Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity Central Index Key | 759,944 | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 | 527,811,625 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,672,625,866 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS: | |||
Cash and due from banks | $ 1,099 | $ 1,171 | |
Interest-bearing cash and due from banks | 1,986 | 2,105 | |
Interest-bearing deposits in banks | 356 | 370 | |
Securities available for sale, at fair value (including $4,283 and $7,181 pledged to creditors, respectively) | [1] | 17,884 | 18,656 |
Securities held to maturity (including $135 and $40 pledged to creditors, respectively, and fair value of $5,297 and $5,193, respectively) | [1] | 5,258 | 5,148 |
Other investment securities, at fair value | 70 | 33 | |
Other investment securities, at cost | 863 | 867 | |
Loans held for sale, at fair value | 325 | 256 | |
Other loans held for sale | 40 | 25 | |
Loans and leases | 99,042 | 93,410 | |
Less: Allowance for loan and lease losses | 1,216 | 1,195 | |
Net loans and leases | 97,826 | 92,215 | |
Derivative assets (related party balances of $52 and $1, respectively) | 625 | 629 | |
Premises and equipment, net | 595 | 595 | |
Bank-owned life insurance | 1,564 | 1,527 | |
Goodwill | 6,876 | 6,876 | |
Other assets (related party balances of $7 and $7, respectively) | 2,841 | 2,384 | |
TOTAL ASSETS | 138,208 | 132,857 | |
LIABILITIES: | |||
Noninterest-bearing | 27,649 | 26,086 | |
Interest-bearing (related party balances of $2 and $5, respectively) | 74,890 | 69,621 | |
Total deposits | 102,539 | 95,707 | |
Federal funds purchased and securities sold under agreements to repurchase | 802 | 4,276 | |
Other short-term borrowed funds | 2,630 | 6,253 | |
Derivative liabilities (related party balances of $212 and $387, respectively) | 485 | 612 | |
Deferred taxes, net | 730 | 493 | |
Long-term borrowed funds (related party balances of $1,250 and $2,000, respectively) | 9,886 | 4,642 | |
Other liabilities (related party balances of $15 and $30, respectively) | 1,490 | 1,606 | |
TOTAL LIABILITIES | $ 118,562 | $ 113,589 | |
Contingencies (refer to Note 17) | |||
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 December 31, 2015, and no shares outstanding at December 31, 2014 | $ 247 | $ 0 | |
Common stock: $0.01 par value, 1,000,000,000 shares authorized, 563,117,415 shares issued and 527,774,428 shares outstanding at December 31, 2015 and 1,000,000,000 shares authorized, 560,262,638 shares issued and 545,884,519 shares outstanding at December 31, 2014 | 6 | 6 | |
Additional paid-in capital | 18,725 | 18,676 | |
Retained earnings | 1,913 | 1,294 | |
Treasury Stock, at cost, 35,342,987 and 14,378,119 shares at December 31, 2015 and December 31, 2014, respectively | (858) | (336) | |
Accumulated other comprehensive loss | (387) | (372) | |
TOTAL STOCKHOLDERS’ EQUITY | 19,646 | 19,268 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 138,208 | $ 132,857 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 5,297 | $ 5,193 |
Derivative assets | 625 | 629 |
Other assets | 2,841 | 2,384 |
LIABILITIES: | ||
Interest-bearing deposits | 74,890 | 69,621 |
Derivative liabilities | 485 | 612 |
Long-term borrowed funds | 9,886 | 4,642 |
Other liabilities | $ 1,490 | $ 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) | 563,117,415 | 560,262,638 |
Common stock, outstanding (in shares) | 527,774,428 | 545,884,519 |
Treasury stock (in shares) | 35,342,987 | 14,378,119 |
Related Party | ||
ASSETS: | ||
Derivative assets | $ 52 | $ 1 |
Other assets | 7 | 7 |
LIABILITIES: | ||
Interest-bearing deposits | 2 | 5 |
Derivative liabilities | 212 | 387 |
Long-term borrowed funds | 1,250 | 2,000 |
Other liabilities | $ 15 | $ 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 |
Available-for-sale Securities | ||
ASSETS: | ||
Securities, pledged as collateral | $ 4,283 | $ 7,181 |
Held-to-maturity Securities | ||
ASSETS: | ||
Securities, pledged as collateral | $ 135 | $ 40 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME: | |||
Interest and fees on loans and leases (related party balances of $70, $72 and $56, respectively) | $ 3,211 | $ 3,012 | $ 3,001 |
Interest and fees on loans held for sale, at fair value | 10 | 5 | 12 |
Interest and fees on other loans held for sale | 7 | 23 | 0 |
Investment securities | 621 | 619 | 477 |
Interest-bearing deposits in banks | 5 | 5 | 11 |
Total interest income | 3,854 | 3,664 | 3,501 |
INTEREST EXPENSE: | |||
Deposits (related party balances of $0, $0 and $15, respectively) | 237 | 156 | 216 |
Deposits held for sale | 0 | 4 | 0 |
Federal funds purchased and securities sold under agreements to repurchase (related party balances of $7, $24 and $184, respectively) | 16 | 32 | 192 |
Other short-term borrowed funds (related party balances of $51, $75 and $3, respectively) | 67 | 89 | 4 |
Long-term borrowed funds (related party balances of $76, $64 and $16, respectively) | 132 | 82 | 31 |
Total interest expense | 452 | 363 | 443 |
Net interest income | 3,402 | 3,301 | 3,058 |
Provision for credit losses | 302 | 319 | 479 |
Net interest income after provision for credit losses | 3,100 | 2,982 | 2,579 |
NONINTEREST INCOME: | |||
Service charges and fees (related party balances of $3, $6 and $15, respectively) | 575 | 574 | 640 |
Card fees | 232 | 233 | 234 |
Trust and investment services fees | 157 | 158 | 149 |
Mortgage banking fees | 101 | 71 | 153 |
Capital markets fees (related party balances of $9, $11 and $14, respectively) | 88 | 91 | 53 |
Foreign exchange and trade finance fees (related party balances of $19, $58 and ($15), respectively) | 90 | 95 | 97 |
Bank-owned life insurance income | 56 | 49 | 50 |
Securities gains, net | 29 | 28 | 144 |
Net securities impairment losses recognized in earnings | (7) | (10) | (8) |
Other income (related party balances of ($105), ($209), and ($32), respectively) | 101 | 389 | 120 |
Total noninterest income | 1,422 | 1,678 | 1,632 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 1,636 | 1,678 | 1,652 |
Outside services (related party balances of $11, $22 and $20, respectively) | 371 | 420 | 360 |
Occupancy (related party balances of $2, $1 and $3, respectively) | 319 | 326 | 327 |
Equipment expense | 257 | 250 | 275 |
Amortization of software | 146 | 145 | 102 |
Goodwill impairment | 0 | 0 | 4,435 |
Other operating expense | 530 | 573 | 528 |
Total noninterest expense | 3,259 | 3,392 | 7,679 |
Income (loss) before income tax expense (benefit) | 1,263 | 1,268 | (3,468) |
Income tax expense (benefit) | 423 | 403 | (42) |
NET INCOME (LOSS) | 840 | 865 | (3,426) |
Net income (loss) available to common stockholders | $ 833 | $ 865 | $ (3,426) |
Weighted-average common shares outstanding: | |||
Basic (in Shares) | 535,599,731 | 556,674,146 | 559,998,324 |
Diluted (in Shares) | 538,220,898 | 557,724,936 | 559,998,324 |
Per common share information: | |||
Basic earnings (loss) (in Dollars per Share) | $ 1.55 | $ 1.55 | $ (6.12) |
Diluted earnings (loss) (in Dollars per Share) | 1.55 | 1.55 | (6.12) |
Dividends declared and paid (in dollars per Share) | $ 0.4 | $ 1.43 | $ 2.12 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INTEREST INCOME: | |||
Interest and fees on loans and leases | $ 3,211 | $ 3,012 | $ 3,001 |
INTEREST EXPENSE: | |||
Deposits interest expense | 237 | 156 | 216 |
Federal funds purchased and securities sold under agreement to repurchase | 16 | 32 | 192 |
Other short-term borrowed funds | 67 | 89 | 4 |
Long-term borrowed funds | 132 | 82 | 31 |
NONINTEREST INCOME: | |||
Service charges and fees | 575 | 574 | 640 |
Capital markets fees | 88 | 91 | 53 |
Foreign exchange and trade finance fees | 90 | 95 | 97 |
Other income | 101 | 389 | 120 |
NONINTEREST EXPENSE: | |||
Outside services | 371 | 420 | 360 |
Occupancy | 319 | 326 | 327 |
Related Party | |||
INTEREST INCOME: | |||
Interest and fees on loans and leases | 70 | 72 | 56 |
INTEREST EXPENSE: | |||
Deposits interest expense | 0 | 0 | 15 |
Federal funds purchased and securities sold under agreement to repurchase | 7 | 24 | 184 |
Other short-term borrowed funds | 51 | 75 | 3 |
Long-term borrowed funds | 76 | 64 | 16 |
NONINTEREST INCOME: | |||
Service charges and fees | 3 | 6 | 15 |
Capital markets fees | 9 | 11 | 14 |
Foreign exchange and trade finance fees | 19 | 58 | (15) |
Other income | (105) | (209) | (32) |
NONINTEREST EXPENSE: | |||
Outside services | 11 | 22 | 20 |
Occupancy | $ 2 | $ 1 | $ 3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 840 | $ 865 | $ (3,426) |
Other comprehensive income (loss): | |||
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of $57, $122 and ($100), respectively | 93 | 212 | (172) |
Reclassification adjustment for net derivative losses (gains) included in net income, net of income taxes of ($9), $10, and $66, respectively | (14) | 17 | 114 |
Net unrealized securities available for sale (losses) gains arising during the periods, net of income taxes of ($38), $116, and ($165), respectively | (66) | 198 | (285) |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of ($14), ($13), and ($15), respectively | (22) | (22) | (26) |
Reclassification of net securities gains to net income, net of income taxes of ($8), ($7), and ($50), respectively | (14) | (11) | (86) |
Defined benefit pension plans: | |||
Actuarial (loss) gain, net of income taxes of ($3), ($92), and $66, respectively | (3) | (148) | 110 |
Net prior service credit, net of income taxes of $0, $3 and $0, respectively | 0 | 4 | 0 |
Amortization of actuarial loss, net of income taxes $3, $3 and $5, respectively | 12 | 7 | 9 |
Amortization of net prior service credit, net of income taxes $0, $0 and $0, respectively | (1) | (1) | 0 |
Divestitures to RBS effective September 1, 2014, net of income taxes of $0, $12 and $0, respectively | 0 | 20 | 0 |
Total other comprehensive (loss) income, net of income taxes | (15) | 276 | (336) |
Total comprehensive income (loss) | $ 825 | $ 1,141 | $ (3,762) |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative instrument gains (losses) arising during the periods, tax | $ 57 | $ 122 | $ (100) |
Reclassification adjustment for net derivative losses (gains) included in net income, tax | (9) | 10 | 66 |
Net unrealized securities available for sale (losses) gains arising during the periods, tax | (38) | 116 | (165) |
Other-than-temporary impairment not recognized in earnings on securities, tax | (14) | (13) | (15) |
Reclassification of net securities gains to net income, tax | (8) | (7) | (50) |
Actuarial (loss) gain, tax | (3) | (92) | 66 |
Net prior service credit, tax | 0 | 3 | 0 |
Amortization of actuarial loss, tax | 3 | 3 | 5 |
Amortization of net prior service credit, tax | 0 | 0 | 0 |
Divestitures to RBS effective September 1, 2014, tax | $ 0 | $ 12 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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, 2012 | 0 | 560 | |||||
Beginning balance at Dec. 31, 2012 | $ 24,129 | $ 0 | $ 6 | $ 18,589 | $ 5,846 | $ 0 | $ (312) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to RBS | (185) | (185) | |||||
Dividends to RBS — exchange transactions | (1,000) | (1,000) | |||||
Capital contribution | 14 | 14 | |||||
Employee stock purchase plan shares purchased | 0 | ||||||
Total comprehensive income: | |||||||
Net income (loss) | (3,426) | (3,426) | |||||
Other comprehensive income (loss) | (336) | (336) | |||||
Total comprehensive income (loss) | (3,762) | (3,426) | (336) | ||||
Ending balance (in shares) at Dec. 31, 2013 | 0 | 560 | |||||
Ending balance at Dec. 31, 2013 | 19,196 | $ 0 | $ 6 | 18,603 | 1,235 | 0 | (648) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (16) | (16) | |||||
Dividends to RBS | (124) | (124) | |||||
Dividends to RBS — exchange transactions | (666) | (666) | |||||
Common shares repurchased from RBS (in shares) | (14) | ||||||
Common shares repurchased from RBS | (334) | (334) | |||||
Share-based compensation plans | 69 | 71 | (2) | ||||
Employee stock purchase plan shares purchased | 2 | 2 | |||||
Total comprehensive income: | |||||||
Net income (loss) | 865 | 865 | |||||
Other comprehensive income (loss) | 276 | 276 | |||||
Total comprehensive income (loss) | 1,141 | 865 | 276 | ||||
Ending balance (in shares) at Dec. 31, 2014 | 0 | 546 | |||||
Ending 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 | (143) | (143) | |||||
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 | 18 | 40 | (22) | ||||
Employee stock purchase plan shares purchased | 9 | 9 | |||||
Total comprehensive income: | |||||||
Net income (loss) | 840 | 840 | |||||
Other comprehensive income (loss) | (15) | (15) | |||||
Total comprehensive income (loss) | 825 | 840 | (15) | ||||
Ending balance (in shares) at Dec. 31, 2015 | 0 | 528 | |||||
Ending balance at Dec. 31, 2015 | $ 19,646 | $ 247 | $ 6 | $ 18,725 | $ 1,913 | $ (858) | $ (387) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 840 | $ 865 | $ (3,426) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for credit losses | 302 | 319 | 479 |
Originations of mortgage loans held for sale | (2,363) | (1,615) | (3,781) |
Proceeds from sales of mortgage loans held for sale | 2,381 | 1,578 | 4,229 |
Purchases of commercial loans held for sale | (1,176) | (312) | 0 |
Proceeds from sales of commercial loans held for sale | 1,158 | 269 | 0 |
Amortization of terminated cash flow hedges (related party balances of $17, $45 and $69, respectively) | 17 | 46 | 73 |
Depreciation, amortization and accretion | 471 | 386 | 404 |
Mortgage servicing rights valuation recovery | (9) | (5) | (47) |
Securities impairment | 7 | 10 | 8 |
Goodwill impairment | 0 | 0 | 4,435 |
Deferred income taxes | 249 | 141 | (53) |
Share-based compensation | 24 | 53 | 27 |
Loss on disposal/impairment of premises and equipment | 0 | 27 | 16 |
Loss on sale of other branch assets held for sale | 0 | 9 | 0 |
Gain on sales of: | |||
Debt securities | (29) | (28) | (144) |
Marketable equity securities available for sale | (3) | 0 | 0 |
Premises and equipment | (9) | 0 | 0 |
Extinguishment of debt | (3) | 0 | 0 |
Other loans held for sale | 0 | (11) | 0 |
Deposits held for sale | 0 | (286) | 0 |
(Increase) decrease in other assets (related party balances of ($51), $55 and ($35), respectively) | (467) | (295) | 827 |
(Decrease) increase in other liabilities (related party balances of ($190), ($445) and ($452), respectively) | (161) | 239 | (398) |
Net cash provided by operating activities | 1,229 | 1,390 | 2,649 |
INVESTING ACTIVITIES | |||
Purchases of securities available for sale | (6,783) | (8,315) | (10,999) |
Proceeds from maturities and paydowns of securities available for sale | 3,420 | 2,999 | 4,708 |
Proceeds from sales of securities available for sale | 3,916 | 3,325 | 3,645 |
Purchases of securities held to maturity | (932) | (1,174) | (224) |
Proceeds from maturities and paydowns of securities held to maturity | 761 | 362 | 22 |
Proceeds from sales of securities held to maturity | 72 | 0 | 0 |
Purchases of other investment securities, at fair value | (157) | 0 | 0 |
Proceeds from sales of other investment securities, at fair value | 120 | 0 | 0 |
Purchases of other investment securities, at cost | (91) | (84) | (1) |
Proceeds from sales of other investment securities, at cost | 95 | 146 | 127 |
Net decrease (increase) in interest-bearing deposits in banks | 14 | (137) | 993 |
Net increase in loans and leases (related party balances of $0, ($413) and $0, respectively) | (6,019) | (6,900) | (341) |
Net increase in bank-owned life insurance | (37) | (188) | (40) |
Premises and equipment: | |||
Purchases | (121) | (141) | (160) |
Proceeds from sales | 15 | 3 | 25 |
Capitalization of software | (178) | (170) | (208) |
Net cash used in investing activities | (5,905) | (10,274) | (2,453) |
FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 6,832 | 3,813 | (2,968) |
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | (3,474) | (515) | 1,190 |
Net (decrease) increase in other short-term borrowed funds | (4,383) | 4,002 | 1,750 |
Proceeds from issuance of long-term borrowed funds (related party balances of $0, $1,000 and $1,000, respectively) | 6,750 | 3,249 | 1,002 |
Repayments of long-term borrowed funds (related party balances of $750, $0 and $280, respectively) | (766) | (6) | (291) |
Treasury stock purchased | (500) | (334) | 0 |
Net proceeds from issuance of preferred stock | 247 | 0 | 0 |
Dividends declared and paid to RBS | (71) | (790) | (1,185) |
Dividends declared and paid to other common stockholders | (143) | (16) | 0 |
Dividends declared and paid to preferred stockholders | (7) | 0 | 0 |
Net cash provided by (used in) financing activities | 4,485 | 9,403 | (502) |
(Decrease) increase in cash and cash equivalents | (191) | 519 | (306) |
Cash and cash equivalents at beginning of period | 3,276 | 2,757 | 3,063 |
Cash and cash equivalents at end of period | 3,085 | 3,276 | 2,757 |
Supplemental disclosures: | |||
Interest paid | 454 | 338 | 452 |
Income taxes paid | 157 | 391 | 20 |
Non-cash items: | |||
Transfer of securities from available for sale to held to maturity | 0 | 0 | 4,240 |
Transfer of loans and leases to other loans held for sale | 0 | 0 | 1,078 |
Loans securitized and transferred to securities available for sale | 3 | 18 | 106 |
Income tax withholding on stock purchased for share based compensation | 22 | 2 | 0 |
Stock purchased for share-based compensation plans | 40 | 71 | 0 |
Capital contribution | 0 | 0 | 14 |
Employee stock purchase plan shares purchased | 9 | 2 | 0 |
Due from broker for securities sold but not settled | $ 0 | $ 0 | $ (442) |
CONSOLIDATED STATEMENTS OF CA10
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization of terminated cash flow hedges | $ 17 | $ 46 | $ 73 |
(Increase) decrease in other assets | (467) | (295) | 827 |
(Decrease) increase in other liabilities | (161) | 239 | (398) |
Net increase in loans and leases | (6,019) | (6,900) | (341) |
Proceeds from issuance of long-term borrowed funds | 6,750 | 3,249 | 1,002 |
Repayments of long-term borrowed funds | 766 | 6 | 291 |
Related Party | |||
Amortization of terminated cash flow hedges | 17 | 45 | 69 |
(Increase) decrease in other assets | (51) | 55 | (35) |
(Decrease) increase in other liabilities | (190) | (445) | (452) |
Net increase in loans and leases | 0 | (413) | 0 |
Proceeds from issuance of long-term borrowed funds | 0 | 1,000 | 1,000 |
Repayments of long-term borrowed funds | $ 750 | $ 0 | $ 280 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Citizens Financial Group, Inc. conform to GAAP. The Company’s principal business activity is banking, conducted through its subsidiaries Citizens Bank, N.A. and Citizens Bank of Pennsylvania. Following is a summary of the significant accounting policies of the Company: Basis of Presentation The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements for a variable interest entity to be consolidated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. 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 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. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. Interest-Bearing Deposits in Banks Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. Securities Investments in debt and equity securities are carried in four portfolios: AFS, HTM, trading, and other investment securities. Management determines the appropriate classification at the time of purchase. Securities in the AFS portfolio will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy. Gains and losses on the sales of securities are recognized in earnings and are computed using the specific identification method. Security impairments (i.e., declines in the fair value of securities below cost) that are considered by management to be other-than-temporary are recognized in earnings as realized losses. However, the determination of the impairment amount is dependent on the Company’s intent to sell (or not sell) the security. If the Company intends to sell the impaired security, the impairment loss recognized in current period earnings equals the difference between the instrument’s fair value and amortized cost. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, only the credit-related impairment loss is recognized in current period earnings and this amount equals the difference between the amortized cost of the security and the present value of the expected cash flows that have currently been projected. Securities AFS are carried at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Premiums and discounts on debt securities are amortized or accreted using the interest method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. Securities are classified as HTM because the Company has the ability and intent to hold the securities to maturity. Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in OCI and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. The securities are reported at cost and adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. Securities that are classified as trading are bought and held principally for the purpose of selling them in the near term and are carried at fair value. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Other investment securities are composed mainly of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealer (which are carried at fair value, with changes in fair value recognized in noninterest income). Other investment securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. Loans and Leases Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts (on purchased loans). Deferred loan origination fees and costs and purchase discounts and premiums are amortized as an adjustment of yield over the life of the loan, using the interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Leases are classified at the inception of the lease. Lease receivables, including leveraged leases, are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, including unamortized investment credits. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against noninterest income. Leveraged leases are reported net of non-recourse debt. Unearned income is recognized to yield a level rate of return on the net investment in the leases. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. Loans held for sale are carried at the lower of cost or fair value. Loans held for sale accounted for under the fair value option (including those loans associated with our mortgage banking business and secondary loan trading desk) are carried at fair value. Allowance for Credit Losses Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience, and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. The ALLL is maintained at a level that management considers to be reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The evaluation of the adequacy of the commercial, commercial real estate, and lease ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default, and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location, delinquency status, and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans, and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can used to support management overlays if deemed necessary. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows, compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. Commercial loans and leases are charged off to the ALLL when there is little prospect of collecting either principal or interest. Charge-offs of commercial loans and leases usually involve receipt of borrower-specific adverse information. For commercial collateral-dependent loans, an appraisal or other valuation is used to quantify a shortfall between the fair value of the collateral less costs to sell and the recorded investment in the commercial loan. Retail loan charge-offs are generally based on established delinquency thresholds rather than borrower-specific adverse information. When a loan is collateral-dependent, any shortfalls between the fair value of the collateral less costs to sell and the recorded investment is promptly charged off. Placing any loan or lease on nonaccrual status does not by itself require a partial or total charge-off; however, any identified losses are charged off at that time. Nonperforming Loans and Leases Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and it’s reasonably assured that the loan or lease will be brought fully current within a reasonable period. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent. Residential mortgages are returned to accrual status when principal and interest payments become less than 120 days past due and when future payments are reasonably assured. Credit card balances are placed on nonaccrual status when past due 90 days or more. Credit card balances are restored to accruing status if they subsequently become less than 90 days past due. Guaranteed student loans are not placed on nonaccrual status. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Loans are generally returned to accrual status if the loan becomes less than 15 days past due. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. Impaired Loans A loan is considered to be impaired when it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogenous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. A loan modification is identified as a TDR when the Company or bankruptcy court grants the borrower a concession the Company would not otherwise make, in response to the borrower’s financial difficulties. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forbearance, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for loans with risk similar to that of the restructured loan. Additionally, TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. Impairment evaluations are performed at the individual loan level, and consider expected future cash flows from the loan, including, if appropriate, the realizable value of collateral. Impaired loans which are not TDRs are nonaccruing, and loans involved in TDRs may be accruing or nonaccruing. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Loans are generally restored to accrual status when principal and interest payments are brought current and when future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan’s contractual terms. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Software Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. Fair Value The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, derivative instruments, and other investment securities. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans, and goodwill. Goodwill Goodwill is the purchase premium associated with the acquisition of a business. It is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible assets as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the current discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. The Company bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. Bank-Owned Life Insurance Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers and selected employees of the Company. Employee Benefits Pension costs under defined benefit plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The cost of postretirement and postemployment benefits other than pensions is recognized on an accrual basis during the periods employees provide services to earn those benefits. Share-Based Compensation The Company adopted the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”), pursuant to which stock awards are granted to employees. The Company recognizes compensation expense related to stock awards based upon the fair value of the awards which is the closing price of CFG common stock on the date of the grant, adjusted for forfeitures. The related expense is charged to earnings over the requisite service period (e.g., vesting period). Derivatives The Company is party to a variety of derivative transactions, including interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, forward sale contracts, warrants and purchase options. The Company enters into contracts in order to meet the financing needs of its customers. The Company also enters into contracts as a means of reducing its interest rate and foreign currency risks, and these contracts are designated as hedges when acquired, based on management’s intent. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. All derivatives, whether designated for hedging relationships or not, are recognized in the Consolidated Balance Sheets at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI, a component of stockholders’ equity. The ineffective portions of cash flow hedges are immediately recognized as an adjustment to income or expense. For cash flow hedging relationships that have been discontinued, balances in OCI are reclassified to interest expense in the periods during which the hedged item affects income. If it is probable that the hedged forecasted transaction will not occur, balances in OCI are reclassified immediately to income. If a derivative is designated as a fair value hedge, gains or losses attributable to the change in fair value of the derivative instrument, as well as the gains and losses attributable to the change in fair value of the hedged item, are recognized in other noninterest income in the period in which the change in fair value occurs. Hedge ineffectiveness is recognized as other noninterest income to the extent the changes in fair value of the derivative do not offset the changes in fair value of the hedged item. Changes in the fair value of derivatives that do not qualify as hedges are recognized immediately in earnings. Derivative assets and derivative liabilities governed by master netting agreements are netted by counterparty on the balance sheet, and this netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a CSA. Transfers and Servicing of Financial Assets A transfer of financial assets is accounted for as a sale when control ov |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | CASH AND DUE FROM BANKS The Company’s subsidiary banks maintain certain average reserve balances and compensating balances for check clearing and other services with the FRB. At December 31, 2015 and 2014 , the balance of deposits at the FRB amounted to $2.0 billion and $2.1 billion , respectively. Average balances maintained with the FRB during the years ended December 31, 2015 , 2014 , and 2013 exceeded amounts required by law for the FRB’s requirements. All amounts, both required and excess reserves, held at the FRB currently earn interest at a fixed rate of 50 basis points. As a result, the Company recorded, in interest-bearing deposits in banks, interest income on FRB deposits of $4 million , $5 million , and $5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table provides the major components of securities at amortized cost and fair value: December 31, 2015 December 31, 2014 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Treasury and other $16 $— $— $16 $15 $— $— $15 State and political subdivisions 9 — — 9 10 — — 10 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,234 153 (67 ) 17,320 17,683 301 (50 ) 17,934 Other/non-agency 555 4 (37 ) 522 703 4 (35 ) 672 Total mortgage-backed securities 17,789 157 (104 ) 17,842 18,386 305 (85 ) 18,606 Total debt securities available for sale 17,814 157 (104 ) 17,867 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 $17,831 $157 ($104 ) $17,884 $18,433 $308 ($85 ) $18,656 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,105 $27 ($11 ) $4,121 $3,728 $22 ($31 ) $3,719 Other/non-agency 1,153 23 — 1,176 1,420 54 — 1,474 Total securities held to maturity $5,258 $50 ($11 ) $5,297 $5,148 $76 ($31 ) $5,193 Other Investment Securities, at Fair Value Money market mutual fund $65 $— $— $65 $28 $— $— $28 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $70 $— $— $70 $33 $— $— $33 Other Investment Securities, at Cost Federal Reserve Bank stock $468 $— $— $468 $477 $— $— $477 Federal Home Loan Bank stock 395 — — 395 390 — — 390 Total other investment securities, at cost $863 $— $— $863 $867 $— $— $867 The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2015 2014 2013 Other-than-temporary impairment: Total other-than-temporary impairment losses ($43 ) ($45 ) ($49 ) Portions of loss recognized in other comprehensive income (before taxes) 36 35 41 Net securities impairment losses recognized in earnings ($7 ) ($10 ) ($8 ) The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: December 31, 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 $— US Treasury and other 1 15 — — — — 1 15 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 162 7,423 (51 ) 36 819 (27 ) 198 8,242 (78 ) Other/non-agency 2 9 — 20 361 (37 ) 22 370 (37 ) Total mortgage-backed securities 164 7,432 (51 ) 56 1,180 (64 ) 220 8,612 (115 ) Total 166 $7,456 ($51 ) 56 $1,180 ($64 ) 222 $8,636 ($115 ) 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: Year Ended December 31, (in millions) 2015 2014 2013 Cumulative balance at beginning of period $62 $56 $55 Credit impairments recognized in earnings on securities that have been previously impaired 7 10 8 Reductions due to increases in cash flow expectations on impaired securities (3 ) (4 ) (7 ) Cumulative balance at end of period $66 $62 $56 Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of December 31, 2015 , 2014 and 2013 were $66 million , $62 million and $56 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of December 31, 2015 , 2014 and 2013 . For the years ended December 31, 2015 , 2014 and 2013 , the Company recognized credit related other-than-temporary impairment losses in earnings of $7 million , $10 million and $8 million , respectively, related to non-agency MBS in the AFS portfolio. There were no credit impaired debt securities sold during the years ended December 31, 2015 , 2014 and 2013 , respectively. Reductions in credit losses due to increases in cash flow expectations were $3 million , $4 million and $7 million for the years ended December 31, 2015 , 2014 and 2013 , 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. Additionally, as of December 31, 2015 , 2014 and 2013 , $36 million , $35 million and $41 million respectively, of pre-tax non-credit related losses were deferred in OCI. The amortized cost and fair value of debt securities at December 31, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without 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 and other $15 $— $1 $— $16 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 52 1,833 15,345 17,234 Other/non-agency — 68 3 484 555 Total debt securities available for sale 19 120 1,837 15,838 17,814 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,105 4,105 Other/non-agency — — — 1,153 1,153 Total debt securities held to maturity — — — 5,258 5,258 Total amortized cost of debt securities $19 $120 $1,837 $21,096 $23,072 Fair Value: Debt securities available for sale U.S. Treasury and other $15 $— $1 $— $16 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 54 1,845 15,417 17,320 Other/non-agency — 70 3 449 522 Total debt securities available for sale 19 124 1,849 15,875 17,867 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,121 4,121 Other/non-agency — — — 1,176 1,176 Total debt securities held to maturity — — — 5,297 5,297 Total fair value of debt securities $19 $124 $1,849 $21,172 $23,164 The following table reports the amounts recognized in interest income from investment securities and interest-bearing deposits in banks on the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2015 2014 2013 Taxable $621 $619 $477 Non-taxable — — — Interest-bearing cash and due from banks and deposits in banks $5 $5 $11 Total interest income from investment securities and interest-bearing deposits in banks $626 $624 $488 Realized gains and losses on securities are shown below: Year Ended December 31, (in millions) 2015 2014 2013 Gains on sale of debt securities $41 $33 $144 Losses on sale of debt securities (12 ) (5 ) — Debt securities gains, net $29 $28 $144 Equity securities gains $3 $— $— Included in the table above is a $2 million gain recognized on the sale of a $73 million mortgage-backed security that was classified as HTM. The HTM security was sold because the holding would have been prohibited under the Volcker Rule beginning in July 2017. The amortized cost and fair value of securities pledged are shown below: December 31, 2015 December 31, 2014 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $805 $808 $3,650 $3,701 Pledged against FHLB borrowed funds 1,163 1,186 1,355 1,407 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,579 3,610 3,453 3,520 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: December 31, 2015 December 31, 2014 (in millions) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Securities purchased under agreements to resell $500 ($500 ) $— $— $— $— Securities sold under agreements to repurchase (500 ) 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 16 “Derivatives.” Securitizations of mortgage loans retained in the investment portfolio for the years ended December 31, 2015 , 2014 and 2013 , were $3 million , $18 million and $106 million , respectively. These securitizations included a substantive guarantee by a third party. In 2015, the guarantor was Freddie Mac. In 2014 and 2013, the guarantors were Fannie Mae, Ginnie Mae, and Freddie Mac. These securitizations were accounted for as a sale of the transferred loans and as a purchase of securities. The securities received from the guarantors are classified as AFS. 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 December 31, 2015 : Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total Securities purchased under agreements to resell Mortgage-backed securities - Agency $— $500 $— $— $500 Total securities purchased under agreements to resell $— $500 $— $— $500 Securities sold under agreements to repurchase Mortgage-backed securities - Agency $— ($500 ) $— $— ($500 ) Total securities sold under agreement to repurchase $— ($500 ) $— $— ($500 ) 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 | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES A summary of the loans and leases portfolio follows: December 31, (in millions) 2015 2014 Commercial $33,264 $31,431 Commercial real estate 8,971 7,809 Leases 3,979 3,986 Total commercial 46,214 43,226 Residential mortgages 13,318 11,832 Home equity loans 2,557 3,424 Home equity lines of credit 14,674 15,423 Home equity loans serviced by others (1) 986 1,228 Home equity lines of credit serviced by others (1) 389 550 Automobile 13,828 12,706 Student 4,359 2,256 Credit cards 1,634 1,693 Other retail 1,083 1,072 Total retail 52,828 50,184 Total loans and leases (2) (3) $99,042 $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 $365 million and $281 million as of December 31, 2015 and 2014 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.9 billion at December 31, 2015 and 2014 , respectively. Loans held for sale at fair value totaled $325 million and $256 million at December 31, 2015 and 2014 , respectively, and consisted of residential mortgages originated for sale of $268 million and the commercial trading portfolio of $57 million as of December 31, 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 $40 million and $25 million as of December 31, 2015 and 2014 , respectively, and consisted of commercial loan syndications. Loans pledged as collateral for FHLB borrowed funds totaled $23.2 billion and $22.0 billion at December 31, 2015 and 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 $15.9 billion and $11.8 billion at December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 , the Company purchased automobile loans with an outstanding principal balance of $1.3 billion , a portfolio of residential mortgages with an outstanding principal balance of $1.1 billion , and a portfolio of student loans with an outstanding principal balance of $957 million . During the year ended December 31, 2014 , the Company purchased a portfolio of residential loans with an outstanding principal balance of $1.9 billion , a portfolio of auto loans with an outstanding principal balance of $1.7 billion and a portfolio of student loans with an outstanding principal balance of $59 million . During the year ended December 31, 2015 , the Company sold a portfolio of commercial loans with an outstanding principal balance of $401 million as part of the Company’s loan syndication project, 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 year ended December 31, 2014 , in addition to the $1.0 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 $301 million . The Company is engaged in the leasing of equipment for commercial use, with primary lease concentrations to Fortune 1000 companies for large capital equipment acquisitions. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its balance sheet. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. A summary of the investment in leases, before the ALLL, is as follows: December 31, (in millions) 2015 2014 Direct financing leases $3,898 $3,873 Leveraged leases 81 113 Total leases $3,979 $3,986 The components of the investment in leases, before the ALLL, are as follows: December 31, (in millions) 2015 2014 Total future minimum lease rentals $3,195 $3,324 Estimated residual value of leased equipment (non-guaranteed) 1,157 1,059 Initial direct costs 22 22 Unearned income on minimum lease rentals and estimated residual value of leased equipment (395 ) (419 ) Total leases $3,979 $3,986 At December 31, 2015 , the future minimum lease rentals on direct financing and leveraged leases are as follows: Year Ended December 31, (in millions) 2016 $707 2017 588 2018 528 2019 445 2020 327 Thereafter 600 Total $3,195 Pre-tax income on leveraged leases was $2 million , $2 million and $3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The income tax expense on this income was $1 million for the years ended December 31, 2015 , 2014 and 2013 . There was no investment credit recognized in income during these years. |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 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” 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. During 2013, the Company modified the way that it establishes the ALLL. The ALLL is reviewed separately for commercial and retail loan portfolios, and the ALLL for each includes an adjustment for qualitative reserves that includes certain risks, factors and events that might not be measured in the statistical analysis. As a result of this change, the unallocated reserve was absorbed into the separately measured commercial and retail qualitative reserves. Additionally, during December 2013, the Company revised and extended its incurred loss period for certain residential mortgages. This change reflects management's recognition that incurred but unrealized losses emerge differently during various points of an economic/business cycle. Incurred Loss Periods (“ILPs”) are not static and move over time based on several factors. As economies expand and contract, access to credit, jobs, and liquidity moves directionally with the economy. ILPs will be longer in stronger economic times, when borrowers have the financial ability to withstand adversity and the ILPs will be shorter in an adverse economic environment, when the borrower has less financial flexibility. Since the current economy has not been as strong as the economy during the 2002-2006 time period, we believe that ILPs will not be as long, but rather directional to our history. Since overall Company reserves are deemed adequate, there was no need to increase the reserve but rather reallocate some of the general reserves to cover the $96 million incurred loss period increase. There were no other material changes in assumptions or estimation techniques compared with prior years that impacted the determination of the current year’s ALLL and the reserve for unfunded lending commitments. The following is a summary of changes in the allowance for credit losses: Year Ended December 31, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2015 $544 $651 $1,195 Charge-offs (36 ) (444 ) (480 ) Recoveries 49 147 196 Net recoveries (charge-offs) 13 (297 ) (284 ) Provision charged to income 39 266 305 Allowance for loan and lease losses as of December 31, 2015 596 620 1,216 Reserve for unfunded lending commitments as of January 1, 2015 61 — 61 Credit for unfunded lending commitments (3 ) — (3 ) Reserve for unfunded lending commitments as of December 31, 2015 58 — 58 Total allowance for credit losses as of December 31, 2015 $654 $620 $1,274 Year Ended December 31, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2014 $498 $723 $1,221 Charge-offs (43 ) (450 ) (493 ) Recoveries 58 112 170 Net (charge-offs) recoveries 15 (338 ) (323 ) Provision charged to income 31 266 297 Allowance for loan and lease losses as of December 31, 2014 544 651 1,195 Reserve for unfunded lending commitments as of January 1, 2014 39 — 39 Provision for unfunded lending commitments 22 — 22 Reserve for unfunded lending commitments as of December 31, 2014 61 — 61 Total allowance for credit losses as of December 31, 2014 $605 $651 $1,256 Year Ended December 31, 2013 (in millions) Commercial Retail Unallocated Total Allowance for loan and lease losses as of January 1, 2013 $509 $657 $89 $1,255 Charge-offs (108 ) (595 ) — (703 ) Recoveries 87 115 — 202 Net charge-offs (21 ) (480 ) — (501 ) Sales/Other (6 ) (6 ) (1 ) (13 ) Provision charged to income (19 ) 396 103 480 Transfer of unallocated reserve to qualitative reserve 35 60 (95 ) — Loss emergence period change — 96 (96 ) — Allowance for loan and lease losses as of December 31, 2013 498 723 — 1,221 Reserve for unfunded lending commitments as of January 1, 2013 40 — — 40 Credit for unfunded lending commitments (1 ) — — (1 ) Reserve for unfunded lending commitments as of December 31, 2013 39 — — 39 Total allowance for credit losses as of December 31, 2013 $537 $723 $— $1,260 The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: December 31, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $218 $1,165 $1,383 $205 $1,208 $1,413 Formula-based evaluation 45,996 51,663 97,659 43,021 48,976 91,997 Total $46,214 $52,828 $99,042 $43,226 $50,184 $93,410 The following is a summary of the allowance for credit losses by evaluation method: December 31, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $36 $101 $137 $20 $109 $129 Formula-based evaluation 618 519 1,137 585 542 1,127 Allowance for credit losses $654 $620 $1,274 $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: December 31, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,276 $911 $1,002 $75 $33,264 Commercial real estate 8,450 272 171 78 8,971 Leases 3,880 55 44 — 3,979 Total $43,606 $1,238 $1,217 $153 $46,214 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: December 31, 2015 (in millions) Current 1-29 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,905 $97 $70 $246 $13,318 Home equity loans 2,245 164 44 104 2,557 Home equity lines of credit 13,982 407 80 205 14,674 Home equity loans serviced by others (1) 886 60 20 20 986 Home equity lines of credit serviced by others (1) 296 48 16 29 389 Automobile 12,670 964 159 35 13,828 Student 4,175 113 30 41 4,359 Credit cards 1,554 44 20 16 1,634 Other retail 1,013 53 12 5 1,083 Total $49,726 $1,950 $451 $701 $52,828 (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: December 31, 2015 December 31, 2014 (in millions) Nonaccruing Accruing and 90 Days or More Delinquent Total Nonperforming Loans and Leases Nonaccruing Accruing and 90 Days or More Delinquent Total Nonperforming Loans and Leases Commercial $70 $1 $71 $113 $1 $114 Commercial real estate 77 — 77 50 — 50 Leases — — — — — — Total commercial 147 1 148 163 1 164 Residential mortgages 331 — 331 345 — 345 Home equity loans 135 — 135 203 — 203 Home equity lines of credit 272 — 272 257 — 257 Home equity loans serviced by others (1) 38 — 38 47 — 47 Home equity lines of credit serviced by others (1) 32 — 32 25 — 25 Automobile 42 — 42 21 — 21 Student 35 6 41 11 6 17 Credit cards 16 — 16 16 1 17 Other retail 3 2 5 5 — 5 Total retail 904 8 912 930 7 937 Total $1,051 $9 $1,060 $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 $257 million as of December 31, 2015 . A summary of other nonperforming assets is as follows: December 31, (in millions) 2015 2014 Nonperforming assets, net of valuation allowance: Commercial $1 $3 Retail 45 39 Nonperforming assets, net of valuation allowance $46 $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: December 31, 2015 2014 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.15 % 0.18 % Nonperforming retail loans as a percentage of total loans and leases 0.92 1.00 Total nonperforming loans and leases as a percentage of total loans and leases 1.07 % 1.18 % Nonperforming commercial assets as a percentage of total assets 0.11 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.69 0.73 Total nonperforming assets as a percentage of total assets 0.80 % 0.86 % The following is an analysis of the age of the past due amounts (accruing and nonaccruing): December 31, 2015 December 31, 2014 (in millions) 30-89 Days Past Due 90 Days or More Past Due Total Past Due 30-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial $13 $71 $84 $57 $114 $171 Commercial real estate 33 77 110 26 50 76 Leases 10 — 10 3 — 3 Total commercial 56 148 204 86 164 250 Residential mortgages 70 246 316 97 269 366 Home equity loans 44 104 148 60 145 205 Home equity lines of credit 80 205 285 73 198 271 Home equity loans serviced by others (1) 20 20 40 26 23 49 Home equity lines of credit serviced by others (1) 16 29 45 10 19 29 Automobile 159 35 194 93 16 109 Student 30 41 71 25 17 42 Credit cards 20 16 36 22 17 39 Other retail 12 5 17 18 4 22 Total retail 451 701 1,152 424 708 1,132 Total $507 $849 $1,356 $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: December 31, 2015 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $92 $23 $58 $144 $150 Commercial real estate 56 13 12 70 68 Total commercial 148 36 70 214 218 Residential mortgages 121 16 320 608 441 Home equity loans 85 11 139 283 224 Home equity lines of credit 27 2 167 234 194 Home equity loans serviced by others (1) 50 8 24 88 74 Home equity lines of credit serviced by others (1) 3 1 7 14 10 Automobile 3 — 11 19 14 Student 163 48 2 165 165 Credit cards 28 11 — 28 28 Other retail 13 4 2 18 15 Total retail 493 101 672 1,457 1,165 Total $641 $137 $742 $1,671 $1,383 (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: Year Ended December 31, 2015 2014 2013 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $4 $135 $9 $198 $1 $157 Commercial real estate 1 44 2 98 1 149 Total commercial 5 179 11 296 2 306 Residential mortgages 15 415 14 429 7 419 Home equity loans 9 222 8 246 5 228 Home equity lines of credit 4 173 4 149 2 90 Home equity loans serviced by others (1) 4 75 5 91 5 102 Home equity lines of credit serviced by others (1) — 9 — 11 — 12 Automobile — 11 — 7 — 8 Student 7 157 8 153 7 140 Credit cards 2 26 2 31 3 41 Other retail 1 16 1 21 1 25 Total retail 42 1,104 42 1,138 30 1,065 Total $47 $1,283 $53 $1,434 $32 $1,371 (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 $155 million and $176 million on December 31, 2015 and 2014 , respectively. Retail TDRs totaled $1.2 billion on December 31, 2015 and 2014 , respectively. Commitments to lend additional funds to debtors owing receivables which were TDRs were $15 million and $53 million on December 31, 2015 and 2014 , respectively. The following table summarizes how loans were modified during the year ended December 31, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to December 31, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $19 $19 160 $22 $22 Commercial real estate 1 — — 1 — — Total commercial 26 19 19 161 22 22 Residential mortgages 153 31 31 40 7 6 Home equity loans 96 5 5 191 35 35 Home equity lines of credit 4 1 1 23 2 2 Home equity loans serviced by others (3) 29 2 2 — — — Home equity lines of credit serviced by others (3) 2 — — 1 — — Automobile 108 2 2 5 — — Student — — — — — — Credit cards 2,413 13 13 — — — Other retail 3 — — — — — Total retail 2,808 54 54 260 44 43 Total 2,834 $73 $73 421 $66 $65 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 16 $34 $34 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 17 38 38 (1 ) 1 Residential mortgages 275 33 33 (1 ) — Home equity loans 448 28 28 — 1 Home equity lines of credit 320 21 19 — 2 Home equity loans serviced by others (3) 124 6 5 — 1 Home equity lines of credit serviced by others (3) 41 3 2 — — Automobile 812 14 12 — 2 Student 1,204 22 22 4 — Credit cards — — — 2 — Other retail 20 — — — — Total retail 3,244 127 121 5 6 Total 3,261 $165 $159 $4 $7 (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 year ended December 31, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to December 31, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $8 $7 131 $21 $22 Commercial real estate 9 1 2 15 3 2 Total commercial 34 9 9 146 24 24 Residential mortgages 126 17 17 40 6 5 Home equity loans 125 8 9 85 5 6 Home equity lines of credit 7 — — 276 17 16 Home equity loans serviced by others (3) 42 2 2 — — — Home equity lines of credit serviced by others (3) 4 — — 1 — — Automobile 75 1 1 18 — — Student — — — — — — Credit cards 2,165 12 12 — — — Other retail 3 — — — — — Total retail 2,547 40 41 420 28 27 Total 2,581 $49 $50 566 $52 $51 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 27 $52 $74 $3 $— Commercial real estate 1 7 7 — 3 Total commercial 28 59 81 3 3 Residential mortgages 393 47 46 (4 ) 1 Home equity loans 1,046 63 62 (1 ) 2 Home equity lines of credit 356 25 21 — 5 Home equity loans serviced by others (3) 138 5 5 (1 ) — Home equity lines of credit serviced by others (3) 39 2 2 — — Automobile 1,039 17 13 — 5 Student 1,675 31 31 5 — Credit cards — — — — — Other retail 57 2 1 (1 ) — Total retail 4,743 192 181 (2 ) 13 Total 4,771 $251 $262 $1 $16 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of 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 year ended December 31, 2013 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2013 and were paid off in full, charged off, or sold prior to December 31, 2013 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 126 $13 $13 134 $18 $18 Commercial real estate 11 7 7 3 1 1 Total commercial 137 20 20 137 19 19 Residential mortgages 200 32 33 46 5 6 Home equity loans 196 15 16 94 6 6 Home equity lines of credit 18 1 1 2,081 80 70 Home equity loans serviced by others (3) 31 2 2 5 — — Home equity lines of credit serviced by others (3) 3 — — 1 — — Automobile 238 2 2 2 — — Student — — — — — — Credit cards 2,729 15 15 — — — Other retail 21 — — — — — Total retail 3,436 67 69 2,229 91 82 Total 3,573 $87 $89 2,366 $110 $101 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 6 $1 $1 $— $1 Commercial real estate 1 — — (2 ) — Total commercial 7 1 1 (2 ) 1 Residential mortgages 430 64 63 5 2 Home equity loans 995 57 51 2 5 Home equity lines of credit 771 53 46 — 16 Home equity loans serviced by others (3) 269 12 10 — 3 Home equity lines of credit serviced by others (3) 43 2 1 — 1 Automobile 1,323 13 10 — 3 Student 2,620 48 47 — — Credit cards — — — — — Other retail 148 3 3 — 1 Total retail 6,599 252 231 7 31 Total 6,606 $253 $232 $5 $32 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of 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 year ended December 31, 2015 , 2014 and 2013 within 12 months of their modification date. For purposes of this table, a payment default is defined as being past due 90 days or more under the modified terms. Amounts represent the loan’s recorded investment at the time of payment default. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 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. Year Ended December 31, 2015 2014 2013 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 23 $2 37 $12 18 $1 Commercial real estate — — 3 1 3 1 Total commercial 23 2 40 13 21 2 Residential mortgages 168 21 301 35 526 60 Home equity loans 184 13 329 24 740 43 Home equity lines of credit 131 7 229 12 394 21 Home equity loans serviced by others (1) 43 1 60 2 187 3 Home equity lines of credit serviced by others (1) 22 1 20 — 42 2 Automobile 87 1 112 1 208 1 Student 171 3 355 7 885 17 Credit cards 455 3 579 3 548 3 Other retail 4 — 12 — 33 1 Total retail 1,265 50 1,997 84 3,563 151 Total 1,288 $52 2,037 $97 3,584 $153 (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 December 31, 2015 and 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: December 31, 2015 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products serviced by others Credit Cards Total High loan-to-value $649 $1,038 $785 $— $2,472 Interest only/negative amortization 1,110 — — — 1,110 Low introductory rate — 3 — 96 99 Multiple characteristics and other 14 — — — 14 Total $1,773 $1,041 $785 $96 $3,695 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 | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Low Income Housing Tax Credit Partnerships The Company makes equity investments in various limited partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to assist in achieving goals of the Community Reinvestment Act and to earn an adequate return on 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 December 31, 2015 , the Company’s balance of LIHTC investments was $598 million and unfunded commitments totaled $365 million . For the year ended December 31, 2015 , the Company recognized $45 million of amortization expense, $45 million of tax credits and $17 million of other tax benefits associated with these investments in the provision for income taxes. No LIHTC investment impairment losses were recognized during the year ended December 31, 2015 . |
PREMISES, EQUIPMENT, AND SOFTWA
PREMISES, EQUIPMENT, AND SOFTWARE | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT, AND SOFTWARE | PREMISES, EQUIPMENT AND SOFTWARE A summary of the carrying value of premises and equipment follows: December 31, (dollars in millions) Useful Lives 2015 2014 Land and land improvements 15 years $25 $26 Buildings and leasehold improvements 7-40 years 634 607 Furniture, fixtures and equipment 5-15 years 1,667 1,613 Total premises and equipment, gross 2,326 2,246 Less: accumulated depreciation 1,731 1,651 Total premises and equipment, net $595 $595 The above table includes capital leases with book values of $47 million and $46 million and related accumulated depreciation of $25 million and $22 million as of December 31, 2015 and 2014 , respectively. Depreciation charged to noninterest expense was $116 million , $117 million , and $138 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense. The Company entered into two sale-leaseback transactions during 2015 , one of which included an operating lease for a period of 10 years. There were $9 million of gains recorded of which $1 million was deferred. There were no sale-leaseback transactions during 2014 . The Company entered into a sale-leaseback transaction during 2013 , which includes an operating lease for a period of 10 years. There was a $15 million gain recorded in 2013 of which $14 million was deferred. The Company had capitalized software assets of $1.3 billion and $1.1 billion and related accumulated amortization of $532 million and $387 million as of December 31, 2015 and 2014 , respectively. Amortization expense was $146 million , $145 million , and $102 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Capitalized software assets are reported as a component of other assets in the Consolidated Balance Sheets. The estimated future amortization expense for capitalized software assets is as follows: Year (in millions) 2016 $142 2017 125 2018 104 2019 72 2020 43 Thereafter 129 Total (1) $615 (1) Excluded from this balance is $171 million of in-process software at December 31, 2015 . |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company is committed under long-term leases for the rental of premises and equipment. These leases have varying renewal options and require, in certain instances, the payment of insurance, real estate taxes and other operating expenses. At December 31, 2015 , the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are as follows for the years ended December 31: (in millions) Operating Leases Capital Leases 2016 $190 $8 2017 167 7 2018 131 3 2019 85 2 2020 64 2 Thereafter 180 10 Total minimum lease payments $817 $32 Amounts representing interest N/A (9 ) Present value of net minimum lease payments N/A $23 Rental expense for such leases for the years ended December 31, 2015 , 2014 , and 2013 totaled $205 million , $214 million , and $224 million , respectively, and is presented in the Consolidated Statements of Operations in occupancy and equipment expense. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill represents the excess of fair value of purchased assets over the purchase price. Since 1988, the Company has completed more than 25 acquisitions of banks or assets of banks. The changes in the carrying value of goodwill for the year ended December 31, 2015 and 2014 were: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2013 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2015 $2,136 $4,740 $6,876 Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at December 31, 2015 and 2014 . The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at December 31, 2015 and 2014 . The Company performs an annual test for impairment of goodwill at a level of reporting referred to as a reporting unit. The Company has identified and allocated goodwill to two reporting units — Consumer Banking and Commercial Banking — based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. No impairment was recorded for the years ended December 31, 2015 and 2014 . The Company tested the value of goodwill as of June 30, 2013, and recorded an impairment charge of $4.4 billion relating to the Consumer Banking reporting unit. The impairment charge, which was a non-cash item, had minimal impact on the Company's regulatory capital ratios and liquidity, and for segment reporting purposes was included in Other. Refer to Note 24 “Business Segments” for further information regarding segment reporting. The valuation of goodwill is dependent on forward-looking expectations related to the performance of the U.S. economy and the associated financial performance of the Company. The prolonged delay in the full recovery of the U.S. economy, and the impact of that delay on earnings expectations, prompted a goodwill impairment test as of June 30, 2013. Although the U.S. economy had demonstrated signs of recovery, notably improvements in unemployment and housing, the pace and extent of these indicators, as well as in overall GDP, lagged previous expectations. The impact of the slow recovery was most evident in the Company's Consumer Banking reporting unit. Forecasted economic growth for the U.S., coupled with the continuing impact of the new regulatory framework in the financial industry, resulted in a deceleration of expected growth for the Consumer Banking reporting unit's future profits and an associated goodwill impairment. Refer to Note 1 “Significant Accounting Policies” for further information regarding the impairment test. |
MORTGAGE BANKING
MORTGAGE BANKING | 12 Months Ended |
Dec. 31, 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 $2.7 billion , $1.6 billion , and $4.2 billion of proceeds from the sale of residential mortgages for the years ended December 31, 2015 , 2014 and 2013 , respectively, and recognized gains on such sales of $51 million , $36 million , and $66 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Pursuant to the standard representations and warranties obligations discussed in the preceding paragraph, the Company repurchased residential mortgage loans totaling $10 million , $25 million , and $35 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Mortgage servicing fees, a component of mortgage banking income, were $55 million , $59 million , and $61 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company recorded valuation recoveries of $9 million , $5 million , and $47 million for its MSRs for the years ended December 31, 2015 , 2014 and 2013 , respectively. Changes related to MSRs were as follows: As of and for the Year Ended (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 26 17 Amortization (37 ) (41 ) Carrying amount before valuation allowance 173 184 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (9 ) (5 ) Balance at end of period 9 18 Net carrying value of MSRs $164 $166 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: December 31, (dollars in millions) 2015 2014 Fair value $178 $179 Weighted average life (in years) 5.4 5.2 Weighted average constant prepayment rate 11.6% 12.4% Weighted average discount rate 9.7% 9.8% The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: Year Ended December 31, 2015 2014 2013 Weighted average life (in years) 5.9 5.8 6.0 Weighted average constant prepayment rate 10.7% 11.7% 12.4% Weighted average discount rate 9.7% 10.3% 10.5% The sensitivity analysis below as of December 31, 2015 and 2014 presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical. The effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment speeds, could result in changes in the discount rates), which might amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. December 31, (in millions) 2015 2014 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $5 $9 Decline in fair value from a 100 basis point decrease in interest rates $11 $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 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The major components of deposits are as follows: December 31, (in millions) 2015 2014 Demand $27,649 $26,086 Checking with interest 17,921 16,394 Regular savings 8,218 7,824 Money market accounts 36,727 33,345 Term deposits 12,024 12,058 Total deposits $102,539 $95,707 The maturity distribution of term deposits as of December 31, 2015 is as follows: Year (in millions) 2016 $9,994 2017 1,309 2018 428 2019 183 2020 104 2021 and thereafter 6 Total $12,024 Of these deposits, the amount of term deposits with a denomination of $100,000 or more was $6.3 billion at December 31, 2015 . The remaining maturities of these deposits are as follows: (in millions) Three months or less $3,136 After three months through six months 1,145 After six months through twelve months 1,329 After twelve months 675 Total term deposits $6,285 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS The following is a summary of the Company’s short-term borrowed funds: December 31, (in millions) 2015 2014 Federal funds purchased $— $574 Securities sold under agreements to repurchase 802 3,702 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,630 6,253 Total short-term borrowed funds $3,432 $10,529 Key data related to short-term borrowed funds is presented in the following table: As of and for the Year Ended December 31, (dollars in millions) 2015 2014 2013 Weighted-average interest rate at year-end: Federal funds purchased and securities sold under agreements to repurchase 0.15 % 0.14 % 0.09 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.44 0.26 0.20 Maximum amount outstanding at month-end during the year: Federal funds purchased and securities sold under agreements to repurchase $5,375 $7,022 $5,114 Other short-term borrowed funds (primarily current portion of FHLB advances) 7,004 7,702 2,251 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase $3,364 $5,699 $2,400 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,865 5,640 251 Weighted-average interest rate during the year: Federal funds purchased and securities sold under agreements to repurchase 0.22 % 0.12 % 0.31 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.28 0.25 0.44 The following is a summary of the Company’s long-term borrowed funds: December 31, (in millions) 2015 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 4.691% fixed rate subordinated debt, due 2024 (1) — 334 4.153% fixed rate subordinated debt, due 2024 (1) (2) 250 333 4.023% fixed rate subordinated debt, due 2024 (1) (3) 331 333 4.082% fixed rate subordinated debt, due 2025 (1) (4) 331 334 4.350% fixed rate subordinated debt, due 2025 250 — 4.300% fixed rate subordinated debt, due 2025 750 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (5) (6) 749 750 2.300% senior unsecured notes, due 2018 (5) (7) 747 — 2.450% senior unsecured notes, due 2019 (5) (8) 752 746 Federal Home Loan advances due through 2033 5,018 772 Other 25 24 Total long-term borrowed funds $9,886 $4,642 (1) Borrowed funds with RBS. See Note 19 “Related Party Transactions and Significant Transactions with RBS” for further information. (2) Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. (3) $333 million principal balance of subordinated debt reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (4) $334 million principal balance of subordinated debt reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (5) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (6) $750 million principal balance of unsecured notes reflects the impact of $1 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (7) $750 million principal balance of unsecured notes reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (8) $750 million principal balance of unsecured notes reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. On December 3, 2015, the Company repurchased $750 million of outstanding subordinated debt instruments held by RBS. The $3 million difference between the repurchase price and the net carrying amount of the repurchased debt was recognized as a gain on extinguishment of the debt. To fund the repurchase, the Company issued $750 million of new subordinated debt with a 4.300% fixed rate and a ten-year maturity. Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $11.3 billion at December 31, 2015 and 2014 . The Company’s available FHLB borrowing capacity was $4.1 billion and $3.5 billion at December 31, 2015 and 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 December 31, 2015 , the Company’s unused secured borrowing capacity was approximately $32.1 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 December 31, 2015 : Year (in millions) CFG Parent Company Banking Subsidiaries Consolidated 2016 or on demand $— $— $— 2017 — 5,764 5,764 2018 — 753 753 2019 — 753 753 2020 — 2 2 2021 and thereafter 2,595 19 2,614 Total $2,595 $7,291 $9,886 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock As of December 31, 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 “Series A 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 Series A Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company. Holders of the Series A 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 Series A 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 Series A 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 Series A Preferred Stock without obtaining the prior approval of the FRBG if then required under applicable capital guidelines. Shares of the Series A 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 Series A Preferred Stock have been declared for that period and sufficient funds have been set aside to make payment. Except in certain limited circumstances, the Series A 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. The repurchased shares are held in treasury. On April 7, 2015, the Company used the net proceeds of the Series A 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 year ended December 31, 2015 , the Company recorded an additional 876,087 shares of treasury stock associated with share-based compensation plan activity for a total cost of $22 million at a weighted-average price per share of $25.50 . During the year ended December 31, 2014, the Company recorded an additional 80,358 shares of common stock associated with share-based compensation plan activity for a total cost of $2 million at an average price per share of $25.03 . On October 8, 2014, Citizens executed a capital exchange transaction which involved the issuance of $334 million of 10 -year Subordinated Notes to RBS at a rate of 4.082% and the simultaneous repurchase of 14,297,761 shares of common stock owned by RBS for a total cost of $334 million and an average price per share of $23.36 . The purchase price per share was the average of the daily volume-weighted average price of a share of our common stock as reported by the New York Stock Exchange over the five trading days preceding the purchase date. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Pension Plans The Company maintains a non-contributory pension plan (the “Plan” or “qualified plan”) that was closed to new hires and re-hires effective January 1, 2009, and frozen to all participants effective December 31, 2012. Benefits under the Plan are based on employees’ years of service and highest five-year average 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 31, 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 provide benefits for the Company’s current and former employees. The qualified plan’s allocation by asset category is as follows: Target Asset Allocation Actual Asset Allocation Asset Category 2015 2015 2014 Equity securities 45-55% 47.1 % 49.0 % Debt securities 40-50% 47.3 % 44.7 % Other 0-10% 5.6 % 6.3 % Total 100.0 % 100.0 % The written Pension Plan Investment Policy, set forth by the CFG Retirement Committee, formulates those investment principles and guidelines that are appropriate to the needs and objectives of the Plan, and defines the management, structure, and monitoring procedures adopted for the ongoing operation of the aggregate funds of the Plan. Stated goals and objectives are: • Total return, consistent with prudent investment management, is the primary goal of the Plan. The nominal rate of return objective should meet or exceed the actuarial rate return target. In addition, assets of the Plan shall be invested to ensure that principal is preserved and enhanced over time; • The total return for the overall Plan shall meet or exceed the Plan’s Policy Index; • Total portfolio risk exposure should generally rank in the mid-range of comparable funds. Risk-adjusted returns are expected to consistently rank in the top-half of comparable funds; and • Investment managers shall exceed the return of the designated benchmark index and rank in the top-half of the appropriate asset class and style universe. The CFG Retirement Committee reviews, at least annually, the assets and net cash flow of the Plan, discusses the current economic outlook and the Plan’s investment strategy with the investment managers, reviews the current asset mix and its compliance with the Policy, and receives and considers statistics on the investment performance of the Plan. The equity investment mandates follows a global equity approach. Investments are made in broadly diversified portfolios that contain investments in U.S. and non-U.S. developed and developing economies. The fixed income investment mandates are US investment grade mandates and follow a long duration investment approach. Investment in high-yield bonds are not allowed unless an investment grade bond is downgraded to a non-investment grade category. The assets of the qualified plan may be invested in any or all of the following asset categories: a) Equity-oriented investments: • domestic and foreign common and preferred stocks, and related rights, warrants, convertible debentures, and other common share equivalents b) Fixed income-oriented investments: • domestic and foreign bonds, debentures and notes • mortgages • mortgage-backed securities • asset-backed securities • money market securities or cash • financial futures and options on financial futures • forward contracts In addition, derivatives may be employed under the guidelines established for individual managers in order to manage risk exposures and/or to increase the efficiency of strategies. The extent to which derivatives will be utilized will be specified in the investment guidelines for each manager. The Plan will not be exposed to losses through derivatives that exceed the capital invested. In selecting the expected long-term rate of return on assets, the Company considers the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of this Plan. This includes considering the trust’s asset allocation and the expected returns likely to be earned over the life of the Plan. This basis is consistent with the prior year. Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are summarized as follows: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2015 2014 (1) 2013 2015 2014 (1) 2013 Fair value of plan assets as of January 1 $923 $1,031 $998 $— $— $— Actual return (loss) on plan assets (41 ) 98 111 — — — Employer contributions 100 — — 9 9 8 Divestitures — (129 ) — — — — Benefits and administrative expenses paid (65 ) (77 ) (78 ) (9 ) (9 ) (8 ) Fair value of plan assets as of December 31 917 923 1,031 — — — Projected benefit obligation 977 1,093 1,026 103 117 107 Pension asset (obligation) ($60 ) ($170 ) $5 ($103 ) ($117 ) ($107 ) Accumulated benefit obligation $977 $1,093 $1,026 $103 $117 $107 (1) December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. The pre-tax amounts recognized (for the qualified and non-qualified plans) in AOCI are as follows: Year Ended December 31, (in millions) 2015 2014 (1) Net prior service credit $— $— Net actuarial loss 599 606 Total loss recognized in accumulated other comprehensive income $599 $606 (1) December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. Approximately $16 million of net actuarial loss recorded in AOCI as of December 31, 2015 is expected to be recognized as a component of net periodic benefit costs during 2016 . Other changes in plan assets and benefit obligations (for the qualified and non-qualified plans) recognized in OCI include the following: Year Ended December 31, (in millions) 2015 2014 2013 Net periodic pension income ($7 ) ($8 ) ($3 ) Net actuarial (gain) loss 7 237 (174 ) Amortization of net actuarial loss (15 ) (10 ) (14 ) Divestiture — (35 ) — Total recognized in other comprehensive income (8 ) 192 (188 ) Total recognized in net periodic pension cost and other comprehensive income ($15 ) $184 ($191 ) The following table presents the components of net periodic pension (income) cost for the Company's qualified and non-qualified plans: Year Ended December 31 Qualified Plan Non-Qualified Plan Total (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $3 $3 $3 $ — $— $— $3 $3 $3 Interest cost 44 47 48 4 5 5 48 52 53 Expected return on plan assets (74 ) (73 ) (73 ) — — — (74 ) (73 ) (73 ) Amortization of actuarial loss 13 9 13 2 1 1 15 10 14 Net periodic pension (income) cost ($14 ) ($14 ) ($9 ) $6 $6 $6 ($8 ) ($8 ) ($3 ) Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are as follows: As of and for the Year Ended December 31, 2015 2014 2013 Assumptions for benefit obligations Discount rate--qualified plan 4.640 % 4.125 % 5.00 % Discount rate--non-qualified plan 4.540 % 3.875 % 4.75 % Expected long-term rate of return on plan assets 7.500 % 7.50 % 7.50 % Assumptions for net periodic pension cost Discount rate--qualified plan 4.125 % 5.00/4.25% (1) 4.125 % Discount rate--non-qualified plan 3.875 % 4.75/4.00% (2) 4.00 % Expected long-term rate of return on plan assets 7.500 % 7.50 % 7.50 % (1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. (2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. The Company expects to contribute $8 million to the non-qualified plan in 2016. No contribution to the qualified plan is expected in 2016. Expected future benefit payments for the qualified and non-qualified plans are as follows: (in millions) Expected benefit payments by fiscal year ended December 31, 2016 $61 December 31, 2017 62 December 31, 2018 62 December 31, 2019 63 December 31, 2020 64 December 31, 2021 - 2025 337 Fair Value Measurements The following valuation techniques are used to measure the qualified pension plan assets at fair value: Cash and money market funds: Cash and money market funds represent instruments that generally mature in one year or less and are valued at cost, which approximates fair value. Cash and money market funds are classified as Level 2. Mutual funds: Where observable quoted prices are available in an active market, mutual funds are classified as Level 1 in the fair value hierarchy. If quoted market prices are not available, mutual funds are classified as Level 2 because they currently trade in active markets and the Company expects all future purchases and sales to be valued at current net asset value. Common and collective funds The fair value is estimated using the net asset value of units of a bank collective trust, the net asset value is used as a practical expedient to estimate fair value. The net asset value is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported net asset value. These instruments are classified as Level 2 because the Company expects all future purchases and sales to be valued at current net asset value. U.S. and Non-U.S. government obligations, municipal obligations, corporate bonds, asset-backed securities and mortgage-backed securities-Managed portfolio: U.S. government obligations, municipal obligations, corporate bonds, asset-backed securities and mortgage-backed securities are valued at the quoted market prices determined in the active markets in which the securities are traded. If quoted market prices are not available, the fair value of the security is estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. These investments are classified as Level 2, because they currently trade in active markets for similar securities and the inputs to the valuations are observable. Derivatives-Managed portfolio: The managed portfolio invests in certain derivatives that are valued at the settlement price determined by the relevant exchange and are classified as Level 2 in the fair value hierarchy. Limited partnerships: Limited partnerships are valued at estimated fair value based on their proportionate share of the limited partnerships’ fair value as recorded in the limited partnerships’ audited financial statements. The limited partnerships invest primarily in readily marketable securities. The limited partnerships allocate gains, losses and expenses to the partners based on ownership percentage as described in the partnership agreements. The instruments that can be transacted at the investment net asset value are classified as Level 2 because the Company expects all future purchases and sales to be valued at current net asset value. The following table presents qualified pension plan assets and liabilities measured at fair value (including gross derivative assets and liabilities, within the fair value hierarchy): Fair Value Measurements as of December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $4 $— $4 $— Mutual funds International equity funds 47 47 — — Equity funds 9 — 9 — Common and collective funds Global equities common and collective fund 220 — 220 — Balanced common and collective funds 196 — 196 — Fixed income common and collective fund 120 — 120 — Managed portfolio assets Cash and money market funds 4 — 4 — Fixed income mutual fund 20 — 20 — U.S. government obligations 35 — 35 — Non-U.S. government obligations — — — — Municipal obligations 1 — 1 — Corporate bonds 84 — 84 — Asset-backed securities 5 — 5 — Mortgage-backed securities 1 — 1 — Derivative assets - interest rate forwards 1 — 1 — Limited partnerships International equity fund 107 — 107 — International equity 95 — 95 — Total assets measured at fair value $949 $47 $902 $— Liabilities Derivative liabilities - interest rate forwards 1 — 1 — Derivative liabilities - credit default swaps 1 — 1 — Total liabilities measured at fair value $2 $— $2 $— The following table presents qualified pension plan assets and liabilities measured at fair value (including net derivative assets and liabilities, within the fair value hierarchy): Fair Value Measurements as of December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Cash and money market funds $18 $— $18 $— Mutual funds International equity funds 24 24 — — Income funds 39 — 39 — Common and collective funds Global equities common and collective funds 241 — 241 — Fixed income common and collective funds 305 — 305 — Managed portfolio Cash and money market funds (6 ) — (6 ) — Corporate bonds 85 — 85 — Municipal obligations 2 — 2 — U.S. government obligations 17 — 17 — Non-U.S. government obligations 2 — 2 — Derivative assets - credit default swaps 1 — 1 — Derivative liabilities - interest rate swaps (1 ) — (1 ) — Derivative liabilities - foreign currency futures (1 ) — (1 ) — Other 14 — 14 — Limited partnerships 183 — 183 — Total assets measured at fair value $923 $24 $899 $— There were no transfers among Levels 1, 2 or 3 during the years ended December 31, 2015 , 2014 , and 2013 . The fair values of participation units in the common and collective trusts are based on net asset value after adjustments to reflect all fund investments at fair value. The unfunded commitments, redemption frequency, and redemption notice period for those Plan investments that utilize net asset value to determine the fair value as of December 31, 2015 and 2014 , are as follows: Fair Value Estimated Using Net Asset Value per Share December 31, Unfunded Redemption Redemption Redemption Investment (dollars in millions) 2015 2014 Commitment Frequency Restrictions Notice Period Equity Mutual Fund (1) $9 $39 $— Daily None 1-7 days Common and Collective Funds: Global equities funds (2) 220 241 — Daily None 2-3 days Balanced funds (3) 196 — — Daily None 2-3 days Fixed income fund (4) 120 305 — Daily None 3 days Managed Portfolio - Fixed Income Mutual fund (5) 20 — — Daily None 1 days Limited Partnerships: International equity fund (6) 107 90 — Monthly None 3 days International equity (7) 95 84 — Daily None 10 days Offshore feeder fund (8) — 9 — Daily None 1-14 days Total $767 $768 $— (1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. (2) The global equities funds objective is to track the MSCI All Country World Index. (3) The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. (4) The fixed income fund seeks to outperform the Barclay’s Capital US Long Corporate Bond Index or similar benchmark. (5) The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. (6) The international equity fund seeks to medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. (7) The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. (8) The offshore feeder fund operates under a “master/feeder” structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fund”). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5% . The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. Postretirement Benefits The Company and Affiliates merged their postretirement plans into a single postretirement plan in 2008 and continue to provide health care insurance benefits for certain retired employees and their spouses. In preparation for the IPO, the Company divested the portion of the postretirement plan associated with the Affiliates in September 2014. As a result, 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. Expected future benefit payments for the postretirement benefit plan are as follows: (in millions) Expected benefit payments by fiscal year ended December 31, 2016 $1 December 31, 2017 1 December 31, 2018 1 December 31, 2019 1 December 31, 2020 1 December 31, 2021 - 2025 5 The Company expects to contribute $1 million to the plan during 2016 . The discount rate assumed in determining the actuarial present value of benefit obligations was 3.93% and 3.50% as of December 31, 2015 and 2014 , respectively. For measurement purposes, a 7.0% assumed annual rate of increase in the per capita cost of covered health care benefits was used for the years ended December 31, 2015 and 2014 . This is expected to decrease gradually down to a 5.0% ultimate rate over the next several years (2022 and 2019 for years ended December 31, 2015 and 2014, respectively). Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: For the Year Ended December 31, (dollars in millions) 2015 2014 Discount rate 3.500 % 4.625/3.875/3.75% (1) Rate of compensation increase N/A — % Ultimate health care cost trend rate 5.000 % 5.00 % Effect on accumulated postretirement benefit obligation One percent increase $— $— One percent decrease — — (1) 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.750% for September 1 - December 31, 2014 period. Postemployment Benefits The Company provides postemployment benefits to certain former and inactive employees, primarily the Company’s long-term disability plan. Effective January 1, 2013, the Company required claimants receiving long-term disability benefits for 24 months to apply for Medicare approval so that Medicare is the primary payer of medical benefits. Benefit recorded for the years ended December 31, 2015 , 2014 , and 2013 were none , $1 million , and $3 million , respectively. 401(k) Plan The Company sponsors a 401(k) plan under which employee tax-deferred/Roth after-tax contributions to the plan are matched by the Company after completion of one year of service. Effective January 1, 2013, contributions were matched at 100% up to an overall limitation of 5% on a pay period basis. Subsequently, effective January 1, 2015, 100% of matching contributions was reduced from 5% to 4% on a pay period basis. Substantially all employees will receive an additional 2% of earnings after completion of one year of service, subject to limits set by the Internal Revenue Service. Amounts contributed by the Company for the years ended December 31, 2015 , 2014 , and 2013 were $52 million , $60 million , and $70 million , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Total income tax expense (benefit) was as follows: Year Ended December 31, (in millions) 2015 2014 2013 Income tax expense (benefit) $423 $403 ($42 ) Tax effect of changes in OCI (12 ) 154 (194 ) Total comprehensive income tax expense (benefit) $411 $557 ($236 ) Components of income tax expense (benefit) are as follows: (in millions) Current Deferred Total Year Ended December 31, 2015 U.S. federal $162 $225 $387 State and local 12 24 36 Total $174 $249 $423 Year Ended December 31, 2014 U.S. federal $224 $145 $369 State and local 38 (4 ) 34 Total $262 $141 $403 Year Ended December 31, 2013 U.S. federal $3 ($47 ) ($44 ) State and local 8 (6 ) 2 Total $11 ($53 ) ($42 ) The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2015 , 2014 and 2013 as follows: Year Ended December 31, 2015 2014 2013 (dollars in millions) Amount Rate Amount Rate Amount Rate U.S. Federal income tax expense (benefit) and tax rate $442 35.0 % $444 35.0 % ($1,214 ) 35.0 % Increase (decrease) resulting from: Goodwill impairment — — — — 1,217 (35.1 ) State and local income taxes (net of federal benefit) 27 2.1 22 1.7 1 — Bank-owned life insurance (20 ) (1.6 ) (17 ) (1.3 ) (17 ) 0.5 Tax-exempt interest (17 ) (1.3 ) (15 ) (1.2 ) (13 ) 0.4 Tax credits (16 ) (1.2 ) (27 ) (2.1 ) (11 ) 0.3 Non-deductible expenses 8 0.6 — — — — Other (1 ) (0.1 ) (4 ) (0.3 ) (5 ) 0.1 Total income tax expense (benefit) and tax rate $423 33.5 % $403 31.8 % ($42 ) 1.2 % The effective income tax rate for the year ended December 31, 2015 reflected the adoption of ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” The application of this guidance resulted in the reclassification of the amortization of these investments to income tax expense from noninterest income. See Note 6 “Variable Interest Entities,” for further information. The increase in the effective tax rate from 2014 to 2015 is primarily attributable to the Company’s adoption of ASU 2014-01 effective January 1, 2015. Additionally, the 2015 effective tax rate was affected by the impact of non-deductible permanent expense items incurred by the Company in 2015. The effective tax rate in 2013 was primarily due to the tax rate impact of the goodwill impairment charge taken in 2013 . Goodwill not deductible for tax purposes accounted for 78.4% of the total goodwill impairment charge and generated a reduction of 35.1% in our effective tax rate for the year ended December 31, 2013 . The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (in millions) 2015 2014 Deferred tax assets: Other comprehensive income $241 $232 Allowance for credit losses 465 456 Net operating loss carryforwards 137 155 Accrued expenses not currently deductible 135 170 Deferred income 40 45 Fair value marks 36 34 Other 5 1 Total deferred tax assets 1,059 1,093 Valuation allowance (123 ) (157 ) Deferred tax assets, net of valuation allowance 936 936 Deferred tax liabilities: Leasing transactions 882 825 Amortization of intangibles 455 380 Depreciation 213 164 Pension and other employee compensation plans 69 14 MSRs 47 46 Total deferred tax liabilities 1,666 1,429 Net deferred tax liability $730 $493 At December 31, 2015 , the Company had state tax net operating loss carryforwards of $1.9 billion . Limitations on the ability to realize these carryforwards are reflected in the associated valuation allowance. Additionally, RBS divested its remaining ownership interest in CFG in 2015. The change in ownership resulting from this divestiture generated an annual limitation on the amount of carryforwards that can be utilized. These net operating losses will expire, if not utilized, in the years 2016 - 2035 . At December 31, 2015 , the Company had a valuation allowance of $123 million against the deferred tax assets related to certain state temporary differences and net operating losses, as it is management’s current assessment that it is more likely than not that the Company will not recognize a portion of the deferred tax asset related to these items. The valuation allowance decreased $34 million during the year ended December 31, 2015 . Effective with the fiscal year ended September 30, 1997, the reserve method for bad debts was no longer permitted for tax purposes. The repeal of the reserve method required the recapture of the reserve balance in excess of certain base year reserve amounts attributable to years ended prior to 1988. At December 31, 2015 , the Company’s base year loan loss reserves attributable to years ended prior to 1988, for which no deferred income taxes have been provided, was $557 million . This base year reserve may become taxable if certain distributions are made with respect to the stock of the Company or if the Company ceases to qualify as a bank for tax purposes. No actions are planned that would cause this reserve to become wholly or partially taxable. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by major tax authorities for years before 2011 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (in millions) 2015 2014 2013 Balance at the beginning of the year, January 1 $72 $33 $34 Gross (decrease) increase for tax positions related to prior years (6 ) 60 — Decreases for tax positions as a result of the lapse of the statutes of limitations (3 ) (1 ) — Decreases for tax positions related to settlements with taxing authorities (1 ) (20 ) (1 ) Balance at end of year $62 $72 $33 Included in the total amount of unrecognized tax benefits at December 31, 2015 , are potential benefits of $43 million that, if recognized, would impact the effective tax rate. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income taxes. The Company accrued less than $1 million , $1 million , and $2 million of interest expense through December 31, 2015 , 2014 , and 2013 , respectively. The Company had approximately $14 million , $15 million , and $14 million accrued for the payment of interest at December 31, 2015 , 2014 , and 2013 , respectively. There were no amounts accrued for penalties as of December 31, 2015 , 2014 , and 2013 , and there were no penalties recognized during 2015 , 2014 , and 2013 . The Company expects to enter into settlement agreements with certain state taxing authorities regarding its passive investment companies. Settlement of these uncertainties would reduce the unrecognized tax benefit by $55 million . During 2015 , the Company settled nexus issues with various state taxing authorities for the years 2004 through 2013. Settlement of these uncertainties combined with the lapse of statutes of limitations reduced the unrecognized tax benefit by $4 million . |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES In the normal course of business, the Company enters into a variety of derivative transactions in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 20 “Fair Value Measurements.” The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: December 31, 2015 December 31, 2014 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $16,750 $96 $50 $5,750 $24 $99 Derivatives not designated as hedging instruments: Interest rate swaps 33,719 540 455 31,848 589 501 Foreign exchange contracts 8,366 163 156 8,359 170 164 Other contracts 981 8 5 730 7 9 Total derivatives not designated as hedging instruments 711 616 766 674 Gross derivative fair values 807 666 790 773 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (178 ) (178 ) (161 ) (161 ) Less: Cash collateral applied (2) (4 ) (3 ) — — Total net derivative fair values presented in the Consolidated Balance Sheets (3) $625 $485 $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. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 3 “Securities” for further information. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Institutional derivatives The institutional derivatives portfolio primarily consists of interest rate swap agreements that are used to hedge the interest rate risk associated with the Company’s loans and financing liabilities (i.e., borrowed funds, deposits, etc.). The goal of the Company’s interest rate hedging activities is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect net interest income. The Company enters into certain interest rate swap agreements to hedge the risk associated with floating rate loans. By entering into pay-floating/receive-fixed interest rate swaps, the Company was able to minimize the variability in the cash flows of these assets due to changes in interest rates. The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s borrowed funds and deposits. By entering into a pay-fixed/receive-floating interest rate swap, a portion of these liabilities has been effectively converted to a fixed rate liability for the term of the interest rate swap agreement. The Company has also entered into a forward-starting interest rate swap to minimize the exposure to variability in the interest cash flows on a forecasted fixed rate debt issuance. 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 Year Ended December 31, 2015 Year Ended December 31, 2014 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps ($2 ) $2 $— ($4 ) $4 $— Cash flow hedges The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets, financing liabilities (including its borrowed funds), and a forecasted debt issuance. 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 $9 million of net loss (pre-tax) on derivative instruments included in OCI is expected to be reclassified to net interest expense in the Consolidated Statements of Operations. Hedging gains and losses associated with the Company’s cash flow hedges are immediately reclassified from OCI to current period earnings (other income) if it becomes probable that the hedged forecasted transactions will not occur during the originally specified time period. The following table summarizes certain information related to the Company’s cash flow hedges: The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity Amounts Recognized for the Year Ended December 31, (in millions) 2015 2014 2013 Effective portion of gain (loss) recognized in OCI (1) $150 $334 ($59 ) Amounts reclassified from OCI to interest income (2) 82 72 56 Amounts reclassified from OCI to interest expense (2) (59 ) (99 ) (235 ) Amounts reclassified from OCI to net gain (3) — — (1 ) (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. (3) This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other net gains (losses) line item on the Consolidated Statements of Operations. 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 Year Ended December 31, (in millions) 2015 2014 2013 Customer derivative contracts Customer interest rate contracts (1) $140 $240 $79 Customer foreign exchange contracts (1) (18 ) (59 ) 18 Residential loan commitments (2) (4 ) 6 (7 ) Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (106 ) (209 ) (30 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 19 58 (15 ) Forward sale contracts (2) 1 (3 ) 25 Total $32 $33 $70 (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 | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The following is a summary of outstanding off-balance sheet arrangements: December 31, (in millions) 2015 2014 Commitment amount: Undrawn commitments to extend credit $56,524 $55,899 Financial standby letters of credit 2,010 2,315 Performance letters of credit 42 65 Commercial letters of credit 87 75 Marketing rights 47 51 Risk participation agreements 26 19 Residential mortgage loans sold with recourse 10 11 Total $58,746 $58,435 Commitments to Extend Credit Commitments to extend credit are agreements to lend to customers in accordance with conditions contractually agreed upon in advance. Generally, the commitments have fixed expiration dates or termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. Letters of Credit Standby letters of credit, both financial and performance, are issued by the Company for its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project (performance). Commercial letters of credit are used to facilitate the import of goods. The commercial letter of credit is used as the method of payment to the Company’s customers’ suppliers. The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments, net of the value of collateral held. Standby letters of credit and commercial letters of credit are issued for terms of up to ten years and one year , respectively. Generally, letters of credit are collateralized by cash, accounts receivable, inventory or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amounts of reserves for unfunded commitments. The Company recognizes a liability on the Consolidated Balance Sheets representing its obligation to stand ready to perform over the term of the standby letters of credit in the event that the specified triggering events occur. The liability for these guarantees was $3 million at December 31, 2015 and 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 years ended December 31, 2015 and 2014 , 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 December 31, 2015 and 2014 is $26 million and $19 million , respectively. The current amount of credit exposure is spread out over 84 counterparties. RPAs generally have terms ranging from 1 - 5 years; however, certain outstanding agreements have terms as long as 10 years . Other Commitments In November 2015, the Company entered into an agreement with RBS to purchase $500 million of its subordinated notes held by RBS by July 30, 2016, subject to regulatory approval and rating agency considerations. See Note 19 “Related Party Transactions and Significant Transactions with RBS,” for more information. 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 $69 million and $75 million , respectively, at December 31, 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 20 “Fair Value Measurements” for further information. On January 7, 2016, the Company entered into an agreement to purchase student loans on a quarterly basis beginning with the first calendar quarter in 2016 and ending with the fourth calendar quarter in 2016. Under the terms of the agreement, the Company committed to purchase a minimum of $125 million of loans per quarter. The minimum and maximum amount of the aggregate purchase principal balance of loans under the terms of the agreement are $500 million and $1 billion , respectively. The agreement will terminate immediately if at any time during its term the aggregate purchase principal balance of loans equals the maximum amount. The agreement may be extended by written agreement of the parties for an additional four quarters. The Company may terminate the agreement at will with payment of a termination fee equal to the product of $1 million times the number of calendar quarters remaining in the term. 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, subpoenas, 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, mortgage-related issues, 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 banking 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 banking subsidiaries are subject to extensive laws and regulations concerning unfair or deceptive acts or practices in connection with customer products. Certain of the banking 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 banking subsidiaries have actively pursued resolution of the legacy regulatory enforcement matters set forth below. As previously reported, CBNA is currently subject to a consent order issued in 2013 by the OCC in connection with its findings of deceptive marketing and implementation of some of our checking account and funds transfer products and services. Among other things, the consent order requires us to remedy deficiencies and develop stronger compliance controls, policies and procedures. The Company and its banking subsidiaries are also currently subject to consent orders issued in August 2015 by the CFPB, the OCC and the FDIC in connection with past deposit reconciliation practices, and CBNA is subject to a consent order issued in November 2015 by the OCC in connection with past billing and sales practices pertaining to identity theft and debt cancellation products, under which the applicable regulators will have to provide non-objections to, among other things, restitution plans for affected customers. Accordingly, all financial penalties associated with these legacy regulatory enforcement matters have been paid, and substantially all remediation related to such legacy matters is expected to be resolved by the end of 2016. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES There were no branch-related divestitures of assets and liabilities during 2015. On June 20, 2014, the Company completed the sale of certain assets and liabilities associated with the Chicago-area retail branches, small business relationships and select middle market relationships to U.S. Bancorp. The agreement to sell these assets and liabilities to U.S. Bancorp had previously been announced in January 2014. This sale included 103 retail branches located in Illinois, including certain customer deposits of $4.8 billion and selected loans of $1.0 billion (primarily middle market, small business, home equity and credit card balances). As a result of this transaction, the Company recorded a gain on sale of $288 million consisting of $286 million related to the deposits, a gain on sale of $11 million related to the loans and a $9 million loss on sale of other branch assets. For the year ended December 31, 2014 , the corresponding interest and fees on these loans was $20 million and interest expense on deposits was $4 million . There was no impact on the Consolidated Statements of Operations for the year ended December 31, 2015 as a result of this transaction. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS | RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS On November 3, 2015, RBS completed the sale of all of its remaining shares of CFG’s common stock. The parenthetical disclosures on the Consolidated Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows as well as the tables and discussions below include significant related party transactions with RBS prior to the Company’s separation from RBS and significant transactions subsequent to the separation. 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. In connection with RBS’s exit of its ownership in our common stock in 2015, the Separation and Shareholder Agreement and the Registration Rights Agreement were terminated and the Trademark License Agreement was partially terminated. The following is a summary of borrowed funds from RBS: Interest Maturity December 31, (dollars in millions) Rate Date 2015 2014 Subordinated debt 5.158 % June 2023 $333 $333 4.771 % October 2023 — 333 4.691 % January 2024 — 334 4.153 % (1) July 2024 250 333 4.023 % October 2024 333 333 4.082 % January 2025 334 334 (1) Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. The following table presents total interest expense recorded on subordinated debt with RBS: Year Ended December 31, (in millions) 2015 2014 2013 Interest expense on subordinated debt $76 $64 $16 On December 3, 2015, the Company repurchased $750 million of outstanding subordinated debt instruments held by RBS. The $3 million difference between the reacquisition price and the net carrying amount of the repurchased debt was recognized as a gain on extinguishment of the debt and is presented in other income in the Consolidated Statement of Operations. In November 2015, the Company entered into an agreement with RBS to purchase an additional $500 million of its subordinated notes held by RBS by July 30, 2016, subject to regulatory approval and ratings agency considerations. 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: December 31, 2015 December 31, 2014 (dollars in millions) Notional Fixed Rates Maturity Date Notional Fixed Rates Maturity Date Receive-fixed swaps $6,700 0.77% to 2.04% 2017 - 2023 $4,750 1.66% to 2.04% 2019 - 2023 Pay-fixed swaps 3,500 1.96% to 4.30% 2016 - 2023 1,000 4.18% to 4.30% 2016 Total $10,200 $5,750 The following table presents net interest income (expense) recorded by the Company in relation to interest rate swap agreements with RBS: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party interest rate swap agreements on net interest income $12 ($27 ) ($146 ) 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 $6.5 billion and $9.8 billion at December 31, 2015 and 2014 , respectively. Also to meet the financing needs of its customers, the Company enters into a variety of foreign currency denominated products, such as loans, deposits and foreign exchange contracts. To manage the foreign exchange risk associated with these products, the Company simultaneously enters into offsetting foreign exchange contracts with RBS. The Company earns a spread equal to the difference between rates charged to the customer and rates charged by RBS. The notional amount of foreign exchange contracts outstanding with RBS was $3.6 billion and $4.7 billion at December 31, 2015 and 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: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party interest rate swap and cap agreements on other income ($105 ) ($209 ) ($32 ) The effect of related party foreign exchange contracts on foreign exchange and trade finance fees 19 58 (15 ) 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: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party service and referral fees, net of occupancy expense, on total fee income $10 $16 $26 The effect of related party service fees on outside services 11 22 20 The Company paid $71 million , $124 million and $185 million in regular common stock dividends to RBS for the years ended December 31, 2015 , 2014 and 2013 , respectively. Additionally, in 2014 and 2013, the Company paid $666 million and $1.0 billion , respectively, of common stock dividends to RBS as part of exchange transactions. Additionally, the Company has engaged in repurchases of its common stock directly from RBS. Refer to Note 13 “Stockholders’ Equity” 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. Extensions of credit amounted to $136 million and $126 million at December 31, 2015 and December 31, 2014, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As discussed in Note 1 “Significant Accounting Policies,” the Company measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. The Company also applies the fair value measurement guidance to determine amounts reported for certain disclosures in this Note for assets and liabilities not required to be reported at fair value in the financial statements. 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 ($2) million , $5 million , and ($33) million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Interest income on residential mortgage loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. Fair Value Option, Commercial and Commercial Real Estate Loans Held for Sale The 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 December 31, 2015 . The loans accounted for under the fair value option are initially measured at fair value when the financial asset is recognized. Subsequent changes in fair value are recognized in current earnings. Since all loans in the Company’s commercial trading portfolio consist of floating rate obligations, all changes in fair value are due to changes in credit risk. Such credit-related fair value changes may include observed changes in overall credit spreads and/or changes to the creditworthiness of an individual borrower. Unsettled trades within the commercial trading portfolio are not recognized on the Consolidated Balance Sheets and represent off-balance sheet commitments. Refer to Note 17 “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 $3 million and $1 million for the years ended December 31, 2015 and 2014 , respectively, in other noninterest income related to its commercial trading portfolio. There was no interest income or noninterest income recorded for the year ended December 31, 2013 . 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: December 31, 2015 December 31, 2014 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $268 $263 $5 $213 $206 $7 Commercial and commercial real estate loans held for sale, at fair value 57 57 — 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. Other investments The fair values of the Company’s 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 December 31, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $17,842 $— $17,842 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury and other 16 15 1 — Total securities available for sale 17,884 15 17,869 — Loans held for sale, at fair value: Residential loans held for sale 268 — 268 — Commercial loans held for sale 57 — 57 — Total loans held for sale, at fair value 325 — 325 — Derivative assets: Interest rate swaps 636 — 636 — Foreign exchange contracts 163 — 163 — Other contracts 8 — 8 — Total derivative assets 807 — 807 — Other investment securities, at fair value: Money market mutual fund 65 65 — — Other investments 5 — 5 — Total other investment securities, at fair value 70 65 5 — Total assets $19,086 $80 $19,006 $— Derivative liabilities: Interest rate swaps $505 $— $505 $— Foreign exchange contracts 156 — 156 — Other contracts 5 — 5 — Total derivative liabilities 666 — 666 — Total liabilities $666 $— $666 $— 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, at fair value: Residential loans held for sale 213 — 213 — Commercial loans held for sale 43 — 43 — Total loans held for sale, at fair value 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: Year Ended December 31, (in millions) 2015 2014 2013 Beginning as of January 1 $5 $5 $6 Purchases, issuances, sales and settlements: Purchases — — — Sales — — (4 ) Settlements — — 3 Net (losses) gains — — — Transfers from Level 3 to Level 2 (5 ) — — Balance as of December 31 $— $5 $5 Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 $— $— $— 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 December 31, 2015 , the fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life of 5.4 years (range of 2.8 - 6.2 years ), weighted-average constant prepayment rate of 11.6% (range of 10.7% - 22.2% ) and weighted-average discount rate of 9.7% (range of 9.1% - 12.1% ). 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” and Note 10 “Mortgage Banking” for more information. Foreclosed assets Foreclosed assets consist primarily of residential properties. Foreclosed assets are carried at the lower of carrying value or fair value less costs to dispose. Fair value is based upon independent market prices or appraised values of the collateral and is classified as Level 2. Goodwill Goodwill is valued using unobservable inputs and is classified as Level 3. Fair value is calculated using the present value of estimated future earnings (discounted cash flow method). On a quarterly basis, the Company assesses whether or not impairment indicators are present. For information on the Company’s goodwill impairment testing and the most recent goodwill impairment test, see Note 1 “Significant Accounting Policies” and Note 9 “Goodwill” for a description of the Company's goodwill valuation methodology. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2015 2014 2013 Impaired collateral-dependent loans ($32 ) ($101 ) ($83 ) MSRs 9 5 47 Foreclosed assets (3 ) (3 ) (4 ) Goodwill impairment (1) — — (4,435 ) (1) In the year ended December 31, 2013 , Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion , resulting in an impairment charge of $4.4 billion . The following table present assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2015 December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $60 $— $60 $— $102 $— $102 $— MSRs 178 — — 178 166 — — 166 Foreclosed assets 42 — 42 — 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, at cost The fair value of other investment securities, at cost, 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 Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2015 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Securities held to maturity $5,258 $5,297 $— $— $5,258 $5,297 $— $— Other investment securities, at cost 863 863 — — 863 863 — — Other loans held for sale 40 40 — — — — 40 40 Loans and leases 99,042 99,026 — — 60 60 98,982 98,966 Financial Liabilities: Deposits 102,539 102,528 — — 102,539 102,528 — — Federal funds purchased and securities sold under agreements to repurchase 802 802 — — 802 802 — — Other short-term borrowed funds 2,630 2,630 — — 2,630 2,630 — — Long-term borrowed funds 9,886 9,837 — — 9,886 9,837 — — 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 | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS As a BHC, the Company is subject to regulation and supervision by the FRB. The primary subsidiaries of the Company are its two insured depository institutions CBNA, a national banking association whose primary federal regulator is the OCC, and CBPA, a Pennsylvania-chartered savings bank regulated by the Department of Banking of the Commonwealth of Pennsylvania and supervised by the FDIC as its primary federal regulator. Under the Basel III capital framework that took effect on January 1, 2015, the Company and its banking subsidiaries must meet specific capital requirements. Basel III requirements are expressed in terms of the following ratios: (1) common equity tier 1 capital (common equity tier 1 capital/risk-weighted on- and off-balance sheet assets); (2) tier 1 capital (tier 1 capital/risk-weighted on- and off-balance sheet assets); (3) total capital (total capital/risk-weighted on- and off-balance sheet assets); and (4) tier 1 leverage (tier 1 capital/adjusted average quarterly assets). To meet the regulatory capital requirements, the Company and its banking subsidiaries must maintain minimum regulatory levels for each ratio. In addition, the Company must not be subject to a written agreement, order or capital directive with any of its regulators. Failure to meet minimum capital requirements can result in the initiation of certain actions that, if undertaken, could have a material effect on the Company’s Consolidated Financial Statements. The following table presents capital and capital ratio information evidencing the Company’s transition from Basel I regulatory accounting as of December 31, 2014 to Basel III regulatory accounting as of December 31, 2015 . Basel I requirements did not include the common equity tier I capital ratio. Certain Basel III requirements are subject to phase-in through 2019, 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 FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (dollars in millions) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Basel III Common equity tier 1 capital (1) $13,389 11.7 % $5,134 4.5 % $7,415 6.5 % Tier 1 capital (2) 13,636 12.0 6,845 6.0 9,127 8.0 Total capital (3) 17,505 15.3 9,127 8.0 11,408 10.0 Tier 1 leverage (4) 13,636 10.5 5,218 4.0 6,523 5.0 As of December 31, 2014 Basel I Tier 1 common equity (1) $13,173 12.4 % Not Applicable Not Applicable Not Applicable Not Applicable Tier 1 capital (2) 13,173 12.4 $4,239 4.0 % $6,358 6.0 % Total capital (3) 16,781 15.8 8,477 8.0 10,596 10.0 Tier 1 leverage (4) 13,173 10.6 4,982 4.0 6,227 5.0 (1) CET1 under Basel III replaced the concept of tier 1 common capital that existed under Basel I effective January 1, 2015. “Common equity tier 1 capital ratio” as of December 31, 2015 represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 common capital ratio” reported prior to January 1, 2015, represented tier 1 common equity divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (2) “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 capital ratio” reported prior to January 1, 2015, represented tier 1 capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. The “Total capital ratio” reported prior to January 1, 2015, represented total capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. The “tier 1 leverage ratio” reported prior to January 1, 2015, represented tier 1 capital divided by quarterly average total assets as defined under the Basel I general risk-based capital rule. 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 year ended December 31, 2015 , the Company paid total common dividends of approximately $214 million and repurchased 20,088,781 shares of its common stock. Additionally, in the year ended December 31, 2015 , the Company paid total preferred dividends of approximately $7 million . 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 has been in place through the fourth quarter of 2015 . 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. CBNA has entered into an agreement with the OCC 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. CBNA has made substantial progress toward completing those actions. However, until the plan has been completed 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. |
EXIT COSTS AND RESTRUCTURING RE
EXIT COSTS AND RESTRUCTURING RESERVES | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
EXIT COSTS AND RESTRUCTURING RESERVES | EXIT COSTS AND RESTRUCTURING RESERVES For the year ended December 31, 2015 , the Company incurred $26 million of restructuring costs, consisting of $17 million of facilities costs in occupancy, $8 million in outside services, and $1 million in salaries and employee benefits, relating to restructuring initiatives designed to enhance operating efficiencies and reduce expense growth. In 2014, the Company began the implementation of a restructuring initiative designed to achieve 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 24 “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, 2013 $3 $27 $— $30 Additions 6 22 3 31 Reversals (1 ) (4 ) — (5 ) Utilization (6 ) (21 ) (3 ) (30 ) Reserve balance as of December 31, 2013 2 24 — 26 Additions 43 24 57 124 Reversals (1 ) (5 ) (4 ) (10 ) Utilization (21 ) (25 ) (50 ) (96 ) Reserve balance as of December 31, 2014 23 18 3 44 Additions 5 18 8 31 Reversals (4 ) (1 ) — (5 ) Utilization (12 ) (19 ) (6 ) (37 ) Reserve balance as of December 31, 2015 $12 $16 $5 $33 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 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, 2013 ($240 ) $306 ($378 ) ($312 ) Other comprehensive loss before reclassifications (172 ) (285 ) — (457 ) Other than temporary impairment not recognized in earnings on securities — (26 ) — (26 ) Amounts reclassified from other comprehensive income 114 (86 ) 119 147 Net other comprehensive (loss) income (58 ) (397 ) 119 (336 ) Balance at December 31, 2013 ($298 ) ($91 ) ($259 ) ($648 ) Other comprehensive income before reclassifications 212 198 — 410 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (loss) 17 (11 ) (118 ) (112 ) Net other comprehensive income 229 165 (118 ) 276 Balance at December 31, 2014 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income (loss) before reclassifications 93 (66 ) — 27 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive (loss) income (14 ) (14 ) 8 (20 ) Net other comprehensive (loss) income 79 (102 ) 8 (15 ) Balance at December 31, 2015 $10 ($28 ) ($369 ) ($387 ) The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2015 2014 2013 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $82 $72 $56 Interest income (59 ) (99 ) (235 ) Interest expense — — (1 ) Other income 23 (27 ) (180 ) Income (loss) before income tax expense (benefit) 9 (10 ) (66 ) Income tax expense (benefit) $14 ($17 ) ($114 ) Net income (loss) Reclassification of net securities gains (losses) to net income: $29 $28 $144 Securities gains, net (7 ) (10 ) (8 ) Net securities impairment losses recognized in earnings 22 18 136 Income (loss) before income tax expense (benefit) 8 7 50 Income tax expense (benefit) $14 $11 $86 Net income (loss) Reclassification of changes related to defined benefit pension plans: ($8 ) $192 ($190 ) Salaries and employee benefits (8 ) 192 (190 ) Income (loss) before income tax expense (benefit) — 74 (71 ) Income tax expense (benefit) ($8 ) $118 ($119 ) Net income (loss) Total reclassification gains (losses) $20 $112 ($147 ) Net income (loss) The following table presents the effects to net income of the amounts reclassified out of AOCI: Year Ended December 31, (in millions) 2015 2014 2013 Net interest income (includes $23, ($27) and ($179) of AOCI reclassifications, respectively) $3,402 $3,301 $3,058 Provision for credit losses 302 319 479 Noninterest income (includes $22, $18 and $135 of AOCI reclassifications, respectively) 1,422 1,678 1,632 Noninterest expense (includes $8, ($192) and $190 of AOCI reclassifications, respectively) 3,259 3,392 7,679 Income (loss) before income tax expense (benefit) 1,263 1,268 (3,468 ) Income tax expense (benefit) (includes $17, $71 and ($87) income tax net expense (benefit) from reclassification items, respectively) 423 403 (42 ) Net income (loss) $840 $865 ($3,426 ) |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company is managed by its CEO on a segment basis. The Company’s two business segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has one or more segment heads who report directly to the CEO. The CEO has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the CEO. Non-segment operations are classified as Other, which includes corporate functions, the Treasury function, the securities portfolio, wholesale funding activities, intangible assets, community development, non-core assets, and other unallocated assets, liabilities, capital, revenues, provision for credit losses and expenses. Reportable Segments Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the Company’s organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below: Consumer Banking The Consumer Banking segment focuses on retail customers and small businesses with annual revenues of up to $25 million . It offers traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans and financial management services. It also operates an indirect auto financing business, providing financing for both new and used vehicles through auto dealerships. The segment’s distribution channels include a branch network, ATMs and a work force of experienced specialists ranging from financial consultants, mortgage loan officers and business banking officers to private bankers. 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 Year Ended December 31, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,198 $1,162 $42 $3,402 Noninterest income 910 415 97 1,422 Total revenue 3,108 1,577 139 4,824 Noninterest expense 2,456 709 94 3,259 Profit before provision for credit losses 652 868 45 1,565 Provision for credit losses 252 (13 ) 63 302 Income before income tax expense (benefit) 400 881 (18 ) 1,263 Income tax expense (benefit) 138 302 (17 ) 423 Net income (loss) $262 $579 ($1 ) $840 Total average assets $52,848 $42,800 $39,422 $135,070 As of and for the Year Ended December 31, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,151 $1,073 $77 $3,301 Noninterest income 899 429 350 1,678 Total revenue 3,050 1,502 427 4,979 Noninterest expense 2,513 652 227 3,392 Profit before provision for credit losses 537 850 200 1,587 Provision for credit losses 259 (6 ) 66 319 Income before income tax expense 278 856 134 1,268 Income tax expense 96 295 12 403 Net income 182 561 122 865 Total average assets $48,939 $38,483 $40,202 $127,624 As of and for the Year Ended December 31, 2013 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income (expense) $2,176 $1,031 ($149 ) $3,058 Noninterest income 1,025 389 218 1,632 Total revenue 3,201 1,420 69 4,690 Noninterest expense 2,522 635 4,522 7,679 Profit (loss) before provision for credit losses 679 785 (4,453 ) (2,989 ) Provision for credit losses 308 (7 ) 178 479 Income (loss) before income tax expense (benefit) 371 792 (4,631 ) (3,468 ) Income tax expense (benefit) 129 278 (449 ) (42 ) Net income (loss) 242 514 (4,182 ) (3,426 ) Total average assets $46,465 $35,229 $39,172 $120,866 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 | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Equity Grants Prior to the IPO Prior to the Company’s IPO, RBS 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 Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”). This plan permits the Company to grant a variety of awards to employees and service providers. 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 Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan (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 Citizens Financial Group, Inc. 2014 Employee Stock Purchase Plan (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. Summary of Share-Based Plans Activity The following tables summarize the activity related to the Company’s share-based plans (excluding the ESPP): Year Ended December 31, 2015 2014 CFG Share Awards Shares Weighted Average Grant Price Shares Weighted Average Grant Price Nonvested, January 1 5,595,882 $21.52 — $— Conversion to CFG Shares — — 5,774,504 21.50 Granted 1,315,572 25.18 209,099 24.87 Vested (2,496,092 ) 22.15 (161,067 ) 25.07 Forfeited (987,232 ) 21.58 (226,654 ) 21.50 Nonvested, December 31 3,428,130 $22.43 5,595,882 $21.52 Year Ended December 31, 2014 2013 RBS Share Awards Shares Underlying Awards Weighted Average Grant Price Shares Underlying Awards Weighted Average Grant Price Nonvested, January 1 19,778,967 $5.31 22,865,810 $6.14 Granted 9,627,635 5.48 6,363,919 4.66 Vested (6,040,806 ) 6.14 (4,208,789 ) 6.68 Forfeited (3,975,044 ) 6.73 (5,241,973 ) 7.03 Conversion to CFG Shares (19,390,752 ) 4.84 — — Nonvested, December 31 — $— 19,778,967 $5.31 There are 60,652,066 shares of Company common stock available for awards to be granted under our employee share plans ( including 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 above share plans (including the ESPP) was $24 million , $53 million , and $27 million for the year ended December 31, 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , the total unrecognized compensation expense for nonvested equity awards granted was $11 million . This expense is expected to be recognized over a weighted-average period of two years . No share-based compensation costs were capitalized during the years end December 31, 2015 , 2014 and 2013 . The income tax benefit recognized in earnings based on the compensation expense recognized for all share-based compensation arrangements amounted to $5 million and $17 million in 2015 and 2014 , respectively. The excess of actual tax deductions over amounts assumed, which are recognized in stockholders’ equity, was insignificant in 2013 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Year Ended December 31, (dollars in millions, except share and per-share data) 2015 2014 2013 Numerator (basic and diluted): Net income (loss) $840 $865 ($3,426 ) Less: Preferred stock dividends 7 — — Net income (loss) available to common stockholders $833 $865 ($3,426 ) Denominator: Weighted-average common shares outstanding - basic 535,599,731 556,674,146 559,998,324 Dilutive common shares: share-based awards 2,621,167 1,050,790 — Weighted-average common shares outstanding - diluted 538,220,898 557,724,936 559,998,324 Earnings (loss) per common share: Basic $1.55 $1.55 ($6.12 ) Diluted 1.55 1.55 (6.12 ) 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. |
PARENT COMPANY ONLY FINANCIALS
PARENT COMPANY ONLY FINANCIALS | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIALS | PARENT COMPANY ONLY FINANCIALS CFG Parent Company Condensed Statements of Operations Year Ended December 31, (in millions) 2015 2014 2013 OPERATING INCOME: Income from consolidated bank subsidiaries and associated banks, excluding equity in undistributed income: Dividends from banking subsidiaries $345 $595 $210 Interest 54 29 13 Management and service fees 20 21 26 Securities gains 3 — — All other operating income 4 5 2 Total operating income 426 650 251 OPERATING EXPENSE: Salaries and employee benefits 15 63 38 Interest expense 108 80 24 All other expenses 38 123 43 Total operating expense 161 266 105 Income before taxes and undistributed income 265 384 146 Applicable income taxes (29 ) (77 ) (22 ) Income before undistributed income of subsidiaries and associated companies 294 461 168 Equity in undistributed income (losses) of subsidiaries and associated companies: Bank 543 402 (3,595 ) Nonbank 3 2 1 Net income (loss) $840 $865 ($3,426 ) Other comprehensive income (loss), net of income taxes: Net pension plan activity arising during the period $1 $8 $17 Net unrealized derivative instrument gains arising during the period 2 — 1 Net unrealized securities (losses) gains arising during the period (2 ) 1 — Other comprehensive income activity of the Parent Company Only, net of income taxes 1 9 18 Other comprehensive (loss) income activity of Bank subsidiaries, net of income taxes (16 ) 267 (354 ) Total other comprehensive (loss) income, net of income taxes (15 ) 276 (336 ) Total comprehensive income (loss) $825 $1,141 ($3,762 ) In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Company itself are generally limited to the retained earnings of the respective banking subsidiaries unless specifically approved by the appropriate bank regulator. The Company declared and paid total common stock dividends of $214 million in 2015 , $806 million in 2014 , and $1.2 billion in 2013 . CFG Parent Company Condensed Balance Sheets (in millions) December 31, 2015 December 31, 2014 ASSETS: Cash and due from banks $531 $280 Loans and advances to: Bank subsidiaries 1,725 1,685 Investments in subsidiaries: Bank subsidiaries 19,865 19,512 Nonbank subsidiaries 54 72 Balances due from RBS 6 — Other assets 154 214 TOTAL ASSETS $22,335 $21,763 LIABILITIES: Long-term debt due to: Unaffiliated companies $1,345 $350 RBS 1,250 2,000 Balances due to RBS 3 2 Balances due to nonbank subsidiaries 1 — Other liabilities 90 143 TOTAL LIABILITIES 2,689 2,495 TOTAL STOCKHOLDERS’ EQUITY 19,646 19,268 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $22,335 $21,763 CFG Parent Company Condensed Cash Flow Statements Year Ended December 31, (in millions) 2015 2014 2013 OPERATING ACTIVITIES Net income (loss) $840 $865 ($3,426 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes 49 27 (11 ) Gain on sales of assets (3 ) — — Equity in undistributed (earnings) losses of subsidiaries (546 ) (404 ) 3,594 Net change in other liabilities (48 ) 18 7 Net change in other assets (16 ) (74 ) 15 Other operating, net 3 17 1 Total adjustments (561 ) (416 ) 3,606 Net cash provided by operating activities 279 449 180 INVESTING ACTIVITIES Proceeds from sales of securities available for sale 8 — — Payments for investments in and advances to subsidiaries (215 ) (1,470 ) (220 ) Sale or repayment of investments in and advances to subsidiaries 376 945 315 Other investing, net — (11 ) (1 ) Net cash (used) provided by investing activities 169 (536 ) 94 FINANCING ACTIVITIES Repayment of advances from subsidiaries — — (289 ) Proceeds from issuance of long-term debt 1,000 1,000 1,000 Repayments of long-term debt (750 ) — — Proceeds from issuance of common stock 27 13 — Repurchase of common stock (500 ) (334 ) — Proceeds from issuance of preferred stock 247 — — Dividends paid (221 ) (806 ) (1,185 ) Net cash used by financing activities (197 ) (127 ) (474 ) Net increase (decrease) in cash and due from banks 251 (214 ) (200 ) Cash and due from banks at beginning of year 280 494 694 Cash and due from banks at end of year $531 $280 $494 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2015 2014 2013 Deposit insurance $115 $95 $85 Promotional expense 101 86 76 Settlements and operating losses 43 89 51 Postage and delivery 46 48 60 Other 225 255 256 Other operating expense $530 $573 $528 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated the impacts of events that have occurred subsequent to December 31, 2015 through the date the Consolidated Financial Statements were filed with the SEC. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the Consolidated Financial Statements and related Notes, except as follows: On January 7, 2016, the Company entered into an agreement to purchase student loans on a quarterly basis beginning with the first calendar quarter in 2016 and ending with the fourth calendar quarter in 2016. Under the terms of the agreement, the Company committed to purchase a minimum of $125 million of loans per quarter. The minimum and maximum amount of the aggregate purchase principal balance of loans under the terms of the agreement are $500 million and $1 billion , respectively. The agreement will terminate immediately if at any time during its term the aggregate purchase principal balance of loans equals the maximum amount. The agreement may be extended by written agreement of the parties for an additional four quarters. The Company may terminate the agreement at will with payment of a termination fee equal to the product of $1 million times the number of calendar quarters remaining in the term. On January 8, 2016, the Company completed a $369 million purchase of student loans pursuant to the agreement described above. On January 22, 2016, the Company announced a quarterly cash dividend of $0.10 per share, or $53 million , which was paid on February 18, 2016 to stockholders of record at the close of business on February 4, 2016. On January 28, 2016, RBS received written notice from the Federal Reserve Board that it is not deemed to control CFG for purposes of the Bank Holding Company Act. On February 24, 2016, the Company announced the appointment of Malcolm Griggs as Executive Vice President and Chief Risk Officer effective April 1, 2016. Mr. Griggs, who has been with the bank since 2014, will succeed the Company’s current Chief Risk Officer, Nancy Shanik, who is retiring from the Company as of May 31, 2016. On February 25, 2016, the Company announced that its Board of Directors declared a semi-annual preferred dividend on its 5.500% Series A, Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock. The dividend of $27.50 per share, or $7 million in the aggregate, is payable on April 6, 2016 to the holders of record as of March 22, 2016. |
SIGNIFICANT ACCOUNTING POLICI40
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of the Company. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements for a variable interest entity to be consolidated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. |
Interest-Bearing Deposits in Banks | Interest-Bearing Deposits in Banks Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. |
Securities | Securities Investments in debt and equity securities are carried in four portfolios: AFS, HTM, trading, and other investment securities. Management determines the appropriate classification at the time of purchase. Securities in the AFS portfolio will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy. Gains and losses on the sales of securities are recognized in earnings and are computed using the specific identification method. Security impairments (i.e., declines in the fair value of securities below cost) that are considered by management to be other-than-temporary are recognized in earnings as realized losses. However, the determination of the impairment amount is dependent on the Company’s intent to sell (or not sell) the security. If the Company intends to sell the impaired security, the impairment loss recognized in current period earnings equals the difference between the instrument’s fair value and amortized cost. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, only the credit-related impairment loss is recognized in current period earnings and this amount equals the difference between the amortized cost of the security and the present value of the expected cash flows that have currently been projected. Securities AFS are carried at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Premiums and discounts on debt securities are amortized or accreted using the interest method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. Securities are classified as HTM because the Company has the ability and intent to hold the securities to maturity. Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in OCI and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. The securities are reported at cost and adjusted for amortization of premium and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. Securities that are classified as trading are bought and held principally for the purpose of selling them in the near term and are carried at fair value. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Other investment securities are composed mainly of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealer (which are carried at fair value, with changes in fair value recognized in noninterest income). Other investment securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. |
Loans and Leases | Loans and Leases Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts (on purchased loans). Deferred loan origination fees and costs and purchase discounts and premiums are amortized as an adjustment of yield over the life of the loan, using the interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Leases are classified at the inception of the lease. Lease receivables, including leveraged leases, are reported at the aggregate of lease payments receivable and estimated residual values, net of unearned and deferred income, including unamortized investment credits. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against noninterest income. Leveraged leases are reported net of non-recourse debt. Unearned income is recognized to yield a level rate of return on the net investment in the leases. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. Loans held for sale are carried at the lower of cost or fair value. Loans held for sale accounted for under the fair value option (including those loans associated with our mortgage banking business and secondary loan trading desk) are carried at fair value. |
Allowance for Credit Losses | Allowance for Credit Losses Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience, and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. The ALLL is maintained at a level that management considers to be reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The evaluation of the adequacy of the commercial, commercial real estate, and lease ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default, and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location, delinquency status, and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans, and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can used to support management overlays if deemed necessary. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows, compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. Commercial loans and leases are charged off to the ALLL when there is little prospect of collecting either principal or interest. Charge-offs of commercial loans and leases usually involve receipt of borrower-specific adverse information. For commercial collateral-dependent loans, an appraisal or other valuation is used to quantify a shortfall between the fair value of the collateral less costs to sell and the recorded investment in the commercial loan. Retail loan charge-offs are generally based on established delinquency thresholds rather than borrower-specific adverse information. When a loan is collateral-dependent, any shortfalls between the fair value of the collateral less costs to sell and the recorded investment is promptly charged off. Placing any loan or lease on nonaccrual status does not by itself require a partial or total charge-off; however, any identified losses are charged off at that time. |
Nonperforming Loans and Leases | Nonperforming Loans and Leases Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and it’s reasonably assured that the loan or lease will be brought fully current within a reasonable period. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent. Residential mortgages are returned to accrual status when principal and interest payments become less than 120 days past due and when future payments are reasonably assured. Credit card balances are placed on nonaccrual status when past due 90 days or more. Credit card balances are restored to accruing status if they subsequently become less than 90 days past due. Guaranteed student loans are not placed on nonaccrual status. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Loans are generally returned to accrual status if the loan becomes less than 15 days past due. Cash receipts on nonaccruing loans and leases are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. |
Impaired Loans | Impaired Loans A loan is considered to be impaired when it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogenous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. A loan modification is identified as a TDR when the Company or bankruptcy court grants the borrower a concession the Company would not otherwise make, in response to the borrower’s financial difficulties. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forbearance, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for loans with risk similar to that of the restructured loan. Additionally, TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. Impairment evaluations are performed at the individual loan level, and consider expected future cash flows from the loan, including, if appropriate, the realizable value of collateral. Impaired loans which are not TDRs are nonaccruing, and loans involved in TDRs may be accruing or nonaccruing. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Loans are generally restored to accrual status when principal and interest payments are brought current and when future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan’s contractual terms. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. |
Software | Software Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. |
Fair Value | Fair Value The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, derivative instruments, and other investment securities. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans, and goodwill. |
Goodwill | Goodwill Goodwill is the purchase premium associated with the acquisition of a business. It is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible assets as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the current discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. The Company bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers and selected employees of the Company. |
Employee Benefits | Employee Benefits Pension costs under defined benefit plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The cost of postretirement and postemployment benefits other than pensions is recognized on an accrual basis during the periods employees provide services to earn those benefits. |
Share-Based Compensation | Share-Based Compensation The Company adopted the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan (the “Omnibus Plan”), pursuant to which stock awards are granted to employees. The Company recognizes compensation expense related to stock awards based upon the fair value of the awards which is the closing price of CFG common stock on the date of the grant, adjusted for forfeitures. The related expense is charged to earnings over the requisite service period (e.g., vesting period). |
Derivatives | Derivatives The Company is party to a variety of derivative transactions, including interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, forward sale contracts, warrants and purchase options. The Company enters into contracts in order to meet the financing needs of its customers. The Company also enters into contracts as a means of reducing its interest rate and foreign currency risks, and these contracts are designated as hedges when acquired, based on management’s intent. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. All derivatives, whether designated for hedging relationships or not, are recognized in the Consolidated Balance Sheets at fair value. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI, a component of stockholders’ equity. The ineffective portions of cash flow hedges are immediately recognized as an adjustment to income or expense. For cash flow hedging relationships that have been discontinued, balances in OCI are reclassified to interest expense in the periods during which the hedged item affects income. If it is probable that the hedged forecasted transaction will not occur, balances in OCI are reclassified immediately to income. If a derivative is designated as a fair value hedge, gains or losses attributable to the change in fair value of the derivative instrument, as well as the gains and losses attributable to the change in fair value of the hedged item, are recognized in other noninterest income in the period in which the change in fair value occurs. Hedge ineffectiveness is recognized as other noninterest income to the extent the changes in fair value of the derivative do not offset the changes in fair value of the hedged item. Changes in the fair value of derivatives that do not qualify as hedges are recognized immediately in earnings. Derivative assets and derivative liabilities governed by master netting agreements are netted by counterparty on the balance sheet, and this netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a CSA. |
Transfers and Servicing of Financial Assets | Transfers and Servicing of Financial Assets A transfer of financial assets is accounted for as a sale when control over the assets transferred is surrendered. Assets transferred that satisfy the conditions of a sale are derecognized, and all assets obtained and liabilities incurred in a purchase are recognized and measured at fair value. Servicing rights retained in the transfer of financial assets are initially recognized at fair value. Subsequent to the initial recognition date, the Company recognizes periodic amortization expense of servicing rights and assesses servicing rights for impairment. |
Mortgage Banking | Mortgage Banking Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking fees. MSRs are presented in the Consolidated Balance Sheets net of accumulated amortization, which is recorded in proportion to, and over the period of, net servicing income. The Company’s identification of MSRs in a single class is determined based on the availability of market inputs and the Company’s method of managing MSR risks. For the purpose of evaluating impairment, MSRs are stratified based on predominant risk characteristics (such as interest rate, loan size, origination date, term, or geographic location) of the underlying loans. An allowance is then established in the event the recorded value of an individual stratum exceeds fair value. The Company accounts for derivatives in its mortgage banking operations at fair value on the balance sheet as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. |
Income Taxes | Income Taxes The Company uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes. This results in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the bases of assets and liabilities, as measured by tax laws, and their bases, as reported in the Consolidated Financial Statements. Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. The Company also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. |
Treasury Stock | Treasury Stock The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on the first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable. |
Revenue Recognition | Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Interest income on loans and securities classified as AFS or HTM is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan or security, to provide a constant rate of return over the terms of the financial assets. Securities classified as trading account assets, and other financial assets accounted for using the fair value option, are measured at fair value with corresponding changes recognized in noninterest income. Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate on the loan. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. Other types of noninterest revenues, such as service charges on deposits, interchange income on credit cards and trust revenues, are accrued and recognized into income as services are provided and the amount of fees earned are reasonably determinable. |
Earnings Per Share | Earnings Per Share Basic EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income/(loss) available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as call options, share-based payment awards, and warrants using the treasury stock method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 “Leases”. The ASU generally requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. The ASU is effective for the Company beginning on January 1, 2019. The Company is currently assessing the impact of this guidance on the Company’s Consolidated Financial Statements. In January 2016, the FASB issued ASU No. 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities.” The ASU requires equity investments (except for those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in the fair value recognized through net income. The ASU also requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the notes to the financial statements. In addition, the ASU makes several other targeted amendments to the existing accounting and disclosure requirements for financial instruments, including revised guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on available-for-sale debt securities. The ASU is effective for the Company beginning on January 1, 2018. The Company is currently assessing the impact of this guidance on the Company’s Consolidated Financial Statements. 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 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 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 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. Adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. 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 Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table provides the major components of securities at amortized cost and fair value: December 31, 2015 December 31, 2014 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Treasury and other $16 $— $— $16 $15 $— $— $15 State and political subdivisions 9 — — 9 10 — — 10 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,234 153 (67 ) 17,320 17,683 301 (50 ) 17,934 Other/non-agency 555 4 (37 ) 522 703 4 (35 ) 672 Total mortgage-backed securities 17,789 157 (104 ) 17,842 18,386 305 (85 ) 18,606 Total debt securities available for sale 17,814 157 (104 ) 17,867 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 $17,831 $157 ($104 ) $17,884 $18,433 $308 ($85 ) $18,656 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,105 $27 ($11 ) $4,121 $3,728 $22 ($31 ) $3,719 Other/non-agency 1,153 23 — 1,176 1,420 54 — 1,474 Total securities held to maturity $5,258 $50 ($11 ) $5,297 $5,148 $76 ($31 ) $5,193 Other Investment Securities, at Fair Value Money market mutual fund $65 $— $— $65 $28 $— $— $28 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $70 $— $— $70 $33 $— $— $33 Other Investment Securities, at Cost Federal Reserve Bank stock $468 $— $— $468 $477 $— $— $477 Federal Home Loan Bank stock 395 — — 395 390 — — 390 Total other investment securities, at cost $863 $— $— $863 $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 securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2015 2014 2013 Other-than-temporary impairment: Total other-than-temporary impairment losses ($43 ) ($45 ) ($49 ) Portions of loss recognized in other comprehensive income (before taxes) 36 35 41 Net securities impairment losses recognized in earnings ($7 ) ($10 ) ($8 ) |
Schedule of unrealized loss on investments | The following tables summarize those securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: December 31, 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 $— US Treasury and other 1 15 — — — — 1 15 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 162 7,423 (51 ) 36 819 (27 ) 198 8,242 (78 ) Other/non-agency 2 9 — 20 361 (37 ) 22 370 (37 ) Total mortgage-backed securities 164 7,432 (51 ) 56 1,180 (64 ) 220 8,612 (115 ) Total 166 $7,456 ($51 ) 56 $1,180 ($64 ) 222 $8,636 ($115 ) 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: Year Ended December 31, (in millions) 2015 2014 2013 Cumulative balance at beginning of period $62 $56 $55 Credit impairments recognized in earnings on securities that have been previously impaired 7 10 8 Reductions due to increases in cash flow expectations on impaired securities (3 ) (4 ) (7 ) Cumulative balance at end of period $66 $62 $56 |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities at December 31, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without 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 and other $15 $— $1 $— $16 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 52 1,833 15,345 17,234 Other/non-agency — 68 3 484 555 Total debt securities available for sale 19 120 1,837 15,838 17,814 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,105 4,105 Other/non-agency — — — 1,153 1,153 Total debt securities held to maturity — — — 5,258 5,258 Total amortized cost of debt securities $19 $120 $1,837 $21,096 $23,072 Fair Value: Debt securities available for sale U.S. Treasury and other $15 $— $1 $— $16 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 4 54 1,845 15,417 17,320 Other/non-agency — 70 3 449 522 Total debt securities available for sale 19 124 1,849 15,875 17,867 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,121 4,121 Other/non-agency — — — 1,176 1,176 Total debt securities held to maturity — — — 5,297 5,297 Total fair value of debt securities $19 $124 $1,849 $21,172 $23,164 |
Schedule of income recognized on investment securities | The following table reports the amounts recognized in interest income from investment securities and interest-bearing deposits in banks on the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2015 2014 2013 Taxable $621 $619 $477 Non-taxable — — — Interest-bearing cash and due from banks and deposits in banks $5 $5 $11 Total interest income from investment securities and interest-bearing deposits in banks $626 $624 $488 Realized gains and losses on securities are shown below: Year Ended December 31, (in millions) 2015 2014 2013 Gains on sale of debt securities $41 $33 $144 Losses on sale of debt securities (12 ) (5 ) — Debt securities gains, net $29 $28 $144 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: December 31, 2015 December 31, 2014 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $805 $808 $3,650 $3,701 Pledged against FHLB borrowed funds 1,163 1,186 1,355 1,407 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,579 3,610 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: December 31, 2015 December 31, 2014 (in millions) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Securities purchased under agreements to resell $500 ($500 ) $— $— $— $— Securities sold under agreements to repurchase (500 ) 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 16 “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 December 31, 2015 : Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total Securities purchased under agreements to resell Mortgage-backed securities - Agency $— $500 $— $— $500 Total securities purchased under agreements to resell $— $500 $— $— $500 Securities sold under agreements to repurchase Mortgage-backed securities - Agency $— ($500 ) $— $— ($500 ) Total securities sold under agreement to repurchase $— ($500 ) $— $— ($500 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio follows: December 31, (in millions) 2015 2014 Commercial $33,264 $31,431 Commercial real estate 8,971 7,809 Leases 3,979 3,986 Total commercial 46,214 43,226 Residential mortgages 13,318 11,832 Home equity loans 2,557 3,424 Home equity lines of credit 14,674 15,423 Home equity loans serviced by others (1) 986 1,228 Home equity lines of credit serviced by others (1) 389 550 Automobile 13,828 12,706 Student 4,359 2,256 Credit cards 1,634 1,693 Other retail 1,083 1,072 Total retail 52,828 50,184 Total loans and leases (2) (3) $99,042 $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 $365 million and $281 million as of December 31, 2015 and 2014 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.9 billion at December 31, 2015 and 2014 , respectively. |
Schedule of investment in leases, before the ALLL | A summary of the investment in leases, before the ALLL, is as follows: December 31, (in millions) 2015 2014 Direct financing leases $3,898 $3,873 Leveraged leases 81 113 Total leases $3,979 $3,986 The components of the investment in leases, before the ALLL, are as follows: December 31, (in millions) 2015 2014 Total future minimum lease rentals $3,195 $3,324 Estimated residual value of leased equipment (non-guaranteed) 1,157 1,059 Initial direct costs 22 22 Unearned income on minimum lease rentals and estimated residual value of leased equipment (395 ) (419 ) Total leases $3,979 $3,986 |
Schedule of future minimum lease rentals on direct financing and leveraged leases | At December 31, 2015 , the future minimum lease rentals on direct financing and leveraged leases are as follows: Year Ended December 31, (in millions) 2016 $707 2017 588 2018 528 2019 445 2020 327 Thereafter 600 Total $3,195 |
ALLOWANCE FOR CREDIT LOSSES, 43
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | The following is a summary of changes in the allowance for credit losses: Year Ended December 31, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2015 $544 $651 $1,195 Charge-offs (36 ) (444 ) (480 ) Recoveries 49 147 196 Net recoveries (charge-offs) 13 (297 ) (284 ) Provision charged to income 39 266 305 Allowance for loan and lease losses as of December 31, 2015 596 620 1,216 Reserve for unfunded lending commitments as of January 1, 2015 61 — 61 Credit for unfunded lending commitments (3 ) — (3 ) Reserve for unfunded lending commitments as of December 31, 2015 58 — 58 Total allowance for credit losses as of December 31, 2015 $654 $620 $1,274 Year Ended December 31, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses as of January 1, 2014 $498 $723 $1,221 Charge-offs (43 ) (450 ) (493 ) Recoveries 58 112 170 Net (charge-offs) recoveries 15 (338 ) (323 ) Provision charged to income 31 266 297 Allowance for loan and lease losses as of December 31, 2014 544 651 1,195 Reserve for unfunded lending commitments as of January 1, 2014 39 — 39 Provision for unfunded lending commitments 22 — 22 Reserve for unfunded lending commitments as of December 31, 2014 61 — 61 Total allowance for credit losses as of December 31, 2014 $605 $651 $1,256 Year Ended December 31, 2013 (in millions) Commercial Retail Unallocated Total Allowance for loan and lease losses as of January 1, 2013 $509 $657 $89 $1,255 Charge-offs (108 ) (595 ) — (703 ) Recoveries 87 115 — 202 Net charge-offs (21 ) (480 ) — (501 ) Sales/Other (6 ) (6 ) (1 ) (13 ) Provision charged to income (19 ) 396 103 480 Transfer of unallocated reserve to qualitative reserve 35 60 (95 ) — Loss emergence period change — 96 (96 ) — Allowance for loan and lease losses as of December 31, 2013 498 723 — 1,221 Reserve for unfunded lending commitments as of January 1, 2013 40 — — 40 Credit for unfunded lending commitments (1 ) — — (1 ) Reserve for unfunded lending commitments as of December 31, 2013 39 — — 39 Total allowance for credit losses as of December 31, 2013 $537 $723 $— $1,260 |
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: December 31, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $218 $1,165 $1,383 $205 $1,208 $1,413 Formula-based evaluation 45,996 51,663 97,659 43,021 48,976 91,997 Total $46,214 $52,828 $99,042 $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: December 31, 2015 December 31, 2014 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $36 $101 $137 $20 $109 $129 Formula-based evaluation 618 519 1,137 585 542 1,127 Allowance for credit losses $654 $620 $1,274 $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: December 31, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,276 $911 $1,002 $75 $33,264 Commercial real estate 8,450 272 171 78 8,971 Leases 3,880 55 44 — 3,979 Total $43,606 $1,238 $1,217 $153 $46,214 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: December 31, 2015 (in millions) Current 1-29 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,905 $97 $70 $246 $13,318 Home equity loans 2,245 164 44 104 2,557 Home equity lines of credit 13,982 407 80 205 14,674 Home equity loans serviced by others (1) 886 60 20 20 986 Home equity lines of credit serviced by others (1) 296 48 16 29 389 Automobile 12,670 964 159 35 13,828 Student 4,175 113 30 41 4,359 Credit cards 1,554 44 20 16 1,634 Other retail 1,013 53 12 5 1,083 Total $49,726 $1,950 $451 $701 $52,828 (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: December 31, 2015 December 31, 2014 (in millions) Nonaccruing Accruing and 90 Days or More Delinquent Total Nonperforming Loans and Leases Nonaccruing Accruing and 90 Days or More Delinquent Total Nonperforming Loans and Leases Commercial $70 $1 $71 $113 $1 $114 Commercial real estate 77 — 77 50 — 50 Leases — — — — — — Total commercial 147 1 148 163 1 164 Residential mortgages 331 — 331 345 — 345 Home equity loans 135 — 135 203 — 203 Home equity lines of credit 272 — 272 257 — 257 Home equity loans serviced by others (1) 38 — 38 47 — 47 Home equity lines of credit serviced by others (1) 32 — 32 25 — 25 Automobile 42 — 42 21 — 21 Student 35 6 41 11 6 17 Credit cards 16 — 16 16 1 17 Other retail 3 2 5 5 — 5 Total retail 904 8 912 930 7 937 Total $1,051 $9 $1,060 $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: December 31, (in millions) 2015 2014 Nonperforming assets, net of valuation allowance: Commercial $1 $3 Retail 45 39 Nonperforming assets, net of valuation allowance $46 $42 |
Summary of key performance indicators | A summary of key performance indicators is as follows: December 31, 2015 2014 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.15 % 0.18 % Nonperforming retail loans as a percentage of total loans and leases 0.92 1.00 Total nonperforming loans and leases as a percentage of total loans and leases 1.07 % 1.18 % Nonperforming commercial assets as a percentage of total assets 0.11 % 0.13 % Nonperforming retail assets as a percentage of total assets 0.69 0.73 Total nonperforming assets as a percentage of total assets 0.80 % 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): December 31, 2015 December 31, 2014 (in millions) 30-89 Days Past Due 90 Days or More Past Due Total Past Due 30-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial $13 $71 $84 $57 $114 $171 Commercial real estate 33 77 110 26 50 76 Leases 10 — 10 3 — 3 Total commercial 56 148 204 86 164 250 Residential mortgages 70 246 316 97 269 366 Home equity loans 44 104 148 60 145 205 Home equity lines of credit 80 205 285 73 198 271 Home equity loans serviced by others (1) 20 20 40 26 23 49 Home equity lines of credit serviced by others (1) 16 29 45 10 19 29 Automobile 159 35 194 93 16 109 Student 30 41 71 25 17 42 Credit cards 20 16 36 22 17 39 Other retail 12 5 17 18 4 22 Total retail 451 701 1,152 424 708 1,132 Total $507 $849 $1,356 $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: December 31, 2015 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $92 $23 $58 $144 $150 Commercial real estate 56 13 12 70 68 Total commercial 148 36 70 214 218 Residential mortgages 121 16 320 608 441 Home equity loans 85 11 139 283 224 Home equity lines of credit 27 2 167 234 194 Home equity loans serviced by others (1) 50 8 24 88 74 Home equity lines of credit serviced by others (1) 3 1 7 14 10 Automobile 3 — 11 19 14 Student 163 48 2 165 165 Credit cards 28 11 — 28 28 Other retail 13 4 2 18 15 Total retail 493 101 672 1,457 1,165 Total $641 $137 $742 $1,671 $1,383 (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: Year Ended December 31, 2015 2014 2013 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $4 $135 $9 $198 $1 $157 Commercial real estate 1 44 2 98 1 149 Total commercial 5 179 11 296 2 306 Residential mortgages 15 415 14 429 7 419 Home equity loans 9 222 8 246 5 228 Home equity lines of credit 4 173 4 149 2 90 Home equity loans serviced by others (1) 4 75 5 91 5 102 Home equity lines of credit serviced by others (1) — 9 — 11 — 12 Automobile — 11 — 7 — 8 Student 7 157 8 153 7 140 Credit cards 2 26 2 31 3 41 Other retail 1 16 1 21 1 25 Total retail 42 1,104 42 1,138 30 1,065 Total $47 $1,283 $53 $1,434 $32 $1,371 (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 year ended December 31, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to December 31, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $19 $19 160 $22 $22 Commercial real estate 1 — — 1 — — Total commercial 26 19 19 161 22 22 Residential mortgages 153 31 31 40 7 6 Home equity loans 96 5 5 191 35 35 Home equity lines of credit 4 1 1 23 2 2 Home equity loans serviced by others (3) 29 2 2 — — — Home equity lines of credit serviced by others (3) 2 — — 1 — — Automobile 108 2 2 5 — — Student — — — — — — Credit cards 2,413 13 13 — — — Other retail 3 — — — — — Total retail 2,808 54 54 260 44 43 Total 2,834 $73 $73 421 $66 $65 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 16 $34 $34 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 17 38 38 (1 ) 1 Residential mortgages 275 33 33 (1 ) — Home equity loans 448 28 28 — 1 Home equity lines of credit 320 21 19 — 2 Home equity loans serviced by others (3) 124 6 5 — 1 Home equity lines of credit serviced by others (3) 41 3 2 — — Automobile 812 14 12 — 2 Student 1,204 22 22 4 — Credit cards — — — 2 — Other retail 20 — — — — Total retail 3,244 127 121 5 6 Total 3,261 $165 $159 $4 $7 (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 year ended December 31, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to December 31, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $8 $7 131 $21 $22 Commercial real estate 9 1 2 15 3 2 Total commercial 34 9 9 146 24 24 Residential mortgages 126 17 17 40 6 5 Home equity loans 125 8 9 85 5 6 Home equity lines of credit 7 — — 276 17 16 Home equity loans serviced by others (3) 42 2 2 — — — Home equity lines of credit serviced by others (3) 4 — — 1 — — Automobile 75 1 1 18 — — Student — — — — — — Credit cards 2,165 12 12 — — — Other retail 3 — — — — — Total retail 2,547 40 41 420 28 27 Total 2,581 $49 $50 566 $52 $51 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 27 $52 $74 $3 $— Commercial real estate 1 7 7 — 3 Total commercial 28 59 81 3 3 Residential mortgages 393 47 46 (4 ) 1 Home equity loans 1,046 63 62 (1 ) 2 Home equity lines of credit 356 25 21 — 5 Home equity loans serviced by others (3) 138 5 5 (1 ) — Home equity lines of credit serviced by others (3) 39 2 2 — — Automobile 1,039 17 13 — 5 Student 1,675 31 31 5 — Credit cards — — — — — Other retail 57 2 1 (1 ) — Total retail 4,743 192 181 (2 ) 13 Total 4,771 $251 $262 $1 $16 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of 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 year ended December 31, 2013 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2013 and were paid off in full, charged off, or sold prior to December 31, 2013 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 126 $13 $13 134 $18 $18 Commercial real estate 11 7 7 3 1 1 Total commercial 137 20 20 137 19 19 Residential mortgages 200 32 33 46 5 6 Home equity loans 196 15 16 94 6 6 Home equity lines of credit 18 1 1 2,081 80 70 Home equity loans serviced by others (3) 31 2 2 5 — — Home equity lines of credit serviced by others (3) 3 — — 1 — — Automobile 238 2 2 2 — — Student — — — — — — Credit cards 2,729 15 15 — — — Other retail 21 — — — — — Total retail 3,436 67 69 2,229 91 82 Total 3,573 $87 $89 2,366 $110 $101 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 6 $1 $1 $— $1 Commercial real estate 1 — — (2 ) — Total commercial 7 1 1 (2 ) 1 Residential mortgages 430 64 63 5 2 Home equity loans 995 57 51 2 5 Home equity lines of credit 771 53 46 — 16 Home equity loans serviced by others (3) 269 12 10 — 3 Home equity lines of credit serviced by others (3) 43 2 1 — 1 Automobile 1,323 13 10 — 3 Student 2,620 48 47 — — Credit cards — — — — — Other retail 148 3 3 — 1 Total retail 6,599 252 231 7 31 Total 6,606 $253 $232 $5 $32 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of 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 year ended December 31, 2015 , 2014 and 2013 within 12 months of their modification date. For purposes of this table, a payment default is defined as being past due 90 days or more under the modified terms. Amounts represent the loan’s recorded investment at the time of payment default. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 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. Year Ended December 31, 2015 2014 2013 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 23 $2 37 $12 18 $1 Commercial real estate — — 3 1 3 1 Total commercial 23 2 40 13 21 2 Residential mortgages 168 21 301 35 526 60 Home equity loans 184 13 329 24 740 43 Home equity lines of credit 131 7 229 12 394 21 Home equity loans serviced by others (1) 43 1 60 2 187 3 Home equity lines of credit serviced by others (1) 22 1 20 — 42 2 Automobile 87 1 112 1 208 1 Student 171 3 355 7 885 17 Credit cards 455 3 579 3 548 3 Other retail 4 — 12 — 33 1 Total retail 1,265 50 1,997 84 3,563 151 Total 1,288 $52 2,037 $97 3,584 $153 (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: December 31, 2015 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products serviced by others Credit Cards Total High loan-to-value $649 $1,038 $785 $— $2,472 Interest only/negative amortization 1,110 — — — 1,110 Low introductory rate — 3 — 96 99 Multiple characteristics and other 14 — — — 14 Total $1,773 $1,041 $785 $96 $3,695 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 |
PREMISES, EQUIPMENT, AND SOFT44
PREMISES, EQUIPMENT, AND SOFTWARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of the carrying value of premises and equipment | A summary of the carrying value of premises and equipment follows: December 31, (dollars in millions) Useful Lives 2015 2014 Land and land improvements 15 years $25 $26 Buildings and leasehold improvements 7-40 years 634 607 Furniture, fixtures and equipment 5-15 years 1,667 1,613 Total premises and equipment, gross 2,326 2,246 Less: accumulated depreciation 1,731 1,651 Total premises and equipment, net $595 $595 |
Schedule of estimated future amortization expense for capitalized software assets | The estimated future amortization expense for capitalized software assets is as follows: Year (in millions) 2016 $142 2017 125 2018 104 2019 72 2020 43 Thereafter 129 Total (1) $615 (1) Excluded from this balance is $171 million of in-process software at December 31, 2015 . |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of aggregate minimum rental commitments | At December 31, 2015 , the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are as follows for the years ended December 31: (in millions) Operating Leases Capital Leases 2016 $190 $8 2017 167 7 2018 131 3 2019 85 2 2020 64 2 Thereafter 180 10 Total minimum lease payments $817 $32 Amounts representing interest N/A (9 ) Present value of net minimum lease payments N/A $23 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying value of goodwill for the year ended December 31, 2015 and 2014 were: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2013 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2015 $2,136 $4,740 $6,876 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 26 17 Amortization (37 ) (41 ) Carrying amount before valuation allowance 173 184 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (9 ) (5 ) Balance at end of period 9 18 Net carrying value of MSRs $164 $166 |
Servicing asset at amortized cost | Changes related to MSRs were as follows: As of and for the Year Ended (in millions) 2015 2014 MSRs: Balance as of January 1 $184 $208 Amount capitalized 26 17 Amortization (37 ) (41 ) Carrying amount before valuation allowance 173 184 Valuation allowance for servicing assets: Balance as of January 1 18 23 Valuation recovery (9 ) (5 ) Balance at end of period 9 18 Net carrying value of MSRs $164 $166 |
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: December 31, (dollars in millions) 2015 2014 Fair value $178 $179 Weighted average life (in years) 5.4 5.2 Weighted average constant prepayment rate 11.6% 12.4% Weighted average discount rate 9.7% 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: Year Ended December 31, 2015 2014 2013 Weighted average life (in years) 5.9 5.8 6.0 Weighted average constant prepayment rate 10.7% 11.7% 12.4% Weighted average discount rate 9.7% 10.3% 10.5% |
Schedule of the impact to fair value of an adverse change in key economic assumptions | December 31, (in millions) 2015 2014 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $5 $9 Decline in fair value from a 100 basis point decrease in interest rates $11 $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 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of the major components of deposits | The major components of deposits are as follows: December 31, (in millions) 2015 2014 Demand $27,649 $26,086 Checking with interest 17,921 16,394 Regular savings 8,218 7,824 Money market accounts 36,727 33,345 Term deposits 12,024 12,058 Total deposits $102,539 $95,707 |
Schedule of maturity distribution of term deposits | The maturity distribution of term deposits as of December 31, 2015 is as follows: Year (in millions) 2016 $9,994 2017 1,309 2018 428 2019 183 2020 104 2021 and thereafter 6 Total $12,024 |
Schedule of maturities of term deposits greater than $100,000 | The remaining maturities of these deposits are as follows: (in millions) Three months or less $3,136 After three months through six months 1,145 After six months through twelve months 1,329 After twelve months 675 Total term deposits $6,285 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | The following is a summary of the Company’s short-term borrowed funds: December 31, (in millions) 2015 2014 Federal funds purchased $— $574 Securities sold under agreements to repurchase 802 3,702 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,630 6,253 Total short-term borrowed funds $3,432 $10,529 Key data related to short-term borrowed funds is presented in the following table: As of and for the Year Ended December 31, (dollars in millions) 2015 2014 2013 Weighted-average interest rate at year-end: Federal funds purchased and securities sold under agreements to repurchase 0.15 % 0.14 % 0.09 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.44 0.26 0.20 Maximum amount outstanding at month-end during the year: Federal funds purchased and securities sold under agreements to repurchase $5,375 $7,022 $5,114 Other short-term borrowed funds (primarily current portion of FHLB advances) 7,004 7,702 2,251 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase $3,364 $5,699 $2,400 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,865 5,640 251 Weighted-average interest rate during the year: Federal funds purchased and securities sold under agreements to repurchase 0.22 % 0.12 % 0.31 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.28 0.25 0.44 |
Schedule of long-term borrowed funds | The following is a summary of the Company’s long-term borrowed funds: December 31, (in millions) 2015 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 4.691% fixed rate subordinated debt, due 2024 (1) — 334 4.153% fixed rate subordinated debt, due 2024 (1) (2) 250 333 4.023% fixed rate subordinated debt, due 2024 (1) (3) 331 333 4.082% fixed rate subordinated debt, due 2025 (1) (4) 331 334 4.350% fixed rate subordinated debt, due 2025 250 — 4.300% fixed rate subordinated debt, due 2025 750 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (5) (6) 749 750 2.300% senior unsecured notes, due 2018 (5) (7) 747 — 2.450% senior unsecured notes, due 2019 (5) (8) 752 746 Federal Home Loan advances due through 2033 5,018 772 Other 25 24 Total long-term borrowed funds $9,886 $4,642 (1) Borrowed funds with RBS. See Note 19 “Related Party Transactions and Significant Transactions with RBS” for further information. (2) Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. (3) $333 million principal balance of subordinated debt reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (4) $334 million principal balance of subordinated debt reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (5) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (6) $750 million principal balance of unsecured notes reflects the impact of $1 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (7) $750 million principal balance of unsecured notes reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “Derivatives” for further information. (8) $750 million principal balance of unsecured notes reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015 . See Note 16 “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 December 31, 2015 : Year (in millions) CFG Parent Company Banking Subsidiaries Consolidated 2016 or on demand $— $— $— 2017 — 5,764 5,764 2018 — 753 753 2019 — 753 753 2020 — 2 2 2021 and thereafter 2,595 19 2,614 Total $2,595 $7,291 $9,886 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Allocation of Plan Assets | The qualified plan’s allocation by asset category is as follows: Target Asset Allocation Actual Asset Allocation Asset Category 2015 2015 2014 Equity securities 45-55% 47.1 % 49.0 % Debt securities 40-50% 47.3 % 44.7 % Other 0-10% 5.6 % 6.3 % Total 100.0 % 100.0 % |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are summarized as follows: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2015 2014 (1) 2013 2015 2014 (1) 2013 Fair value of plan assets as of January 1 $923 $1,031 $998 $— $— $— Actual return (loss) on plan assets (41 ) 98 111 — — — Employer contributions 100 — — 9 9 8 Divestitures — (129 ) — — — — Benefits and administrative expenses paid (65 ) (77 ) (78 ) (9 ) (9 ) (8 ) Fair value of plan assets as of December 31 917 923 1,031 — — — Projected benefit obligation 977 1,093 1,026 103 117 107 Pension asset (obligation) ($60 ) ($170 ) $5 ($103 ) ($117 ) ($107 ) Accumulated benefit obligation $977 $1,093 $1,026 $103 $117 $107 (1) December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | The pre-tax amounts recognized (for the qualified and non-qualified plans) in AOCI are as follows: Year Ended December 31, (in millions) 2015 2014 (1) Net prior service credit $— $— Net actuarial loss 599 606 Total loss recognized in accumulated other comprehensive income $599 $606 (1) December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations (for the qualified and non-qualified plans) recognized in OCI include the following: Year Ended December 31, (in millions) 2015 2014 2013 Net periodic pension income ($7 ) ($8 ) ($3 ) Net actuarial (gain) loss 7 237 (174 ) Amortization of net actuarial loss (15 ) (10 ) (14 ) Divestiture — (35 ) — Total recognized in other comprehensive income (8 ) 192 (188 ) Total recognized in net periodic pension cost and other comprehensive income ($15 ) $184 ($191 ) |
Schedule of net periodic (income) cost | The following table presents the components of net periodic pension (income) cost for the Company's qualified and non-qualified plans: Year Ended December 31 Qualified Plan Non-Qualified Plan Total (in millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $3 $3 $3 $ — $— $— $3 $3 $3 Interest cost 44 47 48 4 5 5 48 52 53 Expected return on plan assets (74 ) (73 ) (73 ) — — — (74 ) (73 ) (73 ) Amortization of actuarial loss 13 9 13 2 1 1 15 10 14 Net periodic pension (income) cost ($14 ) ($14 ) ($9 ) $6 $6 $6 ($8 ) ($8 ) ($3 ) |
Schedule of Expected Benefit Payments | benefit payments for the qualified and non-qualified plans are as follows: (in millions) Expected benefit payments by fiscal year ended December 31, 2016 $61 December 31, 2017 62 December 31, 2018 62 December 31, 2019 63 December 31, 2020 64 December 31, 2021 - 2025 337 |
Schedule of Fair Value of Plan Assets | The following table presents qualified pension plan assets and liabilities measured at fair value (including gross derivative assets and liabilities, within the fair value hierarchy): Fair Value Measurements as of December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $4 $— $4 $— Mutual funds International equity funds 47 47 — — Equity funds 9 — 9 — Common and collective funds Global equities common and collective fund 220 — 220 — Balanced common and collective funds 196 — 196 — Fixed income common and collective fund 120 — 120 — Managed portfolio assets Cash and money market funds 4 — 4 — Fixed income mutual fund 20 — 20 — U.S. government obligations 35 — 35 — Non-U.S. government obligations — — — — Municipal obligations 1 — 1 — Corporate bonds 84 — 84 — Asset-backed securities 5 — 5 — Mortgage-backed securities 1 — 1 — Derivative assets - interest rate forwards 1 — 1 — Limited partnerships International equity fund 107 — 107 — International equity 95 — 95 — Total assets measured at fair value $949 $47 $902 $— Liabilities Derivative liabilities - interest rate forwards 1 — 1 — Derivative liabilities - credit default swaps 1 — 1 — Total liabilities measured at fair value $2 $— $2 $— The following table presents qualified pension plan assets and liabilities measured at fair value (including net derivative assets and liabilities, within the fair value hierarchy): Fair Value Measurements as of December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Cash and money market funds $18 $— $18 $— Mutual funds International equity funds 24 24 — — Income funds 39 — 39 — Common and collective funds Global equities common and collective funds 241 — 241 — Fixed income common and collective funds 305 — 305 — Managed portfolio Cash and money market funds (6 ) — (6 ) — Corporate bonds 85 — 85 — Municipal obligations 2 — 2 — U.S. government obligations 17 — 17 — Non-U.S. government obligations 2 — 2 — Derivative assets - credit default swaps 1 — 1 — Derivative liabilities - interest rate swaps (1 ) — (1 ) — Derivative liabilities - foreign currency futures (1 ) — (1 ) — Other 14 — 14 — Limited partnerships 183 — 183 — Total assets measured at fair value $923 $24 $899 $— |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The unfunded commitments, redemption frequency, and redemption notice period for those Plan investments that utilize net asset value to determine the fair value as of December 31, 2015 and 2014 , are as follows: Fair Value Estimated Using Net Asset Value per Share December 31, Unfunded Redemption Redemption Redemption Investment (dollars in millions) 2015 2014 Commitment Frequency Restrictions Notice Period Equity Mutual Fund (1) $9 $39 $— Daily None 1-7 days Common and Collective Funds: Global equities funds (2) 220 241 — Daily None 2-3 days Balanced funds (3) 196 — — Daily None 2-3 days Fixed income fund (4) 120 305 — Daily None 3 days Managed Portfolio - Fixed Income Mutual fund (5) 20 — — Daily None 1 days Limited Partnerships: International equity fund (6) 107 90 — Monthly None 3 days International equity (7) 95 84 — Daily None 10 days Offshore feeder fund (8) — 9 — Daily None 1-14 days Total $767 $768 $— (1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. (2) The global equities funds objective is to track the MSCI All Country World Index. (3) The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. (4) The fixed income fund seeks to outperform the Barclay’s Capital US Long Corporate Bond Index or similar benchmark. (5) The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. (6) The international equity fund seeks to medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. (7) The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. (8) The offshore feeder fund operates under a “master/feeder” structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fund”). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5% . The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. |
Qualified and Non-Qualified Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost | Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are as follows: As of and for the Year Ended December 31, 2015 2014 2013 Assumptions for benefit obligations Discount rate--qualified plan 4.640 % 4.125 % 5.00 % Discount rate--non-qualified plan 4.540 % 3.875 % 4.75 % Expected long-term rate of return on plan assets 7.500 % 7.50 % 7.50 % Assumptions for net periodic pension cost Discount rate--qualified plan 4.125 % 5.00/4.25% (1) 4.125 % Discount rate--non-qualified plan 3.875 % 4.75/4.00% (2) 4.00 % Expected long-term rate of return on plan assets 7.500 % 7.50 % 7.50 % (1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. (2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. |
Postretirement Benefit Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost | Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: For the Year Ended December 31, (dollars in millions) 2015 2014 Discount rate 3.500 % 4.625/3.875/3.75% (1) Rate of compensation increase N/A — % Ultimate health care cost trend rate 5.000 % 5.00 % Effect on accumulated postretirement benefit obligation One percent increase $— $— One percent decrease — — (1) 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.750% for September 1 - December 31, 2014 period. |
Schedule of Expected Benefit Payments | Expected future benefit payments for the postretirement benefit plan are as follows: (in millions) Expected benefit payments by fiscal year ended December 31, 2016 $1 December 31, 2017 1 December 31, 2018 1 December 31, 2019 1 December 31, 2020 1 December 31, 2021 - 2025 5 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Comprehensive Income Tax | Total income tax expense (benefit) was as follows: Year Ended December 31, (in millions) 2015 2014 2013 Income tax expense (benefit) $423 $403 ($42 ) Tax effect of changes in OCI (12 ) 154 (194 ) Total comprehensive income tax expense (benefit) $411 $557 ($236 ) |
Schedule of Components of Income Tax Expense (Benefit) | Components of income tax expense (benefit) are as follows: (in millions) Current Deferred Total Year Ended December 31, 2015 U.S. federal $162 $225 $387 State and local 12 24 36 Total $174 $249 $423 Year Ended December 31, 2014 U.S. federal $224 $145 $369 State and local 38 (4 ) 34 Total $262 $141 $403 Year Ended December 31, 2013 U.S. federal $3 ($47 ) ($44 ) State and local 8 (6 ) 2 Total $11 ($53 ) ($42 ) |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2015 , 2014 and 2013 as follows: Year Ended December 31, 2015 2014 2013 (dollars in millions) Amount Rate Amount Rate Amount Rate U.S. Federal income tax expense (benefit) and tax rate $442 35.0 % $444 35.0 % ($1,214 ) 35.0 % Increase (decrease) resulting from: Goodwill impairment — — — — 1,217 (35.1 ) State and local income taxes (net of federal benefit) 27 2.1 22 1.7 1 — Bank-owned life insurance (20 ) (1.6 ) (17 ) (1.3 ) (17 ) 0.5 Tax-exempt interest (17 ) (1.3 ) (15 ) (1.2 ) (13 ) 0.4 Tax credits (16 ) (1.2 ) (27 ) (2.1 ) (11 ) 0.3 Non-deductible expenses 8 0.6 — — — — Other (1 ) (0.1 ) (4 ) (0.3 ) (5 ) 0.1 Total income tax expense (benefit) and tax rate $423 33.5 % $403 31.8 % ($42 ) 1.2 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (in millions) 2015 2014 Deferred tax assets: Other comprehensive income $241 $232 Allowance for credit losses 465 456 Net operating loss carryforwards 137 155 Accrued expenses not currently deductible 135 170 Deferred income 40 45 Fair value marks 36 34 Other 5 1 Total deferred tax assets 1,059 1,093 Valuation allowance (123 ) (157 ) Deferred tax assets, net of valuation allowance 936 936 Deferred tax liabilities: Leasing transactions 882 825 Amortization of intangibles 455 380 Depreciation 213 164 Pension and other employee compensation plans 69 14 MSRs 47 46 Total deferred tax liabilities 1,666 1,429 Net deferred tax liability $730 $493 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (in millions) 2015 2014 2013 Balance at the beginning of the year, January 1 $72 $33 $34 Gross (decrease) increase for tax positions related to prior years (6 ) 60 — Decreases for tax positions as a result of the lapse of the statutes of limitations (3 ) (1 ) — Decreases for tax positions related to settlements with taxing authorities (1 ) (20 ) (1 ) Balance at end of year $62 $72 $33 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: December 31, 2015 December 31, 2014 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate swaps $16,750 $96 $50 $5,750 $24 $99 Derivatives not designated as hedging instruments: Interest rate swaps 33,719 540 455 31,848 589 501 Foreign exchange contracts 8,366 163 156 8,359 170 164 Other contracts 981 8 5 730 7 9 Total derivatives not designated as hedging instruments 711 616 766 674 Gross derivative fair values 807 666 790 773 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (178 ) (178 ) (161 ) (161 ) Less: Cash collateral applied (2) (4 ) (3 ) — — Total net derivative fair values presented in the Consolidated Balance Sheets (3) $625 $485 $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. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they tend to greatly overstate the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 3 “Securities” for further information |
Schedule of fair value hedges | The following table summarizes certain information related to the Company’s fair value hedges: The Effect of Fair Value Hedges on Net Income Amounts Recognized in Other Income for the Year Ended December 31, 2015 Year Ended December 31, 2014 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps ($2 ) $2 $— ($4 ) $4 $— |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table summarizes certain information related to the Company’s cash flow hedges: The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity Amounts Recognized for the Year Ended December 31, (in millions) 2015 2014 2013 Effective portion of gain (loss) recognized in OCI (1) $150 $334 ($59 ) Amounts reclassified from OCI to interest income (2) 82 72 56 Amounts reclassified from OCI to interest expense (2) (59 ) (99 ) (235 ) Amounts reclassified from OCI to net gain (3) — — (1 ) (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. (3) This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other net gains (losses) line item on the Consolidated Statements of Operations. |
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 Year Ended December 31, (in millions) 2015 2014 2013 Customer derivative contracts Customer interest rate contracts (1) $140 $240 $79 Customer foreign exchange contracts (1) (18 ) (59 ) 18 Residential loan commitments (2) (4 ) 6 (7 ) Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (106 ) (209 ) (30 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 19 58 (15 ) Forward sale contracts (2) 1 (3 ) 25 Total $32 $33 $70 (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) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: December 31, (in millions) 2015 2014 Commitment amount: Undrawn commitments to extend credit $56,524 $55,899 Financial standby letters of credit 2,010 2,315 Performance letters of credit 42 65 Commercial letters of credit 87 75 Marketing rights 47 51 Risk participation agreements 26 19 Residential mortgage loans sold with recourse 10 11 Total $58,746 $58,435 |
RELATED PARTY TRANSACTIONS AN54
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of inter-company borrowed funds | The following is a summary of borrowed funds from RBS: Interest Maturity December 31, (dollars in millions) Rate Date 2015 2014 Subordinated debt 5.158 % June 2023 $333 $333 4.771 % October 2023 — 333 4.691 % January 2024 — 334 4.153 % (1) July 2024 250 333 4.023 % October 2024 333 333 4.082 % January 2025 334 334 (1) Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. |
Schedule of related party transactions, recorded interest expense | The following table presents total interest expense recorded on subordinated debt with RBS: Year Ended December 31, (in millions) 2015 2014 2013 Interest expense on subordinated debt $76 $64 $16 |
Schedule of related party swap agreements | The following table presents a summary of these swap agreements: December 31, 2015 December 31, 2014 (dollars in millions) Notional Fixed Rates Maturity Date Notional Fixed Rates Maturity Date Receive-fixed swaps $6,700 0.77% to 2.04% 2017 - 2023 $4,750 1.66% to 2.04% 2019 - 2023 Pay-fixed swaps 3,500 1.96% to 4.30% 2016 - 2023 1,000 4.18% to 4.30% 2016 Total $10,200 $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: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party interest rate swap agreements on net interest income $12 ($27 ) ($146 ) |
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: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party interest rate swap and cap agreements on other income ($105 ) ($209 ) ($32 ) The effect of related party foreign exchange contracts on foreign exchange and trade finance fees 19 58 (15 ) |
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: Year Ended December 31, (in millions) 2015 2014 2013 The effect of related party service and referral fees, net of occupancy expense, on total fee income $10 $16 $26 The effect of related party service fees on outside services 11 22 20 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 December 31, 2014 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $268 $263 $5 $213 $206 $7 Commercial and commercial real estate loans held for sale, at fair value 57 57 — 43 43 — |
Assets and liabilities measured on recurring basis | The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $17,842 $— $17,842 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury and other 16 15 1 — Total securities available for sale 17,884 15 17,869 — Loans held for sale, at fair value: Residential loans held for sale 268 — 268 — Commercial loans held for sale 57 — 57 — Total loans held for sale, at fair value 325 — 325 — Derivative assets: Interest rate swaps 636 — 636 — Foreign exchange contracts 163 — 163 — Other contracts 8 — 8 — Total derivative assets 807 — 807 — Other investment securities, at fair value: Money market mutual fund 65 65 — — Other investments 5 — 5 — Total other investment securities, at fair value 70 65 5 — Total assets $19,086 $80 $19,006 $— Derivative liabilities: Interest rate swaps $505 $— $505 $— Foreign exchange contracts 156 — 156 — Other contracts 5 — 5 — Total derivative liabilities 666 — 666 — Total liabilities $666 $— $666 $— 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, at fair value: Residential loans held for sale 213 — 213 — Commercial loans held for sale 43 — 43 — Total loans held for sale, at fair value 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: Year Ended December 31, (in millions) 2015 2014 2013 Beginning as of January 1 $5 $5 $6 Purchases, issuances, sales and settlements: Purchases — — — Sales — — (4 ) Settlements — — 3 Net (losses) gains — — — Transfers from Level 3 to Level 2 (5 ) — — Balance as of December 31 $— $5 $5 Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 $— $— $— |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2015 2014 2013 Impaired collateral-dependent loans ($32 ) ($101 ) ($83 ) MSRs 9 5 47 Foreclosed assets (3 ) (3 ) (4 ) Goodwill impairment (1) — — (4,435 ) (1) In the year ended December 31, 2013 , Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion , resulting in an impairment charge of $4.4 billion . |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table present assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2015 December 31, 2014 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $60 $— $60 $— $102 $— $102 $— MSRs 178 — — 178 166 — — 166 Foreclosed assets 42 — 42 — 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 Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2015 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Securities held to maturity $5,258 $5,297 $— $— $5,258 $5,297 $— $— Other investment securities, at cost 863 863 — — 863 863 — — Other loans held for sale 40 40 — — — — 40 40 Loans and leases 99,042 99,026 — — 60 60 98,982 98,966 Financial Liabilities: Deposits 102,539 102,528 — — 102,539 102,528 — — Federal funds purchased and securities sold under agreements to repurchase 802 802 — — 802 802 — — Other short-term borrowed funds 2,630 2,630 — — 2,630 2,630 — — Long-term borrowed funds 9,886 9,837 — — 9,886 9,837 — — 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) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents capital and capital ratio information evidencing the Company’s transition from Basel I regulatory accounting as of December 31, 2014 to Basel III regulatory accounting as of December 31, 2015 . Basel I requirements did not include the common equity tier I capital ratio. Certain Basel III requirements are subject to phase-in through 2019, 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 FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (dollars in millions) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Basel III Common equity tier 1 capital (1) $13,389 11.7 % $5,134 4.5 % $7,415 6.5 % Tier 1 capital (2) 13,636 12.0 6,845 6.0 9,127 8.0 Total capital (3) 17,505 15.3 9,127 8.0 11,408 10.0 Tier 1 leverage (4) 13,636 10.5 5,218 4.0 6,523 5.0 As of December 31, 2014 Basel I Tier 1 common equity (1) $13,173 12.4 % Not Applicable Not Applicable Not Applicable Not Applicable Tier 1 capital (2) 13,173 12.4 $4,239 4.0 % $6,358 6.0 % Total capital (3) 16,781 15.8 8,477 8.0 10,596 10.0 Tier 1 leverage (4) 13,173 10.6 4,982 4.0 6,227 5.0 (1) CET1 under Basel III replaced the concept of tier 1 common capital that existed under Basel I effective January 1, 2015. “Common equity tier 1 capital ratio” as of December 31, 2015 represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 common capital ratio” reported prior to January 1, 2015, represented tier 1 common equity divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (2) “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 capital ratio” reported prior to January 1, 2015, represented tier 1 capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. The “Total capital ratio” reported prior to January 1, 2015, represented total capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. The “tier 1 leverage ratio” reported prior to January 1, 2015, represented tier 1 capital divided by quarterly average total assets as defined under the Basel I general risk-based capital rule. |
EXIT COSTS AND RESTRUCTURING 57
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and related costs | The following table includes the activity in the exit costs and restructuring reserves: (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Reserve balance as of January 1, 2013 $3 $27 $— $30 Additions 6 22 3 31 Reversals (1 ) (4 ) — (5 ) Utilization (6 ) (21 ) (3 ) (30 ) Reserve balance as of December 31, 2013 2 24 — 26 Additions 43 24 57 124 Reversals (1 ) (5 ) (4 ) (10 ) Utilization (21 ) (25 ) (50 ) (96 ) Reserve balance as of December 31, 2014 23 18 3 44 Additions 5 18 8 31 Reversals (4 ) (1 ) — (5 ) Utilization (12 ) (19 ) (6 ) (37 ) Reserve balance as of December 31, 2015 $12 $16 $5 $33 |
RECLASSIFICATIONS OUT OF ACCU58
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income taxes, of each component of AOCI: (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI Balance at January 1, 2013 ($240 ) $306 ($378 ) ($312 ) Other comprehensive loss before reclassifications (172 ) (285 ) — (457 ) Other than temporary impairment not recognized in earnings on securities — (26 ) — (26 ) Amounts reclassified from other comprehensive income 114 (86 ) 119 147 Net other comprehensive (loss) income (58 ) (397 ) 119 (336 ) Balance at December 31, 2013 ($298 ) ($91 ) ($259 ) ($648 ) Other comprehensive income before reclassifications 212 198 — 410 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (loss) 17 (11 ) (118 ) (112 ) Net other comprehensive income 229 165 (118 ) 276 Balance at December 31, 2014 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income (loss) before reclassifications 93 (66 ) — 27 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive (loss) income (14 ) (14 ) 8 (20 ) Net other comprehensive (loss) income 79 (102 ) 8 (15 ) Balance at December 31, 2015 $10 ($28 ) ($369 ) ($387 ) |
Schedule of reclassification out of accumulated other comprehensive income | The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2015 2014 2013 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $82 $72 $56 Interest income (59 ) (99 ) (235 ) Interest expense — — (1 ) Other income 23 (27 ) (180 ) Income (loss) before income tax expense (benefit) 9 (10 ) (66 ) Income tax expense (benefit) $14 ($17 ) ($114 ) Net income (loss) Reclassification of net securities gains (losses) to net income: $29 $28 $144 Securities gains, net (7 ) (10 ) (8 ) Net securities impairment losses recognized in earnings 22 18 136 Income (loss) before income tax expense (benefit) 8 7 50 Income tax expense (benefit) $14 $11 $86 Net income (loss) Reclassification of changes related to defined benefit pension plans: ($8 ) $192 ($190 ) Salaries and employee benefits (8 ) 192 (190 ) Income (loss) before income tax expense (benefit) — 74 (71 ) Income tax expense (benefit) ($8 ) $118 ($119 ) Net income (loss) Total reclassification gains (losses) $20 $112 ($147 ) Net income (loss) The following table presents the effects to net income of the amounts reclassified out of AOCI: Year Ended December 31, (in millions) 2015 2014 2013 Net interest income (includes $23, ($27) and ($179) of AOCI reclassifications, respectively) $3,402 $3,301 $3,058 Provision for credit losses 302 319 479 Noninterest income (includes $22, $18 and $135 of AOCI reclassifications, respectively) 1,422 1,678 1,632 Noninterest expense (includes $8, ($192) and $190 of AOCI reclassifications, respectively) 3,259 3,392 7,679 Income (loss) before income tax expense (benefit) 1,263 1,268 (3,468 ) Income tax expense (benefit) (includes $17, $71 and ($87) income tax net expense (benefit) from reclassification items, respectively) 423 403 (42 ) Net income (loss) $840 $865 ($3,426 ) |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Year Ended December 31, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,198 $1,162 $42 $3,402 Noninterest income 910 415 97 1,422 Total revenue 3,108 1,577 139 4,824 Noninterest expense 2,456 709 94 3,259 Profit before provision for credit losses 652 868 45 1,565 Provision for credit losses 252 (13 ) 63 302 Income before income tax expense (benefit) 400 881 (18 ) 1,263 Income tax expense (benefit) 138 302 (17 ) 423 Net income (loss) $262 $579 ($1 ) $840 Total average assets $52,848 $42,800 $39,422 $135,070 As of and for the Year Ended December 31, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,151 $1,073 $77 $3,301 Noninterest income 899 429 350 1,678 Total revenue 3,050 1,502 427 4,979 Noninterest expense 2,513 652 227 3,392 Profit before provision for credit losses 537 850 200 1,587 Provision for credit losses 259 (6 ) 66 319 Income before income tax expense 278 856 134 1,268 Income tax expense 96 295 12 403 Net income 182 561 122 865 Total average assets $48,939 $38,483 $40,202 $127,624 As of and for the Year Ended December 31, 2013 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income (expense) $2,176 $1,031 ($149 ) $3,058 Noninterest income 1,025 389 218 1,632 Total revenue 3,201 1,420 69 4,690 Noninterest expense 2,522 635 4,522 7,679 Profit (loss) before provision for credit losses 679 785 (4,453 ) (2,989 ) Provision for credit losses 308 (7 ) 178 479 Income (loss) before income tax expense (benefit) 371 792 (4,631 ) (3,468 ) Income tax expense (benefit) 129 278 (449 ) (42 ) Net income (loss) 242 514 (4,182 ) (3,426 ) Total average assets $46,465 $35,229 $39,172 $120,866 |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Citizens Share Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following tables summarize the activity related to the Company’s share-based plans (excluding the ESPP): Year Ended December 31, 2015 2014 CFG Share Awards Shares Weighted Average Grant Price Shares Weighted Average Grant Price Nonvested, January 1 5,595,882 $21.52 — $— Conversion to CFG Shares — — 5,774,504 21.50 Granted 1,315,572 25.18 209,099 24.87 Vested (2,496,092 ) 22.15 (161,067 ) 25.07 Forfeited (987,232 ) 21.58 (226,654 ) 21.50 Nonvested, December 31 3,428,130 $22.43 5,595,882 $21.52 |
RBS Share Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options, Activity | Year Ended December 31, 2014 2013 RBS Share Awards Shares Underlying Awards Weighted Average Grant Price Shares Underlying Awards Weighted Average Grant Price Nonvested, January 1 19,778,967 $5.31 22,865,810 $6.14 Granted 9,627,635 5.48 6,363,919 4.66 Vested (6,040,806 ) 6.14 (4,208,789 ) 6.68 Forfeited (3,975,044 ) 6.73 (5,241,973 ) 7.03 Conversion to CFG Shares (19,390,752 ) 4.84 — — Nonvested, December 31 — $— 19,778,967 $5.31 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Year Ended December 31, (dollars in millions, except share and per-share data) 2015 2014 2013 Numerator (basic and diluted): Net income (loss) $840 $865 ($3,426 ) Less: Preferred stock dividends 7 — — Net income (loss) available to common stockholders $833 $865 ($3,426 ) Denominator: Weighted-average common shares outstanding - basic 535,599,731 556,674,146 559,998,324 Dilutive common shares: share-based awards 2,621,167 1,050,790 — Weighted-average common shares outstanding - diluted 538,220,898 557,724,936 559,998,324 Earnings (loss) per common share: Basic $1.55 $1.55 ($6.12 ) Diluted 1.55 1.55 (6.12 ) |
PARENT COMPANY ONLY FINANCIALS
PARENT COMPANY ONLY FINANCIALS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (in millions) 2015 2014 2013 OPERATING INCOME: Income from consolidated bank subsidiaries and associated banks, excluding equity in undistributed income: Dividends from banking subsidiaries $345 $595 $210 Interest 54 29 13 Management and service fees 20 21 26 Securities gains 3 — — All other operating income 4 5 2 Total operating income 426 650 251 OPERATING EXPENSE: Salaries and employee benefits 15 63 38 Interest expense 108 80 24 All other expenses 38 123 43 Total operating expense 161 266 105 Income before taxes and undistributed income 265 384 146 Applicable income taxes (29 ) (77 ) (22 ) Income before undistributed income of subsidiaries and associated companies 294 461 168 Equity in undistributed income (losses) of subsidiaries and associated companies: Bank 543 402 (3,595 ) Nonbank 3 2 1 Net income (loss) $840 $865 ($3,426 ) Other comprehensive income (loss), net of income taxes: Net pension plan activity arising during the period $1 $8 $17 Net unrealized derivative instrument gains arising during the period 2 — 1 Net unrealized securities (losses) gains arising during the period (2 ) 1 — Other comprehensive income activity of the Parent Company Only, net of income taxes 1 9 18 Other comprehensive (loss) income activity of Bank subsidiaries, net of income taxes (16 ) 267 (354 ) Total other comprehensive (loss) income, net of income taxes (15 ) 276 (336 ) Total comprehensive income (loss) $825 $1,141 ($3,762 ) |
Condensed Balance Sheets | Condensed Balance Sheets (in millions) December 31, 2015 December 31, 2014 ASSETS: Cash and due from banks $531 $280 Loans and advances to: Bank subsidiaries 1,725 1,685 Investments in subsidiaries: Bank subsidiaries 19,865 19,512 Nonbank subsidiaries 54 72 Balances due from RBS 6 — Other assets 154 214 TOTAL ASSETS $22,335 $21,763 LIABILITIES: Long-term debt due to: Unaffiliated companies $1,345 $350 RBS 1,250 2,000 Balances due to RBS 3 2 Balances due to nonbank subsidiaries 1 — Other liabilities 90 143 TOTAL LIABILITIES 2,689 2,495 TOTAL STOCKHOLDERS’ EQUITY 19,646 19,268 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $22,335 $21,763 |
Condensed Cash Flow Statements | Condensed Cash Flow Statements Year Ended December 31, (in millions) 2015 2014 2013 OPERATING ACTIVITIES Net income (loss) $840 $865 ($3,426 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes 49 27 (11 ) Gain on sales of assets (3 ) — — Equity in undistributed (earnings) losses of subsidiaries (546 ) (404 ) 3,594 Net change in other liabilities (48 ) 18 7 Net change in other assets (16 ) (74 ) 15 Other operating, net 3 17 1 Total adjustments (561 ) (416 ) 3,606 Net cash provided by operating activities 279 449 180 INVESTING ACTIVITIES Proceeds from sales of securities available for sale 8 — — Payments for investments in and advances to subsidiaries (215 ) (1,470 ) (220 ) Sale or repayment of investments in and advances to subsidiaries 376 945 315 Other investing, net — (11 ) (1 ) Net cash (used) provided by investing activities 169 (536 ) 94 FINANCING ACTIVITIES Repayment of advances from subsidiaries — — (289 ) Proceeds from issuance of long-term debt 1,000 1,000 1,000 Repayments of long-term debt (750 ) — — Proceeds from issuance of common stock 27 13 — Repurchase of common stock (500 ) (334 ) — Proceeds from issuance of preferred stock 247 — — Dividends paid (221 ) (806 ) (1,185 ) Net cash used by financing activities (197 ) (127 ) (474 ) Net increase (decrease) in cash and due from banks 251 (214 ) (200 ) Cash and due from banks at beginning of year 280 494 694 Cash and due from banks at end of year $531 $280 $494 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2015 2014 2013 Deposit insurance $115 $95 $85 Promotional expense 101 86 76 Settlements and operating losses 43 89 51 Postage and delivery 46 48 60 Other 225 255 256 Other operating expense $530 $573 $528 |
SIGNIFICANT ACCOUNTING POLICI64
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | Aug. 22, 2014 | Dec. 31, 2015USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Stock split | 165,582 | |
Loan analysis threshold | $ 3 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | |||
Interest-bearing cash and due from banks | $ 1,986 | $ 2,105 | |
Interest rate on FRB balances | 0.50% | ||
Interest earned on FRB balances | $ 4 | $ 5 | $ 5 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Securities impairment | $ 7,000,000 | $ 10,000,000 | $ 8,000,000 | |
Impaired debt securities sold | 0 | 0 | 0 | |
Pretax non-credit related losses were deferred in OCI | 36,000,000 | 35,000,000 | 41,000,000 | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gain recognized on sale of held-to-maturity security | 2,000,000 | |||
Value of held-to-maturity security sold | 73,000,000 | |||
Available-for-sale Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative credit losses recognized in earnings | 66,000,000 | 62,000,000 | 56,000,000 | $ 55,000,000 |
Reductions due to increases in cash flow expectations on impaired securities | 3,000,000 | 4,000,000 | 7,000,000 | |
Held-to-maturity Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative credit losses recognized in earnings | 0 | 0 | 0 | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Securitizations of Loans Held-for-sale | $ 3,000,000 | $ 18,000,000 | $ 106,000,000 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Securities Available-for-sale, Amortized Cost | $ 17,831 | $ 18,433 | |
Securities Available-for-sale, Gross Unrealized Gains | 157 | 308 | |
Securities Available-for-sale, Gross Unrealized Losses | (104) | (85) | |
Securities Available-for-sale, Fair Value | [1] | 17,884 | 18,656 |
Securities Held-to-maturity, Amortized Cost | [1] | 5,258 | 5,148 |
Securities Held-to-maturity, Gross Unrealized Gain | 50 | 76 | |
Securities Held-to-maturity, Gross Unrealized Losses | (11) | (31) | |
Securities held-to-maturity, Fair Value | 5,297 | 5,193 | |
Money market mutual fund, Amortized Cost | 65 | 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 | 65 | 28 | |
Total other investment securities, at fair value, Amortized Cost | 70 | 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 | 70 | 33 | |
Total other investment securities, at cost | 863 | 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 | 863 | 867 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 16 | 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 | 16 | 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 | 17,234 | 17,683 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 153 | 301 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (67) | (50) | |
Debt Securities Available-for-sale, Fair Value | 17,320 | 17,934 | |
Securities Held-to-maturity, Amortized Cost | 4,105 | 3,728 | |
Securities Held-to-maturity, Gross Unrealized Gain | 27 | 22 | |
Securities Held-to-maturity, Gross Unrealized Losses | (11) | (31) | |
Securities held-to-maturity, Fair Value | 4,121 | 3,719 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 555 | 703 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 4 | 4 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (37) | (35) | |
Debt Securities Available-for-sale, Fair Value | 522 | 672 | |
Securities Held-to-maturity, Amortized Cost | 1,153 | 1,420 | |
Securities Held-to-maturity, Gross Unrealized Gain | 23 | 54 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Securities held-to-maturity, Fair Value | 1,176 | 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 | 17,789 | 18,386 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 157 | 305 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (104) | (85) | |
Debt Securities Available-for-sale, Fair Value | 17,842 | 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 | 17,814 | 18,411 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 157 | 305 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (104) | (85) | |
Debt Securities Available-for-sale, Fair Value | 17,867 | 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 | |
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 | 395 | 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 | $ 395 | $ 390 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Other than tempora
SECURITIES - Other than temporary impairment recognized in earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total other-than-temporary impairment losses | $ (43) | $ (45) | $ (49) |
Portions of loss recognized in other comprehensive income (before taxes) | 36 | 35 | 41 |
Net securities impairment losses recognized in earnings | $ (7) | $ (10) | $ (8) |
SECURITIES - Schedule of Inve69
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Dec. 31, 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 | 166 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 7,456 | $ 3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (51) | $ (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 | $ 1,180 | $ 2,173 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (64) | $ (90) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 222 | 151 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 8,636 | $ 5,535 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (115) | $ (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 |
U.S. Treasury and other | ||
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 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 15 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ 0 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 0 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 0 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ 0 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 1 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 15 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ 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 | 162 | 75 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 7,423 | $ 3,282 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (51) | $ (24) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 36 | 52 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 819 | $ 1,766 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (27) | $ (57) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 198 | 127 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 8,242 | $ 5,048 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (78) | $ (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 | 2 | 6 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 9 | $ 80 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ 0 | $ (2) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 20 | 17 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 361 | $ 397 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (37) | $ (33) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 22 | 23 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 370 | $ 477 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (37) | $ (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 | 164 | 81 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 7,432 | $ 3,362 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ (51) | $ (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 | $ 1,180 | $ 2,163 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (64) | $ (90) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 220 | 150 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 8,612 | $ 5,525 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (115) | $ (116) |
SECURITIES - Schedule of Cumula
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Cumulative balance at beginning of period | $ 62 | $ 56 | $ 55 |
Credit impairments recognized in earnings on securities that have been previously impaired | 7 | 10 | 8 |
Reductions due to increases in cash flow expectations on impaired securities | (3) | (4) | (7) |
Cumulative balance at end of period | $ 66 | $ 62 | $ 56 |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Dec. 31, 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 | $ 19 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 120 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,837 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,838 |
Amortized Cost, Debt securities available for sale, Total | 17,814 |
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 | 5,258 |
Amortized Cost, Debt securities held to maturity, Total | 5,258 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 19 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 120 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,837 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,096 |
Total amortized cost of debt securities, Total | 23,072 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 19 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 124 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,849 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,875 |
Fair Value, Debt securities available for sale, Total | 17,867 |
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 | 5,297 |
Fair Value, Debt securities held to maturity, Total | 5,297 |
Total fair value of debt securities, Maturity of 1 Year or Less | 19 |
Total fair value of debt securities, Maturity of 1-5 Years | 124 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,849 |
Total fair value of debt securities, Maturity After 10 Years | 21,172 |
Total fair value of debt securities, Total | 23,164 |
U.S. Treasury and other | |
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 | 1 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 16 |
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 | 1 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 16 |
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 | 4 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 52 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,833 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,345 |
Amortized Cost, Debt securities available for sale, Total | 17,234 |
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 | 4,105 |
Amortized Cost, Debt securities held to maturity, Total | 4,105 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 4 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 54 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,845 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 15,417 |
Fair Value, Debt securities available for sale, Total | 17,320 |
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 | 4,121 |
Fair Value, Debt securities held to maturity, Total | 4,121 |
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 | 68 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 3 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 484 |
Amortized Cost, Debt securities available for sale, Total | 555 |
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 | 1,153 |
Amortized Cost, Debt securities held to maturity, Total | 1,153 |
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 | 70 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 3 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 449 |
Fair Value, Debt securities available for sale, Total | 522 |
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 | 1,176 |
Fair Value, Debt securities held to maturity, Total | $ 1,176 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | |||
Taxable | $ 621 | $ 619 | $ 477 |
Non-taxable | 0 | 0 | 0 |
Interest-bearing cash and due from banks and deposits in banks | 5 | 5 | 11 |
Total interest income from investment securities and interest-bearing deposits in banks | 626 | 624 | 488 |
Gain (Loss) on Sale of Investments [Abstract] | |||
Gains on sale of debt securities | 41 | 33 | 144 |
Losses on sale of debt securities | (12) | (5) | 0 |
Debt securities gains, net | 29 | 28 | 144 |
Equity securities gains | $ 3 | $ 0 | $ 0 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 805 | $ 3,650 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,163 | 1,355 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,579 | 3,453 |
Pledged against repurchase agreements, Fair Value | 808 | 3,701 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,186 | 1,407 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 3,610 | $ 3,520 |
SECURITIES - Schedule of Balanc
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities purchased under agreements to resell, gross | $ 500 | $ 0 |
Securities purchased under agreements to resell, offset | 500 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Securities sold under agreements to repurchase, gross | (500) | (2,600) |
Securities sold under agreements to repurchase, offset | 500 | 0 |
Securities sold under agreements to repurchase, net | $ 0 | $ (2,600) |
SECURITIES - Schedule of Secu75
SECURITIES - Schedule of Securities Under Agreements to Repurchase or Resell Remaining Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | $ 500 | $ 0 |
Securities sold under agreements to repurchase | (500) | |
Mortgage-backed securities - Agency | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 500 | |
Securities sold under agreements to repurchase | (500) | |
Overnight and Continuous | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | 0 | |
Overnight and Continuous | Mortgage-backed securities - Agency | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | 0 | |
Up to 30 Days | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 500 | |
Securities sold under agreements to repurchase | (500) | |
Up to 30 Days | Mortgage-backed securities - Agency | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 500 | |
Securities sold under agreements to repurchase | (500) | |
30-90 Days | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | 0 | |
30-90 Days | Mortgage-backed securities - Agency | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | 0 | |
Greater Than 90 Days | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | 0 | |
Greater Than 90 Days | Mortgage-backed securities - Agency | ||
Assets Under Agreements to Repurchase or Resell | ||
Securities purchased under agreements to resell, gross | 0 | |
Securities sold under agreements to repurchase | $ 0 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 325 | $ 256 | |
Other loans held for sale | 40 | 25 | |
Pre-tax income on leveraged leases | 2 | 2 | $ 3 |
Income tax expense on income on leveraged leases | 1 | 1 | $ 1 |
Retail branches | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | 1,000 | ||
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged as collateral for FHLB borrowed funds | 23,200 | 22,000 | |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 15,900 | 11,800 | |
Commercial loan syndication | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other loans held for sale | 40 | 25 | |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 1,300 | 1,700 | |
Residential portfolio segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 1,100 | 1,900 | |
Mortgage loans sold | 273 | 126 | |
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 957 | 59 | |
Loans sold during the period | 357 | ||
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | 41 | ||
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans sold | 401 | ||
Loans sold during the period | 301 | ||
Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 325 | 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 | 268 | 213 | |
Commercial real estate loans held for sale | Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 57 | $ 43 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | $ 46,214 | $ 43,226 | |
Loans and leases retail | 52,828 | 50,184 | |
Loans and leases | 99,042 | 93,410 | |
Loans held for sale | 325 | 256 | |
Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans serviced for others by the Company's subsidiaries | 17,600 | 17,900 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 33,264 | 31,431 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 8,971 | 7,809 | |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 3,979 | 3,986 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 13,318 | 11,832 | |
Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 2,557 | 3,424 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 14,674 | 15,423 | |
Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 986 | 1,228 |
Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 389 | 550 |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 13,828 | 12,706 | |
Student | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 4,359 | 2,256 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 1,634 | 1,693 | |
Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 1,083 | 1,072 | |
Total Loans and Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [2],[3] | 99,042 | 93,410 |
Residential mortgage and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 365 | $ 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 $365 million and $281 million as of December 31, 2015 and 2014, respectively. | ||
[3] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.9 billion at December 31, 2015 and 2014, respectively. |
LOANS AND LEASES - Summary of I
LOANS AND LEASES - Summary of Investments in Leases (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total leases | $ 46,214 | $ 43,226 |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Direct financing leases | 3,898 | 3,873 |
Leveraged leases | 81 | 113 |
Total leases | $ 3,979 | $ 3,986 |
LOANS AND LEASES - Components o
LOANS AND LEASES - Components of Investments in Leases (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | $ 3,195 | |
Total leases | 46,214 | $ 43,226 |
Finance Leases Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | 3,195 | 3,324 |
Estimated residual value of leased equipment (non-guaranteed) | 1,157 | 1,059 |
Initial direct costs | 22 | 22 |
Unearned income on minimum lease rentals and estimated residual value of leased equipment | (395) | (419) |
Total leases | $ 3,979 | $ 3,986 |
LOANS AND LEASES - Future Minim
LOANS AND LEASES - Future Minimum Payments Receivable (Details) $ in Millions | Dec. 31, 2015USD ($) |
Receivables [Abstract] | |
2,016 | $ 707 |
2,017 | 588 |
2,018 | 528 |
2,019 | 445 |
2,020 | 327 |
Thereafter | 600 |
Total | $ 3,195 |
ALLOWANCE FOR CREDIT LOSSES, 81
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Modifications [Line Items] | |||
Mortgage loans collateralized by OREO | $ 257 | ||
Larger balance commercial loans minimum balance (greater than) | 3 | $ 3 | |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 15 | $ 53 | |
High loan to value criteria (exceeds) | 90.00% | 90.00% | |
Total commercial | |||
Financing Receivable, Modifications [Line Items] | |||
TDR balance | $ 155 | $ 176 | |
Total retail | |||
Financing Receivable, Modifications [Line Items] | |||
TDR balance | $ 1,200 | $ 1,200 | |
Allowance for loan and lease losses | |||
Financing Receivable, Modifications [Line Items] | |||
Loss emergence period change | $ 0 | ||
Allowance for loan and lease losses | Retail | |||
Financing Receivable, Modifications [Line Items] | |||
Loss emergence period change | $ 96 |
ALLOWANCE FOR CREDIT LOSSES, 82
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 302 | $ 319 | $ 479 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,216 | 1,195 | |
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 | 1,255 |
Charge-offs | (480) | (493) | (703) |
Recoveries | 196 | 170 | 202 |
Net recoveries (charge-offs) | (284) | (323) | (501) |
Sales/Other | (13) | ||
Provision charged to income | 305 | 297 | 480 |
Transfer of unallocated reserve to qualitative reserve | 0 | ||
Loss emergence period change | 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,216 | 1,195 | 1,221 |
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 | 509 |
Charge-offs | (36) | (43) | (108) |
Recoveries | 49 | 58 | 87 |
Net recoveries (charge-offs) | 13 | 15 | (21) |
Sales/Other | (6) | ||
Provision charged to income | 39 | 31 | (19) |
Transfer of unallocated reserve to qualitative reserve | 35 | ||
Loss emergence period change | 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 596 | 544 | 498 |
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 | 657 |
Charge-offs | (444) | (450) | (595) |
Recoveries | 147 | 112 | 115 |
Net recoveries (charge-offs) | (297) | (338) | (480) |
Sales/Other | (6) | ||
Provision charged to income | 266 | 266 | 396 |
Transfer of unallocated reserve to qualitative reserve | 60 | ||
Loss emergence period change | 96 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 620 | 651 | 723 |
Allowance for loan and lease losses | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 89 | |
Charge-offs | 0 | ||
Recoveries | 0 | ||
Net recoveries (charge-offs) | 0 | ||
Sales/Other | (1) | ||
Provision charged to income | 103 | ||
Transfer of unallocated reserve to qualitative reserve | (95) | ||
Loss emergence period change | (96) | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | ||
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 | 40 |
Credit for unfunded lending commitments | (3) | 22 | (1) |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 58 | 61 | 39 |
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 | 40 |
Credit for unfunded lending commitments | (3) | 22 | (1) |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 58 | 61 | 39 |
Reserve for unfunded lending commitments | Retail | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 0 | 0 |
Credit for unfunded lending commitments | 0 | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 0 | 0 |
Reserve for unfunded lending commitments | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 0 | |
Credit for unfunded lending commitments | 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 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, Beginning balance | 1,256 | 1,260 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,274 | 1,256 | 1,260 |
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, Beginning balance | 605 | 537 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 654 | 605 | 537 |
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, Beginning balance | 651 | 723 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 620 | 651 | 723 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 0 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 83
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - Loans and Leases - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,383 | $ 1,413 |
Formula-based evaluation | 97,659 | 91,997 |
Total | 99,042 | 93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 218 | 205 |
Formula-based evaluation | 45,996 | 43,021 |
Total | 46,214 | 43,226 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 1,165 | 1,208 |
Formula-based evaluation | 51,663 | 48,976 |
Total | $ 52,828 | $ 50,184 |
ALLOWANCE FOR CREDIT LOSSES, 84
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 137 | $ 129 |
Formula-based evaluation | 1,137 | 1,127 |
Allowance for credit losses | 1,274 | 1,256 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 36 | 20 |
Formula-based evaluation | 618 | 585 |
Allowance for credit losses | 654 | 605 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 101 | 109 |
Formula-based evaluation | 519 | 542 |
Allowance for credit losses | $ 620 | $ 651 |
ALLOWANCE FOR CREDIT LOSSES, 85
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 99,042 | $ 93,410 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,214 | 43,226 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 33,264 | 31,431 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,971 | 7,809 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,979 | 3,986 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 43,606 | 41,300 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 31,276 | 30,022 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,450 | 7,354 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,880 | 3,924 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,238 | 1,217 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 911 | 876 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 272 | 329 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 55 | 12 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,217 | 538 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,002 | 427 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 171 | 61 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 44 | 50 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 153 | 171 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 75 | 106 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 78 | 65 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 86
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) - Loans and Leases - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total | $ 99,042 | $ 93,410 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 12,905 | 11,352 | |
Total | 13,318 | 11,832 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,245 | 2,997 | |
Total | 2,557 | 3,424 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 13,982 | 14,705 | |
Total | 14,674 | 15,423 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 886 | 1,101 |
Total | [1] | 986 | 1,228 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 296 | 455 |
Total | [1] | 389 | 550 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 12,670 | 11,839 | |
Total | 13,828 | 12,706 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 4,175 | 2,106 | |
Total | 4,359 | 2,256 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,554 | 1,615 | |
Total | 1,634 | 1,693 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,013 | 985 | |
Total | 1,083 | 1,072 | |
Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 49,726 | 47,155 | |
Total | 52,828 | 50,184 | |
Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 97 | 114 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 164 | 222 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 407 | 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] | 60 | 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] | 48 | 66 |
Financing Receivables, 1 to 29 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 964 | 758 | |
Financing Receivables, 1 to 29 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 113 | 108 | |
Financing Receivables, 1 to 29 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 39 | |
Financing Receivables, 1 to 29 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 53 | 65 | |
Financing Receivables, 1 to 29 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,950 | 1,897 | |
Financing Receivables 30 To 89 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 70 | 97 | |
Financing Receivables 30 To 89 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 60 | |
Financing Receivables 30 To 89 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 80 | 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] | 20 | 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] | 16 | 10 |
Financing Receivables 30 To 89 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 159 | 93 | |
Financing Receivables 30 To 89 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 30 | 25 | |
Financing Receivables 30 To 89 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 20 | 22 | |
Financing Receivables 30 To 89 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12 | 18 | |
Financing Receivables 30 To 89 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 451 | 424 | |
Financing Receivables 90 Days or More Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 246 | 269 | |
Financing Receivables 90 Days or More Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 104 | 145 | |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 205 | 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] | 20 | 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] | 29 | 19 |
Financing Receivables 90 Days or More Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 35 | 16 | |
Financing Receivables 90 Days or More Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 41 | 17 | |
Financing Receivables 90 Days or More Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 16 | 17 | |
Financing Receivables 90 Days or More Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5 | 4 | |
Financing Receivables 90 Days or More Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 701 | $ 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, 87
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | $ 1,051 | $ 1,093 | |
Accruing and 90 Days or More Delinquent | 9 | 8 | |
Total Nonperforming Loans and Leases | 1,060 | 1,101 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 147 | 163 | |
Accruing and 90 Days or More Delinquent | 1 | 1 | |
Total Nonperforming Loans and Leases | 148 | 164 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 70 | 113 | |
Accruing and 90 Days or More Delinquent | 1 | 1 | |
Total Nonperforming Loans and Leases | 71 | 114 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 77 | 50 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 77 | 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 | 904 | 930 | |
Accruing and 90 Days or More Delinquent | 8 | 7 | |
Total Nonperforming Loans and Leases | 912 | 937 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 331 | 345 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 331 | 345 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 135 | 203 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 135 | 203 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 272 | 257 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 272 | 257 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | [1] | 38 | 47 |
Accruing and 90 Days or More Delinquent | [1] | 0 | 0 |
Total Nonperforming Loans and Leases | [1] | 38 | 47 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | [1] | 32 | 25 |
Accruing and 90 Days or More Delinquent | [1] | 0 | 0 |
Total Nonperforming Loans and Leases | [1] | 32 | 25 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 42 | 21 | |
Accruing and 90 Days or More Delinquent | 0 | 0 | |
Total Nonperforming Loans and Leases | 42 | 21 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 35 | 11 | |
Accruing and 90 Days or More Delinquent | 6 | 6 | |
Total Nonperforming Loans and Leases | 41 | 17 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 16 | 16 | |
Accruing and 90 Days or More Delinquent | 0 | 1 | |
Total Nonperforming Loans and Leases | 16 | 17 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccruing | 3 | 5 | |
Accruing and 90 Days or More Delinquent | 2 | 0 | |
Total Nonperforming Loans and Leases | $ 5 | $ 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, 88
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 46 | $ 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 | $ 45 | $ 39 |
ALLOWANCE FOR CREDIT LOSSES, 89
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 1.07% | 1.18% |
Nonperforming assets as a percentage of total assets | 0.80% | 0.86% |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.15% | 0.18% |
Nonperforming assets as a percentage of total assets | 0.11% | 0.13% |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.92% | 1.00% |
Nonperforming assets as a percentage of total assets | 0.69% | 0.73% |
ALLOWANCE FOR CREDIT LOSSES, 90
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | $ 507 | $ 510 | |
90 Days or More Past Due | 849 | 872 | |
Total Past Due | 1,356 | 1,382 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 56 | 86 | |
90 Days or More Past Due | 148 | 164 | |
Total Past Due | 204 | 250 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 13 | 57 | |
90 Days or More Past Due | 71 | 114 | |
Total Past Due | 84 | 171 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 33 | 26 | |
90 Days or More Past Due | 77 | 50 | |
Total Past Due | 110 | 76 | |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 10 | 3 | |
90 Days or More Past Due | 0 | 0 | |
Total Past Due | 10 | 3 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 451 | 424 | |
90 Days or More Past Due | 701 | 708 | |
Total Past Due | 1,152 | 1,132 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 70 | 97 | |
90 Days or More Past Due | 246 | 269 | |
Total Past Due | 316 | 366 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 44 | 60 | |
90 Days or More Past Due | 104 | 145 | |
Total Past Due | 148 | 205 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 80 | 73 | |
90 Days or More Past Due | 205 | 198 | |
Total Past Due | 285 | 271 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | [1] | 20 | 26 |
90 Days or More Past Due | [1] | 20 | 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] | 16 | 10 |
90 Days or More Past Due | [1] | 29 | 19 |
Total Past Due | [1] | 45 | 29 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 159 | 93 | |
90 Days or More Past Due | 35 | 16 | |
Total Past Due | 194 | 109 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 30 | 25 | |
90 Days or More Past Due | 41 | 17 | |
Total Past Due | 71 | 42 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 20 | 22 | |
90 Days or More Past Due | 16 | 17 | |
Total Past Due | 36 | 39 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-89 Days Past Due | 12 | 18 | |
90 Days or More Past Due | 5 | 4 | |
Total Past Due | $ 17 | $ 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, 91
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | $ 641 | $ 789 | |
Allowance on Impaired Loans | 137 | 129 | |
Impaired Loans Without a Related Allowance | 742 | 624 | |
Unpaid Contractual Balance | 1,671 | 1,727 | |
Total Recorded Investment in Impaired Loans | 1,383 | 1,413 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 148 | 131 | |
Allowance on Impaired Loans | 36 | 20 | |
Impaired Loans Without a Related Allowance | 70 | 74 | |
Unpaid Contractual Balance | 214 | 240 | |
Total Recorded Investment in Impaired Loans | 218 | 205 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 92 | 124 | |
Allowance on Impaired Loans | 23 | 19 | |
Impaired Loans Without a Related Allowance | 58 | 36 | |
Unpaid Contractual Balance | 144 | 178 | |
Total Recorded Investment in Impaired Loans | 150 | 160 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 56 | 7 | |
Allowance on Impaired Loans | 13 | 1 | |
Impaired Loans Without a Related Allowance | 12 | 38 | |
Unpaid Contractual Balance | 70 | 62 | |
Total Recorded Investment in Impaired Loans | 68 | 45 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 493 | 658 | |
Allowance on Impaired Loans | 101 | 109 | |
Impaired Loans Without a Related Allowance | 672 | 550 | |
Unpaid Contractual Balance | 1,457 | 1,487 | |
Total Recorded Investment in Impaired Loans | 1,165 | 1,208 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 121 | 157 | |
Allowance on Impaired Loans | 16 | 18 | |
Impaired Loans Without a Related Allowance | 320 | 288 | |
Unpaid Contractual Balance | 608 | 605 | |
Total Recorded Investment in Impaired Loans | 441 | 445 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 85 | 129 | |
Allowance on Impaired Loans | 11 | 11 | |
Impaired Loans Without a Related Allowance | 139 | 141 | |
Unpaid Contractual Balance | 283 | 335 | |
Total Recorded Investment in Impaired Loans | 224 | 270 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 27 | 75 | |
Allowance on Impaired Loans | 2 | 3 | |
Impaired Loans Without a Related Allowance | 167 | 86 | |
Unpaid Contractual Balance | 234 | 193 | |
Total Recorded Investment in Impaired Loans | 194 | 161 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | [1] | 50 | 75 |
Allowance on Impaired Loans | [1] | 8 | 9 |
Impaired Loans Without a Related Allowance | [1] | 24 | 16 |
Unpaid Contractual Balance | [1] | 88 | 102 |
Total Recorded Investment in Impaired Loans | [1] | 74 | 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 | 19 | 16 | |
Total Recorded Investment in Impaired Loans | 14 | 11 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 163 | 167 | |
Allowance on Impaired Loans | 48 | 48 | |
Impaired Loans Without a Related Allowance | 2 | 0 | |
Unpaid Contractual Balance | 165 | 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 | 28 | 32 | |
Allowance on Impaired Loans | 11 | 13 | |
Impaired Loans Without a Related Allowance | 0 | 0 | |
Unpaid Contractual Balance | 28 | 32 | |
Total Recorded Investment in Impaired Loans | 28 | 32 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 13 | 17 | |
Allowance on Impaired Loans | 4 | 5 | |
Impaired Loans Without a Related Allowance | 2 | 3 | |
Unpaid Contractual Balance | 18 | 23 | |
Total Recorded Investment in Impaired Loans | $ 15 | $ 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, 92
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | $ 47 | $ 53 | $ 32 | |
Average Recorded Investment | 1,283 | 1,434 | 1,371 | |
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 5 | 11 | 2 | |
Average Recorded Investment | 179 | 296 | 306 | |
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 4 | 9 | 1 | |
Average Recorded Investment | 135 | 198 | 157 | |
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 2 | 1 | |
Average Recorded Investment | 44 | 98 | 149 | |
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 42 | 42 | 30 | |
Average Recorded Investment | 1,104 | 1,138 | 1,065 | |
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 15 | 14 | 7 | |
Average Recorded Investment | 415 | 429 | 419 | |
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 9 | 8 | 5 | |
Average Recorded Investment | 222 | 246 | 228 | |
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 4 | 4 | 2 | |
Average Recorded Investment | 173 | 149 | 90 | |
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | [1] | 4 | 5 | 5 |
Average Recorded Investment | [1] | 75 | 91 | 102 |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | [1] | 0 | 0 | 0 |
Average Recorded Investment | [1] | 9 | 11 | 12 |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | |
Average Recorded Investment | 11 | 7 | 8 | |
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 7 | 8 | 7 | |
Average Recorded Investment | 157 | 153 | 140 | |
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | 3 | |
Average Recorded Investment | 26 | 31 | 41 | |
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 1 | |
Average Recorded Investment | $ 16 | $ 21 | $ 25 | |
[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, 93
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | Dec. 31, 2013USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | $ 4 | $ 1 | $ 5 | |
Charge-offs Resulting from Modification | 7 | 16 | 32 | |
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | (1) | 3 | (2) | |
Charge-offs Resulting from Modification | 1 | 3 | 1 | |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | (1) | 3 | 0 | |
Charge-offs Resulting from Modification | 1 | 0 | 1 | |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (2) | |
Charge-offs Resulting from Modification | 0 | 3 | 0 | |
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 5 | (2) | 7 | |
Charge-offs Resulting from Modification | 6 | 13 | 31 | |
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | (1) | (4) | 5 | |
Charge-offs Resulting from Modification | 0 | 1 | 2 | |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | (1) | 2 | |
Charge-offs Resulting from Modification | 1 | 2 | 5 | |
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 2 | 5 | 16 | |
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | [1] | 0 | (1) | 0 |
Charge-offs Resulting from Modification | [1] | 1 | 0 | 3 |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | [1] | 0 | 0 | 0 |
Charge-offs Resulting from Modification | [1] | 0 | 0 | 1 |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 2 | 5 | 3 | |
Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 4 | 5 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | |
Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 2 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | |
Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | (1) | 0 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 1 | |
Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 2,834 | 2,581 | 3,573 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 73 | $ 49 | $ 87 |
Post-Modification Outstanding Recorded Investment | [2] | $ 73 | $ 50 | $ 89 |
Interest Rate Reduction | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 26 | 34 | 137 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 19 | $ 9 | $ 20 |
Post-Modification Outstanding Recorded Investment | [2] | $ 19 | $ 9 | $ 20 |
Interest Rate Reduction | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 25 | 25 | 126 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 19 | $ 8 | $ 13 |
Post-Modification Outstanding Recorded Investment | [2] | $ 19 | $ 7 | $ 13 |
Interest Rate Reduction | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 1 | 9 | 11 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 7 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 2 | $ 7 |
Interest Rate Reduction | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 2,808 | 2,547 | 3,436 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 54 | $ 40 | $ 67 |
Post-Modification Outstanding Recorded Investment | [2] | $ 54 | $ 41 | $ 69 |
Interest Rate Reduction | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 153 | 126 | 200 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 31 | $ 17 | $ 32 |
Post-Modification Outstanding Recorded Investment | [2] | $ 31 | $ 17 | $ 33 |
Interest Rate Reduction | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 96 | 125 | 196 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 8 | $ 15 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 9 | $ 16 |
Interest Rate Reduction | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 4 | 7 | 18 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 1 |
Interest Rate Reduction | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[2] | 29 | 42 | 31 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 2 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 2 | $ 2 | $ 2 |
Interest Rate Reduction | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[2] | 2 | 4 | 3 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 108 | 75 | 238 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 2 | $ 1 | $ 2 |
Post-Modification Outstanding Recorded Investment | [2] | $ 2 | $ 1 | $ 2 |
Interest Rate Reduction | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 2,413 | 2,165 | 2,729 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 12 | $ 15 |
Post-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 12 | $ 15 |
Interest Rate Reduction | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 3 | 3 | 21 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 421 | 566 | 2,366 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 66 | $ 52 | $ 110 |
Post-Modification Outstanding Recorded Investment | [3] | $ 65 | $ 51 | $ 101 |
Maturity Extension | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 161 | 146 | 137 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 24 | $ 19 |
Post-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 24 | $ 19 |
Maturity Extension | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 160 | 131 | 134 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 21 | $ 18 |
Post-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 22 | $ 18 |
Maturity Extension | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 1 | 15 | 3 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 3 | $ 1 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 2 | $ 1 |
Maturity Extension | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 260 | 420 | 2,229 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 44 | $ 28 | $ 91 |
Post-Modification Outstanding Recorded Investment | [3] | $ 43 | $ 27 | $ 82 |
Maturity Extension | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 40 | 40 | 46 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 6 | $ 5 |
Post-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 5 | $ 6 |
Maturity Extension | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 191 | 85 | 94 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 35 | $ 5 | $ 6 |
Post-Modification Outstanding Recorded Investment | [3] | $ 35 | $ 6 | $ 6 |
Maturity Extension | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 23 | 276 | 2,081 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 17 | $ 80 |
Post-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 16 | $ 70 |
Maturity Extension | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[3] | 0 | 0 | 5 |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[3] | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 5 | 18 | 2 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 3,261 | 4,771 | 6,606 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 165 | $ 251 | $ 253 |
Post-Modification Outstanding Recorded Investment | [4] | $ 159 | $ 262 | $ 232 |
Other | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 17 | 28 | 7 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 38 | $ 59 | $ 1 |
Post-Modification Outstanding Recorded Investment | [4] | $ 38 | $ 81 | $ 1 |
Other | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 16 | 27 | 6 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 34 | $ 52 | $ 1 |
Post-Modification Outstanding Recorded Investment | [4] | $ 34 | $ 74 | $ 1 |
Other | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 4 | $ 7 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 4 | $ 7 | $ 0 |
Other | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 3,244 | 4,743 | 6,599 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 127 | $ 192 | $ 252 |
Post-Modification Outstanding Recorded Investment | [4] | $ 121 | $ 181 | $ 231 |
Other | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 275 | 393 | 430 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 33 | $ 47 | $ 64 |
Post-Modification Outstanding Recorded Investment | [4] | $ 33 | $ 46 | $ 63 |
Other | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 448 | 1,046 | 995 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 63 | $ 57 |
Post-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 62 | $ 51 |
Other | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 320 | 356 | 771 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 21 | $ 25 | $ 53 |
Post-Modification Outstanding Recorded Investment | [4] | $ 19 | $ 21 | $ 46 |
Other | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[4] | 124 | 138 | 269 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 6 | $ 5 | $ 12 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 5 | $ 5 | $ 10 |
Other | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1],[4] | 41 | 39 | 43 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 3 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 2 | $ 2 | $ 1 |
Other | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 812 | 1,039 | 1,323 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 14 | $ 17 | $ 13 |
Post-Modification Outstanding Recorded Investment | [4] | $ 12 | $ 13 | $ 10 |
Other | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 1,204 | 1,675 | 2,620 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 22 | $ 31 | $ 48 |
Post-Modification Outstanding Recorded Investment | [4] | $ 22 | $ 31 | $ 47 |
Other | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 |
Other | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [4] | 20 | 57 | 148 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 2 | $ 3 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 1 | $ 3 |
[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, 94
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | Dec. 31, 2013USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1,288 | 2,037 | 3,584 | |
Balance Defaulted | $ | $ 52 | $ 97 | $ 153 | |
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 23 | 40 | 21 | |
Balance Defaulted | $ | $ 2 | $ 13 | $ 2 | |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 23 | 37 | 18 | |
Balance Defaulted | $ | $ 2 | $ 12 | $ 1 | |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 3 | 3 | |
Balance Defaulted | $ | $ 0 | $ 1 | $ 1 | |
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1,265 | 1,997 | 3,563 | |
Balance Defaulted | $ | $ 50 | $ 84 | $ 151 | |
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 168 | 301 | 526 | |
Balance Defaulted | $ | $ 21 | $ 35 | $ 60 | |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 184 | 329 | 740 | |
Balance Defaulted | $ | $ 13 | $ 24 | $ 43 | |
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 131 | 229 | 394 | |
Balance Defaulted | $ | $ 7 | $ 12 | $ 21 | |
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 43 | 60 | 187 |
Balance Defaulted | $ | [1] | $ 1 | $ 2 | $ 3 |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 22 | 20 | 42 |
Balance Defaulted | $ | [1] | $ 1 | $ 0 | $ 2 |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 87 | 112 | 208 | |
Balance Defaulted | $ | $ 1 | $ 1 | $ 1 | |
Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 171 | 355 | 885 | |
Balance Defaulted | $ | $ 3 | $ 7 | $ 17 | |
Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 455 | 579 | 548 | |
Balance Defaulted | $ | $ 3 | $ 3 | $ 3 | |
Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 4 | 12 | 33 | |
Balance Defaulted | $ | $ 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. |
ALLOWANCE FOR CREDIT LOSSES, 95
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,472 | $ 3,541 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 649 | 773 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,038 | 1,743 |
High loan-to-value | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 785 | 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 | 1,110 | 894 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,110 | 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 | 99 | 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 | 3 | 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 | 96 | 98 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14 | 24 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14 | 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 | 3,695 | 4,557 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,773 | 1,691 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,041 | 1,743 |
Credit risk, loans with increased credit exposure | Home Equity Products serviced by others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 785 | 1,025 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 96 | $ 98 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | |
Net impairment losses recognized in earnings | $ 0 |
LIHTC Investments | |
Variable Interest Entity [Line Items] | |
Investment in low income housing tax credit partnerships | 598,000,000 |
Qualified affordable housing project investments, commitment | 365,000,000 |
Amortization method qualified affordable housing project investments, amortization | 45,000,000 |
Affordable housing tax credits and other tax benefits, amount | 45,000,000 |
Other tax expense (benefit) | $ (17,000,000) |
PREMISES, EQUIPMENT, AND SOFT97
PREMISES, EQUIPMENT, AND SOFTWARE - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)sale-leaseback | Dec. 31, 2014USD ($)sale-leaseback | Dec. 31, 2013USD ($)sale-leaseback | |
Capital Leases of Lessee [Abstract] | |||
Book value of capital leased assets | $ 47 | $ 46 | |
Capital leased assets accumulated depreciation | 25 | 22 | |
Depreciation expense | $ 116 | $ 117 | $ 138 |
Sale Leaseback Transaction | |||
Number of sale-leaseback transactions entered into during period | sale-leaseback | 2 | 0 | 1 |
Sale leaseback transaction term | 10 years | 10 years | |
Gain on sale leaseback transaction | $ 9 | $ 15 | |
Deferred gain on sale leaseback transaction | 1 | 14 | |
Capitalized Software | |||
Capitalized software, gross | 1,300 | $ 1,100 | |
Capitalized software, accumulated amortization | 532 | 387 | |
Amortization of software | $ 146 | $ 145 | $ 102 |
PREMISES, EQUIPMENT, AND SOFT98
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Premises and Equipment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)sale-leaseback | Dec. 31, 2014USD ($)sale-leaseback | Dec. 31, 2013sale-leaseback | |
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment, gross | $ 2,326 | $ 2,246 | |
Less: accumulated depreciation | 1,731 | 1,651 | |
Total premises and equipment, net | $ 595 | $ 595 | |
Number of sale-leaseback transactions entered into during period | sale-leaseback | 2 | 0 | 1 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Total premises and equipment, gross | $ 25 | $ 26 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment, gross | $ 634 | 607 | |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment, gross | $ 1,667 | $ 1,613 | |
Furniture, fixtures and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years |
PREMISES, EQUIPMENT, AND SOFT99
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Amortization (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Capitalized Software, Expected Future Amortization Expense [Abstract] | ||
2,016 | $ 142 | |
2,017 | 125 | |
2,018 | 104 | |
2,019 | 72 | |
2,020 | 43 | |
Thereafter | 129 | |
Total | 615 | [1] |
In-process software | $ 171 | |
[1] | Excluded from this balance is $171 million of in-process software at December 31, 2015. |
LEASE COMMITMENTS - Narrative (
LEASE COMMITMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rent expense for operating leases and capital leases | $ 205 | $ 214 | $ 224 |
LEASE COMMITMENTS - Aggregate M
LEASE COMMITMENTS - Aggregate Minimum Rental Commitments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases | |
2,016 | $ 190 |
2,017 | 167 |
2,018 | 131 |
2,019 | 85 |
2,020 | 64 |
Thereafter | 180 |
Total minimum lease payments | 817 |
Capital Leases | |
2,016 | 8 |
2,017 | 7 |
2,018 | 3 |
2,019 | 2 |
2,020 | 2 |
Thereafter | 10 |
Total minimum lease payments | 32 |
Amounts representing interest | (9) |
Present value of net minimum lease payments | $ 23 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | 216 Months Ended | ||
Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($)reporting_unit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 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 | $ 0 | $ 0 | $ 4,435 | ||
Consumer Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | 5,900 | 5,900 | $ 5,900 | ||
Goodwill impairment | $ 4,400 | ||||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Goodwill accumulated impairment loss | $ 50 | $ 50 | $ 50 |
GOODWILL - Goodwill Rollforward
GOODWILL - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 6,876 | $ 6,876 |
Adjustments | 0 | 0 |
Ending balance | 6,876 | 6,876 |
Consumer Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,136 | 2,136 |
Adjustments | 0 | 0 |
Ending balance | 2,136 | 2,136 |
Commercial Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,740 | 4,740 |
Adjustments | 0 | 0 |
Ending balance | $ 4,740 | $ 4,740 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | $ 2,381 | $ 1,578 | $ 4,229 |
Repurchased mortgage loans | 10 | 25 | 35 |
Mortgage servicing fees | 55 | 59 | 61 |
Mortgage servicing rights valuation recovery | (9) | (5) | (47) |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | 2,700 | 1,600 | 4,200 |
Gain on sale of residential mortgages | $ 51 | $ 36 | $ 66 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - Residential mortgages - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
MSRs | ||
Balance as of January 1 | $ 184 | $ 208 |
Amount capitalized | 26 | 17 |
Amortization | (37) | (41) |
Carrying amount before valuation allowance | 173 | 184 |
Valuation allowance for servicing assets | ||
Balance as of January 1 | 18 | 23 |
Valuation recovery | (9) | (5) |
Balance at end of period | 9 | 18 |
Net carrying value of MSRs | $ 164 | $ 166 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 5 years 4 months 24 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate | 11.60% | 12.40% |
Weighted average discount rate | 9.70% | 9.80% |
Residential mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 178 | $ 179 |
Weighted average life (in years) | 5 years 4 months 24 days | 5 years 2 months 12 days |
Weighted average constant prepayment rate | 11.60% | 12.40% |
Weighted average discount rate | 9.70% | 9.80% |
MORTGAGE BANKING - Economic 107
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) - Residential mortgages | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||
Weighted average life (in years) | 5 years 10 months 24 days | 5 years 9 months 18 days | 6 years |
Weighted average constant prepayment rate | 10.70% | 11.70% | 12.40% |
Weighted average discount rate | 9.70% | 10.30% | 10.50% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Minimum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 0.50% | 0.50% |
Maximum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 1.00% | 1.00% |
Prepayment rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from a 50 basis point decrease in interest rates | $ 5 | $ 9 |
Decline in fair value from a 100 basis point decrease in interest rates | 11 | 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 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) $ in Millions | Dec. 31, 2015USD ($) |
Banking and Thrift [Abstract] | |
Time deposits of $100,000 or more | $ 6,285 |
DEPOSITS - Major Components of
DEPOSITS - Major Components of Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits, by Type [Abstract] | ||
Demand | $ 27,649 | $ 26,086 |
Checking with interest | 17,921 | 16,394 |
Regular savings | 8,218 | 7,824 |
Money market accounts | 36,727 | 33,345 |
Term deposits | 12,024 | 12,058 |
Total deposits | $ 102,539 | $ 95,707 |
DEPOSITS - Maturities of Term D
DEPOSITS - Maturities of Term Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 9,994 | |
2,017 | 1,309 | |
2,018 | 428 | |
2,019 | 183 | |
2,020 | 104 | |
2021 and thereafter | 6 | |
Total | $ 12,024 | $ 12,058 |
DEPOSITS - Maturities of Ter112
DEPOSITS - Maturities of Term Deposits Greater than $100,000 (Details) $ in Millions | Dec. 31, 2015USD ($) |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | |
Three months or less | $ 3,136 |
After three months through six months | 1,145 |
After six months through twelve months | 1,329 |
After twelve months | 675 |
Total term deposits | $ 6,285 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Dec. 03, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||
Extinguishment of debt, amount | $ 750 | |||
Gains (losses) on extinguishment of debt | $ 3 | $ 3 | $ 0 | $ 0 |
Long-term borrowed funds | 9,886 | 4,642 | ||
Short-term borrowed funds | 3,432 | 10,529 | ||
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowed funds | 11,300 | 11,300 | ||
Federal Home Loan advances | ||||
Debt Instrument [Line Items] | ||||
Available borrowing capacity | 4,100 | 3,500 | ||
Federal Reserve Bank advances | ||||
Debt Instrument [Line Items] | ||||
Available borrowing capacity | 32,100 | |||
Citizens Financial Group, Inc. | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 2,595 | |||
Citizens Financial Group, Inc. | 4.300% fixed rate subordinated debt, due 2025 | Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 750 | $ 0 | ||
Interest rate | 4.30% |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 3,432 | $ 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 | 802 | 3,702 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 2,630 | $ 6,253 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal funds purchased and securities sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 0.15% | 0.14% | 0.09% |
Maximum amount outstanding at month-end during the period | $ 5,375 | $ 7,022 | $ 5,114 |
Average amount outstanding during the period | $ 3,364 | $ 5,699 | $ 2,400 |
Weighted-average interest rate during the period | 0.22% | 0.12% | 0.31% |
Other short-term borrowed funds (primarily current portion of FHLB advances) | |||
Short-term Debt [Line Items] | |||
Weighted-average interest rate at period end | 0.44% | 0.26% | 0.20% |
Maximum amount outstanding at month-end during the period | $ 7,004 | $ 7,702 | $ 2,251 |
Average amount outstanding during the period | $ 5,865 | $ 5,640 | $ 251 |
Weighted-average interest rate during the period | 0.28% | 0.25% | 0.44% |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Aug. 03, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 9,886 | $ 4,642 | ||
Interest rate swaps | 807 | 790 | ||
Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | 636 | 613 | ||
Citizens Financial Group, Inc. | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 2,595 | |||
Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 7,291 | |||
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] | ||||
Interest rate | 4.15% | |||
Long-term borrowed funds | $ 350 | 350 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1] | 5.158% | ||
Long-term borrowed funds | [1] | $ 333 | 333 | |
Subordinated Debt | Citizens Financial Group, Inc. | 4.771% fixed rate subordinated debt, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1] | 4.771% | ||
Long-term borrowed funds | [1] | $ 0 | 333 | |
Subordinated Debt | Citizens Financial Group, Inc. | 4.691% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1] | 4.691% | ||
Long-term borrowed funds | [1] | $ 0 | 334 | |
Subordinated Debt | Citizens Financial Group, Inc. | 4.153% fixed rate subordinated debt due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1],[2] | 4.153% | ||
Long-term borrowed funds | [1],[2] | $ 250 | 333 | |
Subordinated Debt | Citizens Financial Group, Inc. | 3.750% fixed rate subordinated debt due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1],[2] | 3.75% | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.023% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1],[3] | 4.023% | ||
Long-term borrowed funds | [1],[3] | $ 331 | 333 | |
Unsecured debt | [1] | $ 333 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.082% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1],[4] | 4.082% | ||
Long-term borrowed funds | [1],[4] | $ 331 | 334 | |
Unsecured debt | [1] | $ 334 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.350% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.35% | |||
Long-term borrowed funds | $ 250 | 0 | ||
Subordinated Debt | Citizens Financial Group, Inc. | 4.300% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.30% | |||
Long-term borrowed funds | $ 750 | 0 | ||
Subordinated Debt | Citizens Financial Group, Inc. | LIBOR | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [1] | 3.56% | ||
Senior Unsecured Notes | Interest rate swaps | 4.023% fixed rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | [1] | $ 2 | ||
Senior Unsecured Notes | Interest rate swaps | 4.082% fixed rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | [1] | 3 | ||
Senior Unsecured Notes | Interest rate swaps | 1.600% senior unsecured notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | [5] | 1 | ||
Senior Unsecured Notes | Interest rate swaps | 2.300% senior unsecured notes, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | [5] | 3 | ||
Senior Unsecured Notes | Interest rate swaps | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | [5] | $ 2 | ||
Senior Unsecured Notes | Banking Subsidiaries | 1.600% senior unsecured notes, due 2017 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [5],[6] | 1.60% | ||
Long-term borrowed funds | [5],[6] | $ 749 | 750 | |
Unsecured debt | [5] | $ 750 | ||
Senior Unsecured Notes | Banking Subsidiaries | 2.300% senior unsecured notes, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [5],[7] | 2.30% | ||
Long-term borrowed funds | [5],[7] | $ 747 | 0 | |
Unsecured debt | [5] | $ 750 | ||
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | [5],[8] | 2.45% | ||
Long-term borrowed funds | [5],[8] | $ 752 | 746 | |
Unsecured debt | [5] | 750 | ||
Federal Home Loan advances | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 5,018 | 772 | ||
Other | Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 25 | $ 24 | ||
[1] | Borrowed funds with RBS. See Note 19 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||
[2] | Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. | |||
[3] | $333 million principal balance of subordinated debt reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. | |||
[4] | $334 million principal balance of subordinated debt reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. | |||
[5] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. | |||
[6] | $750 million principal balance of unsecured notes reflects the impact of $1 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. | |||
[7] | $750 million principal balance of unsecured notes reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. | |||
[8] | $750 million principal balance of unsecured notes reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
2,016 | $ 0 | |
2,017 | 5,764 | |
2,018 | 753 | |
2,019 | 753 | |
2,020 | 2 | |
2,021 | 2,614 | |
Total | 9,886 | $ 4,642 |
Citizens Financial Group, Inc. | ||
Debt Instrument [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 2,595 | |
Total | 2,595 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2,016 | 0 | |
2,017 | 5,764 | |
2,018 | 753 | |
2,019 | 753 | |
2,020 | 2 | |
2,021 | 19 | |
Total | $ 7,291 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Aug. 03, 2015 | Apr. 07, 2015 | Apr. 06, 2015 | Oct. 08, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Stock | ||||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Preferred stock, outstanding (in shares) | 0 | 250,000 | 0 | |||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 25 | |||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||
Treasury Stock | ||||||||
Cost of stock repurchase | $ 500,000,000 | $ 334,000,000 | $ 0 | |||||
Long-term borrowed funds | $ 4,642,000,000 | $ 9,886,000,000 | 4,642,000,000 | |||||
Deferred compensation, share-based payments | ||||||||
Treasury Stock | ||||||||
Treasury stock purchased, price per share (in dollars per share) | $ 25.03 | $ 25.50 | ||||||
Cost of stock repurchase | $ 2,000,000 | $ 22,000,000 | ||||||
Shares repurchased (in shares) | 80,358 | 876,087 | ||||||
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 | $ 23.36 | |||||
Cost of stock repurchase | $ 250,000,000 | $ 334,000,000 | ||||||
Shares repurchased (in shares) | 14,297,761 | |||||||
Long-term borrowed funds | $ 2,000,000,000 | $ 1,250,000,000 | $ 2,000,000,000 | |||||
4.350% fixed rate subordinated debt, due 2025 | Subordinated Debt | ||||||||
Treasury Stock | ||||||||
Aggregate principal amount of debt | $ 250,000,000 | |||||||
Interest rate | 4.35% | |||||||
4.082% fixed rate subordinated debt, due 2025 | Subordinated Debt | RBSG | ||||||||
Treasury Stock | ||||||||
Interest rate | 4.082% | 4.082% | 4.082% | 4.082% | ||||
Long-term borrowed funds | $ 334,000,000 | $ 334,000,000 | $ 334,000,000 | $ 334,000,000 | ||||
Debt term | 10 years | |||||||
Series A Preferred Stock | ||||||||
Preferred Stock | ||||||||
Preferred stock, authorized (in shares) | 0 | 250,000 | 0 | |||||
Preferred stock, outstanding (in shares) | 0 | 250,000 | 0 | |||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 0 | $ 25 | $ 0 | ||||
Preferred stock, issued | $ 250,000,000 | |||||||
Preferred stock, issued (in shares) | 250,000 | 0 | 250,000 | 0 | ||||
Preferred stock, dividend rate | 5.50% | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 0 | $ 1,000 | $ 0 | ||||
Net proceeds from issuance of stock | $ 247,000,000 | |||||||
Preferred stock, redemption price per share (in dollars 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 ($) | Sep. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net actuarial gain (loss) recorded in AOCI expected to be recognized during 2016 | $ (16,000,000) | ||||
Postemployment Benefits [Abstract] | |||||
Postemployment benefits | $ 0 | $ 1,000,000 | $ 3,000,000 | ||
401(k) Plan | |||||
Employer matching contribution percentage | 100.00% | 100.00% | |||
Employer matching contribution, Percent of employees' pay | 4.00% | 5.00% | |||
Employer matching contribution, addition | 2.00% | ||||
Employer contribution amount | $ 52,000,000 | $ 60,000,000 | $ 70,000,000 | ||
Non-Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected 2016 contribution | $ 8,000,000 | ||||
Discount rate | 4.54% | 3.875% | 4.75% | ||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |||||
Liabilities transferred to Affiliate plans | $ 7,000,000 | ||||
Postretirement Benefit Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected 2016 contribution | $ 1,000,000 | ||||
Discount rate | 3.93% | 3.50% | |||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |||||
Assumed annual rate of increase in the per capita cost of covered health care benefits | 7.00% | 7.00% | |||
Ultimate rate | 5.00% | 5.00% | |||
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 | |||||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |||||
Liabilities transferred to Affiliate plans | $ 7,000,000 | ||||
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected 2016 contribution | $ 0 | ||||
Discount rate | 4.64% | 4.125% | 5.00% | ||
Postretirement Medical Plans with Prescription Drug Benefits [Abstract] | |||||
Liabilities transferred to Affiliate plans | $ 148,000,000 |
EMPLOYEE BENEFITS - Allocation
EMPLOYEE BENEFITS - Allocation of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocations | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 45.00% | |
Maximum target asset allocation | 55.00% | |
Actual asset allocations | 47.10% | 49.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 40.00% | |
Maximum target asset allocation | 50.00% | |
Actual asset allocations | 47.30% | 44.70% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 0.00% | |
Maximum target asset allocation | 10.00% | |
Actual asset allocations | 5.60% | 6.30% |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in the Fair Value of Pension Plan Assets, Projected Benefit Obligation, Funded Status, and Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Sep. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets as of January 1 | $ 923 | ||||||
Fair value of plan assets as of December 31 | 949 | $ 923 | |||||
Qualified Plan | |||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets as of January 1 | 923 | [1] | 1,031 | [1] | $ 998 | ||
Actual return (loss) on plan assets | (41) | 98 | [1] | 111 | |||
Employer contributions | 100 | 0 | [1] | 0 | |||
Divestitures | $ (129) | 0 | (129) | [1] | 0 | ||
Benefits and administrative expenses paid | (65) | (77) | [1] | (78) | |||
Fair value of plan assets as of December 31 | 917 | 923 | [1] | 1,031 | [1] | ||
Projected benefit obligation | 977 | 1,093 | [1] | 1,026 | |||
Pension asset (obligation) | (60) | (170) | [1] | 5 | |||
Accumulated benefit obligation | 977 | 1,093 | [1] | 1,026 | |||
Liabilities transferred to Affiliate plans | 148 | ||||||
Non-Qualified Plan | |||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets as of January 1 | 0 | [1] | 0 | [1] | 0 | ||
Actual return (loss) on plan assets | 0 | 0 | [1] | 0 | |||
Employer contributions | 9 | 9 | [1] | 8 | |||
Divestitures | 0 | 0 | [1] | 0 | |||
Benefits and administrative expenses paid | (9) | (9) | [1] | (8) | |||
Fair value of plan assets as of December 31 | 0 | 0 | [1] | 0 | [1] | ||
Projected benefit obligation | 103 | 117 | [1] | 107 | |||
Pension asset (obligation) | (103) | (117) | [1] | (107) | |||
Accumulated benefit obligation | $ 103 | $ 117 | [1] | $ 107 | |||
Liabilities transferred to Affiliate plans | $ 7 | ||||||
[1] | December 31, 2014 amounts excluded $129 million in qualified plan assets, $148 million in qualified plan liabilities and $7 million in non-qualified plan liabilities transferred to Affiliates on September 1, 2014. |
EMPLOYEE BENEFITS - Plan Amount
EMPLOYEE BENEFITS - Plan Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | Sep. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | [1] |
Compensation and Retirement Disclosure [Abstract] | ||||
Net prior service credit | $ 0 | $ 0 | ||
Net actuarial loss | 599 | 606 | ||
Total loss recognized in accumulated other comprehensive income | $ 599 | $ 606 | ||
AOCI loss transferred to Affiliate plans | $ 35 | |||
[1] | December 31, 2014 amount excluded $35 million transferred to Affiliates on September 1, 2014. |
EMPLOYEE BENEFITS - Plan Amo123
EMPLOYEE BENEFITS - Plan Amounts Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Net periodic pension income | $ (7) | $ (8) | $ (3) |
Net actuarial (gain) loss | 7 | 237 | (174) |
Amortization of net actuarial loss | (15) | (10) | (14) |
Divestiture | 0 | (35) | 0 |
Total recognized in other comprehensive income | (8) | 192 | (188) |
Total recognized in net periodic pension cost and other comprehensive income | $ (15) | $ 184 | $ (191) |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3 | $ 3 | $ 3 |
Interest cost | 48 | 52 | 53 |
Expected return on plan assets | (74) | (73) | (73) |
Amortization of actuarial loss | 15 | 10 | 14 |
Net periodic pension (income) cost | (8) | (8) | (3) |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 3 |
Interest cost | 44 | 47 | 48 |
Expected return on plan assets | (74) | (73) | (73) |
Amortization of actuarial loss | 13 | 9 | 13 |
Net periodic pension (income) cost | (14) | (14) | (9) |
Non-Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 4 | 5 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 2 | 1 | 1 |
Net periodic pension (income) cost | $ 6 | $ 6 | $ 6 |
EMPLOYEE BENEFITS - Assumptions
EMPLOYEE BENEFITS - Assumptions Used in Determining Actuarial Present Value of Benefit Obligations and Net Periodic Benefit Cost (Details) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Aug. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Assumptions for benefit obligations | |||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.50% | 7.50% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.50% | ||||
Qualified Plan | |||||||
Assumptions for benefit obligations | |||||||
Discount rate | 4.125% | 4.64% | 4.125% | 5.00% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Discount rate | 4.25% | [1] | 5.00% | [1] | 4.125% | 4.125% | |
Non-Qualified Plan | |||||||
Assumptions for benefit obligations | |||||||
Discount rate | 3.875% | 4.54% | 3.875% | 4.75% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||||
Discount rate | 4.00% | [2] | 4.75% | [2] | 3.875% | 4.00% | |
[1] | 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | ||||||
[2] | 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. |
EMPLOYEE BENEFITS - Expected Fu
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Qualified and Non-Qualified Plans | |
Expected benefit payments by fiscal year ended | |
December 31, 2016 | $ 61 |
December 31, 2017 | 62 |
December 31, 2018 | 62 |
December 31, 2019 | 63 |
December 31, 2020 | 64 |
December 31, 2021 - 2025 | 337 |
Postretirement Benefit Plan | |
Expected benefit payments by fiscal year ended | |
December 31, 2016 | 1 |
December 31, 2017 | 1 |
December 31, 2018 | 1 |
December 31, 2019 | 1 |
December 31, 2020 | 1 |
December 31, 2021 - 2025 | $ 5 |
EMPLOYEE BENEFITS - Fair Value
EMPLOYEE BENEFITS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 949 | $ 923 |
Fair value of plan liabilities | 2 | |
Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 18 |
Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47 | 24 |
Mutual funds | Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9 | |
Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39 | |
Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 220 | 241 |
Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 196 | |
Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 120 | 305 |
Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | (6) |
Managed portfolio | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20 | |
Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35 | 17 |
Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 2 |
Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 2 |
Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 84 | 85 |
Managed portfolio | Asset-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | |
Managed portfolio | Mortgage-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Managed portfolio | Derivatives - interest rates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | (1) |
Fair value of plan liabilities | 1 | |
Managed portfolio | Derivatives - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Fair value of plan liabilities | 1 | |
Managed portfolio | Derivatives - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (1) | |
Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | |
International equity fund | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 107 | |
International equity | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 95 | |
Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 183 | |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47 | 24 |
Fair value of plan liabilities | 0 | |
Level 1 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47 | 24 |
Level 1 | Mutual funds | Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 1 | Managed portfolio | Asset-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Mortgage-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Derivatives - interest rates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair value of plan liabilities | 0 | |
Level 1 | Managed portfolio | Derivatives - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Fair value of plan liabilities | 0 | |
Level 1 | Managed portfolio | Derivatives - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | International equity fund | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | International equity | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 1 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 902 | 899 |
Fair value of plan liabilities | 2 | |
Level 2 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 18 |
Level 2 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 2 | Mutual funds | Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9 | |
Level 2 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39 | |
Level 2 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 220 | 241 |
Level 2 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 196 | |
Level 2 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 120 | 305 |
Level 2 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | (6) |
Level 2 | Managed portfolio | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20 | |
Level 2 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35 | 17 |
Level 2 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 2 |
Level 2 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | 2 |
Level 2 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 84 | 85 |
Level 2 | Managed portfolio | Asset-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5 | |
Level 2 | Managed portfolio | Mortgage-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Level 2 | Managed portfolio | Derivatives - interest rates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | (1) |
Fair value of plan liabilities | 1 | |
Level 2 | Managed portfolio | Derivatives - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1 | |
Fair value of plan liabilities | 1 | |
Level 2 | Managed portfolio | Derivatives - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (1) | |
Level 2 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | |
Level 2 | International equity fund | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 107 | |
Level 2 | International equity | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 95 | |
Level 2 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 183 | |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair value of plan liabilities | 0 | |
Level 3 | Cash and cash equivalents | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Mutual funds | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Mutual funds | Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Mutual funds | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Common and collective funds | Global equities common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Common and collective funds | Balanced common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Common and collective funds | Fixed income common and collective funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Cash and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Non-U.S. government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Municipal obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 | Managed portfolio | Asset-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Mortgage-backed securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Derivatives - interest rates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair value of plan liabilities | 0 | |
Level 3 | Managed portfolio | Derivatives - credit default swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Fair value of plan liabilities | 0 | |
Level 3 | Managed portfolio | Derivatives - foreign currency futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | Managed portfolio | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | International equity fund | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Level 3 | International equity | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | |
Level 3 | Limited partnerships | Limited partnerships | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 |
EMPLOYEE BENEFITS - Fair Val128
EMPLOYEE BENEFITS - Fair Value Estimated Using Net Asset Value per Share (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | $ 767 | $ 768 | |
Unfunded commitments | 0 | ||
Mutual funds | Equity Mutual Fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [1] | 9 | 39 |
Unfunded commitments | [1] | $ 0 | |
Mutual funds | Equity Mutual Fund | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 1 day | |
Mutual funds | Equity Mutual Fund | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 7 days | |
Common and collective funds | Global equities funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [2] | $ 220 | 241 |
Unfunded commitments | [2] | $ 0 | |
Common and collective funds | Global equities funds | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [2] | 2 days | |
Common and collective funds | Global equities funds | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [2] | 3 days | |
Common and collective funds | Balanced funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [3] | $ 196 | 0 |
Unfunded commitments | [3] | $ 0 | |
Common and collective funds | Balanced funds | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [3] | 2 days | |
Common and collective funds | Balanced funds | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [3] | 3 days | |
Common and collective funds | Fixed income fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [4] | $ 120 | 305 |
Unfunded commitments | [4] | $ 0 | |
Redemption notice period | [4] | 3 days | |
Managed portfolio, fixed income mutual fund | Managed Portfolio, Fixed Income Mutual Fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [5] | $ 20 | 0 |
Unfunded commitments | [5] | $ 0 | |
Redemption notice period | [5] | 1 day | |
Limited partnerships | International equity funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [6] | $ 107 | 90 |
Unfunded commitments | [6] | $ 0 | |
Redemption notice period | [6] | 3 days | |
Limited partnerships | International equity | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [7] | $ 95 | 84 |
Unfunded commitments | [7] | $ 0 | |
Redemption notice period | [7] | 10 days | |
Limited partnerships | Offshore feeder fund | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of investment | [8] | $ 0 | $ 9 |
Unfunded commitments | [8] | $ 0 | |
Target investment return (Percent) | 8.00% | ||
Target investment return standard deviation (Percent) | 5.00% | ||
Limited partnerships | Offshore feeder fund | Minimum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [8] | 1 day | |
Limited partnerships | Offshore feeder fund | Maximum | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [8] | 14 days | |
[1] | The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principle investment objective is to generate positive total return. | ||
[2] | The global equities funds objective is to track the MSCI All Country World Index. | ||
[3] | The balanced funds seek to maximize total return by investing in global equities and fixed income transferable securities which may include some high yield income transferable securities. The funds may invest in securities denominated in currencies other than U.S. dollars. | ||
[4] | The fixed income fund seeks to outperform the Barclay’s Capital US Long Corporate Bond Index or similar benchmark. | ||
[5] | The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. | ||
[6] | The international equity fund seeks to medium to long-term capital appreciation principally through global investments in readily marketable high-quality equity securities of companies with improving fundamentals and attractive valuations. | ||
[7] | The international equity limited partnership seeks to outperform the MSCI World Index by investing primarily in the common stock of Non-U.S. issuers. | ||
[8] | The offshore feeder fund operates under a “master/feeder” structure whereby it invests substantially all of its assets in GMO Multi-Strategy Fund (Onshore) (the “master fund”). The investment objective of the master fund is capital appreciation with a target performance of the Citigroup Three-Month Treasury Bill plus 8% with a standard deviation of 5%. The investment adviser plans to pursue the master fund’s objective through a combination of investments in other pooled vehicles. |
EMPLOYEE BENEFITS - Assumpti129
EMPLOYEE BENEFITS - Assumptions Used in Determining the Net Periodic Benefit Cost of the Postretirement Benefits Plan (Details) - Postretirement Benefit Plan - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||||
Aug. 31, 2014 | [1] | Dec. 31, 2014 | [1] | May. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Discount rate | 3.875% | 3.75% | 4.625% | 3.50% | ||||
Rate of compensation increase | 0.00% | |||||||
Ultimate rate | 5.00% | 5.00% | ||||||
Effect on accumulated postretirement benefit obligation: One percent increase | $ 0 | $ 0 | ||||||
Effect on accumulated postretirement benefit obligation: One percent decrease | $ 0 | $ 0 | ||||||
[1] | 4.625% for January 1 - May 31, 2014 period; 3.875% for June 1 - August 31, 2014 period; and, 3.750% for September 1 - December 31, 2014 period. |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
Goodwill not deductible for tax purposes | 78.40% | ||
Goodwill impairment, Tax rate | (0.00%) | (0.00%) | 35.10% |
State operating loss carryforwards | $ 1,900,000,000 | ||
Deferred tax asset valuation allowance | 123,000,000 | $ 157,000,000 | |
Decrease in deferred tax asset valuation allowance | 34,000,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 43,000,000 | ||
Interest on unrecognized tax benefits accrued during period | 1,000,000 | 1,000,000 | $ 2,000,000 |
Accrued interest on unrecognized tax benefits | 14,000,000 | 15,000,000 | 14,000,000 |
Penalties accrued income tax examination | 0 | 0 | 0 |
Penalties expense income tax examination | 0 | $ 0 | $ 0 |
Decreases for tax positions related to settlements with taxing authorities | 4,000,000 | ||
Settlement with Taxing Authority | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Anticipated decrease in unrecognized tax benefits due to settlement with taxing authorities | 55,000,000 | ||
Tax Years Ended Prior to 1988 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Base year loan loss reserves attributable to prior years | $ 557,000,000 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 423 | $ 403 | $ (42) |
Tax effect of changes in OCI | (12) | 154 | (194) |
Total comprehensive income tax expense (benefit) | $ 411 | $ 557 | $ (236) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||
U.S. federal | $ 162 | $ 224 | $ 3 |
State and local | 12 | 38 | 8 |
Total | 174 | 262 | 11 |
Deferred | |||
U.S. federal | 225 | 145 | (47) |
State and local | 24 | (4) | (6) |
Total | 249 | 141 | (53) |
U.S. federal | 387 | 369 | (44) |
State and local | 36 | 34 | 2 |
Income tax expense (benefit) | $ 423 | $ 403 | $ (42) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amount | |||
U.S. Federal income tax expense (benefit) | $ 442 | $ 444 | $ (1,214) |
Increase (decrease) resulting from: | |||
Goodwill impairment | 0 | 0 | 1,217 |
State and local income taxes (net of federal benefit) | 27 | 22 | 1 |
Bank-owned life insurance | (20) | (17) | (17) |
Tax-exempt interest | (17) | (15) | (13) |
Tax credits | (16) | (27) | (11) |
Non-deductible expenses | 8 | 0 | 0 |
Other | (1) | (4) | (5) |
Income tax expense (benefit) | $ 423 | $ 403 | $ (42) |
Rate | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Goodwill impairment, Tax rate | 0.00% | 0.00% | (35.10%) |
State and local income taxes (net of federal benefit), Tax rate | 2.10% | 1.70% | 0.00% |
Bank-owned life insurance, Tax rate | (1.60%) | (1.30%) | 0.50% |
Tax-exempt interest, Tax rate | (1.30%) | (1.20%) | 0.40% |
Tax credits, Tax rate | (1.20%) | (2.10%) | 0.30% |
Non-deductible fines and penalties, Tax rate | 0.60% | 0.00% | 0.00% |
Other, Tax rate | (0.10%) | (0.30%) | 0.10% |
Total income tax expense (benefit) and tax rate, Tax rate | 33.50% | 31.80% | 1.20% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Other comprehensive income | $ 241 | $ 232 |
Allowance for credit losses | 465 | 456 |
Net operating loss carryforwards | 137 | 155 |
Accrued expenses not currently deductible | 135 | 170 |
Deferred income | 40 | 45 |
Fair value marks | 36 | 34 |
Other | 5 | 1 |
Total deferred tax assets | 1,059 | 1,093 |
Valuation allowance | (123) | (157) |
Deferred tax assets, net of valuation allowance | 936 | 936 |
Deferred tax liabilities: | ||
Leasing transactions | 882 | 825 |
Amortization of intangibles | 455 | 380 |
Depreciation | 213 | 164 |
Pension and other employee compensation plans | 69 | 14 |
MSRs | 47 | 46 |
Total deferred tax liabilities | 1,666 | 1,429 |
Net deferred tax liability | $ 730 | $ 493 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year, January 1 | $ 72 | $ 33 | $ 34 |
Gross (decrease) increase for tax positions related to prior years | (6) | 60 | 0 |
Decreases for tax positions as a result of the lapse of the statutes of limitations | (3) | (1) | 0 |
Decreases for tax positions related to settlements with taxing authorities | (1) | (20) | (1) |
Balance at end of year | $ 62 | $ 72 | $ 33 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Dec. 31, 2015USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net loss (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 9 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Assets | |||
Derivative assets | $ 807 | $ 790 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (178) | (161) |
Less: Cash collateral applied | [1] | (4) | 0 |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 625 | 629 |
Derivative Liabilities | |||
Derivative Liabilities | 666 | 773 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (178) | (161) |
Less: Cash collateral applied | [1] | (3) | 0 |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 485 | 612 |
Derivatives not designated as hedging instruments: | |||
Derivative Assets | |||
Derivative assets | 711 | 766 | |
Derivative Liabilities | |||
Derivative Liabilities | 616 | 674 | |
Interest rate swaps | |||
Derivative Assets | |||
Derivative assets | 636 | 613 | |
Derivative Liabilities | |||
Derivative Liabilities | 505 | 600 | |
Interest rate swaps | Derivatives designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 16,750 | 5,750 |
Derivative Assets | |||
Derivative assets | 96 | 24 | |
Derivative Liabilities | |||
Derivative Liabilities | 50 | 99 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 33,719 | 31,848 |
Derivative Assets | |||
Derivative assets | 540 | 589 | |
Derivative Liabilities | |||
Derivative Liabilities | 455 | 501 | |
Foreign exchange contracts | |||
Derivative Assets | |||
Derivative assets | 163 | 170 | |
Derivative Liabilities | |||
Derivative Liabilities | 156 | 164 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 8,366 | 8,359 |
Derivative Assets | |||
Derivative assets | 163 | 170 | |
Derivative Liabilities | |||
Derivative Liabilities | 156 | 164 | |
Other contracts | |||
Derivative Assets | |||
Derivative assets | 8 | 7 | |
Derivative Liabilities | |||
Derivative Liabilities | 5 | 9 | |
Other contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 981 | 730 |
Derivative Assets | |||
Derivative assets | 8 | 7 | |
Derivative Liabilities | |||
Derivative Liabilities | $ 5 | $ 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 3 “Securities” for further information. | ||
[3] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. Notional amounts are 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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | $ 32 | $ 33 | $ 70 |
Hedge of interest rate risk | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | (2) | (4) | |
Hedged Item | 2 | 4 | |
Hedge Ineffectiveness | $ 0 | $ 0 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest income | $ 626 | $ 624 | $ 488 | |
Amounts reclassified from OCI to interest expense | (452) | (363) | (443) | |
Amounts reclassified from OCI to net gain | 32 | 33 | 70 | |
Amount Reclassified from AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of gain (loss) recognized in OCI | [1] | 150 | 334 | (59) |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest income | [2] | 82 | 72 | 56 |
Amounts reclassified from OCI to interest expense | [2] | (59) | (99) | (235) |
Amounts reclassified from OCI to net gain | [3] | $ 0 | $ 0 | $ (1) |
[1] | The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | |||
[2] | This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | |||
[3] | This amount represents hedging gains and losses that have been immediately reclassified from accumulated other comprehensive loss based on the probability that the hedged forecasted transactions would not occur by the originally specified time period. This amount is reflected in the other net gains (losses) line item on the Consolidated Statements of Operations. |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | $ 32 | $ 33 | $ 70 | |
Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | (2) | (4) | ||
Customer derivative contracts | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [1] | 140 | 240 | 79 |
Customer derivative contracts | Other Income | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [1] | (18) | (59) | 18 |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [2] | (4) | 6 | (7) |
Economic hedges | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [1] | (106) | (209) | (30) |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [3] | 19 | 58 | (15) |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income, Total | [2] | $ 1 | $ (3) | $ 25 |
[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) | Jan. 07, 2016USD ($) | Dec. 31, 2015USD ($)counterparty | Dec. 31, 2014USD ($) | Dec. 31, 2003 | Nov. 30, 2015USD ($) | Jun. 30, 2015USD ($) |
Letters of Credit [Abstract] | ||||||
Letters of credit outstanding | $ 3,000,000 | $ 3,000,000 | ||||
Risk Participation Agreements [Abstract] | ||||||
Risk participation agreements | $ 26,000,000 | 19,000,000 | ||||
Risk participation agreements number of counterparties | counterparty | 84 | |||||
Risk participation agreements, Maximum term | 10 years | |||||
Commitments [Abstract] | ||||||
Long-term borrowed funds | $ 9,886,000,000 | 4,642,000,000 | ||||
Commercial real estate loans held for sale | Purchase commitment | ||||||
Commitments [Abstract] | ||||||
Unsettled commercial loan trade purchases | 69,000,000 | |||||
Unsettled commercial loan trade sales | 75,000,000 | |||||
Citizens Financial Group, Inc. | ||||||
Commitments [Abstract] | ||||||
Long-term borrowed funds | $ 2,595,000,000 | |||||
Subordinated Debt | Citizens Financial Group, Inc. | Purchase commitment | ||||||
Commitments [Abstract] | ||||||
Long-term borrowed funds | $ 500,000,000 | |||||
Minimum | ||||||
Risk Participation Agreements [Abstract] | ||||||
Risk participation agreements, Average term | 1 year | |||||
Maximum | ||||||
Risk Participation Agreements [Abstract] | ||||||
Risk participation agreements, Average term | 5 years | |||||
Marketing rights | ||||||
Marketing Rights [Abstract] | ||||||
Commitment period | 25 years | |||||
Payments made | $ 3,000,000 | $ 3,000,000 | ||||
Remaining obligation due | 47,000,000 | |||||
Automobile | Minimum | ||||||
Commitments [Abstract] | ||||||
Purchase commitment, due in next twelve months | $ 250,000,000 | |||||
Purchase commitment, due after next twelve months | 50,000,000 | |||||
Automobile | Maximum | ||||||
Commitments [Abstract] | ||||||
Purchase commitment, due in next twelve months | $ 600,000,000 | |||||
Purchase commitment, due after next twelve months | $ 200,000,000 | |||||
Student | ||||||
Commitments [Abstract] | ||||||
Purchase obligation, period from original agreement date after which no termination fee is payable | 3 years | |||||
Financial standby letters of credit | ||||||
Letters of Credit [Abstract] | ||||||
Letters of credit terms | 10 years | |||||
Commercial letters of credit | ||||||
Letters of Credit [Abstract] | ||||||
Letters of credit terms | 1 year | |||||
Subsequent Event | Student | ||||||
Commitments [Abstract] | ||||||
Termination fee | $ 1,000,000 | |||||
Subsequent Event | Student | Minimum | ||||||
Commitments [Abstract] | ||||||
Purchase commitment, due in next twelve months | 125,000,000 | |||||
Aggregate purchase principal balance | 500,000,000 | |||||
Subsequent Event | Student | Maximum | ||||||
Commitments [Abstract] | ||||||
Aggregate purchase principal balance | $ 1,000,000,000 |
COMMITMENTS AND CONTINGENCIE142
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | ||
Commitment amount | $ 58,746 | $ 58,435 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 56,524 | 55,899 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,010 | 2,315 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 42 | 65 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 87 | 75 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 47 | 51 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 26 | 19 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 10 | $ 11 |
DIVESTITURES - Narrative (Detai
DIVESTITURES - Narrative (Details) - Illinois - Disposed of by sale - Retail branches $ in Millions | Jun. 20, 2014USD ($)branch | Dec. 31, 2014USD ($) |
Disposal of Branch Assets and Liabilities [Abstract] | ||
Number of branches sold | branch | 103 | |
Deposit liabilities | $ 4,800 | |
Loans (primarily middle market, small business, home equity and credit card balances) | 1,000 | |
Gain (loss) on sale | 288 | |
Deposits | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | 286 | |
Interest expense on deposits | $ 4 | |
Loans | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | 11 | |
Interest and fee income on loans | $ 20 | |
Other branch assets | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | $ (9) |
RELATED PARTY TRANSACTIONS A144
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Narrative (Details) - USD ($) $ in Millions | Dec. 03, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2015 | |
Related Party Transaction [Line Items] | ||||||
Repayments of long-term borrowed funds | $ 766 | $ 6 | $ 291 | |||
Gains (losses) on extinguishment of debt | $ 3 | 3 | 0 | 0 | ||
Long-term borrowed funds | 9,886 | 4,642 | ||||
Payments of ordinary common stock dividends | 214 | 806 | 1,200 | |||
Dividends Common Stock Exchange Transaction | 666 | 1,000 | ||||
RBSG | ||||||
Related Party Transaction [Line Items] | ||||||
Repayments of long-term borrowed funds | $ 750 | 750 | 0 | 280 | ||
Long-term borrowed funds | 1,250 | 2,000 | ||||
Payments of ordinary common stock dividends | 71 | 124 | 185 | |||
Executive Officers, Family Members, and Their Businesses | ||||||
Related Party Transaction [Line Items] | ||||||
Related party loans | 136 | 126 | ||||
Special Dividend | RBSG | ||||||
Related Party Transaction [Line Items] | ||||||
Dividends Common Stock Exchange Transaction | 666 | $ 1,000 | ||||
Interest rate swaps | Derivatives not designated as hedging instruments | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | [1] | 33,719 | 31,848 | |||
Interest rate swaps | Derivatives not designated as hedging instruments | RBSG | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | 6,500 | 9,800 | ||||
Foreign exchange contracts | RBSG | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | 3,600 | 4,700 | ||||
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||||||
Related Party Transaction [Line Items] | ||||||
Notional amount | [1] | 8,366 | $ 8,359 | |||
Citizens Financial Group, Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term borrowed funds | $ 2,595 | |||||
Subordinated Debt | Citizens Financial Group, Inc. | Purchase commitment | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term borrowed funds | $ 500 | |||||
[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. Notional amounts are 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 A145
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Debt Terms (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 08, 2014 | |
Related Party Transaction [Line Items] | ||||
Long-term borrowed funds | $ 9,886 | $ 4,642 | ||
RBSG | ||||
Related Party Transaction [Line Items] | ||||
Long-term borrowed funds | $ 1,250 | $ 2,000 | ||
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% | 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% | 4.771% | ||
Long-term borrowed funds | $ 0 | $ 333 | ||
Subordinated Debt | RBSG | 4.691% fixed rate subordinated debt, due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 4.691% | 4.691% | ||
Long-term borrowed funds | $ 0 | $ 334 | ||
Subordinated Debt | RBSG | 4.153% fixed rate subordinated debt due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [1] | 4.153% | 4.153% | |
Long-term borrowed funds | $ 250 | $ 333 | ||
Subordinated Debt | RBSG | 4.023% fixed rate subordinated debt, due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 4.023% | 4.023% | ||
Long-term borrowed funds | $ 333 | $ 333 | ||
Subordinated Debt | RBSG | 4.082% fixed rate subordinated debt, due 2025 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | 4.082% | 4.082% | 4.082% | |
Long-term borrowed funds | $ 334 | $ 334 | $ 334 | |
Citizens Financial Group, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Long-term borrowed funds | $ 2,595 | |||
Citizens Financial Group, Inc. | Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2] | 5.158% | ||
Long-term borrowed funds | [2] | $ 333 | 333 | |
Citizens Financial Group, Inc. | Subordinated Debt | 4.771% fixed rate subordinated debt, due 2023 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2] | 4.771% | ||
Long-term borrowed funds | [2] | $ 0 | 333 | |
Citizens Financial Group, Inc. | Subordinated Debt | 4.691% fixed rate subordinated debt, due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2] | 4.691% | ||
Long-term borrowed funds | [2] | $ 0 | 334 | |
Citizens Financial Group, Inc. | Subordinated Debt | 4.153% fixed rate subordinated debt due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2],[3] | 4.153% | ||
Long-term borrowed funds | [2],[3] | $ 250 | 333 | |
Citizens Financial Group, Inc. | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2],[4] | 4.023% | ||
Long-term borrowed funds | [2],[4] | $ 331 | 333 | |
Citizens Financial Group, Inc. | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2],[5] | 4.082% | ||
Long-term borrowed funds | [2],[5] | $ 331 | $ 334 | |
Citizens Financial Group, Inc. | Subordinated Debt | 3.750% fixed rate subordinated debt due 2024 | ||||
Related Party Transaction [Line Items] | ||||
Interest rate | [2],[3] | 3.75% | ||
[1] | Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. | |||
[2] | Borrowed funds with RBS. See Note 19 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||
[3] | Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter. | |||
[4] | $333 million principal balance of subordinated debt reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. | |||
[5] | $334 million principal balance of subordinated debt reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information. |
RELATED PARTY TRANSACTIONS A146
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Transactions, Recorded Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Interest expense on subordinated debt | $ 76 | $ 64 | $ 16 |
RELATED PARTY TRANSACTIONS A147
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Swap Agreements (Details) - Interest rate swaps - Derivatives designated as hedging instruments: - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | [1] | $ 16,750 | $ 5,750 |
RBSG | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | 10,200 | 5,750 | |
RBSG | Receive-fixed swap | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | $ 6,700 | $ 4,750 | |
Minimum fixed interest rate | 0.77% | 1.66% | |
Maximum fixed interest rate | 2.04% | 2.04% | |
RBSG | Pay-fixed swap | |||
Schedule of Related Party Swap Agreements [Line Items] | |||
Notional amount | $ 3,500 | $ 1,000 | |
Minimum fixed interest rate | 1.96% | 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. Notional amounts are 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 A148
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Transactions Effect on Net Interest Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Related Party Transactions Effect on Net Interest Income (Expense) [Line Items] | |||
Interest expense | $ (76) | $ (64) | $ (16) |
RBSG | Interest rate swaps | |||
Schedule of Related Party Transactions Effect on Net Interest Income (Expense) [Line Items] | |||
Interest income | $ 12 | ||
Interest expense | $ (27) | $ (146) |
RELATED PARTY TRANSACTIONS A149
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Transactions, Recorded Income (Expense) (Details) - RBSG - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest rate swaps | |||
Schedule of Related Party Transactions, Recorded Income (Expense) [Line Items] | |||
Derivative expense | $ (105) | $ (209) | $ (32) |
Foreign exchange contracts | |||
Schedule of Related Party Transactions, Recorded Income (Expense) [Line Items] | |||
Foreign exchange and trade finance revenue | $ 19 | $ 58 | $ (15) |
RELATED PARTY TRANSACTIONS A150
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Fee Impact on Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Related Party Fees Effect on Income [Line Items] | |||
The effect of related party service fees on outside services | $ 371 | $ 420 | $ 360 |
RBSG | |||
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 | 10 | 16 | 26 |
The effect of related party service fees on outside services | $ 11 | $ 22 | $ 20 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage banking (expense) income | $ 101,000,000 | $ 71,000,000 | $ 153,000,000 | |
Transfers from Level 3 to Level 2 | $ 5,000,000 | |||
Weighted average life (in years) | 5 years 4 months 24 days | 5 years 2 months 12 days | ||
Weighted average constant prepayment rate | 11.60% | 12.40% | ||
Weighted average discount rate | 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 9 months 18 days | 2 years 9 months 18 days | ||
Weighted average constant prepayment rate | 10.70% | 10.40% | ||
Weighted average discount rate | 9.10% | 9.10% | ||
Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Weighted average life (in years) | 6 years 2 months 12 days | 6 years 7 months 6 days | ||
Weighted average constant prepayment rate | 22.20% | 22.60% | ||
Weighted average discount rate | 12.10% | 12.10% | ||
Residential loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage banking (expense) income | $ (2,000,000) | $ 5,000,000 | (33,000,000) | |
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 | |||
Other noninterest income | $ 3,000,000 | $ 1,000,000 | $ 0 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 325 | $ 256 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 325 | 256 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 268 | 213 |
Aggregate Unpaid Principal | 263 | 206 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 5 | 7 |
Level 2 | Commercial real estate loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 57 | 43 |
Aggregate Unpaid Principal | 57 | 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 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Securities available for sale | [1] | $ 17,884 | $ 18,656 |
Loans held for sale | 325 | 256 | |
Derivative assets | 807 | 790 | |
Money market mutual fund | 65 | 28 | |
Other investments | 5 | 5 | |
Total other investment securities, at fair value | 70 | 33 | |
Total assets | 19,086 | 19,735 | |
Liabilities | |||
Total derivative liabilities | 666 | 773 | |
Total liabilities | 666 | 773 | |
Interest rate swaps | |||
Assets | |||
Derivative assets | 636 | 613 | |
Liabilities | |||
Total derivative liabilities | 505 | 600 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 163 | 170 | |
Liabilities | |||
Total derivative liabilities | 156 | 164 | |
Other contracts | |||
Assets | |||
Derivative assets | 8 | 7 | |
Liabilities | |||
Total derivative liabilities | 5 | 9 | |
Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 17,842 | 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 and other | |||
Assets | |||
Securities available for sale | 16 | 15 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale | 268 | 213 | |
Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | 57 | 43 | |
Level 1 | |||
Assets | |||
Securities available for sale | 15 | 23 | |
Loans held for sale | 0 | 0 | |
Derivative assets | 0 | 0 | |
Money market mutual fund | 65 | 28 | |
Other investments | 0 | 0 | |
Total other investment securities, at fair value | 65 | 28 | |
Total assets | 80 | 51 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Interest rate swaps | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total 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 and other | |||
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 | 17,869 | 18,633 | |
Loans held for sale | 325 | 256 | |
Derivative assets | 807 | 790 | |
Money market mutual fund | 0 | 0 | |
Other investments | 5 | 0 | |
Total other investment securities, at fair value | 5 | 0 | |
Total assets | 19,006 | 19,679 | |
Liabilities | |||
Total derivative liabilities | 666 | 773 | |
Total liabilities | 666 | 773 | |
Level 2 | Interest rate swaps | |||
Assets | |||
Derivative assets | 636 | 613 | |
Liabilities | |||
Total derivative liabilities | 505 | 600 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 163 | 170 | |
Liabilities | |||
Total derivative liabilities | 156 | 164 | |
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 8 | 7 | |
Liabilities | |||
Total derivative liabilities | 5 | 9 | |
Level 2 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 17,842 | 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 and other | |||
Assets | |||
Securities available for sale | 1 | 0 | |
Level 2 | Residential loans held for sale | |||
Assets | |||
Loans held for sale | 268 | 213 | |
Level 2 | Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | 57 | 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 | |
Other investments | 0 | 5 | |
Total other investment securities, at fair value | 0 | 5 | |
Total assets | 0 | 5 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Interest rate swaps | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total 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 and other | |||
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 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sc154
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) - Recurring basis - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning as of January 1 | $ 5 | $ 5 | $ 6 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | (4) |
Settlements | 0 | 0 | 3 |
Net (losses) gains | 0 | 0 | 0 |
Transfers from Level 3 to Level 2 | (5) | 0 | 0 |
Balance as of period end | 0 | 5 | 5 |
Net unrealized gain (loss) included in net income for the year relating to assets held at December 31 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc155
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill | $ 6,876 | $ 6,876 | $ 6,876 | $ 11,300 | |
Goodwill impairment | 0 | 0 | 4,435 | ||
Nonrecurring measurement basis | 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 | (32) | (101) | (83) | ||
Nonrecurring measurement basis | 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 | 9 | 5 | 47 | ||
Nonrecurring measurement basis | Foreclosed assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | (3) | (3) | (4) | ||
Nonrecurring measurement basis | Goodwill impairment | |||||
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] | $ 0 | $ 0 | $ (4,435) | |
[1] | In the year ended December 31, 2013, Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion, resulting in an impairment charge of $4.4 billion. |
FAIR VALUE MEASUREMENTS - Sc156
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 60 | $ 102 |
MSRs | 178 | 166 |
Foreclosed assets | 42 | 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 | 60 | 102 |
MSRs | 0 | 0 |
Foreclosed assets | 42 | 40 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 178 | 166 |
Foreclosed assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc157
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | [1] | $ 5,258 | $ 5,148 |
Securities held-to-maturity, fair value | 5,297 | 5,193 | |
Other investment securities, at cost, carrying value | 863 | 867 | |
Other investment securities, at cost, fair value | 863 | 867 | |
Other loans held for sale, carrying value | 40 | 25 | |
Other loans held for sale, fair value | 40 | 25 | |
Loans and leases, carrying value | 99,042 | 93,410 | |
Loans and leases, fair value | 99,026 | 93,674 | |
Deposits, carrying value | 102,539 | 95,707 | |
Deposits, fair value | 102,528 | 95,710 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 802 | 4,276 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 802 | 4,276 | |
Other short-term borrowed funds, carrying value | 2,630 | 6,253 | |
Other short-term borrowed funds, fair value | 2,630 | 6,253 | |
Long-term borrowed funds, carrying value | 9,886 | 4,642 | |
Long-term borrowed funds, fair value | 9,837 | 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 | 5,258 | 5,148 | |
Securities held-to-maturity, fair value | 5,297 | 5,193 | |
Other investment securities, at cost, carrying value | 863 | 867 | |
Other investment securities, at cost, fair value | 863 | 867 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 60 | 102 | |
Loans and leases, fair value | 60 | 102 | |
Deposits, carrying value | 102,539 | 95,707 | |
Deposits, fair value | 102,528 | 95,710 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 802 | 4,276 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 802 | 4,276 | |
Other short-term borrowed funds, carrying value | 2,630 | 6,253 | |
Other short-term borrowed funds, fair value | 2,630 | 6,253 | |
Long-term borrowed funds, carrying value | 9,886 | 4,642 | |
Long-term borrowed funds, fair value | 9,837 | 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 | 40 | 25 | |
Other loans held for sale, fair value | 40 | 25 | |
Loans and leases, carrying value | 98,982 | 93,308 | |
Loans and leases, fair value | 98,966 | 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 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) $ in Millions | Aug. 03, 2015shares | Apr. 07, 2015shares | Dec. 31, 2015USD ($)subsidiaryshares |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividends | $ 214 | ||
Dividend to preferred stockholders | $ 7 | ||
Bank subsidiaries | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Number of financial subsidiaries | subsidiary | 2 | ||
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 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | |||
Actual | [1] | $ 13,389 | |
Minimum Capital Adequacy | [1] | 5,134 | |
Classification as Well-capitalized | [1] | $ 7,415 | |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | |||
Actual | [1] | 11.70% | |
Minimum Capital Adequacy | [1] | 4.50% | |
Classification as Well-capitalized | [1] | 6.50% | |
Tier 1 Common Equity to Risk-Weighted Assets | |||
Tier 1 Common Equity | [1] | $ 13,173 | |
Tier One Common Equity To Risk Weighted Assets | [1] | 12.40% | |
Tier 1 Capital to Risk-Weighted Assets (Amount) | |||
Actual | [2] | $ 13,636 | $ 13,173 |
Minimum Capital Adequacy | [2] | 6,845 | 4,239 |
Classification as Well-capitalized | [2] | $ 9,127 | $ 6,358 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [2] | 12.00% | 12.40% |
Minimum Capital Adequacy | [2] | 6.00% | 4.00% |
Classification as Well-capitalized | [2] | 8.00% | 6.00% |
Total Capital to Risk-Weighted Assets (Amount) | |||
Actual | [3] | $ 17,505 | $ 16,781 |
Minimum Capital Adequacy | [3] | 9,127 | 8,477 |
Classification as Well-capitalized | [3] | $ 11,408 | $ 10,596 |
Total Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [3] | 15.30% | 15.80% |
Minimum Capital Adequacy | [3] | 8.00% | 8.00% |
Classification as Well-capitalized | [3] | 10.00% | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | |||
Actual | [4] | $ 13,636 | $ 13,173 |
Minimum Capital Adequacy | [4] | 5,218 | 4,982 |
Classification as Well-capitalized | [4] | $ 6,523 | $ 6,227 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | |||
Actual | [4] | 10.50% | 10.60% |
Minimum Capital Adequacy | [4] | 4.00% | 4.00% |
Classification as Well-capitalized | [4] | 5.00% | 5.00% |
[1] | CET1 under Basel III replaced the concept of tier 1 common capital that existed under Basel I effective January 1, 2015. “Common equity tier 1 capital ratio” as of December 31, 2015 represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 common capital ratio” reported prior to January 1, 2015, represented tier 1 common equity divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. | ||
[2] | “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. The “tier 1 capital ratio” reported prior to January 1, 2015, represented tier 1 capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. | ||
[3] | “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. The “Total capital ratio” reported prior to January 1, 2015, represented total capital divided by total risk-weighted assets as defined under the Basel I general risk-based capital rule. | ||
[4] | “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. The “tier 1 leverage ratio” reported prior to January 1, 2015, represented tier 1 capital divided by quarterly average total assets as defined under the Basel I general risk-based capital rule. |
EXIT COSTS AND RESTRUCTURING160
EXIT COSTS AND RESTRUCTURING RESERVES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 26 | $ 101 | |
Restructuring charges incurred | 31 | 124 | $ 31 |
Outside Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 8 | 24 | |
Salaries & Employee Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1 | ||
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 | 6 |
Facility Closing | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 17 | 18 | |
Restructuring charges incurred | $ 18 | 24 | $ 22 |
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 RESTRUCTURING161
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 44 | $ 26 | $ 30 |
Additions | 31 | 124 | 31 |
Reversals | (5) | (10) | (5) |
Utilization | (37) | (96) | (30) |
Ending balance | 33 | 44 | 26 |
Employee Severance | Salaries & Employee Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 23 | 2 | 3 |
Additions | 5 | 43 | 6 |
Reversals | (4) | (1) | (1) |
Utilization | (12) | (21) | (6) |
Ending balance | 12 | 23 | 2 |
Facility Closing | Occupancy & Equipment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 18 | 24 | 27 |
Additions | 18 | 24 | 22 |
Reversals | (1) | (5) | (4) |
Utilization | (19) | (25) | (21) |
Ending balance | 16 | 18 | 24 |
Other Restructuring | Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 3 | 0 | 0 |
Additions | 8 | 57 | 3 |
Reversals | 0 | (4) | 0 |
Utilization | (6) | (50) | (3) |
Ending balance | $ 5 | $ 3 | $ 0 |
RECLASSIFICATIONS OUT OF ACC162
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ (372) | $ (648) | $ (312) |
Other comprehensive income (loss) before reclassifications | 27 | 410 | (457) |
Other-than-temporary impairment not recognized in earnings on securities | (22) | (22) | (26) |
Amounts reclassified from other comprehensive (loss) income | (20) | (112) | 147 |
Net other comprehensive (loss) income | (15) | 276 | (336) |
Ending balance | (387) | (372) | (648) |
Net Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (69) | (298) | (240) |
Other comprehensive income (loss) before reclassifications | 93 | 212 | (172) |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | (14) | 17 | 114 |
Net other comprehensive (loss) income | 79 | 229 | (58) |
Ending balance | 10 | (69) | (298) |
Net Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 74 | (91) | 306 |
Other comprehensive income (loss) before reclassifications | (66) | 198 | (285) |
Other-than-temporary impairment not recognized in earnings on securities | (22) | (22) | (26) |
Amounts reclassified from other comprehensive (loss) income | (14) | (11) | (86) |
Net other comprehensive (loss) income | (102) | 165 | (397) |
Ending balance | (28) | 74 | (91) |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (377) | (259) | (378) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | 8 | (118) | 119 |
Net other comprehensive (loss) income | 8 | (118) | 119 |
Ending balance | $ (369) | $ (377) | $ (259) |
RECLASSIFICATIONS OUT OF ACC163
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | $ 626 | $ 624 | $ 488 | |
Interest expense | (452) | (363) | (443) | |
Net securities impairment losses recognized in earnings | (7) | (10) | (8) | |
Salaries and employee benefits | (1,636) | (1,678) | (1,652) | |
Income (loss) before income tax expense (benefit) | 1,263 | 1,268 | (3,468) | |
Income tax expense (benefit) | 423 | 403 | (42) | |
NET INCOME (LOSS) | 840 | 865 | (3,426) | |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | 17 | 71 | (87) | |
NET INCOME (LOSS) | 20 | 112 | (147) | |
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] | 82 | 72 | 56 |
Interest expense | [1] | (59) | (99) | (235) |
Other Income | 0 | 0 | (1) | |
Income (loss) before income tax expense (benefit) | 23 | (27) | (180) | |
Income tax expense (benefit) | 9 | (10) | (66) | |
NET INCOME (LOSS) | 14 | (17) | (114) | |
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 | 29 | 28 | 144 | |
Net securities impairment losses recognized in earnings | (7) | (10) | (8) | |
Income (loss) before income tax expense (benefit) | 22 | 18 | 136 | |
Income tax expense (benefit) | 8 | 7 | 50 | |
NET INCOME (LOSS) | 14 | 11 | 86 | |
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 | (8) | 192 | (190) | |
Income (loss) before income tax expense (benefit) | (8) | 192 | (190) | |
Income tax expense (benefit) | 0 | 74 | (71) | |
NET INCOME (LOSS) | $ (8) | $ 118 | $ (119) | |
[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 ACC164
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Effects to Net Income of Amounts Reclassified Out of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | $ 3,402 | $ 3,301 | $ 3,058 |
Provision for credit losses | 302 | 319 | 479 |
Noninterest income | 1,422 | 1,678 | 1,632 |
Noninterest expense | 3,259 | 3,392 | 7,679 |
Income (loss) before income tax expense (benefit) | 1,263 | 1,268 | (3,468) |
Income tax expense (benefit) | 423 | 403 | (42) |
NET INCOME (LOSS) | 840 | 865 | (3,426) |
Amount Reclassified from OCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | 3,402 | 3,301 | 3,058 |
Provision for credit losses | 302 | 319 | 479 |
Noninterest income | 1,422 | 1,678 | 1,632 |
Noninterest expense | 3,259 | 3,392 | 7,679 |
Income (loss) before income tax expense (benefit) | 1,263 | 1,268 | (3,468) |
Income tax expense (benefit) | 423 | 403 | (42) |
NET INCOME (LOSS) | 840 | 865 | (3,426) |
Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | 23 | (27) | (179) |
Noninterest income | 22 | 18 | 135 |
Noninterest expense | 8 | (192) | 190 |
Income tax expense (benefit) | 17 | 71 | (87) |
NET INCOME (LOSS) | $ 20 | $ 112 | $ (147) |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of segments | segment | 2 | ||
Revenues | $ 4,824 | $ 4,979 | $ 4,690 |
Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,108 | 3,050 | 3,201 |
Consumer Banking | Maximum | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25 | ||
Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,577 | $ 1,502 | $ 1,420 |
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 3,402 | $ 3,301 | $ 3,058 |
Noninterest income | 1,422 | 1,678 | 1,632 |
Total revenue | 4,824 | 4,979 | 4,690 |
Noninterest expense | 3,259 | 3,392 | 7,679 |
Profit (loss) before provision for credit losses | 1,565 | 1,587 | (2,989) |
Provision for credit losses | 302 | 319 | 479 |
Income (loss) before income tax expense (benefit) | 1,263 | 1,268 | (3,468) |
Income tax expense | 423 | 403 | (42) |
NET INCOME (LOSS) | 840 | 865 | (3,426) |
Total average assets | 135,070 | 127,624 | 120,866 |
Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,198 | 2,151 | 2,176 |
Noninterest income | 910 | 899 | 1,025 |
Total revenue | 3,108 | 3,050 | 3,201 |
Noninterest expense | 2,456 | 2,513 | 2,522 |
Profit (loss) before provision for credit losses | 652 | 537 | 679 |
Provision for credit losses | 252 | 259 | 308 |
Income (loss) before income tax expense (benefit) | 400 | 278 | 371 |
Income tax expense | 138 | 96 | 129 |
NET INCOME (LOSS) | 262 | 182 | 242 |
Total average assets | 52,848 | 48,939 | 46,465 |
Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 1,162 | 1,073 | 1,031 |
Noninterest income | 415 | 429 | 389 |
Total revenue | 1,577 | 1,502 | 1,420 |
Noninterest expense | 709 | 652 | 635 |
Profit (loss) before provision for credit losses | 868 | 850 | 785 |
Provision for credit losses | (13) | (6) | (7) |
Income (loss) before income tax expense (benefit) | 881 | 856 | 792 |
Income tax expense | 302 | 295 | 278 |
NET INCOME (LOSS) | 579 | 561 | 514 |
Total average assets | 42,800 | 38,483 | 35,229 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 42 | 77 | (149) |
Noninterest income | 97 | 350 | 218 |
Total revenue | 139 | 427 | 69 |
Noninterest expense | 94 | 227 | 4,522 |
Profit (loss) before provision for credit losses | 45 | 200 | (4,453) |
Provision for credit losses | 63 | 66 | 178 |
Income (loss) before income tax expense (benefit) | (18) | 134 | (4,631) |
Income tax expense | (17) | 12 | (449) |
NET INCOME (LOSS) | (1) | 122 | (4,182) |
Total average assets | $ 39,422 | $ 40,202 | $ 39,172 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 60,652,066 | ||
Compensation expense related to share-based plans | $ 24,000,000 | $ 53,000,000 | $ 27,000,000 |
Share-based compensation not yet recognized | $ 11,000,000 | ||
Unrecognized compensation expense, weighted-average period of recognition | 2 years | ||
Tax benefit recognized in earnings for share-based compensation arrangements | $ 5,000,000 | $ 17,000,000 | |
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% | ||
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 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Citizens Share Awards | |||
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 5,595,882 | 0 | |
Conversion to CFG Shares | 0 | (5,774,504) | |
Granted (in shares) | 1,315,572 | 209,099 | |
Vested (in shares) | (2,496,092) | (161,067) | |
Forfeited (in shares) | (987,232) | (226,654) | |
Nonvested, End of period (in shares) | 3,428,130 | 5,595,882 | 0 |
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $ 21.52 | $ 0 | |
Conversion to CFG Shares In (Out) (in dollars per share) | 0 | 21.50 | |
Granted (in dollars per share) | 25.18 | 24.87 | |
Vested (in dollars per share) | 22.15 | 25.07 | |
Forfeited (in dollars per share) | 21.58 | 21.50 | |
Nonvested, End of period (in dollars per share) | $ 22.43 | $ 21.52 | $ 0 |
RBS Share Awards | |||
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 0 | 19,778,967 | 22,865,810 |
Conversion to CFG Shares | (19,390,752) | 0 | |
Granted (in shares) | 9,627,635 | 6,363,919 | |
Vested (in shares) | (6,040,806) | (4,208,789) | |
Forfeited (in shares) | (3,975,044) | (5,241,973) | |
Nonvested, End of period (in shares) | 0 | 19,778,967 | |
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $ 0 | $ 5.31 | $ 6.14 |
Conversion to CFG Shares In (Out) (in dollars per share) | 4.84 | 0 | |
Granted (in dollars per share) | 5.48 | 4.66 | |
Vested (in dollars per share) | 6.14 | 6.68 | |
Forfeited (in dollars per share) | 6.73 | 7.03 | |
Nonvested, End of period (in dollars per share) | $ 0 | $ 5.31 |
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator (basic and diluted): | |||
Net income (loss) | $ 840 | $ 865 | $ (3,426) |
Less: Preferred stock dividends | 7 | 0 | 0 |
Net income (loss) available to common stockholders | $ 833 | $ 865 | $ (3,426) |
Denominator: | |||
Weighted-average common shares outstanding - basic (in Shares) | 535,599,731 | 556,674,146 | 559,998,324 |
Dilutive common shares: share-based awards (in Shares) | 2,621,167 | 1,050,790 | 0 |
Weighted-average common shares outstanding - diluted (in Shares) | 538,220,898 | 557,724,936 | 559,998,324 |
Earnings (loss) per common share: | |||
Basic (in Dollars per Share) | $ 1.55 | $ 1.55 | $ (6.12) |
Diluted (in Dollars per Share) | $ 1.55 | $ 1.55 | $ (6.12) |
PARENT COMPANY ONLY FINANCIA171
PARENT COMPANY ONLY FINANCIALS - Condensed Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Income | |||
Interest income | $ 626 | $ 624 | $ 488 |
Total interest income | 3,854 | 3,664 | 3,501 |
Operating expense | |||
Salaries and employee benefits | 1,636 | 1,678 | 1,652 |
Interest expense | 452 | 363 | 443 |
All other expenses | 530 | 573 | 528 |
Applicable income taxes | 423 | 403 | (42) |
Net income (loss) | 840 | 865 | (3,426) |
Other comprehensive (loss) income, net of income taxes | |||
Reclassification of net securities gains to net income, net of income taxes of ($8), ($7), and ($50), respectively | (14) | (11) | (86) |
Net unrealized securities (losses) gains arising during the period | (66) | 198 | (285) |
Other comprehensive income activity of the Parent Company Only, net of income taxes | (15) | 276 | (336) |
Total other comprehensive (loss) income, net of income taxes | (15) | 276 | (336) |
Total comprehensive income (loss) | 825 | 1,141 | (3,762) |
Payments of ordinary common stock dividends | 214 | 806 | 1,200 |
Parent company | |||
Operating Income | |||
Dividends | 345 | 595 | 210 |
Interest income | 54 | 29 | 13 |
Management and service fees | 20 | 21 | 26 |
Securities gains | 3 | 0 | 0 |
All other operating income | 4 | 5 | 2 |
Total interest income | 426 | 650 | 251 |
Operating expense | |||
Salaries and employee benefits | 15 | 63 | 38 |
Interest expense | 108 | 80 | 24 |
All other expenses | 38 | 123 | 43 |
Total operating expense | 161 | 266 | 105 |
Income before taxes and undistributed income | 265 | 384 | 146 |
Applicable income taxes | (29) | (77) | (22) |
Income before undistributed income of subsidiaries and associated companies | 294 | 461 | 168 |
Equity in undistributed income (losses) of subsidiaries and associated companies | 546 | 404 | (3,594) |
Net income (loss) | 840 | 865 | (3,426) |
Other comprehensive (loss) income, net of income taxes | |||
Net pension plan activity arising during the period | 1 | 8 | 17 |
Reclassification of net securities gains to net income, net of income taxes of ($8), ($7), and ($50), respectively | 2 | 0 | 1 |
Net unrealized securities (losses) gains arising during the period | (2) | 1 | 0 |
Other comprehensive income activity of the Parent Company Only, net of income taxes | 1 | 9 | 18 |
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | (16) | 267 | (354) |
Total other comprehensive (loss) income, net of income taxes | (15) | 276 | (336) |
Total comprehensive income (loss) | 825 | 1,141 | (3,762) |
Bank Subsidiaries and Associated Banks | Parent company | |||
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | 543 | 402 | (3,595) |
Nonbank Subsidiaries and Associated Nonbank Companies | Parent company | |||
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | $ 3 | $ 2 | $ 1 |
PARENT COMPANY ONLY FINANCIA172
PARENT COMPANY ONLY FINANCIALS - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS: | ||||
Cash and due from banks | $ 1,099 | $ 1,171 | ||
Balances due from RBS | 6 | 0 | ||
Other assets | 2,841 | 2,384 | ||
TOTAL ASSETS | 138,208 | 132,857 | ||
LIABILITIES: | ||||
Long-term borrowed funds | 9,886 | 4,642 | ||
Other liabilities | 1,490 | 1,606 | ||
TOTAL LIABILITIES | 118,562 | 113,589 | ||
TOTAL STOCKHOLDERS’ EQUITY | 19,646 | 19,268 | $ 19,196 | $ 24,129 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 138,208 | 132,857 | ||
Parent company | ||||
ASSETS: | ||||
Cash and due from banks | 531 | 280 | ||
Other assets | 154 | 214 | ||
TOTAL ASSETS | 22,335 | 21,763 | ||
LIABILITIES: | ||||
Balances due | 3 | 2 | ||
Other liabilities | 90 | 143 | ||
TOTAL LIABILITIES | 2,689 | 2,495 | ||
TOTAL STOCKHOLDERS’ EQUITY | 19,646 | 19,268 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 22,335 | 21,763 | ||
Bank subsidiaries | Parent company | ||||
ASSETS: | ||||
Loans and advances | 1,725 | 1,685 | ||
Investments in subsidiaries | 19,865 | 19,512 | ||
Nonbank subsidiaries | Parent company | ||||
ASSETS: | ||||
Investments in subsidiaries | 54 | 72 | ||
LIABILITIES: | ||||
Balances due | 1 | 0 | ||
Unaffiliated companies | Parent company | ||||
LIABILITIES: | ||||
Long-term borrowed funds | 1,345 | 350 | ||
Related bank holding companies | Parent company | ||||
LIABILITIES: | ||||
Long-term borrowed funds | $ 1,250 | $ 2,000 |
PARENT COMPANY ONLY FINANCIA173
PARENT COMPANY ONLY FINANCIALS - Condensed Cash Flow Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 840 | $ 865 | $ (3,426) |
Deferred income taxes | 249 | 141 | (53) |
Gain on sales of assets | 0 | 9 | 0 |
Net change in other liabilities | (161) | 239 | (398) |
Net change in other assets | (467) | (295) | 827 |
Net cash provided by operating activities | 1,229 | 1,390 | 2,649 |
INVESTING ACTIVITIES | |||
Net cash used in investing activities | (5,905) | (10,274) | (2,453) |
FINANCING ACTIVITIES | |||
Repayments of long-term borrowed funds (related party balances of $750, $0 and $280, respectively) | (766) | (6) | (291) |
Repurchase of common stock | (500) | (334) | 0 |
Proceeds from issuance of preferred stock | 247 | 0 | 0 |
Dividends paid | (71) | (790) | (1,185) |
Net cash provided by (used in) financing activities | 4,485 | 9,403 | (502) |
Cash and cash equivalents at beginning of period | 3,276 | 2,757 | 3,063 |
(Decrease) increase in cash and cash equivalents | (191) | 519 | (306) |
Cash and cash equivalents at end of period | 3,085 | 3,276 | 2,757 |
Parent company | |||
OPERATING ACTIVITIES | |||
Net income (loss) | 840 | 865 | (3,426) |
Deferred income taxes | 49 | 27 | (11) |
Gain on sales of assets | (3) | 0 | 0 |
Equity in undistributed (earnings) losses of subsidiaries | (546) | (404) | 3,594 |
Net change in other liabilities | (48) | 18 | 7 |
Net change in other assets | (16) | (74) | 15 |
Other operating, net | 3 | 17 | 1 |
Total adjustments | (561) | (416) | 3,606 |
Net cash provided by operating activities | 279 | 449 | 180 |
INVESTING ACTIVITIES | |||
Proceeds from sales and maturities of securities available for sale | 8 | 0 | 0 |
Payments for investments in and advances to subsidiaries | (215) | (1,470) | (220) |
Sale or repayment of investments in and advances to subsidiaries | 376 | 945 | 315 |
Other investing, net | 0 | (11) | (1) |
Net cash used in investing activities | 169 | (536) | 94 |
FINANCING ACTIVITIES | |||
Repayment of advances from subsidiaries | 0 | 0 | (289) |
Proceeds from issuance of long-term debt | 1,000 | 1,000 | 1,000 |
Repayments of long-term borrowed funds (related party balances of $750, $0 and $280, respectively) | (750) | 0 | 0 |
Proceeds from issuance of common stock | 27 | 13 | 0 |
Repurchase of common stock | (500) | (334) | 0 |
Proceeds from issuance of preferred stock | 247 | 0 | 0 |
Dividends paid | (221) | (806) | (1,185) |
Net cash provided by (used in) financing activities | (197) | (127) | (474) |
Cash and cash equivalents at beginning of period | 280 | 494 | 694 |
(Decrease) increase in cash and cash equivalents | 251 | (214) | (200) |
Cash and cash equivalents at end of period | $ 531 | $ 280 | $ 494 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Deposit insurance | $ 115 | $ 95 | $ 85 |
Promotional expense | 101 | 86 | 76 |
Settlements and operating losses | 43 | 89 | 51 |
Postage and delivery | 46 | 48 | 60 |
Other | 225 | 255 | 256 |
Other operating expense | $ 530 | $ 573 | $ 528 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) | Feb. 25, 2016 | Jan. 22, 2016 | Jan. 08, 2016 | Jan. 07, 2016 | Apr. 06, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||
Dividends declared and paid (in dollars per Share) | $ 0.4 | $ 1.43 | $ 2.12 | |||||
Dividends paid to common stockholders | $ 143,000,000 | $ 16,000,000 | ||||||
Dividends | 214,000,000 | |||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared and paid (in dollars per Share) | $ 0.10 | |||||||
Dividends paid to common stockholders | $ 53,000,000 | |||||||
Student | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Termination fee | $ 1,000,000 | |||||||
Minimum | Student | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Minimum quarterly purchase commitment | 125,000,000 | |||||||
Aggregate purchase principal balance | 500,000,000 | |||||||
Maximum | Student | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Aggregate purchase principal balance | $ 1,000,000,000 | |||||||
Student loan | ||||||||
Subsequent Event [Line Items] | ||||||||
Loans purchased during period | $ 957,000,000 | $ 59,000,000 | ||||||
Student loan | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Loans purchased during period | $ 369,000,000 | |||||||
Series A Preferred Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, dividend rate | 5.50% | |||||||
Series A Preferred Stock | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock, dividend rate | 5.50% | |||||||
Preferred stock dividend declared (in dollars per share) | $ 27.50 | |||||||
Dividends | $ 7,000,000 |