Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 759,944 | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CFG | |
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 527,636,669 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Cash and due from banks | $ 1,067 | $ 1,171 |
Interest-bearing cash and due from banks | 689 | 2,105 |
Interest-bearing deposits in banks | 363 | 370 |
Securities available for sale, at fair value | 18,197 | 18,656 |
Securities held to maturity (fair value of $5,386 and $5,193, respectively) | 5,285 | 5,148 |
Other investment securities, at fair value | 50 | 33 |
Other investment securities, at cost | 822 | 867 |
Loans held for sale, at fair value | 369 | 256 |
Other loans held for sale | 51 | 25 |
Loans and leases | 97,431 | 93,410 |
Less: Allowance for loan and lease losses | 1,201 | 1,195 |
Net loans and leases | 96,230 | 92,215 |
Derivative assets (related party balances of $105 and $1, respectively) | 838 | 629 |
Premises and equipment, net | 560 | 595 |
Bank-owned life insurance | 1,553 | 1,527 |
Goodwill | 6,876 | 6,876 |
Other assets (related party balances of $2 and $7, respectively) | 2,497 | 2,384 |
TOTAL ASSETS | 135,447 | 132,857 |
LIABILITIES: | ||
Noninterest-bearing | 27,373 | 26,086 |
Interest-bearing (related party balances of $5 and $5, respectively) | 74,493 | 69,621 |
Total deposits | 101,866 | 95,707 |
Federal funds purchased and securities sold under agreements to repurchase | 1,293 | 4,276 |
Other short-term borrowed funds | 5,861 | 6,253 |
Derivative liabilities (related party balances of $275 and $387, respectively) | 641 | 612 |
Deferred taxes, net | 637 | 493 |
Long-term borrowed funds (related party balances of $2,000 and $2,000, respectively) | 4,153 | 4,642 |
Other liabilities (related party balances of $30 and $30, respectively) | 1,396 | 1,606 |
TOTAL LIABILITIES | $ 115,847 | $ 113,589 |
Contingencies (refer to Note 13) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $25.00 par value, authorized 100,000,000 shares: Series A, non-cumulative perpetual, $25.00 par value (liquidation preference $1,000), 250,000 shares authorized and issued net of issuance costs and related premium at September 30, 2015, and no shares outstanding at December 31, 2014 | $ 247 | $ 0 |
Common stock: $0.01 par value, 1,000,000,000 shares authorized, 562,941,263 shares issued and 527,636,510 shares outstanding at September 30, 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 | 18,718 | 18,676 |
Retained earnings | 1,745 | 1,294 |
Treasury Stock, at cost, 35,304,753 and 14,378,119 shares at September 30, 2015 and December 31, 2014, respectively | (857) | (336) |
Accumulated other comprehensive loss | (259) | (372) |
TOTAL STOCKHOLDERS’ EQUITY | 19,600 | 19,268 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 135,447 | $ 132,857 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Securities held-to-maturity, Fair Value | $ 5,386 | $ 5,193 |
Derivative assets | 838 | 629 |
Other assets | 2,497 | 2,384 |
LIABILITIES: | ||
Interest-bearing | 74,493 | 69,621 |
Derivative liabilities | 641 | 612 |
Long-term borrowed funds | 4,153 | 4,642 |
Other liabilities | $ 1,396 | $ 1,606 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | |
Preferred stock, outstanding (in shares) | 250,000 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 562,941,263 | 560,262,638 |
Common stock, outstanding (in shares) | 527,636,510 | 545,884,519 |
Treasury stock (in shares) | 35,304,753 | 14,378,119 |
Related Party | ||
ASSETS: | ||
Derivative assets | $ 105 | $ 1 |
Other assets | 2 | 7 |
LIABILITIES: | ||
Interest-bearing | 5 | 5 |
Derivative liabilities | 275 | 387 |
Long-term borrowed funds | 2,000 | 2,000 |
Other liabilities | $ 30 | $ 30 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 0 |
Preferred stock, authorized (in shares) | 250,000 | 0 |
Preferred stock, issued (in shares) | 250,000 | 0 |
Preferred stock, outstanding (in shares) | 250,000 | 0 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases (related party balances of $17, $18, $53 and $54, respectively) | $ 812 | $ 754 | $ 2,381 | $ 2,235 |
Interest and fees on loans held for sale, at fair value | 3 | 2 | 8 | 4 |
Interest and fees on other loans held for sale | 3 | 0 | 7 | 22 |
Investment securities | 154 | 155 | 468 | 458 |
Interest-bearing deposits in banks | 2 | 2 | 4 | 4 |
Total interest income | 974 | 913 | 2,868 | 2,723 |
INTEREST EXPENSE: | ||||
Deposits | 65 | 41 | 177 | 108 |
Deposits held for sale | 0 | 0 | 0 | 4 |
Federal funds purchased and securities sold under agreements to repurchase (related party balances of $1, $3, $6 and $16, respectively) | 4 | 9 | 13 | 25 |
Other short-term borrowed funds (related party balances of $13, $16, $38 and $60, respectively) | 17 | 21 | 51 | 70 |
Long-term borrowed funds (related party balances of $19, $17, $59 and $42, respectively) | 32 | 22 | 95 | 55 |
Total interest expense | 118 | 93 | 336 | 262 |
Net interest income | 856 | 820 | 2,532 | 2,461 |
Provision for credit losses | 76 | 77 | 211 | 247 |
Net interest income after provision for credit losses | 780 | 743 | 2,321 | 2,214 |
NONINTEREST INCOME: | ||||
Service charges and fees (related party balances of $0, $1, $2 and $4, respectively) | 145 | 144 | 419 | 430 |
Card fees | 60 | 58 | 172 | 175 |
Trust and investment services fees | 41 | 39 | 118 | 120 |
Mortgage banking fees | 18 | 21 | 81 | 55 |
Capital markets fees (related party balances of $2, $4, $8 and $9, respectively) | 21 | 22 | 73 | 66 |
Foreign exchange and trade finance fees (related party balances of $5, $59, $21 and $52, respectively) | 22 | 26 | 67 | 70 |
Bank-owned life insurance income | 14 | 13 | 40 | 36 |
Securities gains, net | 2 | 2 | 19 | 27 |
Net impairment losses recognized in earnings | (2) | (1) | (5) | (7) |
Other income (related party balances of ($75), $5, ($125) and ($130), respectively) | 32 | 17 | 76 | 367 |
Total noninterest income | 353 | 341 | 1,060 | 1,339 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 404 | 409 | 1,234 | 1,281 |
Outside services (related party balances of $3, $3, $8 and $19, respectively) | 89 | 106 | 267 | 314 |
Occupancy (related party balances of $0, $0, $1 and $0, respectively) | 75 | 77 | 245 | 245 |
Equipment expense | 62 | 58 | 190 | 187 |
Amortization of software | 35 | 38 | 108 | 102 |
Other operating expense | 133 | 122 | 405 | 439 |
Total noninterest expense | 798 | 810 | 2,449 | 2,568 |
Income before income tax expense | 335 | 274 | 932 | 985 |
Income tax expense | 115 | 85 | 313 | 317 |
NET INCOME | 220 | 189 | 619 | 668 |
Net income available to common stockholders | $ 213 | $ 189 | $ 612 | $ 668 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 530,985,255 | 559,998,324 | 538,279,222 | 559,998,324 |
Diluted (in Shares) | 533,398,158 | 560,243,747 | 540,926,361 | 560,081,031 |
Per common share information: | ||||
Basic earnings (in Dollars per Share) | $ 0.40 | $ 0.34 | $ 1.14 | $ 1.19 |
Diluted earnings (in Dollars per Share) | 0.40 | 0.34 | 1.13 | 1.19 |
Dividends declared and paid (in Dollars per Share) | $ 0.10 | $ 0.68 | $ 0.30 | $ 1.34 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 812 | $ 754 | $ 2,381 | $ 2,235 |
INTEREST EXPENSE: | ||||
Federal funds purchased and securities sold under agreement to repurchase | 4 | 9 | 13 | 25 |
Other short-term borrowed funds | 17 | 21 | 51 | 70 |
Long-term borrowed funds | 32 | 22 | 95 | 55 |
NONINTEREST INCOME: | ||||
Service charges and fees | 145 | 144 | 419 | 430 |
Capital markets fees | 21 | 22 | 73 | 66 |
Foreign exchange and trade finance fees | 22 | 26 | 67 | 70 |
Other income | 32 | 17 | 76 | 367 |
NONINTEREST EXPENSE: | ||||
Outside services | 89 | 106 | 267 | 314 |
Occupancy | 75 | 77 | 245 | 245 |
Related Party | ||||
INTEREST INCOME: | ||||
Interest and fees on loans and leases | 17 | 18 | 53 | 54 |
INTEREST EXPENSE: | ||||
Federal funds purchased and securities sold under agreement to repurchase | 1 | 3 | 6 | 16 |
Other short-term borrowed funds | 13 | 16 | 38 | 60 |
Long-term borrowed funds | 19 | 17 | 59 | 42 |
NONINTEREST INCOME: | ||||
Service charges and fees | 0 | 1 | 2 | 4 |
Capital markets fees | 2 | 4 | 8 | 9 |
Foreign exchange and trade finance fees | 5 | 59 | 21 | 52 |
Other income | (75) | 5 | (125) | (130) |
NONINTEREST EXPENSE: | ||||
Outside services | 3 | 3 | 8 | 19 |
Occupancy | $ 0 | $ 0 | $ 1 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 220 | $ 189 | $ 619 | $ 668 |
Other comprehensive income (loss): | ||||
Net unrealized derivative instrument gains arising during the periods, net of income taxes of $30, $10, $66 and $80, respectively | 48 | 17 | 108 | 137 |
Reclassification adjustment for net derivative (losses) gains included in net income, net of income taxes of ($3), $2, ($5) and $9, respectively | (4) | 3 | (8) | 16 |
Net unrealized securities available for sale gains (losses) arising during the periods, net of income taxes of $37, ($36), $25 and $73, respectively | 61 | (61) | 41 | 127 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of ($4), $0, ($15) and ($12), respectively | (8) | (1) | (26) | (22) |
Reclassification of net securities gains to net income, net of income taxes of $0, $0, ($5) and ($7), respectively | 0 | (1) | (9) | (13) |
Defined benefit pension plans: | ||||
Actuarial loss, net of income taxes of $0, ($35), $0 and ($35), respectively | 0 | (59) | 0 | (59) |
Net prior service credit, net of income taxes of $0, $3, $0 and $3, respectively | 0 | 4 | 0 | 4 |
Amortization of actuarial loss, net of income taxes $0, $1, $3 and $2, respectively | 3 | 2 | 7 | 4 |
Divestitures to RBS effective September 1, 2014, net of income taxes of $0, $13, $0 and $13, respectively | 0 | 19 | 0 | 19 |
Total other comprehensive income (loss), net of income taxes | 100 | (77) | 113 | 213 |
Total comprehensive income | $ 320 | $ 112 | $ 732 | $ 881 |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument gains arising during the periods, tax | $ 30 | $ 10 | $ 66 | $ 80 |
Reclassification adjustment for net derivative (losses) gains included in net income, tax | (3) | 2 | (5) | 9 |
Net unrealized securities available for sale gains (losses) arising during the periods, tax | 37 | (36) | 25 | 73 |
Other-than-temporary impairment not recognized in earnings on securities, tax | (4) | 0 | (15) | (12) |
Reclassification of net securities gains to net income, tax | 0 | 0 | (5) | (7) |
Actuarial loss, tax | 0 | (35) | 0 | (35) |
Net prior service credit, tax | 0 | 3 | 0 | 3 |
Amortization of actuarial loss, tax | 0 | 1 | 3 | 2 |
Divestitures to RBS effective September 1, 2014, tax | $ 0 | $ 13 | $ 0 | $ 13 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2013 | 0 | 560 | |||||
Beginning balance at Dec. 31, 2013 | $ 19,196 | $ 0 | $ 6 | $ 18,603 | $ 1,235 | $ 0 | $ (648) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to RBS | (85) | (85) | |||||
Dividends to RBS — exchange transactions | (666) | (666) | |||||
Share-based compensation plans | 57 | 57 | |||||
Total comprehensive income: | |||||||
Net income | 668 | 668 | |||||
Other comprehensive income | 213 | 213 | |||||
Total comprehensive income | 881 | 668 | 213 | ||||
Ending balance (in shares) at Sep. 30, 2014 | 0 | 560 | |||||
Ending balance at Sep. 30, 2014 | 19,383 | $ 0 | $ 6 | 18,660 | 1,152 | 0 | (435) |
Beginning balance (in shares) at Dec. 31, 2014 | 0 | 546 | |||||
Beginning balance at Dec. 31, 2014 | 19,268 | $ 0 | $ 6 | 18,676 | 1,294 | (336) | (372) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (90) | (90) | |||||
Dividends to RBS | (71) | (71) | |||||
Dividend to preferred stockholders | (7) | (7) | |||||
Issuance of preferred stock (in shares) | 0 | ||||||
Issuance of preferred stock | 247 | $ 247 | |||||
Treasury stock purchased (in shares) | (20) | ||||||
Treasury stock purchased | (500) | (500) | |||||
Share-based compensation plans (in shares) | 2 | ||||||
Share-based compensation plans | 14 | 35 | (21) | ||||
Employee stock purchase plan shares issued | 7 | 7 | |||||
Total comprehensive income: | |||||||
Net income | 619 | 619 | |||||
Other comprehensive income | 113 | 113 | |||||
Total comprehensive income | 732 | 619 | 113 | ||||
Ending balance (in shares) at Sep. 30, 2015 | 0 | 528 | |||||
Ending balance at Sep. 30, 2015 | $ 19,600 | $ 247 | $ 6 | $ 18,718 | $ 1,745 | $ (857) | $ (259) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ 619 | $ 668 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 211 | 247 |
Originations of mortgage loans held for sale | (1,836) | (1,131) |
Proceeds from sales of mortgage loans held for sale | 1,780 | 1,089 |
Purchases of commercial loans held for sale | (887) | 0 |
Proceeds from sales of commercial loans held for sale | 826 | 0 |
Amortization of terminated cash flow hedges (related party balances of $13 and $13, respectively) | 13 | 36 |
Depreciation, amortization and accretion | 350 | 313 |
Mortgage servicing rights valuation recovery | (6) | (8) |
Securities impairment | 5 | 7 |
Deferred income taxes | 76 | 31 |
Share-based compensation | 22 | 29 |
Loss on disposal/impairment of premises and equipment | 0 | 18 |
Loss on sale of other branch assets held for sale | 0 | 9 |
Gain on sales of: | ||
Debt securities | (19) | (27) |
Marketable equity securities available for sale | (3) | 0 |
Premises and equipment | (9) | 0 |
Other loans held for sale | 0 | (11) |
Deposits held for sale | 0 | (286) |
Increase in other assets (related party balances of ($99) and $53, respectively) | (306) | (2,033) |
(Decrease) increase in other liabilities (related party balances of ($112) and ($151), respectively) | (5) | 2,256 |
Net cash provided by operating activities | 831 | 1,207 |
INVESTING ACTIVITIES | ||
Purchases of securities available for sale | (5,418) | (5,642) |
Proceeds from maturities and paydowns of securities available for sale | 2,660 | 2,238 |
Proceeds from sales of securities available for sale | 3,180 | 1,265 |
Purchases of securities held to maturity | (811) | (1,174) |
Proceeds from maturities and paydowns of securities held to maturity | 610 | 216 |
Proceeds from sales of securities held to maturity | 73 | 0 |
Purchases of other investment securities, at fair value | (109) | (97) |
Proceeds from sales of other investment securities, at fair value | 92 | 90 |
Purchases of other investment securities, at cost | (33) | (72) |
Proceeds from sales of other investment securities, at cost | 78 | 114 |
Net decrease (increase) in interest-bearing deposits in banks | 7 | (59) |
Net increase in loans and leases | (4,315) | (4,120) |
Net increase in bank-owned life insurance | (26) | (31) |
Premises and equipment: | ||
Purchases | (54) | (48) |
Proceeds from sales | 12 | 29 |
Capitalization of software | (142) | (116) |
Net cash used in investing activities | (4,196) | (7,407) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 6,159 | 1,569 |
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | (2,983) | 393 |
Net (decrease) increase in other short-term borrowed funds | (1,152) | 4,462 |
Proceeds from issuance of long-term borrowed funds (related party balances of $0 and $666, respectively) | 250 | 666 |
Repayments of long-term borrowed funds | (8) | (7) |
Treasury stock purchased | (500) | 0 |
Net proceeds from issuance of preferred stock | 247 | 0 |
Dividends declared and paid to common stockholders | (90) | 0 |
Dividends declared and paid to RBS | (71) | (751) |
Dividends declared and paid to preferred stockholders | (7) | 0 |
Net cash provided by financing activities | 1,845 | 6,332 |
(Decrease) increase in cash and cash equivalents | (1,520) | 132 |
Cash and cash equivalents at beginning of period | 3,276 | 2,757 |
Cash and cash equivalents at end of period | $ 1,756 | $ 2,889 |
CONSOLIDATED STATEMENTS OF CA10
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Amortization of terminated cash flow hedges | $ 13 | $ 36 |
Increase in other assets | (306) | (2,033) |
(Decrease) increase in other liabilities | (5) | 2,256 |
Proceeds from issuance of long-term borrowed funds | 250 | 666 |
Related Party | ||
Amortization of terminated cash flow hedges | 13 | 13 |
Increase in other assets | (99) | 53 |
(Decrease) increase in other liabilities | (112) | (151) |
Proceeds from issuance of long-term borrowed funds | $ 0 | $ 666 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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’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 restated 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 August 2015, the FASB issued ASU No. 2015-15 “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Arrangements.” The ASU incorporates guidance from the SEC on deferral of debt issuance costs associated with line-of-credit arrangements, consistent with ASU 2015-03, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This new guidance will not have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which defers the effective date of the new revenue standard by one year. As a result of this deferral, the new revenue standard is effective for the Company beginning on January 1, 2018. The Company is currently assessing the impact of this guidance on the Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05 “Intangibles - Goodwill and Other - Internal Use Software” which will assist entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement. The ASU, which allows for early adoption, is effective for the Company beginning on January 1, 2016. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-03 “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs”. This standard requires debt issuance costs to be presented in the consolidated balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The ASU, which allows for early adoption, is effective for the Company beginning on January 1, 2016. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. 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 is 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, which allows for early adoption, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table provides the major components of securities at amortized cost and fair value: September 30, 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 9 — — 9 10 — — 10 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,340 292 (25 ) 17,607 17,683 301 (50 ) 17,934 Other/non-agency 587 3 (41 ) 549 703 4 (35 ) 672 Total mortgage-backed securities 17,927 295 (66 ) 18,156 18,386 305 (85 ) 18,606 Total debt securities available for sale 17,951 295 (66 ) 18,180 18,411 305 (85 ) 18,631 Marketable equity securities 5 — — 5 10 3 — 13 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 22 3 — 25 Total securities available for sale $17,968 $295 ($66 ) $18,197 $18,433 $308 ($85 ) $18,656 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,092 $67 ($4 ) $4,155 $3,728 $22 ($31 ) $3,719 Other/non-agency 1,193 38 — 1,231 1,420 54 — 1,474 Total securities held to maturity $5,285 $105 ($4 ) $5,386 $5,148 $76 ($31 ) $5,193 Other Investment Securities, at Fair Value Money market mutual fund $45 $— $— $45 $28 $— $— $28 Venture capital and other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $50 $— $— $50 $33 $— $— $33 Other Investment Securities, at Cost Federal Reserve Bank stock $468 $— $— $468 $477 $— $— $477 Federal Home Loan Bank stock 354 — — 354 390 — — 390 Total other investment securities, at cost $822 $— $— $822 $867 $— $— $867 The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net impairment losses recognized in earnings: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 Other-than-temporary impairment: Total other-than-temporary impairment losses ($14 ) ($3 ) ($46 ) ($42 ) Portions of loss recognized in other comprehensive income (before taxes) 12 2 41 35 Net impairment losses recognized in earnings ($2 ) ($1 ) ($5 ) ($7 ) The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: September 30, 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 $9 $— — $— $— 1 $9 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 35 2,985 (12 ) 37 960 (17 ) 72 3,945 (29 ) Other/non-agency 6 52 (1 ) 19 366 (40 ) 25 418 (41 ) Total mortgage-backed securities 41 3,037 (13 ) 56 1,326 (57 ) 97 4,363 (70 ) Total 42 $3,046 ($13 ) 56 $1,326 ($57 ) 98 $4,372 ($70 ) 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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Cumulative balance at beginning of period $62 $60 $62 $56 Credit impairments recognized in earnings on securities not previously impaired — — — — Credit impairments recognized in earnings on securities that have been previously impaired 2 1 5 7 Reductions due to increases in cash flow expectations on impaired securities (1 ) (1 ) (4 ) (3 ) Cumulative balance at end of period $63 $60 $63 $60 Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of September 30, 2015 and 2014 were $63 million and $60 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of September 30, 2015 and 2014 . For the three months ended September 30, 2015 and 2014 , the Company recognized credit related other-than-temporary impairment losses in earnings of $2 million and $1 million , respectively, related to non-agency MBS in the AFS portfolio. For the nine months ended September 30, 2015 and 2014 , the Company recognized credit related other-than-temporary impairment losses in earnings of $5 million and $7 million , respectively. There were no credit impaired debt securities sold during the three or nine months ended September 30, 2015 and 2014 , respectively. Reductions in credit losses due to increases in cash flow expectations were $1 million for the three months ended September 30, 2015 and 2014 , and $4 million and $3 million for the nine months ended September 30, 2015 and 2014 , respectively, and were presented in interest income from investment securities 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 September 30, 2015 and 2014 , $41 million and $35 million , respectively, of pre-tax non-credit related losses were deferred in OCI. The amortized cost and fair value of debt securities at September 30, 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 incurring 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 — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 47 1,972 15,321 17,340 Other/non-agency — 70 9 508 587 Total debt securities available for sale 15 117 1,981 15,838 17,951 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,092 4,092 Other/non-agency — — — 1,193 1,193 Total debt securities held to maturity — — — 5,285 5,285 Total amortized cost of debt securities $15 $117 $1,981 $21,123 $23,236 Fair Value: Debt securities available for sale U.S. Treasury $15 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 50 2,006 15,551 17,607 Other/non-agency — 71 9 469 549 Total debt securities available for sale 15 121 2,015 16,029 18,180 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,155 4,155 Other/non-agency — — — 1,231 1,231 Total debt securities held to maturity — — — 5,386 5,386 Total fair value of debt securities $15 $121 $2,015 $21,415 $23,566 The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Taxable $154 $155 $468 $458 Non-taxable — — — — Total interest income from investment securities $154 $155 $468 $458 Realized gains and losses on AFS securities are shown below: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (in millions) 2015 2014 2015 2014 Gains on sale of debt securities $7 $7 $29 $32 Losses on sale of debt securities (7 ) (5 ) (12 ) (5 ) Debt securities gains, net $— $2 $17 $27 Equity securities gains $— $— $3 $— In advance of the Volcker Rule effective date, during the three months ended September 30, 2015, the Company sold a $73 million mortgage-backed security that was classified as HTM that would have been prohibited under the Volcker Rule beginning in July 2017. Upon sale the Company recognized a $2 million gain. The amortized cost and fair value of securities pledged are shown below: September 30, 2015 December 31, 2014 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $1,275 $1,294 $3,650 $3,701 Pledged against FHLB borrowed funds 1,203 1,241 1,355 1,407 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,442 3,517 3,453 3,520 There were no loan securitizations for the three or nine months ended September 30, 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: September 30, 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 purchased under agreements to resell $1,300 ($1,300 ) $— $— $— $— Securities sold under agreements to repurchase (1,800 ) 1,300 (500 ) (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 September 30, 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 purchased under agreements to resell Mortgage-backed securities - Agency $— $500 $300 $500 $1,300 Total securities purchased under agreements to resell $— $500 $300 $500 $1,300 Securities sold under agreements to repurchase Mortgage-backed securities - Agency $— ($500 ) ($800 ) ($500 ) ($1,800 ) Total securities sold under agreement to repurchase $— ($500 ) ($800 ) ($500 ) ($1,800 ) 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 | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES A summary of the loans and leases portfolio follows: (in millions) September 30, 2015 December 31, 2014 Commercial $32,726 $31,431 Commercial real estate 8,678 7,809 Leases 3,865 3,986 Total commercial 45,269 43,226 Residential mortgages 12,792 11,832 Home equity loans 2,842 3,424 Home equity lines of credit 14,707 15,423 Home equity loans serviced by others (1) 1,054 1,228 Home equity lines of credit serviced by others (1) 441 550 Automobile 13,876 12,706 Student 3,846 2,256 Credit cards 1,628 1,693 Other retail 976 1,072 Total retail 52,162 50,184 Total loans and leases (2) (3) $97,431 $93,410 (1) The Company’s SBO portfolio consists of purchased 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 $420 million as of September 30, 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 $17.7 billion and $17.9 billion at September 30, 2015 and December 31, 2014 , respectively. Loans held for sale at fair value totaled $369 million and $256 million at September 30, 2015 and December 31, 2014 , respectively, and consisted of residential mortgages originated for sale of $269 million and the commercial trading portfolio of $100 million as of September 30, 2015 . As of December 31, 2014 , residential mortgages originated for sale were $213 million , and commercial trading portfolio totaled $43 million . Other loans held for sale totaled $51 million and $25 million as of September 30, 2015 and December 31, 2014 , respectively and consisted of commercial loan syndications. Loans pledged as collateral for FHLB borrowed funds totaled $22.1 billion and $22.0 billion at September 30, 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 $12.7 billion and $11.8 billion at September 30, 2015 and December 31, 2014 , respectively. During the nine months ended September 30, 2015 , the Company purchased a portfolio of automobile loans with an outstanding principal balance of $1.1 billion , a portfolio of residential mortgages with an outstanding principal balance of $887 million , and a portfolio of student loans with an outstanding principal balance of $615 million . During the nine months ended September 30, 2014 , the Company purchased a portfolio of residential loans with an outstanding principal balance of $1.5 billion , a portfolio of auto loans with an outstanding principal balance of $1.3 billion and a portfolio of student loans with an outstanding principal balance of $59 million . During the nine months ended September 30, 2015 , the Company sold a portfolio of residential mortgages with an outstanding principal balance of $273 million and $41 million of credit card balances associated with a terminated agent credit card servicing agreement. During the nine months ended September 30, 2014 , in addition to the $1.1 billion loans sold as part of the Company's sale of its Chicago-area retail branches, the Company sold portfolios of residential mortgage loans with outstanding principal balances of $126 million and student loans of $357 million as well as commercial loans with an outstanding principal balance of $165 million . |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 9 Months Ended |
Sep. 30, 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 allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. It 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 reserve 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: Nine Months Ended September 30, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2015 $544 $651 $1,195 Charge-offs (32 ) (324 ) (356 ) Recoveries 42 107 149 Net (charge-offs) recoveries 10 (217 ) (207 ) Provision charged to income 21 192 213 Allowance for loan and lease losses as of September 30, 2015 575 626 1,201 Reserve for unfunded lending commitments as of January 1, 2015 61 — 61 Credit for unfunded lending commitments (2 ) — (2 ) Reserve for unfunded lending commitments as of September 30, 2015 59 — 59 Total allowance for credit losses as of September 30, 2015 $634 $626 $1,260 Nine Months Ended September 30, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2014 $498 $723 $1,221 Charge-offs (30 ) (344 ) (374 ) Recoveries 47 84 131 Net (charge-offs) recoveries 17 (260 ) (243 ) Provision charged to income 27 196 223 Allowance for loan and lease losses as of September 30, 2014 542 659 1,201 Reserve for unfunded lending commitments as of January 1, 2014 39 — 39 Provision for unfunded lending commitments 24 — 24 Reserve for unfunded lending commitments as of September 30, 2014 63 — 63 Total allowance for credit losses as of September 30, 2014 $605 $659 $1,264 The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: September 30, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $194 $1,170 $1,364 $205 $1,208 $1,413 Formula-based evaluation 45,075 50,992 96,067 43,021 48,976 91,997 Total $45,269 $52,162 $97,431 $43,226 $50,184 $93,410 The following is a summary of the allowance for credit losses by evaluation method: September 30, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $23 $104 $127 $20 $109 $129 Formula-based evaluation 611 522 1,133 585 542 1,127 Allowance for credit losses $634 $626 $1,260 $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: September 30, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,005 $924 $712 $85 $32,726 Commercial real estate 8,326 207 103 42 8,678 Leases 3,796 22 47 — 3,865 Total $43,127 $1,153 $862 $127 $45,269 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: September 30, 2015 (in millions) Current 1-29 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,358 $107 $78 $249 $12,792 Home equity loans 2,478 179 46 139 2,842 Home equity lines of credit 14,060 401 77 169 14,707 Home equity loans serviced by others (1) 956 58 21 19 1,054 Home equity lines of credit serviced by others (1) 344 56 14 27 441 Automobile 12,859 858 130 29 13,876 Student 3,689 90 28 39 3,846 Credit cards 1,543 51 19 15 1,628 Other retail 902 55 15 4 976 Total $49,189 $1,855 $428 $690 $52,162 (1) The Company’s SBO portfolio consists of purchased 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 purchased 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: September 30, 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 $81 $7 $88 $113 $1 $114 Commercial real estate 42 — 42 50 — 50 Leases — — — — — — Total commercial 123 7 130 163 1 164 Residential mortgages 324 — 324 345 — 345 Home equity loans 200 — 200 203 — 203 Home equity lines of credit 214 — 214 257 — 257 Home equity loans serviced by others (1) 39 — 39 47 — 47 Home equity lines of credit serviced by others (1) 31 — 31 25 — 25 Automobile 38 — 38 21 — 21 Student 32 7 39 11 6 17 Credit cards 15 — 15 16 1 17 Other retail 3 1 4 5 — 5 Total retail 896 8 904 930 7 937 Total $1,019 $15 $1,034 $1,093 $8 $1,101 (1) The Company’s SBO portfolio consists of purchased 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 $259 million as of September 30, 2015 . A summary of other nonperforming assets is as follows: (in millions) September 30, 2015 December 31, 2014 Nonperforming assets, net of valuation allowance: Commercial $1 $3 Retail 38 39 Nonperforming assets, net of valuation allowance $39 $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: September 30, 2015 December 31, 2014 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.13 % 0.18 % Nonperforming retail loans as a percentage of total loans and leases 0.93 1.00 Total nonperforming loans and leases as a percentage of total loans and leases 1.06 % 1.18 % Nonperforming commercial assets as a percentage of total assets 0.10 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.69 0.73 Total nonperforming assets as a percentage of total assets 0.79 % 0.86 % The following is an analysis of the age of the past due amounts (accruing and nonaccruing): September 30, 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 $22 $88 $110 $57 $114 $171 Commercial real estate 3 42 45 26 50 76 Leases — — — 3 — 3 Total commercial 25 130 155 86 164 250 Residential mortgages 78 249 327 97 269 366 Home equity loans 46 139 185 60 145 205 Home equity lines of credit 77 169 246 73 198 271 Home equity loans serviced by others (1) 21 19 40 26 23 49 Home equity lines of credit serviced by others (1) 14 27 41 10 19 29 Automobile 130 29 159 93 16 109 Student 28 39 67 25 17 42 Credit cards 19 15 34 22 17 39 Other retail 15 4 19 18 4 22 Total retail 428 690 1,118 424 708 1,132 Total $453 $820 $1,273 $510 $872 $1,382 (1) The Company’s SBO portfolio consists of purchased 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: September 30, 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 $84 $21 $70 $174 $154 Commercial real estate 23 2 17 37 40 Total commercial 107 23 87 211 194 Residential mortgages 119 16 311 593 430 Home equity loans 94 12 190 351 284 Home equity lines of credit 22 2 120 174 142 Home equity loans serviced by others (1) 53 8 26 91 79 Home equity lines of credit serviced by others (1) 3 1 7 14 10 Automobile 3 — 11 18 14 Student 164 48 1 166 165 Credit cards 29 12 — 29 29 Other retail 15 5 2 20 17 Total retail 502 104 668 1,456 1,170 Total $609 $127 $755 $1,667 $1,364 (1) The Company’s SBO portfolio consists of purchased 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 purchased 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 September 30, 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $126 $2 $138 Commercial real estate — 35 — 62 Total commercial 1 161 2 200 Residential mortgages 4 428 4 445 Home equity loans 2 277 1 262 Home equity lines of credit 1 142 1 158 Home equity loans serviced by others (1) 1 79 1 95 Home equity lines of credit serviced by others (1) — 10 — 11 Automobile — 12 — 9 Student 1 165 2 161 Credit cards — 29 1 34 Other retail 1 17 1 21 Total retail 10 1,159 11 1,196 Total $11 $1,320 $13 $1,396 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. Nine Months Ended September 30, 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $133 $2 $141 Commercial real estate 1 45 1 70 Total commercial 3 178 3 211 Residential mortgages 12 423 11 434 Home equity loans 7 263 5 248 Home equity lines of credit 3 140 3 153 Home equity loans serviced by others (1) 3 80 4 94 Home equity lines of credit serviced by others (1) — 9 — 11 Automobile — 11 — 8 Student 5 160 6 154 Credit cards 1 28 2 34 Other retail 1 18 1 21 Total retail 32 1,132 32 1,157 Total $35 $1,310 $35 $1,368 (1) The Company’s SBO portfolio consists of purchased 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 $152 million and $176 million on September 30, 2015 and December 31, 2014 , respectively. Retail TDRs totaled $1.2 billion on September 30, 2015 and December 31, 2014 . Commitments to lend additional funds to debtors owing receivables which were TDRs were $15 million and $53 million on September 30, 2015 and December 31, 2014 , respectively. The following table summarizes how loans were modified during the three months ended September 30, 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 September 30, 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 4 $— $— 50 $7 $7 Commercial real estate — — — — — — Total commercial 4 — — 50 7 7 Residential mortgages 24 4 4 8 1 1 Home equity loans 30 2 2 72 14 14 Home equity lines of credit 1 — — 2 — — Home equity loans serviced by others (3) 2 — — — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 33 — 1 3 — — Student — — — — — — Credit cards 547 3 3 — — — Other retail 2 — — — — — Total retail 639 9 10 85 15 15 Total 643 $9 $10 135 $22 $22 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 8 $28 $28 $— $1 Commercial real estate — — — — — Total commercial 8 28 28 — 1 Residential mortgages 78 9 9 — — Home equity loans 85 8 7 — — Home equity lines of credit 58 4 3 — — Home equity loans serviced by others (3) 26 2 1 — — Home equity lines of credit serviced by others (3) 12 1 1 — — Automobile 182 2 3 — 1 Student 151 2 3 1 — Credit card — — — — — Other retail 4 — — — — Total retail 596 28 27 1 1 Total 604 $56 $55 $1 $2 (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 purchased 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 September 30, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to September 30, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 5 $— $— 10 $2 $2 Commercial real estate 1 — — 3 1 1 Total commercial 6 — — 13 3 3 Residential mortgages 28 4 4 10 2 1 Home equity loans 24 2 3 8 — 2 Home equity lines of credit 5 — — 69 4 3 Home equity loans serviced by others (3) 8 — — — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 7 — — 4 — — Student — — — — — — Credit cards 513 3 3 — — — Other retail — — — — — — Total retail 585 9 10 91 6 6 Total 591 $9 $10 104 $9 $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 3 $— $— $— $— Commercial real estate — — — — — Total commercial 3 — — — — Residential mortgages 102 12 11 (1 ) 1 Home equity loans 266 15 15 — — Home equity lines of credit 98 7 6 — 1 Home equity loans serviced by others (3) 26 1 1 (1 ) — Home equity lines of credit serviced by others (3) 9 1 1 — — Automobile 256 5 3 — 1 Student 346 6 6 1 — Credit card — — — — — Other retail 6 — — — 1 Total retail 1,109 47 43 (1 ) 4 Total 1,112 $47 $43 ($1 ) $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased 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 nine months ended September 30, 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 September 30, 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 18 $3 $3 114 $19 $19 Commercial real estate 1 — — — — — Total commercial 19 3 3 114 19 19 Residential mortgages 77 13 13 27 5 5 Home equity loans 77 4 4 158 30 30 Home equity lines of credit 1 — — 5 — — Home equity loans serviced by others (3) 24 1 1 — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 71 1 2 5 — — Student — — — — — — Credit cards 1,781 10 10 — — — Other retail 2 — — — — — Total retail 2,033 29 30 195 35 35 Total 2,052 $32 $33 309 $54 $54 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 12 $30 $30 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 13 34 34 (1 ) 1 Residential mortgages 184 19 19 (1 ) — Home equity loans 379 25 24 — — Home equity lines of credit 271 18 15 — 2 Home equity loans serviced by others (3) 97 5 4 — 1 Home equity lines of credit serviced by others (3) 34 2 2 — — Automobile 651 10 9 — 2 Student 901 16 17 4 — Credit Card — — — 1 — Other retail 19 — — — — Total retail 2,536 95 90 4 5 Total 2,549 $129 $124 $3 $6 (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 purchased 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 nine months ended September 30, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to September 30, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 20 $7 $7 38 $4 $4 Commercial real estate 3 — — 5 1 1 Total commercial 23 7 7 43 5 5 Residential mortgages 94 14 14 32 5 4 Home equity loans 92 6 7 76 4 5 Home equity lines of credit 7 — — 245 15 13 Home equity loans serviced by others (3) 26 1 1 — — — Home equity lines of credit serviced by others (3) 3 — — 1 — — Automobile 62 1 1 11 — — Student — — — — — — Credit cards 1,698 9 9 — — — Other retail 3 — — — — — Total retail 1,985 31 32 365 24 22 Total 2,008 $38 $39 408 $29 $27 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 5 $— $— ($8 ) $— Commercial real estate — — — — — Total commercial 5 — — (8 ) — Residential mortgages 341 40 39 (3 ) 1 Home equity loans 789 49 47 (1 ) 2 Home equity lines of credit 257 18 15 — 4 Home equity loans serviced by others (3) 111 4 4 (1 ) — Home equity lines of credit serviced by others (3) 33 2 2 — — Automobile 673 11 7 — 3 Student 1,199 22 22 2 — Credit Card — — — — — Other retail 35 1 1 — 1 Total retail 3,438 147 137 (3 ) 11 Total 3,443 $147 $137 ($11 ) $11 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased 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 September 30, 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 September 30, 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 September 30, 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 7 $1 5 $4 Commercial real estate — — 1 — Total commercial 7 1 6 4 Residential mortgages 37 7 91 11 Home equity loans 47 6 104 8 Home equity lines of credit 26 3 52 3 Home equity loans serviced by others (1) 11 1 17 — Home equity lines of credit serviced by others (1) 10 1 6 — Automobile 24 — 30 — Student 33 1 93 2 Credit cards 102 1 131 1 Other retail 1 — 2 — Total retail 291 20 526 25 Total 298 $21 532 $29 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. The table below summarizes TDRs that defaulted during the nine months ended September 30, 2015 and 2014 within 12 months of their modification date. Nine Months Ended September 30, 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 21 $2 22 $7 Commercial real estate — — 2 1 Total commercial 21 2 24 8 Residential mortgages 120 18 226 27 Home equity loans 130 12 259 19 Home equity lines of credit 98 6 191 9 Home equity loans serviced by others (1) 34 2 51 1 Home equity lines of credit serviced by others (1) 17 1 18 — Automobile 66 1 88 1 Student 142 3 284 5 Credit cards 304 2 444 3 Other retail 4 — 11 — Total retail 915 45 1,572 65 Total 936 $47 1,596 $73 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines 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 September 30, 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 within the commercial loan or retail loan portfolios. Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements. The Company’s policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction. Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values. These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interest-only and negative amortization residential mortgages, and loans with low introductory rates. Certain loans have more than one of these characteristics. The following table presents balances of loans with these characteristics: September 30, 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 $651 $1,100 $874 $— $2,625 Interest only/negative amortization 1,024 — — — 1,024 Low introductory rate — 2 — 95 97 Multiple characteristics and other 15 — — — 15 Total $1,690 $1,102 $874 $95 $3,761 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 | 9 Months Ended |
Sep. 30, 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 retrospective adoption of ASU 2014-01 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 September 30, 2015 , the Company’s balance of LIHTC investments was $518 million and unfunded commitments totaled $324 million . For the three months ended September 30, 2015 , the Company recognized $11 million of amortization expense, $12 million of tax credits and $4 million of other tax benefits associated with these investments in the provision for income taxes. For the nine months ended September 30, 2015 , the Company recognized $35 million of amortization expense, $35 million of tax credits and $13 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 and nine months ended September 30, 2015 . |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 September 30, 2014 $2,136 $4,740 $6,876 Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at September 30, 2015 $2,136 $4,740 $6,876 Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at September 30, 2015 and 2014 . The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at September 30, 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 nine months ended September 30, 2015 and 2014 . |
MORTGAGE BANKING
MORTGAGE BANKING | 9 Months Ended |
Sep. 30, 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 $1.5 billion and $1.1 billion of proceeds from the sale of residential mortgages for the nine months ended September 30, 2015 and 2014 , respectively, and recognized gains on such sales of $43 million and $25 million for the nine months ended September 30, 2015 and 2014 , respectively. Pursuant to the standard representations and warranties obligations discussed in the preceding paragraph, the Company repurchased residential mortgage loans totaling $9 million and $22 million for the nine months ended September 30, 2015 and 2014 , respectively. Mortgage servicing fees, a component of mortgage banking income, were $41 million and $44 million for the nine months ended September 30, 2015 and 2014 , respectively. The Company recorded valuation recoveries of $6 million and $8 million for its MSRs for the nine months ended September 30, 2015 and 2014 , respectively. Changes related to MSRs were as follows: As of and for the Nine Months Ended September 30, (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 20 13 Amortization (28 ) (32 ) Carrying amount before valuation allowance 176 189 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (6 ) (8 ) Balance at end of period 12 15 Net carrying value of MSRs $164 $174 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) September 30, 2015 December 31, 2014 Fair value $177 $179 Weighted average life (in years) 5.2 5.2 Weighted average constant prepayment rate 12.3% 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: Nine Months Ended September 30, 2015 2014 Weighted average life (in years) 5.7 5.7 Weighted average constant prepayment rate 10.8% 11.7% Weighted average discount rate 9.7% 10.3% The sensitivity analysis below as of September 30, 2015 and December 31, 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) September 30, 2015 December 31, 2014 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $6 $9 Decline in fair value from a 100 basis point decrease in interest rates $12 $15 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS The following is a summary of the Company’s short-term borrowed funds: (in millions) September 30, 2015 December 31, 2014 Federal funds purchased $— $574 Securities sold under agreements to repurchase 1,293 3,702 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,861 6,253 Total short-term borrowed funds $7,154 $10,529 Key data related to short-term borrowed funds is presented in the following table: (dollars in millions) As of and for the Nine Months Ended September 30, 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 0.25 % 0.14 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.29 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 $3,947 $5,699 Other short-term borrowed funds (primarily current portion of FHLB advances) 6,169 5,640 Weighted-average interest rate during the period: Federal funds purchased and securities sold under agreements to repurchase 0.22 % 0.12 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.27 0.25 The following is a summary of the Company’s long-term borrowed funds: (in millions) September 30, 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 4.350% fixed rate subordinated debt, due 2025 250 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (2) (3) 755 750 2.450% senior unsecured notes, due 2019 (2) (3) 763 746 Federal Home Loan advances due through 2033 18 772 Other 17 24 Total long-term borrowed funds $4,153 $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) $1.5 billion principal balance of unsecured notes presented net of $5 million and $13 million hedge of interest rate risk on medium term debt using interest rate swaps at September 30, 2015 . 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 $9.8 billion and $11.3 billion at September 30, 2015 and December 31, 2014 , respectively. The Company’s available FHLB borrowing capacity was $5.3 billion and $3.5 billion at September 30, 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, was pledged to provide borrowing capacity at the FRB. At September 30, 2015 , the Company’s unused secured borrowing capacity was approximately $31.4 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 September 30, 2015 : Year (in millions) 2015 or on demand $— 2016 — 2017 761 2018 7 2019 764 2020 and thereafter 2,621 Total $4,153 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock As of September 30, 2015 , the Company had 100,000,000 shares authorized and 250,000 shares outstanding 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 December 31, 2014. On April 6, 2015, the Company issued $250 million , or 250,000 shares, of 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. As a result of this issuance, the Company received net proceeds of $247 million after underwriting discount. The Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company. Holders of the Preferred Stock will be entitled to receive dividend payments when, and if, declared by the Company’s Board of Directors or a duly authorized committee thereof. Any such dividends will be payable on a semi-annual basis at an annual rate equal to 5.500% . On April 6, 2020, the Preferred Stock converts to a quarterly floating-rate basis equal to three-month U.S. dollar LIBOR on the related dividend determination date plus 3.960% . Citizens may redeem the Preferred Stock, in whole or in part on any dividend payment date, on or after April 6, 2020 or, in whole but not in part, at any time within 90 days following a regulatory capital treatment event at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Citizens may not redeem shares of the Preferred Stock without obtaining the prior approval of the FRBG if then required under applicable capital guidelines. Shares of the Preferred Stock have priority over the Company's common stock with regard to the payment of dividends and, as such, the Company may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the Preferred Stock have been declared for that period and sufficient funds have been set aside to make payment. Except in certain limited circumstances, the Preferred Stock does not have any voting rights. Treasury Stock On August 3, 2015, CFG used the net proceeds of its public offering of $250 million aggregate principal amount 4.350% Subordinated Notes due 2025 issued on July 31, 2015, to repurchase 9,615,384 shares of its outstanding common stock directly from RBS at a public offering price of $26.00 per share. Immediately following the completion of this stock repurchase transaction, RBS owned 110,461,782 shares, or 20.9% , of CFG’s outstanding common stock. The repurchased shares are held in treasury. 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 equaled 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 of April 1, 2015. The repurchased shares are held in treasury. During the nine months ended September 30, 2015 , the Company recorded an additional 837,853 shares of treasury stock associated with share-based compensation plan activity for a total cost of $21 million at a weighted-average price per share of $25.48 . |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 9 Months Ended |
Sep. 30, 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 of 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 effective December 12, 2012. 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. RBS is the plan sponsor of the newly established plans, which provide benefits for current and former employees of the Affiliates. Citizens remains the sponsor of the original plans, which provides benefits for its current and former employees. As a result of the divestiture of the qualified plan, 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: Nine Months Ended September 30, Qualified Plan Non-Qualified Plan Total (in millions) 2015 2014 2015 2014 2015 2014 Service cost $2 $3 $— $— $2 $3 Interest cost 33 33 3 3 36 36 Expected return on plan assets (55 ) (53 ) — — (55 ) (53 ) Amortization of actuarial loss 10 6 2 1 12 7 Net periodic pension (income) cost ($10 ) ($11 ) $5 $4 ($5 ) ($7 ) 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 | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Provision The provision for income taxes was $115 million and $85 million for the three months ended September 30, 2015 and 2014 , respectively, resulting in an effective tax rate of 34.1% and 30.8% for the three months ended September 30, 2015 and 2014 , respectively. The provision for income taxes was $313 million and $317 million for the nine months ended September 30, 2015 and 2014 , respectively, resulting in an effective tax rate of 33.5% and 32.2% for the nine months ended September 30, 2015 and 2014 , respectively. For the nine months ended September 30, 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 nine months ended September 30, 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 from noninterest income. See Note 5 “Variable Interest Entities,” for further information. Deferred Tax Liability At September 30, 2015 , the Company reported a net deferred tax liability of $637 million , compared to a $493 million liability as of December 31, 2014 . The increase in the net deferred tax liability is primarily attributable to the tax effect of net unrealized gains on securities and derivatives arising during the period and the tax effect of current year timing adjustments. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 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: September 30, 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 $11,000 $173 $68 $5,750 $24 $99 Derivatives not designated as hedging instruments: Interest rate swaps 31,628 664 580 31,848 589 501 Foreign exchange contracts 7,783 163 158 8,359 170 164 Other contracts 1,081 10 10 730 7 9 Total derivatives not designated as hedging instruments 837 748 766 674 Gross derivative fair values 1,010 816 790 773 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (172 ) (172 ) (161 ) (161 ) Less: Cash collateral applied (2) — (3 ) — — Total net derivative fair values presented in the Consolidated Balance Sheets (3) $838 $641 $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. The Company also uses receive-fixed/pay-floating interest rate swaps to manage the interest rate exposure on our medium term borrowings. 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 entire institutional hedging portfolio qualifies for hedge accounting. This includes interest rate swaps that are designated in highly effective fair value and 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 entered into interest rate swap agreements to manage the interest rate exposure on its medium term borrowings. 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 September 30, 2015 Nine Months Ended September 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $16 ($16 ) $— $22 ($22 ) $— There was no impact on net income for the three and nine months ended September 30, 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). 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 $13 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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Effective portion of gain recognized in OCI (1) $78 $27 $174 $217 Amounts reclassified from OCI to interest income (2) 22 18 57 54 Amounts reclassified from OCI to interest expense (2) (15 ) (23 ) (44 ) (79 ) (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. 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 customer derivatives and economic hedges: The Effect of Customer Derivatives and Economic Hedges on Net Income Amounts Recognized in Noninterest Income for the Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Customer derivative contracts Customer interest rate contracts (1) $85 $2 $149 $151 Customer foreign exchange contracts (1) (4 ) (60 ) (21 ) (54 ) Residential loan commitments (2) 9 (4 ) 2 4 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (75 ) 5 (126 ) (130 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 5 59 21 52 Forward sale contracts (2) (4 ) 2 (2 ) (2 ) Total $16 $4 $23 $21 (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
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 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) September 30, 2015 December 31, 2014 Commitment amount: Undrawn commitments to extend credit $55,506 $55,899 Financial standby letters of credit 2,077 2,315 Performance letters of credit 45 65 Commercial letters of credit 63 75 Marketing rights 47 51 Risk participation agreements 39 19 Residential mortgage loans sold with recourse 11 11 Total $57,788 $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 $1 million at September 30, 2015 and $3 million at December 31, 2014 . 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 paid approximately $3 million for the nine months ended September 30, 2015 and $3 million for the year ended December 31, 2014 , respectively, and is obligated to pay $47 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 September 30, 2015 and December 31, 2014 is $39 million and $19 million , respectively. The current amount of credit exposure is spread out over 78 counterparties. RPAs generally have terms ranging from 1 - 5 years; however, certain outstanding agreements have terms as long as 10 years . Other Commitments In June 2015, the Company entered into an agreement to purchase student loans on a quarterly basis in future periods. Under the terms of the agreement, the Company committed to purchase a minimum of $100 million to a maximum of $163 million per quarter for the subsequent three consecutive quarters through the first quarter 2016. The maximum amount of cumulative loan purchases under the terms of the agreement is $700 million . The agreement may be extended by the mutual agreement of the parties for an additional four quarters. The Company may terminate the agreement at will with payment of a variable termination fee. In June 2015, the Company amended its agreement originally entered into in May 2014, to purchase automobile loans on a quarterly basis in future periods. Commencing on the effective date of June 25, 2015 and through July 31, 2015, the amended agreement required the purchase of a minimum of $250 million of outstanding balances to a maximum of $600 million per quarterly period. For quarterly periods on or after August 1, 2015, the minimum and maximum purchases are $50 million and $200 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. There is no termination fee after three years from the original agreement. 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 are off-balance sheet commitments until delivery of the loans has taken place. Fair value adjustments associated with each unsettled loan trade are 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 trade purchases and sales were $134 million and $170 million , respectively, at September 30, 2015 . Settled loans purchased by the trading desk are classified as loans held for sale, at fair value on the Consolidated Balance Sheets. Refer to Note 15 “Fair Value Measurements” for further information. 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. The Company 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 fair lending, 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 Statements of 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’ past practices have not met applicable standards, and they have implemented and are continuing to implement changes to improve and bring their practices in accordance with regulatory guidance. The Company and its bank subsidiaries have actively pursued resolution of the legacy regulatory enforcement matters set forth below. 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, 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 to the restitution plan that the bank subsidiaries were required to prepare, CBNA also 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. The restitution funds have been paid, and the action plans were submitted and not objected to by the regulators. Many of the remediation steps have been implemented and others are nearing completion. In August 2015, the Company and its bank subsidiaries consented to the issuance of orders by, and paid a total $20.5 million in civil money penalties to the CFPB, the OCC and the FDIC in connection with past practices identifying and correcting errors in customer deposits in the 2008 to 2013 period. These orders require the Company and its bank subsidiaries to develop an action plan for compliance with the orders, including remediation and restitution to affected customers, and to submit it to the regulators for approval prior to execution. Many of the steps in the remediation plan have been taken and others will be implemented upon regulatory approval. In addition, one of the Company’s bank subsidiaries expects to face shortly a formal administrative enforcement action from its federal supervisory agency, including the assessment of civil monetary penalties and restitution, relating to the identity theft and debt cancellation add-on product practices, with the expected amount of penalties and restitution being fully reserved. Accordingly, to the extent they are currently known, all legacy regulatory enforcement matters are in the process of being resolved and remediated. 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 litigation is ongoing and the Company continues to engage in discussions with the plaintiff on 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 January 1, 2014 and September 30, 2015 , the Company received approximately $35 million in repurchase demands and $5 million in indemnification payment requests in respect of loans originated, for the most part, since 2003. Of those claims presented, $34 million was paid to repurchase residential mortgage loans, and $8 million was incurred for indemnification costs to make investors whole. The Company repurchased mortgage loans totaling $9 million and $22 million for the nine months ended September 30, 2015 and 2014 , respectively. The Company incurred indemnification costs of none and $7 million for the nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The tables and discussions below present the financial statement effects of significant transactions with RBS. In September 2014, the Company entered into certain agreements that established 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 to the Company’s quarterly report on Form 10-Q/A filed November 14, 2014. The following is a summary of borrowed funds from RBS: (dollars in millions) Interest Rate Maturity Date September 30, 2015 December 31, 2014 Subordinated debt 5.158% June 2023 $333 $333 4.771% October 2023 333 333 4.691% January 2024 334 334 4.153% July 2024 333 333 4.023% October 2024 333 333 4.082% January 2025 334 334 The following table presents total interest expense recorded on subordinated debt with RBS: Three Months Ended September 30, Nine Months Ended September 30, 2015 (in millions) 2015 2014 2015 2014 Interest expense on subordinated debt $19 $17 $59 $42 The Company enters into interest rate swap agreements with RBS for the purpose of reducing the Company’s exposure to interest rate fluctuations. The following table presents a summary of these swap agreements: September 30, 2015 December 31, 2014 (dollars in millions) Notional Fixed Rates Maturity Date Notional Fixed Rates Maturity Date Receive-fixed swaps $5,200 1.66% to 2.04% 2019 - 2023 $4,750 1.66% to 2.04% 2019 - 2023 Pay-fixed swaps 2,500 2.03% to 4.30% 2016 - 2023 1,000 4.18% to 4.30% 2016 Total $7,700 $5,750 The following table presents net interest income (expense) recorded by the Company in relation to interest rate swap agreements with RBS: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party interest rate swap agreements on net interest income $3 ($1 ) $9 ($22 ) 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 $7.2 billion and $9.8 billion at September 30, 2015 and December 31, 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 $4.1 billion and $4.7 billion at September 30, 2015 and December 31, 2014 , respectively. The following table presents the income (expense) recorded by the Company in relation to the interest rate swap and cap agreements and foreign exchange contracts with RBS: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party interest rate swap and cap agreements on other income ($75 ) $5 ($125 ) ($130 ) The effect of related party foreign exchange contracts on foreign exchange and trade finance fees 5 59 21 52 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. Also, the Company receives certain services provided by RBS and by certain RBS entities, the fees for which were recorded in outside services expense. The following table presents the effect of the related party fees on total fee income and outside services: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party service and referral fees, net of occupancy expense, on total fee income $2 $5 $9 $13 The effect of related party service fees on outside services 3 3 8 19 The Company paid $11 million and $50 million in regular common stock dividends to RBS for the three months ended September 30, 2015 and 2014 , respectively, and $71 million and $85 million for the nine months ended September 30, 2015 and 2014 , respectively. For the three and nine months ended September 30, 2014, the Company paid $333 million and $666 million of common stock dividends to RBS as part of exchange transactions. Additionally, the Company has engaged in repurchases of its common stock directly from RBS. Refer to Note 9 “Stockholders’ Equity” for further information. As of November 3, 2015, RBS no longer owned any of the Company’s common stock. See Note 23 “Subsequent Events” for further information. 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 entered into credit facilities with directors and executive officers and their immediate families, as well as their affiliated companies. Outstanding loan balances amounted to $135 million and $126 million at September 30, 2015 and December 31, 2014 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 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. The Company elected to account for residential mortgage loans held for sale and certain commercial and commercial real estate 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. Certain commercial and commercial real estate held for sale 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. Fair Value Option, Residential Mortgage Loans Held for Sale 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 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 mortgage banking fees on the Consolidated Statements of Operations. The Company recognized mortgage banking income (expense) of $4 million and $(2) million for the three months ended September 30, 2015 and 2014 , respectively. The Company recognized mortgage banking income of $2 million and $3 million for the nine months ended September 30, 2015 and 2014 , respectively. Interest income on residential mortgage loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. Fair Value Option, Commercial and Commercial Real Estate Loans Held for Sale The 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. There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of September 30, 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 and $3 million for the three and nine months ended September 30, 2015 , respectively, in other noninterest income related to its commercial trading portfolio. There was no interest income or noninterest income recorded in the three and nine months ended September 30, 2014 . The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance loans held for sale measured at fair value: September 30, 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 $269 $261 $8 $213 $206 $7 Commercial and commercial real estate loans held for sale, at fair value 100 100 — 43 43 — 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 vast majority of the Company’s derivatives portfolio is composed 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. Money Market Mutual Fund Fair value is determined based upon unadjusted quoted market prices and is considered a Level 1 fair value measurement. Venture capital investments and other investments The fair values of the Company’s venture capital investments and other investments are based on security prices in the market that are not active; therefore, these investments are classified as Level 2 in the fair value hierarchy. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at September 30, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $18,156 $— $18,156 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury 15 15 — — Total securities available for sale 18,197 15 18,182 — Loans held for sale: Residential loans held for sale 269 — 269 — Commercial loans held for sale 100 — 100 — Total loans held for sale 369 — 369 — Derivative assets: Interest rate swaps 837 — 837 — Foreign exchange contracts 163 — 163 — Other contracts 10 — 10 — Total derivative assets 1,010 — 1,010 — Other investment securities, at fair value: Money market mutual fund 45 45 — — Venture capital investments and other investments 5 — 5 — Total other investment securities, at fair value 50 45 5 — Total assets $19,626 $60 $19,566 $— Derivative liabilities: Interest rate swaps $648 $— $648 $— Foreign exchange contracts 158 — 158 — Other contracts 10 — 10 — Total derivative liabilities 816 — 816 — Total liabilities $816 $— $816 $— 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 — Loans held for sale: 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 — Other investment securities, at fair value: Money market mutual fund 28 28 — — Venture capital investments and other investments 5 — — 5 Total other investment securities, at fair value 33 28 — 5 Total assets $19,735 $51 $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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Beginning of period balance $1 $6 $5 $5 Purchases, issuances, sales and settlements: Purchases — — 1 — Sales — — — — Settlements — — — — Net (losses) gains (1 ) — (1 ) 1 Transfers from Level 3 to Level 2 — — (5 ) — Balance as of period end $— $6 $— $6 Net unrealized gain included in net income for the year relating to assets held at period end $— $— $— $— In March 2015, the Company transferred $5 million of securities from Level 3 to Level 2. The fair values of these securities are based on security 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 September 30, 2015 , the fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life of 5.2 years (range of 2.7 - 5.8 years ), weighted-average constant prepayment rate of 12.3% (range of 11.6% - 22.47% ) and weighted-average discount rate of 9.7% (range of 9.11% - 12.07% ). 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. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Impaired collateral-dependent loans ($9 ) ($5 ) ($22 ) ($99 ) MSRs (1 ) 5 6 8 Foreclosed assets — (1 ) (2 ) (2 ) The following tables present assets and liabilities measured at fair value on a nonrecurring basis: September 30, 2015 December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $107 $— $107 $— $102 $— $102 $— MSRs 177 — — 177 166 — — 166 Foreclosed assets 36 — 36 — 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. Other 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. Federal funds purchased and securities sold under agreements to repurchase, other short-term borrowed funds, and long-term borrowed funds Rates currently available to the Company for debt of similar terms and remaining maturities are used to discount the expected cash flows of existing debt. The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: September 30, 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 $5,285 $5,386 $— $— $5,285 $5,386 $— $— Other investment securities, at cost 822 822 — — 822 822 — — Other loans held for sale 51 51 — — — — 51 51 Loans and leases 97,431 97,314 — — 107 107 97,324 97,207 Financial Liabilities: Deposits 101,866 101,869 — — 101,866 101,869 — — Federal funds purchased and securities sold under agreements to repurchase 1,293 1,294 — — 1,293 1,294 — — Other short-term borrowed funds 5,861 5,861 — — 5,861 5,861 — — Long-term borrowed funds 4,153 4,261 — — 4,153 4,261 — — 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, at cost 867 867 — — 867 867 — — 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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 held to maturity 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 September 30, 2015 Basel III Common equity tier 1 capital $13,200 11.8 % $5,052 4.5 % $7,298 6.5 % Tier 1 capital to risk-weighted assets 13,447 12.0 6,737 6.0 8,982 8.0 Total capital to risk-weighted assets 17,307 15.4 8,982 8.0 11,228 10.0 Tier 1 capital to average assets (leverage) 13,447 10.4 5,173 4.0 6,467 5.0 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 4.0 % $6,358 6.0 % Total capital to risk-weighted assets 16,781 15.8 8,477 8.0 10,596 10.0 Tier 1 capital to average assets (leverage) 13,173 10.6 4,982 4.0 6,227 5.0 Under the Capital Plan Rule, the Company may only make capital distributions, including payment of dividends, in accordance with a capital plan that has been reviewed by the Federal Reserve and to which the Federal Reserve has not objected. In the nine months ended September 30, 2015 , the Company paid total common dividends of approximately $161 million and repurchased 20,088,781 shares of its common stock from RBS. Additionally, in the nine months ended September 30, 2015 , the Company paid total preferred dividends of $7 million . Additional information regarding the capital actions completed by the Company during the nine months ended September 30, 2015 can be found in the Capital Transactions section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations. 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 earnings impact of goodwill impairment recognized by CBNA in 2013 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, irrespective of the ability of the subsidiary banks to pay dividends, the Company had liquid assets as of September 30, 2015 that were approximately $431 million on a non-consolidated basis, compared to an annual interest burden on existing subordinated debt of approximately $115 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 the Company has developed and submitted to the OCC a remediation plan, that sets 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. |
EXIT COSTS AND RESTRUCTURING RE
EXIT COSTS AND RESTRUCTURING RESERVES | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
EXIT COSTS AND RESTRUCTURING RESERVES | EXIT COSTS AND RESTRUCTURING RESERVES For the nine months ended September 30, 2015 , the Company incurred $27 million of restructuring costs, consisting of $18 million of facilities costs in occupancy, $6 million in outside services, and $3 million in salaries and employee benefits, relating to restructuring initiatives designed to enhance operating efficiencies and reduce expense growth. For the year ended December 31, 2014 , the Company incurred $101 million of restructuring costs related to these initiatives, including $41 million of 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 asset 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 5 18 6 29 Reversals (2 ) (1 ) — (3 ) Utilization (10 ) (16 ) (6 ) (32 ) Reserve balance as of September 30, 2015 $16 $19 $3 $38 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 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 137 127 — 264 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (loss) 16 (13 ) (32 ) (29 ) Net other comprehensive income 153 92 (32 ) 213 Balance at September 30, 2014 ($145 ) $1 ($291 ) ($435 ) Balance at January 1, 2015 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income before reclassifications 108 41 — 149 Other-than-temporary impairment not recognized in earnings on securities — (26 ) — (26 ) Amounts reclassified from other comprehensive (loss) income (8 ) (9 ) 7 (10 ) Net other comprehensive income 100 6 7 113 Balance at September 30, 2015 $31 $80 ($370 ) ($259 ) 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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 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: $22 $18 $57 $54 Interest income (15 ) (23 ) (44 ) (79 ) Interest expense 7 (5 ) 13 (25 ) Income before income tax expense 3 (2 ) 5 (9 ) Income tax expense $4 ($3 ) $8 ($16 ) Net income Reclassification of net securities gains (losses) to net income: $2 $2 $19 $27 Securities gains, net (2 ) (1 ) (5 ) (7 ) Net impairment losses recognized in earnings — 1 14 20 Income before income tax expense — — 5 7 Income tax expense $— $1 $9 $13 Net income Reclassification of changes related to defined benefit pension plans: ($3 ) $52 ($10 ) $49 Salaries and employee benefits (3 ) 52 (10 ) 49 Income before income tax expense — 18 (3 ) 17 Income tax expense ($3 ) $34 ($7 ) $32 Net income Total reclassification gains (losses) $1 $32 $10 $29 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Net interest income (includes $7, ($5), $13 and ($25) of AOCI reclassifications, respectively) $856 $820 $2,532 $2,461 Provision for credit losses 76 77 211 247 Noninterest income (includes $0, $1, $14 and $20 of AOCI reclassifications, respectively) 353 341 1,060 1,339 Noninterest expense (includes $3, ($52), $10 and ($49) of AOCI reclassifications, respectively) 798 810 2,449 2,568 Income before income tax expense 335 274 932 985 Income tax expense (includes $3, $16, $7 and $15 income tax net expense from reclassification items, respectively) 115 85 313 317 Net income $220 $189 $619 $668 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 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. Our Consumer Banking value proposition is based on providing simple, easy to understand product offerings and a convenient banking experience with a more personalized approach. 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 in 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 September 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $556 $299 $1 $856 Noninterest income 235 100 18 353 Total revenue 791 399 19 1,209 Noninterest expense 623 175 — 798 Profit before provision for credit losses 168 224 19 411 Provision for credit losses 64 3 9 76 Income before income tax expense 104 221 10 335 Income tax expense 36 76 3 115 Net income $68 $145 $7 $220 Total average assets $53,206 $43,113 $38,784 $135,103 As of and for the Three Months September 30, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $532 $270 $18 $820 Noninterest income 226 104 11 341 Total revenue 758 374 29 1,161 Noninterest expense 609 162 39 810 Profit (loss) before provision for credit losses 149 212 (10 ) 351 Provision for credit losses 66 — 11 77 Income (loss) before income tax expense (benefit) 83 212 (21 ) 274 Income tax expense (benefit) 29 73 (17 ) 85 Net income (loss) 54 139 (4 ) 189 Total average assets $49,012 $38,854 $40,825 $128,691 As of and for the Nine Months Ended September 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,633 $861 $38 $2,532 Noninterest income 684 308 68 1,060 Total revenue 2,317 1,169 106 3,592 Noninterest expense 1,832 529 88 2,449 Profit before provision for credit losses 485 640 18 1,143 Provision for credit losses 187 (11 ) 35 211 Income (loss) before income tax expense (benefit) 298 651 (17 ) 932 Income tax expense (benefit) 103 224 (14 ) 313 Net income (loss) $195 $427 ($3 ) $619 Total average assets $52,438 $42,451 $39,766 $134,655 As of and for the Nine Months Ended September 30, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,615 $790 $56 $2,461 Noninterest income 681 318 340 1,339 Total revenue 2,296 1,108 396 3,800 Noninterest expense 1,902 472 194 2,568 Profit before provision for credit losses 394 636 202 1,232 Provision for credit losses 195 (7 ) 59 247 Income before income tax expense 199 643 143 985 Income tax expense 69 222 26 317 Net income 130 421 117 668 Total average assets $48,398 $37,951 $40,249 $126,598 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION During the nine months ended September 30, 2015 , the Company granted 1,118,513 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 $28 million , which has been estimated using the fair value of the Company’s shares on the grant date. In addition, during the same period, 31,438 Company share-based awards were granted to non-employee directors pursuant to the Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan (“Directors Plan”) with an aggregate grant date fair value of $1 million . The total number of Company unvested share-based awards as of September 30, 2015 was 3,363,665 , 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 Directors Plan. There are 60,893,195 shares of Company common stock available for awards to be granted under the 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 share plans (including the ESPP) was $7 million and $10 million for the three months ended September 30, 2015 and 2014 . Compensation expense related to the share plans (including the ESPP) was $22 million and $29 million for the nine months ended September 30, 2015 and 2014 , respectively. At September 30, 2015 , the total unrecognized compensation expense for nonvested equity awards granted was $17 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. Certain employees have 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. In addition, the Company has also awarded to certain employees immediately vested shares, time-based restricted stock units and performance-based restricted stock units pursuant to the Omnibus Plan. 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. Grants of restricted stock units have been made to the Company’s non-employee directors under this plan as compensation for their services pursuant to the Citizens Financial Group, Inc. Directors Compensation Policy. 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. Eligible employees may contribute up to 10% of eligible compensation to the ESPP, up to a maximum purchase of $25,000 worth of stock in any calendar year. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except share and per-share data) 2015 2014 2015 2014 Numerator (basic and diluted): Net income $220 $189 $619 $668 Less: Preferred stock dividends 7 — 7 — Net income available to common stockholders $213 $189 $612 $668 Denominator: Weighted-average common shares outstanding - basic 530,985,255 559,998,324 538,279,222 559,998,324 Dilutive common shares: share-based awards 2,412,903 245,423 2,647,139 82,707 Weighted-average common shares outstanding - diluted 533,398,158 560,243,747 540,926,361 560,081,031 Earnings per common share: Basic $0.40 $0.34 $1.14 $1.19 Diluted 0.40 0.34 1.13 1.19 Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income 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 | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Deposit insurance $28 $23 $88 $69 Promotional expense 25 19 76 60 Settlements and operating losses 10 10 33 74 Postage and delivery 12 12 35 37 Other 58 58 173 199 Other operating expense $133 $122 $405 $439 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 29, 2015, the Company announced that RBS launched a registered underwritten public offering to sell all of its remaining shares of CFG’s common stock. On November 3, 2015, RBS completed the sale of all of its remaining shares of CFG common stock, 110,461,782 shares, or 20.9% of CFG’s outstanding common stock, to the underwriters at a price of $23.38 per share. In connection with completion of the offering, Mr. Robert Gillespie, who served as RBS’s board representative pursuant to the Separation and Shareholder Agreement between the Company and RBS, resigned from the CFG Board of Directors, effective November 3, 2015. The CFG Board of Directors appointed Christine Cumming, former First Vice President and Chief Operating Officer for the Federal Reserve Bank of New York, to the board effective as of October 1, 2015. On October 22, 2015, the Company announced a quarterly cash dividend of $0.10 per share, or $53 million , payable on November 19, 2015 to stockholders of record at the close of business on November 5, 2015. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
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 . |
Reclassifications | 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 August 2015, the FASB issued ASU No. 2015-15 “Interest - Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-Of-Credit Arrangements.” The ASU incorporates guidance from the SEC on deferral of debt issuance costs associated with line-of-credit arrangements, consistent with ASU 2015-03, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This new guidance will not have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which defers the effective date of the new revenue standard by one year. As a result of this deferral, the new revenue standard is effective for the Company beginning on January 1, 2018. The Company is currently assessing the impact of this guidance on the Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-05 “Intangibles - Goodwill and Other - Internal Use Software” which will assist entities in evaluating the accounting for fees paid by a customer in a cloud computing arrangement. The ASU, which allows for early adoption, is effective for the Company beginning on January 1, 2016. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-03 “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs”. This standard requires debt issuance costs to be presented in the consolidated balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The ASU, which allows for early adoption, is effective for the Company beginning on January 1, 2016. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. 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 is 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, which allows for early adoption, 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) | 9 Months Ended |
Sep. 30, 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: September 30, 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 9 — — 9 10 — — 10 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,340 292 (25 ) 17,607 17,683 301 (50 ) 17,934 Other/non-agency 587 3 (41 ) 549 703 4 (35 ) 672 Total mortgage-backed securities 17,927 295 (66 ) 18,156 18,386 305 (85 ) 18,606 Total debt securities available for sale 17,951 295 (66 ) 18,180 18,411 305 (85 ) 18,631 Marketable equity securities 5 — — 5 10 3 — 13 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 22 3 — 25 Total securities available for sale $17,968 $295 ($66 ) $18,197 $18,433 $308 ($85 ) $18,656 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,092 $67 ($4 ) $4,155 $3,728 $22 ($31 ) $3,719 Other/non-agency 1,193 38 — 1,231 1,420 54 — 1,474 Total securities held to maturity $5,285 $105 ($4 ) $5,386 $5,148 $76 ($31 ) $5,193 Other Investment Securities, at Fair Value Money market mutual fund $45 $— $— $45 $28 $— $— $28 Venture capital and other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $50 $— $— $50 $33 $— $— $33 Other Investment Securities, at Cost Federal Reserve Bank stock $468 $— $— $468 $477 $— $— $477 Federal Home Loan Bank stock 354 — — 354 390 — — 390 Total other investment securities, at cost $822 $— $— $822 $867 $— $— $867 |
Other than temporary impairment recognized in earnings | The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net impairment losses recognized in earnings: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 Other-than-temporary impairment: Total other-than-temporary impairment losses ($14 ) ($3 ) ($46 ) ($42 ) Portions of loss recognized in other comprehensive income (before taxes) 12 2 41 35 Net impairment losses recognized in earnings ($2 ) ($1 ) ($5 ) ($7 ) |
Schedule of unrealized loss on investments | The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: September 30, 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 $9 $— — $— $— 1 $9 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 35 2,985 (12 ) 37 960 (17 ) 72 3,945 (29 ) Other/non-agency 6 52 (1 ) 19 366 (40 ) 25 418 (41 ) Total mortgage-backed securities 41 3,037 (13 ) 56 1,326 (57 ) 97 4,363 (70 ) Total 42 $3,046 ($13 ) 56 $1,326 ($57 ) 98 $4,372 ($70 ) 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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Cumulative balance at beginning of period $62 $60 $62 $56 Credit impairments recognized in earnings on securities not previously impaired — — — — Credit impairments recognized in earnings on securities that have been previously impaired 2 1 5 7 Reductions due to increases in cash flow expectations on impaired securities (1 ) (1 ) (4 ) (3 ) Cumulative balance at end of period $63 $60 $63 $60 |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities at September 30, 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 incurring 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 — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 47 1,972 15,321 17,340 Other/non-agency — 70 9 508 587 Total debt securities available for sale 15 117 1,981 15,838 17,951 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,092 4,092 Other/non-agency — — — 1,193 1,193 Total debt securities held to maturity — — — 5,285 5,285 Total amortized cost of debt securities $15 $117 $1,981 $21,123 $23,236 Fair Value: Debt securities available for sale U.S. Treasury $15 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — 50 2,006 15,551 17,607 Other/non-agency — 71 9 469 549 Total debt securities available for sale 15 121 2,015 16,029 18,180 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,155 4,155 Other/non-agency — — — 1,231 1,231 Total debt securities held to maturity — — — 5,386 5,386 Total fair value of debt securities $15 $121 $2,015 $21,415 $23,566 |
Schedule of income recognized on investment securities | The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Taxable $154 $155 $468 $458 Non-taxable — — — — Total interest income from investment securities $154 $155 $468 $458 Realized gains and losses on AFS securities are shown below: Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (in millions) 2015 2014 2015 2014 Gains on sale of debt securities $7 $7 $29 $32 Losses on sale of debt securities (7 ) (5 ) (12 ) (5 ) Debt securities gains, net $— $2 $17 $27 Equity securities gains $— $— $3 $— |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are shown below: September 30, 2015 December 31, 2014 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $1,275 $1,294 $3,650 $3,701 Pledged against FHLB borrowed funds 1,203 1,241 1,355 1,407 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,442 3,517 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: September 30, 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 purchased under agreements to resell $1,300 ($1,300 ) $— $— $— $— Securities sold under agreements to repurchase (1,800 ) 1,300 (500 ) (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 agreements to repurchase or resell | The following table presents the Company's related activity, by collateral type and remaining contractual maturity, at September 30, 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 purchased under agreements to resell Mortgage-backed securities - Agency $— $500 $300 $500 $1,300 Total securities purchased under agreements to resell $— $500 $300 $500 $1,300 Securities sold under agreements to repurchase Mortgage-backed securities - Agency $— ($500 ) ($800 ) ($500 ) ($1,800 ) Total securities sold under agreement to repurchase $— ($500 ) ($800 ) ($500 ) ($1,800 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio follows: (in millions) September 30, 2015 December 31, 2014 Commercial $32,726 $31,431 Commercial real estate 8,678 7,809 Leases 3,865 3,986 Total commercial 45,269 43,226 Residential mortgages 12,792 11,832 Home equity loans 2,842 3,424 Home equity lines of credit 14,707 15,423 Home equity loans serviced by others (1) 1,054 1,228 Home equity lines of credit serviced by others (1) 441 550 Automobile 13,876 12,706 Student 3,846 2,256 Credit cards 1,628 1,693 Other retail 976 1,072 Total retail 52,162 50,184 Total loans and leases (2) (3) $97,431 $93,410 (1) The Company’s SBO portfolio consists of purchased 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 $420 million as of September 30, 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 $17.7 billion and $17.9 billion at September 30, 2015 and December 31, 2014 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, 37
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 9 Months Ended |
Sep. 30, 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: Nine Months Ended September 30, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2015 $544 $651 $1,195 Charge-offs (32 ) (324 ) (356 ) Recoveries 42 107 149 Net (charge-offs) recoveries 10 (217 ) (207 ) Provision charged to income 21 192 213 Allowance for loan and lease losses as of September 30, 2015 575 626 1,201 Reserve for unfunded lending commitments as of January 1, 2015 61 — 61 Credit for unfunded lending commitments (2 ) — (2 ) Reserve for unfunded lending commitments as of September 30, 2015 59 — 59 Total allowance for credit losses as of September 30, 2015 $634 $626 $1,260 Nine Months Ended September 30, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2014 $498 $723 $1,221 Charge-offs (30 ) (344 ) (374 ) Recoveries 47 84 131 Net (charge-offs) recoveries 17 (260 ) (243 ) Provision charged to income 27 196 223 Allowance for loan and lease losses as of September 30, 2014 542 659 1,201 Reserve for unfunded lending commitments as of January 1, 2014 39 — 39 Provision for unfunded lending commitments 24 — 24 Reserve for unfunded lending commitments as of September 30, 2014 63 — 63 Total allowance for credit losses as of September 30, 2014 $605 $659 $1,264 |
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: September 30, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $194 $1,170 $1,364 $205 $1,208 $1,413 Formula-based evaluation 45,075 50,992 96,067 43,021 48,976 91,997 Total $45,269 $52,162 $97,431 $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: September 30, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $23 $104 $127 $20 $109 $129 Formula-based evaluation 611 522 1,133 585 542 1,127 Allowance for credit losses $634 $626 $1,260 $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: September 30, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,005 $924 $712 $85 $32,726 Commercial real estate 8,326 207 103 42 8,678 Leases 3,796 22 47 — 3,865 Total $43,127 $1,153 $862 $127 $45,269 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: September 30, 2015 (in millions) Current 1-29 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,358 $107 $78 $249 $12,792 Home equity loans 2,478 179 46 139 2,842 Home equity lines of credit 14,060 401 77 169 14,707 Home equity loans serviced by others (1) 956 58 21 19 1,054 Home equity lines of credit serviced by others (1) 344 56 14 27 441 Automobile 12,859 858 130 29 13,876 Student 3,689 90 28 39 3,846 Credit cards 1,543 51 19 15 1,628 Other retail 902 55 15 4 976 Total $49,189 $1,855 $428 $690 $52,162 (1) The Company’s SBO portfolio consists of purchased 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 purchased 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: September 30, 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 $81 $7 $88 $113 $1 $114 Commercial real estate 42 — 42 50 — 50 Leases — — — — — — Total commercial 123 7 130 163 1 164 Residential mortgages 324 — 324 345 — 345 Home equity loans 200 — 200 203 — 203 Home equity lines of credit 214 — 214 257 — 257 Home equity loans serviced by others (1) 39 — 39 47 — 47 Home equity lines of credit serviced by others (1) 31 — 31 25 — 25 Automobile 38 — 38 21 — 21 Student 32 7 39 11 6 17 Credit cards 15 — 15 16 1 17 Other retail 3 1 4 5 — 5 Total retail 896 8 904 930 7 937 Total $1,019 $15 $1,034 $1,093 $8 $1,101 (1) The Company’s SBO portfolio consists of purchased 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) September 30, 2015 December 31, 2014 Nonperforming assets, net of valuation allowance: Commercial $1 $3 Retail 38 39 Nonperforming assets, net of valuation allowance $39 $42 |
Summary of key performance indicators | A summary of key performance indicators is as follows: September 30, 2015 December 31, 2014 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.13 % 0.18 % Nonperforming retail loans as a percentage of total loans and leases 0.93 1.00 Total nonperforming loans and leases as a percentage of total loans and leases 1.06 % 1.18 % Nonperforming commercial assets as a percentage of total assets 0.10 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.69 0.73 Total nonperforming assets as a percentage of total assets 0.79 % 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): September 30, 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 $22 $88 $110 $57 $114 $171 Commercial real estate 3 42 45 26 50 76 Leases — — — 3 — 3 Total commercial 25 130 155 86 164 250 Residential mortgages 78 249 327 97 269 366 Home equity loans 46 139 185 60 145 205 Home equity lines of credit 77 169 246 73 198 271 Home equity loans serviced by others (1) 21 19 40 26 23 49 Home equity lines of credit serviced by others (1) 14 27 41 10 19 29 Automobile 130 29 159 93 16 109 Student 28 39 67 25 17 42 Credit cards 19 15 34 22 17 39 Other retail 15 4 19 18 4 22 Total retail 428 690 1,118 424 708 1,132 Total $453 $820 $1,273 $510 $872 $1,382 (1) The Company’s SBO portfolio consists of purchased 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: September 30, 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 $84 $21 $70 $174 $154 Commercial real estate 23 2 17 37 40 Total commercial 107 23 87 211 194 Residential mortgages 119 16 311 593 430 Home equity loans 94 12 190 351 284 Home equity lines of credit 22 2 120 174 142 Home equity loans serviced by others (1) 53 8 26 91 79 Home equity lines of credit serviced by others (1) 3 1 7 14 10 Automobile 3 — 11 18 14 Student 164 48 1 166 165 Credit cards 29 12 — 29 29 Other retail 15 5 2 20 17 Total retail 502 104 668 1,456 1,170 Total $609 $127 $755 $1,667 $1,364 (1) The Company’s SBO portfolio consists of purchased 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 purchased 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 September 30, 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $126 $2 $138 Commercial real estate — 35 — 62 Total commercial 1 161 2 200 Residential mortgages 4 428 4 445 Home equity loans 2 277 1 262 Home equity lines of credit 1 142 1 158 Home equity loans serviced by others (1) 1 79 1 95 Home equity lines of credit serviced by others (1) — 10 — 11 Automobile — 12 — 9 Student 1 165 2 161 Credit cards — 29 1 34 Other retail 1 17 1 21 Total retail 10 1,159 11 1,196 Total $11 $1,320 $13 $1,396 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. Nine Months Ended September 30, 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $133 $2 $141 Commercial real estate 1 45 1 70 Total commercial 3 178 3 211 Residential mortgages 12 423 11 434 Home equity loans 7 263 5 248 Home equity lines of credit 3 140 3 153 Home equity loans serviced by others (1) 3 80 4 94 Home equity lines of credit serviced by others (1) — 9 — 11 Automobile — 11 — 8 Student 5 160 6 154 Credit cards 1 28 2 34 Other retail 1 18 1 21 Total retail 32 1,132 32 1,157 Total $35 $1,310 $35 $1,368 (1) The Company’s SBO portfolio consists of purchased 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 September 30, 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 September 30, 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 4 $— $— 50 $7 $7 Commercial real estate — — — — — — Total commercial 4 — — 50 7 7 Residential mortgages 24 4 4 8 1 1 Home equity loans 30 2 2 72 14 14 Home equity lines of credit 1 — — 2 — — Home equity loans serviced by others (3) 2 — — — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 33 — 1 3 — — Student — — — — — — Credit cards 547 3 3 — — — Other retail 2 — — — — — Total retail 639 9 10 85 15 15 Total 643 $9 $10 135 $22 $22 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 8 $28 $28 $— $1 Commercial real estate — — — — — Total commercial 8 28 28 — 1 Residential mortgages 78 9 9 — — Home equity loans 85 8 7 — — Home equity lines of credit 58 4 3 — — Home equity loans serviced by others (3) 26 2 1 — — Home equity lines of credit serviced by others (3) 12 1 1 — — Automobile 182 2 3 — 1 Student 151 2 3 1 — Credit card — — — — — Other retail 4 — — — — Total retail 596 28 27 1 1 Total 604 $56 $55 $1 $2 (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 purchased 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 September 30, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to September 30, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 5 $— $— 10 $2 $2 Commercial real estate 1 — — 3 1 1 Total commercial 6 — — 13 3 3 Residential mortgages 28 4 4 10 2 1 Home equity loans 24 2 3 8 — 2 Home equity lines of credit 5 — — 69 4 3 Home equity loans serviced by others (3) 8 — — — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 7 — — 4 — — Student — — — — — — Credit cards 513 3 3 — — — Other retail — — — — — — Total retail 585 9 10 91 6 6 Total 591 $9 $10 104 $9 $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 3 $— $— $— $— Commercial real estate — — — — — Total commercial 3 — — — — Residential mortgages 102 12 11 (1 ) 1 Home equity loans 266 15 15 — — Home equity lines of credit 98 7 6 — 1 Home equity loans serviced by others (3) 26 1 1 (1 ) — Home equity lines of credit serviced by others (3) 9 1 1 — — Automobile 256 5 3 — 1 Student 346 6 6 1 — Credit card — — — — — Other retail 6 — — — 1 Total retail 1,109 47 43 (1 ) 4 Total 1,112 $47 $43 ($1 ) $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased 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 nine months ended September 30, 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 September 30, 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 18 $3 $3 114 $19 $19 Commercial real estate 1 — — — — — Total commercial 19 3 3 114 19 19 Residential mortgages 77 13 13 27 5 5 Home equity loans 77 4 4 158 30 30 Home equity lines of credit 1 — — 5 — — Home equity loans serviced by others (3) 24 1 1 — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 71 1 2 5 — — Student — — — — — — Credit cards 1,781 10 10 — — — Other retail 2 — — — — — Total retail 2,033 29 30 195 35 35 Total 2,052 $32 $33 309 $54 $54 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 12 $30 $30 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 13 34 34 (1 ) 1 Residential mortgages 184 19 19 (1 ) — Home equity loans 379 25 24 — — Home equity lines of credit 271 18 15 — 2 Home equity loans serviced by others (3) 97 5 4 — 1 Home equity lines of credit serviced by others (3) 34 2 2 — — Automobile 651 10 9 — 2 Student 901 16 17 4 — Credit Card — — — 1 — Other retail 19 — — — — Total retail 2,536 95 90 4 5 Total 2,549 $129 $124 $3 $6 (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 purchased 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 nine months ended September 30, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to September 30, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 20 $7 $7 38 $4 $4 Commercial real estate 3 — — 5 1 1 Total commercial 23 7 7 43 5 5 Residential mortgages 94 14 14 32 5 4 Home equity loans 92 6 7 76 4 5 Home equity lines of credit 7 — — 245 15 13 Home equity loans serviced by others (3) 26 1 1 — — — Home equity lines of credit serviced by others (3) 3 — — 1 — — Automobile 62 1 1 11 — — Student — — — — — — Credit cards 1,698 9 9 — — — Other retail 3 — — — — — Total retail 1,985 31 32 365 24 22 Total 2,008 $38 $39 408 $29 $27 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 5 $— $— ($8 ) $— Commercial real estate — — — — — Total commercial 5 — — (8 ) — Residential mortgages 341 40 39 (3 ) 1 Home equity loans 789 49 47 (1 ) 2 Home equity lines of credit 257 18 15 — 4 Home equity loans serviced by others (3) 111 4 4 (1 ) — Home equity lines of credit serviced by others (3) 33 2 2 — — Automobile 673 11 7 — 3 Student 1,199 22 22 2 — Credit Card — — — — — Other retail 35 1 1 — 1 Total retail 3,438 147 137 (3 ) 11 Total 3,443 $147 $137 ($11 ) $11 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased 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 September 30, 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 September 30, 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 September 30, 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 7 $1 5 $4 Commercial real estate — — 1 — Total commercial 7 1 6 4 Residential mortgages 37 7 91 11 Home equity loans 47 6 104 8 Home equity lines of credit 26 3 52 3 Home equity loans serviced by others (1) 11 1 17 — Home equity lines of credit serviced by others (1) 10 1 6 — Automobile 24 — 30 — Student 33 1 93 2 Credit cards 102 1 131 1 Other retail 1 — 2 — Total retail 291 20 526 25 Total 298 $21 532 $29 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. The table below summarizes TDRs that defaulted during the nine months ended September 30, 2015 and 2014 within 12 months of their modification date. Nine Months Ended September 30, 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 21 $2 22 $7 Commercial real estate — — 2 1 Total commercial 21 2 24 8 Residential mortgages 120 18 226 27 Home equity loans 130 12 259 19 Home equity lines of credit 98 6 191 9 Home equity loans serviced by others (1) 34 2 51 1 Home equity lines of credit serviced by others (1) 17 1 18 — Automobile 66 1 88 1 Student 142 3 284 5 Credit cards 304 2 444 3 Other retail 4 — 11 — Total retail 915 45 1,572 65 Total 936 $47 1,596 $73 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines 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: September 30, 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 $651 $1,100 $874 $— $2,625 Interest only/negative amortization 1,024 — — — 1,024 Low introductory rate — 2 — 95 97 Multiple characteristics and other 15 — — — 15 Total $1,690 $1,102 $874 $95 $3,761 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) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying value of goodwill for the nine months ended September 30, 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 September 30, 2014 $2,136 $4,740 $6,876 Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at September 30, 2015 $2,136 $4,740 $6,876 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Mortgage Banking [Abstract] | |
Schedule of valuation allowance for impairment of recognized servicing assets | Changes related to MSRs were as follows: As of and for the Nine Months Ended September 30, (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 20 13 Amortization (28 ) (32 ) Carrying amount before valuation allowance 176 189 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (6 ) (8 ) Balance at end of period 12 15 Net carrying value of MSRs $164 $174 |
Servicing asset at amortized cost | Changes related to MSRs were as follows: As of and for the Nine Months Ended September 30, (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 20 13 Amortization (28 ) (32 ) Carrying amount before valuation allowance 176 189 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (6 ) (8 ) Balance at end of period 12 15 Net carrying value of MSRs $164 $174 |
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) September 30, 2015 December 31, 2014 Fair value $177 $179 Weighted average life (in years) 5.2 5.2 Weighted average constant prepayment rate 12.3% 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: Nine Months Ended September 30, 2015 2014 Weighted average life (in years) 5.7 5.7 Weighted average constant prepayment rate 10.8% 11.7% Weighted average discount rate 9.7% 10.3% |
Schedule of the impact to fair value of an adverse change in key economic assumptions | (in millions) September 30, 2015 December 31, 2014 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $6 $9 Decline in fair value from a 100 basis point decrease in interest rates $12 $15 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2015 December 31, 2014 Federal funds purchased $— $574 Securities sold under agreements to repurchase 1,293 3,702 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,861 6,253 Total short-term borrowed funds $7,154 $10,529 Key data related to short-term borrowed funds is presented in the following table: (dollars in millions) As of and for the Nine Months Ended September 30, 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 0.25 % 0.14 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.29 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 $3,947 $5,699 Other short-term borrowed funds (primarily current portion of FHLB advances) 6,169 5,640 Weighted-average interest rate during the period: Federal funds purchased and securities sold under agreements to repurchase 0.22 % 0.12 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.27 0.25 |
Schedule of long-term borrowed funds | The following is a summary of the Company’s long-term borrowed funds: (in millions) September 30, 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 4.350% fixed rate subordinated debt, due 2025 250 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (2) (3) 755 750 2.450% senior unsecured notes, due 2019 (2) (3) 763 746 Federal Home Loan advances due through 2033 18 772 Other 17 24 Total long-term borrowed funds $4,153 $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) $1.5 billion principal balance of unsecured notes presented net of $5 million and $13 million hedge of interest rate risk on medium term debt using interest rate swaps at September 30, 2015 . 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 September 30, 2015 : Year (in millions) 2015 or on demand $— 2016 — 2017 761 2018 7 2019 764 2020 and thereafter 2,621 Total $4,153 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 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: Nine Months Ended September 30, Qualified Plan Non-Qualified Plan Total (in millions) 2015 2014 2015 2014 2015 2014 Service cost $2 $3 $— $— $2 $3 Interest cost 33 33 3 3 36 36 Expected return on plan assets (55 ) (53 ) — — (55 ) (53 ) Amortization of actuarial loss 10 6 2 1 12 7 Net periodic pension (income) cost ($10 ) ($11 ) $5 $4 ($5 ) ($7 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, 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 $11,000 $173 $68 $5,750 $24 $99 Derivatives not designated as hedging instruments: Interest rate swaps 31,628 664 580 31,848 589 501 Foreign exchange contracts 7,783 163 158 8,359 170 164 Other contracts 1,081 10 10 730 7 9 Total derivatives not designated as hedging instruments 837 748 766 674 Gross derivative fair values 1,010 816 790 773 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (172 ) (172 ) (161 ) (161 ) Less: Cash collateral applied (2) — (3 ) — — Total net derivative fair values presented in the Consolidated Balance Sheets (3) $838 $641 $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 September 30, 2015 Nine Months Ended September 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $16 ($16 ) $— $22 ($22 ) $— |
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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Effective portion of gain recognized in OCI (1) $78 $27 $174 $217 Amounts reclassified from OCI to interest income (2) 22 18 57 54 Amounts reclassified from OCI to interest expense (2) (15 ) (23 ) (44 ) (79 ) (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. |
Schedule of effect of derivative Instruments on net income | The following table summarizes certain information related to the Company’s customer derivatives and economic hedges: The Effect of Customer Derivatives and Economic Hedges on Net Income Amounts Recognized in Noninterest Income for the Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Customer derivative contracts Customer interest rate contracts (1) $85 $2 $149 $151 Customer foreign exchange contracts (1) (4 ) (60 ) (21 ) (54 ) Residential loan commitments (2) 9 (4 ) 2 4 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (75 ) 5 (126 ) (130 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 5 59 21 52 Forward sale contracts (2) (4 ) 2 (2 ) (2 ) Total $16 $4 $23 $21 (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 (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 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) September 30, 2015 December 31, 2014 Commitment amount: Undrawn commitments to extend credit $55,506 $55,899 Financial standby letters of credit 2,077 2,315 Performance letters of credit 45 65 Commercial letters of credit 63 75 Marketing rights 47 51 Risk participation agreements 39 19 Residential mortgage loans sold with recourse 11 11 Total $57,788 $58,435 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of inter-company borrowed funds | The following is a summary of borrowed funds from RBS: (dollars in millions) Interest Rate Maturity Date September 30, 2015 December 31, 2014 Subordinated debt 5.158% June 2023 $333 $333 4.771% October 2023 333 333 4.691% January 2024 334 334 4.153% July 2024 333 333 4.023% October 2024 333 333 4.082% January 2025 334 334 |
Schedule of related party transactions, recorded interest expense | The following table presents total interest expense recorded on subordinated debt with RBS: Three Months Ended September 30, Nine Months Ended September 30, 2015 (in millions) 2015 2014 2015 2014 Interest expense on subordinated debt $19 $17 $59 $42 |
Schedule of related party swap agreements | The following table presents a summary of these swap agreements: September 30, 2015 December 31, 2014 (dollars in millions) Notional Fixed Rates Maturity Date Notional Fixed Rates Maturity Date Receive-fixed swaps $5,200 1.66% to 2.04% 2019 - 2023 $4,750 1.66% to 2.04% 2019 - 2023 Pay-fixed swaps 2,500 2.03% to 4.30% 2016 - 2023 1,000 4.18% to 4.30% 2016 Total $7,700 $5,750 |
Schedule of related party transactions effect on net interest income (expense) | The following table presents net interest income (expense) recorded by the Company in relation to interest rate swap agreements with RBS: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party interest rate swap agreements on net interest income $3 ($1 ) $9 ($22 ) |
Schedule of related party transactions, recorded income (expense) | The following table presents the income (expense) recorded by the Company in relation to the interest rate swap and cap agreements and foreign exchange contracts with RBS: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party interest rate swap and cap agreements on other income ($75 ) $5 ($125 ) ($130 ) The effect of related party foreign exchange contracts on foreign exchange and trade finance fees 5 59 21 52 |
Schedule of related party fees effect on income | The following table presents the effect of the related party fees on total fee income and outside services: Three Months Ended Nine Months Ended (in millions) 2015 2014 2015 2014 The effect of related party service and referral fees, net of occupancy expense, on total fee income $2 $5 $9 $13 The effect of related party service fees on outside services 3 3 8 19 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale | The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance loans held for sale measured at fair value: September 30, 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 $269 $261 $8 $213 $206 $7 Commercial and commercial real estate loans held for sale, at fair value 100 100 — 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 September 30, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $18,156 $— $18,156 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury 15 15 — — Total securities available for sale 18,197 15 18,182 — Loans held for sale: Residential loans held for sale 269 — 269 — Commercial loans held for sale 100 — 100 — Total loans held for sale 369 — 369 — Derivative assets: Interest rate swaps 837 — 837 — Foreign exchange contracts 163 — 163 — Other contracts 10 — 10 — Total derivative assets 1,010 — 1,010 — Other investment securities, at fair value: Money market mutual fund 45 45 — — Venture capital investments and other investments 5 — 5 — Total other investment securities, at fair value 50 45 5 — Total assets $19,626 $60 $19,566 $— Derivative liabilities: Interest rate swaps $648 $— $648 $— Foreign exchange contracts 158 — 158 — Other contracts 10 — 10 — Total derivative liabilities 816 — 816 — Total liabilities $816 $— $816 $— 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 — Loans held for sale: 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 — Other investment securities, at fair value: Money market mutual fund 28 28 — — Venture capital investments and other investments 5 — — 5 Total other investment securities, at fair value 33 28 — 5 Total assets $19,735 $51 $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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Beginning of period balance $1 $6 $5 $5 Purchases, issuances, sales and settlements: Purchases — — 1 — Sales — — — — Settlements — — — — Net (losses) gains (1 ) — (1 ) 1 Transfers from Level 3 to Level 2 — — (5 ) — Balance as of period end $— $6 $— $6 Net unrealized gain included in net income for the year relating to assets held at period end $— $— $— $— |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Impaired collateral-dependent loans ($9 ) ($5 ) ($22 ) ($99 ) MSRs (1 ) 5 6 8 Foreclosed assets — (1 ) (2 ) (2 ) |
Fair value of assets and liabilities measured on a nonrecurring basis | The following tables present assets and liabilities measured at fair value on a nonrecurring basis: September 30, 2015 December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $107 $— $107 $— $102 $— $102 $— MSRs 177 — — 177 166 — — 166 Foreclosed assets 36 — 36 — 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: September 30, 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 $5,285 $5,386 $— $— $5,285 $5,386 $— $— Other investment securities, at cost 822 822 — — 822 822 — — Other loans held for sale 51 51 — — — — 51 51 Loans and leases 97,431 97,314 — — 107 107 97,324 97,207 Financial Liabilities: Deposits 101,866 101,869 — — 101,866 101,869 — — Federal funds purchased and securities sold under agreements to repurchase 1,293 1,294 — — 1,293 1,294 — — Other short-term borrowed funds 5,861 5,861 — — 5,861 5,861 — — Long-term borrowed funds 4,153 4,261 — — 4,153 4,261 — — 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, at cost 867 867 — — 867 867 — — 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) | 9 Months Ended |
Sep. 30, 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 September 30, 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 held to maturity 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 September 30, 2015 Basel III Common equity tier 1 capital $13,200 11.8 % $5,052 4.5 % $7,298 6.5 % Tier 1 capital to risk-weighted assets 13,447 12.0 6,737 6.0 8,982 8.0 Total capital to risk-weighted assets 17,307 15.4 8,982 8.0 11,228 10.0 Tier 1 capital to average assets (leverage) 13,447 10.4 5,173 4.0 6,467 5.0 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 4.0 % $6,358 6.0 % Total capital to risk-weighted assets 16,781 15.8 8,477 8.0 10,596 10.0 Tier 1 capital to average assets (leverage) 13,173 10.6 4,982 4.0 6,227 5.0 |
EXIT COSTS AND RESTRUCTURING 47
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 9 Months Ended |
Sep. 30, 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 5 18 6 29 Reversals (2 ) (1 ) — (3 ) Utilization (10 ) (16 ) (6 ) (32 ) Reserve balance as of September 30, 2015 $16 $19 $3 $38 |
RECLASSIFICATIONS OUT OF ACCU48
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 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 137 127 — 264 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (loss) 16 (13 ) (32 ) (29 ) Net other comprehensive income 153 92 (32 ) 213 Balance at September 30, 2014 ($145 ) $1 ($291 ) ($435 ) Balance at January 1, 2015 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income before reclassifications 108 41 — 149 Other-than-temporary impairment not recognized in earnings on securities — (26 ) — (26 ) Amounts reclassified from other comprehensive (loss) income (8 ) (9 ) 7 (10 ) Net other comprehensive income 100 6 7 113 Balance at September 30, 2015 $31 $80 ($370 ) ($259 ) |
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 September 30, Nine Months Ended September 30, (in millions) 2015 2014 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: $22 $18 $57 $54 Interest income (15 ) (23 ) (44 ) (79 ) Interest expense 7 (5 ) 13 (25 ) Income before income tax expense 3 (2 ) 5 (9 ) Income tax expense $4 ($3 ) $8 ($16 ) Net income Reclassification of net securities gains (losses) to net income: $2 $2 $19 $27 Securities gains, net (2 ) (1 ) (5 ) (7 ) Net impairment losses recognized in earnings — 1 14 20 Income before income tax expense — — 5 7 Income tax expense $— $1 $9 $13 Net income Reclassification of changes related to defined benefit pension plans: ($3 ) $52 ($10 ) $49 Salaries and employee benefits (3 ) 52 (10 ) 49 Income before income tax expense — 18 (3 ) 17 Income tax expense ($3 ) $34 ($7 ) $32 Net income Total reclassification gains (losses) $1 $32 $10 $29 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Net interest income (includes $7, ($5), $13 and ($25) of AOCI reclassifications, respectively) $856 $820 $2,532 $2,461 Provision for credit losses 76 77 211 247 Noninterest income (includes $0, $1, $14 and $20 of AOCI reclassifications, respectively) 353 341 1,060 1,339 Noninterest expense (includes $3, ($52), $10 and ($49) of AOCI reclassifications, respectively) 798 810 2,449 2,568 Income before income tax expense 335 274 932 985 Income tax expense (includes $3, $16, $7 and $15 income tax net expense from reclassification items, respectively) 115 85 313 317 Net income $220 $189 $619 $668 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended September 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $556 $299 $1 $856 Noninterest income 235 100 18 353 Total revenue 791 399 19 1,209 Noninterest expense 623 175 — 798 Profit before provision for credit losses 168 224 19 411 Provision for credit losses 64 3 9 76 Income before income tax expense 104 221 10 335 Income tax expense 36 76 3 115 Net income $68 $145 $7 $220 Total average assets $53,206 $43,113 $38,784 $135,103 As of and for the Three Months September 30, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $532 $270 $18 $820 Noninterest income 226 104 11 341 Total revenue 758 374 29 1,161 Noninterest expense 609 162 39 810 Profit (loss) before provision for credit losses 149 212 (10 ) 351 Provision for credit losses 66 — 11 77 Income (loss) before income tax expense (benefit) 83 212 (21 ) 274 Income tax expense (benefit) 29 73 (17 ) 85 Net income (loss) 54 139 (4 ) 189 Total average assets $49,012 $38,854 $40,825 $128,691 As of and for the Nine Months Ended September 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,633 $861 $38 $2,532 Noninterest income 684 308 68 1,060 Total revenue 2,317 1,169 106 3,592 Noninterest expense 1,832 529 88 2,449 Profit before provision for credit losses 485 640 18 1,143 Provision for credit losses 187 (11 ) 35 211 Income (loss) before income tax expense (benefit) 298 651 (17 ) 932 Income tax expense (benefit) 103 224 (14 ) 313 Net income (loss) $195 $427 ($3 ) $619 Total average assets $52,438 $42,451 $39,766 $134,655 As of and for the Nine Months Ended September 30, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,615 $790 $56 $2,461 Noninterest income 681 318 340 1,339 Total revenue 2,296 1,108 396 3,800 Noninterest expense 1,902 472 194 2,568 Profit before provision for credit losses 394 636 202 1,232 Provision for credit losses 195 (7 ) 59 247 Income before income tax expense 199 643 143 985 Income tax expense 69 222 26 317 Net income 130 421 117 668 Total average assets $48,398 $37,951 $40,249 $126,598 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except share and per-share data) 2015 2014 2015 2014 Numerator (basic and diluted): Net income $220 $189 $619 $668 Less: Preferred stock dividends 7 — 7 — Net income available to common stockholders $213 $189 $612 $668 Denominator: Weighted-average common shares outstanding - basic 530,985,255 559,998,324 538,279,222 559,998,324 Dilutive common shares: share-based awards 2,412,903 245,423 2,647,139 82,707 Weighted-average common shares outstanding - diluted 533,398,158 560,243,747 540,926,361 560,081,031 Earnings per common share: Basic $0.40 $0.34 $1.14 $1.19 Diluted 0.40 0.34 1.13 1.19 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2015 2014 2015 2014 Deposit insurance $28 $23 $88 $69 Promotional expense 25 19 76 60 Settlements and operating losses 10 10 33 74 Postage and delivery 12 12 35 37 Other 58 58 173 199 Other operating expense $133 $122 $405 $439 |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) | Aug. 22, 2014 |
Basis of Presentation [Abstract] | |
Stock split | 165,582 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Credit impairments recognized in earnings | $ 2,000,000 | $ 1,000,000 | $ 5,000,000 | $ 7,000,000 | ||||
Impaired debt securities sold | 0 | 0 | 0 | 0 | ||||
Pretax non-credit related losses were deferred in OCI | 41,000,000 | 35,000,000 | ||||||
Mortgage-backed securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Value of held-to-maturity security sold | 73,000,000 | 73,000,000 | ||||||
Gain recognized on sale of held-to-maturity security | 2,000,000 | |||||||
Available-for-sale Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | 63,000,000 | 60,000,000 | 63,000,000 | 60,000,000 | $ 62,000,000 | $ 62,000,000 | $ 60,000,000 | $ 56,000,000 |
Credit impairments recognized in earnings | 2,000,000 | 1,000,000 | 5,000,000 | 7,000,000 | ||||
Reductions due to increases in cash flow expectations on impaired securities | 1,000,000 | 1,000,000 | 4,000,000 | 3,000,000 | ||||
Held-to-maturity Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Securities Available-for-sale, Amortized Cost | $ 17,968 | $ 18,433 |
Securities Available-for-sale, Gross Unrealized Gains | 295 | 308 |
Securities Available-for-sale, Gross Unrealized Losses | (66) | (85) |
Securities Available-for-sale, Fair Value | 18,197 | 18,656 |
Securities Held-to-maturity, Amortized Cost | 5,285 | 5,148 |
Securities Held-to-maturity, Gross Unrealized Gain | 105 | 76 |
Securities Held-to-maturity, Gross Unrealized Losses | (4) | (31) |
Securities held-to-maturity, Fair Value | 5,386 | 5,193 |
Money market mutual fund, Amortized Cost | 45 | 28 |
Money market mutual fund, Gross Unrealized Gains | 0 | 0 |
Money market mutual fund, Gross Unrealized Losses | 0 | 0 |
Money market mutual fund, Fair Value | 45 | 28 |
Total other investment securities, at fair value, Amortized Cost | 50 | 33 |
Total other investments securities, at fair value, at cost, Gross Unrealized Gains | 0 | 0 |
Total other investments securities, at fair value, Gross Unrealized Losses | 0 | 0 |
Other investment securities, at fair value | 50 | 33 |
Total other investment securities, at cost | 822 | 867 |
Total other investment securities, at cost, Gross Unrealized Gain | 0 | 0 |
Total other investment securities, at cost, Gross Unrealized Losses | 0 | 0 |
Total other investment securities, at cost, Fair Value | 822 | 867 |
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 | 9 | 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 | 9 | 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 | 17,340 | 17,683 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 292 | 301 |
Debt Securities Available-for-sale, Gross Unrealized Losses | (25) | (50) |
Debt Securities Available-for-sale, Fair Value | 17,607 | 17,934 |
Securities Held-to-maturity, Amortized Cost | 4,092 | 3,728 |
Securities Held-to-maturity, Gross Unrealized Gain | 67 | 22 |
Securities Held-to-maturity, Gross Unrealized Losses | (4) | (31) |
Securities held-to-maturity, Fair Value | 4,155 | 3,719 |
Other/non-agency | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Debt Securities Available-for-sale, Amortized Cost | 587 | 703 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 3 | 4 |
Debt Securities Available-for-sale, Gross Unrealized Losses | (41) | (35) |
Debt Securities Available-for-sale, Fair Value | 549 | 672 |
Securities Held-to-maturity, Amortized Cost | 1,193 | 1,420 |
Securities Held-to-maturity, Gross Unrealized Gain | 38 | 54 |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 |
Securities held-to-maturity, Fair Value | 1,231 | 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 | 17,927 | 18,386 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 295 | 305 |
Debt Securities Available-for-sale, Gross Unrealized Losses | (66) | (85) |
Debt Securities Available-for-sale, Fair Value | 18,156 | 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 | 17,951 | 18,411 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 295 | 305 |
Debt Securities Available-for-sale, Gross Unrealized Losses | (66) | (85) |
Debt Securities Available-for-sale, Fair Value | 18,180 | 18,631 |
Marketable equity securities | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Equity Securities Available-for-sale, Amortized Cost | 5 | 10 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 5 | 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 | 17 | 22 |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 3 |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Equity Securities Available-for-sale, Fair Value | 17 | 25 |
Venture capital and other investments | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | ||
Venture Capital and Other Investments, Amortized Cost | 5 | 5 |
Venture Capital and Other Investments, Gross Unrealized Gain | 0 | 0 |
Venture Capital and Other Investments, Gross Unrealized Loss | 0 | 0 |
Venture Capital and Other Investments, Fair Value | 5 | 5 |
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 | 354 | 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 | $ 354 | $ 390 |
SECURITIES - Other than tempora
SECURITIES - Other than temporary impairment recognized in earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Total other-than-temporary impairment losses | $ (14) | $ (3) | $ (46) | $ (42) |
Portions of loss recognized in other comprehensive income (before taxes) | 12 | 2 | 41 | 35 |
Net impairment losses recognized in earnings | $ (2) | $ (1) | $ (5) | $ (7) |
SECURITIES - Schedule of Inve56
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Sep. 30, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Number of Issues | Securities | 42 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 3,046 | $ 3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (13) | $ (26) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 56 | 70 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 1,326 | $ 2,173 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (57) | $ (90) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 98 | 151 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 4,372 | $ 5,535 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (70) | $ (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 | Securities | 1 | 0 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 9 | $ 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 | Securities | 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 | Securities | 1 | 1 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 9 | $ 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 | Securities | 35 | 75 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 2,985 | $ 3,282 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (12) | $ (24) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 37 | 52 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 960 | $ 1,766 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (17) | $ (57) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 72 | 127 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 3,945 | $ 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 | Securities | 6 | 6 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 52 | $ 80 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (1) | $ (2) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 19 | 17 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 366 | $ 397 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (40) | $ (33) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 25 | 23 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 418 | $ 477 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (41) | $ (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 | Securities | 41 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 3,037 | $ 3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (13) | $ (26) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 56 | 69 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 1,326 | $ 2,163 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (57) | $ (90) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 97 | 150 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 4,363 | $ 5,525 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (70) | $ (116) |
SECURITIES - Schedule of Cumula
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Credit impairments recognized in earnings on securities that have been previously impaired | $ 2 | $ 1 | $ 5 | $ 7 |
Available-for-sale Securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative balance at beginning of period | 62 | 60 | 62 | 56 |
Credit impairments recognized in earnings on securities not previously impaired | 0 | 0 | 0 | 0 |
Credit impairments recognized in earnings on securities that have been previously impaired | 2 | 1 | 5 | 7 |
Reductions due to increases in cash flow expectations on impaired securities | (1) | (1) | (4) | (3) |
Cumulative balance at end of period | $ 63 | $ 60 | $ 63 | $ 60 |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Sep. 30, 2015USD ($) |
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 | 117 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,981 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,838 |
Amortized Cost, Debt securities available for sale, Total | 17,951 |
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 | 5,285 |
Amortized Cost, Debt securities held to maturity, Total | 5,285 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 15 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 117 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,981 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,123 |
Total amortized cost of debt securities, Total | 23,236 |
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 | 121 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,015 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,029 |
Fair Value, Debt securities available for sale, Total | 18,180 |
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 | 5,386 |
Fair Value, Debt securities held to maturity, Total | 5,386 |
Total fair value of debt securities, Maturity of 1 Year or Less | 15 |
Total fair value of debt securities, Maturity of 1-5 Years | 121 |
Total fair value of debt securities, Maturity of 5-10 Years | 2,015 |
Total fair value of debt securities, Maturity After 10 Years | 21,415 |
Total fair value of debt securities, Total | 23,566 |
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 | 9 |
Amortized Cost, Debt securities available for sale, Total | 9 |
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 | 9 |
Fair Value, Debt securities available for sale, Total | 9 |
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 | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 47 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,972 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,321 |
Amortized Cost, Debt securities available for sale, Total | 17,340 |
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 | 4,092 |
Amortized Cost, Debt securities held to maturity, Total | 4,092 |
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 | 50 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2,006 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,551 |
Fair Value, Debt securities available for sale, Total | 17,607 |
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 | 4,155 |
Fair Value, Debt securities held to maturity, Total | 4,155 |
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 | 70 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 9 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 508 |
Amortized Cost, Debt securities available for sale, Total | 587 |
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 | 1,193 |
Amortized Cost, Debt securities held to maturity, Total | 1,193 |
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 | 71 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 9 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 469 |
Fair Value, Debt securities available for sale, Total | 549 |
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 | 1,231 |
Fair Value, Debt securities held to maturity, Total | $ 1,231 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | ||||
Taxable | $ 154 | $ 155 | $ 468 | $ 458 |
Non-taxable | 0 | 0 | 0 | 0 |
Total interest income from investment securities | 154 | 155 | 468 | 458 |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | 7 | 7 | 29 | 32 |
Losses on sale of debt securities | (7) | (5) | (12) | (5) |
Debt securities gains, net | 0 | 2 | 17 | 27 |
Equity securities gains | $ 0 | $ 0 | $ 3 | $ 0 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 1,275 | $ 3,650 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,203 | 1,355 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,442 | 3,453 |
Pledged against repurchase agreements, Fair Value | 1,294 | 3,701 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,241 | 1,407 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 3,517 | $ 3,520 |
SECURITIES - Schedule of Balanc
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities purchased under agreements to resell, gross | $ 1,300 | $ 0 |
Securities purchased under agreements to resell, offset | (1,300) | 0 |
Securities purchased under agreements to resell, net | 0 | 0 |
Securities sold under agreements to repurchase, gross | (1,800) | (2,600) |
Securities sold under agreements to repurchase, offset | 1,300 | 0 |
Securities sold under agreements to repurchase, net | $ (500) | $ (2,600) |
SECURITIES - Schedule of Secu62
SECURITIES - Schedule of Securities Under Agreements to Repurchase or Resell Remaining Contractual Maturity (Details) $ in Millions | Sep. 30, 2015USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | $ 1,300 |
Securities sold under agreements to repurchase | (1,800) |
Mortgage-backed securities - Agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 1,300 |
Securities sold under agreements to repurchase | (1,800) |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 0 |
Securities sold under agreements to repurchase | 0 |
Overnight and Continuous | Mortgage-backed securities - Agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 0 |
Securities sold under agreements to repurchase | 0 |
Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 500 |
Securities sold under agreements to repurchase | (500) |
Up to 30 Days | Mortgage-backed securities - Agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 500 |
Securities sold under agreements to repurchase | (500) |
30-90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 300 |
Securities sold under agreements to repurchase | (800) |
30-90 Days | Mortgage-backed securities - Agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 300 |
Securities sold under agreements to repurchase | (800) |
Greater Than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 500 |
Securities sold under agreements to repurchase | (500) |
Greater Than 90 Days | Mortgage-backed securities - Agency | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities purchased under agreements to resell | 500 |
Securities sold under agreements to repurchase | $ (500) |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 369 | $ 256 | |
Other loans held for sale | 51 | 25 | |
Retail branches | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | $ 1,100 | ||
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged as collateral for FHLB borrowed funds | 22,100 | 22,000 | |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 12,700 | 11,800 | |
Commercial loan syndication | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other loans held for sale | 25 | ||
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 1,100 | 1,300 | |
Residential portfolio segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 887 | 1,500 | |
Mortgage loans sold | 273 | 126 | |
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 615 | 59 | |
Loans sold during the period | 357 | ||
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfer of portfolio loans and leases to held-for-sale | 41 | ||
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | $ 165 | ||
Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 369 | 256 | |
Other loans held for sale | 0 | 0 | |
Residential loans held for sale | Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 269 | 213 | |
Commercial real estate loans held for sale | Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 100 | $ 43 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases commercial | $ 45,269 | $ 43,226 | |
Loans and leases retail | 52,162 | 50,184 | |
Loans and leases | 97,431 | 93,410 | |
Loans held for sale | 369 | 256 | |
Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans serviced for others by the Company's subsidiaries | 17,700 | 17,900 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases commercial | 32,726 | 31,431 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases commercial | 8,678 | 7,809 | |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases commercial | 3,865 | 3,986 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 12,792 | 11,832 | |
Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 2,842 | 3,424 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 14,707 | 15,423 | |
Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 1,054 | 1,228 |
Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 441 | 550 |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 13,876 | 12,706 | |
Student | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 3,846 | 2,256 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 1,628 | 1,693 | |
Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 976 | 1,072 | |
Total Loans and Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [2],[3] | 97,431 | 93,410 |
Residential mortgage and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 420 | $ 281 | |
[1] | The Company’s SBO portfolio consists of purchased 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 $420 million as of September 30, 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 $17.7 billion and $17.9 billion at September 30, 2015 and December 31, 2014, respectively. |
ALLOWANCE FOR CREDIT LOSSES, 65
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $ 259,000,000 | |
Larger balance commercial loans minimum balance (greater than) | 3,000,000 | $ 3,000,000 |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 15,000,000 | $ 53,000,000 |
High loan to value criteria (exceeds) | 90.00% | 90.00% |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 152,000,000 | $ 176,000,000 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 1,200,000,000 | $ 1,200,000,000 |
ALLOWANCE FOR CREDIT LOSSES, 66
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 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 | 211 | $ 247 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,201 | |
Allowance for loan and lease losses | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,195 | 1,221 |
Charge-offs | (356) | (374) |
Recoveries | 149 | 131 |
Net (charge-offs) recoveries | (207) | (243) |
Provision charged to income | 213 | 223 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,201 | 1,201 |
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 | (32) | (30) |
Recoveries | 42 | 47 |
Net (charge-offs) recoveries | 10 | 17 |
Provision charged to income | 21 | 27 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 575 | 542 |
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 | (324) | (344) |
Recoveries | 107 | 84 |
Net (charge-offs) recoveries | (217) | (260) |
Provision charged to income | 192 | 196 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 626 | 659 |
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 | (2) | 24 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 59 | 63 |
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 | (2) | 24 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 59 | 63 |
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 | 1,260 | 1,264 |
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 | 605 |
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 | $ 626 | $ 659 |
ALLOWANCE FOR CREDIT LOSSES, 67
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - Loans and Leases - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,364 | $ 1,413 |
Formula-based evaluation | 96,067 | 91,997 |
Total | 97,431 | 93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 194 | 205 |
Formula-based evaluation | 45,075 | 43,021 |
Total | 45,269 | 43,226 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 1,170 | 1,208 |
Formula-based evaluation | 50,992 | 48,976 |
Total | $ 52,162 | $ 50,184 |
ALLOWANCE FOR CREDIT LOSSES, 68
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 ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 127 | $ 129 |
Formula-based evaluation | 1,133 | 1,127 |
Allowance for credit losses | 1,260 | 1,256 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 23 | 20 |
Formula-based evaluation | 611 | 585 |
Allowance for credit losses | 634 | 605 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 104 | 109 |
Formula-based evaluation | 522 | 542 |
Allowance for credit losses | $ 626 | $ 651 |
ALLOWANCE FOR CREDIT LOSSES, 69
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 ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 97,431 | $ 93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 45,269 | 43,226 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 32,726 | 31,431 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,678 | 7,809 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,865 | 3,986 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 43,127 | 41,300 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31,005 | 30,022 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,326 | 7,354 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,796 | 3,924 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,153 | 1,217 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 924 | 876 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 207 | 329 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 22 | 12 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 862 | 538 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 712 | 427 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 103 | 61 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 47 | 50 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 127 | 171 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 85 | 106 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 42 | 65 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 70
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Loans and Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 97,431 | $ 93,410 | |
Loans and Leases | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 12,358 | 11,352 | |
Total | 12,792 | 11,832 | |
Loans and Leases | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,478 | 2,997 | |
Total | 2,842 | 3,424 | |
Loans and Leases | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 14,060 | 14,705 | |
Total | 14,707 | 15,423 | |
Loans and Leases | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 956 | 1,101 |
Total | [1] | 1,054 | 1,228 |
Loans and Leases | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 344 | 455 |
Total | [1] | 441 | 550 |
Loans and Leases | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 12,859 | 11,839 | |
Total | 13,876 | 12,706 | |
Loans and Leases | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 3,689 | 2,106 | |
Total | 3,846 | 2,256 | |
Loans and Leases | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,543 | 1,615 | |
Total | 1,628 | 1,693 | |
Loans and Leases | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 902 | 985 | |
Total | 976 | 1,072 | |
Loans and Leases | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 49,189 | 47,155 | |
Total | 52,162 | 50,184 | |
Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 107 | 114 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 179 | 222 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 401 | 447 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 58 | 78 |
Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 56 | 66 |
Financing Receivables, 1 to 29 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 858 | 758 | |
Financing Receivables, 1 to 29 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 90 | 108 | |
Financing Receivables, 1 to 29 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 51 | 39 | |
Financing Receivables, 1 to 29 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 55 | 65 | |
Financing Receivables, 1 to 29 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,855 | 1,897 | |
Financing Receivables 30 To 89 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 78 | 97 | |
Financing Receivables 30 To 89 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 46 | 60 | |
Financing Receivables 30 To 89 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 77 | 73 | |
Financing Receivables 30 To 89 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 21 | 26 |
Financing Receivables 30 To 89 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 14 | 10 |
Financing Receivables 30 To 89 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 130 | 93 | |
Financing Receivables 30 To 89 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 28 | 25 | |
Financing Receivables 30 To 89 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 19 | 22 | |
Financing Receivables 30 To 89 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 15 | 18 | |
Financing Receivables 30 To 89 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 428 | 424 | |
Financing Receivables 90 Days or More Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 249 | 269 | |
Financing Receivables 90 Days or More Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 139 | 145 | |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 169 | 198 | |
Financing Receivables 90 Days or More Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 19 | 23 |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 27 | 19 |
Financing Receivables 90 Days or More Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 29 | 16 | |
Financing Receivables 90 Days or More Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 39 | 17 | |
Financing Receivables 90 Days or More Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 15 | 17 | |
Financing Receivables 90 Days or More Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4 | 4 | |
Financing Receivables 90 Days or More Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 690 | $ 708 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 71
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | $ 1,019 | $ 1,093 | |
Accruing and 90 Days or More Delinquent | 15 | 8 | |
Total Nonperforming Loans and Leases | 1,034 | 1,101 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 123 | 163 | |
Accruing and 90 Days or More Delinquent | 7 | 1 | |
Total Nonperforming Loans and Leases | 130 | 164 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 81 | 113 | |
Accruing and 90 Days or More Delinquent | 7 | 1 | |
Total Nonperforming Loans and Leases | 88 | 114 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 42 | 50 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 42 | 50 | |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 0 | 0 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 0 | 0 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 896 | 930 | |
Accruing and 90 Days or More Delinquent | 8 | 7 | |
Total Nonperforming Loans and Leases | 904 | 937 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 324 | 345 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 324 | 345 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 200 | 203 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 200 | 203 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 214 | 257 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 214 | 257 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | [1] | 39 | 47 |
Accruing and 90 Days or More Delinquent | [1] | 0 | 0 |
Total Nonperforming Loans and Leases | [1] | 39 | 47 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | [1] | 31 | 25 |
Accruing and 90 Days or More Delinquent | [1] | 0 | 0 |
Total Nonperforming Loans and Leases | [1] | 31 | 25 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 38 | 21 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 38 | 21 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 32 | 11 | |
Accruing and 90 Days or More Delinquent | 7 | 6 | |
Total Nonperforming Loans and Leases | 39 | 17 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 15 | 16 | |
Accruing and 90 Days or More Delinquent | 0 | 1 | |
Total Nonperforming Loans and Leases | 15 | 17 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 3 | 5 | |
Accruing and 90 Days or More Delinquent | 1 | 0 | |
Total Nonperforming Loans and Leases | $ 4 | $ 5 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 72
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 39 | $ 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 | $ 38 | $ 39 |
ALLOWANCE FOR CREDIT LOSSES, 73
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 1.06% | 1.18% |
Nonperforming assets as a percentage of total assets | 0.79% | 0.86% |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.13% | 0.18% |
Nonperforming assets as a percentage of total assets | 0.10% | 0.13% |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.93% | 1.00% |
Nonperforming assets as a percentage of total assets | 0.69% | 0.73% |
ALLOWANCE FOR CREDIT LOSSES, 74
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | $ 453 | $ 510 | |
90 Days or More Past Due | 820 | 872 | |
Total Past Due | 1,273 | 1,382 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 25 | 86 | |
90 Days or More Past Due | 130 | 164 | |
Total Past Due | 155 | 250 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 22 | 57 | |
90 Days or More Past Due | 88 | 114 | |
Total Past Due | 110 | 171 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 3 | 26 | |
90 Days or More Past Due | 42 | 50 | |
Total Past Due | 45 | 76 | |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 0 | 3 | |
90 Days or More Past Due | 0 | 0 | |
Total Past Due | 0 | 3 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 428 | 424 | |
90 Days or More Past Due | 690 | 708 | |
Total Past Due | 1,118 | 1,132 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 78 | 97 | |
90 Days or More Past Due | 249 | 269 | |
Total Past Due | 327 | 366 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 46 | 60 | |
90 Days or More Past Due | 139 | 145 | |
Total Past Due | 185 | 205 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 77 | 73 | |
90 Days or More Past Due | 169 | 198 | |
Total Past Due | 246 | 271 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | [1] | 21 | 26 |
90 Days or More Past Due | [1] | 19 | 23 |
Total Past Due | [1] | 40 | 49 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | [1] | 14 | 10 |
90 Days or More Past Due | [1] | 27 | 19 |
Total Past Due | [1] | 41 | 29 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 130 | 93 | |
90 Days or More Past Due | 29 | 16 | |
Total Past Due | 159 | 109 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 28 | 25 | |
90 Days or More Past Due | 39 | 17 | |
Total Past Due | 67 | 42 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 19 | 22 | |
90 Days or More Past Due | 15 | 17 | |
Total Past Due | 34 | 39 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 15 | 18 | |
90 Days or More Past Due | 4 | 4 | |
Total Past Due | $ 19 | $ 22 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 75
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | $ 609 | $ 789 | |
Allowance on Impaired Loans | 127 | 129 | |
Impaired Loans Without a Related Allowance | 755 | 624 | |
Unpaid Contractual Balance | 1,667 | 1,727 | |
Total Recorded Investment in Impaired Loans | 1,364 | 1,413 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 107 | 131 | |
Allowance on Impaired Loans | 23 | 20 | |
Impaired Loans Without a Related Allowance | 87 | 74 | |
Unpaid Contractual Balance | 211 | 240 | |
Total Recorded Investment in Impaired Loans | 194 | 205 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 84 | 124 | |
Allowance on Impaired Loans | 21 | 19 | |
Impaired Loans Without a Related Allowance | 70 | 36 | |
Unpaid Contractual Balance | 174 | 178 | |
Total Recorded Investment in Impaired Loans | 154 | 160 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 23 | 7 | |
Allowance on Impaired Loans | 2 | 1 | |
Impaired Loans Without a Related Allowance | 17 | 38 | |
Unpaid Contractual Balance | 37 | 62 | |
Total Recorded Investment in Impaired Loans | 40 | 45 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 502 | 658 | |
Allowance on Impaired Loans | 104 | 109 | |
Impaired Loans Without a Related Allowance | 668 | 550 | |
Unpaid Contractual Balance | 1,456 | 1,487 | |
Total Recorded Investment in Impaired Loans | 1,170 | 1,208 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 119 | 157 | |
Allowance on Impaired Loans | 16 | 18 | |
Impaired Loans Without a Related Allowance | 311 | 288 | |
Unpaid Contractual Balance | 593 | 605 | |
Total Recorded Investment in Impaired Loans | 430 | 445 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 94 | 129 | |
Allowance on Impaired Loans | 12 | 11 | |
Impaired Loans Without a Related Allowance | 190 | 141 | |
Unpaid Contractual Balance | 351 | 335 | |
Total Recorded Investment in Impaired Loans | 284 | 270 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 22 | 75 | |
Allowance on Impaired Loans | 2 | 3 | |
Impaired Loans Without a Related Allowance | 120 | 86 | |
Unpaid Contractual Balance | 174 | 193 | |
Total Recorded Investment in Impaired Loans | 142 | 161 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | [1] | 53 | 75 |
Allowance on Impaired Loans | [1] | 8 | 9 |
Impaired Loans Without a Related Allowance | [1] | 26 | 16 |
Unpaid Contractual Balance | [1] | 91 | 102 |
Total Recorded Investment in Impaired Loans | [1] | 79 | 91 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | [1] | 3 | 4 |
Allowance on Impaired Loans | [1] | 1 | 1 |
Impaired Loans Without a Related Allowance | [1] | 7 | 7 |
Unpaid Contractual Balance | [1] | 14 | 14 |
Total Recorded Investment in Impaired Loans | [1] | 10 | 11 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 3 | 2 | |
Allowance on Impaired Loans | 0 | 1 | |
Impaired Loans Without a Related Allowance | 11 | 9 | |
Unpaid Contractual Balance | 18 | 16 | |
Total Recorded Investment in Impaired Loans | 14 | 11 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 164 | 167 | |
Allowance on Impaired Loans | 48 | 48 | |
Impaired Loans Without a Related Allowance | 1 | 0 | |
Unpaid Contractual Balance | 166 | 167 | |
Total Recorded Investment in Impaired Loans | 165 | 167 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 29 | 32 | |
Allowance on Impaired Loans | 12 | 13 | |
Impaired Loans Without a Related Allowance | 0 | 0 | |
Unpaid Contractual Balance | 29 | 32 | |
Total Recorded Investment in Impaired Loans | 29 | 32 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 15 | 17 | |
Allowance on Impaired Loans | 5 | 5 | |
Impaired Loans Without a Related Allowance | 2 | 3 | |
Unpaid Contractual Balance | 20 | 23 | |
Total Recorded Investment in Impaired Loans | $ 17 | $ 20 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 76
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | $ 11 | $ 13 | $ 35 | $ 35 | |
Average Recorded Investment | 1,320 | 1,396 | 1,310 | 1,368 | |
Commercial Banking | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 2 | 3 | 3 | |
Average Recorded Investment | 161 | 200 | 178 | 211 | |
Commercial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 2 | 2 | 2 | |
Average Recorded Investment | 126 | 138 | 133 | 141 | |
Commercial real estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 0 | 1 | 1 | |
Average Recorded Investment | 35 | 62 | 45 | 70 | |
Retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 10 | 11 | 32 | 32 | |
Average Recorded Investment | 1,159 | 1,196 | 1,132 | 1,157 | |
Residential mortgages | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 4 | 4 | 12 | 11 | |
Average Recorded Investment | 428 | 445 | 423 | 434 | |
Home equity loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 2 | 1 | 7 | 5 | |
Average Recorded Investment | 277 | 262 | 263 | 248 | |
Home equity lines of credit | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 1 | 3 | 3 | |
Average Recorded Investment | 142 | 158 | 140 | 153 | |
Home equity loans serviced by others | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | [1] | 1 | 1 | 3 | 4 |
Average Recorded Investment | [1] | 79 | 95 | 80 | 94 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 |
Average Recorded Investment | [1] | 10 | 11 | 9 | 11 |
Automobile | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 12 | 9 | 11 | 8 | |
Student | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 2 | 5 | 6 | |
Average Recorded Investment | 165 | 161 | 160 | 154 | |
Credit cards | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 1 | 1 | 2 | |
Average Recorded Investment | 29 | 34 | 28 | 34 | |
Other retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 1 | 1 | 1 | |
Average Recorded Investment | $ 17 | $ 21 | $ 18 | $ 21 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 77
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($)contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | $ 1 | $ (1) | $ 3 | $ (11) | |
Charge-offs Resulting from Modification | 2 | 4 | 6 | 11 | |
Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | (8) | |
Charge-offs Resulting from Modification | 1 | 0 | 1 | 0 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | (8) | |
Charge-offs Resulting from Modification | 1 | 0 | 1 | 0 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | (1) | 4 | (3) | |
Charge-offs Resulting from Modification | 1 | 4 | 5 | 11 | |
Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | (1) | (1) | (3) | |
Charge-offs Resulting from Modification | 0 | 1 | 0 | 1 | |
Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | (1) | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 2 | |
Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 1 | 2 | 4 | |
Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | [1] | 0 | (1) | 0 | (1) |
Charge-offs Resulting from Modification | [1] | 0 | 0 | 1 | 0 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | [1] | 0 | 0 | 0 | 0 |
Charge-offs Resulting from Modification | [1] | 0 | 0 | 0 | 0 |
Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 1 | 1 | 2 | 3 | |
Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 4 | 2 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 1 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | $ 0 | $ 1 | $ 0 | $ 1 | |
Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 643 | 591 | 2,052 | 2,008 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 9 | $ 9 | $ 32 | $ 38 |
Post-Modification Outstanding Recorded Investment | [2] | $ 10 | $ 10 | $ 33 | $ 39 |
Interest Rate Reduction | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 4 | 6 | 19 | 23 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 3 | $ 7 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 3 | $ 7 |
Interest Rate Reduction | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 4 | 5 | 18 | 20 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 3 | $ 7 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 3 | $ 7 |
Interest Rate Reduction | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 1 | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 639 | 585 | 2,033 | 1,985 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 9 | $ 9 | $ 29 | $ 31 |
Post-Modification Outstanding Recorded Investment | [2] | $ 10 | $ 10 | $ 30 | $ 32 |
Interest Rate Reduction | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 24 | 28 | 77 | 94 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 4 | $ 4 | $ 13 | $ 14 |
Post-Modification Outstanding Recorded Investment | [2] | $ 4 | $ 4 | $ 13 | $ 14 |
Interest Rate Reduction | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 30 | 24 | 77 | 92 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 2 | $ 2 | $ 4 | $ 6 |
Post-Modification Outstanding Recorded Investment | [2] | $ 2 | $ 3 | $ 4 | $ 7 |
Interest Rate Reduction | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 1 | 5 | 1 | 7 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 2 | 8 | 24 | 26 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 1 | $ 1 |
Interest Rate Reduction | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 0 | 0 | 0 | 3 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 33 | 7 | 71 | 62 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 2 | $ 1 |
Interest Rate Reduction | Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 547 | 513 | 1,781 | 1,698 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 3 | $ 3 | $ 10 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 3 | $ 3 | $ 10 | $ 9 |
Interest Rate Reduction | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 2 | 0 | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 135 | 104 | 309 | 408 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 9 | $ 54 | $ 29 |
Post-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 9 | $ 54 | $ 27 |
Maturity Extension | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 50 | 13 | 114 | 43 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 3 | $ 19 | $ 5 |
Post-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 3 | $ 19 | $ 5 |
Maturity Extension | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 50 | 10 | 114 | 38 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 2 | $ 19 | $ 4 |
Post-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 2 | $ 19 | $ 4 |
Maturity Extension | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 3 | 0 | 5 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 1 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 1 | $ 0 | $ 1 |
Maturity Extension | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 85 | 91 | 195 | 365 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 15 | $ 6 | $ 35 | $ 24 |
Post-Modification Outstanding Recorded Investment | [3] | $ 15 | $ 6 | $ 35 | $ 22 |
Maturity Extension | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 8 | 10 | 27 | 32 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 2 | $ 5 | $ 5 |
Post-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 1 | $ 5 | $ 4 |
Maturity Extension | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 72 | 8 | 158 | 76 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 14 | $ 0 | $ 30 | $ 4 |
Post-Modification Outstanding Recorded Investment | [3] | $ 14 | $ 2 | $ 30 | $ 5 |
Maturity Extension | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 2 | 69 | 5 | 245 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 4 | $ 0 | $ 15 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 3 | $ 0 | $ 13 |
Maturity Extension | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[3] | 0 | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 3 | 4 | 5 | 11 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 604 | 1,112 | 2,549 | 3,443 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 56 | $ 47 | $ 129 | $ 147 |
Post-Modification Outstanding Recorded Investment | [4] | $ 55 | $ 43 | $ 124 | $ 137 |
Other | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 8 | 3 | 13 | 5 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 0 | $ 34 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 0 | $ 34 | $ 0 |
Other | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 8 | 3 | 12 | 5 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 0 | $ 30 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 0 | $ 30 | $ 0 |
Other | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 0 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 4 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 4 | $ 0 |
Other | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 596 | 1,109 | 2,536 | 3,438 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 47 | $ 95 | $ 147 |
Post-Modification Outstanding Recorded Investment | [4] | $ 27 | $ 43 | $ 90 | $ 137 |
Other | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 78 | 102 | 184 | 341 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 9 | $ 12 | $ 19 | $ 40 |
Post-Modification Outstanding Recorded Investment | [4] | $ 9 | $ 11 | $ 19 | $ 39 |
Other | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 85 | 266 | 379 | 789 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 8 | $ 15 | $ 25 | $ 49 |
Post-Modification Outstanding Recorded Investment | [4] | $ 7 | $ 15 | $ 24 | $ 47 |
Other | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 58 | 98 | 271 | 257 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 4 | $ 7 | $ 18 | $ 18 |
Post-Modification Outstanding Recorded Investment | [4] | $ 3 | $ 6 | $ 15 | $ 15 |
Other | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[4] | 26 | 26 | 97 | 111 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 2 | $ 1 | $ 5 | $ 4 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 1 | $ 1 | $ 4 | $ 4 |
Other | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[4] | 12 | 9 | 34 | 33 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 1 | $ 1 | $ 2 | $ 2 |
Other | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 182 | 256 | 651 | 673 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 2 | $ 5 | $ 10 | $ 11 |
Post-Modification Outstanding Recorded Investment | [4] | $ 3 | $ 3 | $ 9 | $ 7 |
Other | Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 151 | 346 | 901 | 1,199 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 2 | $ 6 | $ 16 | $ 22 |
Post-Modification Outstanding Recorded Investment | [4] | $ 3 | $ 6 | $ 17 | $ 22 |
Other | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
Other | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 4 | 6 | 19 | 35 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 1 |
[1] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | ||||
[2] | Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||
[3] | 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). | ||||
[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. |
ALLOWANCE FOR CREDIT LOSSES, 78
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($)contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2014USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 298 | 532 | 936 | 1,596 | |
Balance Defaulted | $ 21 | $ 29 | $ 47 | $ 73 | |
Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 7 | 6 | 21 | 24 | |
Balance Defaulted | $ 1 | $ 4 | $ 2 | $ 8 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 7 | 5 | 21 | 22 | |
Balance Defaulted | $ 1 | $ 4 | $ 2 | $ 7 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 0 | 1 | 0 | 2 | |
Balance Defaulted | $ 0 | $ 0 | $ 0 | $ 1 | |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 291 | 526 | 915 | 1,572 | |
Balance Defaulted | $ 20 | $ 25 | $ 45 | $ 65 | |
Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 37 | 91 | 120 | 226 | |
Balance Defaulted | $ 7 | $ 11 | $ 18 | $ 27 | |
Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 47 | 104 | 130 | 259 | |
Balance Defaulted | $ 6 | $ 8 | $ 12 | $ 19 | |
Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 26 | 52 | 98 | 191 | |
Balance Defaulted | $ 3 | $ 3 | $ 6 | $ 9 | |
Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 11 | 17 | 34 | 51 |
Balance Defaulted | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 10 | 6 | 17 | 18 |
Balance Defaulted | [1] | $ 1 | $ 0 | $ 1 | $ 0 |
Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 24 | 30 | 66 | 88 | |
Balance Defaulted | $ 0 | $ 0 | $ 1 | $ 1 | |
Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 33 | 93 | 142 | 284 | |
Balance Defaulted | $ 1 | $ 2 | $ 3 | $ 5 | |
Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 102 | 131 | 304 | 444 | |
Balance Defaulted | $ 1 | $ 1 | $ 2 | $ 3 | |
Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 1 | 2 | 4 | 11 | |
Balance Defaulted | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | The Company’s SBO portfolio consists of purchased 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, 79
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,625 | $ 3,541 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 651 | 773 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,100 | 1,743 |
High loan-to-value | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 874 | 1,025 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,024 | 894 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,024 | 894 |
Interest only/negative amortization | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 97 | 98 |
Low introductory rate | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2 | 0 |
Low introductory rate | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 95 | 98 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15 | 24 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15 | 24 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,761 | 4,557 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,690 | 1,691 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,102 | 1,743 |
Credit risk, loans with increased credit exposure | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 874 | 1,025 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 95 | $ 98 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | |
Variable Interest Entity [Line Items] | ||
Net impairment losses recognized in earnings | $ 0 | $ 0 |
LIHTC Investments | ||
Variable Interest Entity [Line Items] | ||
Investment in Low Income Housing Tax Credit Partnerships | 518,000,000 | 518,000,000 |
Qualified Affordable Housing Project Investments, Commitment | 324,000,000 | 324,000,000 |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 11,000,000 | 35,000,000 |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 12,000,000 | 35,000,000 |
Other Tax Expense (Benefit) | $ (4,000,000) | $ (13,000,000) |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 9 Months Ended | 213 Months Ended | |
Sep. 30, 2015USD ($)reporting_unit | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)business | |
Goodwill [Line Items] | |||
Number of acquisitions of banks or assets of banks | business | 25 | ||
Number of reporting units | reporting_unit | 2 | ||
Goodwill impairment loss | $ 0 | $ 0 | |
Consumer Banking | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | 5,900,000,000 | 5,900,000,000 | $ 5,900,000,000 |
Commercial Banking | |||
Goodwill [Line Items] | |||
Goodwill accumulated impairment loss | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
GOODWILL - Goodwill Rollforward
GOODWILL - Goodwill Rollforward (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 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 (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 21 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | $ 1,780 | $ 1,089 | |
Repurchased mortgage loans | 9 | 22 | $ 34 |
Mortgage servicing fees | 41 | 44 | |
Mortgage servicing rights valuation recovery | (6) | (8) | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | 1,500 | 1,100 | |
Gain on sale of residential mortgages | $ 43 | $ 25 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - Residential mortgages - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
MSRs | ||
Balance as of January 1 | $ 184 | $ 208 |
Amount capitalized | 20 | 13 |
Amortization | (28) | (32) |
Carrying amount before valuation allowance | 176 | 189 |
Valuation allowance for servicing assets | ||
Balance as of January 1 | 18 | 23 |
Valuation recovery | (6) | (8) |
Balance at end of period | 12 | 15 |
Net carrying value of MSRs | $ 164 | $ 174 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 2 months 12 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate (percent) | 12.30% | 12.40% |
Weighted average discount rate (percent) | 9.70% | 9.80% |
Residential mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 177 | $ 179 |
Weighted average life (in years) | 5 years 2 months 12 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate (percent) | 12.30% | 12.40% |
Weighted average discount rate (percent) | 9.80% | 9.80% |
MORTGAGE BANKING - Economic A86
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) - Residential mortgages | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Servicing Assets at Fair Value [Line Items] | ||
Weighted average life (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days |
Weighted average constant prepayment rate (percent) | 10.80% | 11.70% |
Weighted average discount rate (percent) | 9.70% | 10.30% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 a 50 basis point decrease in interest rates | $ 6 | $ 9 |
Decline in fair value from a 100 basis point decrease 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 a 50 basis point increase in weighted average discount rate | 3 | 3 |
Decline in fair value from a 100 basis point increase in weighted average discount rate | $ 6 | $ 6 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $ 7,154 | $ 10,529 |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 9,800 | 11,300 |
Federal Home Loan advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 5,300 | $ 3,500 |
Federal Reserve Bank Advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 31,400 |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 7,154 | $ 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 | 1,293 | 3,702 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 5,861 | $ 6,253 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 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 | 0.25% | 0.14% |
Maximum amount outstanding at month-end during the period | $ 5,375 | $ 7,022 |
Average amount outstanding during the period | $ 3,947 | $ 5,699 |
Weighted-average interest rate during the period | 0.22% | 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 | 0.29% | 0.26% |
Maximum amount outstanding at month-end during the period | $ 7,004 | $ 7,702 |
Average amount outstanding during the period | $ 6,169 | $ 5,640 |
Weighted-average interest rate during the period | 0.27% | 0.25% |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 4,153 | $ 4,642 | ||
Derivative | (1,010) | (790) | ||
Hedge of interest rate risk | ||||
Debt Instrument [Line Items] | ||||
Derivative | (837) | (613) | ||
Subordinated Debt | 4.350% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.35% | |||
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 | Sep. 28, 2022 | |||
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 | [1] | $ 333 | 333 | |
Interest rate | [1] | 5.158% | ||
Maturity date | [1] | Jun. 30, 2023 | ||
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 | [1] | 3.56% | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.771% fixed rate subordinated debt, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 333 | 333 | |
Interest rate | [1] | 4.771% | ||
Maturity date | [1] | Oct. 31, 2023 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.691% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 334 | 334 | |
Interest rate | [1] | 4.691% | ||
Maturity date | [1] | Jan. 31, 2024 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.153% fixed rate subordinated debt due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 333 | 333 | |
Interest rate | [1] | 4.153% | ||
Maturity date | [1] | Jul. 31, 2024 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.023% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 333 | 333 | |
Interest rate | [1] | 4.023% | ||
Maturity date | [1] | Oct. 31, 2024 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.082% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 334 | 334 | |
Interest rate | [1] | 4.082% | ||
Maturity date | [1] | Jan. 31, 2025 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.350% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [1] | $ 250 | 0 | |
Interest rate | [1] | 4.35% | ||
Maturity date | [1] | Aug. 1, 2025 | ||
Senior Unsecured Notes | 2.450% and 1.600% senior unsecured notes, due 2019 and 2017 | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | [2],[3] | $ 1,500 | ||
Senior Unsecured Notes | 2.450% and 1.600% senior unsecured notes, due 2019 and 2017 | Hedge of interest rate risk | ||||
Debt Instrument [Line Items] | ||||
Derivative | 5 | 13 | ||
Senior Unsecured Notes | Banking Subsidiaries | 1.600% senior unsecured notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [2],[3] | $ 755 | 750 | |
Interest rate | [2],[3] | 1.60% | ||
Maturity date | [2],[3] | Dec. 4, 2017 | ||
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [2],[3] | $ 763 | 746 | |
Interest rate | [2],[3] | 2.45% | ||
Maturity date | [2],[3] | Dec. 4, 2019 | ||
Federal Home Loan advances | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 18 | 772 | ||
Maturity date | Jan. 1, 2033 | |||
Other | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 17 | $ 24 | ||
[1] | Intercompany borrowed funds with RBS. See Note 14 “Related Party Transactions” for further information. | |||
[2] | $1.5 billion principal balance of unsecured notes presented net of $5 million and $13 million hedge of interest rate risk on medium term debt using interest rate swaps at September 30, 2015. See Note 12 “Derivatives” for further information. | |||
[3] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2015 or on demand | $ 0 | |
2,016 | 0 | |
2,017 | 761 | |
2,018 | 7 | |
2,019 | 764 | |
2020 and thereafter | 2,621 | |
Total | $ 4,153 | $ 4,642 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Aug. 03, 2015 | Apr. 07, 2015 | Apr. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Jul. 31, 2015 | Dec. 31, 2014 |
Preferred Stock | |||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, outstanding (in shares) | 250,000 | 0 | |||||
Preferred stock, issued (in shares) | 0 | ||||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | |||||
Treasury Stock | |||||||
Outstanding common stock held by RBS (in shares) | 110,461,782 | ||||||
Percent of outstanding common stock held by RBS | 20.90% | ||||||
Cost of stock repurchase | $ 500,000,000 | $ 0 | |||||
RBSG | |||||||
Treasury Stock | |||||||
Treasury stock purchased (in shares) | 9,615,384 | 10,473,397 | 20,088,781 | ||||
Treasury stock purchased, price per share (in dollars per share) | $ 26 | $ 23.87 | $ 25.48 | ||||
Shares repurchased (in shares) | 837,853 | ||||||
Cost of stock repurchase | $ 250,000,000 | $ 21,000,000 | |||||
Subordinated Debt | 4.350% fixed rate subordinated debt, due 2025 | |||||||
Treasury Stock | |||||||
Aggregate principal amount of debt | $ 250,000,000 | ||||||
Interest rate | 4.35% | ||||||
Series A Preferred Stock | |||||||
Preferred Stock | |||||||
Preferred stock, authorized (in shares) | 250,000 | 0 | |||||
Preferred stock, outstanding (in shares) | 250,000 | 0 | |||||
Preferred stock, issued | $ 250,000,000 | ||||||
Preferred stock, issued (in shares) | 250,000 | 250,000 | 0 | ||||
Preferred stock, dividend rate | 5.50% | ||||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 0 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | $ 0 | ||||
Net proceeds from issuance of stock | $ 247,000,000 | ||||||
Preferred stock, redemption price per share | $ 1,000 | ||||||
Series A Preferred Stock | LIBOR | |||||||
Preferred Stock | |||||||
Preferred stock, dividend payment rate, basis spread on variable rate, beginning after April 6, 2020 | 3.96% |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) $ in Millions | Feb. 20, 2015 | Sep. 30, 2014 | Sep. 30, 2015 |
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 | ||
Liabilities transferred to Affiliate plans | 148 | ||
Employer contributions | $ 100 | ||
Non-Qualified Plan | |||
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% | ||
Postretirement Benefit Plan | Affiliates | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Liabilities transferred to Affiliate plans | $ 7 |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 3 |
Interest cost | 36 | 36 |
Expected return on plan assets | (55) | (53) |
Amortization of actuarial loss | 12 | 7 |
Net periodic pension (income) cost | (5) | (7) |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 3 |
Interest cost | 33 | 33 |
Expected return on plan assets | (55) | (53) |
Amortization of actuarial loss | 10 | 6 |
Net periodic pension (income) cost | (10) | (11) |
Non-Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 3 | 3 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial loss | 2 | 1 |
Net periodic pension (income) cost | $ 5 | $ 4 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 115 | $ 85 | $ 313 | $ 317 | |
Effective income tax rate | 34.10% | 30.80% | 33.50% | 32.20% | |
Federal income tax rate | 35.00% | 35.00% | |||
Net deferred tax liability | $ 637 | $ 637 | $ 493 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Sep. 30, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net loss (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 13 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Assets | |||
Derivative assets | $ 1,010 | $ 790 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (172) | (161) |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 838 | 629 |
Derivative Liabilities | |||
Derivative Liabilities | 816 | 773 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (172) | (161) |
Less: Cash collateral applied | [1] | (3) | 0 |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 641 | 612 |
Derivatives not designated as hedging instruments: | |||
Derivative Assets | |||
Derivative assets | 837 | 766 | |
Derivative Liabilities | |||
Derivative Liabilities | 748 | 674 | |
Interest rate swaps | |||
Derivative Assets | |||
Derivative assets | 837 | 613 | |
Derivative Liabilities | |||
Derivative Liabilities | 648 | 600 | |
Interest rate swaps | Derivatives designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 11,000 | 5,750 |
Derivative Assets | |||
Derivative assets | 173 | 24 | |
Derivative Liabilities | |||
Derivative Liabilities | 68 | 99 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 31,628 | 31,848 |
Derivative Assets | |||
Derivative assets | 664 | 589 | |
Derivative Liabilities | |||
Derivative Liabilities | 580 | 501 | |
Foreign exchange contracts | |||
Derivative Assets | |||
Derivative assets | 163 | 170 | |
Derivative Liabilities | |||
Derivative Liabilities | 158 | 164 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 7,783 | 8,359 |
Derivative Assets | |||
Derivative assets | 163 | 170 | |
Derivative Liabilities | |||
Derivative Liabilities | 158 | 164 | |
Other contracts | |||
Derivative Assets | |||
Derivative assets | 10 | 7 | |
Derivative Liabilities | |||
Derivative Liabilities | 10 | 9 | |
Other contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 1,081 | 730 |
Derivative Assets | |||
Derivative assets | 10 | 7 | |
Derivative Liabilities | |||
Derivative Liabilities | $ 10 | $ 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
DERIVATIVES - Schedule of Fair Value Hedges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 16,000,000 | $ 4,000,000 | $ 23,000,000 | $ 21,000,000 |
Hedge of interest rate risk | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 16,000,000 | 0 | 22,000,000 | 0 |
Hedged Item | (16,000,000) | 0 | (22,000,000) | 0 |
Hedge Ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | $ 154 | $ 155 | $ 468 | $ 458 | |
Amounts reclassified from OCI to interest expense | (118) | (93) | (336) | (262) | |
Amount Reclassified from AOCI | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portion of gain recognized in OCI | [1] | 78 | 27 | 174 | 217 |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | [2] | 22 | 18 | 57 | 54 |
Amounts reclassified from OCI to interest expense | [2] | $ (15) | $ (23) | $ (44) | $ (79) |
[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. |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | $ 16,000,000 | $ 4,000,000 | $ 23,000,000 | $ 21,000,000 | |
Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | 16,000,000 | 0 | 22,000,000 | 0 | |
Customer derivative contracts | Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [1] | 85,000,000 | 2,000,000 | 149,000,000 | 151,000,000 |
Customer derivative contracts | Other Income | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [1] | (4,000,000) | (60,000,000) | (21,000,000) | (54,000,000) |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [2] | 9,000,000 | (4,000,000) | 2,000,000 | 4,000,000 |
Economic hedges | Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [1] | (75,000,000) | 5,000,000 | (126,000,000) | (130,000,000) |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [3] | 5,000,000 | 59,000,000 | 21,000,000 | 52,000,000 |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income, Total | [2] | $ (4,000,000) | $ 2,000,000 | $ (2,000,000) | $ (2,000,000) |
[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 -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | ||||
Aug. 31, 2015USD ($) | Apr. 30, 2013USD ($) | Sep. 30, 2015USD ($)counterparty | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2003 | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | |
Letters of Credit [Abstract] | ||||||||
Letters of credit outstanding | $ 1 | $ 3 | $ 1 | |||||
Risk Participation Agreements [Abstract] | ||||||||
Risk participation agreements | $ 39 | 19 | 39 | |||||
Risk participation agreements number of counterparties | counterparty | 78 | |||||||
Risk participation agreements, Maximum term | 10 years | |||||||
Consumer Products [Abstract] | ||||||||
Litigation settlement amount | $ 20.5 | |||||||
Mortgage Repurchase Demands [Abstract] | ||||||||
Mortgage repurchase demands received | 35 | |||||||
Indemnification payment requests received | 5 | |||||||
Repurchased mortgage loans | $ 9 | $ 22 | 34 | |||||
Indemnification payment requests paid | 0 | 7 | 8 | |||||
Payments for Repurchase of Mortgage Loans | 9 | $ 22 | ||||||
Consent Orders | ||||||||
Consumer Products [Abstract] | ||||||||
Litigation settlement amount | $ 10 | |||||||
Restitution amount payable | $ 8 | |||||||
Commercial real estate loans held for sale | Purchase Commitment | ||||||||
Commitments [Abstract] | ||||||||
Unsettled commercial loan trades | 134 | 134 | ||||||
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 170 | |||||||
Minimum | ||||||||
Risk Participation Agreements [Abstract] | ||||||||
Risk participation agreements, Average term | 1 year | |||||||
Maximum | ||||||||
Risk Participation Agreements [Abstract] | ||||||||
Risk participation agreements, Average term | 5 years | |||||||
Marketing rights | ||||||||
Marketing Rights [Abstract] | ||||||||
Commitment period | 25 years | |||||||
Payments made | $ 3 | $ 3 | ||||||
Remaining obligation due | $ 47 | 47 | ||||||
Student | ||||||||
Commitments [Abstract] | ||||||||
Purchase obligation, cumulative maximum amount | $ 700 | |||||||
Purchase obligation, period from original agreement date after which no termination fee is payable | 3 years | |||||||
Student | Minimum | ||||||||
Commitments [Abstract] | ||||||||
Purchase commitment, due in next twelve months | 100 | |||||||
Student | Maximum | ||||||||
Commitments [Abstract] | ||||||||
Purchase commitment, due in next twelve months | $ 163 | |||||||
Automobile | Minimum | ||||||||
Commitments [Abstract] | ||||||||
Purchase commitment, due in next twelve months | $ 250 | 250 | ||||||
Purchase commitment, due after next twelve months | 50 | 50 | ||||||
Automobile | Maximum | ||||||||
Commitments [Abstract] | ||||||||
Purchase commitment, due in next twelve months | 600 | 600 | ||||||
Purchase commitment, due after next twelve months | $ 200 | $ 200 | ||||||
Financial standby letters of credit | ||||||||
Letters of Credit [Abstract] | ||||||||
Guarantor Obligations, Term | 10 years | |||||||
Commercial letters of credit | ||||||||
Letters of Credit [Abstract] | ||||||||
Guarantor Obligations, Term | 1 year |
COMMITMENTS AND CONTINGENCIE103
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | ||
Commitment amount | $ 57,788 | $ 58,435 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 55,506 | 55,899 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,077 | 2,315 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 45 | 65 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 63 | 75 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 47 | 51 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 39 | 19 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 11 | $ 11 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||||
Dividend to parent | $ 90 | $ 0 | ||||
Dividends Common Stock Exchange Transaction | 666 | |||||
Interest rate swaps | Derivatives not designated as hedging instruments | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | [1] | $ 31,628 | 31,628 | $ 31,848 | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | [1] | 7,783 | 7,783 | 8,359 | ||
RBS | ||||||
Related Party Transaction [Line Items] | ||||||
Dividend to parent | 11 | $ 50 | 71 | 85 | ||
RBS | Interest rate swaps | Derivatives not designated as hedging instruments | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | 7,200 | 7,200 | 9,800 | |||
RBS | Foreign exchange contracts | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | 4,100 | 4,100 | 4,700 | |||
Executive Officers, Family Members, and Their Businesses | ||||||
Related Party Transaction [Line Items] | ||||||
Related party loans | $ 135 | $ 135 | $ 126 | |||
Special Dividend [Member] | RBS | ||||||
Related Party Transaction [Line Items] | ||||||
Dividends Common Stock Exchange Transaction | $ 333 | $ 666 | ||||
[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 - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Debt Terms (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Long-term borrowed funds | $ 4,153 | $ 4,642 |
Subordinated Debt | RBSG | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 5.158% | |
Long-term borrowed funds | $ 333 | 333 |
Subordinated Debt | RBSG | 4.771% fixed rate subordinated debt, due 2023 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.771% | |
Long-term borrowed funds | $ 333 | 333 |
Subordinated Debt | RBSG | 4.691% fixed rate subordinated debt, due 2024 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.691% | |
Long-term borrowed funds | $ 334 | 334 |
Subordinated Debt | RBSG | 4.153% fixed rate subordinated debt due 2024 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.153% | |
Long-term borrowed funds | $ 333 | 333 |
Subordinated Debt | RBSG | 4.023% fixed rate subordinated debt, due 2024 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.023% | |
Long-term borrowed funds | $ 333 | 333 |
Subordinated Debt | RBS | 4.082% fixed rate subordinated debt, due 2025 | ||
Related Party Transaction [Line Items] | ||
Interest rate | 4.082% | |
Long-term borrowed funds | $ 334 | $ 334 |
RELATED PARTY TRANSACTIONS -106
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions, Recorded Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ||||
Interest expense on subordinated debt | $ 19 | $ 17 | $ 59 | $ 42 |
RELATED PARTY TRANSACTIONS -107
RELATED PARTY TRANSACTIONS - Schedule of Related Party Swap Agreements (Details) - Interest rate swaps - Derivatives designated as hedging instruments: - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | [1] | $ 11,000 | $ 5,750 |
RBS | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | 7,700 | 5,750 | |
RBS | Receive-fixed swap | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | $ 5,200 | $ 4,750 | |
Minimum fixed interest rate | 1.66% | 1.66% | |
Maximum fixed interest rate | 2.04% | 2.04% | |
RBS | Pay-fixed swap | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | $ 2,500 | $ 1,000 | |
Minimum fixed interest rate | 2.03% | 4.18% | |
Maximum fixed interest rate | 4.30% | 4.30% | |
[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 -108
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions Effect on Net Interest Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Related Party Transactions Effect on Net Interest Income (Expense) [Line Items] | ||||
Interest expense | $ (19) | $ (17) | $ (59) | $ (42) |
RBS | Interest rate swaps | ||||
Schedule of Related Party Transactions Effect on Net Interest Income (Expense) [Line Items] | ||||
Interest income | $ 3 | $ 9 | ||
Interest expense | $ (1) | $ (22) |
RELATED PARTY TRANSACTIONS -109
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions, Recorded Income (Expense) (Details) - RBS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest rate swaps | ||||
Schedule of Related Party Transactions, Recorded Income (Expense) [Line Items] | ||||
Derivative expense | $ (75) | $ (125) | $ (130) | |
Derivative revenue | $ 5 | |||
Foreign exchange contracts | ||||
Schedule of Related Party Transactions, Recorded Income (Expense) [Line Items] | ||||
Foreign exchange and trade finance revenue | $ 5 | $ 59 | $ 21 | $ 52 |
RELATED PARTY TRANSACTIONS -110
RELATED PARTY TRANSACTIONS - Schedule of Related Party Fee Impact on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Related Party Fees Effect on Income [Line Items] | ||||
The effect of related party service fees on outside services | $ 89 | $ 106 | $ 267 | $ 314 |
RBS | ||||
Schedule of Related Party Fees Effect on Income [Line Items] | ||||
The effect of related party service and referral fees, net of occupancy expense, on total fee income | 2 | 5 | 9 | 13 |
The effect of related party service fees on outside services | $ 3 | $ 3 | $ 8 | $ 19 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage banking (expense) income | $ 18,000,000 | $ 21,000,000 | $ 81,000,000 | $ 55,000,000 | ||
Transfers from Level 3 to Level 2 | $ 5,000,000 | |||||
Weighted average life (in years) | 5 years 2 months 12 days | 5 years 2 months 12 days | ||||
Weighted average constant prepayment rate (percent) | 12.30% | 12.40% | ||||
Weighted average discount rate (percent) | 9.70% | 9.80% | ||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted average life (in years) | 2 years 8 months 12 days | 2 years 9 months 18 days | ||||
Weighted average constant prepayment rate (percent) | 11.60% | 10.40% | ||||
Weighted average discount rate (percent) | 9.11% | 9.10% | ||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted average life (in years) | 5 years 9 months 18 days | 6 years 7 months 6 days | ||||
Weighted average constant prepayment rate (percent) | 22.47% | 22.60% | ||||
Weighted average discount rate (percent) | 12.07% | 12.10% | ||||
Residential loans held for sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage banking (expense) income | 4,000,000 | (2,000,000) | $ 2,000,000 | 3,000,000 | ||
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 | 0 | ||||
Other noninterest income | $ 1,000,000 | $ 0 | $ 3,000,000 | $ 0 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 369 | $ 256 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 369 | 256 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 269 | 213 |
Aggregate Unpaid Principal | 261 | 206 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 8 | 7 |
Level 2 | Commercial real estate loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 100 | 43 |
Aggregate Unpaid Principal | 100 | 43 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Securities available for sale | $ 18,197 | $ 18,656 |
Loans held for sale | 369 | 256 |
Derivative assets | 1,010 | 790 |
Money market mutual fund | 45 | 28 |
Venture capital investments and other investments | 5 | 5 |
Total other investment securities, at fair value | 50 | 33 |
Total assets | 19,626 | 19,735 |
Liabilities | ||
Derivative liabilities | 816 | 773 |
Total liabilities | 816 | 773 |
Interest rate swaps | ||
Assets | ||
Derivative assets | 837 | 613 |
Liabilities | ||
Derivative liabilities | 648 | 600 |
Foreign exchange contracts | ||
Assets | ||
Derivative assets | 163 | 170 |
Liabilities | ||
Derivative liabilities | 158 | 164 |
Other contracts | ||
Assets | ||
Derivative assets | 10 | 7 |
Liabilities | ||
Derivative liabilities | 10 | 9 |
Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,156 | 18,606 |
State and political subdivisions | ||
Assets | ||
Securities available for sale | 9 | 10 |
Equity securities | ||
Assets | ||
Securities available for sale | 17 | 25 |
U.S. Treasury | ||
Assets | ||
Securities available for sale | 15 | 15 |
Residential loans held for sale | ||
Assets | ||
Loans held for sale | 269 | 213 |
Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 100 | 43 |
Level 1 | ||
Assets | ||
Securities available for sale | 15 | 23 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Money market mutual fund | 45 | 28 |
Venture capital investments and other investments | 0 | 0 |
Total other investment securities, at fair value | 45 | 28 |
Total assets | 60 | 51 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 1 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 1 | Other contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 1 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 1 | State and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 1 | Equity securities | ||
Assets | ||
Securities available for sale | 0 | 8 |
Level 1 | U.S. Treasury | ||
Assets | ||
Securities available for sale | 15 | 15 |
Level 1 | Residential loans held for sale | ||
Assets | ||
Loans held for sale | 0 | 0 |
Level 1 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 0 | 0 |
Level 2 | ||
Assets | ||
Securities available for sale | 18,182 | 18,633 |
Loans held for sale | 369 | 256 |
Derivative assets | 1,010 | 790 |
Money market mutual fund | 0 | 0 |
Venture capital investments and other investments | 5 | 0 |
Total other investment securities, at fair value | 5 | 0 |
Total assets | 19,566 | 19,679 |
Liabilities | ||
Derivative liabilities | 816 | 773 |
Total liabilities | 816 | 773 |
Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets | 837 | 613 |
Liabilities | ||
Derivative liabilities | 648 | 600 |
Level 2 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 163 | 170 |
Liabilities | ||
Derivative liabilities | 158 | 164 |
Level 2 | Other contracts | ||
Assets | ||
Derivative assets | 10 | 7 |
Liabilities | ||
Derivative liabilities | 10 | 9 |
Level 2 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 18,156 | 18,606 |
Level 2 | State and political subdivisions | ||
Assets | ||
Securities available for sale | 9 | 10 |
Level 2 | Equity securities | ||
Assets | ||
Securities available for sale | 17 | 17 |
Level 2 | U.S. Treasury | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 2 | Residential loans held for sale | ||
Assets | ||
Loans held for sale | 269 | 213 |
Level 2 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | 100 | 43 |
Level 3 | ||
Assets | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Money market mutual fund | 0 | 0 |
Venture capital investments and other investments | 0 | 5 |
Total other investment securities, at fair value | 0 | 5 |
Total assets | 0 | 5 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 3 | Foreign exchange contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 3 | Other contracts | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 3 | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 3 | State and political subdivisions | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 3 | Equity securities | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 3 | U.S. Treasury | ||
Assets | ||
Securities available for sale | 0 | 0 |
Level 3 | Residential loans held for sale | ||
Assets | ||
Loans held for sale | 0 | 0 |
Level 3 | Commercial real estate loans held for sale | ||
Assets | ||
Loans held for sale | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc114
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) - Recurring basis - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period balance | $ 1 | $ 6 | $ 5 | $ 5 |
Purchases | 0 | 0 | 1 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net (losses) gains | (1) | 0 | (1) | 1 |
Transfers from Level 3 to Level 2 | 0 | 0 | (5) | 0 |
Balance as of period end | 0 | 6 | 0 | 6 |
Net unrealized gain included in net income for the year relating to assets held at period end | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc115
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | $ (9) | $ (5) | $ (22) | $ (99) |
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) | 5 | 6 | 8 |
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 | $ 0 | $ (1) | $ (2) | $ (2) |
FAIR VALUE MEASUREMENTS - Sc116
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 107 | $ 102 |
MSRs | 177 | 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 |
MSRs | 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 | 107 | 102 |
MSRs | 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 |
MSRs | 177 | 166 |
Foreclosed assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc117
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | $ 5,285 | $ 5,148 |
Securities held-to-maturity, fair value | 5,386 | 5,193 |
Other investment securities, at cost, carrying value | 822 | 867 |
Other investment securities, at cost, fair value | 822 | 867 |
Other loans held for sale, carrying value | 51 | 25 |
Other loans held for sale, fair value | 51 | 25 |
Loans and leases, carrying value | 97,431 | 93,410 |
Loans and leases, fair value | 97,314 | 93,674 |
Deposits, carrying value | 101,866 | 95,707 |
Deposits, fair value | 101,869 | 95,710 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 1,293 | 4,276 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 1,294 | 4,276 |
Other short-term borrowed funds, carrying value | 5,861 | 6,253 |
Other short-term borrowed funds, fair value | 5,861 | 6,253 |
Long-term borrowed funds, carrying value | 4,153 | 4,642 |
Long-term borrowed funds, fair value | 4,261 | 4,706 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 0 | 0 |
Securities held-to-maturity, fair value | 0 | 0 |
Other investment securities, at cost, carrying value | 0 | 0 |
Other investment securities, at cost, fair value | 0 | 0 |
Other loans held for sale, carrying value | 0 | 0 |
Other loans held for sale, fair value | 0 | 0 |
Loans and leases, carrying value | 0 | 0 |
Loans and leases, fair value | 0 | 0 |
Deposits, carrying value | 0 | 0 |
Deposits, fair value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 |
Other short-term borrowed funds, carrying value | 0 | 0 |
Other short-term borrowed funds, fair value | 0 | 0 |
Long-term borrowed funds, carrying value | 0 | 0 |
Long-term borrowed funds, fair value | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 5,285 | 5,148 |
Securities held-to-maturity, fair value | 5,386 | 5,193 |
Other investment securities, at cost, carrying value | 822 | 867 |
Other investment securities, at cost, fair value | 822 | 867 |
Other loans held for sale, carrying value | 0 | 0 |
Other loans held for sale, fair value | 0 | 0 |
Loans and leases, carrying value | 107 | 102 |
Loans and leases, fair value | 107 | 102 |
Deposits, carrying value | 101,866 | 95,707 |
Deposits, fair value | 101,869 | 95,710 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 1,293 | 4,276 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 1,294 | 4,276 |
Other short-term borrowed funds, carrying value | 5,861 | 6,253 |
Other short-term borrowed funds, fair value | 5,861 | 6,253 |
Long-term borrowed funds, carrying value | 4,153 | 4,642 |
Long-term borrowed funds, fair value | 4,261 | 4,706 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | 0 | 0 |
Securities held-to-maturity, fair value | 0 | 0 |
Other investment securities, at cost, carrying value | 0 | 0 |
Other investment securities, at cost, fair value | 0 | 0 |
Other loans held for sale, carrying value | 51 | 25 |
Other loans held for sale, fair value | 51 | 25 |
Loans and leases, carrying value | 97,324 | 93,308 |
Loans and leases, fair value | 97,207 | 93,572 |
Deposits, carrying value | 0 | 0 |
Deposits, fair value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 |
Other short-term borrowed funds, carrying value | 0 | 0 |
Other short-term borrowed funds, fair value | 0 | 0 |
Long-term borrowed funds, carrying value | 0 | 0 |
Long-term borrowed funds, fair value | $ 0 | $ 0 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) $ in Millions | Aug. 03, 2015shares | Apr. 07, 2015shares | Sep. 30, 2015USD ($)subsidiaryshares |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividends | $ 161 | ||
Dividend to preferred stockholders | 7 | ||
Average | Subordinated Debt | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Annual interest burden on debt | $ 115 | ||
Bank subsidiaries | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Number of Financial Subsidiaries | subsidiary | 2 | ||
Reportable legal entities | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Liquid assets | $ 431 | ||
RBSG | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Treasury stock purchased (in shares) | shares | 9,615,384 | 10,473,397 | 20,088,781 |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | ||
Actual | $ 13,200 | |
Minimum Capital Adequacy | 5,052 | |
Classification as Well-capitalized | $ 7,298 | |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | ||
Actual | 11.80% | |
Minimum Capital Adequacy | 4.50% | |
Classification as Well-capitalized | 6.50% | |
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 Risk-Weighted Assets (Amount) | ||
Actual | $ 13,447 | $ 13,173 |
Minimum Capital Adequacy | 6,737 | 4,239 |
Classification as Well-capitalized | $ 8,982 | $ 6,358 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 12.00% | 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 | $ 17,307 | $ 16,781 |
Minimum Capital Adequacy | 8,982 | 8,477 |
Classification as Well-capitalized | $ 11,228 | $ 10,596 |
Total Capital to Risk-Weighted Assets (Ratio) | ||
Actual | 15.40% | 15.80% |
Minimum Capital Adequacy | 8.00% | 8.00% |
Classification as Well-capitalized | 10.00% | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ||
Actual | $ 13,447 | $ 13,173 |
Minimum Capital Adequacy | 5,173 | 4,982 |
Classification as Well-capitalized | $ 6,467 | $ 6,227 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||
Actual | 10.40% | 10.60% |
Minimum Capital Adequacy | 4.00% | 4.00% |
Classification as Well-capitalized | 5.00% | 5.00% |
EXIT COSTS AND RESTRUCTURING120
EXIT COSTS AND RESTRUCTURING RESERVES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 27 | $ 101 |
Restructuring charges incurred | 29 | 124 |
Outside Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 6 | 24 |
Salaries & Employee Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 3 | |
Other Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 12 | |
Restructuring charges incurred | 7 | |
Employee Severance | Salaries & Employee Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 41 | |
Restructuring charges incurred | 5 | 43 |
Facility Closing | Occupancy & Equipment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 18 | 18 |
Restructuring charges incurred | $ 18 | 24 |
Building Impairment | Occupancy & Equipment | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment charges | 6 | |
Software expense | Amortization of software | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 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 |
EXIT COSTS AND RESTRUCTURING121
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 44 | $ 26 |
Additions | 29 | 124 |
Reversals | (3) | (10) |
Utilization | (32) | (96) |
Ending balance | 38 | 44 |
Employee Severance | Salaries & Employee Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 23 | 2 |
Additions | 5 | 43 |
Reversals | (2) | (1) |
Utilization | (10) | (21) |
Ending balance | 16 | 23 |
Facility Closing | Occupancy & Equipment | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 18 | 24 |
Additions | 18 | 24 |
Reversals | (1) | (5) |
Utilization | (16) | (25) |
Ending balance | 19 | 18 |
Other Restructuring | Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 3 | 0 |
Additions | 6 | 57 |
Reversals | 0 | (4) |
Utilization | (6) | (50) |
Ending balance | $ 3 | $ 3 |
RECLASSIFICATIONS OUT OF ACC122
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (372) | $ (648) | ||
Other comprehensive income before reclassifications | 149 | 264 | ||
Other-than-temporary impairment not recognized in earnings on securities | $ (8) | $ (1) | (26) | (22) |
Amounts reclassified from other comprehensive (loss) income | (10) | (29) | ||
Net other comprehensive (loss) income | 113 | 213 | ||
Ending balance | (259) | (435) | (259) | (435) |
Net Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (69) | (298) | ||
Other comprehensive income before reclassifications | 108 | 137 | ||
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | ||
Amounts reclassified from other comprehensive (loss) income | (8) | 16 | ||
Net other comprehensive (loss) income | 100 | 153 | ||
Ending balance | 31 | (145) | 31 | (145) |
Net Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 74 | (91) | ||
Other comprehensive income before reclassifications | 41 | 127 | ||
Other-than-temporary impairment not recognized in earnings on securities | (26) | (22) | ||
Amounts reclassified from other comprehensive (loss) income | (9) | (13) | ||
Net other comprehensive (loss) income | 6 | 92 | ||
Ending balance | 80 | 1 | 80 | 1 |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (377) | (259) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | ||
Amounts reclassified from other comprehensive (loss) income | 7 | (32) | ||
Net other comprehensive (loss) income | 7 | (32) | ||
Ending balance | $ (370) | $ (291) | $ (370) | $ (291) |
RECLASSIFICATIONS OUT OF ACC123
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest income | $ 154 | $ 155 | $ 468 | $ 458 | |
Interest expense | (118) | (93) | (336) | (262) | |
Net impairment losses recognized in earnings | (2) | (1) | (5) | (7) | |
Salaries and employee benefits | (404) | (409) | (1,234) | (1,281) | |
Income before income tax expense | 335 | 274 | 932 | 985 | |
Income tax expense | 115 | 85 | 313 | 317 | |
NET INCOME | 220 | 189 | 619 | 668 | |
Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax expense | 3 | 16 | 7 | 15 | |
NET INCOME | 1 | 32 | 10 | 29 | |
Reclassification adjustment for net derivative gains (losses) included in net income: | Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest income | [1] | 22 | 18 | 57 | 54 |
Interest expense | [1] | (15) | (23) | (44) | (79) |
Income before income tax expense | 7 | (5) | 13 | (25) | |
Income tax expense | 3 | (2) | 5 | (9) | |
NET INCOME | 4 | (3) | 8 | (16) | |
Reclassification of net securities gains (losses) to net income: | Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Securities gains, net | 2 | 2 | 19 | 27 | |
Net impairment losses recognized in earnings | (2) | (1) | (5) | (7) | |
Income before income tax expense | 0 | 1 | 14 | 20 | |
Income tax expense | 0 | 0 | 5 | 7 | |
NET INCOME | 0 | 1 | 9 | 13 | |
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) | 52 | (10) | 49 | |
Income before income tax expense | (3) | 52 | (10) | 49 | |
Income tax expense | 0 | 18 | (3) | 17 | |
NET INCOME | $ (3) | $ 34 | $ (7) | $ 32 | |
[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 ACC124
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Effects to Net Income of Amounts Reclassified Out of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | $ 856 | $ 820 | $ 2,532 | $ 2,461 |
Provision for credit losses | 76 | 77 | 211 | 247 |
Noninterest income | 353 | 341 | 1,060 | 1,339 |
Noninterest expense | 798 | 810 | 2,449 | 2,568 |
Income before income tax expense | 335 | 274 | 932 | 985 |
Income tax expense | 115 | 85 | 313 | 317 |
NET INCOME | 220 | 189 | 619 | 668 |
Amount Reclassified from OCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | 856 | 820 | 2,532 | 2,461 |
Provision for credit losses | 76 | 77 | 211 | 247 |
Noninterest income | 353 | 341 | 1,060 | 1,339 |
Noninterest expense | 798 | 810 | 2,449 | 2,568 |
Income before income tax expense | 335 | 274 | 932 | 985 |
Income tax expense | 115 | 85 | 313 | 317 |
NET INCOME | 220 | 189 | 619 | 668 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | 7 | (5) | 13 | (25) |
Noninterest income | 0 | 1 | 14 | 20 |
Noninterest expense | 3 | (52) | 10 | (49) |
Income tax expense | 3 | 16 | 7 | 15 |
NET INCOME | $ 1 | $ 32 | $ 10 | $ 29 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of segments | segment | 2 | |||
Revenues | $ 1,209 | $ 1,161 | $ 3,592 | $ 3,800 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 791 | 758 | 2,317 | 2,296 |
Consumer Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 399 | $ 374 | 1,169 | $ 1,108 |
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 856 | $ 820 | $ 2,532 | $ 2,461 |
Noninterest income | 353 | 341 | 1,060 | 1,339 |
Total revenue | 1,209 | 1,161 | 3,592 | 3,800 |
Noninterest expense | 798 | 810 | 2,449 | 2,568 |
Profit (loss) before provision for credit losses | 411 | 351 | 1,143 | 1,232 |
Provision for credit losses | 76 | 77 | 211 | 247 |
Income before income tax expense | 335 | 274 | 932 | 985 |
Income tax expense | 115 | 85 | 313 | 317 |
NET INCOME | 220 | 189 | 619 | 668 |
Total average assets | 135,103 | 128,691 | 134,655 | 126,598 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 556 | 532 | 1,633 | 1,615 |
Noninterest income | 235 | 226 | 684 | 681 |
Total revenue | 791 | 758 | 2,317 | 2,296 |
Noninterest expense | 623 | 609 | 1,832 | 1,902 |
Profit (loss) before provision for credit losses | 168 | 149 | 485 | 394 |
Provision for credit losses | 64 | 66 | 187 | 195 |
Income before income tax expense | 104 | 83 | 298 | 199 |
Income tax expense | 36 | 29 | 103 | 69 |
NET INCOME | 68 | 54 | 195 | 130 |
Total average assets | 53,206 | 49,012 | 52,438 | 48,398 |
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 299 | 270 | 861 | 790 |
Noninterest income | 100 | 104 | 308 | 318 |
Total revenue | 399 | 374 | 1,169 | 1,108 |
Noninterest expense | 175 | 162 | 529 | 472 |
Profit (loss) before provision for credit losses | 224 | 212 | 640 | 636 |
Provision for credit losses | 3 | 0 | (11) | (7) |
Income before income tax expense | 221 | 212 | 651 | 643 |
Income tax expense | 76 | 73 | 224 | 222 |
NET INCOME | 145 | 139 | 427 | 421 |
Total average assets | 43,113 | 38,854 | 42,451 | 37,951 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 1 | 18 | 38 | 56 |
Noninterest income | 18 | 11 | 68 | 340 |
Total revenue | 19 | 29 | 106 | 396 |
Noninterest expense | 0 | 39 | 88 | 194 |
Profit (loss) before provision for credit losses | 19 | (10) | 18 | 202 |
Provision for credit losses | 9 | 11 | 35 | 59 |
Income before income tax expense | 10 | (21) | (17) | 143 |
Income tax expense | 3 | (17) | (14) | 26 |
NET INCOME | 7 | (4) | (3) | 117 |
Total average assets | $ 38,784 | $ 40,825 | $ 39,766 | $ 40,249 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unvested share awards | 3,363,665 | 3,363,665 | |||
Number of shares available for grant | 60,893,195 | 60,893,195 | |||
Compensation expense related to share-based plans | $ 7,000,000 | $ 10,000,000 | $ 22,000,000 | $ 29,000,000 | |
Share-based compensation not yet recognized | $ 17,000,000 | $ 17,000,000 | |||
Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 1,118,513 | ||||
Aggregate grant date fair value | $ 28,000,000 | ||||
Directors Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 31,438 | ||||
Aggregate grant date fair value | $ 1,000,000 | ||||
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% | |||
Amount of compensation eligible to be contributed | $ 25,000 | ||||
Time-based restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock Units or Convertible Bonds | Prior to IPO | Percent Vesting in March 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Restricted Stock Units or Convertible Bonds | Prior to IPO | Percent Vesting in March 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Special IPO Awards | Prior to IPO | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion period | 30 days | ||||
Restricted Stock Units (RSUs) | RBSG | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares converted | 19,390,752 | ||||
Restricted Stock Units (RSUs) | Citizens | |||||
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 | ||||
Material Risk Taker Shares | Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Retention period, minimum | 3 years | ||||
Retention period, maximum | 5 years |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) | Aug. 22, 2014 |
Earnings Per Share [Abstract] | |
Stock split | 165,582 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator (basic and diluted): | ||||
Net income | $ 220 | $ 189 | $ 619 | $ 668 |
Less: Preferred stock dividends | 7 | 0 | 7 | 0 |
Net income available to common stockholders | $ 213 | $ 189 | $ 612 | $ 668 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in Shares) | 530,985,255 | 559,998,324 | 538,279,222 | 559,998,324 |
Dilutive common shares: share-based awards (in Shares) | 2,412,903 | 245,423 | 2,647,139 | 82,707 |
Weighted-average common shares outstanding - diluted (in Shares) | 533,398,158 | 560,243,747 | 540,926,361 | 560,081,031 |
Earnings per common share: | ||||
Basic (in Dollars per Share) | $ 0.40 | $ 0.34 | $ 1.14 | $ 1.19 |
Diluted (in Dollars per Share) | $ 0.40 | $ 0.34 | $ 1.13 | $ 1.19 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Deposit insurance | $ 28 | $ 23 | $ 88 | $ 69 |
Promotional expense | 25 | 19 | 76 | 60 |
Settlements and operating losses | 10 | 10 | 33 | 74 |
Postage and delivery | 12 | 12 | 35 | 37 |
Other | 58 | 58 | 173 | 199 |
Other operating expense | $ 133 | $ 122 | $ 405 | $ 439 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 03, 2015 | Oct. 22, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Subsequent Event [Line Items] | ||||||
Dividends declared and paid (in Dollars per Share) | $ 0.10 | $ 0.68 | $ 0.30 | $ 1.34 | ||
Dividends paid to common stockholders | $ 90 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
RBS sale of CFG's common stock (in Shares) | 110,461,782 | |||||
Percent of outstanding common stock held by RBS prior to sale of shares | 20.90% | |||||
Sale of CFG common stock by RBS (in Dollars per Share) | $ 23.38 | |||||
Dividends declared and paid (in Dollars per Share) | $ 0.10 | |||||
Dividends paid to common stockholders | $ 53 |