Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 759,944 | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 519,470,882 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
ASSETS: | |||
Cash and due from banks | $ 976 | $ 1,099 | |
Interest-bearing cash and due from banks | 2,679 | 1,986 | |
Interest-bearing deposits in banks | 727 | 356 | |
Securities available for sale, at fair value (including $245 and $4,283 pledged to creditors, respectively) | [1] | 18,479 | 17,884 |
Securities held to maturity (including $0 and $135 pledged to creditors, respectively, and fair value of $5,136 and $5,297, respectively) | [1] | 4,973 | 5,258 |
Other investment securities, at fair value | 73 | 70 | |
Other investment securities, at cost | 873 | 863 | |
Loans held for sale, at fair value | 478 | 325 | |
Other loans held for sale | 372 | 40 | |
Loans and leases | 103,551 | 99,042 | |
Less: Allowance for loan and lease losses | 1,246 | 1,216 | |
Net loans and leases | 102,305 | 97,826 | |
Derivative assets | 1,312 | 625 | |
Premises and equipment, net | 551 | 595 | |
Bank-owned life insurance | 1,587 | 1,564 | |
Goodwill | 6,876 | 6,876 | |
Due from broker | 132 | 0 | |
Other assets | 2,790 | 2,841 | |
TOTAL ASSETS | 145,183 | 138,208 | |
LIABILITIES: | |||
Noninterest-bearing | 27,108 | 27,649 | |
Interest-bearing | 79,149 | 74,890 | |
Total deposits | 106,257 | 102,539 | |
Federal funds purchased and securities sold under agreements to repurchase | 717 | 802 | |
Other short-term borrowed funds | 2,770 | 2,630 | |
Derivative liabilities | 1,010 | 485 | |
Deferred taxes, net | 961 | 730 | |
Long-term borrowed funds | 11,810 | 9,886 | |
Due to broker | 86 | 0 | |
Other liabilities | 1,346 | 1,490 | |
TOTAL LIABILITIES | 124,957 | 118,562 | |
Contingencies | |||
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 June 30, 2016, and December 31, 2015 | 247 | 247 | |
Common stock: $0.01 par value, 1,000,000,000 shares authorized, 564,437,963 shares issued and 529,094,976 shares outstanding at June 30, 2016 and 1,000,000,000 shares authorized, 563,117,415 shares issued and 527,774,428 shares outstanding at December 31, 2015 | 6 | 6 | |
Additional paid-in capital | 18,735 | 18,725 | |
Retained Earnings (Accumulated Deficit) | 2,255 | 1,913 | |
Treasury Stock, at cost, 35,342,987 shares at June 30, 2016 and December 31, 2015, respectively | (858) | (858) | |
Accumulated other comprehensive loss | (159) | (387) | |
TOTAL STOCKHOLDERS’ EQUITY | 20,226 | 19,646 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 145,183 | $ 138,208 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 5,136 | $ 5,297 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
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) | 564,437,963 | 563,117,415 |
Common stock, outstanding (in shares) | 529,094,976 | 527,774,428 |
Treasury stock (in shares) | 35,342,987 | 35,342,987 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 250,000 | 250,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Available-for-sale Securities | ||
ASSETS: | ||
Securities, pledged as collateral | $ 245 | $ 4,283 |
Held-to-maturity Securities | ||
ASSETS: | ||
Securities, pledged as collateral | $ 0 | $ 135 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 896 | $ 790 | $ 1,764 | $ 1,569 |
Interest and fees on loans held for sale, at fair value | 3 | 3 | 6 | 5 |
Interest and fees on other loans held for sale | 4 | 3 | 5 | 4 |
Investment securities | 141 | 155 | 286 | 314 |
Interest-bearing deposits in banks | 2 | 1 | 4 | 2 |
Total interest income | 1,046 | 952 | 2,065 | 1,894 |
INTEREST EXPENSE: | ||||
Deposits | 63 | 60 | 123 | 112 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 2 | 1 | 9 |
Other short-term borrowed funds | 12 | 19 | 23 | 34 |
Long-term borrowed funds | 48 | 31 | 91 | 63 |
Total interest expense | 123 | 112 | 238 | 218 |
Net interest income | 923 | 840 | 1,827 | 1,676 |
Provision for credit losses | 90 | 77 | 181 | 135 |
Net interest income after provision for credit losses | 833 | 763 | 1,646 | 1,541 |
NONINTEREST INCOME: | ||||
Service charges and fees | 150 | 139 | 294 | 274 |
Card fees | 51 | 60 | 101 | 112 |
Trust and investment services fees | 38 | 41 | 75 | 77 |
Capital markets fees | 35 | 30 | 57 | 52 |
Foreign exchange and letter of credit fees | 21 | 22 | 42 | 45 |
Mortgage banking fees | 25 | 30 | 43 | 63 |
Bank-owned life insurance income | 13 | 14 | 26 | 26 |
Securities gains, net | 4 | 9 | 13 | 17 |
Net securities impairment losses recognized in earnings | (7) | (2) | (8) | (3) |
Other income | 25 | 17 | 42 | 44 |
Total noninterest income | 355 | 360 | 685 | 707 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 432 | 411 | 857 | 830 |
Outside services | 86 | 99 | 177 | 178 |
Occupancy | 76 | 90 | 152 | 170 |
Equipment expense | 64 | 65 | 129 | 128 |
Amortization of software | 41 | 37 | 80 | 73 |
Other operating expense | 128 | 139 | 243 | 272 |
Total noninterest expense | 827 | 841 | 1,638 | 1,651 |
Income before income tax expense | 361 | 282 | 693 | 597 |
Income tax expense | 118 | 92 | 227 | 198 |
NET INCOME | 243 | 190 | 466 | 399 |
Net income available to common stockholders | $ 243 | $ 190 | $ 459 | $ 399 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 528,968,330 | 537,729,248 | 528,519,489 | 541,986,653 |
Diluted (in Shares) | 530,365,203 | 539,909,366 | 530,396,871 | 544,804,268 |
Per common share information: | ||||
Basic earnings (in Dollars per Share) | $ 0.46 | $ 0.35 | $ 0.87 | $ 0.74 |
Diluted earnings (in Dollars per Share) | 0.46 | 0.35 | 0.87 | 0.73 |
Dividends declared and paid (in Dollars per Share) | $ 0.12 | $ 0.10 | $ 0.22 | $ 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 243 | $ 190 | $ 466 | $ 399 |
Other comprehensive income (loss): | ||||
Net unrealized derivative instrument gains (losses) arising during the periods, net of income taxes of $8, ($3), $29 and $36, respectively | 13 | (5) | 46 | 60 |
Reclassification adjustment for net derivative gains included in net income, net of income taxes of ($4), ($1), ($10) and ($2), respectively | (9) | (2) | (17) | (4) |
Net unrealized securities available for sale gains (losses) arising during the periods, net of income taxes of $39, ($66), $131 and ($12), respectively | 64 | (110) | 218 | (20) |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $2, $0, ($13) and ($11), respectively | 4 | 1 | (21) | (18) |
Reclassification of net securities losses (gains) to net income, net of income taxes of $1, ($2), ($2) and ($5), respectively | 2 | (5) | (3) | (9) |
Defined benefit pension plans: | ||||
Amortization of actuarial loss, net of income taxes of $1, $2, $3 and $3, respectively | 3 | 2 | 5 | 4 |
Total other comprehensive income (loss), net of income taxes | 77 | (119) | 228 | 13 |
Total comprehensive income | $ 320 | $ 71 | $ 694 | $ 412 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument gains arising during the periods, tax | $ 8 | $ (3) | $ 29 | $ 36 |
Reclassification adjustment for net derivative gains included in net income, tax | (4) | (1) | (10) | (2) |
Net unrealized securities available for sale gains arising during the periods, tax | 39 | (66) | 131 | (12) |
Other-than-temporary impairment not recognized in earnings on securities, tax | 2 | 0 | (13) | (11) |
Reclassification of net securities gains to net income, tax | 1 | (2) | (2) | (5) |
Amortization of actuarial loss, tax | $ 1 | $ 2 | $ 3 | $ 3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2014 | 0 | 546 | |||||
Beginning balance at Dec. 31, 2014 | $ 19,268 | $ 0 | $ 6 | $ 18,676 | $ 1,294 | $ (336) | $ (372) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (48) | (48) | |||||
Dividends to RBS | (60) | (60) | |||||
Issuance of preferred stock (in shares) | 0 | ||||||
Issuance of preferred stock, value | 247 | $ 247 | |||||
Treasury stock purchased (in shares) | (10) | ||||||
Treasury stock purchased | (250) | (250) | |||||
Share-based compensation plans (in shares) | 1 | ||||||
Share-based compensation plans | 13 | 34 | (21) | ||||
Employee stock purchase plan shares purchased | 4 | 4 | |||||
Total comprehensive income: | |||||||
Net income | 399 | 399 | |||||
Other comprehensive income | 13 | 13 | |||||
Total comprehensive income | 412 | 399 | 13 | ||||
Ending balance (in shares) at Jun. 30, 2015 | 0 | 537 | |||||
Ending balance at Jun. 30, 2015 | 19,586 | $ 247 | $ 6 | 18,714 | 1,585 | (607) | (359) |
Beginning balance at Mar. 31, 2015 | (240) | ||||||
Total comprehensive income: | |||||||
Other comprehensive income | (119) | ||||||
Total comprehensive income | 71 | ||||||
Ending balance (in shares) at Jun. 30, 2015 | 0 | 537 | |||||
Ending balance at Jun. 30, 2015 | 19,586 | $ 247 | $ 6 | 18,714 | 1,585 | (607) | (359) |
Beginning balance (in shares) at Dec. 31, 2015 | 0 | 528 | |||||
Beginning balance at Dec. 31, 2015 | 19,646 | $ 247 | $ 6 | 18,725 | 1,913 | (858) | (387) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (117) | (117) | |||||
Dividend to preferred stockholders | (7) | (7) | |||||
Share-based compensation plans (in shares) | 1 | ||||||
Share-based compensation plans | 5 | 5 | |||||
Employee stock purchase plan shares purchased | 5 | 5 | |||||
Total comprehensive income: | |||||||
Net income | 466 | 466 | |||||
Other comprehensive income | 228 | 228 | |||||
Total comprehensive income | 694 | 466 | 228 | ||||
Ending balance (in shares) at Jun. 30, 2016 | 0 | 529 | |||||
Ending balance at Jun. 30, 2016 | 20,226 | $ 247 | $ 6 | 18,735 | 2,255 | (858) | (159) |
Beginning balance at Mar. 31, 2016 | (236) | ||||||
Total comprehensive income: | |||||||
Other comprehensive income | 77 | ||||||
Total comprehensive income | 320 | ||||||
Ending balance (in shares) at Jun. 30, 2016 | 0 | 529 | |||||
Ending balance at Jun. 30, 2016 | $ 20,226 | $ 247 | $ 6 | $ 18,735 | $ 2,255 | $ (858) | $ (159) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||||
Net income | $ 466 | $ 399 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses | 181 | 135 | |||
Originations of mortgage loans held for sale | (1,135) | (1,182) | |||
Proceeds from sales of mortgage loans held for sale | 1,022 | 1,111 | |||
Purchases of commercial loans held for sale | (735) | (632) | |||
Proceeds from sales of commercial loans held for sale | 739 | 594 | |||
Amortization of terminated cash flow hedges | 16 | 9 | |||
Depreciation, amortization and accretion | 245 | 234 | |||
Mortgage servicing rights valuation charge-off (recovery) | $ (1) | $ (6) | 4 | (7) | |
Securities impairment | 7 | 2 | 8 | 3 | |
Deferred income taxes | 94 | 56 | |||
Share-based compensation | 11 | 15 | |||
Net gain on sales of: | |||||
Debt securities | (13) | (17) | |||
Marketable equity securities available for sale | 0 | (3) | |||
Premises and equipment | (2) | 0 | |||
Increase in other assets | (450) | (138) | |||
Increase (decrease) in other liabilities | 253 | (62) | |||
Net cash provided by operating activities | 704 | 515 | |||
INVESTING ACTIVITIES | |||||
Purchases of securities available for sale | (2,355) | (4,089) | |||
Proceeds from maturities and paydowns of securities available for sale | 1,611 | 1,804 | |||
Proceeds from sales of securities available for sale | 375 | 1,251 | |||
Purchases of securities held to maturity | 0 | (811) | |||
Proceeds from maturities and paydowns of securities held to maturity | 290 | 394 | |||
Purchases of other investment securities, at fair value | (114) | 0 | |||
Proceeds from sales of other investment securities, at fair value | 109 | 0 | |||
Purchases of other investment securities, at cost | (62) | (14) | |||
Proceeds from sales of other investment securities, at cost | 52 | 20 | |||
Net (increase) decrease in interest-bearing deposits in banks | (371) | 184 | |||
Net increase in loans and leases | (5,045) | (3,573) | |||
Net increase in bank-owned life insurance | (23) | (16) | |||
Premises and equipment: | |||||
Purchases | (22) | (43) | |||
Proceeds from sales | 3 | 15 | |||
Capitalization of software | (85) | (92) | |||
Net cash used in investing activities | (5,637) | (4,970) | |||
FINANCING ACTIVITIES | |||||
Net increase in deposits | 3,718 | 4,908 | |||
Net decrease in federal funds purchased and securities sold under agreements to repurchase | (85) | (492) | |||
Net decrease in other short-term borrowed funds | (1,370) | (251) | |||
Proceeds from issuance of long-term borrowed funds | 6,995 | 0 | |||
Repayments of long-term borrowed funds | (3,631) | (6) | |||
Treasury stock purchased | 0 | (250) | |||
Net proceeds from issuance of preferred stock | 0 | 247 | |||
Dividends declared and paid to common stockholders | (117) | (108) | |||
Dividends declared and paid to preferred stockholders | (7) | 0 | |||
Net cash provided by financing activities | 5,503 | 4,048 | |||
Increase (decrease) in cash and cash equivalents | 570 | (407) | |||
Cash and cash equivalents at beginning of period | 3,085 | 3,276 | $ 3,276 | ||
Cash and cash equivalents at end of period | $ 3,655 | $ 2,869 | $ 3,655 | $ 2,869 | $ 3,085 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Basis of Presentation The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc., have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These unaudited interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s Form 10-K for the year ended December 31, 2015. The Company’s principal business activity is banking, conducted through its subsidiaries, Citizens Bank, N.A. and Citizens Bank of Pennsylvania. The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” Under current GAAP, the Company reflects credit losses on financial assets measured on an amortized cost basis only when the losses are probable or have been incurred. The ASU replaces this approach with a forward-looking methodology that reflects the expected credit losses over the lives of financial assets, starting when the assets are first acquired. Under the revised methodology, credit losses will be measured based on past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets. The ASU also revises the approach to recognizing credit losses on securities available for sale by allowing entities to record reversals of credit losses in current-period earnings. The ASU is effective for the Company beginning on January 1, 2020. The Company is currently assessing the impact of this guidance on the Company’s unaudited interim Consolidated Financial Statements. In May 2016, the FASB issued ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” The ASU supplements the new revenue recognition standard issued in 2014 by addressing certain issues in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. 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 unaudited interim Consolidated Financial Statements. In April 2016, the FASB issued ASU No. 2016-10 “Identifying Performance Obligations and Licensing.” The ASU supplements the new revenue recognition standard issued in 2014 by clarifying the guidance related to licensing and the identification of performance obligations. 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 unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting.” The ASU modifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-08 “Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU supplements the new revenue recognition standard issued in 2014 by clarifying the implementation guidance on principal versus agent considerations. 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 unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-05 “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The ASU clarifies that a change in a counterparty to a derivative instrument that has been designated as a hedging instrument, in and of itself, does not result in a hedge de-designation under ASC 815. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. 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 unaudited interim 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 debt securities available for sale. 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 unaudited interim Consolidated Financial Statements. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table provides the major components of securities at amortized cost and fair value: June 30, 2016 December 31, 2015 (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 $15 $— $— $15 $16 $— $— $16 State and political subdivisions 9 — — 9 9 — — 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,588 401 (8 ) 17,981 17,234 153 (67 ) 17,320 Other/non-agency 489 2 (34 ) 457 555 4 (37 ) 522 Total mortgage-backed securities 18,077 403 (42 ) 18,438 17,789 157 (104 ) 17,842 Total debt securities available for sale 18,101 403 (42 ) 18,462 17,814 157 (104 ) 17,867 Marketable equity securities 5 — — 5 5 — — 5 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 17 — — 17 Total securities available for sale $18,118 $403 ($42 ) $18,479 $17,831 $157 ($104 ) $17,884 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $3,912 $119 $— $4,031 $4,105 $27 ($11 ) $4,121 Other/non-agency 1,061 44 — 1,105 1,153 23 — 1,176 Total securities held to maturity $4,973 $163 $— $5,136 $5,258 $50 ($11 ) $5,297 Other Investment Securities, at Fair Value Money market mutual fund $68 $— $— $68 $65 $— $— $65 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $73 $— $— $73 $70 $— $— $70 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $468 $— $— $468 Federal Home Loan Bank stock 410 — — 410 395 — — 395 Total other investment securities, at cost $873 $— $— $873 $863 $— $— $863 The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net securities impairment losses recognized in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Other-than-temporary impairment: Total other-than-temporary impairment losses ($1 ) ($1 ) ($42 ) ($32 ) Portions of loss recognized in other comprehensive income (before taxes) (6 ) (1 ) 34 29 Net securities impairment losses recognized in earnings ($7 ) ($2 ) ($8 ) ($3 ) 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: June 30, 2016 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 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 7 $95 $— 33 $734 ($8 ) 40 $829 ($8 ) Other/non-agency 4 19 — 20 330 (34 ) 24 349 (34 ) Total mortgage-backed securities 11 114 — 53 1,064 (42 ) 64 1,178 (42 ) Total 11 $114 $— 53 $1,064 ($42 ) 64 $1,178 ($42 ) 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 $— U.S. 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 ) 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 collateral loss model and an integrated cash flow engine. The model calculates prepayment, default, and loss severity assumptions using collateral performance data. These assumptions are used to produce cash flows that generate loss projections. These loss projections are reviewed on a quarterly basis by a cross-functional governance committee. This governance committee determines whether security impairments are other-than-temporary based on this review. The following table presents the cumulative credit-related losses recognized in earnings on debt securities held by the Company: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Cumulative balance at beginning of period $66 $62 $66 $62 Credit impairments recognized in earnings on securities that have been previously impaired 7 2 8 3 Reductions due to increases in cash flow expectations on impaired securities — (2 ) (1 ) (3 ) Cumulative balance at end of period $73 $62 $73 $62 Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of June 30, 2016 and 2015 were $73 million and $62 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of June 30, 2016 and 2015 . For the three months ended June 30, 2016 and 2015 , the Company recognized credit related other-than-temporary-impairment losses in earnings of $7 million and $2 million respectively, related to non-agency MBS in the AFS portfolio. The $5 million increase from June 30, 2015 to June 30, 2016 is primarily attributable to a one-time adjustment tied to a new model implementation. This adjustment is the result of the Company migrating in June 2016 from a proprietary internal process to a vendor-based model to estimate other-than-temporary impairment. For the six months ended June 30, 2016 and 2015 , the Company recognized credit related other-than-temporary impairment losses in earnings of $8 million and $3 million , respectively. The other-than-temporary impairment losses for the six months ended June 30, 2016 include the impact of the one-time adjustment tied to the new model implementation discussed above. There were no credit impaired debt securities sold during the three and six months ended June 30, 2016 and 2015 . Reductions in credit losses due to increases in cash flow expectations were none and $2 million for the three months ended June 30, 2016 and 2015 , respectively, and $1 million and $3 million for the six months ended June 30, 2016 and 2015 , 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, $34 million and $29 million of pre-tax non-credit related losses were deferred in OCI for the six months ended June 30, 2016 and 2015 , respectively. The amortized cost and fair value of debt securities 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. June 30, 2016 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 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 15 36 1,668 15,869 17,588 Other/non-agency — 50 2 437 489 Total debt securities available for sale 30 86 1,670 16,315 18,101 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,912 3,912 Other/non-agency — — — 1,061 1,061 Total debt securities held to maturity — — — 4,973 4,973 Total amortized cost of debt securities $30 $86 $1,670 $21,288 $23,074 Fair Value: Debt securities available for sale U.S. Treasury and other $15 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 15 38 1,710 16,218 17,981 Other/non-agency — 50 3 404 457 Total debt securities available for sale 30 88 1,713 16,631 18,462 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,031 4,031 Other/non-agency — — — 1,105 1,105 Total debt securities held to maturity — — — 5,136 5,136 Total fair value of debt securities $30 $88 $1,713 $21,767 $23,598 The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Taxable $141 $155 $286 $314 Non-taxable — — — — Total interest income from investment securities $141 $155 $286 $314 Realized gains and losses on securities are shown below: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Gains on sale of debt securities $4 $10 $13 $22 Losses on sale of debt securities — (1 ) — (5 ) Debt securities gains, net $4 $9 $13 $17 Equity securities gains $— $1 $— $3 The amortized cost and fair value of securities pledged are shown below: June 30, 2016 December 31, 2015 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $705 $720 $805 $808 Pledged against FHLB borrowed funds 1,070 1,114 1,163 1,186 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 4,236 4,341 3,579 3,610 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: June 30, 2016 December 31, 2015 (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 — Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 11 “Derivatives.” There were $5 million in securitizations of mortgage loans retained in the investment portfolio for the three and six months ended June 30, 2016 and none in 2015. These securitizations included a substantive guarantee by a third party. In 2016, the guarantors were Fannie Mae and Ginnie Mae. 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. |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES A summary of the loans and leases portfolio follows: (in millions) June 30, 2016 December 31, 2015 Commercial $35,927 $33,264 Commercial real estate 9,825 8,971 Leases 3,805 3,979 Total commercial 49,557 46,214 Residential mortgages 13,855 13,318 Home equity loans 2,177 2,557 Home equity lines of credit 14,418 14,674 Home equity loans serviced by others (1) 860 986 Home equity lines of credit serviced by others (1) 273 389 Automobile 14,075 13,828 Student 5,516 4,359 Credit cards 1,613 1,634 Other retail 1,207 1,083 Total retail 53,994 52,828 Total loans and leases (2) (3) $103,551 $99,042 (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 $850 million and $365 million as of June 30, 2016 and December 31, 2015 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above and amounted to $17.2 billion and $17.6 billion at June 30, 2016 and December 31, 2015 , respectively. During the three months ended June 30, 2016 , the Company purchased $348 million of student loans, $200 million of automobile loans and $63 million of residential mortgages. During the three months ended June 30, 2015 , the Company purchased $202 million of student loans, $416 million of automobile loans and $387 million of residential mortgages. During the six months ended June 30, 2016 , the Company purchased $717 million of student loans, $334 million of automobile loans and $183 million of residential mortgages. During the six months ended June 30, 2015 , the Company purchased $463 million of student loans, $809 million of automobile loans and $636 million of residential mortgages. During the three months ended June 30, 2016 , the Company sold $108 million of residential mortgage loans and $45 million of commercial loans. During the three months ended June 30, 2015 , the Company sold $114 million of commercial loans. During the six months ended June 30, 2016 , the Company sold $281 million of residential mortgage loans and $118 million of commercial loans. During the six months ended June 30, 2015 , the Company sold $273 million of residential mortgage loans and $225 million of commercial loans. Loans held for sale at fair value totaled $478 million and $325 million at June 30, 2016 and December 31, 2015 , respectively, and consisted of residential mortgages originated for sale of $424 million and the commercial trading portfolio of $54 million as of June 30, 2016 . As of December 31, 2015 , residential mortgages originated for sale were $268 million and the commercial trading portfolio totaled $57 million . Other loans held for sale, at lower of cost or market value, totaled $372 million and $40 million as of June 30, 2016 and December 31, 2015 , respectively. Other loans held for sale, as of June 30, 2016, contained $322 million of TDRs, including $262 million of residential mortgages and $60 million of home equity loans. Other loans held for sale also included commercial loans associated with the Company’s syndications business of $50 million as of June 30, 2016 compared with $40 million as of December 31, 2015. Loans pledged as collateral for FHLB borrowed funds totaled $23.2 billion at June 30, 2016 and December 31, 2015 . 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 $16.6 billion and $15.9 billion at June 30, 2016 and December 31, 2015 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. It is increased through a provision for credit losses that is charged to earnings, based on the Company’s quarterly evaluation of the loan portfolio, and is reduced by net charge-offs and the ALLL associated with sold loans. See Note 1 “Significant Accounting Policies” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2015 , for a detailed discussion of ALLL reserve methodologies and estimation techniques. On a quarterly basis, the Company reviews and refines its estimate of the allowance for credit losses, taking into consideration changes in portfolio size and composition, historical loss experience, internal risk ratings, current economic conditions, industry performance trends and other pertinent information. There were no material changes in assumptions or estimation techniques compared with prior periods that impacted the determination of the current period’s ALLL and the reserve for unfunded lending commitments. The following is a summary of changes in the allowance for credit losses: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $633 $591 $1,224 $596 $620 $1,216 Charge-offs (7 ) (106 ) (113 ) (20 ) (219 ) (239 ) Recoveries 5 43 48 9 82 91 Net charge-offs (2 ) (63 ) (65 ) (11 ) (137 ) (148 ) Provision charged to income 45 42 87 91 87 178 Allowance for loan and lease losses, end of period 676 570 1,246 676 570 1,246 Reserve for unfunded lending commitments, beginning of period 58 — 58 58 — 58 Credit for unfunded lending commitments 3 — 3 3 — 3 Reserve for unfunded lending commitments as of period end 61 — 61 61 — 61 Total allowance for credit losses as of period end $737 $570 $1,307 $737 $570 $1,307 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $578 $624 $1,202 $544 $651 $1,195 Charge-offs (15 ) (106 ) (121 ) (21 ) (215 ) (236 ) Recoveries 8 35 43 36 68 104 Net recoveries (charge-offs) (7 ) (71 ) (78 ) 15 (147 ) (132 ) Sales/Other — — — — (2 ) (2 ) Provision charged to income (6 ) 83 77 6 134 140 Allowance for loan and lease losses, end of period 565 636 1,201 565 636 1,201 Reserve for unfunded lending commitments, beginning of period 56 — 56 61 — 61 Provision for unfunded lending commitments — — — (5 ) — (5 ) Reserve for unfunded lending commitments as of period end 56 — 56 56 — 56 Total allowance for credit losses as of period end $621 $636 $1,257 $621 $636 $1,257 The recorded investment in loans and leases based on the Company’s evaluation methodology is as follows: June 30, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $408 $802 $1,210 $218 $1,165 $1,383 Formula-based evaluation 49,149 53,192 102,341 45,996 51,663 97,659 Total $49,557 $53,994 $103,551 $46,214 $52,828 $99,042 The following is a summary of the allowance for credit losses by evaluation method: June 30, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $52 $79 $131 $36 $101 $137 Formula-based evaluation 685 491 1,176 618 519 1,137 Allowance for credit losses $737 $570 $1,307 $654 $620 $1,274 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: June 30, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $33,931 $855 $1,015 $126 $35,927 Commercial real estate 9,281 318 156 70 9,825 Leases 3,603 80 122 — 3,805 Total $46,815 $1,253 $1,293 $196 $49,557 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 The recorded investment in classes of retail loans, categorized by delinquency status is as follows: June 30, 2016 (in millions) Current 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $13,571 $89 $40 $10 $145 $13,855 Home equity loans 1,937 133 20 8 79 2,177 Home equity lines of credit 13,755 388 44 24 207 14,418 Home equity loans serviced by others (1) 781 48 10 4 17 860 Home equity lines of credit serviced by others (1) 184 37 12 5 35 273 Automobile 12,959 926 122 31 37 14,075 Student 5,340 105 18 11 42 5,516 Credit cards 1,539 42 10 8 14 1,613 Other retail 1,149 44 6 4 4 1,207 Total $51,215 $1,812 $282 $105 $580 $53,994 (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, 2015 (in millions) Current 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,905 $97 $54 $16 $246 $13,318 Home equity loans 2,245 164 32 12 104 2,557 Home equity lines of credit 13,982 407 60 20 205 14,674 Home equity loans serviced by others (1) 886 60 14 6 20 986 Home equity lines of credit serviced by others (1) 296 48 10 6 29 389 Automobile 12,670 964 127 32 35 13,828 Student 4,175 113 19 11 41 4,359 Credit cards 1,554 44 11 9 16 1,634 Other retail 1,013 53 8 4 5 1,083 Total $49,726 $1,950 $335 $116 $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. Nonperforming Assets The following table presents nonperforming loans and leases and loans accruing 90 days or more past due: Nonperforming (1) Accruing and 90 days or more past due (in millions) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Commercial $277 $71 $— $1 Commercial real estate 70 77 4 — Leases — — — — Total commercial 347 148 4 1 Residential mortgages (2) (3) (4) 174 331 15 — Home equity loans (2) 104 135 — — Home equity lines of credit 251 272 — — Home equity loans serviced by others (5) 33 38 — — Home equity lines of credit serviced by others (5) 38 32 — — Automobile 43 42 — — Student 37 41 6 6 Credit card 14 16 — — Other retail 3 5 1 2 Total retail 697 912 22 8 Total $1,044 $1,060 $26 $9 (1) Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million . (2) Nonperforming balances at June 30, 2016 excluded $71 million of troubled debt restructured loans held for sale, including $54 million of residential mortgages and $17 million of home equity loans. (3) Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of June 30, 2016 , $15 million of these loans were accruing and 90 days or more past due. (4) Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of June 30, 2016 these loans totaled $34 million . These loans are consolidated on the Company’s Consolidated Balance Sheets. (5) 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. A summary of other nonperforming assets is as follows: (in millions) June 30, 2016 December 31, 2015 Other nonperforming assets, net of valuation allowance: Commercial $1 $1 Retail 47 45 Other nonperforming assets, net of valuation allowance $48 $46 Other 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: June 30, 2016 December 31, 2015 Nonperforming commercial loans and leases as a percentage of total loans and leases (1) 0.34 % 0.15 % Nonperforming retail loans as a percentage of total loans and leases (1) 0.67 0.92 Total nonperforming loans and leases as a percentage of total loans and leases (1) 1.01 % 1.07 % Nonperforming commercial assets as a percentage of total assets (1) 0.24 % 0.11 % Nonperforming retail assets as a percentage of total assets (1) 0.51 0.69 Total nonperforming assets as a percentage of total assets (1) 0.75 % 0.80 % (1) December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings are in process was $211 million and $257 million as of June 30, 2016 and December 31, 2015, respectively. The following is an analysis of the age of the past due amounts (accruing and nonaccruing): June 30, 2016 December 31, 2015 (in millions) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial $8 $23 $277 $308 $9 $4 $71 $84 Commercial real estate 2 5 74 81 30 3 77 110 Leases 1 — — 1 9 1 — 10 Total commercial 11 28 351 390 48 8 148 204 Residential mortgages 40 10 145 195 54 16 246 316 Home equity loans 20 8 79 107 32 12 104 148 Home equity lines of credit 44 24 207 275 60 20 205 285 Home equity loans serviced by others (1) 10 4 17 31 14 6 20 40 Home equity lines of credit serviced by others (1) 12 5 35 52 10 6 29 45 Automobile 122 31 37 190 127 32 35 194 Student 18 11 42 71 19 11 41 71 Credit cards 10 8 14 32 11 9 16 36 Other retail 6 4 4 14 8 4 5 17 Total retail 282 105 580 967 335 116 701 1,152 Total $293 $133 $931 $1,357 $383 $124 $849 $1,356 (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 (excluding loans held for sale). The following is a summary of impaired loan information by class: June 30, 2016 (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 $216 $46 $139 $391 $355 Commercial real estate 42 6 11 56 53 Total commercial 258 52 150 447 408 Residential mortgages 34 4 130 214 164 Home equity loans 51 5 107 198 158 Home equity lines of credit 26 3 160 223 186 Home equity loans serviced by others (1) 45 7 21 79 66 Home equity lines of credit serviced by others (1) 3 — 7 14 10 Automobile 4 — 14 23 18 Student 161 46 1 162 162 Credit cards 26 11 — 27 26 Other retail 10 3 2 14 12 Total retail 360 79 442 954 802 Total $618 $131 $592 $1,401 $1,210 (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, 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. Additional information on impaired loans is as follows: Three Months Ended June 30, 2016 2015 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $324 $1 $129 Commercial real estate — 58 — 51 Total commercial 2 382 1 180 Residential mortgages 1 160 4 436 Home equity loans 1 158 3 272 Home equity lines of credit 2 184 1 151 Home equity loans serviced by others (1) 1 66 1 84 Home equity lines of credit serviced by others (1) — 10 — 10 Automobile — 15 — 12 Student 2 161 2 164 Credit cards 1 26 — 30 Other retail — 13 — 18 Total retail 8 793 11 1,177 Total $10 $1,175 $12 $1,357 (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. Six Months Ended June 30, 2016 2015 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $3 $248 $1 $133 Commercial real estate — 61 1 54 Total commercial 3 309 2 187 Residential mortgages 2 156 8 433 Home equity loans 3 154 5 266 Home equity lines of credit 3 182 2 150 Home equity loans serviced by others (1) 2 67 2 84 Home equity lines of credit serviced by others (1) — 9 — 10 Automobile — 14 — 11 Student 4 160 4 162 Credit cards 1 26 1 29 Other retail — 13 — 18 Total retail 15 781 22 1,163 Total $18 $1,090 $24 $1,350 (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 $126 million on June 30, 2016 and and $155 million on December 31, 2015 . Retail TDRs totaled $802 million on June 30, 2016 and $1.2 billion on December 31, 2015 . Other loans held for sale, as of June 30, 2016, contained $322 million of TDRs, including $262 million of residential mortgages and $60 million of home equity loans. Commitments to lend additional funds to debtors owing receivables which were TDRs were $30 million and $15 million on June 30, 2016 and December 31, 2015 , respectively. The following table summarizes how loans were modified during the three months ended June 30, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to June 30, 2016 . 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 3 $— $— 28 $4 $4 Commercial real estate — — — — — — Total commercial 3 — — 28 4 4 Residential mortgages 3 1 1 10 2 2 Home equity loans 15 1 1 21 2 2 Home equity lines of credit 6 — — 8 1 1 Home equity loans serviced by others (3) 3 — — — — — Home equity lines of credit serviced by others (3) 2 — — 3 1 1 Automobile 30 — — 3 — — Student — — — — — — Credit cards 552 3 3 — — — Other retail 1 — — — — — Total retail 612 5 5 45 6 6 Total 615 $5 $5 73 $10 $10 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 4 $20 $21 $— $— Commercial real estate — — — — — Total commercial 4 20 21 — — Residential mortgages 67 7 7 — — Home equity loans 94 5 5 (1 ) — Home equity lines of credit 92 6 6 — — Home equity loans serviced by others (3) 16 — — — — Home equity lines of credit serviced by others (3) 5 1 — — — Automobile 348 7 6 — 1 Student 111 2 2 1 — Credit cards — — — 1 — Other retail 5 — — — — Total retail 738 28 26 1 1 Total 742 $48 $47 $1 $1 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. (4) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The following table summarizes how loans were modified during the three months ended June 30, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to June 30, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 7 $1 $1 36 $2 $2 Commercial real estate — — — — — — Total commercial 7 1 1 36 2 2 Residential mortgages 20 3 3 9 2 2 Home equity loans 26 1 1 49 11 11 Home equity lines of credit — — — — — — Home equity loans serviced by others (3) 5 — — — — — Automobile 18 1 1 1 — — Credit cards 630 3 3 — — — Total retail 699 8 8 59 13 13 Total 706 $9 $9 95 $15 $15 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 3 $— $— $— $— Commercial real estate — — — — — Total commercial 3 — — — — Residential mortgages 42 4 4 — — Home equity loans 97 7 7 — — Home equity lines of credit 78 5 5 — 1 Home equity loans serviced by others (3) 25 1 1 — — Home equity lines of credit serviced by others (3) 15 1 1 — — Automobile 172 3 2 — — Student 369 7 7 1 — Credit cards — — — 1 — Other retail 4 — — — — Total retail 802 28 27 2 1 Total 805 $28 $27 $2 $1 (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 six months ended June 30, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to June 30, 2016 . 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 8 $1 $1 54 $8 $8 Commercial real estate — — — — — — Total commercial 8 1 1 54 8 8 Residential mortgages 25 4 4 16 3 3 Home equity loans 29 2 2 37 4 4 Home equity lines of credit 13 1 1 27 3 3 Home equity loans serviced by others (3) 6 — — — — — Home equity lines of credit serviced by others (3) 2 — — 4 1 1 Automobile 51 1 1 8 — — Student — — — — — — Credit cards 1,081 6 6 — — — Other retail 1 — — — — — Total retail 1,208 14 14 92 11 11 Total 1,216 $15 $15 146 $19 $19 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 9 $41 $41 ($1 ) $— Commercial real estate — — — — — Total commercial 9 41 41 (1 ) — Residential mortgages 131 15 15 — — Home equity loans 181 11 11 (1 ) — Home equity lines of credit 124 8 8 — — Home equity loans serviced by others (3) 34 1 1 — — Home equity lines of credit serviced by others (3) 13 1 — — — Automobile 539 10 9 — 1 Student 297 6 6 2 — Credit cards — — — 1 — Other retail 8 — — — — Total retail 1,327 52 50 2 1 Total 1,336 $93 $91 $1 $1 (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 six months ended June 30, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to June 30, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 14 $3 $3 64 $12 $12 Commercial real estate 1 — — — — — Total commercial 15 3 3 64 12 12 Residential mortgages 53 9 9 19 4 4 Home equity loans 47 2 2 86 16 16 Home equity lines of credit — — — 3 — — Home equity loans serviced by others (3) 22 1 1 — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 38 1 1 2 — — Student — — — — — — Credit cards 1,234 7 7 — — — Other retail — — — — — — Total retail 1,394 20 20 110 20 20 Total 1,409 $23 $23 174 $32 $32 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 4 $2 $2 ($1 ) $— Commercial real estate 1 4 4 — — Total commercial 5 6 6 (1 ) — Residential mortgages 106 10 10 (1 ) — Home equity loans 294 17 17 — — Home equity lines of credit 213 14 12 — 2 Home equity loans serviced by others (3) 71 3 3 — 1 Home equity lines of credit serviced by others (3) 22 1 1 — — Automobile 469 8 6 — 1 Student 750 14 14 3 — Credit cards — — — 1 — Other retail 15 — — — — Total retail 1,940 67 63 3 4 Total 1,945 $73 $69 $2 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. (4) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The table below summarizes TDRs that defaulted during the three months ended June 30, 2016 and 2015 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 June 30, 2016 and 2015 . If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell. The amount written off is charged to the ALLL. Three Months Ended June 30, 2016 2015 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 8 $3 8 $1 Commercial real estate 1 — — — Total commercial 9 3 8 1 Residential mortgages 35 4 34 5 Home equity loans 32 2 32 2 Home equity lines of credit 20 1 32 1 Home equity loans serviced by others (1) 11 — 7 — Home equity lines of credit serviced by others (1) 6 — 6 — Automobile 22 1 19 — Student 18 1 44 1 Credit cards 85 — 100 1 Other retail — — 1 — Total retail 229 9 275 10 Total 238 $12 283 $11 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. The table below summarizes TDRs that defaulted during the six months ended June 30, 2016 and 2015 within 12 months of their modification date. Six Months Ended June 30, 2016 2015 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 11 $3 14 $1 Commercial real estate 1 — — — Total commercial 12 3 14 1 Residential mortgages 89 12 83 11 Home equity loans 50 3 83 6 Home equity lines of credit 45 4 72 3 Home equity loans serviced by others (1) 21 1 23 1 Home equity lines of credit serviced by others (1) 11 — 7 — Automobile 37 1 42 1 Student 31 1 109 2 Credit cards 206 1 202 1 Other retail — — 3 — Total retail 490 23 624 25 Total 502 $26 638 $26 (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 June 30, 2016 and December 31, 2015 , 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: June 30, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES The Company makes equity investments in various entities that are considered VIEs, as defined by GAAP. These investments primarily include ownership interests in limited partnerships that sponsor affordable housing projects and ownership interests in limited liability companies that sponsor renewable energy projects. A summary of these investments is as follows: (in millions) June 30, 2016 December 31, 2015 LIHTC investment included in other assets $660 $598 LIHTC unfunded commitments included in other liabilities 365 365 Renewable energy investments included in other assets 117 118 Low Income Housing Tax Credit Partnerships The purpose of the Company’s equity investments is to assist in achieving goals of the Community Reinvestment Act and to earn an adequate return of capital. The LIHTC partnerships are managed by general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. The Company is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, the Company does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. The Company applies the proportional amortization method to account for its LIHTC investments. Under the proportional amortization method, the initial investment is amortized in proportion to the actual tax credits and other tax benefits to be received in the current period as compared to the total tax credits and other tax benefits expected to be received over the life of the investment. The amortization and tax benefits are included as a component of income tax expense. The Company reports its equity share of affordable housing partnership gains and losses as an adjustment to non-interest income. The Company reports its commitments to make future investments in other liabilities on the Consolidated Balance Sheets. The Company also receives tax credits, which are reported as a reduction of income tax expense (or increase to income tax benefit) related to these transactions. For the three months ended June 30, 2016 , the Company recognized $16 million of amortization expense, $14 million of tax credits and $7 million of other tax benefits associated with these investments in the provision for income taxes. For the six months ended June 30, 2016 , the Company recognized $31 million of amortization expense, $29 million of tax credits and $13 million of other tax benefits associated with these investments in the provision for income taxes. For the three months ended June 30, 2015 , the Company recognized $12 million of amortization expense, $12 million of tax credits and $5 million of other tax benefits associated with these investments in the provision for income taxes. For the six months ended June 30, 2015 , the Company recognized $24 million of amortization expense, $23 million of tax credits and $9 million of other tax benefits associated with these investments in the provision for income taxes. No LIHTC investment impairment losses were recognized during the three and six months ended June 30, 2016 and 2015 , respectively Renewable Energy Entities The Company’s investments in renewable energy entities provide benefits from a return generated by government incentives plus other tax attributes that are associated with tax ownership (e.g., tax depreciation). As a tax equity investor, the Company does not have the power to direct the activities which most significantly affect the performance of these entities and therefore is not the primary beneficiary of any renewable energy entities. Accordingly, the Company does not consolidate these VIEs. |
MORTGAGE BANKING
MORTGAGE BANKING | 6 Months Ended |
Jun. 30, 2016 | |
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 proceeds from the sale of residential mortgages held for sale of $543 million and $649 million for the three months ended June 30, 2016 and 2015 , respectively, and $1.0 billion and $1.1 billion for the six months ended June 30, 2016 and 2015 , respectively. The Company recognized gains on sales of residential mortgages held for sale of $16 million and $11 million for the three months ended June 30, 2016 and 2015 , respectively, and $30 million and $32 million for the six months ended June 30, 2016 and 2015 , respectively. Pursuant to the standard representations and warranties obligations discussed above the Company repurchased residential mortgages totaling $2 million and $3 million for the three months ended June 30, 2016 and 2015 , respectively, and $4 million and $7 million for the six months ended June 30, 2016 and 2015 , respectively. Mortgage servicing fees, a component of mortgage banking fees, were $13 million and $14 million for the three months ended June 30, 2016 and 2015 , respectively, and $26 million and $28 million for the six months ended June 30, 2016 and 2015 , respectively. The Company recorded valuation recoveries of $1 million and $6 million for its MSRs for the three months ended June 30, 2016 and 2015 , respectively, and valuation charge-offs of $4 million and recoveries of $7 million for its MSRs for the six months ended June 30, 2016 and 2015 , respectively. Changes related to MSRs were as follows: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2016 2015 2016 2015 MSRs: Balance as of beginning of period $169 $180 $173 $184 Amount capitalized 5 7 10 13 Amortization (8 ) (10 ) (17 ) (20 ) Carrying amount before valuation allowance 166 177 166 177 Valuation allowance for servicing assets: Balance as of beginning of period 14 17 9 18 Valuation charge-offs (recoveries) (1 ) (6 ) 4 (7 ) Balance at end of period 13 11 13 11 Net carrying value of MSRs $153 $166 $153 $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: (dollars in millions) June 30, 2016 December 31, 2015 Fair value $165 $178 Weighted average life (in years) 4.9 5.4 Weighted average constant prepayment rate 13.5% 11.6% Weighted average discount rate 9.7% 9.7% The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average life (in years) 5.9 6.3 6.0 5.4 Weighted average constant prepayment rate 11.3% 9.8% 11.1% 11.1% Weighted average discount rate 9.7% 9.7% 9.7% 9.6% The sensitivity analysis below as of June 30, 2016 and December 31, 2015 presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical. The effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment speeds, could result in changes in the discount rates), which might amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. (in millions) June 30, 2016 December 31, 2015 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $6 $5 Decline in fair value from a 100 basis point decrease in interest rates $17 $11 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 $5 $6 |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS The following is a summary of the Company’s short-term borrowed funds: (in millions) June 30, 2016 December 31, 2015 Securities sold under agreements to repurchase $717 $802 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,770 2,630 Total short-term borrowed funds $3,487 $3,432 Key data related to short-term borrowed funds is presented in the following table: (dollars in millions) As of and for the Six Months Ended June 30, 2016 As of and for the Year Ended December 31, 2015 Weighted-average interest rate at period-end: Federal funds purchased and securities sold under agreements to repurchase 0.00 % 0.15 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.65 0.44 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase $1,274 $5,375 Other short-term borrowed funds (primarily current portion of FHLB advances) 4,764 7,004 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase $927 $3,364 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,421 5,865 Weighted-average interest rate during the period: Federal funds purchased and securities sold under agreements to repurchase 0.07 % 0.22 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.60 0.28 Note: Balances are net of certain short-term receivables associated with reverse repurchase agreements. Interest expense includes the full cost of the repurchase agreements, but excludes certain hedging costs and broker fees. The following is a summary of the Company’s long-term borrowed funds: (in millions) June 30, 2016 December 31, 2015 Citizens Financial Group, Inc.: 4.150% fixed rate subordinated debt, due 2022 (1) $347 $350 5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023 (2) 333 333 3.750% fixed rate subordinated debt, due 2024 (2) (3) 250 250 4.023% fixed rate subordinated debt, due 2024 (2) (4) 218 331 4.082% fixed rate subordinated debt, due 2025 (2) (5) 355 331 4.350% fixed rate subordinated debt, due 2025 (6) 249 250 4.300% fixed rate subordinated debt, due 2025 (7) 749 750 Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (8) (9) 753 749 2.300% senior unsecured notes, due 2018 (8) (10) 756 747 2.450% senior unsecured notes, due 2019 (8) (11) 767 752 2.500% senior unsecured notes, due 2019 (8)(12) 753 — 2.550% senior unsecured notes, due 2021 (8)(13) 1,004 — Federal Home Loan advances due through 2033 5,264 5,018 Other 12 25 Total long-term borrowed funds $11,810 $9,886 (1) These balances are comprised of: principal balances of $350 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2016 . (2) Borrowed funds with RBS as of December 31, 2015 . See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. (3) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (4) These balances are comprised of: principal balance of $208 million and $333 million at June 30, 2016 and December 31, 2015 , respectively, as well as the impact from interest rate swaps of $10 million and ($2) million at June 30, 2016 and December 31, 2015 , respectively. See Note 11 “Derivatives” for further information. In addition, on March 7, 2016, the Company repurchased $125 million of these securities from RBS. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. (5) These balances are comprised of: principal balance of $334 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $21 million and ($3) million at June 30, 2016 and December 31, 2015 , respectively. See Note 11 “Derivatives” for further information. (6) These balances are comprised of: principal balances of $250 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . (7) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . (8) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (9) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $4 million and ($1) million at June 30, 2016 and December 31, 2015 , respectively; and ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (10) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $8 million and ($3) million at June 30, 2016 and December 31, 2015 , respectively; and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (11) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $20 million and $2 million at June 30, 2016 and December 31, 2015 , respectively; and ($3) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (12) The balance is comprised of: principal balance of $750 million at June 30, 2016 ; impact from interest rate swaps of $5 million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (13) The balance is comprised of: principal balance of $1.0 billion at June 30, 2016 ; impact from interest rate swaps of $9 million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $12.0 billion and $11.3 billion at June 30, 2016 and December 31, 2015 , respectively. The Company’s available FHLB borrowing capacity was $3.5 billion and $4.1 billion at June 30, 2016 and December 31, 2015 , 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 June 30, 2016 , the Company’s unused secured borrowing capacity was approximately $32.2 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 June 30, 2016 : Year (in millions) CFG Parent Company Banking Subsidiaries Consolidated 2017 or on demand $— $6,004 $6,004 2018 — 761 761 2019 — 1,521 1,521 2020 — 2 2 2021 — 1,009 1,009 2022 and thereafter 2,501 12 2,513 Total $2,501 $9,309 $11,810 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock The Company had 100,000,000 shares authorized and 250,000 shares outstanding of $25.00 par value undesignated preferred stock as of June 30, 2016 and December 31, 2015 , respectively. 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. 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. No treasury stock activity was recorded during the six months ended June 30, 2016 . 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 . |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Company maintains a non-contributory pension plan (the “Plan” or “qualified plan”) that was closed to new hires and re-hires effective January 1, 2009, and frozen to all participants effective December 31, 2012. Benefits under the Plan are based on employees’ years of service and highest five-year average of eligible compensation. The Plan is funded on a current basis, in compliance with the requirements of ERISA. The Company also provides an unfunded, non-qualified supplemental retirement plan (the “non-qualified plan”), which was closed and frozen effective December 12, 2012. The following table presents the components of net periodic (income) cost for the Company’s qualified and non-qualified plans: Six Months Ended June 30, Qualified Plan Non-Qualified Plan Total (in millions) 2016 2015 2016 2015 2016 2015 Service cost $2 $2 $— $— $2 $2 Interest cost 22 22 2 2 24 24 Expected return on plan assets (34 ) (37 ) — — (34 ) (37 ) Amortization of actuarial loss 7 6 1 1 8 7 Net periodic pension (income) cost ($3 ) ($7 ) $3 $3 $— ($4 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Provision The provision for income taxes was $ 118 million and $92 million for the three months ended June 30, 2016 and 2015 , respectively, resulting in effective tax rates of 32.6% and 32.7% , respectively. The provision for income taxes was $227 million and $198 million for the six months ended June 30, 2016 and 2015 , respectively, resulting in effective tax rates of 32.7% and 33.2% , respectively. For the six months ended June 30, 2016 and 2015 , the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of the permanent benefits of tax credits and tax-exempt income. Deferred Tax Liability At June 30, 2016 , the Company reported a net deferred tax liability of $961 million , compared to a $730 million liability as of December 31, 2015 . The increase in the net deferred tax liability is primarily attributable to the tax effect of net unrealized gains on securities and derivatives arising during the period and the tax effect of current year timing adjustments. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2016 | |
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 14 “Fair Value Measurements.” The following table identifies derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: June 30, 2016 December 31, 2015 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $15,500 $425 $255 $16,750 $96 $50 Derivatives not designated as hedging instruments: Interest rate contracts 39,606 810 723 33,719 540 455 Foreign exchange contracts 9,490 193 185 8,366 163 156 Other contracts 1,491 15 14 981 8 5 Total derivatives not designated as hedging instruments 1,018 922 711 616 Gross derivative fair values 1,443 1,177 807 666 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (130 ) (130 ) (178 ) (178 ) Less: Cash collateral applied (2) (1 ) (37 ) (4 ) (3 ) Total net derivative fair values presented in the Consolidated Balance Sheets (3) $1,312 $1,010 $625 $485 (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 do not measure the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities” for further information. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Institutional derivatives The institutional derivatives portfolio primarily consists of interest rate swap agreements that are used to hedge the interest rate risk associated with the Company’s loans and financing liabilities (i.e., borrowed funds, deposits, etc.). The goal of the Company’s interest rate hedging activities is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect net interest income. The Company enters into certain interest rate swap agreements to hedge the risk associated with floating rate loans. By entering into pay-floating/receive-fixed interest rate swaps, the Company was able to minimize the variability in the cash flows of these assets due to changes in interest rates. The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s borrowed funds and deposit liabilities. 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 its 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. Swap agreements and interest rate option agreements are transacted to effectively minimize 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 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 tables summarize certain information related to the Company’s fair value hedges: The Effect of Fair Value Hedges on Net Income Amounts Recognized in Other Income for the Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $32 ($31 ) $1 ($3 ) $3 $— The Effect of Fair Value Hedges on Net Income Amounts Recognized in Other Income for the Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $84 ($83 ) $1 $6 ($6 ) $— 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 $4 million of net gain (pre-tax) on derivative instruments included in OCI is expected to be reclassified to net interest income in the Consolidated Statements of Operations. Hedging gains and losses associated with the Company’s cash flow hedges are immediately reclassified from OCI to current period earnings (other income) if it becomes probable that the hedged forecasted transactions will not occur during the originally specified time period. The following table summarizes certain information related to the Company’s cash flow hedges: The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity Amounts Recognized for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Effective portion of gain (loss) recognized in OCI (1) $21 ($8 ) $75 $96 Amounts reclassified from OCI to interest income (2) 21 17 43 35 Amounts reclassified from OCI to interest expense (2) (8 ) (14 ) (16 ) (29 ) (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. Economic hedges The Company’s customer derivatives are recorded on the Consolidated Balance Sheets at fair value. These include interest rate and foreign exchange derivative contracts that are transacted to meet the hedging and financing needs of the Company’s customers. Mark-to-market adjustments to the fair value of customer related interest rate contracts are included in other income in the accompanying Consolidated Statements of Operations. Mark-to-market adjustments to the fair value of foreign exchange contracts relating to foreign currency loans are included in interest and fees on loans and leases in the accompanying Consolidated Statements of Operations, while all other foreign currency contract fair value changes are included in foreign exchange and letter of credit fees. In both cases, the mark-to-market gains and losses associated with the customer derivatives are mitigated by the mark-to-market gains and losses on the offsetting interest rate and foreign exchange derivative contracts transacted. The Company’s residential loan derivatives (including residential loan commitments and forward sales contracts) are recorded on the Consolidated Balance Sheets at fair value. Mark-to-market adjustments to the fair value of residential loan commitments and forward sale contracts are included in noninterest income under mortgage banking fees. The following table summarizes certain information related to the Company’s customer derivatives and economic hedges: The Effect of Customer Derivatives and Economic Hedges on Net Income Amounts Recognized in Noninterest Income for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Customer derivative contracts Customer interest rate contracts (1) ($2 ) ($9 ) $95 $64 Customer foreign exchange contracts (1) (23 ) 18 28 (17 ) Residential loan commitments (2) 3 (7 ) 7 (7 ) Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) 15 17 (76 ) (51 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 23 (19 ) (27 ) 16 Forward sale contracts (2) (5 ) 3 (10 ) 2 Total $11 $3 $17 $7 (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 letter of credit fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The following is a summary of outstanding off-balance sheet arrangements: (in millions) June 30, 2016 December 31, 2015 Commitment amount: Undrawn commitments to extend credit $58,622 $56,524 Financial standby letters of credit 1,946 2,010 Performance letters of credit 37 42 Commercial letters of credit 70 87 Marketing rights 46 47 Risk participation agreements 64 26 Residential mortgage loans sold with recourse 9 10 Total $60,794 $58,746 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 June 30, 2016 and December 31, 2015 . 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 $1 million for the six months ended June 30, 2016 and $3 million for the year ended December 31, 2015 , and is obligated to pay $46 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 June 30, 2016 and December 31, 2015 is $64 million and $26 million , respectively. The current amount of credit exposure is spread out over 89 counterparties. RPAs generally have terms ranging from 1 - 5 years; however, certain outstanding agreements have terms as long as 10 years . Other Commitments 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. The Company’s agreement to purchase automobile loans, originally entered into in May 2014, was most recently amended on February 18, 2016. 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 May 2017. The Company’s commercial loan trading desk provides 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 $111 million and $108 million , respectively, at June 30, 2016 . 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 14 “Fair Value Measurements” for further information. Contingencies The Company operates in a legal and regulatory environment that exposes it to potentially significant risks. A certain amount of litigation ordinarily results from the nature of the Company’s banking and other businesses. The Company is a party to legal proceedings, including class actions. The Company is also the subject of investigations, reviews, 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 is a description 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 have provided non-objections to, among other things, restitution plans for affected customers. 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. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS | 6 Months Ended |
Jun. 30, 2016 | |
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 related to long-term borrowed funds 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 originally issued to RBS: Interest Rate Maturity Date June 30, 2016 December 31, 2015 (dollars in millions) Subordinated debt 5.158 % June 2023 $333 $333 3.750 % (1) July 2024 250 250 4.023 % (2) (3) October 2024 208 333 4.082 % (3) January 2025 334 334 (1) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (2) On March 7, 2016, the Company repurchased $125 million of these securities from RBS. (3) On July 28, 2016, the Company repurchased $500 million of its subordinated notes held by RBS, including $166 million of its 4.023% subordinated notes due 2024 and $334 million of its 4.082% subordinated notes due 2025. Refer to Note 21 “Subsequent Events” for further information. The following table presents total interest expense recorded on the subordinated debt presented above: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Interest expense on subordinated debt $10 $20 $21 $40 On March 7, 2016, the Company repurchased $125 million of its subordinated notes held by RBS. 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. On July 28, 2016, the Company repurchased $500 million of the subordinated notes held by RBS pursuant to an agreement entered into in November 2015. Refer to Note 21 “Subsequent Events” for further information. The Company paid no dividends to RBS for the three or six months ended June 30, 2016 . For the three and six months ended June 30, 2015 , the Company paid $21 million and $60 million in regular common stock dividends to RBS, respectively. Additionally, during 2015 the Company engaged in repurchases of its common stock directly from RBS. Refer to Note 8 “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 $141 million and $136 million at June 30, 2016 and December 31, 2015 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As discussed in Note 1 “Significant Accounting Policies,” to the Company’s audited Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2015, 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 mortgage 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 $6 million and ($3) million for the three months ended June 30, 2016 and 2015 , respectively. The Company recognized mortgage banking income (expense) of $12 million and ($2) million for the six months ended June 30, 2016 and 2015 , 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. 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 June 30, 2016 . 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 12 “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. The Company recognized $2 million income in other noninterest income related to its commercial trading portfolio for the three months ended June 30, 2016 and $1 million for the three months ended June 30, 2015 . The Company recognized $2 million income in other noninterest income related to its commercial trading portfolio for the six months ended June 30, 2016 and $3 million for the six months ended June 30, 2015 . 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: June 30, 2016 December 31, 2015 (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 $424 $408 $16 $268 $263 $5 Commercial and commercial real estate loans held for sale, at fair value 54 54 — 57 57 — 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 June 30, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $18,438 $— $18,438 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury and other 15 15 — — Total securities available for sale 18,479 15 18,464 — Loans held for sale, at fair value: Residential loans held for sale 424 — 424 — Commercial loans held for sale 54 — 54 — Total loans held for sale, at fair value 478 — 478 — Derivative assets: Interest rate swaps 1,235 — 1,235 — Foreign exchange contracts 193 — 193 — Other contracts 15 — 15 — Total derivative assets 1,443 — 1,443 — Other investment securities, at fair value: Money market mutual fund 68 68 — — Other investments 5 — 5 — Total other investment securities, at fair value 73 68 5 — Total assets $20,473 $83 $20,390 $— Derivative liabilities: Interest rate swaps $978 $— $978 $— Foreign exchange contracts 185 — 185 — Other contracts 14 — 14 — Total derivative liabilities 1,177 — 1,177 — Total liabilities $1,177 $— $1,177 $— 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 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 changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Beginning of period balance $— $1 $— $5 Purchases, issuances, sales and settlements: Purchases — — — 1 Sales — — — — Settlements — — — — Net (losses) gains — — — — Transfers from Level 3 to Level 2 — — — (5 ) Balance as of June 30 $— $1 $— $1 Net unrealized gain (loss) included in net income for the year relating to assets held at period end $— $— $— $1 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 June 30, 2016 , the fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life of 4.9 years (range of 2.5 - 5.3 years ), weighted-average constant prepayment rate of 13.5% (range of 13.2% - 24.3% ) and weighted-average discount rate of 9.7% (range of 9.1% - 12.1% ). 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% ). Refer to Note 1 “Significant Accounting Policies” to the Company’s audited Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2015 and Note 6 “Mortgage Banking” for more information. Foreclosed assets Foreclosed assets consist primarily of residential properties. Foreclosed assets are carried at the lower of carrying value or fair value less costs to dispose. Fair value is based upon independent market prices or appraised values of the collateral and is classified as Level 2. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Impaired collateral-dependent loans ($6 ) ($10 ) ($11 ) ($13 ) MSRs 1 6 (4 ) 7 Foreclosed assets (1 ) (1 ) (2 ) (2 ) The following table present assets and liabilities measured at fair value on a nonrecurring basis: June 30, 2016 December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $55 $— $55 $— $60 $— $60 $— MSRs 165 — — 165 178 — — 178 Foreclosed assets 46 — 46 — 42 — 42 — 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): 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. 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 the lower of cost or fair value. Deposits The fair value of demand deposits, checking with interest accounts, regular savings and money market accounts is the amount payable on demand at the balance sheet date. The fair value of term deposits is estimated by discounting the expected future cash flows using rates currently offered for deposits of similar remaining maturities. Federal funds purchased and securities sold under agreements to repurchase, other short-term borrowed funds, and long-term borrowed funds Rates currently available to the Company for debt of similar terms and remaining maturities are used to discount the expected cash flows of existing debt. The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: June 30, 2016 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 $4,973 $5,136 $— $— $4,973 $5,136 $— $— Other investment securities, at cost 873 873 — — 873 873 — — Other loans held for sale 372 372 — — — — 372 372 Loans and leases 103,551 104,381 — — 55 55 103,496 104,326 Financial Liabilities: Deposits 106,257 106,260 — — 106,257 106,260 — — Federal funds purchased and securities sold under agreements to repurchase 717 717 — — 717 717 — — Other short-term borrowed funds 2,770 2,770 — — 2,770 2,770 — — Long-term borrowed funds 11,810 11,968 — — 11,810 11,968 — — 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 — — |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2016 | |
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 the Company’s capital and capital ratios under Basel III Transitional rules as of June 30, 2016 and December 31, 2015. 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 June 30, 2016 Common equity tier 1 capital (1) (5) $13,768 11.5 % $6,124 5.125 % $7,767 6.5 % Tier 1 capital (2) (5) 14,015 11.7 7,916 6.625 9,559 8.0 Total capital (3)(5) 17,823 14.9 10,306 8.625 11,949 10.0 Tier 1 leverage (4) 14,015 10.3 5,452 4.000 6,815 5.0 As of December 31, 2015 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 (1) “Common equity tier 1 capital ratio” represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. (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. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. (5) “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0.625% . 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 three and six months ended June 30, 2016 , the Company paid total common dividends of approximately $64 million and $117 million , respectively. In April 2016, the Company submitted its 2016 Capital Plan to the Federal Reserve under the annual CCAR process. On June 29, 2016, the FRBG indicated that it did not object to the Company’s 2016 Capital Plan or to its proposed capital actions in the period beginning July 1, 2016 and ending June 30, 2017. The Company’s 2016 Capital Plan includes proposed quarterly common dividends of $0.12 per share through the end of 2016, a potential 17% increase to quarterly common dividends to $0.14 per share in 2017, and a share repurchase plan of up to $690 million through the second quarter of 2017. All proposed distributions are subject to consideration and approval by CFG’s Board of Directors prior to execution. The timing and exact amount of dividends and share repurchases will depend on various factors, including CFG’s capital position, financial performance and market conditions. All of these actions were part of the Company’s 2016 Capital Plan to which the Federal Reserve indicated no objection. 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. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
EXIT COSTS AND RESTRUCTURING RESERVES | EXIT COSTS AND RESTRUCTURING RESERVES The Company incurred no restructuring costs for the three and six months ended June 30, 2016 . For the three months ended June 30, 2015, the Company incurred $25 million of restructuring costs, consisting of $15 million of facilities costs in occupancy, $5 million in outside services, and $5 million in salaries and employee benefits, relating to restructuring initiatives designed to enhance operating efficiencies and reduce expense growth. For the six months ended June 30, 2015, the Company incurred $26 million of restructuring costs, consisting of $17 million of facilities costs in occupancy, $6 million in outside services, and $3 million in salaries and employee benefits, substantially completing the restructuring initiatives designed to enhance operating efficiencies and reduce expense growth. For segment reporting, all of these restructuring costs are reported within Other. See Note 18 “Business Segments” for further information. The following tables include the activity in the exit costs and restructuring reserves: As of and for the Three Months Ended June 30, 2016 2015 (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Salaries & Employee Benefits Occupancy & Equipment Other Total Beginning of period balance $10 $14 $— $24 $18 $17 $— $35 Additions — — — — 5 15 5 25 Reversals — — — — — — — — Utilization (2 ) (2 ) — (4 ) (2 ) (5 ) (1 ) (8 ) Balance as of June 30, $8 $12 $— $20 $21 $27 $4 $52 As of and for the Six Months Ended June 30, 2016 2015 (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Salaries & Employee Benefits Occupancy & Equipment Other Total Beginning of period balance $12 $16 $5 $33 $23 $18 $3 $44 Additions — — — — 5 17 6 28 Reversals — — — — (2 ) — — (2 ) Utilization (4 ) (4 ) (5 ) (13 ) (5 ) (8 ) (5 ) (18 ) Balance as of June 30, $8 $12 $— $20 $21 $27 $4 $52 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the three months ended June 30, (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI Balance at beginning of period April 1, 2015 ($6 ) $141 ($375 ) ($240 ) Other comprehensive income (loss) before reclassifications (5 ) (110 ) — (115 ) Other-than-temporary impairment not recognized in earnings on securities — 1 — 1 Amounts reclassified from other comprehensive (loss) income (2 ) (5 ) 2 (5 ) Net other comprehensive income (loss) (7 ) (114 ) 2 (119 ) Balance at end of period June 30, 2015 ($13 ) $27 ($373 ) ($359 ) Balance at beginning of period April 1, 2016 $35 $96 ($367 ) ($236 ) Other comprehensive income before reclassifications 13 64 — 77 Other-than-temporary impairment not recognized in earnings on securities — 4 — 4 Amounts reclassified from other comprehensive (loss) income (9 ) 2 3 (4 ) Net other comprehensive income 4 70 3 77 Balance at end of period June 30, 2016 $39 $166 ($364 ) ($159 ) As of and for the six month ended June 30, (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI Balance at beginning of period January 1, 2015 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income (loss) before reclassifications 60 (20 ) — 40 Other-than-temporary impairment not recognized in earnings on securities — (18 ) — (18 ) Amounts reclassified from other comprehensive (loss) income (4 ) (9 ) 4 (9 ) Net other comprehensive income 56 (47 ) 4 13 Balance at end of period June 30, 2015 ($13 ) $27 ($373 ) ($359 ) Balance at beginning of period January 1, 2016 $10 ($28 ) ($369 ) ($387 ) Other comprehensive income before reclassifications 46 218 — 264 Other-than-temporary impairment not recognized in earnings on securities — (21 ) — (21 ) Amounts reclassified from other comprehensive (loss) income (17 ) (3 ) 5 (15 ) Net other comprehensive income 29 194 5 228 Balance at end of period June 30, 2016 $39 $166 ($364 ) ($159 ) The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $21 $17 $43 $35 Interest income (8 ) (14 ) (16 ) (29 ) Interest expense 13 3 27 6 Income before income tax expense 4 1 10 2 Income tax expense $9 $2 $17 $4 Net income Reclassification of net securities gains (losses) to net income: $4 $9 $13 $17 Securities gains, net (7 ) (2 ) (8 ) (3 ) Net securities impairment losses recognized in earnings (3 ) 7 5 14 Income before income tax expense (1 ) 2 2 5 Income tax expense ($2 ) $5 $3 $9 Net income Reclassification of changes related to defined benefit pension plans: ($4 ) ($4 ) ($8 ) ($7 ) Salaries and employee benefits (4 ) (4 ) (8 ) (7 ) Income before income tax expense (1 ) (2 ) (3 ) (3 ) Income tax expense ($3 ) ($2 ) ($5 ) ($4 ) Net income Total reclassification gains (losses) $4 $5 $15 $9 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Net interest income (includes $13, $3, $27 and $6 of AOCI reclassifications, respectively) $923 $840 $1,827 $1,676 Provision for credit losses 90 77 181 135 Noninterest income (includes ($3), $7, $5 and $14 of AOCI reclassifications, respectively) 355 360 685 707 Noninterest expense (includes $4, $4, $8 and $7 of AOCI reclassifications, respectively) 827 841 1,638 1,651 Income before income tax expense 361 282 693 597 Income tax expense (includes $2, $1, $9 and $4 income tax net expense (benefit) from reclassification items, respectively) 118 92 227 198 Net income $243 $190 $466 $399 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company is managed by its CEO on a segment basis. The Company’s two business segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has one or more segment heads who report directly to the CEO. The CEO has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the CEO. Non-segment operations are classified as Other, which includes corporate functions, the Treasury function, the securities portfolio, wholesale funding activities, intangible assets, community development, non-core assets, and other unallocated assets, liabilities, capital, revenues, provision for credit losses and expenses. Reportable Segments Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the Company’s organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below: Consumer Banking The Consumer Banking segment focuses on retail customers and small businesses with annual revenues of up to $25 million . It offers traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans and financial management services. It also operates an indirect auto financing business, providing financing for both new and used vehicles through auto dealerships. The segment’s distribution channels include a branch network, ATMs and a work force of experienced specialists ranging from financial consultants, mortgage loan officers and business banking officers to private bankers. Our Consumer Banking value proposition is based on providing simple, easy to understand product offerings and a convenient banking experience with a more personalized approach. Commercial Banking The Commercial Banking segment primarily targets companies with annual revenues from $25 million to $2.5 billion and provides a full complement of financial products and solutions, including loans, leases, trade financing, deposits, cash management, commercial cards, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities. It focuses on middle-market companies, large corporations and institutions and has dedicated teams with industry expertise in government banking, not-for-profit, healthcare, technology, professionals, oil & gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity and sponsor finance. While the segment’s business development efforts are predominantly focused in the Company’s footprint, some of its specialized industry businesses also operate selectively on a national basis (such as healthcare, asset finance and franchise finance). A key component of Commercial Banking’s growth strategy is to bring ideas to clients that help their businesses thrive, and in doing so, expand the loan portfolio and ancillary product sales. Non-segment Operations Other In addition to non-segment operations, Other includes certain reconciling items in order to translate the segment results that are based on management accounting practices into consolidated results. For example, Other includes goodwill and any associated goodwill impairment charges. As of and for the Three Months Ended June 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $602 $314 $7 $923 Noninterest income 219 122 14 355 Total revenue 821 436 21 1,278 Noninterest expense 632 186 9 827 Profit before provision for credit losses 189 250 12 451 Provision for credit losses 49 (1 ) 42 90 Income (loss) before income tax expense (benefit) 140 251 (30 ) 361 Income tax expense (benefit) 50 87 (19 ) 118 Net income (loss) $90 $164 ($11 ) $243 Total average assets $55,660 $47,388 $39,131 $142,179 As of and for the Three Months Ended June 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $544 $286 $10 $840 Noninterest income 230 108 22 360 Total revenue 774 394 32 1,200 Noninterest expense 613 181 47 841 Profit (loss) before provision for credit losses 161 213 (15 ) 359 Provision for credit losses 60 7 10 77 Income (loss) before income tax expense (benefit) 101 206 (25 ) 282 Income tax expense (benefit) 35 71 (14 ) 92 Net income (loss) $66 $135 ($11 ) $190 Total average assets $52,489 $42,617 $40,415 $135,521 As of and for the Six Months Ended June 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,183 $614 $30 $1,827 Noninterest income 427 221 37 685 Total revenue 1,610 835 67 2,512 Noninterest expense 1,248 373 17 1,638 Profit before provision for credit losses 362 462 50 874 Provision for credit losses 112 8 61 181 Income (loss) before income tax expense (benefit) 250 454 (11 ) 693 Income tax expense (benefit) 89 157 (19 ) 227 Net income $161 $297 $8 $466 Total average assets $55,388 $46,346 $38,745 $140,479 As of and for the Six Months Ended June 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,077 $562 $37 $1,676 Noninterest income 449 208 50 707 Total revenue 1,526 770 87 2,383 Noninterest expense 1,209 354 88 1,651 Profit (loss) before provision for credit losses 317 416 (1 ) 732 Provision for credit losses 123 (14 ) 26 135 Income (loss) before income tax expense (benefit) 194 430 (27 ) 597 Income tax expense (benefit) 67 148 (17 ) 198 Net income (loss) $127 $282 ($10 ) $399 Total average assets $52,048 $42,114 $40,267 $134,429 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, (dollars in millions, except share and per-share data) 2016 2015 2016 2015 Numerator (basic and diluted): Net income $243 $190 $466 $399 Less: Preferred stock dividends — — 7 — Net income available to common stockholders $243 $190 $459 $399 Denominator: Weighted-average common shares outstanding - basic 528,968,330 537,729,248 528,519,489 541,986,653 Dilutive common shares: share-based awards 1,396,873 2,180,118 1,877,382 2,817,615 Weighted-average common shares outstanding - diluted 530,365,203 539,909,366 530,396,871 544,804,268 Earnings per common share: Basic $0.46 $0.35 $0.87 $0.74 Diluted 0.46 0.35 0.87 0.73 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. |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Deposit insurance $29 $26 $55 $60 Promotional expense 25 29 49 51 Other 74 84 139 161 Other operating expense $128 $139 $243 $272 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated the impacts of events that have occurred subsequent to June 30, 2016 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 July 19, 2016, the Company completed the sale of consumer real estate-secured loans classified as TDRs (the “TDR Transaction”). The TDR Transaction will result in a third quarter 2016 pre-tax gain of approximately $70 million on the sale of $310 million of loans held for sale. On July 20, 2016, the Company declared a quarterly common stock dividend of $0.12 per share, or $63 million , payable on August 17, 2016 to stockholders of record at the close of business on August 3, 2016. On July 28, 2016, the Company issued $350 million of 2.375% fixed-rate senior notes due 2021, and used the net proceeds and available cash to repurchase $500 million of its subordinated notes held by RBS. Specifically, the Company retired $334 million of its 4.082% subordinated notes due 2025 and $166 million of its 4.023% subordinated notes due 2024 that were held by RBS. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The unaudited interim Consolidated Financial Statements, including the Notes thereto of Citizens Financial Group, Inc., have been prepared in accordance with GAAP interim reporting requirements, and therefore do not include all information and Notes included in the audited Consolidated Financial Statements in conformity with GAAP. These unaudited interim Consolidated Financial Statements and Notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements and accompanying Notes included in the Company’s Form 10-K for the year ended December 31, 2015. The Company’s principal business activity is banking, conducted through its subsidiaries, Citizens Bank, N.A. and Citizens Bank of Pennsylvania. The unaudited interim Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. |
Reclassifications | Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” Under current GAAP, the Company reflects credit losses on financial assets measured on an amortized cost basis only when the losses are probable or have been incurred. The ASU replaces this approach with a forward-looking methodology that reflects the expected credit losses over the lives of financial assets, starting when the assets are first acquired. Under the revised methodology, credit losses will be measured based on past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets. The ASU also revises the approach to recognizing credit losses on securities available for sale by allowing entities to record reversals of credit losses in current-period earnings. The ASU is effective for the Company beginning on January 1, 2020. The Company is currently assessing the impact of this guidance on the Company’s unaudited interim Consolidated Financial Statements. In May 2016, the FASB issued ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” The ASU supplements the new revenue recognition standard issued in 2014 by addressing certain issues in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. 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 unaudited interim Consolidated Financial Statements. In April 2016, the FASB issued ASU No. 2016-10 “Identifying Performance Obligations and Licensing.” The ASU supplements the new revenue recognition standard issued in 2014 by clarifying the guidance related to licensing and the identification of performance obligations. 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 unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09 “Improvements to Employee Share-Based Payment Accounting.” The ASU modifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-08 “Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The ASU supplements the new revenue recognition standard issued in 2014 by clarifying the implementation guidance on principal versus agent considerations. 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 unaudited interim Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-05 “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The ASU clarifies that a change in a counterparty to a derivative instrument that has been designated as a hedging instrument, in and of itself, does not result in a hedge de-designation under ASC 815. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance is not expected to have a material impact on the Company’s unaudited interim Consolidated Financial Statements. 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 unaudited interim 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 debt securities available for sale. 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 unaudited interim Consolidated Financial Statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 December 31, 2015 (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 $15 $— $— $15 $16 $— $— $16 State and political subdivisions 9 — — 9 9 — — 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 17,588 401 (8 ) 17,981 17,234 153 (67 ) 17,320 Other/non-agency 489 2 (34 ) 457 555 4 (37 ) 522 Total mortgage-backed securities 18,077 403 (42 ) 18,438 17,789 157 (104 ) 17,842 Total debt securities available for sale 18,101 403 (42 ) 18,462 17,814 157 (104 ) 17,867 Marketable equity securities 5 — — 5 5 — — 5 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 17 — — 17 Total securities available for sale $18,118 $403 ($42 ) $18,479 $17,831 $157 ($104 ) $17,884 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $3,912 $119 $— $4,031 $4,105 $27 ($11 ) $4,121 Other/non-agency 1,061 44 — 1,105 1,153 23 — 1,176 Total securities held to maturity $4,973 $163 $— $5,136 $5,258 $50 ($11 ) $5,297 Other Investment Securities, at Fair Value Money market mutual fund $68 $— $— $68 $65 $— $— $65 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $73 $— $— $73 $70 $— $— $70 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $468 $— $— $468 Federal Home Loan Bank stock 410 — — 410 395 — — 395 Total other investment securities, at cost $873 $— $— $873 $863 $— $— $863 |
Other than temporary impairment recognized in earnings | The following table presents the net securities impairment losses recognized in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Other-than-temporary impairment: Total other-than-temporary impairment losses ($1 ) ($1 ) ($42 ) ($32 ) Portions of loss recognized in other comprehensive income (before taxes) (6 ) (1 ) 34 29 Net securities impairment losses recognized in earnings ($7 ) ($2 ) ($8 ) ($3 ) |
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: June 30, 2016 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 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 7 $95 $— 33 $734 ($8 ) 40 $829 ($8 ) Other/non-agency 4 19 — 20 330 (34 ) 24 349 (34 ) Total mortgage-backed securities 11 114 — 53 1,064 (42 ) 64 1,178 (42 ) Total 11 $114 $— 53 $1,064 ($42 ) 64 $1,178 ($42 ) 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 $— U.S. 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 ) |
Schedule of credit losses recognized in earnings | The following table presents the cumulative credit-related losses recognized in earnings on debt securities held by the Company: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Cumulative balance at beginning of period $66 $62 $66 $62 Credit impairments recognized in earnings on securities that have been previously impaired 7 2 8 3 Reductions due to increases in cash flow expectations on impaired securities — (2 ) (1 ) (3 ) Cumulative balance at end of period $73 $62 $73 $62 |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities 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. June 30, 2016 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 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 15 36 1,668 15,869 17,588 Other/non-agency — 50 2 437 489 Total debt securities available for sale 30 86 1,670 16,315 18,101 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,912 3,912 Other/non-agency — — — 1,061 1,061 Total debt securities held to maturity — — — 4,973 4,973 Total amortized cost of debt securities $30 $86 $1,670 $21,288 $23,074 Fair Value: Debt securities available for sale U.S. Treasury and other $15 $— $— $— $15 State and political subdivisions — — — 9 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 15 38 1,710 16,218 17,981 Other/non-agency — 50 3 404 457 Total debt securities available for sale 30 88 1,713 16,631 18,462 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,031 4,031 Other/non-agency — — — 1,105 1,105 Total debt securities held to maturity — — — 5,136 5,136 Total fair value of debt securities $30 $88 $1,713 $21,767 $23,598 |
Schedule of income recognized on investment securities | The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Taxable $141 $155 $286 $314 Non-taxable — — — — Total interest income from investment securities $141 $155 $286 $314 Realized gains and losses on securities are shown below: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Gains on sale of debt securities $4 $10 $13 $22 Losses on sale of debt securities — (1 ) — (5 ) Debt securities gains, net $4 $9 $13 $17 Equity securities gains $— $1 $— $3 |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are shown below: June 30, 2016 December 31, 2015 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $705 $720 $805 $808 Pledged against FHLB borrowed funds 1,070 1,114 1,163 1,186 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 4,236 4,341 3,579 3,610 |
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: June 30, 2016 December 31, 2015 (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 — Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 11 “Derivatives.” |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio follows: (in millions) June 30, 2016 December 31, 2015 Commercial $35,927 $33,264 Commercial real estate 9,825 8,971 Leases 3,805 3,979 Total commercial 49,557 46,214 Residential mortgages 13,855 13,318 Home equity loans 2,177 2,557 Home equity lines of credit 14,418 14,674 Home equity loans serviced by others (1) 860 986 Home equity lines of credit serviced by others (1) 273 389 Automobile 14,075 13,828 Student 5,516 4,359 Credit cards 1,613 1,634 Other retail 1,207 1,083 Total retail 53,994 52,828 Total loans and leases (2) (3) $103,551 $99,042 (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 $850 million and $365 million as of June 30, 2016 and December 31, 2015 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above and amounted to $17.2 billion and $17.6 billion at June 30, 2016 and December 31, 2015 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, 33
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | The following is a summary of changes in the allowance for credit losses: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $633 $591 $1,224 $596 $620 $1,216 Charge-offs (7 ) (106 ) (113 ) (20 ) (219 ) (239 ) Recoveries 5 43 48 9 82 91 Net charge-offs (2 ) (63 ) (65 ) (11 ) (137 ) (148 ) Provision charged to income 45 42 87 91 87 178 Allowance for loan and lease losses, end of period 676 570 1,246 676 570 1,246 Reserve for unfunded lending commitments, beginning of period 58 — 58 58 — 58 Credit for unfunded lending commitments 3 — 3 3 — 3 Reserve for unfunded lending commitments as of period end 61 — 61 61 — 61 Total allowance for credit losses as of period end $737 $570 $1,307 $737 $570 $1,307 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $578 $624 $1,202 $544 $651 $1,195 Charge-offs (15 ) (106 ) (121 ) (21 ) (215 ) (236 ) Recoveries 8 35 43 36 68 104 Net recoveries (charge-offs) (7 ) (71 ) (78 ) 15 (147 ) (132 ) Sales/Other — — — — (2 ) (2 ) Provision charged to income (6 ) 83 77 6 134 140 Allowance for loan and lease losses, end of period 565 636 1,201 565 636 1,201 Reserve for unfunded lending commitments, beginning of period 56 — 56 61 — 61 Provision for unfunded lending commitments — — — (5 ) — (5 ) Reserve for unfunded lending commitments as of period end 56 — 56 56 — 56 Total allowance for credit losses as of period end $621 $636 $1,257 $621 $636 $1,257 |
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: June 30, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $408 $802 $1,210 $218 $1,165 $1,383 Formula-based evaluation 49,149 53,192 102,341 45,996 51,663 97,659 Total $49,557 $53,994 $103,551 $46,214 $52,828 $99,042 |
Schedule of allowance for credit losses by evaluation method | The following is a summary of the allowance for credit losses by evaluation method: June 30, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $52 $79 $131 $36 $101 $137 Formula-based evaluation 685 491 1,176 618 519 1,137 Allowance for credit losses $737 $570 $1,307 $654 $620 $1,274 |
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: June 30, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $33,931 $855 $1,015 $126 $35,927 Commercial real estate 9,281 318 156 70 9,825 Leases 3,603 80 122 — 3,805 Total $46,815 $1,253 $1,293 $196 $49,557 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 |
Schedule of retail loan investments categorized by delinquency status | The recorded investment in classes of retail loans, categorized by delinquency status is as follows: June 30, 2016 (in millions) Current 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $13,571 $89 $40 $10 $145 $13,855 Home equity loans 1,937 133 20 8 79 2,177 Home equity lines of credit 13,755 388 44 24 207 14,418 Home equity loans serviced by others (1) 781 48 10 4 17 860 Home equity lines of credit serviced by others (1) 184 37 12 5 35 273 Automobile 12,959 926 122 31 37 14,075 Student 5,340 105 18 11 42 5,516 Credit cards 1,539 42 10 8 14 1,613 Other retail 1,149 44 6 4 4 1,207 Total $51,215 $1,812 $282 $105 $580 $53,994 (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, 2015 (in millions) Current 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Residential mortgages $12,905 $97 $54 $16 $246 $13,318 Home equity loans 2,245 164 32 12 104 2,557 Home equity lines of credit 13,982 407 60 20 205 14,674 Home equity loans serviced by others (1) 886 60 14 6 20 986 Home equity lines of credit serviced by others (1) 296 48 10 6 29 389 Automobile 12,670 964 127 32 35 13,828 Student 4,175 113 19 11 41 4,359 Credit cards 1,554 44 11 9 16 1,634 Other retail 1,013 53 8 4 5 1,083 Total $49,726 $1,950 $335 $116 $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. |
Schedule of nonperforming loans and leases by class | The following table presents nonperforming loans and leases and loans accruing 90 days or more past due: Nonperforming (1) Accruing and 90 days or more past due (in millions) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Commercial $277 $71 $— $1 Commercial real estate 70 77 4 — Leases — — — — Total commercial 347 148 4 1 Residential mortgages (2) (3) (4) 174 331 15 — Home equity loans (2) 104 135 — — Home equity lines of credit 251 272 — — Home equity loans serviced by others (5) 33 38 — — Home equity lines of credit serviced by others (5) 38 32 — — Automobile 43 42 — — Student 37 41 6 6 Credit card 14 16 — — Other retail 3 5 1 2 Total retail 697 912 22 8 Total $1,044 $1,060 $26 $9 (1) Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million . (2) Nonperforming balances at June 30, 2016 excluded $71 million of troubled debt restructured loans held for sale, including $54 million of residential mortgages and $17 million of home equity loans. (3) Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of June 30, 2016 , $15 million of these loans were accruing and 90 days or more past due. (4) Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of June 30, 2016 these loans totaled $34 million . These loans are consolidated on the Company’s Consolidated Balance Sheets. (5) The Company's SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Schedule of nonperforming assets | A summary of other nonperforming assets is as follows: (in millions) June 30, 2016 December 31, 2015 Other nonperforming assets, net of valuation allowance: Commercial $1 $1 Retail 47 45 Other nonperforming assets, net of valuation allowance $48 $46 |
Summary of key performance indicators | A summary of key performance indicators is as follows: June 30, 2016 December 31, 2015 Nonperforming commercial loans and leases as a percentage of total loans and leases (1) 0.34 % 0.15 % Nonperforming retail loans as a percentage of total loans and leases (1) 0.67 0.92 Total nonperforming loans and leases as a percentage of total loans and leases (1) 1.01 % 1.07 % Nonperforming commercial assets as a percentage of total assets (1) 0.24 % 0.11 % Nonperforming retail assets as a percentage of total assets (1) 0.51 0.69 Total nonperforming assets as a percentage of total assets (1) 0.75 % 0.80 % (1) December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. |
Analysis of age of past due amounts | The following is an analysis of the age of the past due amounts (accruing and nonaccruing): June 30, 2016 December 31, 2015 (in millions) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Commercial $8 $23 $277 $308 $9 $4 $71 $84 Commercial real estate 2 5 74 81 30 3 77 110 Leases 1 — — 1 9 1 — 10 Total commercial 11 28 351 390 48 8 148 204 Residential mortgages 40 10 145 195 54 16 246 316 Home equity loans 20 8 79 107 32 12 104 148 Home equity lines of credit 44 24 207 275 60 20 205 285 Home equity loans serviced by others (1) 10 4 17 31 14 6 20 40 Home equity lines of credit serviced by others (1) 12 5 35 52 10 6 29 45 Automobile 122 31 37 190 127 32 35 194 Student 18 11 42 71 19 11 41 71 Credit cards 10 8 14 32 11 9 16 36 Other retail 6 4 4 14 8 4 5 17 Total retail 282 105 580 967 335 116 701 1,152 Total $293 $133 $931 $1,357 $383 $124 $849 $1,356 (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: June 30, 2016 (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 $216 $46 $139 $391 $355 Commercial real estate 42 6 11 56 53 Total commercial 258 52 150 447 408 Residential mortgages 34 4 130 214 164 Home equity loans 51 5 107 198 158 Home equity lines of credit 26 3 160 223 186 Home equity loans serviced by others (1) 45 7 21 79 66 Home equity lines of credit serviced by others (1) 3 — 7 14 10 Automobile 4 — 14 23 18 Student 161 46 1 162 162 Credit cards 26 11 — 27 26 Other retail 10 3 2 14 12 Total retail 360 79 442 954 802 Total $618 $131 $592 $1,401 $1,210 (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, 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. |
Schedule of additional information on impaired loans | Additional information on impaired loans is as follows: Three Months Ended June 30, 2016 2015 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $324 $1 $129 Commercial real estate — 58 — 51 Total commercial 2 382 1 180 Residential mortgages 1 160 4 436 Home equity loans 1 158 3 272 Home equity lines of credit 2 184 1 151 Home equity loans serviced by others (1) 1 66 1 84 Home equity lines of credit serviced by others (1) — 10 — 10 Automobile — 15 — 12 Student 2 161 2 164 Credit cards 1 26 — 30 Other retail — 13 — 18 Total retail 8 793 11 1,177 Total $10 $1,175 $12 $1,357 (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. Six Months Ended June 30, 2016 2015 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $3 $248 $1 $133 Commercial real estate — 61 1 54 Total commercial 3 309 2 187 Residential mortgages 2 156 8 433 Home equity loans 3 154 5 266 Home equity lines of credit 3 182 2 150 Home equity loans serviced by others (1) 2 67 2 84 Home equity lines of credit serviced by others (1) — 9 — 10 Automobile — 14 — 11 Student 4 160 4 162 Credit cards 1 26 1 29 Other retail — 13 — 18 Total retail 15 781 22 1,163 Total $18 $1,090 $24 $1,350 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
Troubled debt restructurings on financing receivables | The following table summarizes how loans were modified during the three months ended June 30, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to June 30, 2016 . 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 3 $— $— 28 $4 $4 Commercial real estate — — — — — — Total commercial 3 — — 28 4 4 Residential mortgages 3 1 1 10 2 2 Home equity loans 15 1 1 21 2 2 Home equity lines of credit 6 — — 8 1 1 Home equity loans serviced by others (3) 3 — — — — — Home equity lines of credit serviced by others (3) 2 — — 3 1 1 Automobile 30 — — 3 — — Student — — — — — — Credit cards 552 3 3 — — — Other retail 1 — — — — — Total retail 612 5 5 45 6 6 Total 615 $5 $5 73 $10 $10 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 4 $20 $21 $— $— Commercial real estate — — — — — Total commercial 4 20 21 — — Residential mortgages 67 7 7 — — Home equity loans 94 5 5 (1 ) — Home equity lines of credit 92 6 6 — — Home equity loans serviced by others (3) 16 — — — — Home equity lines of credit serviced by others (3) 5 1 — — — Automobile 348 7 6 — 1 Student 111 2 2 1 — Credit cards — — — 1 — Other retail 5 — — — — Total retail 738 28 26 1 1 Total 742 $48 $47 $1 $1 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. (4) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The following table summarizes how loans were modified during the three months ended June 30, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to June 30, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 7 $1 $1 36 $2 $2 Commercial real estate — — — — — — Total commercial 7 1 1 36 2 2 Residential mortgages 20 3 3 9 2 2 Home equity loans 26 1 1 49 11 11 Home equity lines of credit — — — — — — Home equity loans serviced by others (3) 5 — — — — — Automobile 18 1 1 1 — — Credit cards 630 3 3 — — — Total retail 699 8 8 59 13 13 Total 706 $9 $9 95 $15 $15 Primary Modification Types Other (4) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 3 $— $— $— $— Commercial real estate — — — — — Total commercial 3 — — — — Residential mortgages 42 4 4 — — Home equity loans 97 7 7 — — Home equity lines of credit 78 5 5 — 1 Home equity loans serviced by others (3) 25 1 1 — — Home equity lines of credit serviced by others (3) 15 1 1 — — Automobile 172 3 2 — — Student 369 7 7 1 — Credit cards — — — 1 — Other retail 4 — — — — Total retail 802 28 27 2 1 Total 805 $28 $27 $2 $1 (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 six months ended June 30, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to June 30, 2016 . 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 8 $1 $1 54 $8 $8 Commercial real estate — — — — — — Total commercial 8 1 1 54 8 8 Residential mortgages 25 4 4 16 3 3 Home equity loans 29 2 2 37 4 4 Home equity lines of credit 13 1 1 27 3 3 Home equity loans serviced by others (3) 6 — — — — — Home equity lines of credit serviced by others (3) 2 — — 4 1 1 Automobile 51 1 1 8 — — Student — — — — — — Credit cards 1,081 6 6 — — — Other retail 1 — — — — — Total retail 1,208 14 14 92 11 11 Total 1,216 $15 $15 146 $19 $19 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 9 $41 $41 ($1 ) $— Commercial real estate — — — — — Total commercial 9 41 41 (1 ) — Residential mortgages 131 15 15 — — Home equity loans 181 11 11 (1 ) — Home equity lines of credit 124 8 8 — — Home equity loans serviced by others (3) 34 1 1 — — Home equity lines of credit serviced by others (3) 13 1 — — — Automobile 539 10 9 — 1 Student 297 6 6 2 — Credit cards — — — 1 — Other retail 8 — — — — Total retail 1,327 52 50 2 1 Total 1,336 $93 $91 $1 $1 (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 six months ended June 30, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to June 30, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 14 $3 $3 64 $12 $12 Commercial real estate 1 — — — — — Total commercial 15 3 3 64 12 12 Residential mortgages 53 9 9 19 4 4 Home equity loans 47 2 2 86 16 16 Home equity lines of credit — — — 3 — — Home equity loans serviced by others (3) 22 1 1 — — — Home equity lines of credit serviced by others (3) — — — — — — Automobile 38 1 1 2 — — Student — — — — — — Credit cards 1,234 7 7 — — — Other retail — — — — — — Total retail 1,394 20 20 110 20 20 Total 1,409 $23 $23 174 $32 $32 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 4 $2 $2 ($1 ) $— Commercial real estate 1 4 4 — — Total commercial 5 6 6 (1 ) — Residential mortgages 106 10 10 (1 ) — Home equity loans 294 17 17 — — Home equity lines of credit 213 14 12 — 2 Home equity loans serviced by others (3) 71 3 3 — 1 Home equity lines of credit serviced by others (3) 22 1 1 — — Automobile 469 8 6 — 1 Student 750 14 14 3 — Credit cards — — — 1 — Other retail 15 — — — — Total retail 1,940 67 63 3 4 Total 1,945 $73 $69 $2 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. (4) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forbearance, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. |
Schedule of defaults | The table below summarizes TDRs that defaulted during the three months ended June 30, 2016 and 2015 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 June 30, 2016 and 2015 . If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell. The amount written off is charged to the ALLL. Three Months Ended June 30, 2016 2015 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 8 $3 8 $1 Commercial real estate 1 — — — Total commercial 9 3 8 1 Residential mortgages 35 4 34 5 Home equity loans 32 2 32 2 Home equity lines of credit 20 1 32 1 Home equity loans serviced by others (1) 11 — 7 — Home equity lines of credit serviced by others (1) 6 — 6 — Automobile 22 1 19 — Student 18 1 44 1 Credit cards 85 — 100 1 Other retail — — 1 — Total retail 229 9 275 10 Total 238 $12 283 $11 (1) The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. The table below summarizes TDRs that defaulted during the six months ended June 30, 2016 and 2015 within 12 months of their modification date. Six Months Ended June 30, 2016 2015 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 11 $3 14 $1 Commercial real estate 1 — — — Total commercial 12 3 14 1 Residential mortgages 89 12 83 11 Home equity loans 50 3 83 6 Home equity lines of credit 45 4 72 3 Home equity loans serviced by others (1) 21 1 23 1 Home equity lines of credit serviced by others (1) 11 — 7 — Automobile 37 1 42 1 Student 31 1 109 2 Credit cards 206 1 202 1 Other retail — — 3 — Total retail 490 23 624 25 Total 502 $26 638 $26 (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: June 30, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student Total High loan-to-value $595 $782 $621 $— $— $1,998 Interest only/negative amortization 1,369 — — — 1 1,370 Low introductory rate — — — 94 — 94 Multiple characteristics and other 4 — — — — 4 Total $1,968 $782 $621 $94 $1 $3,466 December 31, 2015 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student 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 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | A summary of these investments is as follows: (in millions) June 30, 2016 December 31, 2015 LIHTC investment included in other assets $660 $598 LIHTC unfunded commitments included in other liabilities 365 365 Renewable energy investments included in other assets 117 118 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2016 2015 2016 2015 MSRs: Balance as of beginning of period $169 $180 $173 $184 Amount capitalized 5 7 10 13 Amortization (8 ) (10 ) (17 ) (20 ) Carrying amount before valuation allowance 166 177 166 177 Valuation allowance for servicing assets: Balance as of beginning of period 14 17 9 18 Valuation charge-offs (recoveries) (1 ) (6 ) 4 (7 ) Balance at end of period 13 11 13 11 Net carrying value of MSRs $153 $166 $153 $166 |
Servicing asset at amortized cost | Changes related to MSRs were as follows: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2016 2015 2016 2015 MSRs: Balance as of beginning of period $169 $180 $173 $184 Amount capitalized 5 7 10 13 Amortization (8 ) (10 ) (17 ) (20 ) Carrying amount before valuation allowance 166 177 166 177 Valuation allowance for servicing assets: Balance as of beginning of period 14 17 9 18 Valuation charge-offs (recoveries) (1 ) (6 ) 4 (7 ) Balance at end of period 13 11 13 11 Net carrying value of MSRs $153 $166 $153 $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: (dollars in millions) June 30, 2016 December 31, 2015 Fair value $165 $178 Weighted average life (in years) 4.9 5.4 Weighted average constant prepayment rate 13.5% 11.6% Weighted average discount rate 9.7% 9.7% |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights capitalized in current period | The key economic assumptions used in estimating the fair value of MSRs capitalized during the period were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted average life (in years) 5.9 6.3 6.0 5.4 Weighted average constant prepayment rate 11.3% 9.8% 11.1% 11.1% Weighted average discount rate 9.7% 9.7% 9.7% 9.6% |
Schedule of the impact to fair value of an adverse change in key economic assumptions | The sensitivity analysis below as of June 30, 2016 and December 31, 2015 presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical. The effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment speeds, could result in changes in the discount rates), which might amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. (in millions) June 30, 2016 December 31, 2015 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $6 $5 Decline in fair value from a 100 basis point decrease in interest rates $17 $11 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 $5 $6 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | The following is a summary of the Company’s short-term borrowed funds: (in millions) June 30, 2016 December 31, 2015 Securities sold under agreements to repurchase $717 $802 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,770 2,630 Total short-term borrowed funds $3,487 $3,432 Key data related to short-term borrowed funds is presented in the following table: (dollars in millions) As of and for the Six Months Ended June 30, 2016 As of and for the Year Ended December 31, 2015 Weighted-average interest rate at period-end: Federal funds purchased and securities sold under agreements to repurchase 0.00 % 0.15 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.65 0.44 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase $1,274 $5,375 Other short-term borrowed funds (primarily current portion of FHLB advances) 4,764 7,004 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase $927 $3,364 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,421 5,865 Weighted-average interest rate during the period: Federal funds purchased and securities sold under agreements to repurchase 0.07 % 0.22 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.60 0.28 |
Schedule of long-term borrowed funds | The following is a summary of the Company’s long-term borrowed funds: (in millions) June 30, 2016 December 31, 2015 Citizens Financial Group, Inc.: 4.150% fixed rate subordinated debt, due 2022 (1) $347 $350 5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023 (2) 333 333 3.750% fixed rate subordinated debt, due 2024 (2) (3) 250 250 4.023% fixed rate subordinated debt, due 2024 (2) (4) 218 331 4.082% fixed rate subordinated debt, due 2025 (2) (5) 355 331 4.350% fixed rate subordinated debt, due 2025 (6) 249 250 4.300% fixed rate subordinated debt, due 2025 (7) 749 750 Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (8) (9) 753 749 2.300% senior unsecured notes, due 2018 (8) (10) 756 747 2.450% senior unsecured notes, due 2019 (8) (11) 767 752 2.500% senior unsecured notes, due 2019 (8)(12) 753 — 2.550% senior unsecured notes, due 2021 (8)(13) 1,004 — Federal Home Loan advances due through 2033 5,264 5,018 Other 12 25 Total long-term borrowed funds $11,810 $9,886 (1) These balances are comprised of: principal balances of $350 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2016 . (2) Borrowed funds with RBS as of December 31, 2015 . See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. (3) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (4) These balances are comprised of: principal balance of $208 million and $333 million at June 30, 2016 and December 31, 2015 , respectively, as well as the impact from interest rate swaps of $10 million and ($2) million at June 30, 2016 and December 31, 2015 , respectively. See Note 11 “Derivatives” for further information. In addition, on March 7, 2016, the Company repurchased $125 million of these securities from RBS. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. (5) These balances are comprised of: principal balance of $334 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $21 million and ($3) million at June 30, 2016 and December 31, 2015 , respectively. See Note 11 “Derivatives” for further information. (6) These balances are comprised of: principal balances of $250 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . (7) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . (8) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (9) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $4 million and ($1) million at June 30, 2016 and December 31, 2015 , respectively; and ($1) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (10) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $8 million and ($3) million at June 30, 2016 and December 31, 2015 , respectively; and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (11) These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015 ; impact from interest rate swaps of $20 million and $2 million at June 30, 2016 and December 31, 2015 , respectively; and ($3) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (12) The balance is comprised of: principal balance of $750 million at June 30, 2016 ; impact from interest rate swaps of $5 million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “Derivatives” for further information. (13) The balance is comprised of: principal balance of $1.0 billion at June 30, 2016 ; impact from interest rate swaps of $9 million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2016 . See Note 11 “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 June 30, 2016 : Year (in millions) CFG Parent Company Banking Subsidiaries Consolidated 2017 or on demand $— $6,004 $6,004 2018 — 761 761 2019 — 1,521 1,521 2020 — 2 2 2021 — 1,009 1,009 2022 and thereafter 2,501 12 2,513 Total $2,501 $9,309 $11,810 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic (income) cost | The following table presents the components of net periodic (income) cost for the Company’s qualified and non-qualified plans: Six Months Ended June 30, Qualified Plan Non-Qualified Plan Total (in millions) 2016 2015 2016 2015 2016 2015 Service cost $2 $2 $— $— $2 $2 Interest cost 22 22 2 2 24 24 Expected return on plan assets (34 ) (37 ) — — (34 ) (37 ) Amortization of actuarial loss 7 6 1 1 8 7 Net periodic pension (income) cost ($3 ) ($7 ) $3 $3 $— ($4 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 December 31, 2015 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $15,500 $425 $255 $16,750 $96 $50 Derivatives not designated as hedging instruments: Interest rate contracts 39,606 810 723 33,719 540 455 Foreign exchange contracts 9,490 193 185 8,366 163 156 Other contracts 1,491 15 14 981 8 5 Total derivatives not designated as hedging instruments 1,018 922 711 616 Gross derivative fair values 1,443 1,177 807 666 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (130 ) (130 ) (178 ) (178 ) Less: Cash collateral applied (2) (1 ) (37 ) (4 ) (3 ) Total net derivative fair values presented in the Consolidated Balance Sheets (3) $1,312 $1,010 $625 $485 (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 do not measure the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities” for further information |
Schedule of fair value hedges | The following tables summarize certain information related to the Company’s fair value hedges: The Effect of Fair Value Hedges on Net Income Amounts Recognized in Other Income for the Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $32 ($31 ) $1 ($3 ) $3 $— The Effect of Fair Value Hedges on Net Income Amounts Recognized in Other Income for the Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $84 ($83 ) $1 $6 ($6 ) $— |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table summarizes certain information related to the Company’s cash flow hedges: The Effect of Cash Flow Hedges on Net Income and Stockholders' Equity Amounts Recognized for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Effective portion of gain (loss) recognized in OCI (1) $21 ($8 ) $75 $96 Amounts reclassified from OCI to interest income (2) 21 17 43 35 Amounts reclassified from OCI to interest expense (2) (8 ) (14 ) (16 ) (29 ) (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. |
Schedule of effect of derivative Instruments on net income | The following table summarizes certain information related to the Company’s customer derivatives and economic hedges: The Effect of Customer Derivatives and Economic Hedges on Net Income Amounts Recognized in Noninterest Income for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Customer derivative contracts Customer interest rate contracts (1) ($2 ) ($9 ) $95 $64 Customer foreign exchange contracts (1) (23 ) 18 28 (17 ) Residential loan commitments (2) 3 (7 ) 7 (7 ) Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) 15 17 (76 ) (51 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (3) 23 (19 ) (27 ) 16 Forward sale contracts (2) (5 ) 3 (10 ) 2 Total $11 $3 $17 $7 (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 letter of credit fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | The following is a summary of outstanding off-balance sheet arrangements: (in millions) June 30, 2016 December 31, 2015 Commitment amount: Undrawn commitments to extend credit $58,622 $56,524 Financial standby letters of credit 1,946 2,010 Performance letters of credit 37 42 Commercial letters of credit 70 87 Marketing rights 46 47 Risk participation agreements 64 26 Residential mortgage loans sold with recourse 9 10 Total $60,794 $58,746 |
RELATED PARTY TRANSACTIONS AN40
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of inter-company borrowed funds | The following is a summary of borrowed funds originally issued to RBS: Interest Rate Maturity Date June 30, 2016 December 31, 2015 (dollars in millions) Subordinated debt 5.158 % June 2023 $333 $333 3.750 % (1) July 2024 250 250 4.023 % (2) (3) October 2024 208 333 4.082 % (3) January 2025 334 334 (1) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (2) On March 7, 2016, the Company repurchased $125 million of these securities from RBS. (3) On July 28, 2016, the Company repurchased $500 million of its subordinated notes held by RBS, including $166 million of its 4.023% subordinated notes due 2024 and $334 million of its 4.082% subordinated notes due 2025. Refer to Note 21 “Subsequent Events” for further information. |
Schedule of related party transactions, recorded interest expense | The following table presents total interest expense recorded on the subordinated debt presented above: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Interest expense on subordinated debt $10 $20 $21 $40 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 December 31, 2015 (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 $424 $408 $16 $268 $263 $5 Commercial and commercial real estate loans held for sale, at fair value 54 54 — 57 57 — |
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 June 30, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $18,438 $— $18,438 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury and other 15 15 — — Total securities available for sale 18,479 15 18,464 — Loans held for sale, at fair value: Residential loans held for sale 424 — 424 — Commercial loans held for sale 54 — 54 — Total loans held for sale, at fair value 478 — 478 — Derivative assets: Interest rate swaps 1,235 — 1,235 — Foreign exchange contracts 193 — 193 — Other contracts 15 — 15 — Total derivative assets 1,443 — 1,443 — Other investment securities, at fair value: Money market mutual fund 68 68 — — Other investments 5 — 5 — Total other investment securities, at fair value 73 68 5 — Total assets $20,473 $83 $20,390 $— Derivative liabilities: Interest rate swaps $978 $— $978 $— Foreign exchange contracts 185 — 185 — Other contracts 14 — 14 — Total derivative liabilities 1,177 — 1,177 — Total liabilities $1,177 $— $1,177 $— 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 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 changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Beginning of period balance $— $1 $— $5 Purchases, issuances, sales and settlements: Purchases — — — 1 Sales — — — — Settlements — — — — Net (losses) gains — — — — Transfers from Level 3 to Level 2 — — — (5 ) Balance as of June 30 $— $1 $— $1 Net unrealized gain (loss) included in net income for the year relating to assets held at period end $— $— $— $1 |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Impaired collateral-dependent loans ($6 ) ($10 ) ($11 ) ($13 ) MSRs 1 6 (4 ) 7 Foreclosed assets (1 ) (1 ) (2 ) (2 ) |
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: June 30, 2016 December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $55 $— $55 $— $60 $— $60 $— MSRs 165 — — 165 178 — — 178 Foreclosed assets 46 — 46 — 42 — 42 — |
Assets and liabilities measured at fair value | The following table is a summary of fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions: June 30, 2016 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 $4,973 $5,136 $— $— $4,973 $5,136 $— $— Other investment securities, at cost 873 873 — — 873 873 — — Other loans held for sale 372 372 — — — — 372 372 Loans and leases 103,551 104,381 — — 55 55 103,496 104,326 Financial Liabilities: Deposits 106,257 106,260 — — 106,257 106,260 — — Federal funds purchased and securities sold under agreements to repurchase 717 717 — — 717 717 — — Other short-term borrowed funds 2,770 2,770 — — 2,770 2,770 — — Long-term borrowed funds 11,810 11,968 — — 11,810 11,968 — — 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 — — |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company’s capital and capital ratios under Basel III Transitional rules as of June 30, 2016 and December 31, 2015. 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 June 30, 2016 Common equity tier 1 capital (1) (5) $13,768 11.5 % $6,124 5.125 % $7,767 6.5 % Tier 1 capital (2) (5) 14,015 11.7 7,916 6.625 9,559 8.0 Total capital (3)(5) 17,823 14.9 10,306 8.625 11,949 10.0 Tier 1 leverage (4) 14,015 10.3 5,452 4.000 6,815 5.0 As of December 31, 2015 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 (1) “Common equity tier 1 capital ratio” represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. (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. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. (5) “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0.625% . |
EXIT COSTS AND RESTRUCTURING 43
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and related costs | The following tables include the activity in the exit costs and restructuring reserves: As of and for the Three Months Ended June 30, 2016 2015 (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Salaries & Employee Benefits Occupancy & Equipment Other Total Beginning of period balance $10 $14 $— $24 $18 $17 $— $35 Additions — — — — 5 15 5 25 Reversals — — — — — — — — Utilization (2 ) (2 ) — (4 ) (2 ) (5 ) (1 ) (8 ) Balance as of June 30, $8 $12 $— $20 $21 $27 $4 $52 As of and for the Six Months Ended June 30, 2016 2015 (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Salaries & Employee Benefits Occupancy & Equipment Other Total Beginning of period balance $12 $16 $5 $33 $23 $18 $3 $44 Additions — — — — 5 17 6 28 Reversals — — — — (2 ) — — (2 ) Utilization (4 ) (4 ) (5 ) (13 ) (5 ) (8 ) (5 ) (18 ) Balance as of June 30, $8 $12 $— $20 $21 $27 $4 $52 |
RECLASSIFICATIONS OUT OF ACCU44
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following tables present the changes in the balances, net of income taxes, of each component of AOCI: As of and for the three months ended June 30, (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI Balance at beginning of period April 1, 2015 ($6 ) $141 ($375 ) ($240 ) Other comprehensive income (loss) before reclassifications (5 ) (110 ) — (115 ) Other-than-temporary impairment not recognized in earnings on securities — 1 — 1 Amounts reclassified from other comprehensive (loss) income (2 ) (5 ) 2 (5 ) Net other comprehensive income (loss) (7 ) (114 ) 2 (119 ) Balance at end of period June 30, 2015 ($13 ) $27 ($373 ) ($359 ) Balance at beginning of period April 1, 2016 $35 $96 ($367 ) ($236 ) Other comprehensive income before reclassifications 13 64 — 77 Other-than-temporary impairment not recognized in earnings on securities — 4 — 4 Amounts reclassified from other comprehensive (loss) income (9 ) 2 3 (4 ) Net other comprehensive income 4 70 3 77 Balance at end of period June 30, 2016 $39 $166 ($364 ) ($159 ) As of and for the six month ended June 30, (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI Balance at beginning of period January 1, 2015 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income (loss) before reclassifications 60 (20 ) — 40 Other-than-temporary impairment not recognized in earnings on securities — (18 ) — (18 ) Amounts reclassified from other comprehensive (loss) income (4 ) (9 ) 4 (9 ) Net other comprehensive income 56 (47 ) 4 13 Balance at end of period June 30, 2015 ($13 ) $27 ($373 ) ($359 ) Balance at beginning of period January 1, 2016 $10 ($28 ) ($369 ) ($387 ) Other comprehensive income before reclassifications 46 218 — 264 Other-than-temporary impairment not recognized in earnings on securities — (21 ) — (21 ) Amounts reclassified from other comprehensive (loss) income (17 ) (3 ) 5 (15 ) Net other comprehensive income 29 194 5 228 Balance at end of period June 30, 2016 $39 $166 ($364 ) ($159 ) |
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: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $21 $17 $43 $35 Interest income (8 ) (14 ) (16 ) (29 ) Interest expense 13 3 27 6 Income before income tax expense 4 1 10 2 Income tax expense $9 $2 $17 $4 Net income Reclassification of net securities gains (losses) to net income: $4 $9 $13 $17 Securities gains, net (7 ) (2 ) (8 ) (3 ) Net securities impairment losses recognized in earnings (3 ) 7 5 14 Income before income tax expense (1 ) 2 2 5 Income tax expense ($2 ) $5 $3 $9 Net income Reclassification of changes related to defined benefit pension plans: ($4 ) ($4 ) ($8 ) ($7 ) Salaries and employee benefits (4 ) (4 ) (8 ) (7 ) Income before income tax expense (1 ) (2 ) (3 ) (3 ) Income tax expense ($3 ) ($2 ) ($5 ) ($4 ) Net income Total reclassification gains (losses) $4 $5 $15 $9 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Net interest income (includes $13, $3, $27 and $6 of AOCI reclassifications, respectively) $923 $840 $1,827 $1,676 Provision for credit losses 90 77 181 135 Noninterest income (includes ($3), $7, $5 and $14 of AOCI reclassifications, respectively) 355 360 685 707 Noninterest expense (includes $4, $4, $8 and $7 of AOCI reclassifications, respectively) 827 841 1,638 1,651 Income before income tax expense 361 282 693 597 Income tax expense (includes $2, $1, $9 and $4 income tax net expense (benefit) from reclassification items, respectively) 118 92 227 198 Net income $243 $190 $466 $399 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended June 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $602 $314 $7 $923 Noninterest income 219 122 14 355 Total revenue 821 436 21 1,278 Noninterest expense 632 186 9 827 Profit before provision for credit losses 189 250 12 451 Provision for credit losses 49 (1 ) 42 90 Income (loss) before income tax expense (benefit) 140 251 (30 ) 361 Income tax expense (benefit) 50 87 (19 ) 118 Net income (loss) $90 $164 ($11 ) $243 Total average assets $55,660 $47,388 $39,131 $142,179 As of and for the Three Months Ended June 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $544 $286 $10 $840 Noninterest income 230 108 22 360 Total revenue 774 394 32 1,200 Noninterest expense 613 181 47 841 Profit (loss) before provision for credit losses 161 213 (15 ) 359 Provision for credit losses 60 7 10 77 Income (loss) before income tax expense (benefit) 101 206 (25 ) 282 Income tax expense (benefit) 35 71 (14 ) 92 Net income (loss) $66 $135 ($11 ) $190 Total average assets $52,489 $42,617 $40,415 $135,521 As of and for the Six Months Ended June 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,183 $614 $30 $1,827 Noninterest income 427 221 37 685 Total revenue 1,610 835 67 2,512 Noninterest expense 1,248 373 17 1,638 Profit before provision for credit losses 362 462 50 874 Provision for credit losses 112 8 61 181 Income (loss) before income tax expense (benefit) 250 454 (11 ) 693 Income tax expense (benefit) 89 157 (19 ) 227 Net income $161 $297 $8 $466 Total average assets $55,388 $46,346 $38,745 $140,479 As of and for the Six Months Ended June 30, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,077 $562 $37 $1,676 Noninterest income 449 208 50 707 Total revenue 1,526 770 87 2,383 Noninterest expense 1,209 354 88 1,651 Profit (loss) before provision for credit losses 317 416 (1 ) 732 Provision for credit losses 123 (14 ) 26 135 Income (loss) before income tax expense (benefit) 194 430 (27 ) 597 Income tax expense (benefit) 67 148 (17 ) 198 Net income (loss) $127 $282 ($10 ) $399 Total average assets $52,048 $42,114 $40,267 $134,429 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended June 30, Six Months Ended June 30, (dollars in millions, except share and per-share data) 2016 2015 2016 2015 Numerator (basic and diluted): Net income $243 $190 $466 $399 Less: Preferred stock dividends — — 7 — Net income available to common stockholders $243 $190 $459 $399 Denominator: Weighted-average common shares outstanding - basic 528,968,330 537,729,248 528,519,489 541,986,653 Dilutive common shares: share-based awards 1,396,873 2,180,118 1,877,382 2,817,615 Weighted-average common shares outstanding - diluted 530,365,203 539,909,366 530,396,871 544,804,268 Earnings per common share: Basic $0.46 $0.35 $0.87 $0.74 Diluted 0.46 0.35 0.87 0.73 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2016 2015 2016 2015 Deposit insurance $29 $26 $55 $60 Promotional expense 25 29 49 51 Other 74 84 139 161 Other operating expense $128 $139 $243 $272 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Impaired debt securities sold | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Pretax non-credit related losses were deferred in OCI | 34,000,000 | 29,000,000 | |||||||
Available-for-sale Securities | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Cumulative credit losses recognized in earnings | 73,000,000 | 62,000,000 | 73,000,000 | 62,000,000 | $ 73,000,000 | $ 66,000,000 | $ 66,000,000 | $ 62,000,000 | $ 62,000,000 |
Credit impairments recognized in earnings on securities that have been previously impaired | 7,000,000 | 2,000,000 | 8,000,000 | 3,000,000 | 5,000,000 | ||||
Reductions due to increases in cash flow expectations on impaired securities | 0 | 2,000,000 | 1,000,000 | 3,000,000 | |||||
Held-to-maturity Securities | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Cumulative credit losses recognized in earnings | 0 | 0 | 0 | 0 | $ 0 | ||||
Mortgage-backed securities | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Securitizations of mortgage loans | $ 5,000,000 | $ 0 | $ 5,000,000 | $ 0 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Securities Available-for-sale, Amortized Cost | $ 18,118 | $ 17,831 | |
Securities Available-for-sale, Gross Unrealized Gains | 403 | 157 | |
Securities Available-for-sale, Gross Unrealized Losses | (42) | (104) | |
Securities Available-for-sale, Fair Value | [1] | 18,479 | 17,884 |
Securities Held-to-maturity, Amortized Cost | [1] | 4,973 | 5,258 |
Securities Held-to-maturity, Gross Unrealized Gain | 163 | 50 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | (11) | |
Securities held-to-maturity, Fair Value | 5,136 | 5,297 | |
Money market mutual fund, Amortized Cost | 68 | 65 | |
Money Market Mutual Fund, Gross Unrealized Gain | 0 | 0 | |
Money Market Mutual Fund, Gross Unrealized Loss | 0 | 0 | |
Money market mutual fund, Fair Value | 68 | 65 | |
Total other investment securities, at fair value, Amortized Cost | 73 | 70 | |
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 | |
Total other investment securities, at fair value, Fair Value | 73 | 70 | |
Total other investment securities, at cost | 873 | 863 | |
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 | 873 | 863 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 15 | 16 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 15 | 16 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 9 | 9 | |
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 | 9 | |
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 | 17,588 | 17,234 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 401 | 153 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (8) | (67) | |
Debt Securities Available-for-sale, Fair Value | 17,981 | 17,320 | |
Securities Held-to-maturity, Amortized Cost | 3,912 | 4,105 | |
Securities Held-to-maturity, Gross Unrealized Gain | 119 | 27 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | (11) | |
Securities held-to-maturity, Fair Value | 4,031 | 4,121 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 489 | 555 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 2 | 4 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (34) | (37) | |
Debt Securities Available-for-sale, Fair Value | 457 | 522 | |
Securities Held-to-maturity, Amortized Cost | 1,061 | 1,153 | |
Securities Held-to-maturity, Gross Unrealized Gain | 44 | 23 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Securities held-to-maturity, Fair Value | 1,105 | 1,176 | |
Total mortgage-backed securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 18,077 | 17,789 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 403 | 157 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (42) | (104) | |
Debt Securities Available-for-sale, Fair Value | 18,438 | 17,842 | |
Total debt securities available for sale | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 18,101 | 17,814 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 403 | 157 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (42) | (104) | |
Debt Securities Available-for-sale, Fair Value | 18,462 | 17,867 | |
Marketable equity securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 5 | 5 | |
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 | 5 | 5 | |
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 | 17 | |
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 | 17 | 17 | |
Other investments | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Other Investments, Amortized Cost | 5 | 5 | |
Other Investments, Gross Unrealized Gain | 0 | 0 | |
Other Investments, Gross Unrealized Loss | 0 | 0 | |
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 | 463 | 468 | |
Federal Reserve Bank stock, Gross Unrealized Gains | 0 | 0 | |
Federal Reserve Bank stock, Gross Unrealized Losses | 0 | 0 | |
Federal Reserve Bank stock, Fair Value | 463 | 468 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 410 | 395 | |
Federal Home Loan Bank stock, Gross Unrealized Gain | 0 | 0 | |
Federal Home Loan Bank stock, Gross Unrealized Losses | 0 | 0 | |
Federal Home Loan Bank stock, Fair Value | $ 410 | $ 395 | |
[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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Total other-than-temporary impairment losses | $ (1) | $ (1) | $ (42) | $ (32) |
Portions of loss recognized in other comprehensive income (before taxes) | (6) | (1) | 34 | 29 |
Net securities impairment losses recognized in earnings | $ (7) | $ (2) | $ (8) | $ (3) |
SECURITIES - Schedule of Inve51
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Jun. 30, 2016USD ($)Securities | Dec. 31, 2015USD ($)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 | 11 | 166 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 114 | $ 7,456 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ 0 | $ (51) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 53 | 56 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 1,064 | $ 1,180 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (42) | $ (64) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 64 | 222 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 1,178 | $ 8,636 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (42) | $ (115) |
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 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 9 | |
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 | $ 9 | |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ 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 | 7 | 162 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 95 | $ 7,423 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ 0 | $ (51) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 33 | 36 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 734 | $ 819 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (8) | $ (27) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 40 | 198 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 829 | $ 8,242 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (8) | $ (78) |
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 | 4 | 2 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 19 | $ 9 |
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 | 20 | 20 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 330 | $ 361 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (34) | $ (37) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 24 | 22 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 349 | $ 370 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (34) | $ (37) |
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 | 11 | 164 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 114 | $ 7,432 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Loss | $ 0 | $ (51) |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Issues | Securities | 53 | 56 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 1,064 | $ 1,180 |
Securities Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Gross Unrealized Loss | $ (42) | $ (64) |
Securities Available-for-sale, Continuous Unrealized Loss Position, Number of Issues | Securities | 64 | 220 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Fair Value | $ 1,178 | $ 8,612 |
Securities Available-for-sale, Continuous Unrealized Loss Position, Gross Unrealized Loss | $ (42) | $ (115) |
SECURITIES - Schedule of Cumula
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Cumulative balance at beginning of period | $ 66 | $ 62 | $ 66 | $ 62 | $ 62 |
Credit impairments recognized in earnings on securities that have been previously impaired | 7 | 2 | 8 | 3 | 5 |
Reductions due to increases in cash flow expectations on impaired securities | 0 | (2) | (1) | (3) | |
Cumulative balance at end of period | $ 73 | $ 62 | $ 73 | $ 62 | $ 73 |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Jun. 30, 2016USD ($) |
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 | $ 30 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 86 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,670 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 16,315 |
Amortized Cost, Debt securities available for sale, Total | 18,101 |
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 | 4,973 |
Amortized Cost, Debt securities held to maturity, Total | 4,973 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 30 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 86 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,670 |
Total amortized cost of debt securities, Maturity After 10 Years | 21,288 |
Total amortized cost of debt securities, Total | 23,074 |
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 | 30 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 88 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,713 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,631 |
Fair Value, Debt securities available for sale, Total | 18,462 |
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 | 5,136 |
Fair Value, Debt securities held to maturity, Total | 5,136 |
Total fair value of debt securities, Maturity of 1 Year or Less | 30 |
Total fair value of debt securities, Maturity of 1-5 Years | 88 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,713 |
Total fair value of debt securities, Maturity After 10 Years | 21,767 |
Total fair value of debt securities, Total | 23,598 |
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 | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 15 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 15 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 15 |
State and political subdivisions | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 9 |
Amortized Cost, Debt securities available for sale, Total | 9 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 9 |
Fair Value, Debt securities available for sale, Total | 9 |
Federal agencies and U.S. government sponsored entities | |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 15 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 36 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,668 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 15,869 |
Amortized Cost, Debt securities available for sale, Total | 17,588 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,912 |
Amortized Cost, Debt securities held to maturity, Total | 3,912 |
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 | 38 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,710 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 16,218 |
Fair Value, Debt securities available for sale, Total | 17,981 |
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 | 4,031 |
Fair Value, Debt securities held to maturity, Total | 4,031 |
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 | 50 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 437 |
Amortized Cost, Debt securities available for sale, Total | 489 |
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 | 1,061 |
Amortized Cost, Debt securities held to maturity, Total | 1,061 |
Available-for-sale Securities and Held-to-maturity Securities, Debt Maturities, Fair Value [Abstract] | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 50 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 3 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 404 |
Fair Value, Debt securities available for sale, Total | 457 |
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 | 1,105 |
Fair Value, Debt securities held to maturity, Total | $ 1,105 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Income, Securities, Operating, by Taxable Status [Abstract] | ||||
Taxable | $ 141 | $ 155 | $ 286 | $ 314 |
Non-taxable | 0 | 0 | 0 | 0 |
Total interest income from investment securities | 141 | 155 | 286 | 314 |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | 4 | 10 | 13 | 22 |
Losses on sale of debt securities | 0 | (1) | 0 | (5) |
Debt securities gains, net | 4 | 9 | 13 | 17 |
Equity securities gains | $ 0 | $ 1 | $ 0 | $ 3 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 705 | $ 805 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 1,070 | 1,163 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 4,236 | 3,579 |
Pledged against repurchase agreements, Fair Value | 720 | 808 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 1,114 | 1,186 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 4,341 | $ 3,610 |
SECURITIES - Schedule of Balanc
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities purchased under agreements to resell, gross | $ 0 | $ 500 |
Securities purchased under agreements to resell, offset | 0 | (500) |
Securities purchased under agreements to resell | 0 | 0 |
Securities sold under agreements to repurchase, gross | 0 | (500) |
Securities sold under agreements to repurchase, offset | 0 | 500 |
Securities sold under agreements to repurchase, net | $ 0 | $ 0 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | $ 478 | $ 478 | $ 325 | ||
Other loans held for sale | 372 | 372 | 40 | ||
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral for FHLB borrowed funds | 23,200 | 23,200 | 23,200 | ||
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 16,600 | 16,600 | 15,900 | ||
Automobile | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 200 | $ 416 | 334 | $ 809 | |
Student loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 348 | 202 | 717 | 463 | |
Residential portfolio segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 63 | 387 | 183 | 636 | |
Mortgage loans sold | 108 | 281 | 273 | ||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans sold during the period | 45 | $ 114 | 118 | $ 225 | |
Commercial loan syndication | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 50 | 50 | 40 | ||
Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 478 | 478 | 325 | ||
Other loans held for sale | 0 | 0 | 0 | ||
Residential loans held for sale | Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 424 | 424 | 268 | ||
Commercial real estate loans held for sale | Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 54 | 54 | $ 57 | ||
TDR Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 322 | 322 | |||
TDR Loans | Home equity loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 60 | 60 | |||
TDR Loans | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | $ 262 | $ 262 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | $ 49,557 | $ 46,214 | |
Loans and leases retail | 53,994 | 52,828 | |
Loans and leases | 103,551 | 99,042 | |
Total loans receivable held for sale | 850 | 365 | |
Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans serviced for others by the Company's subsidiaries | 17,200 | 17,600 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 35,927 | 33,264 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 9,825 | 8,971 | |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial loans and leases | 3,805 | 3,979 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 13,855 | 13,318 | |
Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 2,177 | 2,557 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 14,418 | 14,674 | |
Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 860 | 986 |
Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | [1] | 273 | 389 |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 14,075 | 13,828 | |
Student | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 5,516 | 4,359 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 1,613 | 1,634 | |
Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases retail | 1,207 | 1,083 | |
Total Loans and Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [2],[3] | $ 103,551 | $ 99,042 |
[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 $850 million and $365 million as of June 30, 2016 and December 31, 2015, respectively. | ||
[3] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above and amounted to $17.2 billion and $17.6 billion at June 30, 2016 and December 31, 2015, respectively. |
ALLOWANCE FOR CREDIT LOSSES, 59
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $ 211 | $ 257 |
Larger balance commercial loans minimum balance (greater than) | 3 | 3 |
Other loans held for sale | 372 | 40 |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 30 | $ 15 |
High loan to value criteria (exceeds) | 90.00% | 90.00% |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 126 | $ 155 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | 802 | $ 1,200 |
TDR Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Other loans held for sale | 322 | |
TDR Loans | Residential mortgages | ||
Financing Receivable, Modifications [Line Items] | ||
Other loans held for sale | 262 | |
TDR Loans | Home equity loans | ||
Financing Receivable, Modifications [Line Items] | ||
Other loans held for sale | $ 60 |
ALLOWANCE FOR CREDIT LOSSES, 60
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 1,216 | |||
Provision charged to income | 181 | $ 135 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 1,246 | 1,246 | ||
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 | 1,224 | $ 1,202 | 1,216 | 1,195 |
Charge-offs | (113) | (121) | (239) | (236) |
Recoveries | 48 | 43 | 91 | 104 |
Net charge-offs | (65) | (78) | (148) | (132) |
Sales/Other | 0 | (2) | ||
Provision charged to income | 87 | 77 | 178 | 140 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,246 | 1,201 | 1,246 | 1,201 |
Allowance for loan and lease losses | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 633 | 578 | 596 | 544 |
Charge-offs | (7) | (15) | (20) | (21) |
Recoveries | 5 | 8 | 9 | 36 |
Net charge-offs | (2) | (7) | (11) | 15 |
Sales/Other | 0 | 0 | ||
Provision charged to income | 45 | (6) | 91 | 6 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 676 | 565 | 676 | 565 |
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 | 591 | 624 | 620 | 651 |
Charge-offs | (106) | (106) | (219) | (215) |
Recoveries | 43 | 35 | 82 | 68 |
Net charge-offs | (63) | (71) | (137) | (147) |
Sales/Other | 0 | (2) | ||
Provision charged to income | 42 | 83 | 87 | 134 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 570 | 636 | 570 | 636 |
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 | 58 | 56 | 58 | 61 |
Credit for unfunded lending commitments | 3 | 0 | 3 | (5) |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 61 | 56 | 61 | 56 |
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 | 58 | 56 | 58 | 61 |
Credit for unfunded lending commitments | 3 | 0 | 3 | (5) |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 61 | 56 | 61 | 56 |
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 | 0 |
Credit for unfunded lending commitments | 0 | 0 | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 0 | 0 | 0 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,307 | 1,257 | 1,307 | 1,257 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 737 | 621 | 737 | 621 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | Retail | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 570 | $ 636 | $ 570 | $ 636 |
ALLOWANCE FOR CREDIT LOSSES, 61
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - Loans and Leases - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,210 | $ 1,383 |
Formula-based evaluation | 102,341 | 97,659 |
Total | 103,551 | 99,042 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 408 | 218 |
Formula-based evaluation | 49,149 | 45,996 |
Total | 49,557 | 46,214 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 802 | 1,165 |
Formula-based evaluation | 53,192 | 51,663 |
Total | $ 53,994 | $ 52,828 |
ALLOWANCE FOR CREDIT LOSSES, 62
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 131 | $ 137 |
Formula-based evaluation | 1,176 | 1,137 |
Allowance for credit losses | 1,307 | 1,274 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 52 | 36 |
Formula-based evaluation | 685 | 618 |
Allowance for credit losses | 737 | 654 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 79 | 101 |
Formula-based evaluation | 491 | 519 |
Allowance for credit losses | $ 570 | $ 620 |
ALLOWANCE FOR CREDIT LOSSES, 63
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 103,551 | $ 99,042 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 49,557 | 46,214 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,927 | 33,264 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,825 | 8,971 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,805 | 3,979 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 46,815 | 43,606 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 33,931 | 31,276 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,281 | 8,450 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,603 | 3,880 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,253 | 1,238 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 855 | 911 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 318 | 272 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 80 | 55 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,293 | 1,217 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,015 | 1,002 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 156 | 171 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 122 | 44 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 196 | 153 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 126 | 75 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 70 | 78 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 64
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 | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 1,357 | $ 1,356 | |
Total | 103,551 | 99,042 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 13,571 | 12,905 | |
Past Due | 195 | 316 | |
Total | 13,855 | 13,318 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,937 | 2,245 | |
Past Due | 107 | 148 | |
Total | 2,177 | 2,557 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 13,755 | 13,982 | |
Past Due | 275 | 285 | |
Total | 14,418 | 14,674 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 781 | 886 |
Past Due | [1] | 31 | 40 |
Total | [1] | 860 | 986 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | [1] | 184 | 296 |
Past Due | [1] | 52 | 45 |
Total | [1] | 273 | 389 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 12,959 | 12,670 | |
Past Due | 190 | 194 | |
Total | 14,075 | 13,828 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 5,340 | 4,175 | |
Past Due | 71 | 71 | |
Total | 5,516 | 4,359 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,539 | 1,554 | |
Past Due | 32 | 36 | |
Total | 1,613 | 1,634 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,149 | 1,013 | |
Past Due | 14 | 17 | |
Total | 1,207 | 1,083 | |
Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 51,215 | 49,726 | |
Total | 53,994 | 52,828 | |
Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 89 | 97 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 133 | 164 | |
Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 388 | 407 | |
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] | 48 | 60 |
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] | 37 | 48 |
Financing Receivables, 1 to 29 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 926 | 964 | |
Financing Receivables, 1 to 29 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 105 | 113 | |
Financing Receivables, 1 to 29 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 42 | 44 | |
Financing Receivables, 1 to 29 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 53 | |
Financing Receivables, 1 to 29 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,812 | 1,950 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 293 | 383 | |
Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 40 | 54 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 20 | 32 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 60 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 10 | 14 |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 12 | 10 |
Financing Receivables, 30 to 59 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 122 | 127 | |
Financing Receivables, 30 to 59 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 18 | 19 | |
Financing Receivables, 30 to 59 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10 | 11 | |
Financing Receivables, 30 to 59 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6 | 8 | |
Financing Receivables, 30 to 59 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 282 | 335 | |
Financing Receivables 60 To 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 133 | 124 | |
Financing Receivables 60 To 89 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10 | 16 | |
Financing Receivables 60 To 89 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8 | 12 | |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 24 | 20 | |
Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 4 | 6 |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 5 | 6 |
Financing Receivables 60 To 89 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 31 | 32 | |
Financing Receivables 60 To 89 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11 | 11 | |
Financing Receivables 60 To 89 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8 | 9 | |
Financing Receivables 60 To 89 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4 | 4 | |
Financing Receivables 60 To 89 Days Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 105 | 116 | |
Financing Receivables 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 931 | 849 | |
Financing Receivables 90 Days or More Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 145 | 246 | |
Financing Receivables 90 Days or More Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 79 | 104 | |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 207 | 205 | |
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] | 17 | 20 |
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] | 35 | 29 |
Financing Receivables 90 Days or More Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 37 | 35 | |
Financing Receivables 90 Days or More Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 42 | 41 | |
Financing Receivables 90 Days or More Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 14 | 16 | |
Financing Receivables 90 Days or More Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4 | 5 | |
Financing Receivables 90 Days or More Past Due | Total retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 580 | $ 701 | |
[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, 65
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | $ 1,044 | [1] | $ 1,051 | |
Nonperforming loans including 90 days past due | [1] | 1,060 | ||
Loans accruing and 90 days or more past due | 26 | 9 | ||
Other loans held for sale | 372 | 40 | ||
GNMA | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans sold with right to repurchase | 34 | |||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 347 | ||
Nonperforming loans including 90 days past due | [1] | 148 | ||
Loans accruing and 90 days or more past due | 4 | 1 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 277 | ||
Nonperforming loans including 90 days past due | [1] | 71 | ||
Loans accruing and 90 days or more past due | 0 | 1 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 70 | ||
Nonperforming loans including 90 days past due | [1] | 77 | ||
Loans accruing and 90 days or more past due | 4 | 0 | ||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 0 | ||
Nonperforming loans including 90 days past due | [1] | 0 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 697 | ||
Nonperforming loans including 90 days past due | [1] | 912 | ||
Loans accruing and 90 days or more past due | 22 | 8 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1],[2],[3],[4] | 174 | ||
Nonperforming loans including 90 days past due | [1],[2],[3],[4] | 331 | ||
Loans accruing and 90 days or more past due | [2],[3],[4] | 15 | 0 | |
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1],[4] | 104 | ||
Nonperforming loans including 90 days past due | [1],[4] | 135 | ||
Loans accruing and 90 days or more past due | [4] | 0 | 0 | |
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 251 | ||
Nonperforming loans including 90 days past due | [1] | 272 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1],[5] | 33 | ||
Nonperforming loans including 90 days past due | [1],[5] | 38 | ||
Loans accruing and 90 days or more past due | [5] | 0 | 0 | |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1],[5] | 38 | ||
Nonperforming loans including 90 days past due | [1],[5] | 32 | ||
Loans accruing and 90 days or more past due | [5] | 0 | 0 | |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 43 | ||
Nonperforming loans including 90 days past due | [1] | 42 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 37 | ||
Nonperforming loans including 90 days past due | [1] | 41 | ||
Loans accruing and 90 days or more past due | 6 | 6 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 14 | ||
Nonperforming loans including 90 days past due | [1] | 16 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 3 | ||
Nonperforming loans including 90 days past due | [1] | 5 | ||
Loans accruing and 90 days or more past due | 1 | $ 2 | ||
TDR Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | 322 | |||
TDR Loans | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | 262 | |||
TDR Loans | Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | 60 | |||
Total Loans and Leases | TDR Loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | 71 | |||
Total Loans and Leases | TDR Loans | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | 54 | |||
Total Loans and Leases | TDR Loans | Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Other loans held for sale | $ 17 | |||
[1] | Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million. | |||
[2] | Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of June 30, 2016, $15 million of these loans were accruing and 90 days or more past due. | |||
[3] | Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of June 30, 2016 these loans totaled $34 million. These loans are consolidated on the Company’s Consolidated Balance Sheets. | |||
[4] | Nonperforming balances at June 30, 2016 excluded $71 million of troubled debt restructured loans held for sale, including $54 million of residential mortgages and $17 million of home equity loans. | |||
[5] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE FOR CREDIT LOSSES, 66
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Other nonperforming assets, net of valuation allowance | $ 48 | $ 46 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Other nonperforming assets, net of valuation allowance | 1 | 1 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Other nonperforming assets, net of valuation allowance | $ 47 | $ 45 |
ALLOWANCE FOR CREDIT LOSSES, 67
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 1.01% | 1.07% |
Nonperforming assets as a percentage of total assets | [1] | 0.75% | 0.80% |
Loans accruing and 90 days or more past due | $ 26 | $ 9 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 0.34% | 0.15% |
Nonperforming assets as a percentage of total assets | [1] | 0.24% | 0.11% |
Loans accruing and 90 days or more past due | $ 4 | $ 1 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 0.67% | 0.92% |
Nonperforming assets as a percentage of total assets | [1] | 0.51% | 0.69% |
Loans accruing and 90 days or more past due | $ 22 | $ 8 | |
[1] | December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. |
ALLOWANCE FOR CREDIT LOSSES, 68
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - Loans and Leases - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 1,357 | $ 1,356 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 390 | 204 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 308 | 84 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 81 | 110 | |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1 | 10 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 967 | 1,152 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 195 | 316 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 107 | 148 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 275 | 285 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 31 | 40 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 52 | 45 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 190 | 194 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 71 | 71 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 32 | 36 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 14 | 17 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 293 | 383 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11 | 48 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8 | 9 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2 | 30 | |
Financing Receivables, 30 to 59 Days Past Due | Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1 | 9 | |
Financing Receivables, 30 to 59 Days Past Due | Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 282 | 335 | |
Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 40 | 54 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 20 | 32 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 60 | |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 10 | 14 |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 12 | 10 |
Financing Receivables, 30 to 59 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 122 | 127 | |
Financing Receivables, 30 to 59 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 18 | 19 | |
Financing Receivables, 30 to 59 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10 | 11 | |
Financing Receivables, 30 to 59 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6 | 8 | |
Financing Receivables 60 To 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 133 | 124 | |
Financing Receivables 60 To 89 Days Past Due | Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 28 | 8 | |
Financing Receivables 60 To 89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 23 | 4 | |
Financing Receivables 60 To 89 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5 | 3 | |
Financing Receivables 60 To 89 Days Past Due | Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 1 | |
Financing Receivables 60 To 89 Days Past Due | Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 105 | 116 | |
Financing Receivables 60 To 89 Days Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10 | 16 | |
Financing Receivables 60 To 89 Days Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8 | 12 | |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 24 | 20 | |
Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 4 | 6 |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | [1] | 5 | 6 |
Financing Receivables 60 To 89 Days Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 31 | 32 | |
Financing Receivables 60 To 89 Days Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11 | 11 | |
Financing Receivables 60 To 89 Days Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8 | 9 | |
Financing Receivables 60 To 89 Days Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4 | 4 | |
Financing Receivables 90 Days or More Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 931 | 849 | |
Financing Receivables 90 Days or More Past Due | Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 351 | 148 | |
Financing Receivables 90 Days or More Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 277 | 71 | |
Financing Receivables 90 Days or More Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 74 | 77 | |
Financing Receivables 90 Days or More Past Due | Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Financing Receivables 90 Days or More Past Due | Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 580 | 701 | |
Financing Receivables 90 Days or More Past Due | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 145 | 246 | |
Financing Receivables 90 Days or More Past Due | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 79 | 104 | |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 207 | 205 | |
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] | 17 | 20 |
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] | 35 | 29 |
Financing Receivables 90 Days or More Past Due | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 37 | 35 | |
Financing Receivables 90 Days or More Past Due | Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 42 | 41 | |
Financing Receivables 90 Days or More Past Due | Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 14 | 16 | |
Financing Receivables 90 Days or More Past Due | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 4 | $ 5 | |
[1] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE FOR CREDIT LOSSES, 69
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | $ 618 | $ 641 | |
Allowance on Impaired Loans | 131 | 137 | |
Impaired Loans Without a Related Allowance | 592 | 742 | |
Unpaid Contractual Balance | 1,401 | 1,671 | |
Total Recorded Investment in Impaired Loans | 1,210 | 1,383 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 258 | 148 | |
Allowance on Impaired Loans | 52 | 36 | |
Impaired Loans Without a Related Allowance | 150 | 70 | |
Unpaid Contractual Balance | 447 | 214 | |
Total Recorded Investment in Impaired Loans | 408 | 218 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 216 | 92 | |
Allowance on Impaired Loans | 46 | 23 | |
Impaired Loans Without a Related Allowance | 139 | 58 | |
Unpaid Contractual Balance | 391 | 144 | |
Total Recorded Investment in Impaired Loans | 355 | 150 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 42 | 56 | |
Allowance on Impaired Loans | 6 | 13 | |
Impaired Loans Without a Related Allowance | 11 | 12 | |
Unpaid Contractual Balance | 56 | 70 | |
Total Recorded Investment in Impaired Loans | 53 | 68 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 360 | 493 | |
Allowance on Impaired Loans | 79 | 101 | |
Impaired Loans Without a Related Allowance | 442 | 672 | |
Unpaid Contractual Balance | 954 | 1,457 | |
Total Recorded Investment in Impaired Loans | 802 | 1,165 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 34 | 121 | |
Allowance on Impaired Loans | 4 | 16 | |
Impaired Loans Without a Related Allowance | 130 | 320 | |
Unpaid Contractual Balance | 214 | 608 | |
Total Recorded Investment in Impaired Loans | 164 | 441 | |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 51 | 85 | |
Allowance on Impaired Loans | 5 | 11 | |
Impaired Loans Without a Related Allowance | 107 | 139 | |
Unpaid Contractual Balance | 198 | 283 | |
Total Recorded Investment in Impaired Loans | 158 | 224 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 26 | 27 | |
Allowance on Impaired Loans | 3 | 2 | |
Impaired Loans Without a Related Allowance | 160 | 167 | |
Unpaid Contractual Balance | 223 | 234 | |
Total Recorded Investment in Impaired Loans | 186 | 194 | |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | [1] | 45 | 50 |
Allowance on Impaired Loans | [1] | 7 | 8 |
Impaired Loans Without a Related Allowance | [1] | 21 | 24 |
Unpaid Contractual Balance | [1] | 79 | 88 |
Total Recorded Investment in Impaired Loans | [1] | 66 | 74 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | [1] | 3 | 3 |
Allowance on Impaired Loans | [1] | 0 | 1 |
Impaired Loans Without a Related Allowance | [1] | 7 | 7 |
Unpaid Contractual Balance | [1] | 14 | 14 |
Total Recorded Investment in Impaired Loans | [1] | 10 | 10 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 4 | 3 | |
Allowance on Impaired Loans | 0 | 0 | |
Impaired Loans Without a Related Allowance | 14 | 11 | |
Unpaid Contractual Balance | 23 | 19 | |
Total Recorded Investment in Impaired Loans | 18 | 14 | |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 161 | 163 | |
Allowance on Impaired Loans | 46 | 48 | |
Impaired Loans Without a Related Allowance | 1 | 2 | |
Unpaid Contractual Balance | 162 | 165 | |
Total Recorded Investment in Impaired Loans | 162 | 165 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 26 | 28 | |
Allowance on Impaired Loans | 11 | 11 | |
Impaired Loans Without a Related Allowance | 0 | 0 | |
Unpaid Contractual Balance | 27 | 28 | |
Total Recorded Investment in Impaired Loans | 26 | 28 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Impaired Loans With a Related Allowance | 10 | 13 | |
Allowance on Impaired Loans | 3 | 4 | |
Impaired Loans Without a Related Allowance | 2 | 2 | |
Unpaid Contractual Balance | 14 | 18 | |
Total Recorded Investment in Impaired Loans | $ 12 | $ 15 | |
[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, 70
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | $ 10 | $ 12 | $ 18 | $ 24 | |
Average Recorded Investment | 1,175 | 1,357 | 1,090 | 1,350 | |
Commercial Banking | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 2 | 1 | 3 | 2 | |
Average Recorded Investment | 382 | 180 | 309 | 187 | |
Commercial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 2 | 1 | 3 | 1 | |
Average Recorded Investment | 324 | 129 | 248 | 133 | |
Commercial real estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 0 | 0 | 1 | |
Average Recorded Investment | 58 | 51 | 61 | 54 | |
Retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 8 | 11 | 15 | 22 | |
Average Recorded Investment | 793 | 1,177 | 781 | 1,163 | |
Residential mortgages | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 4 | 2 | 8 | |
Average Recorded Investment | 160 | 436 | 156 | 433 | |
Home equity loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 3 | 3 | 5 | |
Average Recorded Investment | 158 | 272 | 154 | 266 | |
Home equity lines of credit | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 2 | 1 | 3 | 2 | |
Average Recorded Investment | 184 | 151 | 182 | 150 | |
Home equity loans serviced by others | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | [1] | 1 | 1 | 2 | 2 |
Average Recorded Investment | [1] | 66 | 84 | 67 | 84 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 |
Average Recorded Investment | [1] | 10 | 10 | 9 | 10 |
Automobile | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 15 | 12 | 14 | 11 | |
Student | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 2 | 2 | 4 | 4 | |
Average Recorded Investment | 161 | 164 | 160 | 162 | |
Credit cards | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 1 | 0 | 1 | 1 | |
Average Recorded Investment | 26 | 30 | 26 | 29 | |
Other retail | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Average Recorded Investment | $ 13 | $ 18 | $ 13 | $ 18 | |
[1] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE FOR CREDIT LOSSES, 71
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2015USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | $ 1 | $ 2 | $ 1 | $ 2 | |
Charge-offs Resulting from Modification | 1 | 1 | 1 | 4 | |
Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | (1) | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | (1) | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 2 | 2 | 3 | |
Charge-offs Resulting from Modification | 1 | 1 | 1 | 4 | |
Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | (1) | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | (1) | 0 | (1) | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 1 | 0 | 2 | |
Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | [1] | 0 | 0 | 0 | 0 |
Charge-offs Resulting from Modification | [1] | 0 | 0 | 0 | 1 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | [1] | 0 | 0 | 0 | 0 |
Charge-offs Resulting from Modification | [1] | 0 | 0 | 0 | 0 |
Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 1 | 0 | 1 | 1 | |
Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 2 | 3 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 1 | 1 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 615 | 706 | 1,216 | 1,409 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 9 | $ 15 | $ 23 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 9 | $ 15 | $ 23 |
Interest Rate Reduction | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 3 | 7 | 8 | 15 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 3 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 3 |
Interest Rate Reduction | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 3 | 7 | 8 | 14 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 3 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 3 |
Interest Rate Reduction | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 612 | 699 | 1,208 | 1,394 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 8 | $ 14 | $ 20 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 8 | $ 14 | $ 20 |
Interest Rate Reduction | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 3 | 20 | 25 | 53 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 3 | $ 4 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 3 | $ 4 | $ 9 |
Interest Rate Reduction | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 15 | 26 | 29 | 47 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 1 | $ 2 | $ 2 |
Interest Rate Reduction | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 6 | 0 | 13 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 1 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 1 | $ 0 |
Interest Rate Reduction | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 3 | 5 | 6 | 22 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1],[2] | $ 0 | $ 0 | $ 0 | $ 1 |
Interest Rate Reduction | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[2] | 2 | 2 | 0 | |
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] | 30 | 18 | 51 | 38 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 1 | $ 1 |
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] | 552 | 630 | 1,081 | 1,234 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 3 | $ 3 | $ 6 | $ 7 |
Post-Modification Outstanding Recorded Investment | [2] | $ 3 | $ 3 | $ 6 | $ 7 |
Interest Rate Reduction | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 1 | 1 | 0 | |
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] | 73 | 95 | 146 | 174 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 10 | $ 15 | $ 19 | $ 32 |
Post-Modification Outstanding Recorded Investment | [3] | $ 10 | $ 15 | $ 19 | $ 32 |
Maturity Extension | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 28 | 36 | 54 | 64 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 4 | $ 2 | $ 8 | $ 12 |
Post-Modification Outstanding Recorded Investment | [3] | $ 4 | $ 2 | $ 8 | $ 12 |
Maturity Extension | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 28 | 36 | 54 | 64 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 4 | $ 2 | $ 8 | $ 12 |
Post-Modification Outstanding Recorded Investment | [3] | $ 4 | $ 2 | $ 8 | $ 12 |
Maturity Extension | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 45 | 59 | 92 | 110 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 13 | $ 11 | $ 20 |
Post-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 13 | $ 11 | $ 20 |
Maturity Extension | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 10 | 9 | 16 | 19 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 2 | $ 3 | $ 4 |
Post-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 2 | $ 3 | $ 4 |
Maturity Extension | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 21 | 49 | 37 | 86 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 11 | $ 4 | $ 16 |
Post-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 11 | $ 4 | $ 16 |
Maturity Extension | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 8 | 0 | 27 | 3 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 0 | $ 3 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 0 | $ 3 | $ 0 |
Maturity Extension | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[3] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[3] | 3 | 4 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1],[3] | $ 1 | $ 1 | $ 0 | |
Post-Modification Outstanding Recorded Investment | [1],[3] | $ 1 | $ 1 | $ 0 | |
Maturity Extension | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 3 | 1 | 8 | 2 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | |
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 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 0 | |
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] | 742 | 805 | 1,336 | 1,945 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 48 | $ 28 | $ 93 | $ 73 |
Post-Modification Outstanding Recorded Investment | [4] | $ 47 | $ 27 | $ 91 | $ 69 |
Other | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 4 | 3 | 9 | 5 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 20 | $ 0 | $ 41 | $ 6 |
Post-Modification Outstanding Recorded Investment | [4] | $ 21 | $ 0 | $ 41 | $ 6 |
Other | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 4 | 3 | 9 | 4 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 20 | $ 0 | $ 41 | $ 2 |
Post-Modification Outstanding Recorded Investment | [4] | $ 21 | $ 0 | $ 41 | $ 2 |
Other | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 0 | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 4 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 4 |
Other | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 738 | 802 | 1,327 | 1,940 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 28 | $ 28 | $ 52 | $ 67 |
Post-Modification Outstanding Recorded Investment | [4] | $ 26 | $ 27 | $ 50 | $ 63 |
Other | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 67 | 42 | 131 | 106 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 7 | $ 4 | $ 15 | $ 10 |
Post-Modification Outstanding Recorded Investment | [4] | $ 7 | $ 4 | $ 15 | $ 10 |
Other | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 94 | 97 | 181 | 294 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 5 | $ 7 | $ 11 | $ 17 |
Post-Modification Outstanding Recorded Investment | [4] | $ 5 | $ 7 | $ 11 | $ 17 |
Other | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 92 | 78 | 124 | 213 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 6 | $ 5 | $ 8 | $ 14 |
Post-Modification Outstanding Recorded Investment | [4] | $ 6 | $ 5 | $ 8 | $ 12 |
Other | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[4] | 16 | 25 | 34 | 71 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 0 | $ 1 | $ 1 | $ 3 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 0 | $ 1 | $ 1 | $ 3 |
Other | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1],[4] | 5 | 15 | 13 | 22 |
Pre-Modification Outstanding Recorded Investment | [1],[4] | $ 1 | $ 1 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1],[4] | $ 0 | $ 1 | $ 0 | $ 1 |
Other | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 348 | 172 | 539 | 469 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 7 | $ 3 | $ 10 | $ 8 |
Post-Modification Outstanding Recorded Investment | [4] | $ 6 | $ 2 | $ 9 | $ 6 |
Other | Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 111 | 369 | 297 | 750 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 2 | $ 7 | $ 6 | $ 14 |
Post-Modification Outstanding Recorded Investment | [4] | $ 2 | $ 7 | $ 6 | $ 14 |
Other | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
Other | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [4] | 5 | 4 | 8 | 15 |
Pre-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [4] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. | ||||
[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, 72
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2015USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 238 | 283 | 502 | 638 | |
Balance Defaulted | $ | $ 12 | $ 11 | $ 26 | $ 26 | |
Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 9 | 8 | 12 | 14 | |
Balance Defaulted | $ | $ 3 | $ 1 | $ 3 | $ 1 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 8 | 8 | 11 | 14 | |
Balance Defaulted | $ | $ 3 | $ 1 | $ 3 | $ 1 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 1 | 0 | 1 | 0 | |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 229 | 275 | 490 | 624 | |
Balance Defaulted | $ | $ 9 | $ 10 | $ 23 | $ 25 | |
Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 35 | 34 | 89 | 83 | |
Balance Defaulted | $ | $ 4 | $ 5 | $ 12 | $ 11 | |
Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 32 | 32 | 50 | 83 | |
Balance Defaulted | $ | $ 2 | $ 2 | $ 3 | $ 6 | |
Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 20 | 32 | 45 | 72 | |
Balance Defaulted | $ | $ 1 | $ 1 | $ 4 | $ 3 | |
Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 11 | 7 | 21 | 23 |
Balance Defaulted | $ | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 6 | 6 | 11 | 7 |
Balance Defaulted | $ | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 22 | 19 | 37 | 42 | |
Balance Defaulted | $ | $ 1 | $ 0 | $ 1 | $ 1 | |
Student | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 18 | 44 | 31 | 109 | |
Balance Defaulted | $ | $ 1 | $ 1 | $ 1 | $ 2 | |
Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 85 | 100 | 206 | 202 | |
Balance Defaulted | $ | $ 0 | $ 1 | $ 1 | $ 1 | |
Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 0 | 1 | 0 | 3 | |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others. The Company now services a portion of this portfolio internally. |
ALLOWANCE FOR CREDIT LOSSES, 73
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,998 | $ 2,472 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 595 | 649 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 782 | 1,038 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 621 | 785 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
High loan-to-value | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,370 | 1,110 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,369 | 1,110 |
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 |
Interest only/negative amortization | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1 | 0 |
Low introductory rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 94 | 99 |
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 | 0 | 3 |
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 | 94 | 96 |
Low introductory rate | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4 | 14 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4 | 14 |
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 |
Multiple characteristics and other | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,466 | 3,695 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,968 | 1,773 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 782 | 1,041 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 621 | 785 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 94 | 96 |
Credit risk, loans with increased credit exposure | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1 | $ 0 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - LIHTC Investments - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Variable Interest Entity [Line Items] | ||||
Amortization method qualified affordable housing project investments, amortization | $ 16,000,000 | $ 12,000,000 | $ 31,000,000 | $ 24,000,000 |
Affordable housing tax credits and other tax benefits, amount | 14,000,000 | 12,000,000 | 29,000,000 | 23,000,000 |
Other tax expense (benefit) | (7,000,000) | (5,000,000) | (13,000,000) | (9,000,000) |
Net impairment losses recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
LIHTC Investments | ||
Variable Interest Entity [Line Items] | ||
LIHTC investment included in other assets | $ 660 | $ 598 |
LIHTC unfunded commitments included in other liabilities | 365 | 365 |
Renewable Energy | ||
Variable Interest Entity [Line Items] | ||
Renewable energy investments included in other assets | $ 117 | $ 118 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | $ 1,022 | $ 1,111 | ||
Repurchased mortgage loans | $ 2 | $ 3 | 4 | 7 |
Mortgage servicing fees | 13 | 14 | 26 | 28 |
Mortgage servicing rights valuation charge-off (recovery) | (1) | (6) | 4 | (7) |
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | 543 | 649 | 1,000 | 1,100 |
Gain on sale of residential mortgages | $ 16 | $ 11 | $ 30 | $ 32 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - Residential mortgages - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
MSRs | ||||
Balance as of beginning of period | $ 169 | $ 180 | $ 173 | $ 184 |
Amount capitalized | 5 | 7 | 10 | 13 |
Amortization | (8) | (10) | (17) | (20) |
Carrying amount before valuation allowance | 166 | 177 | 166 | 177 |
Valuation allowance for servicing assets | ||||
Balance as of beginning of period | 14 | 17 | 9 | 18 |
Valuation charge-offs (recoveries) | (1) | (6) | 4 | (7) |
Balance at end of period | 13 | 11 | 13 | 11 |
Net carrying value of MSRs | $ 153 | $ 166 | $ 153 | $ 166 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 4 years 10 months 24 days | 5 years 4 months 24 days |
Weighted average constant prepayment rate | 13.50% | 11.60% |
Weighted average discount rate | 9.70% | 9.70% |
Residential mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 165 | $ 178 |
Weighted average life (in years) | 4 years 10 months 24 days | 5 years 4 months 24 days |
Weighted average constant prepayment rate | 13.50% | 11.60% |
Weighted average discount rate | 9.70% | 9.70% |
MORTGAGE BANKING - Economic A79
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) - Residential mortgages | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Servicing Assets at Fair Value [Line Items] | ||||
Weighted average life (in years) | 5 years 10 months 24 days | 6 years 3 months 18 days | 6 years | 5 years 4 months 24 days |
Weighted average constant prepayment rate | 11.30% | 9.80% | 11.10% | 11.10% |
Weighted average discount rate | 9.70% | 9.70% | 9.70% | 9.60% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Minimum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 0.50% | 0.50% |
Maximum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse change in basis points | 1.00% | 1.00% |
Prepayment rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from a 50 basis point decrease in interest rates | $ 6 | $ 5 |
Decline in fair value from a 100 basis point decrease in interest rates | 17 | 11 |
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 | $ 5 | $ 6 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $ 3,487 | $ 3,432 |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 12,000 | 11,300 |
Federal Home Loan advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 3,500 | $ 4,100 |
Federal Reserve Bank advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 32,200 |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 3,487 | $ 3,432 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 717 | 802 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 2,770 | $ 2,630 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Federal funds purchased and securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate at period end | 0.00% | 0.15% |
Maximum amount outstanding at month-end during the period | $ 1,274 | $ 5,375 |
Average amount outstanding during the period | $ 927 | $ 3,364 |
Weighted-average interest rate during the period | 0.07% | 0.22% |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate at period end | 0.65% | 0.44% |
Maximum amount outstanding at month-end during the period | $ 4,764 | $ 7,004 |
Average amount outstanding during the period | $ 3,421 | $ 5,865 |
Weighted-average interest rate during the period | 0.60% | 0.28% |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Mar. 07, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Aug. 03, 2015 | ||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | $ 11,810 | $ 9,886 | ||||
Interest rate swaps | (1,443) | (807) | ||||
Interest rate swaps | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | (1,235) | (636) | ||||
Subordinated Debt | 4.350% fixed rate subordinated debt, due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.35% | |||||
Citizens Financial Group, Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | 2,501 | |||||
Citizens Financial Group, Inc. | Subordinated Debt | 4.150% fixed rate subordinated debt, due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [1] | $ 347 | 350 | |||
Interest rate | [1] | 4.15% | ||||
Principal balance | $ 350 | 350 | ||||
Unamortized deferred issuance costs and discount | (3) | |||||
Citizens Financial Group, Inc. | Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [2] | $ 333 | 333 | |||
Interest rate | [2] | 5.158% | ||||
Citizens Financial Group, Inc. | Subordinated Debt | 3.750% fixed rate subordinated debt, due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [2],[3] | $ 250 | $ 250 | |||
Interest rate | [2] | 3.75% | [3] | 4.153% | ||
Citizens Financial Group, Inc. | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [2],[4] | $ 218 | $ 331 | |||
Interest rate | [2],[4] | 4.023% | ||||
Principal balance | $ 208 | 333 | ||||
Extinguishment of debt, amount | $ 125 | |||||
Citizens Financial Group, Inc. | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [2],[5] | $ 355 | 331 | |||
Interest rate | [2],[5] | 4.082% | ||||
Principal balance | $ 334 | 334 | ||||
Citizens Financial Group, Inc. | Subordinated Debt | 4.350% fixed rate subordinated debt, due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [6] | $ 249 | 250 | |||
Interest rate | [6] | 4.35% | ||||
Principal balance | $ 250 | 250 | ||||
Unamortized deferred issuance costs and discount | (1) | |||||
Citizens Financial Group, Inc. | Subordinated Debt | 4.300% fixed rate subordinated debt, due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [7] | $ 749 | 750 | |||
Interest rate | [7] | 4.30% | ||||
Principal balance | $ 750 | 750 | ||||
Unamortized deferred issuance costs and discount | $ (1) | |||||
Citizens Financial Group, Inc. | Subordinated Debt | LIBOR | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [2] | 3.56% | ||||
Citizens Financial Group, Inc. | Senior Unsecured Notes | Interest rate swaps | 4.023% fixed rate subordinated debt, due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | $ 10 | (2) | ||||
Citizens Financial Group, Inc. | Senior Unsecured Notes | Interest rate swaps | 4.082% fixed rate subordinated debt, due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 21 | (3) | ||||
Banking Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | 9,309 | |||||
Banking Subsidiaries | Senior Unsecured Notes | 1.600% senior unsecured notes, due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [8],[9] | $ 753 | 749 | |||
Interest rate | [8],[9] | 1.60% | ||||
Principal balance | $ 750 | 750 | ||||
Unamortized deferred issuance costs and discount | (1) | |||||
Banking Subsidiaries | Senior Unsecured Notes | 2.300% senior unsecured notes, due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [9],[10] | $ 756 | 747 | |||
Interest rate | [9],[10] | 2.30% | ||||
Principal balance | $ 750 | 750 | ||||
Unamortized deferred issuance costs and discount | (2) | |||||
Banking Subsidiaries | Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [9],[11] | $ 767 | 752 | |||
Interest rate | [9],[11] | 2.45% | ||||
Principal balance | $ 750 | 750 | ||||
Unamortized deferred issuance costs and discount | (3) | |||||
Banking Subsidiaries | Senior Unsecured Notes | 2.500% senior unsecured notes, due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [9],[12] | $ 753 | 0 | |||
Interest rate | [9],[12] | 2.50% | ||||
Principal balance | $ 750 | |||||
Unamortized deferred issuance costs and discount | (2) | |||||
Banking Subsidiaries | Senior Unsecured Notes | 2.550% Senior Unsecured Notes, Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | [9],[13] | $ 1,004 | 0 | |||
Interest rate | [9],[13] | 2.55% | ||||
Principal balance | $ 1,000 | |||||
Unamortized deferred issuance costs and discount | (5) | |||||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 1.600% senior unsecured notes, due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 4 | (1) | ||||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.300% senior unsecured notes, due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 8 | (3) | ||||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.450% senior unsecured notes, due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 20 | 2 | ||||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.500% senior unsecured notes, due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 5 | |||||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.550% Senior Unsecured Notes, Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate swaps | 9 | |||||
Banking Subsidiaries | Federal Home Loan advances | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | 5,264 | 5,018 | ||||
Banking Subsidiaries | Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term borrowed funds | $ 12 | $ 25 | ||||
[1] | These balances are comprised of: principal balances of $350 million at June 30, 2016 and December 31, 2015, as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2016. | |||||
[2] | Borrowed funds with RBS as of December 31, 2015. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||||
[3] | Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%. | |||||
[4] | These balances are comprised of: principal balance of $208 million and $333 million at June 30, 2016 and December 31, 2015, respectively, as well as the impact from interest rate swaps of $10 million and ($2) million at June 30, 2016 and December 31, 2015, respectively. See Note 11 “Derivatives” for further information. In addition, on March 7, 2016, the Company repurchased $125 million of these securities from RBS. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||||
[5] | These balances are comprised of: principal balance of $334 million at June 30, 2016 and December 31, 2015; impact from interest rate swaps of $21 million and ($3) million at June 30, 2016 and December 31, 2015, respectively. See Note 11 “Derivatives” for further information. | |||||
[6] | These balances are comprised of: principal balances of $250 million at June 30, 2016 and December 31, 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016. | |||||
[7] | These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2016. | |||||
[8] | These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015; impact from interest rate swaps of $4 million and ($1) million at June 30, 2016 and December 31, 2015, respectively; and ($1) million of unamortized deferred issuance costs and discount at June 30, 2016. See Note 11 “Derivatives” for further information. | |||||
[9] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. | |||||
[10] | These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015; impact from interest rate swaps of $8 million and ($3) million at June 30, 2016 and December 31, 2015, respectively; and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016. See Note 11 “Derivatives” for further information. | |||||
[11] | These balances are comprised of: principal balances of $750 million at June 30, 2016 and December 31, 2015; impact from interest rate swaps of $20 million and $2 million at June 30, 2016 and December 31, 2015, respectively; and ($3) million of unamortized deferred issuance costs and discount at June 30, 2016. See Note 11 “Derivatives” for further information. | |||||
[12] | The balance is comprised of: principal balance of $750 million at June 30, 2016; impact from interest rate swaps of $5 million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2016. See Note 11 “Derivatives” for further information. | |||||
[13] | The balance is comprised of: principal balance of $1.0 billion at June 30, 2016; impact from interest rate swaps of $9 million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2016. See Note 11 “Derivatives” for further information. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2017 or on demand | $ 6,004 | |
2,018 | 761 | |
2,019 | 1,521 | |
2,020 | 2 | |
2,021 | 1,009 | |
2022 and thereafter | 2,513 | |
Total | 11,810 | $ 9,886 |
Citizens Financial Group, Inc. | ||
Debt Instrument [Line Items] | ||
2017 or on demand | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2022 and thereafter | 2,501 | |
Total | 2,501 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2017 or on demand | 6,004 | |
2,018 | 761 | |
2,019 | 1,521 | |
2,020 | 2 | |
2,021 | 1,009 | |
2022 and thereafter | 12 | |
Total | $ 9,309 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Aug. 03, 2015 | Apr. 07, 2015 | Apr. 06, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Preferred Stock | ||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | ||||
Preferred stock, outstanding (in shares) | 250,000 | 250,000 | ||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | ||||
Treasury Stock | ||||||
Cost of stock repurchase | $ 0 | $ 250,000,000 | ||||
RBSG | ||||||
Treasury Stock | ||||||
Treasury stock purchased (in shares) | 9,615,384 | 10,473,397 | ||||
Treasury stock purchased, price per share (in dollars per share) | $ 26 | $ 23.87 | ||||
Cost of stock repurchase | $ 250,000,000 | |||||
4.350% fixed rate subordinated debt, due 2025 | Subordinated Debt | ||||||
Treasury Stock | ||||||
Aggregate principal amount of debt | $ 250,000,000 | |||||
Interest rate | 4.35% | |||||
Series A Preferred Stock | ||||||
Preferred Stock | ||||||
Preferred stock, authorized (in shares) | 250,000 | 250,000 | ||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 25 | |||
Preferred stock, issued | $ 250,000,000 | |||||
Preferred stock, issued (in shares) | 250,000 | 250,000 | 250,000 | |||
Preferred stock, dividend rate | 5.50% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | |||
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% | |||||
Share-based compensation plan activity | ||||||
Treasury Stock | ||||||
Treasury stock purchased, price per share (in dollars per share) | $ 25.50 | |||||
Cost of stock repurchase | $ 0 | $ 22,000,000 | ||||
Stock repurchased during period (in shares) | 876,087 |
EMPLOYEE BENEFITS Schedule of N
EMPLOYEE BENEFITS Schedule of Net Periodic (Income) Cost (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 24 | 24 |
Expected return on plan assets | (34) | (37) |
Amortization of actuarial loss | 8 | 7 |
Net periodic pension (income) cost | 0 | (4) |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 2 |
Interest cost | 22 | 22 |
Expected return on plan assets | (34) | (37) |
Amortization of actuarial loss | 7 | 6 |
Net periodic pension (income) cost | (3) | (7) |
Non-Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 2 | 2 |
Expected return on plan assets | 0 | 0 |
Amortization of actuarial loss | 1 | 1 |
Net periodic pension (income) cost | $ 3 | $ 3 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 118 | $ 92 | $ 227 | $ 198 | |
Effective income tax rate | 32.60% | 32.70% | 32.70% | 33.20% | |
Federal income tax rate | 35.00% | 35.00% | |||
Deferred taxes, net | $ 961 | $ 961 | $ 730 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Jun. 30, 2016USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 4 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Derivative Assets | |||
Derivative assets | $ 1,443 | $ 807 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (130) | (178) |
Less: Cash collateral applied | [1] | (1) | (4) |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 1,312 | 625 |
Derivative Liabilities | |||
Derivative Liabilities | 1,177 | 666 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (130) | (178) |
Less: Cash collateral applied | [1] | (37) | (3) |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 1,010 | 485 |
Derivatives not designated as hedging instruments: | |||
Derivative Assets | |||
Derivative assets | 1,018 | 711 | |
Derivative Liabilities | |||
Derivative Liabilities | 922 | 616 | |
Interest rate swaps | |||
Derivative Assets | |||
Derivative assets | 1,235 | 636 | |
Derivative Liabilities | |||
Derivative Liabilities | 978 | 505 | |
Interest rate swaps | Derivatives designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 15,500 | 16,750 |
Derivative Assets | |||
Derivative assets | 425 | 96 | |
Derivative Liabilities | |||
Derivative Liabilities | 255 | 50 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 39,606 | 33,719 |
Derivative Assets | |||
Derivative assets | 810 | 540 | |
Derivative Liabilities | |||
Derivative Liabilities | 723 | 455 | |
Foreign exchange contracts | |||
Derivative Assets | |||
Derivative assets | 193 | 163 | |
Derivative Liabilities | |||
Derivative Liabilities | 185 | 156 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 9,490 | 8,366 |
Derivative Assets | |||
Derivative assets | 193 | 163 | |
Derivative Liabilities | |||
Derivative Liabilities | 185 | 156 | |
Other contracts | |||
Derivative Assets | |||
Derivative assets | 15 | 8 | |
Derivative Liabilities | |||
Derivative Liabilities | 14 | 5 | |
Other contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 1,491 | 981 |
Derivative Assets | |||
Derivative assets | 15 | 8 | |
Derivative Liabilities | |||
Derivative Liabilities | $ 14 | $ 5 | |
[1] | Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||
[2] | The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 2 “Securities” for further information. | ||
[3] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 11 | $ 3 | $ 17 | $ 7 |
Hedge of interest rate risk | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 32 | (3) | 84 | 6 |
Hedged Item | (31) | 3 | (83) | (6) |
Hedge Ineffectiveness | $ 1 | $ 0 | $ 1 | $ 0 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | $ 141 | $ 155 | $ 286 | $ 314 | |
Amounts reclassified from OCI to interest expense | (123) | (112) | (238) | (218) | |
Amount Reclassified from AOCI | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portion of gain (loss) recognized in OCI | [1] | 21 | (8) | 75 | 96 |
Amount Reclassified from AOCI | Net Unrealized Gains (Losses) on Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | [2] | 21 | 17 | 43 | 35 |
Amounts reclassified from OCI to interest expense | [2] | $ (8) | $ (14) | $ (16) | $ (29) |
[1] | The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | ||||
[2] | This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | $ 11 | $ 3 | $ 17 | $ 7 | |
Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | 32 | (3) | 84 | 6 | |
Customer derivative contracts | Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (2) | (9) | 95 | 64 |
Customer derivative contracts | Other Income | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (23) | 18 | 28 | (17) |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | 3 | (7) | 7 | (7) |
Economic hedges | Other Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | 15 | 17 | (76) | (51) |
Economic hedges | Foreign Exchange and Trade Finance Fees | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [3] | 23 | (19) | (27) | 16 |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | $ (5) | $ 3 | $ (10) | $ 2 |
[1] | Reported in other income on the Consolidated Statements of Operations. | ||||
[2] | Reported in mortgage banking fees on the Consolidated Statements of Operations. | ||||
[3] | Reported in foreign exchange and letter of credit fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Jan. 07, 2016USD ($) | Jun. 30, 2016USD ($)counterparty | Dec. 31, 2015USD ($) | Dec. 31, 2003 |
Letters of Credit [Abstract] | ||||
Letters of credit outstanding | $ 3 | $ 3 | ||
Risk Participation Agreements [Abstract] | ||||
Risk participation agreements | $ 64 | 26 | ||
Risk participation agreements number of counterparties | counterparty | 89 | |||
Risk participation agreements, Maximum term | 10 years | |||
Commercial real estate loans held for sale | Purchase commitment | ||||
Commitments [Abstract] | ||||
Unsettled commercial loan trade purchases | $ 111 | |||
Unsettled commercial loan trade sales | $ 108 | |||
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 | $ 1 | $ 3 | ||
Remaining obligation due | 46 | |||
Automobile | Minimum | ||||
Commitments [Abstract] | ||||
Purchase commitment, due after next twelve months | 50 | |||
Automobile | Maximum | ||||
Commitments [Abstract] | ||||
Purchase commitment, due after next twelve months | $ 200 | |||
Student | ||||
Commitments [Abstract] | ||||
Termination fee | $ 1 | |||
Student | Minimum | ||||
Commitments [Abstract] | ||||
Purchase commitment, due in next twelve months | 125 | |||
Aggregate purchase principal balance | 500 | |||
Student | Maximum | ||||
Commitments [Abstract] | ||||
Aggregate purchase principal balance | $ 1,000 | |||
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 |
COMMITMENTS AND CONTINGENCIES95
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Commitment amount | $ 60,794 | $ 58,746 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 58,622 | 56,524 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 1,946 | 2,010 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 37 | 42 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 70 | 87 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 46 | 47 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 64 | 26 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 9 | $ 10 |
RELATED PARTY TRANSACTIONS AN96
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Narrative (Details) - USD ($) | Jul. 28, 2016 | Mar. 07, 2016 | Dec. 03, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||||||
Repurchase of long-term borrowed funds | $ 3,631,000,000 | $ 6,000,000 | ||||||
Gain on extinguishment of debt | $ 3,000,000 | |||||||
RBSG | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repurchase of long-term borrowed funds | $ 125,000,000 | $ 750,000,000 | ||||||
Payments of ordinary common stock dividends | $ 0 | $ 21,000,000 | 0 | $ 60,000,000 | ||||
Executive Officers, Family Members, and Their Businesses | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party loans | $ 141,000,000 | $ 141,000,000 | $ 136,000,000 | |||||
Subsequent Event | RBSG | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repurchase of long-term borrowed funds | $ 500,000,000 |
RELATED PARTY TRANSACTIONS AN97
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Debt Terms (Details) - USD ($) $ in Millions | Jul. 28, 2016 | Mar. 07, 2016 | Dec. 03, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Related Party Transaction [Line Items] | ||||||||
Long-term borrowed funds | $ 11,810 | $ 9,886 | ||||||
Repurchase of long-term borrowed funds | 3,631 | $ 6 | ||||||
Citizens Financial Group, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Long-term borrowed funds | $ 2,501 | |||||||
Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | Citizens Financial Group, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | [1] | 5.158% | ||||||
Long-term borrowed funds | [1] | $ 333 | $ 333 | |||||
Subordinated Debt | 3.750% fixed rate subordinated debt, due 2024 | Citizens Financial Group, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | [1] | 3.75% | [2] | 4.153% | ||||
Long-term borrowed funds | [1],[2] | $ 250 | $ 250 | |||||
Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | Citizens Financial Group, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | [1],[3] | 4.023% | ||||||
Long-term borrowed funds | [1],[3] | $ 218 | 331 | |||||
Extinguishment of debt, amount | $ 125 | |||||||
Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | Citizens Financial Group, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | [1],[4] | 4.082% | ||||||
Long-term borrowed funds | [1],[4] | $ 355 | $ 331 | |||||
RBSG | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repurchase of long-term borrowed funds | $ 125 | $ 750 | ||||||
RBSG | Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repurchase of long-term borrowed funds | $ 500 | |||||||
RBSG | Subordinated Debt | 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 | ||||||
RBSG | Subordinated Debt | 3.750% fixed rate subordinated debt, due 2024 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | [5] | 3.75% | ||||||
Long-term borrowed funds | $ 250 | |||||||
RBSG | Subordinated Debt | 4.153% fixed rate subordinated debt, due 2024 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 4.153% | |||||||
Long-term borrowed funds | $ 250 | |||||||
RBSG | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 4.023% | [6],[7] | 4.023% | |||||
Long-term borrowed funds | $ 208 | $ 333 | ||||||
RBSG | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 4.023% | |||||||
Repurchase of long-term borrowed funds | $ 166 | |||||||
RBSG | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 4.082% | [6] | 4.082% | |||||
Long-term borrowed funds | $ 334 | $ 334 | ||||||
RBSG | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | Subsequent Event | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate | 4.082% | |||||||
Repurchase of long-term borrowed funds | $ 334 | |||||||
[1] | Borrowed funds with RBS as of December 31, 2015. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||||||
[2] | Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%. | |||||||
[3] | These balances are comprised of: principal balance of $208 million and $333 million at June 30, 2016 and December 31, 2015, respectively, as well as the impact from interest rate swaps of $10 million and ($2) million at June 30, 2016 and December 31, 2015, respectively. See Note 11 “Derivatives” for further information. In addition, on March 7, 2016, the Company repurchased $125 million of these securities from RBS. See Note 13 “Related Party Transactions and Significant Transactions with RBS” for further information. | |||||||
[4] | These balances are comprised of: principal balance of $334 million at June 30, 2016 and December 31, 2015; impact from interest rate swaps of $21 million and ($3) million at June 30, 2016 and December 31, 2015, respectively. See Note 11 “Derivatives” for further information. | |||||||
[5] | Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%. | |||||||
[6] | On July 28, 2016, the Company repurchased $500 million of its subordinated notes held by RBS, including $166 million of its 4.023% subordinated notes due 2024 and $334 million of its 4.082% subordinated notes due 2025. Refer to Note 21 “Subsequent Events” for further information. | |||||||
[7] | On March 7, 2016, the Company repurchased $125 million of these securities from RBS. |
RELATED PARTY TRANSACTIONS AN98
RELATED PARTY TRANSACTIONS AND SIGNIFICANT TRANSACTIONS WITH RBS - Schedule of Related Party Transactions, Recorded Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Related Party Transactions [Abstract] | ||||
Interest expense on subordinated debt | $ 10 | $ 20 | $ 21 | $ 40 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage banking (expense) income | $ 25,000,000 | $ 30,000,000 | $ 43,000,000 | $ 63,000,000 | ||
Transfers from Level 3 to Level 2 | $ 5,000,000 | |||||
Weighted average life (in years) | 4 years 10 months 24 days | 5 years 4 months 24 days | ||||
Weighted average constant prepayment rate | 13.50% | 11.60% | ||||
Weighted average discount rate | 9.70% | 9.70% | ||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Weighted average life (in years) | 2 years 6 months | 2 years 9 months 18 days | ||||
Weighted average constant prepayment rate | 13.20% | 10.70% | ||||
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) | 5 years 3 months 18 days | 6 years 2 months 12 days | ||||
Weighted average constant prepayment rate | 24.30% | 22.20% | ||||
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 | 6,000,000 | (3,000,000) | $ 12,000,000 | (2,000,000) | ||
Commercial real estate loans held for sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans in this portfolio that were 90 days or more past due or nonaccruing | 0 | 0 | ||||
Other noninterest income | $ 2,000,000 | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 478 | $ 325 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 478 | 325 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 424 | 268 |
Aggregate Unpaid Principal | 408 | 263 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 16 | 5 |
Level 2 | Commercial real estate loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 54 | 57 |
Aggregate Unpaid Principal | 54 | 57 |
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 | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets | |||
Securities available for sale | [1] | $ 18,479 | $ 17,884 |
Loans held for sale, at fair value | 478 | 325 | |
Derivative assets | 1,443 | 807 | |
Money market mutual fund | 68 | 65 | |
Other investments | 5 | 5 | |
Total other investment securities, at fair value | 73 | 70 | |
Total assets | 20,473 | 19,086 | |
Liabilities | |||
Total derivative liabilities | 1,177 | 666 | |
Total liabilities | 1,177 | 666 | |
Interest rate swaps | |||
Assets | |||
Derivative assets | 1,235 | 636 | |
Liabilities | |||
Total derivative liabilities | 978 | 505 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 193 | 163 | |
Liabilities | |||
Total derivative liabilities | 185 | 156 | |
Other contracts | |||
Assets | |||
Derivative assets | 15 | 8 | |
Liabilities | |||
Total derivative liabilities | 14 | 5 | |
Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 18,438 | 17,842 | |
State and political subdivisions | |||
Assets | |||
Securities available for sale | 9 | 9 | |
Equity securities | |||
Assets | |||
Securities available for sale | 17 | 17 | |
U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 15 | 16 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 424 | 268 | |
Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 54 | 57 | |
Level 1 | |||
Assets | |||
Securities available for sale | 15 | 15 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Money market mutual fund | 68 | 65 | |
Other investments | 0 | 0 | |
Total other investment securities, at fair value | 68 | 65 | |
Total assets | 83 | 80 | |
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 | 0 | |
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, at fair value | 0 | 0 | |
Level 1 | Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 0 | 0 | |
Level 2 | |||
Assets | |||
Securities available for sale | 18,464 | 17,869 | |
Loans held for sale, at fair value | 478 | 325 | |
Derivative assets | 1,443 | 807 | |
Money market mutual fund | 0 | 0 | |
Other investments | 5 | 5 | |
Total other investment securities, at fair value | 5 | 5 | |
Total assets | 20,390 | 19,006 | |
Liabilities | |||
Total derivative liabilities | 1,177 | 666 | |
Total liabilities | 1,177 | 666 | |
Level 2 | Interest rate swaps | |||
Assets | |||
Derivative assets | 1,235 | 636 | |
Liabilities | |||
Total derivative liabilities | 978 | 505 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 193 | 163 | |
Liabilities | |||
Total derivative liabilities | 185 | 156 | |
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 15 | 8 | |
Liabilities | |||
Total derivative liabilities | 14 | 5 | |
Level 2 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 18,438 | 17,842 | |
Level 2 | State and political subdivisions | |||
Assets | |||
Securities available for sale | 9 | 9 | |
Level 2 | Equity securities | |||
Assets | |||
Securities available for sale | 17 | 17 | |
Level 2 | U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 0 | 1 | |
Level 2 | Residential loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 424 | 268 | |
Level 2 | Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | 54 | 57 | |
Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Loans held for sale, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Money market mutual fund | 0 | 0 | |
Other investments | 0 | 0 | |
Total other investment securities, at fair value | 0 | 0 | |
Total assets | 0 | 0 | |
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, at fair value | 0 | 0 | |
Level 3 | Commercial loans held for sale | |||
Assets | |||
Loans held for sale, at fair value | $ 0 | $ 0 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sc102
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) - Recurring basis - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of period balance | $ 0 | $ 1 | $ 0 | $ 5 |
Purchases | 0 | 0 | 0 | 1 |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Net (losses) gains | 0 | 0 | 0 | 0 |
Transfers from Level 3 to Level 2 | 0 | 0 | 0 | (5) |
Balance as of period end | 0 | 1 | 0 | 1 |
Net unrealized gain (loss) included in net income for the year relating to assets held at period end | $ 0 | $ 0 | $ 0 | $ 1 |
FAIR VALUE MEASUREMENTS - Sc103
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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 | $ (6) | $ (10) | $ (11) | $ (13) |
MSRs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | 1 | 6 | (4) | 7 |
Foreclosed assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (1) | $ (1) | $ (2) | $ (2) |
FAIR VALUE MEASUREMENTS - Sc104
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 55 | $ 60 |
MSRs | 165 | 178 |
Foreclosed assets | 46 | 42 |
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 | 55 | 60 |
MSRs | 0 | 0 |
Foreclosed assets | 46 | 42 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 165 | 178 |
Foreclosed assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc105
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | [1] | $ 4,973 | $ 5,258 |
Securities held-to-maturity, fair value | 5,136 | 5,297 | |
Other investment securities, at cost, carrying value | 873 | 863 | |
Other investment securities, at cost, fair value | 873 | 863 | |
Other loans held for sale, carrying value | 372 | 40 | |
Other loans held for sale, fair value | 372 | 40 | |
Loans and leases, carrying value | 103,551 | 99,042 | |
Loans and leases, fair value | 104,381 | 99,026 | |
Deposits, carrying value | 106,257 | 102,539 | |
Deposits, fair value | 106,260 | 102,528 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 717 | 802 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 717 | 802 | |
Other short-term borrowed funds, carrying value | 2,770 | 2,630 | |
Other short-term borrowed funds, fair value | 2,770 | 2,630 | |
Long-term borrowed funds, carrying value | 11,810 | 9,886 | |
Long-term borrowed funds, fair value | 11,968 | 9,837 | |
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 | 4,973 | 5,258 | |
Securities held-to-maturity, fair value | 5,136 | 5,297 | |
Other investment securities, at cost, carrying value | 873 | 863 | |
Other investment securities, at cost, fair value | 873 | 863 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 55 | 60 | |
Loans and leases, fair value | 55 | 60 | |
Deposits, carrying value | 106,257 | 102,539 | |
Deposits, fair value | 106,260 | 102,528 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 717 | 802 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 717 | 802 | |
Other short-term borrowed funds, carrying value | 2,770 | 2,630 | |
Other short-term borrowed funds, fair value | 2,770 | 2,630 | |
Long-term borrowed funds, carrying value | 11,810 | 9,886 | |
Long-term borrowed funds, fair value | 11,968 | 9,837 | |
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 | 372 | 40 | |
Other loans held for sale, fair value | 372 | 40 | |
Loans and leases, carrying value | 103,496 | 98,982 | |
Loans and leases, fair value | 104,326 | 98,966 | |
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) | Jul. 20, 2016$ / shares | Jun. 30, 2016USD ($)subsidiary | Jun. 30, 2017$ / shares | Dec. 31, 2016$ / shares | Jun. 30, 2016USD ($)subsidiary | Jun. 30, 2017 | Jul. 01, 2016USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Dividends | $ | $ 64,000,000 | $ 117,000,000 | |||||
Banking Subsidiaries | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Number of financial subsidiaries | subsidiary | 2 | 2 | |||||
CBNA subsidiaries | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Number of financial subsidiaries | subsidiary | 2 | 2 | |||||
Scenario, Forecast | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Dividends declared (in Dollars per Share) | $ / shares | $ 0.14 | $ 0.12 | |||||
Percentage increase in quarterly dividend | 17.00% | ||||||
Subsequent Event | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Dividends declared (in Dollars per Share) | $ / shares | $ 0.12 | ||||||
Share repurchase plan, authorized amount | $ | $ 690,000,000 |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | ||
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | ||||
Actual | [1] | $ 13,768 | [2] | $ 13,389 |
Minimum Capital Adequacy | [1] | 6,124 | [2] | 5,134 |
Classification as Well-capitalized | [1] | $ 7,767 | [2] | $ 7,415 |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | ||||
Actual | [1] | 11.50% | [2] | 11.70% |
Minimum Capital Adequacy | [1] | 5.125% | [2] | 4.50% |
Classification as Well-capitalized | [1] | 6.50% | [2] | 6.50% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | ||||
Actual | [3] | $ 14,015 | [2] | $ 13,636 |
Minimum Capital Adequacy | [3] | 7,916 | [2] | 6,845 |
Classification as Well-capitalized | [3] | $ 9,559 | [2] | $ 9,127 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||||
Actual | [3] | 11.70% | [2] | 12.00% |
Minimum Capital Adequacy | [3] | 6.625% | [2] | 6.00% |
Classification as Well-capitalized | [3] | 8.00% | [2] | 8.00% |
Total Capital to Risk-Weighted Assets (Amount) | ||||
Actual | [4] | $ 17,823 | [2] | $ 17,505 |
Minimum Capital Adequacy | [4] | 10,306 | [2] | 9,127 |
Classification as Well-capitalized | [4] | $ 11,949 | [2] | $ 11,408 |
Total Capital to Risk-Weighted Assets (Ratio) | ||||
Actual | [4] | 14.90% | [2] | 15.30% |
Minimum Capital Adequacy | [4] | 8.625% | [2] | 8.00% |
Classification as Well-capitalized | [4] | 10.00% | [2] | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ||||
Actual | [5] | $ 14,015 | $ 13,636 | |
Minimum Capital Adequacy | [5] | 5,452 | 5,218 | |
Classification as Well-capitalized | [5] | $ 6,815 | $ 6,523 | |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||||
Actual | [5] | 10.30% | 10.50% | |
Minimum Capital Adequacy | [5] | 4.00% | 4.00% | |
Classification as Well-capitalized | [5] | 5.00% | 5.00% | |
Capital Conservation Buffer | 0.625% | |||
[1] | “Common equity tier 1 capital ratio” represents CET1 divided by total risk-weighted assets as defined under Basel III Standardized approach. | |||
[2] | “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0.625%. | |||
[3] | “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. | |||
[4] | “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. | |||
[5] | “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. |
EXIT COSTS AND RESTRUCTURING108
EXIT COSTS AND RESTRUCTURING RESERVES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | $ 0 | $ 25,000,000 | $ 0 | $ 26,000,000 |
Outside Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | 5,000,000 | 6,000,000 | ||
Salaries & Employee Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | 5,000,000 | |||
Salaries & Employee Benefits | Salaries & Employee Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | 3,000,000 | |||
Occupancy & Equipment | Occupancy & Equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges incurred | $ 15,000,000 | $ 17,000,000 |
EXIT COSTS AND RESTRUCTURING109
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 24 | $ 35 | $ 33 | $ 44 |
Additions | 0 | 25 | 0 | 28 |
Reversals | 0 | 0 | 0 | (2) |
Utilization | (4) | (8) | (13) | (18) |
Ending balance | 20 | 52 | 20 | 52 |
Salaries & Employee Benefits | Salaries & Employee Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 10 | 18 | 12 | 23 |
Additions | 0 | 5 | 0 | 5 |
Reversals | 0 | 0 | 0 | (2) |
Utilization | (2) | (2) | (4) | (5) |
Ending balance | 8 | 21 | 8 | 21 |
Occupancy & Equipment | Occupancy & Equipment | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 14 | 17 | 16 | 18 |
Additions | 0 | 15 | 0 | 17 |
Reversals | 0 | 0 | 0 | 0 |
Utilization | (2) | (5) | (4) | (8) |
Ending balance | 12 | 27 | 12 | 27 |
Other | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | 0 | 5 | 3 |
Additions | 0 | 5 | 0 | 6 |
Reversals | 0 | 0 | 0 | 0 |
Utilization | 0 | (1) | (5) | (5) |
Ending balance | $ 0 | $ 4 | $ 0 | $ 4 |
RECLASSIFICATIONS OUT OF ACC110
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 19,646 | $ 19,268 | ||
Other-than-temporary impairment not recognized in earnings on securities | $ 4 | $ 1 | (21) | (18) |
Net other comprehensive income | 228 | 13 | ||
Ending balance | 20,226 | 19,586 | 20,226 | 19,586 |
Total AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (236) | (240) | (387) | (372) |
Other comprehensive income before reclassifications | 77 | (115) | 264 | 40 |
Other-than-temporary impairment not recognized in earnings on securities | 4 | 1 | (21) | (18) |
Amounts reclassified from other comprehensive (loss) income | (4) | (5) | (15) | (9) |
Net other comprehensive income | 77 | (119) | 228 | 13 |
Ending balance | (159) | (359) | (159) | (359) |
Net Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 35 | (6) | 10 | (69) |
Other comprehensive income before reclassifications | 13 | (5) | 46 | 60 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | (9) | (2) | (17) | (4) |
Net other comprehensive income | 4 | (7) | 29 | 56 |
Ending balance | 39 | (13) | 39 | (13) |
Net Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 96 | 141 | (28) | 74 |
Other comprehensive income before reclassifications | 64 | (110) | 218 | (20) |
Other-than-temporary impairment not recognized in earnings on securities | 4 | 1 | (21) | (18) |
Amounts reclassified from other comprehensive (loss) income | 2 | (5) | (3) | (9) |
Net other comprehensive income | 70 | (114) | 194 | (47) |
Ending balance | 166 | 27 | 166 | 27 |
Defined Benefit Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (367) | (375) | (369) | (377) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | 3 | 2 | 5 | 4 |
Net other comprehensive income | 3 | 2 | 5 | 4 |
Ending balance | $ (364) | $ (373) | $ (364) | $ (373) |
RECLASSIFICATIONS OUT OF ACC111
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest income | $ 141 | $ 155 | $ 286 | $ 314 | |
Interest expense | (123) | (112) | (238) | (218) | |
Net securities impairment losses recognized in earnings | (7) | (2) | (8) | (3) | |
Salaries and employee benefits | (432) | (411) | (857) | (830) | |
Income before income tax expense | 361 | 282 | 693 | 597 | |
Income tax expense | 118 | 92 | 227 | 198 | |
Net income | 243 | 190 | 466 | 399 | |
Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax expense | 2 | 1 | 9 | 4 | |
Net income | 4 | 5 | 15 | 9 | |
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] | 21 | 17 | 43 | 35 |
Interest expense | [1] | (8) | (14) | (16) | (29) |
Income before income tax expense | 13 | 3 | 27 | 6 | |
Income tax expense | 4 | 1 | 10 | 2 | |
Net income | 9 | 2 | 17 | 4 | |
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 | 4 | 9 | 13 | 17 | |
Net securities impairment losses recognized in earnings | (7) | (2) | (8) | (3) | |
Income before income tax expense | (3) | 7 | 5 | 14 | |
Income tax expense | (1) | 2 | 2 | 5 | |
Net income | (2) | 5 | 3 | 9 | |
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 | (4) | (4) | (8) | (7) | |
Income before income tax expense | (4) | (4) | (8) | (7) | |
Income tax expense | (1) | (2) | (3) | (3) | |
Net income | $ (3) | $ (2) | $ (5) | $ (4) | |
[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 ACC112
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Effects to Net Income of Amounts Reclassified Out of OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | $ 923 | $ 840 | $ 1,827 | $ 1,676 |
Provision for credit losses | 90 | 77 | 181 | 135 |
Noninterest income | 355 | 360 | 685 | 707 |
Noninterest expense | 827 | 841 | 1,638 | 1,651 |
Income before income tax expense | 361 | 282 | 693 | 597 |
Income tax expense | 118 | 92 | 227 | 198 |
Net income | 243 | 190 | 466 | 399 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | 13 | 3 | 27 | 6 |
Noninterest income | (3) | 7 | 5 | 14 |
Noninterest expense | 4 | 4 | 8 | 7 |
Income tax expense | 2 | 1 | 9 | 4 |
Net income | $ 4 | $ 5 | $ 15 | $ 9 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of segments | segment | 2 | |||
Revenues | $ 1,278 | $ 1,200 | $ 2,512 | $ 2,383 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 821 | 774 | 1,610 | 1,526 |
Consumer Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 436 | $ 394 | 835 | $ 770 |
Commercial Banking | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,500 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 923 | $ 840 | $ 1,827 | $ 1,676 |
Noninterest income | 355 | 360 | 685 | 707 |
Total revenue | 1,278 | 1,200 | 2,512 | 2,383 |
Noninterest expense | 827 | 841 | 1,638 | 1,651 |
Profit before provision for credit losses | 451 | 359 | 874 | 732 |
Provision for credit losses | 90 | 77 | 181 | 135 |
Income before income tax expense | 361 | 282 | 693 | 597 |
Income tax expense | 118 | 92 | 227 | 198 |
NET INCOME | 243 | 190 | 466 | 399 |
Total average assets | 142,179 | 135,521 | 140,479 | 134,429 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 602 | 544 | 1,183 | 1,077 |
Noninterest income | 219 | 230 | 427 | 449 |
Total revenue | 821 | 774 | 1,610 | 1,526 |
Noninterest expense | 632 | 613 | 1,248 | 1,209 |
Profit before provision for credit losses | 189 | 161 | 362 | 317 |
Provision for credit losses | 49 | 60 | 112 | 123 |
Income before income tax expense | 140 | 101 | 250 | 194 |
Income tax expense | 50 | 35 | 89 | 67 |
NET INCOME | 90 | 66 | 161 | 127 |
Total average assets | 55,660 | 52,489 | 55,388 | 52,048 |
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 314 | 286 | 614 | 562 |
Noninterest income | 122 | 108 | 221 | 208 |
Total revenue | 436 | 394 | 835 | 770 |
Noninterest expense | 186 | 181 | 373 | 354 |
Profit before provision for credit losses | 250 | 213 | 462 | 416 |
Provision for credit losses | (1) | 7 | 8 | (14) |
Income before income tax expense | 251 | 206 | 454 | 430 |
Income tax expense | 87 | 71 | 157 | 148 |
NET INCOME | 164 | 135 | 297 | 282 |
Total average assets | 47,388 | 42,617 | 46,346 | 42,114 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 7 | 10 | 30 | 37 |
Noninterest income | 14 | 22 | 37 | 50 |
Total revenue | 21 | 32 | 67 | 87 |
Noninterest expense | 9 | 47 | 17 | 88 |
Profit before provision for credit losses | 12 | (15) | 50 | (1) |
Provision for credit losses | 42 | 10 | 61 | 26 |
Income before income tax expense | (30) | (25) | (11) | (27) |
Income tax expense | (19) | (14) | (19) | (17) |
NET INCOME | (11) | (11) | 8 | (10) |
Total average assets | $ 39,131 | $ 40,415 | $ 38,745 | $ 40,267 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator (basic and diluted): | ||||
Net income | $ 243 | $ 190 | $ 466 | $ 399 |
Less: Preferred stock dividends | 0 | 0 | 7 | 0 |
Net income available to common stockholders | $ 243 | $ 190 | $ 459 | $ 399 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in Shares) | 528,968,330 | 537,729,248 | 528,519,489 | 541,986,653 |
Dilutive common shares: share-based awards (in Shares) | 1,396,873 | 2,180,118 | 1,877,382 | 2,817,615 |
Weighted-average common shares outstanding - diluted (in Shares) | 530,365,203 | 539,909,366 | 530,396,871 | 544,804,268 |
Earnings per common share: | ||||
Basic (in Dollars per Share) | $ 0.46 | $ 0.35 | $ 0.87 | $ 0.74 |
Diluted (in Dollars per Share) | $ 0.46 | $ 0.35 | $ 0.87 | $ 0.73 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Deposit insurance | $ 29 | $ 26 | $ 55 | $ 60 |
Promotional expense | 25 | 29 | 49 | 51 |
Other | 74 | 84 | 139 | 161 |
Other operating expense | $ 128 | $ 139 | $ 243 | $ 272 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 28, 2016 | Jul. 20, 2016 | Jul. 19, 2016 | Mar. 07, 2016 | Dec. 03, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | |||||||||
Loans held for sale | $ 850,000,000 | $ 365,000,000 | |||||||
Repurchase of long-term borrowed funds | $ 3,631,000,000 | $ 6,000,000 | |||||||
RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Repurchase of long-term borrowed funds | $ 125,000,000 | $ 750,000,000 | |||||||
Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Interest rate | 4.082% | [1] | 4.082% | ||||||
Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Interest rate | 4.023% | [1],[2] | 4.023% | ||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Gain (loss) on sales of loans, net | $ 70,000,000 | ||||||||
Loans held for sale | $ 310,000,000 | ||||||||
Dividends declared (in Dollars per Share) | $ 0.12 | ||||||||
Dividends to common stockholders | $ 63,000,000 | ||||||||
Subsequent Event | RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Repurchase of long-term borrowed funds | $ 500,000,000 | ||||||||
Subsequent Event | Subordinated Debt | 2.375% fixed rate subordinated debt, due 2021 | |||||||||
Subsequent Event [Line Items] | |||||||||
Principal balance | $ 350,000,000 | ||||||||
Interest rate | 2.375% | ||||||||
Subsequent Event | Subordinated Debt | 4.082% fixed rate subordinated debt, due 2025 | RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Interest rate | 4.082% | ||||||||
Repurchase of long-term borrowed funds | $ 334,000,000 | ||||||||
Subsequent Event | Subordinated Debt | 4.023% fixed rate subordinated debt, due 2024 | RBSG | |||||||||
Subsequent Event [Line Items] | |||||||||
Interest rate | 4.023% | ||||||||
Repurchase of long-term borrowed funds | $ 166,000,000 | ||||||||
[1] | On July 28, 2016, the Company repurchased $500 million of its subordinated notes held by RBS, including $166 million of its 4.023% subordinated notes due 2024 and $334 million of its 4.082% subordinated notes due 2025. Refer to Note 21 “Subsequent Events” for further information. | ||||||||
[2] | On March 7, 2016, the Company repurchased $125 million of these securities from RBS. |