partnership investments. | |
Effective January 1, 2015, the Company adopted ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” and uses the proportional amortization method to account for all of its investments in its LIHTC partnership investments. The adoption of ASU 2014-01 under the retrospective method would have had an immaterial effect on the Company’s financial statements; therefore, the Company applied ASU 2014-01 prospectively. Under the proportional amortization method, the Company recognizes the net investment performance in the Consolidated Statements of Operations as a component of income tax expense. LIHTC investment balances are reported in other assets in the Company’s Consolidated Balance Sheets, with unfunded commitments reported in other liabilities. | |
At March 31, 2015, the Company’s balance of LIHTC investments was $469 million (consisting of a gross investment balance of $481 million less amortization of $12 million), with unfunded commitments totaling $319 million. For the three months ended March 31, 2015, the Company recognized $12 million of amortization expense, $11 million of tax credits and $4 million of other tax benefits associated with these investments in the provision for income taxes. No LIHTC investment impairment losses were recognized during the three months ended March 31, 2015. |
GOODWILL
GOODWILL | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 three months ended March 31, 2015 and 2014 were: | ||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Total | |||||||||
Balance at December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at March 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Balance at December 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at March 31, 2015 | $2,136 | $4,740 | $6,876 | |||||||||
Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at March 31, 2015 and 2014. The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at March 31, 2015 and 2014. | ||||||||||||
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 two reporting units — Consumer Banking and Commercial Banking — based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. No impairment was recorded for the three months ended March 31, 2015 or the year ended December 31, 2014. |
MORTGAGE_BANKING
MORTGAGE BANKING | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 $747 million and $352 million of proceeds from the sale of residential mortgages for the three months ended March 31, 2015 and 2014, respectively, and recognized gains on such sales of $21 million and $8 million for the three months ended March 31, 2015 and 2014, respectively. Pursuant to the standard representations and warranties obligations discussed in the preceding paragraph, the Company repurchased residential mortgages loans totaling $4 million and $10 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Mortgage servicing fees, a component of mortgage banking income, were $14 million and $16 million for the three months ended March 31, 2015 and 2014, respectively. The Company recorded valuation recoveries of $1 million and $4 million for its MSRs for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Changes related to MSRs were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $184 | $208 | ||||||
Amount capitalized | 6 | 4 | ||||||
Amortization | (10 | ) | (11 | ) | ||||
Carrying amount before valuation allowance | 180 | 201 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 18 | 23 | ||||||
Valuation recovery | (1 | ) | (4 | ) | ||||
Balance at end of period | 17 | 19 | ||||||
Net carrying value of MSRs | $163 | $182 | ||||||
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: | ||||||||
(dollars in millions) | March 31, 2015 | December 31, 2014 | ||||||
Fair value | $176 | $179 | ||||||
Weighted average life (in years) | 5.1 | 5.2 | ||||||
Weighted average constant prepayment rate | 12.8% | 12.4% | ||||||
Weighted average discount rate | 9.8% | 9.8% | ||||||
The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average life (in years) | 4.7 | 5.2 | ||||||
Weighted average constant prepayment rate | 12.2 | % | 12.1 | % | ||||
Weighted average discount rate | 9.6 | % | 10.4 | % | ||||
The sensitivity analysis below as of March 31, 2015 and 2014 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 (e.g., 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. | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Prepayment rate: | ||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $6 | $9 | ||||||
Decline in fair value from 100 basis points adverse change in interest rates | $12 | $15 | ||||||
Weighted average discount rate: | ||||||||
Decline in fair value from 50 basis points adverse change | $3 | $3 | ||||||
Decline in fair value from 100 basis points adverse change | $6 | $6 | ||||||
BORROWED_FUNDS
BORROWED FUNDS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
BORROWED FUNDS | BORROWED FUNDS | |||||||
The following is a summary of the Company’s short-term borrowed funds: | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Federal funds purchased | $— | $574 | ||||||
Securities sold under agreements to repurchase | 4,421 | 3,702 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 7,004 | 6,253 | ||||||
Total short-term borrowed funds | $11,425 | $10,529 | ||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||
(dollars in millions) | As of and for the Three Months Ended March 31, 2015 | As of and for the Year Ended December 31, 2014 | ||||||
Weighted-average interest rate at period-end: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.22 | % | 0.14 | % | ||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 0.26 | 0.26 | ||||||
Maximum amount outstanding at month-end during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,375 | $7,022 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 7,004 | 7,702 | ||||||
Average amount outstanding during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $4,607 | $5,699 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 6,969 | 5,640 | ||||||
Weighted-average interest rate during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.18 | % | 0.12 | % | ||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 0.26 | 0.25 | ||||||
The following is a summary of the Company’s long-term borrowed funds: | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
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 | 333 | ||||||
4.023% fixed rate subordinated debt, due 2024 (1) | 333 | 333 | ||||||
4.082% fixed rate subordinated debt, due 2025 (1) | 334 | 334 | ||||||
Banking Subsidiaries: | ||||||||
1.600% senior unsecured notes, due 2017 (2) | 750 | 750 | ||||||
2.450% senior unsecured notes, due 2019 (2) (3) | 755 | 746 | ||||||
Federal Home Loan advances due through 2033 | 20 | 772 | ||||||
Other | 29 | 24 | ||||||
Total long-term borrowed funds | $3,904 | $4,642 | ||||||
(1) Intercompany borrowed funds with RBS. See Note 14 “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 $5 million hedge of interest rate risk on medium term debt using interest rate swaps. See Note 12 “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 at March 31, 2015 and December 31, 2014. The Company’s available FHLB borrowing capacity was $3.9 billion and $3.5 billion at March 31, 2015 and December 31, 2014, 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 March 31, 2015, the Company’s unused secured borrowing capacity was approximately $25.9 billion, which includes unencumbered 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 March 31, 2015: | ||||||||
Year | (in millions) | |||||||
2015 or on demand | $— | |||||||
2016 | 3 | |||||||
2017 | 761 | |||||||
2018 | 10 | |||||||
2019 | 756 | |||||||
2020 and thereafter | 2,374 | |||||||
Total | $3,904 | |||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS EQUITY | STOCKHOLDERS’ EQUITY |
Preferred Stock | |
As of March 31, 2015, the Company had 100,000,000 authorized shares of $25.00 par value undesignated preferred stock. 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. | |
There were no shares of preferred stock issued and outstanding as of March 31, 2015 or December 31, 2014; however, on April 6, 2015, the Company issued $250 million, or 250,000 shares, 5.500% fixed-to-floating rate non-cumulative perpetual Series A Preferred Stock, par value of $25.00 per share with a liquidation preference $1,000 per share (the “Preferred Stock”) to the initial purchasers in reliance on the exemption from registration provided by Section (4)(a)(2) of the Securities Act of 1933, as amended, for resale pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Preferred Stock accrues dividends, on a non-cumulative, semi-annual basis, beginning on April 6, 2015, at an annual rate equal to 5.500% to, but excluding, April 6, 2020, after which time it converts to a quarterly floating-rate basis equal to three-month LIBOR plus 3.960%. Citizens may redeem the Preferred Stock, subject to regulatory approval, on or after April 6, 2020 or at any time within 90 days of a regulatory capital treatment event. See Note 23 “Subsequent Events” for further information. | |
Treasury Stock | |
During the three months ended March 31, 2015, the Company recorded 804,507 shares of treasury stock. These shares were withheld from share-based compensation plan activity to satisfy employee tax withholding obligations, for a total cost of $21 million at a weighted-average price per share of $25.38. | |
On April 7, 2015, the Company used the net proceeds of the Preferred Stock offering described above to repurchase 10,473,397 shares of its common stock from RBS at a total cost of approximately $250 million and a price per share of $23.87, which further reduced RBS’ remaining ownership interest to 40.8%. The repurchased shares are held in treasury. Pursuant to the repurchase agreement dated April 1, 2015, the purchase price per share was the volume-weighted average price of the Company’s common stock for all traded volume over the five trading days preceding the repurchase agreement date. See Note 23 “Subsequent Events” for further information. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
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 restructured the administration of employee benefit plans during 2008. As a result, the qualified and non-qualified pension plans of certain RBS 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. | |||||||||||||||||||||||||
On February 20, 2015, CFG made a contribution of $100 million to the qualified plan. | |||||||||||||||||||||||||
The following table presents the components of net periodic (income) cost for the Company’s qualified and non-qualified plans: | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | |||||||||||||||||||||||
(in millions) | 2015 | 2014 | (1) | 2015 | 2014 | (1) | 2015 | 2014 | (1) | ||||||||||||||||
Service cost | $1 | $1 | $— | $— | $1 | $1 | |||||||||||||||||||
Interest cost | 11 | 11 | 1 | 1 | 12 | 12 | |||||||||||||||||||
Expected return on plan assets | (18 | ) | (17 | ) | — | — | (18 | ) | (17 | ) | |||||||||||||||
Amortization of actuarial loss | 3 | 2 | 1 | — | 4 | 2 | |||||||||||||||||||
Net periodic pension (income) cost | ($3 | ) | ($3 | ) | $2 | $1 | ($1 | ) | ($2 | ) | |||||||||||||||
(1) Results for the three months ended March 31, 2014 included $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. | |||||||||||||||||||||||||
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, in September 2014, 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. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
Income Tax Provision | |
The provision for income taxes was $106 million and $69 million for the three months ended March 31, 2015 and 2014, respectively. This resulted in an effective tax rate of 33.7% and 29.4% for the three months ended March 31, 2015 and 2014, respectively. For the three months ended March 31, 2015 and 2014, the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of the permanent benefits of tax credits and tax-exempt income. | |
The effective income tax rate for the three months ended March 31, 2015 reflected the adoption of ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” The application of this guidance resulted in the reclassification of the amortization of these investments to income tax expense. See Note 5 “Variable Interest Entities,” for further information. | |
Deferred Tax Liability | |
At March 31, 2015, the Company reported a net deferred tax liability of $586 million, compared to a $493 million liability as of December 31, 2014. The increase in the net deferred tax liability is primarily attributable to a decrease in the unrealized loss reported on securities AFS, derivative instruments, and hedging activities. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
DERIVATIVES | DERIVATIVES | |||||||||||||||||||
In the normal course of business, the Company enters into a variety of derivative transactions in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company does not use derivatives for speculative purposes. | ||||||||||||||||||||
The Company’s derivative instruments are recognized on the Consolidated Balance Sheets at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 15 “Fair Value Measurements.” | ||||||||||||||||||||
The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(in millions) | Notional Amount (1) | Derivative Assets | Derivative Liabilities | Notional Amount (1) | Derivative Assets | Derivative Liabilities | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | $7,500 | $89 | $55 | $5,750 | $24 | $99 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 32,632 | 655 | 569 | 31,848 | 589 | 501 | ||||||||||||||
Foreign exchange contracts | 8,046 | 253 | 247 | 8,359 | 170 | 164 | ||||||||||||||
Other contracts | 1,144 | 9 | 9 | 730 | 7 | 9 | ||||||||||||||
Total derivatives not designated as hedging instruments | 917 | 825 | 766 | 674 | ||||||||||||||||
Gross derivative fair values | 1,006 | 880 | 790 | 773 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets (2) | (264 | ) | (264 | ) | (161 | ) | (161 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets (3) | $742 | $616 | $629 | $612 | ||||||||||||||||
(1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. | ||||||||||||||||||||
(2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||||||||||||||||||||
(3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities” 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 Three Months Ended March 31, 2015 | ||||||||||||||||||||
(in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | |||||||||||||||||
Hedges of interest rate risk on borrowing using interest rate swaps | $9 | ($9 | ) | $— | ||||||||||||||||
There was no impact on net income for the three months ended March 31, 2014. | ||||||||||||||||||||
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 $16 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 Three Months Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Effective portion of gain (loss) recognized in OCI (1) | $104 | ($92 | ) | |||||||||||||||||
Amounts reclassified from OCI to interest income (2) | 18 | 18 | ||||||||||||||||||
Amounts reclassified from OCI to interest expense (2) | (15 | ) | (29 | ) | ||||||||||||||||
Ineffective portion of gain recognized in other income (3) | 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 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 | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts (1) | $73 | $61 | ||||||||||||||||||
Customer foreign exchange contracts (1) | (35 | ) | 4 | |||||||||||||||||
Residential loan commitments (3) | — | 3 | ||||||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) | (68 | ) | (53 | ) | ||||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) | 35 | (6 | ) | |||||||||||||||||
Forward sale contracts (3) | (1 | ) | (1 | ) | ||||||||||||||||
Total | $4 | $8 | ||||||||||||||||||
(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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||||||
The following is a summary of outstanding off-balance sheet arrangements: | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,224 | $55,899 | ||||||
Financial standby letters of credit | 2,292 | 2,315 | ||||||
Performance letters of credit | 60 | 65 | ||||||
Commercial letters of credit | 58 | 75 | ||||||
Marketing rights | 51 | 51 | ||||||
Risk participation agreements | 26 | 19 | ||||||
Residential mortgage loans sold with recourse | 10 | 11 | ||||||
Total | $57,721 | $58,435 | ||||||
Commitments to Extend Credit | ||||||||
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. | ||||||||
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 was $3 million at March 31, 2015 and December 31, 2014, respectively. | ||||||||
Marketing Rights | ||||||||
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 made no payments for the three months ended March 31, 2015 and 2014, respectively, and is obligated to pay $51 million over the remainder of the contract. | ||||||||
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 March 31, 2015 and December 31, 2014 is $26 million and $19 million, respectively. The current amount of credit exposure is spread out over 75 counterparties. RPAs generally have terms ranging from 1-5 years; however, certain outstanding agreements have terms as long as 10 years. | ||||||||
Other Commitments | ||||||||
For traded but not settled positions, these positions are marked to market in our financial statements on trade date, because the impact to CFG’s exposure is effective on trade (execution) date regardless of settlement date. | ||||||||
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 $55 million and $40 million at March 31, 2015 and December 31, 2014, respectively. Settled loans purchased by the trading desk are classified as commercial loans held for sale on the Consolidated Balance Sheets. Refer to Note 15 “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. | ||||||||
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 no outstanding option contracts with a notional value at March 31, 2015 and December 31, 2014, respectively. | ||||||||
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 unaudited interim Consolidated Financial Statements. | ||||||||
Consumer Products Matters | ||||||||
The activities of the Company’s bank subsidiaries are subject to extensive laws and regulations concerning unfair or deceptive acts or practices in connection with customer products. Certain of the bank subsidiaries’ practices with respect to overdraft protection and other consumer products have not met applicable standards. The bank subsidiaries have implemented and are continuing to implement changes to improve and bring their practices in accordance with regulatory guidance. | ||||||||
In April 2013, the bank subsidiaries consented to the issuance of orders by the OCC and the FDIC (the Consent Orders). In the Consent Orders (which are publicly available and will remain in effect until terminated by the regulators), the bank subsidiaries neither admitted nor denied the regulators’ findings that they had engaged in deceptive marketing and implementation of the bank’s overdraft protection program, checking rewards programs, and stop-payment process for pre-authorized recurring electronic fund transfers. Under the Consent Orders, the bank subsidiaries paid a total of $10 million in civil monetary penalties and $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 RBS 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 March 31, 2015, the Company received approximately $161 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, $92 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 $4 million and $10 million for the three months ended March 31, 2015 and 2014, respectively. The Company incurred indemnification costs of none and $6 million for the three months ended March 31, 2015 and 2014, 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 or decrease. 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. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Related Party Transactions [Abstract] | |||||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS | ||||||||||
The Company is an indirect subsidiary of RBS. In September 2014, the Company entered into certain agreements that will provide a framework for its ongoing relationship with RBS. Specifically, the Company entered into the following agreements with RBS: 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 borrowed funds from RBS: | |||||||||||
(dollars in millions) | Interest Rate | Maturity Date | 31-Mar-15 | 31-Dec-14 | |||||||
Subordinated debt | 4.08% | Jan-25 | $334 | $334 | |||||||
4.02% | Oct-24 | 333 | 333 | ||||||||
4.15% | Jul-24 | 333 | 333 | ||||||||
4.69% | Jan-24 | 334 | 334 | ||||||||
4.77% | Oct-23 | 333 | 333 | ||||||||
5.16% | Jun-23 | 333 | 333 | ||||||||
Total interest expense recorded on inter-company subordinated debt was $20 million and $12 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||
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 March 31, 2015, the total notional amount of swaps outstanding was $7.5 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 $2.8 billion of pay-fixed swaps with fixed rates ranging from 2.03% to 4.30% maturing in 2023. The company also has a medium term swap agreement with a notional of $750 million and a receive-fixed rate of 1.66% as of March 31, 2015. 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 fixed 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 amount of $750 million and a receive-fixed rate of 1.66% that had been executed as of December 31, 2014. The Company recorded net interest income of $3 million for the three months ended March 31, 2015 and net interest expense of $11 million for the three months ended March 31, 2014. | |||||||||||
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 $9.3 billion and $9.8 billion at March 31, 2015 and December 31, 2014, respectively. The Company recorded expense of $68 million and $53 million within other income for the three months ended March 31, 2015 and 2014, 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 $4.5 billion and $4.7 billion at March 31, 2015 and December 31, 2014, respectively. Within foreign exchange and trade finance fees the Company recorded income of $35 million for the three months ended March 31, 2015 and expense of $6 million for the three months ended March 31, 2014. | |||||||||||
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 $3 million and $5 million for the three months ended March 31, 2015 and 2014, 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 $2 million and $8 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||
The Company paid $39 million and $25 million in regular common stock dividends to RBS for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||
The Company, as a matter of policy and during the ordinary course of business with underwriting terms similar to those offered to the public, has made loans to directors and executive officers and their immediate families, as well as their affiliated companies. Such loans amounted to $125 million and $126 million at March 31, 2015 and December 31, 2014, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||
As discussed in Note 1 “Significant Accounting Policies,” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2014, 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: | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
(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 | $265 | $258 | $7 | $213 | $206 | $7 | ||||||||||||||||||||||
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 $1 million for the three months ended March 31, 2015 and 2014. 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: | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||
Commercial and commercial real estate loans held for sale, at fair value | $57 | $57 | $— | $43 | $43 | $— | ||||||||||||||||||||||
There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of March 31, 2015. 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 13 “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 three months ended March 31, 2015 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 Available for Sale | ||||||||||||||||||||||||||||
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 March 31, 2015: | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,996 | $— | $18,996 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 20 | 2 | 18 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 19,041 | 17 | 19,024 | — | ||||||||||||||||||||||||
Residential loans held for sale | 265 | — | 265 | — | ||||||||||||||||||||||||
Commercial loans held for sale | 57 | — | 57 | — | ||||||||||||||||||||||||
Total loans held for sale | 322 | — | 322 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 744 | — | 744 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 253 | — | 253 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative assets | 1,006 | — | 1,006 | — | ||||||||||||||||||||||||
Venture capital investments and other investments | 6 | — | 5 | 1 | ||||||||||||||||||||||||
Total assets | $20,375 | $17 | $20,357 | $1 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $624 | $— | $624 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 247 | — | 247 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative liabilities | 880 | — | 880 | — | ||||||||||||||||||||||||
Total liabilities | $880 | $— | $880 | $— | ||||||||||||||||||||||||
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 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 changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||||||
Balance as of January 1 | $5 | $5 | ||||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | 1 | — | ||||||||||||||||||||||||||
Sales | — | — | ||||||||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||||||
Other net gains | — | 1 | ||||||||||||||||||||||||||
Transfers from Level 3 to Level 2 | (5 | ) | — | |||||||||||||||||||||||||
Balance as of period end | $1 | $6 | ||||||||||||||||||||||||||
Net unrealized gain included in net income for the year relating to assets held at period end | $1 | $— | ||||||||||||||||||||||||||
In March 2015, we transferred $5 million of securities from Level 3 to Level 2. The fair values of these securities are based on prices in the market that are not active. | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||||||||||
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 March 31, 2015, the fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life of 5.0 years (range of 2.8 - 6.3 years), weighted-average constant prepayment rate of 12.8% (range of 11.0% - 22.2%) and weighted-average discount rate of 9.8% (range of 9.1% - 12.3%). 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%). Refer to Note 1 “Significant Accounting Policies” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2014 and Note 7 “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” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2014 and Note 6 “Goodwill” for a description of the Company's goodwill valuation methodology. | ||||||||||||||||||||||||||||
The following table presents losses on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||||||
Impaired collateral-dependent loans | ($3 | ) | ($75 | ) | ||||||||||||||||||||||||
MSRs | (1 | ) | (4 | ) | ||||||||||||||||||||||||
Foreclosed assets | (1 | ) | (1 | ) | ||||||||||||||||||||||||
The following tables present assets and liabilities measured at fair value on a nonrecurring basis: | ||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $87 | $— | $87 | $— | ||||||||||||||||||||||||
MSRs | 163 | — | — | 163 | ||||||||||||||||||||||||
Foreclosed assets | 36 | — | 36 | — | ||||||||||||||||||||||||
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 | — | ||||||||||||||||||||||||
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 Held to Maturity | ||||||||||||||||||||||||||||
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 unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | ||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
Securities held to maturity | $5,178 | $5,281 | $— | $— | $5,178 | $5,281 | $— | $— | ||||||||||||||||||||
Other investment securities | 867 | 867 | — | — | 867 | 867 | — | — | ||||||||||||||||||||
Other loans held for sale | 54 | 54 | — | — | — | — | 54 | 54 | ||||||||||||||||||||
Loans and leases | 94,494 | 94,892 | — | — | 87 | 87 | 94,407 | 94,805 | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 98,990 | 99,005 | — | — | 98,990 | 99,005 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,421 | — | — | 4,421 | 4,421 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 7,004 | 7,004 | — | — | 7,004 | 7,004 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 3,904 | 4,006 | — | — | 3,904 | 4,006 | — | — | ||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
Securities held to maturity | $5,148 | $5,193 | $— | $— | $5,148 | $5,193 | $— | $— | ||||||||||||||||||||
Other investment securities | 872 | 872 | — | — | 872 | 872 | — | — | ||||||||||||||||||||
Other loans held for sale | 25 | 25 | — | — | — | — | 25 | 25 | ||||||||||||||||||||
Loans and leases | 93,410 | 93,674 | — | — | 102 | 102 | 93,308 | 93,572 | ||||||||||||||||||||
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 | — | — | ||||||||||||||||||||
REGULATORY_MATTERS
REGULATORY MATTERS | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
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 that took effect on January 1, 2015, the Company and its banking subsidiaries must meet specific capital requirements. Basel III requirements are expressed in terms of the following ratios: (1) common equity tier 1 capital (common equity tier 1 capital/risk-weighted on- and off-balance sheet assets); (2) tier 1 capital (tier 1 capital/risk-weighted on- and off-balance sheet assets); (3) total capital (total capital/risk-weighted on- and off-balance sheet assets); and (4) 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 regulatory levels for each ratio. 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 evidencing the Company’s transition from Basel I regulatory accounting as of December 31, 2014 to Basel III regulatory accounting as of March 31, 2015. Basel I requirements did not include the common equity tier I capital ratio. Certain Basel III requirements are subject to phase-in through 2018, and these phase-in rules are used in this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means that the Company will not be required to change its methodology for recognizing in regulatory capital only a subset of unrealized gains and losses that are classified as AOCI. As an AOCI opt-out institution the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses on securities AFS, accumulated net gains and losses on cash-flow hedges included in AOCI, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities HTM that are included in AOCI. | |||||||||||||||||||
Transitional Basel III | |||||||||||||||||||
FDIC Requirements | |||||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well-capitalized | |||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
As of March 31, 2015 | Basel III | ||||||||||||||||||
Common equity tier 1 capital | $13,360 | 12.2 | % | $4,940 | 4.5 | % | $7,136 | 6.5 | % | ||||||||||
Tier 1 capital to risk-weighted assets | 13,360 | 12.2 | 6,587 | 6 | 8,783 | 8 | |||||||||||||
Total capital to risk-weighted assets | 16,969 | 15.5 | 8,783 | 8 | 10,979 | 10 | |||||||||||||
Tier 1 capital to average assets (leverage) | 13,360 | 10.5 | 5,087 | 4 | 6,358 | 5 | |||||||||||||
As of December 31, 2014 | Basel I | ||||||||||||||||||
Tier 1 common equity | $13,173 | 12.4 | % | Not Applicable | Not Applicable | Not Applicable | Not Applicable | ||||||||||||
Tier 1 capital to risk-weighted assets | 13,173 | 12.4 | $4,239 | 4 | % | $6,358 | 6 | % | |||||||||||
Total capital to risk-weighted assets | 16,781 | 15.8 | 8,477 | 8 | 10,596 | 10 | |||||||||||||
Tier 1 capital to average assets (leverage) | 13,173 | 10.6 | 4,982 | 4 | 6,227 | 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 total common stock dividends of $55 million and $25 million as of March 31, 2015, and March 31, 2014, 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. However, as of March 31, 2015, irrespective of the ability of the subsidiary banks to pay dividends, on a non-consolidated basis the Company had liquid assets in excess of $396 million compared to an annual interest burden on existing subordinated debt of approximately $104 million. | |||||||||||||||||||
On March 13, 2014, the OCC determined that CBNA no longer meets the condition to own a financial subsidiary — namely that CBNA must be both well capitalized and well managed. 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 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 | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
EXIT COSTS AND RESTRUCTURING RESERVES | EXIT COSTS AND RESTRUCTURING RESERVES | ||||||||||||
For the three months ended March 31, 2015, the Company incurred $1 million of restructuring costs, consisting of $2 million of facilities costs in occupancy, $1 million in outside services, and a reversal of $2 million in salaries and employee benefits. | |||||||||||||
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 additional restructuring costs of approximately $18 million through December 31, 2015, consisting of $13 million of employee compensation, $3 million of facilities costs and $2 million of other costs, primarily consulting and technology services. For the year ended December 31, 2014, the Company incurred $101 million of restructuring costs, $41 million consisting 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. | |||||||||||||
Also in 2014, as a result of the sale of retail branches located in Illinois, 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. | |||||||||||||
For segment reporting, all of these restructuring costs are reported within Other. See Note 19 “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, 2014 | $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 | |||||||||
Additions | — | 2 | 1 | 3 | |||||||||
Reversals | (2 | ) | — | — | (2 | ) | |||||||
Utilization | (3 | ) | (3 | ) | (4 | ) | (10 | ) | |||||
Reserve balance as of March 31, 2015 | $18 | $17 | $— | $35 | |||||||||
RECLASSIFICATIONS_OUT_OF_ACCUM
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, 2014 | ($298 | ) | ($91 | ) | ($259 | ) | ($648 | ) | ||||||||||
Other comprehensive income before reclassifications | 59 | 71 | — | 130 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (19 | ) | — | (19 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 7 | (14 | ) | 1 | (6 | ) | ||||||||||||
Net other comprehensive income | 66 | 38 | 1 | 105 | ||||||||||||||
Balance at March 31, 2014 | ($232 | ) | ($53 | ) | ($258 | ) | ($543 | ) | ||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | ||||||||||||||
Balance at January 1, 2015 | ($69 | ) | $74 | ($377 | ) | ($372 | ) | |||||||||||
Other comprehensive income before reclassifications | 65 | 90 | — | 155 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (19 | ) | — | (19 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | (2 | ) | (4 | ) | 2 | (4 | ) | |||||||||||
Net other comprehensive income | 63 | 67 | 2 | 132 | ||||||||||||||
Balance at March 31, 2015 | ($6 | ) | $141 | ($375 | ) | ($240 | ) | |||||||||||
The following table reports the amounts reclassified out of each component of AOCI and into the unaudited interim Consolidated Statements of Operations: | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||
Details about AOCI Components | Affected Line Item in the unaudited interim Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $18 | $18 | Interest income | |||||||||||||||
(15 | ) | (29 | ) | Interest expense | ||||||||||||||
— | — | Other income | ||||||||||||||||
3 | (11 | ) | Income (loss) before income tax expense (benefit) | |||||||||||||||
1 | (4 | ) | Income tax expense (benefit) | |||||||||||||||
$2 | ($7 | ) | Net income (loss) | |||||||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $8 | $25 | Securities gains, net | |||||||||||||||
(1 | ) | (4 | ) | Net impairment losses recognized in earnings | ||||||||||||||
7 | 21 | Income (loss) before income tax expense (benefit) | ||||||||||||||||
3 | 7 | Income tax expense (benefit) | ||||||||||||||||
$4 | $14 | Net income (loss) | ||||||||||||||||
Reclassification of changes related to defined benefit pension plans: | ($3 | ) | ($2 | ) | Salaries and employee benefits | |||||||||||||
(3 | ) | (2 | ) | Income (loss) before income tax expense (benefit) | ||||||||||||||
(1 | ) | (1 | ) | Income tax expense (benefit) | ||||||||||||||
($2 | ) | ($1 | ) | Net income (loss) | ||||||||||||||
Total reclassification gains (losses) | $4 | $6 | Net income (loss) | |||||||||||||||
The following table presents the effects to net income of the amounts reclassified out of AOCI: | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||
Net interest income (includes $3 and ($11) of AOCI reclassifications, respectively) | $836 | $808 | ||||||||||||||||
Provision for credit losses | 58 | 121 | ||||||||||||||||
Noninterest income (includes $7 and $21 of AOCI reclassifications, respectively) | 347 | 358 | ||||||||||||||||
Noninterest expense (includes $3 and $2 of AOCI reclassifications, respectively) | 810 | 810 | ||||||||||||||||
Income before income tax expense | 315 | 235 | ||||||||||||||||
Income tax expense (includes $3 and $2 income tax net expense from reclassification items, respectively) | 106 | 69 | ||||||||||||||||
Net income | $209 | $166 | ||||||||||||||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, commercial cards, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities. It focuses on middle-market companies, large corporations and institutions and has dedicated teams with industry expertise in government banking, not-for-profit, healthcare, technology, professionals, oil & gas, 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). A key component of Commercial Banking’s growth strategy is to bring ideas to clients that help their businesses thrive, and in doing so, expand the loan portfolio and ancillary product sales. | ||||||||||||||||
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 any | ||||||||||||||||
associated goodwill impairment charges. | ||||||||||||||||
As of and for the Three Months Ended March 31, 2015 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $533 | $276 | $27 | $836 | ||||||||||||
Noninterest income | 219 | 100 | 28 | 347 | ||||||||||||
Total revenue | 752 | 376 | 55 | 1,183 | ||||||||||||
Noninterest expense | 596 | 173 | 41 | 810 | ||||||||||||
Profit before provision for credit losses | 156 | 203 | 14 | 373 | ||||||||||||
Provision for credit losses | 63 | (21 | ) | 16 | 58 | |||||||||||
Income (loss) before income tax expense (benefit) | 93 | 224 | (2 | ) | 315 | |||||||||||
Income tax expense (benefit) | 32 | 77 | (3 | ) | 106 | |||||||||||
Net income | $61 | $147 | $1 | $209 | ||||||||||||
Total average assets | $51,602 | $41,606 | $40,117 | $133,325 | ||||||||||||
As of and for the Three Months Ended March 31, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $537 | $256 | $15 | $808 | ||||||||||||
Noninterest income | 219 | 107 | 32 | 358 | ||||||||||||
Total revenue | 756 | 363 | 47 | 1,166 | ||||||||||||
Noninterest expense | 638 | 153 | 19 | 810 | ||||||||||||
Profit before provision for credit losses | 118 | 210 | 28 | 356 | ||||||||||||
Provision for credit losses | 70 | (5 | ) | 56 | 121 | |||||||||||
Income (loss) before income tax expense (benefit) | 48 | 215 | (28 | ) | 235 | |||||||||||
Income tax expense (benefit) | 16 | 74 | (21 | ) | 69 | |||||||||||
Net income (loss) | $32 | $141 | ($7 | ) | $166 | |||||||||||
Total average assets | $47,610 | $36,955 | $39,339 | $123,904 | ||||||||||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION |
During the three months ended March 31, 2015, the Company granted 970,166 Company share-based awards to employees pursuant to the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan (“Omnibus Plan”) with an aggregate grant date fair value of $24 million, which has been estimated using the fair value of the Company’s shares on the grant date. | |
The total number of Company unvested share-based awards as March 31, 2015 was 3,399,285, which includes awards granted under 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”), the Omnibus Plan, and the Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan (“Directors Plan”). Approximately 61 million shares of Company common stock are available for awards to be granted under our employee share plans (including the Citizens Financial Group, Inc. 2014 Employee Stock Purchase Plan (the “ESPP”)). Upon settlement of share-based awards, the Company generally issues new shares, but may also issue shares from treasury stock. | |
Compensation Expense | |
Compensation expense related to the employee share plans (including the ESPP) was $6 million and $19 million for the three months ended March 31, 2015 and 2014, respectively. At March 31, 2015, the total unrecognized compensation expense for nonvested equity awards granted was $30 million. | |
Equity Grants Prior to the IPO | |
Prior to the Company’s IPO, RBS granted share-based compensation awards to employees of the Company pursuant to its various long-term incentive plans, which are administered by the RBS 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 RBS shares. Effective as of the IPO, no share-based compensation awards in respect of RBS 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. | |
The fair value of each award is determined on the grant date. All awards 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 granted special IPO awards to certain Citizens employees. These awards were granted half in the form of restricted stock units in respect of RBS 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 and other original terms and conditions. | |
Equity Award Conversion | |
In conjunction with the Company's IPO, any restricted stock units granted by RBS 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 applicable Converted Equity Plan 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 RBS shares underlying the awards outstanding as of the closing of the IPO and (y) the average of the closing prices of RBS 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 RBS share awards to 5,249,721 CFG share awards. The difference between the fair value of RBS 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 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. Pursuant to the Omnibus Plan, the Company has also awarded to certain employees immediately vested shares, time-based restricted stock units and performance share units. If a dividend is paid on shares underlying the Omnibus Plan awards 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 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 vested on May 5, 2015, 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 ESPP, 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 the limit for the first 2014 offering period was 50% of eligible compensation. 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 for a participant on the last day of each quarter at a 10% discount from the fair market value (fair market value under the plan is defined as the closing price on the day of purchase). Prior to the date the shares are purchased, participants do not have any rights or privileges as a stockholder with respect to shares to be purchased at the end of the offering period. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||||
Three Months Ended March 31, | |||||||||
(dollars in millions, except share and per-share data) | 2015 | 2014 | |||||||
Numerator (basic and diluted): | |||||||||
Net income | $209 | $166 | |||||||
Less: Preferred stock dividends | — | — | |||||||
Net income available to common stockholders | $209 | $166 | |||||||
Denominator: | |||||||||
Weighted-average common shares outstanding - basic | 546,291,363 | 559,998,324 | |||||||
Dilutive common shares: share-based awards | 3,507,354 | — | |||||||
Weighted-average common shares outstanding - diluted | 549,798,717 | 559,998,324 | |||||||
Earnings per common share: | |||||||||
Basic | $0.38 | $0.30 | |||||||
Diluted | 0.38 | 0.3 | |||||||
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. |
OTHER_OPERATING_EXPENSE
OTHER OPERATING EXPENSE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
OTHER OPERATING EXPENSE | OTHER OPERATING EXPENSE | |||||||
The following table presents the details of other operating expense: | ||||||||
Three months ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Deposit insurance | $34 | $20 | ||||||
Promotional expense | 22 | 20 | ||||||
Settlements and operating losses | 8 | 29 | ||||||
Postage and delivery | 12 | 13 | ||||||
Other | 57 | 64 | ||||||
Other operating expense | $133 | $146 | ||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
On April 6, 2015, the Company issued $250 million, or 250,000 shares, 5.500% fixed-to-floating rate non-cumulative perpetual Series A Preferred Stock, par value of $25.00 per share with a liquidation preference $1,000 per share (the “Preferred Stock”) to the initial purchasers in reliance on the exemption from registration provided by Section (4)(a)(2) of the Securities Act of 1933, as amended, for resale pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Preferred Stock accrues dividends, on a non-cumulative, semi-annual basis, beginning on April 6, 2015, at an annual rate equal to 5.500% to, but excluding, April 6, 2020, after which time it converts to a quarterly floating-rate basis equal to three-month LIBOR plus 3.960%. Citizens may redeem the Preferred Stock, subject to regulatory approval, on or after April 6, 2020 or at any time within 90 days of a regulatory capital treatment event. | |
On April 7, 2015, the Company used the net proceeds of the Preferred Stock offering to repurchase 10,473,397 shares of its common stock from RBS at a total cost of approximately $250 million and a price per share of $23.87, which further reduced RBS’ remaining ownership interest to 40.8%. Pursuant to the repurchase agreement dated April 1, 2015, the purchase price per share was the volume-weighted average price of the Company’s common stock for all traded volume over the five trading days preceding the repurchase agreement date. | |
On April 22, 2015, the Company announced a quarterly cash dividend of $0.10 per share, or $55 million, payable on May 19, 2015 to shareholders of record at the close of business on May 5, 2015. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the FASB issued ASU No. 2015-02 “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This standard focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (e.g., collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). This new standard simplifies consolidation accounting by reducing the number of consolidation models. The ASU will be effective for the Company beginning on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The potential impact the adoption of this guidance will have to the Company’s unaudited interim Consolidated Financial Statements in under review. | |
In January 2015, the FASB issued ASU No. 2015-01 “Income Statement: Extraordinary and Unusual Items.” This ASU eliminates from GAAP the concept of extraordinary items. Accounting Standards Codification Subtopic 225-20 required that an entity separately classify, present, and disclose extraordinary events and transactions that were unusual in nature and infrequent in occurrence. This ASU is effective for the Company, beginning on January 1, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. |
SECURITIES_Tables
SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(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 | 10 | — | — | 10 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | 17,999 | 382 | (25 | ) | 18,356 | 17,683 | 301 | (50 | ) | 17,934 | |||||||||||||||||
Other/non-agency | 667 | 4 | (31 | ) | 640 | 703 | 4 | (35 | ) | 672 | |||||||||||||||||
Total mortgage-backed securities | 18,666 | 386 | (56 | ) | 18,996 | 18,386 | 305 | (85 | ) | 18,606 | |||||||||||||||||
Total debt securities available for sale | 18,691 | 386 | (56 | ) | 19,021 | 18,411 | 305 | (85 | ) | 18,631 | |||||||||||||||||
Marketable equity securities | 7 | 1 | — | 8 | 10 | 3 | — | 13 | |||||||||||||||||||
Other equity securities | 12 | — | — | 12 | 12 | — | — | 12 | |||||||||||||||||||
Total equity securities available for sale | 19 | 1 | — | 20 | 22 | 3 | — | 25 | |||||||||||||||||||
Total securities available for sale | $18,710 | $387 | ($56 | ) | $19,041 | $18,433 | $308 | ($85 | ) | $18,656 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | $3,799 | $52 | ($4 | ) | $3,847 | $3,728 | $22 | ($31 | ) | $3,719 | |||||||||||||||||
Other/non-agency | 1,379 | 55 | — | 1,434 | 1,420 | 54 | — | 1,474 | |||||||||||||||||||
Total securities held to maturity | $5,178 | $107 | ($4 | ) | $5,281 | $5,148 | $76 | ($31 | ) | $5,193 | |||||||||||||||||
Other Investment Securities | |||||||||||||||||||||||||||
Federal Reserve Bank stock | $468 | $— | $— | $468 | $477 | $— | $— | $477 | |||||||||||||||||||
Federal Home Loan Bank stock | 393 | — | — | 393 | 390 | — | — | 390 | |||||||||||||||||||
Venture capital and other investments | 6 | — | — | 6 | 5 | — | — | 5 | |||||||||||||||||||
Total other investment securities | $867 | $— | $— | $867 | $872 | $— | $— | $872 | |||||||||||||||||||
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: | ||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||
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 | 14 | 561 | (2 | ) | 40 | 1,292 | (27 | ) | 54 | 1,853 | (29 | ) | |||||||||||||||
Other/non-agency | 6 | 75 | (2 | ) | 17 | 385 | (29 | ) | 23 | 460 | (31 | ) | |||||||||||||||
Total mortgage-backed securities | 20 | 636 | (4 | ) | 57 | 1,677 | (56 | ) | 77 | 2,313 | (60 | ) | |||||||||||||||
Total | 21 | $646 | ($4 | ) | 57 | $1,677 | ($56 | ) | 78 | $2,323 | ($60 | ) | |||||||||||||||
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 | ) | |||||||||||||||
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: | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Cumulative balance at beginning of period | $62 | $56 | |||||||||||||||||||||||||
Credit impairments recognized in earnings on securities that have been previously impaired | 1 | 4 | |||||||||||||||||||||||||
Reductions due to increases in cash flow expectations on impaired securities | (1 | ) | (1 | ) | |||||||||||||||||||||||
Cumulative balance at end of period | $62 | $59 | |||||||||||||||||||||||||
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities at March 31, 2015 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 | 2,196 | 15,748 | 17,999 | ||||||||||||||||||||||
Other/non-agency | — | 54 | 44 | 569 | 667 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 107 | 2,240 | 16,327 | 18,691 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,799 | 3,799 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,379 | 1,379 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,178 | 5,178 | ||||||||||||||||||||||
Total amortized cost of debt securities | $17 | $107 | $2,240 | $21,505 | $23,869 | ||||||||||||||||||||||
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 | 2,226 | 16,072 | 18,356 | ||||||||||||||||||||||
Other/non-agency | — | 54 | 45 | 541 | 640 | ||||||||||||||||||||||
Total debt securities available for sale | 17 | 110 | 2,271 | 16,623 | 19,021 | ||||||||||||||||||||||
Debt securities held to maturity | |||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Federal agencies and U.S. government sponsored entities | — | — | — | 3,847 | 3,847 | ||||||||||||||||||||||
Other/non-agency | — | — | — | 1,434 | 1,434 | ||||||||||||||||||||||
Total debt securities held to maturity | — | — | — | 5,281 | 5,281 | ||||||||||||||||||||||
Total fair value of debt securities | $17 | $110 | $2,271 | $21,904 | $24,302 | ||||||||||||||||||||||
Schedule of income recognized on investment securities | The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statement of Operations: | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Taxable | $159 | $149 | |||||||||||||||||||||||||
Non-taxable | — | — | |||||||||||||||||||||||||
Total interest income from investment securities | $159 | $149 | |||||||||||||||||||||||||
Realized gains and losses on AFS securities are shown below: | |||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Gains on sale of debt securities | $12 | $25 | |||||||||||||||||||||||||
Losses on sale of debt securities | (4 | ) | — | ||||||||||||||||||||||||
Debt securities gains, net | $8 | $25 | |||||||||||||||||||||||||
Equity securities gains | $2 | $— | |||||||||||||||||||||||||
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are shown below: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||
Pledged against repurchase agreements | $4,334 | $4,423 | $3,650 | $3,701 | |||||||||||||||||||||||
Pledged against FHLB borrowed funds | 1,315 | 1,367 | 1,355 | 1,407 | |||||||||||||||||||||||
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law | 3,657 | 3,745 | 3,453 | 3,520 | |||||||||||||||||||||||
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: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
(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 sold under agreements to repurchase | ($3,400 | ) | $— | ($3,400 | ) | ($2,600 | ) | $— | ($2,600 | ) | |||||||||||||||||
Securities under agreements to repurchase or resell | The following table presents the Company's related activity, by collateral type and remaining contractual maturity, at March 31, 2015: | ||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||
(in millions) | Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | ||||||||||||||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||||||||||
Mortgage-backed securities - Agency | $— | ($350 | ) | ($1,000 | ) | ($2,050 | ) | ($3,400 | ) | ||||||||||||||||||
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of loans and leases | A summary of the loans and leases portfolio follows: | |||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Commercial | $32,249 | $31,431 | ||||||
Commercial real estate | 7,863 | 7,809 | ||||||
Leases | 3,870 | 3,986 | ||||||
Total commercial | 43,982 | 43,226 | ||||||
Residential mortgages | 11,808 | 11,832 | ||||||
Home equity loans | 3,212 | 3,424 | ||||||
Home equity lines of credit | 15,127 | 15,423 | ||||||
Home equity loans serviced by others (1) | 1,192 | 1,228 | ||||||
Home equity lines of credit serviced by others (1) | 544 | 550 | ||||||
Automobile | 13,179 | 12,706 | ||||||
Student | 2,852 | 2,256 | ||||||
Credit cards | 1,588 | 1,693 | ||||||
Other retail | 1,010 | 1,072 | ||||||
Total retail | 50,512 | 50,184 | ||||||
Total loans and leases (2) (3) | $94,494 | $93,410 | ||||||
(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 $376 million as of March 31, 2015 and $281 million as of December 31, 2014. | ||||||||
(3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $18.0 billion and $17.9 billion at March 31, 2015 and December 31, 2014, respectively. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO1
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||
Schedule of changes in the allowance for credit losses | The following is a summary of changes in the allowance for credit losses: | |||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2015 | $544 | $651 | $1,195 | |||||||||||||||||
Charge-offs | (6 | ) | (109 | ) | (115 | ) | ||||||||||||||
Recoveries | 28 | 33 | 61 | |||||||||||||||||
Net recoveries (charge-offs) | 22 | (76 | ) | (54 | ) | |||||||||||||||
Sales/Other | — | (2 | ) | (2 | ) | |||||||||||||||
Provision charged to income | 12 | 51 | 63 | |||||||||||||||||
Allowance for loan and lease losses as of March 31, 2015 | 578 | 624 | 1,202 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2015 | 61 | — | 61 | |||||||||||||||||
Credit for unfunded lending commitments | (5 | ) | — | (5 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of March 31, 2015 | 56 | — | 56 | |||||||||||||||||
Total allowance for credit losses as of March 31, 2015 | $634 | $624 | $1,258 | |||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
(in millions) | Commercial | Retail | Total | |||||||||||||||||
Allowance for loan and lease losses as of January 1, 2014 | $498 | $723 | $1,221 | |||||||||||||||||
Charge-offs | (6 | ) | (122 | ) | (128 | ) | ||||||||||||||
Recoveries | 14 | 27 | 41 | |||||||||||||||||
Net recoveries (charge-offs) | 8 | (95 | ) | (87 | ) | |||||||||||||||
Provision charged to income | 21 | 104 | 125 | |||||||||||||||||
Allowance for loan and lease losses as of March 31, 2014 | 527 | 732 | 1,259 | |||||||||||||||||
Reserve for unfunded lending commitments as of January 1, 2014 | 39 | — | 39 | |||||||||||||||||
Credit for unfunded lending commitments | (4 | ) | — | (4 | ) | |||||||||||||||
Reserve for unfunded lending commitments as of March 31, 2014 | 35 | — | 35 | |||||||||||||||||
Total allowance for credit losses as of March 31, 2014 | $562 | $732 | $1,294 | |||||||||||||||||
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-Mar-15 | December 31, 2014 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $194 | $1,202 | $1,396 | $205 | $1,208 | $1,413 | ||||||||||||||
Formula-based evaluation | 43,788 | 49,310 | 93,098 | 43,021 | 48,976 | 91,997 | ||||||||||||||
Total | $43,982 | $50,512 | $94,494 | $43,226 | $50,184 | $93,410 | ||||||||||||||
Schedule of allowance for credit losses by evaluation method | The following is a summary of the allowance for credit losses by evaluation method: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(in millions) | Commercial | Retail | Total | Commercial | Retail | Total | ||||||||||||||
Individually evaluated | $35 | $107 | $142 | $20 | $109 | $129 | ||||||||||||||
Formula-based evaluation | 599 | 517 | 1,116 | 585 | 542 | 1,127 | ||||||||||||||
Allowance for credit losses | $634 | $624 | $1,258 | $605 | $651 | $1,256 | ||||||||||||||
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: | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Criticized | ||||||||||||||||||||
(in millions) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Commercial | $30,623 | $903 | $626 | $97 | $32,249 | |||||||||||||||
Commercial real estate | 7,547 | 198 | 52 | 66 | 7,863 | |||||||||||||||
Leases | 3,813 | 6 | 51 | — | 3,870 | |||||||||||||||
Total | $41,983 | $1,107 | $729 | $163 | $43,982 | |||||||||||||||
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 | |||||||||||||||
Schedule of retail loan investments categorized by delinquency status | The recorded investment in classes of retail loans, categorized by delinquency status is as follows: | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in millions) | Current | 1-29 Days Past Due | 30-89 Days Past Due | 90 Days or More Past Due | Total | |||||||||||||||
Residential mortgages | $11,373 | $80 | $97 | $258 | $11,808 | |||||||||||||||
Home equity loans | 2,817 | 193 | 57 | 145 | 3,212 | |||||||||||||||
Home equity lines of credit | 14,471 | 386 | 77 | 193 | 15,127 | |||||||||||||||
Home equity loans serviced by others (1) | 1,082 | 67 | 22 | 21 | 1,192 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 455 | 59 | 11 | 19 | 544 | |||||||||||||||
Automobile | 12,378 | 695 | 85 | 21 | 13,179 | |||||||||||||||
Student | 2,725 | 70 | 27 | 30 | 2,852 | |||||||||||||||
Credit cards | 1,517 | 37 | 18 | 16 | 1,588 | |||||||||||||||
Other retail | 929 | 61 | 15 | 5 | 1,010 | |||||||||||||||
Total | $47,747 | $1,648 | $409 | $708 | $50,512 | |||||||||||||||
(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, 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. | ||||||||||||||||||||
Schedule of nonperforming loans and leases by class | A summary of nonperforming loans and leases by class is as follows: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(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 | $94 | $3 | $97 | $113 | $1 | $114 | ||||||||||||||
Commercial real estate | 60 | — | 60 | 50 | — | 50 | ||||||||||||||
Leases | 1 | — | 1 | — | — | — | ||||||||||||||
Total commercial | 155 | 3 | 158 | 163 | 1 | 164 | ||||||||||||||
Residential mortgages | 347 | — | 347 | 345 | — | 345 | ||||||||||||||
Home equity loans | 210 | — | 210 | 203 | — | 203 | ||||||||||||||
Home equity lines of credit | 270 | — | 270 | 257 | — | 257 | ||||||||||||||
Home equity loans serviced by others (1) | 44 | — | 44 | 47 | — | 47 | ||||||||||||||
Home equity lines of credit serviced by others (1) | 25 | — | 25 | 25 | — | 25 | ||||||||||||||
Automobile | 30 | — | 30 | 21 | — | 21 | ||||||||||||||
Student | 26 | 4 | 30 | 11 | 6 | 17 | ||||||||||||||
Credit cards | 16 | — | 16 | 16 | 1 | 17 | ||||||||||||||
Other retail | 4 | 2 | 6 | 5 | — | 5 | ||||||||||||||
Total retail | 972 | 6 | 978 | 930 | 7 | 937 | ||||||||||||||
Total | $1,127 | $9 | $1,136 | $1,093 | $8 | $1,101 | ||||||||||||||
(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: | |||||||||||||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance: | ||||||||||||||||||||
Commercial | $1 | $3 | ||||||||||||||||||
Retail | 37 | 39 | ||||||||||||||||||
Nonperforming assets, net of valuation allowance | $38 | $42 | ||||||||||||||||||
Summary of key performance indicators | A summary of key performance indicators is as follows: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Nonperforming commercial loans and leases as a percentage of total loans and leases | 0.17 | % | 0.18 | % | ||||||||||||||||
Nonperforming retail loans as a percentage of total loans and leases | 1.03 | 1 | ||||||||||||||||||
Total nonperforming loans and leases as a percentage of total loans and leases | 1.2 | % | 1.18 | % | ||||||||||||||||
Nonperforming commercial assets as a percentage of total assets | 0.12 | % | 0.13 | % | ||||||||||||||||
Nonperforming retail assets as a percentage of total assets | 0.74 | 0.73 | ||||||||||||||||||
Total nonperforming assets as a percentage of total assets | 0.86 | % | 0.86 | % | ||||||||||||||||
Analysis of age of past due amounts | The following is an analysis of the age of the past due amounts (accruing and nonaccruing): | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(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 | $42 | $97 | $139 | $57 | $114 | $171 | ||||||||||||||
Commercial real estate | 19 | 60 | 79 | 26 | 50 | 76 | ||||||||||||||
Leases | 9 | 1 | 10 | 3 | — | 3 | ||||||||||||||
Total commercial | 70 | 158 | 228 | 86 | 164 | 250 | ||||||||||||||
Residential mortgages | 97 | 258 | 355 | 97 | 269 | 366 | ||||||||||||||
Home equity loans | 57 | 145 | 202 | 60 | 145 | 205 | ||||||||||||||
Home equity lines of credit | 77 | 193 | 270 | 73 | 198 | 271 | ||||||||||||||
Home equity loans serviced by others (1) | 22 | 21 | 43 | 26 | 23 | 49 | ||||||||||||||
Home equity lines of credit serviced by others (1) | 11 | 19 | 30 | 10 | 19 | 29 | ||||||||||||||
Automobile | 85 | 21 | 106 | 93 | 16 | 109 | ||||||||||||||
Student | 27 | 30 | 57 | 25 | 17 | 42 | ||||||||||||||
Credit cards | 18 | 16 | 34 | 22 | 17 | 39 | ||||||||||||||
Other retail | 15 | 5 | 20 | 18 | 4 | 22 | ||||||||||||||
Total retail | 409 | 708 | 1,117 | 424 | 708 | 1,132 | ||||||||||||||
Total | $479 | $866 | $1,345 | $510 | $872 | $1,382 | ||||||||||||||
(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: | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(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 | $97 | $30 | $41 | $163 | $138 | |||||||||||||||
Commercial real estate | 20 | 5 | 36 | 64 | 56 | |||||||||||||||
Total commercial | 117 | 35 | 77 | 227 | 194 | |||||||||||||||
Residential mortgages | 129 | 17 | 316 | 605 | 445 | |||||||||||||||
Home equity loans | 100 | 11 | 173 | 337 | 273 | |||||||||||||||
Home equity lines of credit | 27 | 2 | 130 | 191 | 157 | |||||||||||||||
Home equity loans serviced by others (1) | 59 | 9 | 29 | 100 | 88 | |||||||||||||||
Home equity lines of credit serviced by others (1) | 4 | 1 | 7 | 14 | 11 | |||||||||||||||
Automobile | 2 | — | 10 | 18 | 12 | |||||||||||||||
Student | 165 | 49 | 1 | 166 | 166 | |||||||||||||||
Credit cards | 31 | 13 | — | 31 | 31 | |||||||||||||||
Other retail | 16 | 5 | 3 | 22 | 19 | |||||||||||||||
Total retail | 533 | 107 | 669 | 1,484 | 1,202 | |||||||||||||||
Total | $650 | $142 | $746 | $1,711 | $1,396 | |||||||||||||||
(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, 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. | ||||||||||||||||||||
Schedule of additional information on impaired loans | Additional information on impaired loans is as follows: | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(in millions) | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | ||||||||||||||||
Commercial | $1 | $142 | $— | $102 | ||||||||||||||||
Commercial real estate | — | 51 | 1 | 117 | ||||||||||||||||
Total commercial | 1 | 193 | 1 | 219 | ||||||||||||||||
Residential mortgages | 4 | 441 | 3 | 442 | ||||||||||||||||
Home equity loans | 2 | 268 | 2 | 248 | ||||||||||||||||
Home equity lines of credit | 1 | 156 | 1 | 159 | ||||||||||||||||
Home equity loans serviced by others (1) | 1 | 88 | 1 | 101 | ||||||||||||||||
Home equity lines of credit serviced by others (1) | — | 11 | — | 11 | ||||||||||||||||
Automobile | — | 11 | — | 9 | ||||||||||||||||
Student | 2 | 164 | 2 | 158 | ||||||||||||||||
Credit cards | 1 | 30 | 1 | 39 | ||||||||||||||||
Other retail | — | 19 | — | 23 | ||||||||||||||||
Total retail | 11 | 1,188 | 10 | 1,190 | ||||||||||||||||
Total | $12 | $1,381 | $11 | $1,409 | ||||||||||||||||
(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 three months ended March 31, 2015, the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015, and were paid off in full, charged off, or sold prior to March 31, 2015. | |||||||||||||||||||
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 | 6 | $1 | $1 | 28 | $10 | $10 | ||||||||||||||
Commercial real estate | 1 | — | — | — | — | — | ||||||||||||||
Total commercial | 7 | 1 | 1 | 28 | 10 | 10 | ||||||||||||||
Residential mortgages | 33 | 6 | 6 | 10 | 2 | 2 | ||||||||||||||
Home equity loans | 21 | 1 | 1 | 37 | 5 | 5 | ||||||||||||||
Home equity lines of credit | — | — | — | 3 | — | — | ||||||||||||||
Home equity loans serviced by others (3) | 17 | 1 | 1 | — | — | — | ||||||||||||||
Automobile | 20 | 1 | 1 | 1 | — | — | ||||||||||||||
Credit cards | 604 | 3 | 3 | — | — | — | ||||||||||||||
Total retail | 695 | 12 | 12 | 51 | 7 | 7 | ||||||||||||||
Total | 702 | $13 | $13 | 79 | $17 | $17 | ||||||||||||||
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 | 1 | $2 | $2 | ($1 | ) | $— | ||||||||||||||
Commercial real estate | 1 | 4 | 4 | — | — | |||||||||||||||
Total commercial | 2 | 6 | 6 | (1 | ) | — | ||||||||||||||
Residential mortgages | 64 | 6 | 6 | (1 | ) | — | ||||||||||||||
Home equity loans | 197 | 10 | 10 | — | — | |||||||||||||||
Home equity lines of credit | 135 | 8 | 7 | — | 1 | |||||||||||||||
Home equity loans serviced by others (3) | 46 | 2 | 2 | — | 1 | |||||||||||||||
Home equity lines of credit serviced by others (3) | 7 | — | — | — | — | |||||||||||||||
Automobile | 297 | 5 | 4 | — | 1 | |||||||||||||||
Student | 381 | 8 | 7 | 2 | — | |||||||||||||||
Other retail | 11 | — | — | — | — | |||||||||||||||
Total retail | 1,138 | 39 | 36 | 1 | 3 | |||||||||||||||
Total | 1,140 | $45 | $42 | $— | $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) 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 three months ended March 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 March 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 | 7 | $1 | $1 | 13 | $1 | $1 | ||||||||||||||
Commercial real estate | 1 | — | — | — | — | — | ||||||||||||||
Total commercial | 8 | 1 | 1 | 13 | 1 | 1 | ||||||||||||||
Residential mortgages | 42 | 6 | 6 | 12 | 2 | 1 | ||||||||||||||
Home equity loans | 31 | 2 | 2 | 58 | 3 | 3 | ||||||||||||||
Home equity lines of credit | 1 | — | — | 70 | 4 | 4 | ||||||||||||||
Home equity loans serviced by others (3) | 14 | 1 | 1 | — | — | — | ||||||||||||||
Home equity lines of credit serviced by others (3) | 2 | — | — | — | — | — | ||||||||||||||
Automobile | 22 | — | — | — | — | — | ||||||||||||||
Credit cards | 577 | 3 | 3 | — | — | — | ||||||||||||||
Other retail | 2 | — | — | — | — | — | ||||||||||||||
Total retail | 691 | 12 | 12 | 140 | 9 | 8 | ||||||||||||||
Total | 699 | $13 | $13 | 153 | $10 | $9 | ||||||||||||||
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 | 1 | $— | $— | ($1 | ) | $— | ||||||||||||||
Total commercial | 1 | — | — | (1 | ) | — | ||||||||||||||
Residential mortgages | 132 | 15 | 14 | (1 | ) | — | ||||||||||||||
Home equity loans | 210 | 14 | 14 | — | — | |||||||||||||||
Home equity lines of credit | 81 | 6 | 5 | — | 2 | |||||||||||||||
Home equity loans serviced by others (3) | 46 | 3 | 2 | — | — | |||||||||||||||
Home equity lines of credit serviced by others (3) | 13 | — | — | — | — | |||||||||||||||
Automobile | 145 | 2 | 2 | — | 1 | |||||||||||||||
Student | 457 | 8 | 8 | — | — | |||||||||||||||
Other retail | 9 | — | — | — | — | |||||||||||||||
Total retail | 1,093 | 48 | 45 | (1 | ) | 3 | ||||||||||||||
Total | 1,094 | $48 | $45 | ($2 | ) | $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) 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. | ||||||||||||||||||||
Schedule of defaults | The table below summarizes TDRs that defaulted during the three months ended March 31, 2015 and 2014 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 March 31, 2015 and 2014. 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. | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(dollars in millions) | Number of Contracts | Balance Defaulted | Number of Contracts | Balance Defaulted | ||||||||||||||||
Commercial | 6 | $— | 11 | $1 | ||||||||||||||||
Commercial real estate | — | — | 1 | 1 | ||||||||||||||||
Total commercial | 6 | — | 12 | 2 | ||||||||||||||||
Residential mortgages | 49 | 7 | 40 | 4 | ||||||||||||||||
Home equity loans | 51 | 3 | 84 | 6 | ||||||||||||||||
Home equity lines of credit | 40 | 2 | 90 | 4 | ||||||||||||||||
Home equity loans serviced by others (1) | 16 | — | 16 | — | ||||||||||||||||
Home equity lines of credit serviced by others (1) | 1 | — | 9 | — | ||||||||||||||||
Automobile | 23 | — | 32 | — | ||||||||||||||||
Student | 65 | 2 | 97 | 2 | ||||||||||||||||
Credit cards | 102 | 1 | 166 | 1 | ||||||||||||||||
Other retail | 2 | — | 6 | — | ||||||||||||||||
Total retail | 349 | 15 | 540 | 17 | ||||||||||||||||
Total | 355 | $15 | 552 | $19 | ||||||||||||||||
(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: | |||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
(in millions) | Residential Mortgages | Home Equity Loans and Lines of Credit | Home Equity Products serviced by others | Credit Cards | Total | |||||||||||||||
High loan-to-value | $697 | $1,429 | $1,042 | $— | $3,168 | |||||||||||||||
Interest only/negative amortization | 937 | — | — | — | 937 | |||||||||||||||
Low introductory rate | — | — | — | 87 | 87 | |||||||||||||||
Multiple characteristics and other | 21 | — | — | — | 21 | |||||||||||||||
Total | $1,655 | $1,429 | $1,042 | $87 | $4,213 | |||||||||||||||
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 | |||||||||||||||
GOODWILL_Tables
GOODWILL (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of goodwill | The changes in the carrying value of goodwill for the three months ended March 31, 2015 and 2014 were: | |||||||||||
(in millions) | Consumer Banking | Commercial Banking | Total | |||||||||
Balance at December 31, 2013 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at March 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Balance at December 31, 2014 | $2,136 | $4,740 | $6,876 | |||||||||
Adjustments | — | — | — | |||||||||
Balance at March 31, 2015 | $2,136 | $4,740 | $6,876 | |||||||||
MORTGAGE_BANKING_Tables
MORTGAGE BANKING (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Mortgage Banking [Abstract] | ||||||||
Schedule of valuation allowance for impairment of recognized servicing assets | Changes related to MSRs were as follows: | |||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $184 | $208 | ||||||
Amount capitalized | 6 | 4 | ||||||
Amortization | (10 | ) | (11 | ) | ||||
Carrying amount before valuation allowance | 180 | 201 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 18 | 23 | ||||||
Valuation recovery | (1 | ) | (4 | ) | ||||
Balance at end of period | 17 | 19 | ||||||
Net carrying value of MSRs | $163 | $182 | ||||||
Servicing asset at amortized cost | Changes related to MSRs were as follows: | |||||||
Three Months Ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
MSRs: | ||||||||
Balance as of January 1 | $184 | $208 | ||||||
Amount capitalized | 6 | 4 | ||||||
Amortization | (10 | ) | (11 | ) | ||||
Carrying amount before valuation allowance | 180 | 201 | ||||||
Valuation allowance for servicing assets: | ||||||||
Balance as of January 1 | 18 | 23 | ||||||
Valuation recovery | (1 | ) | (4 | ) | ||||
Balance at end of period | 17 | 19 | ||||||
Net carrying value of MSRs | $163 | $182 | ||||||
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: | |||||||
(dollars in millions) | March 31, 2015 | December 31, 2014 | ||||||
Fair value | $176 | $179 | ||||||
Weighted average life (in years) | 5.1 | 5.2 | ||||||
Weighted average constant prepayment rate | 12.8% | 12.4% | ||||||
Weighted average discount rate | 9.8% | 9.8% | ||||||
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: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Weighted average life (in years) | 4.7 | 5.2 | ||||||
Weighted average constant prepayment rate | 12.2 | % | 12.1 | % | ||||
Weighted average discount rate | 9.6 | % | 10.4 | % | ||||
Schedule of the impact to fair value of an adverse change in key economic assumptions | ||||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Prepayment rate: | ||||||||
Decline in fair value from 50 basis points adverse change in interest rates | $6 | $9 | ||||||
Decline in fair value from 100 basis points adverse change in interest rates | $12 | $15 | ||||||
Weighted average discount rate: | ||||||||
Decline in fair value from 50 basis points adverse change | $3 | $3 | ||||||
Decline in fair value from 100 basis points adverse change | $6 | $6 | ||||||
BORROWED_FUNDS_Tables
BORROWED FUNDS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of short-term borrowed funds | The following is a summary of the Company’s short-term borrowed funds: | |||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Federal funds purchased | $— | $574 | ||||||
Securities sold under agreements to repurchase | 4,421 | 3,702 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 7,004 | 6,253 | ||||||
Total short-term borrowed funds | $11,425 | $10,529 | ||||||
Key data related to short-term borrowed funds is presented in the following table: | ||||||||
(dollars in millions) | As of and for the Three Months Ended March 31, 2015 | As of and for the Year Ended December 31, 2014 | ||||||
Weighted-average interest rate at period-end: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.22 | % | 0.14 | % | ||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 0.26 | 0.26 | ||||||
Maximum amount outstanding at month-end during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $5,375 | $7,022 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 7,004 | 7,702 | ||||||
Average amount outstanding during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | $4,607 | $5,699 | ||||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 6,969 | 5,640 | ||||||
Weighted-average interest rate during the period: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 0.18 | % | 0.12 | % | ||||
Other short-term borrowed funds (primarily current portion of FHLB advances) | 0.26 | 0.25 | ||||||
Schedule of long-term borrowed funds | The following is a summary of the Company’s long-term borrowed funds: | |||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
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 | 333 | ||||||
4.023% fixed rate subordinated debt, due 2024 (1) | 333 | 333 | ||||||
4.082% fixed rate subordinated debt, due 2025 (1) | 334 | 334 | ||||||
Banking Subsidiaries: | ||||||||
1.600% senior unsecured notes, due 2017 (2) | 750 | 750 | ||||||
2.450% senior unsecured notes, due 2019 (2) (3) | 755 | 746 | ||||||
Federal Home Loan advances due through 2033 | 20 | 772 | ||||||
Other | 29 | 24 | ||||||
Total long-term borrowed funds | $3,904 | $4,642 | ||||||
(1) Intercompany borrowed funds with RBS. See Note 14 “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 $5 million hedge of interest rate risk on medium term debt using interest rate swaps. See Note 12 “Derivatives” for further information. | ||||||||
Schedule of maturities of long-term borrowed funds | The following is a summary of maturities for the Company’s long-term borrowed funds at March 31, 2015: | |||||||
Year | (in millions) | |||||||
2015 or on demand | $— | |||||||
2016 | 3 | |||||||
2017 | 761 | |||||||
2018 | 10 | |||||||
2019 | 756 | |||||||
2020 and thereafter | 2,374 | |||||||
Total | $3,904 | |||||||
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of net periodic (income) cost | The following table presents the components of net periodic (income) cost for the Company’s qualified and non-qualified plans: | ||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
Qualified Plan | Non-Qualified Plan | Total | |||||||||||||||||||||||
(in millions) | 2015 | 2014 | (1) | 2015 | 2014 | (1) | 2015 | 2014 | (1) | ||||||||||||||||
Service cost | $1 | $1 | $— | $— | $1 | $1 | |||||||||||||||||||
Interest cost | 11 | 11 | 1 | 1 | 12 | 12 | |||||||||||||||||||
Expected return on plan assets | (18 | ) | (17 | ) | — | — | (18 | ) | (17 | ) | |||||||||||||||
Amortization of actuarial loss | 3 | 2 | 1 | — | 4 | 2 | |||||||||||||||||||
Net periodic pension (income) cost | ($3 | ) | ($3 | ) | $2 | $1 | ($1 | ) | ($2 | ) | |||||||||||||||
(1) Results for the three months ended March 31, 2014 included $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. |
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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: | |||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
(in millions) | Notional Amount (1) | Derivative Assets | Derivative Liabilities | Notional Amount (1) | Derivative Assets | Derivative Liabilities | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | $7,500 | $89 | $55 | $5,750 | $24 | $99 | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps | 32,632 | 655 | 569 | 31,848 | 589 | 501 | ||||||||||||||
Foreign exchange contracts | 8,046 | 253 | 247 | 8,359 | 170 | 164 | ||||||||||||||
Other contracts | 1,144 | 9 | 9 | 730 | 7 | 9 | ||||||||||||||
Total derivatives not designated as hedging instruments | 917 | 825 | 766 | 674 | ||||||||||||||||
Gross derivative fair values | 1,006 | 880 | 790 | 773 | ||||||||||||||||
Less: Gross amounts offset in the Consolidated Balance Sheets (2) | (264 | ) | (264 | ) | (161 | ) | (161 | ) | ||||||||||||
Total net derivative fair values presented in the Consolidated Balance Sheets (3) | $742 | $616 | $629 | $612 | ||||||||||||||||
(1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. | ||||||||||||||||||||
(2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||||||||||||||||||||
(3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities” 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 Three Months Ended March 31, 2015 | ||||||||||||||||||||
(in millions) | Derivative | Hedged Item | Hedge Ineffectiveness | |||||||||||||||||
Hedges of interest rate risk on borrowing using interest rate swaps | $9 | ($9 | ) | $— | ||||||||||||||||
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 Three Months Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Effective portion of gain (loss) recognized in OCI (1) | $104 | ($92 | ) | |||||||||||||||||
Amounts reclassified from OCI to interest income (2) | 18 | 18 | ||||||||||||||||||
Amounts reclassified from OCI to interest expense (2) | (15 | ) | (29 | ) | ||||||||||||||||
Ineffective portion of gain recognized in other income (3) | 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 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 | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Customer derivative contracts | ||||||||||||||||||||
Customer interest rate contracts (1) | $73 | $61 | ||||||||||||||||||
Customer foreign exchange contracts (1) | (35 | ) | 4 | |||||||||||||||||
Residential loan commitments (3) | — | 3 | ||||||||||||||||||
Economic hedges | ||||||||||||||||||||
Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) | (68 | ) | (53 | ) | ||||||||||||||||
Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) | 35 | (6 | ) | |||||||||||||||||
Forward sale contracts (3) | (1 | ) | (1 | ) | ||||||||||||||||
Total | $4 | $8 | ||||||||||||||||||
(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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of outstanding off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: | |||||||
(in millions) | March 31, 2015 | December 31, 2014 | ||||||
Commitment amount: | ||||||||
Undrawn commitments to extend credit | $55,224 | $55,899 | ||||||
Financial standby letters of credit | 2,292 | 2,315 | ||||||
Performance letters of credit | 60 | 65 | ||||||
Commercial letters of credit | 58 | 75 | ||||||
Marketing rights | 51 | 51 | ||||||
Risk participation agreements | 26 | 19 | ||||||
Residential mortgage loans sold with recourse | 10 | 11 | ||||||
Total | $57,721 | $58,435 | ||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Related Party Transactions [Abstract] | |||||||||||
Schedule of inter-company borrowed funds | The following is a summary borrowed funds from RBS: | ||||||||||
(dollars in millions) | Interest Rate | Maturity Date | 31-Mar-15 | 31-Dec-14 | |||||||
Subordinated debt | 4.08% | Jan-25 | $334 | $334 | |||||||
4.02% | Oct-24 | 333 | 333 | ||||||||
4.15% | Jul-24 | 333 | 333 | ||||||||
4.69% | Jan-24 | 334 | 334 | ||||||||
4.77% | Oct-23 | 333 | 333 | ||||||||
5.16% | Jun-23 | 333 | 333 | ||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
(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 | $265 | $258 | $7 | $213 | $206 | $7 | ||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
(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 | ||||||||||||||||||||||
Commercial and commercial real estate loans held for sale, at fair value | $57 | $57 | $— | $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 March 31, 2015: | |||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
Mortgage-backed securities | $18,996 | $— | $18,996 | $— | ||||||||||||||||||||||||
State and political subdivisions | 10 | — | 10 | — | ||||||||||||||||||||||||
Equity securities | 20 | 2 | 18 | — | ||||||||||||||||||||||||
U.S. Treasury | 15 | 15 | — | — | ||||||||||||||||||||||||
Total securities available for sale | 19,041 | 17 | 19,024 | — | ||||||||||||||||||||||||
Residential loans held for sale | 265 | — | 265 | — | ||||||||||||||||||||||||
Commercial loans held for sale | 57 | — | 57 | — | ||||||||||||||||||||||||
Total loans held for sale | 322 | — | 322 | — | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||
Interest rate swaps | 744 | — | 744 | — | ||||||||||||||||||||||||
Foreign exchange contracts | 253 | — | 253 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative assets | 1,006 | — | 1,006 | — | ||||||||||||||||||||||||
Venture capital investments and other investments | 6 | — | 5 | 1 | ||||||||||||||||||||||||
Total assets | $20,375 | $17 | $20,357 | $1 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||
Interest rate swaps | $624 | $— | $624 | $— | ||||||||||||||||||||||||
Foreign exchange contracts | 247 | — | 247 | — | ||||||||||||||||||||||||
Other contracts | 9 | — | 9 | — | ||||||||||||||||||||||||
Total derivative liabilities | 880 | — | 880 | — | ||||||||||||||||||||||||
Total liabilities | $880 | $— | $880 | $— | ||||||||||||||||||||||||
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 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 changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||||||
Balance as of January 1 | $5 | $5 | ||||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | ||||||||||||||||||||||||||||
Purchases | 1 | — | ||||||||||||||||||||||||||
Sales | — | — | ||||||||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||||||
Other net gains | — | 1 | ||||||||||||||||||||||||||
Transfers from Level 3 to Level 2 | (5 | ) | — | |||||||||||||||||||||||||
Balance as of period end | $1 | $6 | ||||||||||||||||||||||||||
Net unrealized gain included in net income for the year relating to assets held at period end | $1 | $— | ||||||||||||||||||||||||||
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents losses on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: | |||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||||||
Impaired collateral-dependent loans | ($3 | ) | ($75 | ) | ||||||||||||||||||||||||
MSRs | (1 | ) | (4 | ) | ||||||||||||||||||||||||
Foreclosed assets | (1 | ) | (1 | ) | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
(in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Impaired collateral-dependent loans | $87 | $— | $87 | $— | ||||||||||||||||||||||||
MSRs | 163 | — | — | 163 | ||||||||||||||||||||||||
Foreclosed assets | 36 | — | 36 | — | ||||||||||||||||||||||||
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 | — | ||||||||||||||||||||||||
Assets and liabilities measured at fair value | The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: | |||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
Securities held to maturity | $5,178 | $5,281 | $— | $— | $5,178 | $5,281 | $— | $— | ||||||||||||||||||||
Other investment securities | 867 | 867 | — | — | 867 | 867 | — | — | ||||||||||||||||||||
Other loans held for sale | 54 | 54 | — | — | — | — | 54 | 54 | ||||||||||||||||||||
Loans and leases | 94,494 | 94,892 | — | — | 87 | 87 | 94,407 | 94,805 | ||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||
Deposits | 98,990 | 99,005 | — | — | 98,990 | 99,005 | — | — | ||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,421 | — | — | 4,421 | 4,421 | — | — | ||||||||||||||||||||
Other short-term borrowed funds | 7,004 | 7,004 | — | — | 7,004 | 7,004 | — | — | ||||||||||||||||||||
Long-term borrowed funds | 3,904 | 4,006 | — | — | 3,904 | 4,006 | — | — | ||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
Securities held to maturity | $5,148 | $5,193 | $— | $— | $5,148 | $5,193 | $— | $— | ||||||||||||||||||||
Other investment securities | 872 | 872 | — | — | 872 | 872 | — | — | ||||||||||||||||||||
Other loans held for sale | 25 | 25 | — | — | — | — | 25 | 25 | ||||||||||||||||||||
Loans and leases | 93,410 | 93,674 | — | — | 102 | 102 | 93,308 | 93,572 | ||||||||||||||||||||
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 | — | — | ||||||||||||||||||||
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents capital and capital ratio information evidencing the Company’s transition from Basel I regulatory accounting as of December 31, 2014 to Basel III regulatory accounting as of March 31, 2015. Basel I requirements did not include the common equity tier I capital ratio. Certain Basel III requirements are subject to phase-in through 2018, and these phase-in rules are used in this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means that the Company will not be required to change its methodology for recognizing in regulatory capital only a subset of unrealized gains and losses that are classified as AOCI. As an AOCI opt-out institution the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses on securities AFS, accumulated net gains and losses on cash-flow hedges included in AOCI, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities HTM that are included in AOCI. | ||||||||||||||||||
Transitional Basel III | |||||||||||||||||||
FDIC Requirements | |||||||||||||||||||
Actual | Minimum Capital Adequacy | Classification as Well-capitalized | |||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
As of March 31, 2015 | Basel III | ||||||||||||||||||
Common equity tier 1 capital | $13,360 | 12.2 | % | $4,940 | 4.5 | % | $7,136 | 6.5 | % | ||||||||||
Tier 1 capital to risk-weighted assets | 13,360 | 12.2 | 6,587 | 6 | 8,783 | 8 | |||||||||||||
Total capital to risk-weighted assets | 16,969 | 15.5 | 8,783 | 8 | 10,979 | 10 | |||||||||||||
Tier 1 capital to average assets (leverage) | 13,360 | 10.5 | 5,087 | 4 | 6,358 | 5 | |||||||||||||
As of December 31, 2014 | Basel I | ||||||||||||||||||
Tier 1 common equity | $13,173 | 12.4 | % | Not Applicable | Not Applicable | Not Applicable | Not Applicable | ||||||||||||
Tier 1 capital to risk-weighted assets | 13,173 | 12.4 | $4,239 | 4 | % | $6,358 | 6 | % | |||||||||||
Total capital to risk-weighted assets | 16,781 | 15.8 | 8,477 | 8 | 10,596 | 10 | |||||||||||||
Tier 1 capital to average assets (leverage) | 13,173 | 10.6 | 4,982 | 4 | 6,227 | 5 | |||||||||||||
EXIT_COSTS_AND_RESTRUCTURING_R1
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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, 2014 | $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 | |||||||||
Additions | — | 2 | 1 | 3 | |||||||||
Reversals | (2 | ) | — | — | (2 | ) | |||||||
Utilization | (3 | ) | (3 | ) | (4 | ) | (10 | ) | |||||
Reserve balance as of March 31, 2015 | $18 | $17 | $— | $35 | |||||||||
RECLASSIFICATIONS_OUT_OF_ACCUM1
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, 2014 | ($298 | ) | ($91 | ) | ($259 | ) | ($648 | ) | ||||||||||
Other comprehensive income before reclassifications | 59 | 71 | — | 130 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (19 | ) | — | (19 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | 7 | (14 | ) | 1 | (6 | ) | ||||||||||||
Net other comprehensive income | 66 | 38 | 1 | 105 | ||||||||||||||
Balance at March 31, 2014 | ($232 | ) | ($53 | ) | ($258 | ) | ($543 | ) | ||||||||||
(in millions) | Net Unrealized Gains (Losses) on Derivatives | Net Unrealized Gains (Losses) on Securities | Defined Benefit Pension Plans | Total AOCI | ||||||||||||||
Balance at January 1, 2015 | ($69 | ) | $74 | ($377 | ) | ($372 | ) | |||||||||||
Other comprehensive income before reclassifications | 65 | 90 | — | 155 | ||||||||||||||
Other than temporary impairment not recognized in earnings on securities | — | (19 | ) | — | (19 | ) | ||||||||||||
Amounts reclassified from other comprehensive income | (2 | ) | (4 | ) | 2 | (4 | ) | |||||||||||
Net other comprehensive income | 63 | 67 | 2 | 132 | ||||||||||||||
Balance at March 31, 2015 | ($6 | ) | $141 | ($375 | ) | ($240 | ) | |||||||||||
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 unaudited interim Consolidated Statements of Operations: | |||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||
Details about AOCI Components | Affected Line Item in the unaudited interim Consolidated Statements of Operations | |||||||||||||||||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | $18 | $18 | Interest income | |||||||||||||||
(15 | ) | (29 | ) | Interest expense | ||||||||||||||
— | — | Other income | ||||||||||||||||
3 | (11 | ) | Income (loss) before income tax expense (benefit) | |||||||||||||||
1 | (4 | ) | Income tax expense (benefit) | |||||||||||||||
$2 | ($7 | ) | Net income (loss) | |||||||||||||||
Reclassification of net securities gains (losses) to net income (loss): | $8 | $25 | Securities gains, net | |||||||||||||||
(1 | ) | (4 | ) | Net impairment losses recognized in earnings | ||||||||||||||
7 | 21 | Income (loss) before income tax expense (benefit) | ||||||||||||||||
3 | 7 | Income tax expense (benefit) | ||||||||||||||||
$4 | $14 | Net income (loss) | ||||||||||||||||
Reclassification of changes related to defined benefit pension plans: | ($3 | ) | ($2 | ) | Salaries and employee benefits | |||||||||||||
(3 | ) | (2 | ) | Income (loss) before income tax expense (benefit) | ||||||||||||||
(1 | ) | (1 | ) | Income tax expense (benefit) | ||||||||||||||
($2 | ) | ($1 | ) | Net income (loss) | ||||||||||||||
Total reclassification gains (losses) | $4 | $6 | Net income (loss) | |||||||||||||||
The following table presents the effects to net income of the amounts reclassified out of AOCI: | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||
Net interest income (includes $3 and ($11) of AOCI reclassifications, respectively) | $836 | $808 | ||||||||||||||||
Provision for credit losses | 58 | 121 | ||||||||||||||||
Noninterest income (includes $7 and $21 of AOCI reclassifications, respectively) | 347 | 358 | ||||||||||||||||
Noninterest expense (includes $3 and $2 of AOCI reclassifications, respectively) | 810 | 810 | ||||||||||||||||
Income before income tax expense | 315 | 235 | ||||||||||||||||
Income tax expense (includes $3 and $2 income tax net expense from reclassification items, respectively) | 106 | 69 | ||||||||||||||||
Net income | $209 | $166 | ||||||||||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of segment reporting information | ||||||||||||||||
As of and for the Three Months Ended March 31, 2015 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $533 | $276 | $27 | $836 | ||||||||||||
Noninterest income | 219 | 100 | 28 | 347 | ||||||||||||
Total revenue | 752 | 376 | 55 | 1,183 | ||||||||||||
Noninterest expense | 596 | 173 | 41 | 810 | ||||||||||||
Profit before provision for credit losses | 156 | 203 | 14 | 373 | ||||||||||||
Provision for credit losses | 63 | (21 | ) | 16 | 58 | |||||||||||
Income (loss) before income tax expense (benefit) | 93 | 224 | (2 | ) | 315 | |||||||||||
Income tax expense (benefit) | 32 | 77 | (3 | ) | 106 | |||||||||||
Net income | $61 | $147 | $1 | $209 | ||||||||||||
Total average assets | $51,602 | $41,606 | $40,117 | $133,325 | ||||||||||||
As of and for the Three Months Ended March 31, 2014 | ||||||||||||||||
(in millions) | Consumer Banking | Commercial Banking | Other | Consolidated | ||||||||||||
Net interest income | $537 | $256 | $15 | $808 | ||||||||||||
Noninterest income | 219 | 107 | 32 | 358 | ||||||||||||
Total revenue | 756 | 363 | 47 | 1,166 | ||||||||||||
Noninterest expense | 638 | 153 | 19 | 810 | ||||||||||||
Profit before provision for credit losses | 118 | 210 | 28 | 356 | ||||||||||||
Provision for credit losses | 70 | (5 | ) | 56 | 121 | |||||||||||
Income (loss) before income tax expense (benefit) | 48 | 215 | (28 | ) | 235 | |||||||||||
Income tax expense (benefit) | 16 | 74 | (21 | ) | 69 | |||||||||||
Net income (loss) | $32 | $141 | ($7 | ) | $166 | |||||||||||
Total average assets | $47,610 | $36,955 | $39,339 | $123,904 | ||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of earnings per share | |||||||||
Three Months Ended March 31, | |||||||||
(dollars in millions, except share and per-share data) | 2015 | 2014 | |||||||
Numerator (basic and diluted): | |||||||||
Net income | $209 | $166 | |||||||
Less: Preferred stock dividends | — | — | |||||||
Net income available to common stockholders | $209 | $166 | |||||||
Denominator: | |||||||||
Weighted-average common shares outstanding - basic | 546,291,363 | 559,998,324 | |||||||
Dilutive common shares: share-based awards | 3,507,354 | — | |||||||
Weighted-average common shares outstanding - diluted | 549,798,717 | 559,998,324 | |||||||
Earnings per common share: | |||||||||
Basic | $0.38 | $0.30 | |||||||
Diluted | 0.38 | 0.3 | |||||||
OTHER_OPERATING_EXPENSE_Tables
OTHER OPERATING EXPENSE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Schedule of other operating expense | The following table presents the details of other operating expense: | |||||||
Three months ended March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Deposit insurance | $34 | $20 | ||||||
Promotional expense | 22 | 20 | ||||||
Settlements and operating losses | 8 | 29 | ||||||
Postage and delivery | 12 | 13 | ||||||
Other | 57 | 64 | ||||||
Other operating expense | $133 | $146 | ||||||
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION - Narrative (Details) | 0 Months Ended |
Aug. 22, 2014 | |
Basis of Presentation [Abstract] | |
Stock split | 165,582 |
SECURITIES_Narrative_Details
SECURITIES - Narrative (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Impaired debt securities sold | $0 | $0 | ||
Pretax non-credit related losses were deferred in OCI | 30 | 30 | ||
Other/non-agency | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative balance at end of period | 1 | 4 | ||
Available-for-sale Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative balance at end of period | 62 | 59 | 62 | 56 |
Reductions due to increases in cash flow expectations on impaired securities | 1 | 1 | ||
Held-to-maturity Securities | ||||
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Equity Securities Available-for-sale, Amortized Cost | $18,710 | $18,433 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 387 | 308 |
Equity Securities Available-for-sale, Gross Unrealized Losses | -56 | -85 |
Equity Securities Available-for-sale, Fair Value | 19,041 | 18,656 |
Securities Held-to-maturity, Amortized Cost | 5,178 | 5,148 |
Securities Held-to-maturity, Gross Unrealized Gain | 107 | 76 |
Securities Held-to-maturity, Gross Unrealized Losses | -4 | -31 |
Securities held-to-maturity, Fair Value | 5,281 | 5,193 |
Other Investment Securities, Amortized Cost | 867 | 872 |
Other Investment Securities, Gross Unrealized Gains | 0 | 0 |
Other Investment Securities, Gross Unrealized Losses | 0 | 0 |
Other Investment Securities, Fair Value | 867 | 872 |
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 | 10 |
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 | 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 | 17,999 | 17,683 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 382 | 301 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -25 | -50 |
Debt Securities Available-for-sale, Fair Value | 18,356 | 17,934 |
Securities Held-to-maturity, Amortized Cost | 3,799 | 3,728 |
Securities Held-to-maturity, Gross Unrealized Gain | 52 | 22 |
Securities Held-to-maturity, Gross Unrealized Losses | -4 | -31 |
Securities held-to-maturity, Fair Value | 3,847 | 3,719 |
Other/non-agency | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Debt Securities Available-for-sale, Amortized Cost | 667 | 703 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 4 | 4 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -31 | -35 |
Debt Securities Available-for-sale, Fair Value | 640 | 672 |
Securities Held-to-maturity, Amortized Cost | 1,379 | 1,420 |
Securities Held-to-maturity, Gross Unrealized Gain | 55 | 54 |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 |
Securities held-to-maturity, Fair Value | 1,434 | 1,474 |
Total mortgage-backed securities | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Debt Securities Available-for-sale, Amortized Cost | 18,666 | 18,386 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 386 | 305 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -56 | -85 |
Debt Securities Available-for-sale, Fair Value | 18,996 | 18,606 |
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 | 18,691 | 18,411 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 386 | 305 |
Debt Securities Available-for-sale, Gross Unrealized Losses | -56 | -85 |
Debt Securities Available-for-sale, Fair Value | 19,021 | 18,631 |
Marketable equity securities | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Equity Securities Available-for-sale, Amortized Cost | 7 | 10 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 1 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 8 | 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 | 19 | 22 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 1 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 20 | 25 |
Federal Reserve Bank stock | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Federal Reserve Bank Stock, Amortized Cost | 468 | 477 |
Federal Reserve Bank Stock, Gross Unrealized Gains | 0 | 0 |
Federal Reserve Bank Stock, Gross Unrealized Loss | 0 | 0 |
Federal Reserve Bank Stock, Fair Value | 468 | 477 |
Federal Home Loan Bank stock | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Federal Home Loan Bank Stock, Amortized Cost | 393 | 390 |
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 | 393 | 390 |
Total other investment securities | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Venture Capital, Amortized Cost | 6 | 5 |
Venture Capital, Gross Unrealized Gain | 0 | 0 |
Venture Capital, Gross Unrealized Loss | 0 | 0 |
Venture Capital, Fair Value | $6 | $5 |
SECURITIES_Schedule_of_Investm1
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 21 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $646 | $3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -4 | -26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 57 | 70 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,677 | 2,173 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -56 | -90 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 78 | 151 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 2,323 | 5,535 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -60 | -116 |
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 | 1 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 10 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | 0 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 0 | 1 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 10 |
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 | 0 |
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 | 14 | 75 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 561 | 3,282 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -2 | -24 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 40 | 52 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,292 | 1,766 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -27 | -57 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 54 | 127 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 1,853 | 5,048 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -29 | -81 |
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 | 6 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 75 | 80 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -2 | -2 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 17 | 17 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 385 | 397 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -29 | -33 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 23 | 23 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 460 | 477 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | -31 | -35 |
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 | 20 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 636 | 3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | -4 | -26 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | 57 | 69 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,677 | 2,163 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | -56 | -90 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | 77 | 150 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | 2,313 | 5,525 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | ($60) | ($116) |
SECURITIES_Schedule_of_Cumulat
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) (Available-for-sale Securities, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Available-for-sale Securities | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Cumulative balance at beginning of period | $62 | $56 |
Credit impairments recognized in earnings on debt securities that have been previously impaired | 1 | 4 |
Reductions due to increases in cash flow expectations on impaired securities | -1 | -1 |
Cumulative balance at end of period | $62 | $59 |
SECURITIES_Schedule_of_Availab
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis [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 | 107 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2,240 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 16,327 |
Amortized Cost, Debt securities available for sale, Total | 18,691 |
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 | 5,178 |
Amortized Cost, Debt securities held to maturity, Total | 5,178 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 17 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 107 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 2,240 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,505 |
Total amortized cost of debt securities, Total | 23,869 |
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 | 110 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,271 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,623 |
Fair Value, Debt securities available for sale, Total | 19,021 |
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 | 5,281 |
Fair Value, Debt securities held to maturity, Total | 5,281 |
Total fair value of debt securities, Maturity of 1 Year or Less | 17 |
Total fair value of debt securities, Maturity of 1-5 Years | 110 |
Total fair value of debt securities, Maturity of 5-10 Years | 2,271 |
Total fair value of debt securities, Maturity After 10 Years | 21,904 |
Total fair value of debt securities, Total | 24,302 |
U.S. Treasury | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis [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] | |
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] | |
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 | 2,196 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,748 |
Amortized Cost, Debt securities available for sale, Total | 17,999 |
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 | 3,799 |
Amortized Cost, Debt securities held to maturity, Total | 3,799 |
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 | 2,226 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,072 |
Fair Value, Debt securities available for sale, Total | 18,356 |
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 | 3,847 |
Fair Value, Debt securities held to maturity, Total | 3,847 |
Other/non-agency | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis [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 | 54 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 44 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 569 |
Amortized Cost, Debt securities available for sale, Total | 667 |
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 | 1,379 |
Amortized Cost, Debt securities held to maturity, Total | 1,379 |
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 | 54 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 45 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 541 |
Fair Value, Debt securities available for sale, Total | 640 |
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 | 1,434 |
Fair Value, Debt securities held to maturity, Total | $1,434 |
SECURITIES_Income_Recognized_f
SECURITIES - Income Recognized from Investment Securities (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | ||
Taxable | $159 | $149 |
Non-taxable | 0 | 0 |
Total interest income from investment securities | 159 | 149 |
Gain (Loss) on Sale of Investments [Abstract] | ||
Gains on sale of debt securities | 12 | 25 |
Losses on sale of debt securities | -4 | 0 |
Debt securities gains, net | 8 | 25 |
Equity securities gains | $2 | $0 |
SECURITIES_Schedule_of_Securit
SECURITIES - Schedule of Securities Pledged (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $4,334 | $3,650 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,315 | 1,355 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,657 | 3,453 |
Pledged against repurchase agreements, Fair Value | 4,423 | 3,701 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,367 | 1,407 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $3,745 | $3,520 |
SECURITIES_Schedule_of_Balance
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Securities sold under agreements to repurchase, gross | ($3,400) | ($2,600) |
Securities sold under agreements to repurchase, offset | 0 | 0 |
Securities sold under agreements to repurchase, net | $3,400 | $2,600 |
SECURITIES_Schedule_of_Securit1
SECURITIES - Schedule of Securities Under Agreements to Repurchase or Resell Remaining Contractual Maturity (Details) (Mortgage-backed securities - Agency, USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreements to repurchase | ($3,400) |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreements to repurchase | 0 |
Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreements to repurchase | -350 |
30-90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreements to repurchase | -1,000 |
Greater Than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities sold under agreements to repurchase | ($2,050) |
LOANS_AND_LEASES_Narrative_Det
LOANS AND LEASES - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $322,000,000 | $256,000,000 | |
Other loans held for sale | 54,000,000 | 25,000,000 | |
Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged as collateral for FHLB borrowed funds | 22,800,000,000 | 22,000,000,000 | |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 13,000,000,000 | 11,800,000,000 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfer of portfolio loans and leases to held-for-sale | 41,000,000 | ||
Loans and leases receivable held-for-sale, gross | 43,000,000 | ||
Allowance for Loan and Lease Losses, Sales and Other | 2,000,000 | ||
Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 322,000,000 | 256,000,000 | |
Residential, including originated home equity products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 249,000,000 | 483,000,000 | |
Mortgage loans sold | 273,000,000 | 126,000,000 | |
Consumer Loans Auto Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 393,000,000 | 202,000,000 | |
Student | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 261,000,000 | 40,000,000 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Leases sold | $111,000,000 |
LOANS_AND_LEASES_Summary_of_Lo
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | $43,982,000,000 | $43,226,000,000 | ||
Loans and leases retail | 50,512,000,000 | 50,184,000,000 | ||
Loans and leases | 94,494,000,000 | 93,410,000,000 | ||
Loans held for sale | 322,000,000 | 256,000,000 | ||
Banking Subsidiaries | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans serviced for others by the Company's subsidiaries | 18,000,000,000 | 17,900,000,000 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 32,249,000,000 | 31,431,000,000 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 7,863,000,000 | 7,809,000,000 | ||
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases commercial | 3,870,000,000 | 3,986,000,000 | ||
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 11,808,000,000 | 11,832,000,000 | ||
Loans held for sale | 322,000,000 | 256,000,000 | ||
Home equity loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 3,212,000,000 | 3,424,000,000 | ||
Home equity lines of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 15,127,000,000 | 15,423,000,000 | ||
Home equity loans serviced by others | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,192,000,000 | [1] | 1,228,000,000 | [1] |
Home equity lines of credit serviced by others | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 544,000,000 | [1] | 550,000,000 | [1] |
Automobile | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 13,179,000,000 | 12,706,000,000 | ||
Student | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 2,852,000,000 | 2,256,000,000 | ||
Credit cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,588,000,000 | 1,693,000,000 | ||
Other retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases retail | 1,010,000,000 | 1,072,000,000 | ||
Residential mortgage and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | 376,000,000 | 281,000,000 | ||
Total Loans and Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases | $94,494,000,000 | [2],[3] | $93,410,000,000 | [2],[3] |
[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 $376 million as of March 31, 2015 and $281 million as of December 31, 2014. | |||
[3] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $18.0 billion and $17.9 billion at March 31, 2015 and December 31, 2014, respectively. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $232 | |
Larger balance commercial loans minimum balance | 3 | 3 |
Commitments to lend additional funds to debtors owing receivables which were TDRs | 34 | 53 |
High loan to value criteria (percent) | 90.00% | 90.00% |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | 147 | 176 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $1,200 | $1,200 |
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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $1,195 | |
Provision charged to income | 58 | 121 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,202 | |
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 | 1,195 | 1,221 |
Charge-offs | -115 | -128 |
Recoveries | 61 | 41 |
Net recoveries (charge-offs) | -54 | -87 |
Allowance for Loan and Lease Losses, Sales and Other | -2 | |
Provision charged to income | 63 | 125 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,202 | 1,259 |
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 | 544 | 498 |
Charge-offs | -6 | -6 |
Recoveries | 28 | 14 |
Net recoveries (charge-offs) | 22 | 8 |
Allowance for Loan and Lease Losses, Sales and Other | 0 | |
Provision charged to income | 12 | 21 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 578 | 527 |
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 | 651 | 723 |
Charge-offs | -109 | -122 |
Recoveries | 33 | 27 |
Net recoveries (charge-offs) | -76 | -95 |
Allowance for Loan and Lease Losses, Sales and Other | -2 | |
Provision charged to income | 51 | 104 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 624 | 732 |
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 | 61 | 39 |
Credit for unfunded lending commitments | -5 | -4 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 56 | 35 |
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 | 61 | 39 |
Credit for unfunded lending commitments | -5 | -4 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 56 | 35 |
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 |
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 | 1,258 | 1,294 |
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 | 634 | 562 |
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 | $624 | $732 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $1,396 | $1,413 |
Formula-based evaluation | 93,098 | 91,997 |
Investment in loan balance | 94,494 | 93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 194 | 205 |
Formula-based evaluation | 43,788 | 43,021 |
Investment in loan balance | 43,982 | 43,226 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 1,202 | 1,208 |
Formula-based evaluation | 49,310 | 48,976 |
Investment in loan balance | $50,512 | $50,184 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $142 | $129 |
Formula-based evaluation | 1,116 | 1,127 |
Allowance for credit losses | 1,258 | 1,256 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 35 | 20 |
Formula-based evaluation | 599 | 585 |
Allowance for credit losses | 634 | 605 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 107 | 109 |
Formula-based evaluation | 517 | 542 |
Allowance for credit losses | $624 | $651 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $94,494 | $93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 43,982 | 43,226 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 32,249 | 31,431 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 7,863 | 7,809 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 3,870 | 3,986 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 41,983 | 41,300 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 30,623 | 30,022 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 7,547 | 7,354 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 3,813 | 3,924 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,107 | 1,217 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 903 | 876 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 198 | 329 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 6 | 12 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 729 | 538 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 626 | 427 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 52 | 61 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 51 | 50 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 163 | 171 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 97 | 106 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 66 | 65 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Investment in loan balance | $94,494 | $93,410 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Investment in loan balance | 50,512 | 50,184 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 11,373 | 11,352 | ||
1-29 Days Past Due | 80 | 114 | ||
30-89 Days Past Due | 97 | 97 | ||
90 Days or More Past Due | 258 | 269 | ||
Investment in loan balance | 11,808 | 11,832 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 2,817 | 2,997 | ||
1-29 Days Past Due | 193 | 222 | ||
30-89 Days Past Due | 57 | 60 | ||
90 Days or More Past Due | 145 | 145 | ||
Investment in loan balance | 3,212 | 3,424 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 14,471 | 14,705 | ||
1-29 Days Past Due | 386 | 447 | ||
30-89 Days Past Due | 77 | 73 | ||
90 Days or More Past Due | 193 | 198 | ||
Investment in loan balance | 15,127 | 15,423 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,082 | [1] | 1,101 | [1] |
1-29 Days Past Due | 67 | [1] | 78 | [1] |
30-89 Days Past Due | 22 | [1] | 26 | [1] |
90 Days or More Past Due | 21 | [1] | 23 | [1] |
Investment in loan balance | 1,192 | [1] | 1,228 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 455 | [1] | 455 | [1] |
1-29 Days Past Due | 59 | [1] | 66 | [1] |
30-89 Days Past Due | 11 | [1] | 10 | [1] |
90 Days or More Past Due | 19 | [1] | 19 | [1] |
Investment in loan balance | 544 | [1] | 550 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 12,378 | 11,839 | ||
1-29 Days Past Due | 695 | 758 | ||
30-89 Days Past Due | 85 | 93 | ||
90 Days or More Past Due | 21 | 16 | ||
Investment in loan balance | 13,179 | 12,706 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 2,725 | 2,106 | ||
1-29 Days Past Due | 70 | 108 | ||
30-89 Days Past Due | 27 | 25 | ||
90 Days or More Past Due | 30 | 17 | ||
Investment in loan balance | 2,852 | 2,256 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,517 | 1,615 | ||
1-29 Days Past Due | 37 | 39 | ||
30-89 Days Past Due | 18 | 22 | ||
90 Days or More Past Due | 16 | 17 | ||
Investment in loan balance | 1,588 | 1,693 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 929 | 985 | ||
1-29 Days Past Due | 61 | 65 | ||
30-89 Days Past Due | 15 | 18 | ||
90 Days or More Past Due | 5 | 4 | ||
Investment in loan balance | 1,010 | 1,072 | ||
Total retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 47,747 | 47,155 | ||
1-29 Days Past Due | 1,648 | 1,897 | ||
30-89 Days Past Due | 409 | 424 | ||
90 Days or More Past Due | 708 | 708 | ||
Investment in loan balance | $50,512 | $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. |
ALLOWANCE_FOR_CREDIT_LOSSES_NO8
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | $1,127 | $1,093 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 9 | 8 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 1,136 | 1,101 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 155 | 163 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 3 | 1 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 158 | 164 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 94 | 113 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 3 | 1 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 97 | 114 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 60 | 50 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 60 | 50 | ||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 1 | 0 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 1 | 0 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 972 | 930 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 6 | 7 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 978 | 937 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 347 | 345 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 347 | 345 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 210 | 203 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 210 | 203 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 270 | 257 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 270 | 257 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 44 | [1] | 47 | [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 | 44 | [1] | 47 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 25 | [1] | 25 | [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] | 25 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 30 | 21 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 30 | 21 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 26 | 11 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 4 | 6 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 30 | 17 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 16 | 16 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 0 | 1 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | 16 | 17 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccruing | 4 | 5 | ||
Financing Receivable, Recorded Investment, Accruing and 90 Days or More Delinquent | 2 | 0 | ||
Financing Receivable, Recorded Investment, Total Nonperforming Loans and Leases | $6 | $5 | ||
[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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $38 | $42 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | 1 | 3 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $37 | $39 |
Recovered_Sheet1
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 1.20% | 1.18% |
Nonperforming assets as a percentage of total assets | 0.86% | 0.86% |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.17% | 0.18% |
Nonperforming assets as a percentage of total assets | 0.12% | 0.13% |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 1.03% | 1.00% |
Nonperforming assets as a percentage of total assets | 0.74% | 0.73% |
Recovered_Sheet2
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | $479 | $510 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 866 | 872 | ||
Impaired Financing Receivables, Total Past Due | 1,345 | 1,382 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 70 | 86 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 158 | 164 | ||
Impaired Financing Receivables, Total Past Due | 228 | 250 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 42 | 57 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 97 | 114 | ||
Impaired Financing Receivables, Total Past Due | 139 | 171 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 19 | 26 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 60 | 50 | ||
Impaired Financing Receivables, Total Past Due | 79 | 76 | ||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 9 | 3 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 1 | 0 | ||
Impaired Financing Receivables, Total Past Due | 10 | 3 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 409 | 424 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 708 | 708 | ||
Impaired Financing Receivables, Total Past Due | 1,117 | 1,132 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 97 | 97 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 258 | 269 | ||
Impaired Financing Receivables, Total Past Due | 355 | 366 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 57 | 60 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 145 | 145 | ||
Impaired Financing Receivables, Total Past Due | 202 | 205 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 77 | 73 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 193 | 198 | ||
Impaired Financing Receivables, Total Past Due | 270 | 271 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 22 | [1] | 26 | [1] |
Impaired Financing Receivables, 90 Days or More Past Due | 21 | [1] | 23 | [1] |
Impaired Financing Receivables, Total Past Due | 43 | [1] | 49 | [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 | 11 | [1] | 10 | [1] |
Impaired Financing Receivables, 90 Days or More Past Due | 19 | [1] | 19 | [1] |
Impaired Financing Receivables, Total Past Due | 30 | [1] | 29 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 85 | 93 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 21 | 16 | ||
Impaired Financing Receivables, Total Past Due | 106 | 109 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 27 | 25 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 30 | 17 | ||
Impaired Financing Receivables, Total Past Due | 57 | 42 | ||
Credit cards | ||||
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 | 16 | 17 | ||
Impaired Financing Receivables, Total Past Due | 34 | 39 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Financing Receivables, 30 to 89 Days Past Due | 15 | 18 | ||
Impaired Financing Receivables, 90 Days or More Past Due | 5 | 4 | ||
Impaired Financing Receivables, Total Past Due | $20 | $22 | ||
[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 $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | $650 | $789 | ||
Allowance on Impaired Loans | 142 | 129 | ||
Impaired Loans Without a Related Allowance | 746 | 624 | ||
Unpaid Contractual Balance | 1,711 | 1,727 | ||
Total Recorded Investment in Impaired Loans | 1,396 | 1,413 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 117 | 131 | ||
Allowance on Impaired Loans | 35 | 20 | ||
Impaired Loans Without a Related Allowance | 77 | 74 | ||
Unpaid Contractual Balance | 227 | 240 | ||
Total Recorded Investment in Impaired Loans | 194 | 205 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 97 | 124 | ||
Allowance on Impaired Loans | 30 | 19 | ||
Impaired Loans Without a Related Allowance | 41 | 36 | ||
Unpaid Contractual Balance | 163 | 178 | ||
Total Recorded Investment in Impaired Loans | 138 | 160 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 20 | 7 | ||
Allowance on Impaired Loans | 5 | 1 | ||
Impaired Loans Without a Related Allowance | 36 | 38 | ||
Unpaid Contractual Balance | 64 | 62 | ||
Total Recorded Investment in Impaired Loans | 56 | 45 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 533 | 658 | ||
Allowance on Impaired Loans | 107 | 109 | ||
Impaired Loans Without a Related Allowance | 669 | 550 | ||
Unpaid Contractual Balance | 1,484 | 1,487 | ||
Total Recorded Investment in Impaired Loans | 1,202 | 1,208 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 129 | 157 | ||
Allowance on Impaired Loans | 17 | 18 | ||
Impaired Loans Without a Related Allowance | 316 | 288 | ||
Unpaid Contractual Balance | 605 | 605 | ||
Total Recorded Investment in Impaired Loans | 445 | 445 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 100 | 129 | ||
Allowance on Impaired Loans | 11 | 11 | ||
Impaired Loans Without a Related Allowance | 173 | 141 | ||
Unpaid Contractual Balance | 337 | 335 | ||
Total Recorded Investment in Impaired Loans | 273 | 270 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 27 | 75 | ||
Allowance on Impaired Loans | 2 | 3 | ||
Impaired Loans Without a Related Allowance | 130 | 86 | ||
Unpaid Contractual Balance | 191 | 193 | ||
Total Recorded Investment in Impaired Loans | 157 | 161 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 59 | [1] | 75 | [1] |
Allowance on Impaired Loans | 9 | [1] | 9 | [1] |
Impaired Loans Without a Related Allowance | 29 | [1] | 16 | [1] |
Unpaid Contractual Balance | 100 | [1] | 102 | [1] |
Total Recorded Investment in Impaired Loans | 88 | [1] | 91 | [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] | 4 | [1] |
Allowance on Impaired Loans | 1 | [1] | 1 | [1] |
Impaired Loans Without a Related Allowance | 7 | [1] | 7 | [1] |
Unpaid Contractual Balance | 14 | [1] | 14 | [1] |
Total Recorded Investment in Impaired Loans | 11 | [1] | 11 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 2 | 2 | ||
Allowance on Impaired Loans | 0 | 1 | ||
Impaired Loans Without a Related Allowance | 10 | 9 | ||
Unpaid Contractual Balance | 18 | 16 | ||
Total Recorded Investment in Impaired Loans | 12 | 11 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 165 | 167 | ||
Allowance on Impaired Loans | 49 | 48 | ||
Impaired Loans Without a Related Allowance | 1 | 0 | ||
Unpaid Contractual Balance | 166 | 167 | ||
Total Recorded Investment in Impaired Loans | 166 | 167 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 31 | 32 | ||
Allowance on Impaired Loans | 13 | 13 | ||
Impaired Loans Without a Related Allowance | 0 | 0 | ||
Unpaid Contractual Balance | 31 | 32 | ||
Total Recorded Investment in Impaired Loans | 31 | 32 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Impaired Loans With a Related Allowance | 16 | 17 | ||
Allowance on Impaired Loans | 5 | 5 | ||
Impaired Loans Without a Related Allowance | 3 | 3 | ||
Unpaid Contractual Balance | 22 | 23 | ||
Total Recorded Investment in Impaired Loans | $19 | $20 | ||
[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 $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | $12 | $11 | ||
Average Recorded Investment | 1,381 | 1,409 | ||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | ||
Average Recorded Investment | 193 | 219 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 0 | ||
Average Recorded Investment | 142 | 102 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 1 | ||
Average Recorded Investment | 51 | 117 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 11 | 10 | ||
Average Recorded Investment | 1,188 | 1,190 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 4 | 3 | ||
Average Recorded Investment | 441 | 442 | ||
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | ||
Average Recorded Investment | 268 | 248 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | ||
Average Recorded Investment | 156 | 159 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | [1] | 1 | [1] |
Average Recorded Investment | 88 | [1] | 101 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | [1] | 0 | [1] |
Average Recorded Investment | 11 | [1] | 11 | [1] |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | ||
Average Recorded Investment | 11 | 9 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | ||
Average Recorded Investment | 164 | 158 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | ||
Average Recorded Investment | 30 | 39 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | ||
Average Recorded Investment | $19 | $23 | ||
[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 $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | $0 | ($2) | ||
Charge-offs Resulting from Modification | 3 | 3 | ||
Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 702 | [1] | 699 | [1] |
Pre-Modification Outstanding Recorded Investment | 13 | [1] | 13 | [1] |
Post-Modification Outstanding Recorded Investment | 13 | [1] | 13 | [1] |
Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 79 | [2] | 153 | [2] |
Pre-Modification Outstanding Recorded Investment | 17 | [2] | 10 | [2] |
Post-Modification Outstanding Recorded Investment | 17 | [2] | 9 | [2] |
Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1,140 | [3] | 1,094 | [3] |
Pre-Modification Outstanding Recorded Investment | 45 | [3] | 48 | [3] |
Post-Modification Outstanding Recorded Investment | 42 | [3] | 45 | [3] |
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | -1 | -1 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Commercial Banking | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 7 | [1] | 8 | [1] |
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 1 | [1] |
Post-Modification Outstanding Recorded Investment | 1 | [1] | 1 | [1] |
Commercial Banking | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 28 | [2] | 13 | [2] |
Pre-Modification Outstanding Recorded Investment | 10 | [2] | 1 | [2] |
Post-Modification Outstanding Recorded Investment | 10 | [2] | 1 | [2] |
Commercial Banking | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 2 | [3] | 1 | [3] |
Pre-Modification Outstanding Recorded Investment | 6 | [3] | 0 | [3] |
Post-Modification Outstanding Recorded Investment | 6 | [3] | 0 | [3] |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | -1 | -1 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Commercial | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 6 | [1] | 7 | [1] |
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 1 | [1] |
Post-Modification Outstanding Recorded Investment | 1 | [1] | 1 | [1] |
Commercial | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 28 | [2] | 13 | [2] |
Pre-Modification Outstanding Recorded Investment | 10 | [2] | 1 | [2] |
Post-Modification Outstanding Recorded Investment | 10 | [2] | 1 | [2] |
Commercial | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | [3] | 1 | [3] |
Pre-Modification Outstanding Recorded Investment | 2 | [3] | 0 | [3] |
Post-Modification Outstanding Recorded Investment | 2 | [3] | 0 | [3] |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | |||
Charge-offs Resulting from Modification | 0 | |||
Commercial real estate | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | [1] | 1 | [1] |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] |
Commercial real estate | 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] |
Commercial real estate | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | [3] | ||
Pre-Modification Outstanding Recorded Investment | 4 | [3] | ||
Post-Modification Outstanding Recorded Investment | 4 | [3] | ||
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 1 | -1 | ||
Charge-offs Resulting from Modification | 3 | 3 | ||
Retail | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 695 | [1] | 691 | [1] |
Pre-Modification Outstanding Recorded Investment | 12 | [1] | 12 | [1] |
Post-Modification Outstanding Recorded Investment | 12 | [1] | 12 | [1] |
Retail | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 51 | [2] | 140 | [2] |
Pre-Modification Outstanding Recorded Investment | 7 | [2] | 9 | [2] |
Post-Modification Outstanding Recorded Investment | 7 | [2] | 8 | [2] |
Retail | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1,138 | [3] | 1,093 | [3] |
Pre-Modification Outstanding Recorded Investment | 39 | [3] | 48 | [3] |
Post-Modification Outstanding Recorded Investment | 36 | [3] | 45 | [3] |
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | -1 | -1 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Residential mortgages | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 33 | [1] | 42 | [1] |
Pre-Modification Outstanding Recorded Investment | 6 | [1] | 6 | [1] |
Post-Modification Outstanding Recorded Investment | 6 | [1] | 6 | [1] |
Residential mortgages | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 10 | [2] | 12 | [2] |
Pre-Modification Outstanding Recorded Investment | 2 | [2] | 2 | [2] |
Post-Modification Outstanding Recorded Investment | 2 | [2] | 1 | [2] |
Residential mortgages | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 64 | [3] | 132 | [3] |
Pre-Modification Outstanding Recorded Investment | 6 | [3] | 15 | [3] |
Post-Modification Outstanding Recorded Investment | 6 | [3] | 14 | [3] |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Home equity loans | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 21 | [1] | 31 | [1] |
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 2 | [1] |
Post-Modification Outstanding Recorded Investment | 1 | [1] | 2 | [1] |
Home equity loans | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 37 | [2] | 58 | [2] |
Pre-Modification Outstanding Recorded Investment | 5 | [2] | 3 | [2] |
Post-Modification Outstanding Recorded Investment | 5 | [2] | 3 | [2] |
Home equity loans | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 197 | [3] | 210 | [3] |
Pre-Modification Outstanding Recorded Investment | 10 | [3] | 14 | [3] |
Post-Modification Outstanding Recorded Investment | 10 | [3] | 14 | [3] |
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | ||
Charge-offs Resulting from Modification | 1 | 2 | ||
Home equity lines of credit | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 0 | [1] | 1 | [1] |
Pre-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] |
Post-Modification Outstanding Recorded Investment | 0 | [1] | 0 | [1] |
Home equity lines of credit | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 3 | [2] | 70 | [2] |
Pre-Modification Outstanding Recorded Investment | 0 | [2] | 4 | [2] |
Post-Modification Outstanding Recorded Investment | 0 | [2] | 4 | [2] |
Home equity lines of credit | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 135 | [3] | 81 | [3] |
Pre-Modification Outstanding Recorded Investment | 8 | [3] | 6 | [3] |
Post-Modification Outstanding Recorded Investment | 7 | [3] | 5 | [3] |
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | [4] | 0 | [4] |
Charge-offs Resulting from Modification | 1 | [4] | 0 | [4] |
Home equity loans serviced by others | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 17 | [1],[4] | 14 | [1],[4] |
Pre-Modification Outstanding Recorded Investment | 1 | [1],[4] | 1 | [1],[4] |
Post-Modification Outstanding Recorded Investment | 1 | [1],[4] | 1 | [1],[4] |
Home equity loans serviced by others | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 0 | [2],[4] | 0 | [2],[4] |
Pre-Modification Outstanding Recorded Investment | 0 | [2],[4] | 0 | [2],[4] |
Post-Modification Outstanding Recorded Investment | 0 | [2],[4] | 0 | [2],[4] |
Home equity loans serviced by others | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 46 | [3],[4] | 46 | [3],[4] |
Pre-Modification Outstanding Recorded Investment | 2 | [3],[4] | 3 | [3],[4] |
Post-Modification Outstanding Recorded Investment | 2 | [3],[4] | 2 | [3],[4] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | [4] | 0 | [4] |
Charge-offs Resulting from Modification | 0 | [4] | 0 | [4] |
Home equity lines of credit serviced by others | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 2 | [1],[4] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [1],[4] | ||
Post-Modification Outstanding Recorded Investment | 0 | [1],[4] | ||
Home equity lines of credit serviced by others | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 0 | [2],[4] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [2],[4] | ||
Post-Modification Outstanding Recorded Investment | 0 | [2],[4] | ||
Home equity lines of credit serviced by others | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 7 | [3],[4] | 13 | [3],[4] |
Pre-Modification Outstanding Recorded Investment | 0 | [3],[4] | 0 | [3],[4] |
Post-Modification Outstanding Recorded Investment | 0 | [3],[4] | 0 | [3],[4] |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | ||
Charge-offs Resulting from Modification | 1 | 1 | ||
Automobile | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 20 | [1] | 22 | [1] |
Pre-Modification Outstanding Recorded Investment | 1 | [1] | 0 | [1] |
Post-Modification Outstanding Recorded Investment | 1 | [1] | 0 | [1] |
Automobile | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | [2] | 0 | [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 | 297 | [3] | 145 | [3] |
Pre-Modification Outstanding Recorded Investment | 5 | [3] | 2 | [3] |
Post-Modification Outstanding Recorded Investment | 4 | [3] | 2 | [3] |
Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 2 | 0 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Student | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 381 | [3] | 457 | [3] |
Pre-Modification Outstanding Recorded Investment | 8 | [3] | 8 | [3] |
Post-Modification Outstanding Recorded Investment | 7 | [3] | 8 | [3] |
Credit cards | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 604 | [1] | 577 | [1] |
Pre-Modification Outstanding Recorded Investment | 3 | [1] | 3 | [1] |
Post-Modification Outstanding Recorded Investment | 3 | [1] | 3 | [1] |
Credit cards | 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 | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | ||
Charge-offs Resulting from Modification | 0 | 0 | ||
Other retail | Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 2 | [1] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [1] | ||
Post-Modification Outstanding Recorded Investment | 0 | [1] | ||
Other retail | Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 0 | [2] | ||
Pre-Modification Outstanding Recorded Investment | 0 | [2] | ||
Post-Modification Outstanding Recorded Investment | 0 | [2] | ||
Other retail | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 11 | [3] | 9 | [3] |
Pre-Modification Outstanding Recorded Investment | 0 | [3] | 0 | [3] |
Post-Modification Outstanding Recorded Investment | $0 | [3] | $0 | [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] | 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 $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
contract | contract | |||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 355 | 552 | ||
Balance Defaulted | $15 | $19 | ||
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 6 | 12 | ||
Balance Defaulted | 0 | 2 | ||
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 6 | 11 | ||
Balance Defaulted | 0 | 1 | ||
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 0 | 1 | ||
Balance Defaulted | 0 | 1 | ||
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 349 | 540 | ||
Balance Defaulted | 15 | 17 | ||
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 49 | 40 | ||
Balance Defaulted | 7 | 4 | ||
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 51 | 84 | ||
Balance Defaulted | 3 | 6 | ||
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 40 | 90 | ||
Balance Defaulted | 2 | 4 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 16 | [1] | 16 | [1] |
Balance Defaulted | 0 | [1] | 0 | [1] |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 1 | [1] | 9 | [1] |
Balance Defaulted | 0 | [1] | 0 | [1] |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 23 | 32 | ||
Balance Defaulted | 0 | 0 | ||
Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 65 | 97 | ||
Balance Defaulted | 2 | 2 | ||
Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 102 | 166 | ||
Balance Defaulted | 1 | 1 | ||
Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | 2 | 6 | ||
Balance Defaulted | $0 | $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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $3,168 | $3,541 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 697 | 773 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,429 | 1,743 |
High loan-to-value | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,042 | 1,025 |
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 | 937 | 894 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 937 | 894 |
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 | 87 | 98 |
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 | 87 | 98 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 21 | 24 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 21 | 24 |
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 | 4,213 | 4,557 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | 1,655 | 1,691 |
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 | 1,429 | 1,743 |
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 | 1,042 | 1,025 |
Credit Risk, Loan Products with Increased Credit Exposure [Member] | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Investment in loan balance | $87 | $98 |
VARIABLE_INTEREST_ENTITIES_Nar
VARIABLE INTEREST ENTITIES - Narrative (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Variable Interest Entity [Line Items] | |
Investment in Low Income Housing Tax Credit Partnerships | $469 |
Gross Investment in Low Income Housing Tax Credit Partnerships | 481 |
Accumulated Amortization Qualified Affordable Housing Project Investments | 12 |
Qualified Affordable Housing Project Investments, Commitment | 319 |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 12 |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 11 |
LIHTC Investments | |
Variable Interest Entity [Line Items] | |
Other Tax Expense (Benefit) | $4 |
GOODWILL_Narrative_Details
GOODWILL -Narrative (Details) (USD $) | 207 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
business | ||
Goodwill [Line Items] | ||
Number of acquisitions of banks or assets of banks | 25 | |
Consumer Banking | ||
Goodwill [Line Items] | ||
Goodwill accumulated impairment loss | 5,900 | $5,900 |
Commercial Banking | ||
Goodwill [Line Items] | ||
Goodwill accumulated impairment loss | 50 | $50 |
GOODWILL_Goodwill_Rollforward_
GOODWILL - Goodwill Rollforward (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill [Roll Forward] | ||
Beginning balance | $6,876 | $6,876 |
Adjustments | 0 | 0 |
Ending balance | 6,876 | 6,876 |
Consumer Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,136 | 2,136 |
Adjustments | 0 | 0 |
Ending balance | 2,136 | 2,136 |
Commercial Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,740 | 4,740 |
Adjustments | 0 | 0 |
Ending balance | $4,740 | $4,740 |
MORTGAGE_BANKING_Narrative_Det
MORTGAGE BANKING - Narrative (Details) (USD $) | 3 Months Ended | 75 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | $462 | $352 | |
Repurchased mortgage loans | 4 | 10 | 92 |
Mortgage servicing fees | 14 | 16 | |
Mortgage servicing rights valuation recovery | -1 | -4 | |
Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | 747 | 352 | |
Gain on sale of residential mortgages | $21 | $8 |
MORTGAGE_BANKING_Changes_Relat
MORTGAGE BANKING - Changes Related to MSRs (Details) (Residential Mortgages, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Residential Mortgages | ||
MSRs | ||
Balance as of January 1 | $184 | $208 |
Amount capitalized | 6 | 4 |
Amortization | -10 | -11 |
Carrying amount before valuation allowance | 180 | 201 |
Valuation allowance for servicing assets | ||
Balance as of January 1 | 18 | 23 |
Valuation recovery | -1 | -4 |
Balance at end of period | 17 | 19 |
Net carrying value of MSRs | $163 | $182 |
MORTGAGE_BANKING_Economic_Assu
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 5 years 0 months 6 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate (percent) | 12.80% | 12.40% |
Weighted average discount rate (percent) | 9.80% | 9.80% |
Residential Mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | 176 | 179 |
Weighted average life (in years) | 5 years 0 months 19 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate (percent) | 12.80% | 12.40% |
Weighted average discount rate (percent) | 9.80% | 9.80% |
MORTGAGE_BANKING_Economic_Assu1
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) (Residential Mortgages) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Residential Mortgages | ||
Servicing Assets at Fair Value [Line Items] | ||
Weighted average life (in years) | 4 years 8 months 12 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate (percent) | 12.20% | 12.10% |
Weighted average discount rate (percent) | 9.60% | 10.40% |
MORTGAGE_BANKING_Sensitivity_A
MORTGAGE BANKING - Sensitivity Analysis (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Minimum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 0.50% | 0.50% |
Maximum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 1.00% | 1.00% |
Prepayment rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from 50 basis points adverse change in interest rates | 6 | 9 |
Decline in fair value from 100 basis points adverse change in interest rates | 12 | 15 |
Weighted average discount rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from 50 basis points adverse change | 3 | 3 |
Decline in fair value from 100 basis points adverse change | 6 | 6 |
BORROWED_FUNDS_Narrative_Detai
BORROWED FUNDS - Narrative (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $11,425,000,000 | $10,529,000,000 |
Federal Home Loan Bank Advances and Letters of Credit [Member] | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 11,300,000,000 | 11,300,000,000 |
Federal Home Loan advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 3,900,000,000 | 3,500,000,000 |
Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $25,900,000,000 |
BORROWED_FUNDS_Short_Term_Debt
BORROWED FUNDS - Short Term Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $11,425 | $10,529 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 0 | 574 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 4,421 | 3,702 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $7,004 | $6,253 |
BORROWED_FUNDS_Short_Term_Borr
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Federal funds purchased and securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate at period end | 0.22% | 0.14% |
Maximum amount outstanding at month-end during the period | $5,375 | $7,022 |
Average amount outstanding during the period | 4,607 | 5,699 |
Weighted-average interest rate during the period | 0.18% | 0.12% |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate at period end | 0.26% | 0.26% |
Maximum amount outstanding at month-end during the period | 7,004 | 7,702 |
Average amount outstanding during the period | $6,969 | $5,640 |
Weighted-average interest rate during the period | 0.26% | 0.25% |
BORROWED_FUNDS_Long_Term_Debt_
BORROWED FUNDS - Long Term Debt (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $3,904 | $4,642 | ||
Derivative | 1,006 | 790 | ||
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 | 28-Sep-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] | 333 | [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] | 333 | [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] | 334 | [1] |
Interest rate | 4.08% | [1] | ||
Maturity date | 31-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 | 5 | |||
Senior Unsecured Notes | Banking Subsidiaries | 1.600% senior unsecured notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 750 | [2] | 750 | [2] |
Interest rate | 1.60% | [2] | ||
Maturity date | 4-Dec-17 | [2] | ||
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 755 | [2],[3] | 746 | [2],[3] |
Interest rate | 2.45% | [2] | ||
Maturity date | 4-Dec-19 | [2] | ||
Federal Home Loan advances | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 20 | 772 | ||
Maturity date | 1-Jan-33 | |||
Other | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $29 | $24 | ||
[1] | Intercompany borrowed funds with RBS. See Note 14 “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 $5 million hedge of interest rate risk on medium term debt using interest rate swaps. See Note 12 “Derivatives†for further information. |
BORROWED_FUNDS_Maturities_of_L
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 or on demand | $0 | |
2016 | 3 | |
2017 | 761 | |
2018 | 10 | |
2019 | 756 | |
2020 and thereafter | 2,374 | |
Total | $3,904 | $4,642 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Apr. 06, 2015 | Apr. 07, 2015 | Dec. 31, 2014 |
Preferred Stock | ||||
Number of shares of preferred stock authorized | 100,000,000 | 100,000,000 | ||
Preferred stock par value (in Dollars per Share) | $25 | $25 | ||
Treasury Stock | ||||
Shares repurchased (in shares) | 804,507 | |||
Cost of stock repurchase | $21 | |||
Shares repurchased, price per share (in dollars per share) | $25.38 | |||
Subsequent Event | ||||
Preferred Stock | ||||
Preferred stock par value (in Dollars per Share) | $25 | |||
Preferred Stock, Value, Subscriptions | 250 | |||
Preferred Stock, Shares Issued | 250,000 | |||
Preferred stock, dividend rate, percentage | 5.50% | |||
Preferred stock redemption price (in Dollars per Share) | $1,000 | |||
Subsequent Event | Noncumulative Preferred Stock | LIBOR | ||||
Preferred Stock | ||||
Preferred stock, dividend payment rate, basis spread on variable rate, beginning after April 6, 2020 | 3.96% | |||
RBSG | Subsequent Event | ||||
Treasury Stock | ||||
Shares repurchased (in shares) | 10,473,397 | |||
Cost of stock repurchase | $250 | |||
Shares repurchased, price per share (in dollars per share) | $23.87 | |||
Ownership Percentage by RBS Group | 40.80% |
EMPLOYEE_BENEFITS_Narrative_De
EMPLOYEE BENEFITS - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Feb. 20, 2015 | Dec. 31, 2014 | Sep. 01, 2014 | Sep. 30, 2014 | Mar. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contributions | $100 | ||||
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 | ||||
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Assets transferred to Affiliate plans | 129 | 129 | |||
Liabilities transferred to Affiliate plans | 148 | 148 | |||
Non-Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Liabilities transferred to Affiliate plans | 7 | 7 | |||
Postretirement Benefit Plan | Affiliates | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Liabilities transferred to Affiliate plans | $7 | ||||
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% |
EMPLOYEE_BENEFITS_Schedule_of_
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $1 | $1 | [1] | ||
Interest cost | 12 | 12 | [1] | ||
Expected return on plan assets | -18 | -17 | [1] | ||
Amortization of actuarial loss | 4 | 2 | [1] | ||
Net periodic pension (income) cost | -1 | -2 | [1] | ||
Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 1 | [1] | ||
Interest cost | 11 | 11 | [1] | ||
Expected return on plan assets | -18 | -17 | [1] | ||
Amortization of actuarial loss | 3 | 2 | [1] | ||
Net periodic pension (income) cost | -3 | -3 | [1] | ||
Assets transferred to Affiliate plans | 129 | 129 | |||
Liabilities transferred to Affiliate plans | 148 | 148 | |||
Non-Qualified Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | [1] | ||
Interest cost | 1 | 1 | [1] | ||
Expected return on plan assets | 0 | 0 | [1] | ||
Amortization of actuarial loss | 1 | 0 | [1] | ||
Net periodic pension (income) cost | 2 | 1 | [1] | ||
Liabilities transferred to Affiliate plans | $7 | $7 | |||
[1] | Results for the three months ended March 31, 2014 included $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. |
INCOME_TAXES_Narrative_Details
INCOME TAXES - Narrative (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Taxes [Abstract] | |||
Income tax expense | $106 | $69 | |
Effective income tax rate | 33.70% | 29.40% | |
Federal income tax rate | 35.00% | 35.00% | |
Deferred taxes, net | $586 | $493 |
DERIVATIVES_Narrative_Details
DERIVATIVES - Narrative (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net loss on derivatives expected to be reclassified in next 12 months | $16 |
DERIVATIVES_Schedule_of_Deriva
DERIVATIVES - Schedule of Derivative Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Derivative Assets | ||||
Derivative Assets | $1,006 | $790 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -264 | [1] | -161 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 742 | [2] | 629 | [2] |
Derivative Liabilities | ||||
Derivative Liabilities | 880 | 773 | ||
Less: Gross amounts offset in the Consolidated Balance Sheets | -264 | [1] | -161 | [1] |
Total net derivative fair values presented in the Consolidated Balance Sheets | 616 | [2] | 612 | [2] |
Derivatives not designated as hedging instruments: | ||||
Derivative Assets | ||||
Derivative Assets | 917 | 766 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 825 | 674 | ||
Interest rate swaps | Derivatives designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 7,500 | [3] | 5,750 | [3] |
Derivative Assets | ||||
Derivative Assets | 89 | 24 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 55 | 99 | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 32,632 | [3] | 31,848 | [3] |
Derivative Assets | ||||
Derivative Assets | 655 | 589 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 569 | 501 | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 8,046 | [3] | 8,359 | [3] |
Derivative Assets | ||||
Derivative Assets | 253 | 170 | ||
Derivative Liabilities | ||||
Derivative Liabilities | 247 | 164 | ||
Other contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 1,144 | [3] | 730 | [3] |
Derivative Assets | ||||
Derivative Assets | 9 | 7 | ||
Derivative Liabilities | ||||
Derivative Liabilities | $9 | $9 | ||
[1] | Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | |||
[2] | The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities†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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative | $4 | $8 |
Hedge of interest rate risk | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative | 9 | |
Hedged Item | -9 | |
Hedge Ineffectiveness | $0 |
DERIVATIVES_Effect_of_Derivati
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest income | $159 | $149 | ||
Amounts reclassified from OCI to interest expense | -106 | -85 | ||
Amount Reclassified from AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of gain (loss) recognized in OCI | 104 | [1] | -92 | [1] |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest income | 18 | [2] | 18 | [2] |
Amounts reclassified from OCI to interest expense | -15 | [2] | -29 | [2] |
Ineffective portion of gain recognized in other income | $1 | [3] | $0 | [3] |
[1] | The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | |||
[2] | This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | |||
[3] | This amount represents 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 $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $4 | $8 | ||
Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 9 | |||
Customer derivative contracts | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 73 | [1] | 61 | [1] |
Customer derivative contracts | Other Income | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | -35 | [1] | 4 | [1] |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 0 | [2] | 3 | [2] |
Economic hedges | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | -68 | [1] | -53 | [1] |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 35 | [3] | -6 | [3] |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | ($1) | [2] | ($1) | [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 $) | 3 Months Ended | 75 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2003 |
counterparty | ||||||
Risk Participation Agreements [Abstract] | ||||||
Risk participation agreements | $26 | $26 | $19 | |||
Risk participation agreements number of counterparties | 75 | |||||
Risk participation agreements, Maximum term | 10 years | |||||
Mortgage Repurchase Demands [Abstract] | ||||||
Mortgage repurchase demands received | 161 | |||||
Indemnification payment requests received | 99 | |||||
Repurchased mortgage loans | 4 | 10 | 92 | |||
Indemnification payment requests paid | 0 | 6 | 33 | |||
Payments for Repurchase of Mortgage Loans | 4 | 10 | ||||
Consent Orders | ||||||
Consumer Products [Abstract] | ||||||
Litigation settlement amount | 10 | |||||
Restitution amount payable | 8 | |||||
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 | 3 | 3 | |||
Marketing rights | ||||||
Commitments [Abstract] | ||||||
Commitment period | 25 years | |||||
Payments made | 0 | 0 | ||||
Remaining obligation due | 51 | 51 | ||||
Automobile | Minimum | ||||||
Commitments [Abstract] | ||||||
Purchase commitment, Quarterly amount, May 30, 2014 through May 30, 2015 | 250 | 250 | ||||
Purchase commitment, Quarterly amount, May 30, 2015 and after | 400 | 400 | ||||
Automobile | Maximum | ||||||
Commitments [Abstract] | ||||||
Purchase commitment, Quarterly amount, May 30, 2014 through May 30, 2015 | 600 | 600 | ||||
Purchase commitment, Quarterly amount, May 30, 2015 and after | 600 | 600 | ||||
Purchase Commitment | Commercial real estate loans held for sale | ||||||
Commitments [Abstract] | ||||||
Unsettled commercial loan trades | $55 | $55 | $40 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Commitments [Line Items] | ||
Commitment amount | $57,721 | $58,435 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 55,224 | 55,899 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,292 | 2,315 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 60 | 65 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 58 | 75 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 51 | 51 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 26 | 19 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $10 | $11 |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS - Narrative (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | |||||
Interest expense | $20 | $12 | |||
Outside services | 79 | 83 | |||
Interest rate swaps | Derivatives designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 7,500 | [1] | 5,750 | [1] | |
Interest rate swaps | Derivatives not designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 32,632 | [1] | 31,848 | [1] | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 8,046 | [1] | 8,359 | [1] | |
RBS | |||||
Related Party Transaction [Line Items] | |||||
Income from services and referrals net of rent income (expense) | 3 | 5 | |||
Outside services | 2 | 8 | |||
Dividend to parent | 39 | 25 | |||
RBS | Interest rate swaps | |||||
Related Party Transaction [Line Items] | |||||
Interest expense | 11 | ||||
Interest income | 3 | ||||
Derivative expense | 68 | 53 | |||
RBS | Interest rate swaps | Derivatives designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 7,500 | [1] | 5,800 | [1] | |
Minimum fixed interest rate | 1.66% | 1.66% | |||
Maximum fixed interest rate | 4.30% | 4.30% | |||
RBS | Interest rate swaps | Derivatives not designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 9,300 | 9,800 | |||
RBS | Interest rate swaps | Receive swap | Derivatives designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 4,000 | [1] | 4,000 | [1] | |
Minimum fixed interest rate | 1.78% | 1.78% | |||
Maximum fixed interest rate | 2.04% | 2.04% | |||
RBS | Interest rate swaps | Pay swap | Derivatives designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 2,800 | [1] | 1,000 | [1] | |
Minimum fixed interest rate | 2.03% | 4.18% | |||
Maximum fixed interest rate | 4.30% | 4.30% | |||
RBS | Interest rate swaps | Medium term swap | Derivatives designated as hedging instruments | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 750 | [1] | 750 | [1] | |
Fixed interest rate | 1.66% | 1.66% | |||
RBS | Foreign exchange contracts | |||||
Related Party Transaction [Line Items] | |||||
Notional amount | 4,500 | 4,700 | |||
Foreign exchange and trade finance revenue | 35 | ||||
Foreign exchange and trade finance expense | 6 | ||||
Executive Officers, Family Members, and Their Businesses | |||||
Related Party Transaction [Line Items] | |||||
Related party loans | $125 | $126 | |||
[1] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. For interest rate derivatives, the notional amount is typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS - Schedule of Related Party Debt Terms (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Long-term borrowed funds | $3,904 | $4,642 |
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 | 334 |
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 | 333 |
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 | 333 |
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_Narrat
FAIR VALUE MEASUREMENTS - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average life (in years) | 5 years 0 months 6 days | 5 years 2 months 12 days | |
Weighted average constant prepayment rate (percent) | 12.80% | 12.40% | |
Weighted average discount rate (percent) | 9.80% | 9.80% | |
Transfers between Levels 1, 2, or 3 | $5,000,000 | ||
Mortgage banking noninterest income (loss) | 33,000,000 | 20,000,000 | |
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 | 2 years 9 months 18 days | |
Weighted average constant prepayment rate (percent) | 11.00% | 10.40% | |
Weighted average discount rate (percent) | 9.10% | 9.10% | |
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average life (in years) | 6 years 3 months 18 days | 6 years 7 months 6 days | |
Weighted average constant prepayment rate (percent) | 22.20% | 22.60% | |
Weighted average discount rate (percent) | 12.30% | 12.10% | |
Residential loans held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage banking noninterest income (loss) | 1,000,000 | 1,000,000 | |
Commercial real estate loans held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans in this portfolio that were 90 days or more past due or nonaccruing | $0 |
FAIR_VALUE_MEASUREMENTS_Reside
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate Fair Value | $322,000,000 | $256,000,000 | |
Mortgage banking noninterest income (loss) | 33,000,000 | 20,000,000 | |
Residential loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Mortgage banking noninterest income (loss) | 1,000,000 | 1,000,000 | |
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 | 265,000,000 | 213,000,000 | |
Aggregate Unpaid Principal | 258,000,000 | 206,000,000 | |
Aggregate Fair Value Less Aggregate Unpaid Principal | 7,000,000 | 7,000,000 | |
Level 2 | Commercial real estate loans held for sale | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Aggregate Fair Value | 57,000,000 | 43,000,000 | |
Aggregate Unpaid Principal | 57,000,000 | 43,000,000 | |
Aggregate Fair Value Less Aggregate Unpaid Principal | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Securities available for sale | $19,041 | $18,656 |
Loans held for sale | 322 | 256 |
Derivative assets | 742 | 629 |
Liabilities | ||
Derivative liabilities | 616 | 612 |
Fair Value Measurement [Domain] | ||
Assets | ||
Securities available for sale | 19,041 | 18,656 |
Loans held for sale | 322 | 256 |
Derivative assets | 1,006 | 790 |
Venture capital investments and other investments | 6 | 5 |
Total assets | 20,375 | 19,707 |
Liabilities | ||
Derivative liabilities | 880 | 773 |
Total liabilities | 880 | 773 |
Fair Value Measurement [Domain] | Interest rate swaps | ||
Assets | ||
Derivative assets | 744 | 613 |
Liabilities | ||
Derivative liabilities | 624 | 600 |
Fair Value Measurement [Domain] | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 253 | 170 |
Liabilities | ||
Derivative liabilities | 247 | 164 |
Fair Value Measurement [Domain] | Other contracts | ||
Assets | ||
Derivative assets | 9 | 7 |
Liabilities | ||
Derivative liabilities | 9 | 9 |
Fair Value Measurement [Domain] | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,996 | 18,606 |
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 | 20 | 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 | 265 | 213 |
Fair Value Measurement [Domain] | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 57 | 43 |
Fair Value Measurement [Domain] | Level 1 | ||
Assets | ||
Securities available for sale | 17 | 23 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Venture capital investments and other investments | 0 | 0 |
Total assets | 17 | 23 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Other contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | State and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 1 | Equity securities | ||
Assets | ||
Securities available for sale | 2 | 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 | 0 |
Fair Value Measurement [Domain] | Level 2 | ||
Assets | ||
Securities available for sale | 19,024 | 18,633 |
Loans held for sale | 322 | 256 |
Derivative assets | 1,006 | 790 |
Venture capital investments and other investments | 5 | 0 |
Total assets | 20,357 | 19,679 |
Liabilities | ||
Derivative liabilities | 880 | 773 |
Total liabilities | 880 | 773 |
Fair Value Measurement [Domain] | Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets | 744 | 613 |
Liabilities | ||
Derivative liabilities | 624 | 600 |
Fair Value Measurement [Domain] | Level 2 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 253 | 170 |
Liabilities | ||
Derivative liabilities | 247 | 164 |
Fair Value Measurement [Domain] | Level 2 | Other contracts | ||
Assets | ||
Derivative assets | 9 | 7 |
Liabilities | ||
Derivative liabilities | 9 | 9 |
Fair Value Measurement [Domain] | Level 2 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,996 | 18,606 |
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 | 18 | 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 | 265 | 213 |
Fair Value Measurement [Domain] | Level 2 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 57 | 43 |
Fair Value Measurement [Domain] | Level 3 | ||
Assets | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Venture capital investments and other investments | 1 | 5 |
Total assets | 1 | 5 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Other contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | State and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Equity securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | U.S. Treasury | ||
Assets | ||
Securities available for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Residential loans held for sale | ||
Assets | ||
Loans held for sale | 0 | 0 |
Fair Value Measurement [Domain] | Level 3 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu1
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers from Level 3 to Level 2 | $5,000,000 | |
Recurring basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of January 1 | 5,000,000 | 5,000,000 |
Purchases | 1,000,000 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Other net gains | 0 | 1,000,000 |
Transfers from Level 3 to Level 2 | -5,000,000 | 0 |
Balance as of period end | 1,000,000 | 6,000,000 |
Net unrealized gain included in net income for the year relating to assets held at period end | $1,000,000 | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu2
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) (Nonrecurring measurement basis, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | ($3) | ($75) |
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 | -1 | -4 |
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 | ($1) | ($1) |
FAIR_VALUE_MEASUREMENTS_Schedu3
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) (Nonrecurring measurement basis, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $87 | $102 |
Mortgage Servicing Rights | 163 | 166 |
Foreclosed assets | 36 | 40 |
Level 1 | ||
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 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 87 | 102 |
Mortgage Servicing Rights | 0 | 0 |
Foreclosed assets | 36 | 40 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
Mortgage Servicing Rights | 163 | 166 |
Foreclosed assets | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Schedu4
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | $5,178 | $5,148 |
Securities held-to-maturity | 5,281 | 5,193 |
Other investment securities | 867 | 872 |
Other investment securities | 867 | 872 |
Other loans held for sale | 54 | 25 |
Other loans held for sale | 54 | 25 |
Loans and leases | 94,494 | 93,410 |
Loans and leases | 94,892 | 93,674 |
Deposits | 98,990 | 95,707 |
Deposits | 99,005 | 95,710 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Other short-term borrowed funds | 7,004 | 6,253 |
Other short-term borrowed funds | 7,004 | 6,253 |
Long-term borrowed funds | 3,904 | 4,642 |
Long-term borrowed funds | 4,006 | 4,706 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 5,178 | 5,148 |
Other investment securities | 867 | 872 |
Other loans held for sale | 54 | 25 |
Loans and leases | 94,494 | 93,410 |
Deposits | 98,990 | 95,707 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Other short-term borrowed funds | 7,004 | 6,253 |
Long-term borrowed funds | 3,904 | 4,642 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held-to-maturity | 0 | 0 |
Other investment securities | 0 | 0 |
Other loans held for sale | 0 | 0 |
Loans and leases | 0 | 0 |
Deposits | 0 | 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] | ||
Securities held to maturity | 0 | 0 |
Other investment securities | 0 | 0 |
Other loans held for sale | 0 | 0 |
Loans and leases | 0 | 0 |
Deposits | 0 | 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] | ||
Securities held-to-maturity | 5,281 | 5,193 |
Other investment securities | 867 | 872 |
Other loans held for sale | 0 | 0 |
Loans and leases | 87 | 102 |
Deposits | 99,005 | 95,710 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Other short-term borrowed funds | 7,004 | 6,253 |
Long-term borrowed funds | 4,006 | 4,706 |
Level 2 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 5,178 | 5,148 |
Other investment securities | 867 | 872 |
Other loans held for sale | 0 | 0 |
Loans and leases | 87 | 102 |
Deposits | 98,990 | 95,707 |
Federal funds purchased and securities sold under agreements to repurchase | 4,421 | 4,276 |
Other short-term borrowed funds | 7,004 | 6,253 |
Long-term borrowed funds | 3,904 | 4,642 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held-to-maturity | 0 | 0 |
Other investment securities | 0 | 0 |
Other loans held for sale | 54 | 25 |
Loans and leases | 94,805 | 93,572 |
Deposits | 0 | 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] | ||
Securities held to maturity | 0 | 0 |
Other investment securities | 0 | 0 |
Other loans held for sale | 54 | 25 |
Loans and leases | 94,407 | 93,308 |
Deposits | 0 | 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 |
REGULATORY_MATTERS_Narrative_D
REGULATORY MATTERS - Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Dividends | $55 | $25 |
CBNA | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Liquid assets | 396 | |
CBNA | Average | Subordinated Debt | ||
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | ||
Actual | $13,360 | |
Minimum Capital Adequacy | 4,940 | |
Classification as Well-capitalized | 7,136 | |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | ||
Actual | 12.20% | |
Minimum Capital Adequacy | 4.50% | |
Classification as Well-capitalized | 6.50% | |
Tier 1 Capital to Risk-Weighted Assets (Amount) | ||
Actual | 13,360 | 13,173 |
Minimum Capital Adequacy | 6,587 | 4,239 |
Classification as Well-capitalized | 8,783 | 6,358 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 12.20% | 12.40% |
Minimum Capital Adequacy | 6.00% | 4.00% |
Classification as Well-capitalized | 8.00% | 6.00% |
Total Capital to Risk-Weighted Assets (Amount) | ||
Actual | 16,969 | 16,781 |
Minimum Capital Adequacy | 8,783 | 8,477 |
Classification as Well-capitalized | 10,979 | 10,596 |
Total Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 15.50% | 15.80% |
Minimum Capital Adequacy | 8.00% | 8.00% |
Classification as Well-capitalized | 10.00% | 10.00% |
Tier 1 Common Equity to Risk-Weighted Assets | ||
Tier 1 Common Equity | 13,173 | |
Tier One Common Equity To Risk Weighted Assets | 12.40% | |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ||
Actual | 13,360 | 13,173 |
Minimum Capital Adequacy | 5,087 | 4,982 |
Classification as Well-capitalized | $6,358 | $6,227 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||
Actual | 10.50% | 10.60% |
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 $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $1 | $101 |
Restructuring Reserve, Accrual Adjustment | 2 | 10 |
Expected restructuring cost | 18 | |
Restructuring charges incurred | 3 | 124 |
Outside Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1 | 24 |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 12 | |
Restructuring charges incurred | 7 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring cost | 13 | |
Employee Severance | Salaries & Employee Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 41 | |
Restructuring Reserve, Accrual Adjustment | 2 | 1 |
Restructuring charges incurred | 0 | 43 |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring cost | 3 | |
Facility Closing | Occupancy & Equipment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2 | 18 |
Restructuring Reserve, Accrual Adjustment | 0 | 5 |
Restructuring charges incurred | 2 | 24 |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected restructuring cost | 2 | |
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 | |
Facility Closing | Outside Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges incurred | 4 | |
Software expense | Amortization of software | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $6 |
EXIT_COSTS_AND_RESTRUCTURING_R3
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $44 | $26 |
Additions | 3 | 124 |
Reversals | -2 | -10 |
Utilization | -10 | -96 |
Ending balance | 35 | 44 |
Employee Severance | Salaries & Employee Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 23 | 2 |
Additions | 0 | 43 |
Reversals | -2 | -1 |
Utilization | -3 | -21 |
Ending balance | 18 | 23 |
Facility Closing | Occupancy & Equipment | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 18 | 24 |
Additions | 2 | 24 |
Reversals | 0 | -5 |
Utilization | -3 | -25 |
Ending balance | 17 | 18 |
Other Restructuring | Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 3 | 0 |
Additions | 1 | 57 |
Reversals | 0 | -4 |
Utilization | -4 | -50 |
Ending balance | $0 | $3 |
RECLASSIFICATIONS_OUT_OF_ACCUM2
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | ($372) | ($648) |
Other comprehensive loss before reclassifications | 155 | 130 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | -19 | -19 |
Amounts reclassified from other comprehensive income | -4 | -6 |
Net other comprehensive (loss) income | 132 | 105 |
Ending balance | -240 | -543 |
Net Unrealized Gains (Losses) on Derivatives | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | -69 | -298 |
Other comprehensive loss before reclassifications | 65 | 59 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | 0 | 0 |
Amounts reclassified from other comprehensive income | -2 | 7 |
Net other comprehensive (loss) income | 63 | 66 |
Ending balance | -6 | -232 |
Net Unrealized Gains (Losses) on Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 74 | -91 |
Other comprehensive loss before reclassifications | 90 | 71 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | -19 | -19 |
Amounts reclassified from other comprehensive income | -4 | -14 |
Net other comprehensive (loss) income | 67 | 38 |
Ending balance | 141 | -53 |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | -377 | -259 |
Other comprehensive loss before reclassifications | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes | 0 | 0 |
Amounts reclassified from other comprehensive income | 2 | 1 |
Net other comprehensive (loss) income | 2 | 1 |
Ending balance | ($375) | ($258) |
RECLASSIFICATIONS_OUT_OF_ACCUM3
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | $159 | $149 | ||
Interest expense | -106 | -85 | ||
Net impairment losses recognized in earnings | -1 | -4 | ||
Salaries and employee benefits | 419 | 405 | ||
Income before income tax expense | 315 | 235 | ||
Income tax expense | 106 | 69 | ||
NET INCOME | 209 | 166 | ||
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 3 | 2 | ||
NET INCOME | 4 | 6 | ||
Reclassification adjustment for net derivative gains (losses) included in net income (loss): | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | 18 | [1] | 18 | [1] |
Interest expense | -15 | [1] | -29 | [1] |
Other income | 0 | 0 | ||
Income before income tax expense | 3 | -11 | ||
Income tax expense | 1 | -4 | ||
NET INCOME | 2 | -7 | ||
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 | 8 | 25 | ||
Net impairment losses recognized in earnings | -1 | -4 | ||
Income before income tax expense | 7 | 21 | ||
Income tax expense | 3 | 7 | ||
NET INCOME | 4 | 14 | ||
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 | -3 | -2 | ||
Income before income tax expense | -3 | -2 | ||
Income tax expense | -1 | -1 | ||
NET INCOME | ($2) | ($1) | ||
[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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net interest income | $836 | $808 |
Provision for credit losses | 58 | 121 |
Noninterest income | 347 | 358 |
Noninterest expense | 810 | 810 |
Income before income tax expense | 315 | 235 |
Income tax expense | 106 | 69 |
NET INCOME | 209 | 166 |
Amount Reclassified from OCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net interest income | 836 | 808 |
Provision for credit losses | 58 | 121 |
Noninterest income | 347 | 358 |
Noninterest expense | 810 | 810 |
Income before income tax expense | 315 | 235 |
Income tax expense | 106 | 69 |
NET INCOME | 209 | 166 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net interest income | 3 | -11 |
Noninterest income | 7 | 21 |
Noninterest expense | 3 | 2 |
Income tax expense | 3 | 2 |
NET INCOME | $4 | $6 |
BUSINESS_SEGMENTS_Narrative_De
BUSINESS SEGMENTS - Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting Information [Line Items] | ||
Number of segments | 2 | |
Revenues | $1,183 | $1,166 |
Consumer Banking | ||
Segment Reporting Information [Line Items] | ||
Revenues | 752 | 756 |
Consumer Banking | Maximum | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25 | |
Commercial Banking | ||
Segment Reporting Information [Line Items] | ||
Revenues | 376 | 363 |
Commercial Banking | Minimum | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25 | |
Commercial Banking | Maximum | ||
Segment Reporting Information [Line Items] | ||
Revenues | $2,500 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net interest income | $836 | $808 |
Noninterest income | 347 | 358 |
Total revenue | 1,183 | 1,166 |
Noninterest expense | 810 | 810 |
Profit (loss) before provision for credit losses | 373 | 356 |
Provision for credit losses | 58 | 121 |
Income before income tax expense | 315 | 235 |
Income tax expense | 106 | 69 |
NET INCOME | 209 | 166 |
Total Average Assets | 133,325 | 123,904 |
Consumer Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 533 | 537 |
Noninterest income | 219 | 219 |
Total revenue | 752 | 756 |
Noninterest expense | 596 | 638 |
Profit (loss) before provision for credit losses | 156 | 118 |
Provision for credit losses | 63 | 70 |
Income before income tax expense | 93 | 48 |
Income tax expense | 32 | 16 |
NET INCOME | 61 | 32 |
Total Average Assets | 51,602 | 47,610 |
Commercial Banking | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 276 | 256 |
Noninterest income | 100 | 107 |
Total revenue | 376 | 363 |
Noninterest expense | 173 | 153 |
Profit (loss) before provision for credit losses | 203 | 210 |
Provision for credit losses | -21 | -5 |
Income before income tax expense | 224 | 215 |
Income tax expense | 77 | 74 |
NET INCOME | 147 | 141 |
Total Average Assets | 41,606 | 36,955 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 27 | 15 |
Noninterest income | 28 | 32 |
Total revenue | 55 | 47 |
Noninterest expense | 41 | 19 |
Profit (loss) before provision for credit losses | 14 | 28 |
Provision for credit losses | 16 | 56 |
Income before income tax expense | -2 | -28 |
Income tax expense | -3 | -21 |
NET INCOME | 1 | -7 |
Total Average Assets | $40,117 | $39,339 |
SHAREBASED_COMPENSATION_Narrat
SHARE-BASED COMPENSATION - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 970,166 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value | $24,000,000 | |||
Total unvested share awards | 3,399,285 | |||
Number of shares available for grant | 61,000,000 | |||
Compensation expense related to share-based plans | 6,000,000 | 19,000,000 | ||
Share-based compensation not yet recognized | 30,000,000 | |||
Time-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RBSG | Special IPO Awards | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares converted | 19,390,752 | |||
Citizens | Special IPO Awards | Restricted Stock Units (RSUs) [Member] | ||||
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% | |||
Following IPO | Employee Stock Purchase Plan | Common Stock | ||||
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 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator (basic and diluted): | ||
Net income | $209 | $166 |
Less: Preferred stock dividends | 0 | 0 |
Net income available to common stockholders | $209 | $166 |
Denominator: | ||
Weighted-average common shares outstanding - basic (in Shares) | 546,291,363 | 559,998,324 |
Dilutive common shares (in Shares) | 3,507,354 | 0 |
Weighted-average common shares outstanding - diluted (in Shares) | 549,798,717 | 559,998,324 |
Earnings per common share: | ||
Basic (in Dollars per Share) | $0.38 | $0.30 |
Diluted (in Dollars per Share) | $0.38 | $0.30 |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE - Narrative (Details) | 0 Months Ended |
Aug. 22, 2014 | |
Earnings Per Share [Abstract] | |
Stock split | 165,582 |
OTHER_OPERATING_EXPENSE_Detail
OTHER OPERATING EXPENSE (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Deposit insurance | $34 | $20 |
Promotional expense | 22 | 20 |
Settlements and operating losses | 8 | 29 |
Postage and delivery | 12 | 13 |
Other | 57 | 64 |
Other operating expense | $133 | $146 |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS - Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 22, 2015 | Apr. 06, 2015 | Apr. 07, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||
Preferred Stock, Par Value (in Dollars per Share) | $25 | $25 | ||||
Shares repurchased (in shares) | 804,507 | |||||
Cost of stock repurchase | $21 | |||||
Shares repurchased, price per share (in dollars per share) | $25.38 | |||||
Dividends paid (in dollars per share) | $0.10 | $0.04 | ||||
Dividends paid to common stockholders | 16 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Preferred Stock, Value, Subscriptions | 250 | |||||
Preferred Stock, Shares Issued | 250,000 | |||||
Preferred stock, dividend rate, percentage | 5.50% | |||||
Preferred Stock, Par Value (in Dollars per Share) | $25 | |||||
Preferred stock redemption price (in Dollars per Share) | $1,000 | |||||
Dividends paid (in dollars per share) | $0.10 | |||||
Dividends paid to common stockholders | 55 | |||||
Subsequent Event | RBSG | ||||||
Subsequent Event [Line Items] | ||||||
Shares repurchased (in shares) | 10,473,397 | |||||
Cost of stock repurchase | $250 | |||||
Shares repurchased, price per share (in dollars per share) | $23.87 | |||||
Ownership Percentage by RBS Group | 40.80% | |||||
Subsequent Event | Noncumulative Preferred Stock | LIBOR | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, dividend payment rate, basis spread on variable rate, beginning after April 6, 2020 | 3.96% |