Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 759,944 | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 500,671,099 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
ASSETS: | |||
Cash and due from banks | $ 904 | $ 955 | |
Interest-bearing cash and due from banks | 3,263 | 2,749 | |
Interest-bearing deposits in banks | 433 | 439 | |
Securities available for sale, at fair value (including $100 and $256 pledged to creditors, respectively) | [1] | 19,257 | 19,501 |
Securities held to maturity (including fair value of $4,986 and $5,058, respectively) | 4,967 | 5,071 | |
Other investment securities, at fair value | 97 | 96 | |
Other investment securities, at cost | 794 | 942 | |
Loans held for sale, at fair value | 520 | 583 | |
Other loans held for sale | 187 | 42 | |
Loans and leases | 109,046 | 107,669 | |
Less: Allowance for loan and lease losses | (1,219) | (1,236) | |
Net loans and leases | 107,827 | 106,433 | |
Derivative assets | 408 | 627 | |
Premises and equipment, net | 600 | 601 | |
Bank-owned life insurance | 1,636 | 1,612 | |
Goodwill | 6,887 | 6,876 | |
Due from broker | 530 | 0 | |
Other assets | 3,097 | 2,993 | |
TOTAL ASSETS | 151,407 | 149,520 | |
Deposits: | |||
Noninterest-bearing | 27,814 | 28,472 | |
Interest-bearing | 85,799 | 81,332 | |
Total deposits | 113,613 | 109,804 | |
Federal funds purchased and securities sold under agreements to repurchase | 429 | 1,148 | |
Other short-term borrowed funds | 2,004 | 3,211 | |
Derivative liabilities | 159 | 659 | |
Deferred taxes, net | 740 | 714 | |
Long-term borrowed funds | 13,154 | 12,790 | |
Other liabilities | 1,244 | 1,447 | |
TOTAL LIABILITIES | 131,343 | 129,773 | |
Contingencies | |||
Preferred stock, $25.00 par value, authorized 100,000,000 shares: | |||
Series A, non-cumulative perpetual, $25 par value,(liquidation preference $1,000), 250,000 shares authorized and issued net of issuance costs and related premium at June 30, 2017 and December 31, 2016 | 247 | 247 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized, 565,684,331 shares issued and 505,880,851 shares outstanding at June 30, 2017 and 1,000,000,000 shares authorized, 564,630,542 shares issued and 511,954,871 shares outstanding at December 31, 2016 | 6 | 6 | |
Additional paid-in capital | 18,761 | 18,722 | |
Retained earnings | 3,191 | 2,703 | |
Treasury stock, at cost, 59,803,480 and 52,675,671 shares at June 30, 2017 and December 31, 2016, respectively | (1,548) | (1,263) | |
Accumulated other comprehensive loss | (593) | (668) | |
TOTAL STOCKHOLDERS’ EQUITY | 20,064 | 19,747 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 151,407 | $ 149,520 | |
[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, 2017 | Dec. 31, 2016 | |
ASSETS: | |||
Securities held-to-maturity, fair value | $ 4,986 | $ 5,058 | |
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) | 565,684,331 | 564,630,542 | |
Common stock, outstanding (in shares) | 505,880,851 | 511,954,871 | |
Treasury stock (in shares) | 59,803,480 | 52,675,671 | |
Series A Preferred Stock | |||
STOCKHOLDERS’ EQUITY: | |||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, authorized (in shares) | 250,000 | 250,000 | |
Preferred stock, issued (in shares) | 250,000 | 250,000 | |
Available-for-sale Securities | |||
ASSETS: | |||
Securities, pledged as collateral | [1] | $ 100 | $ 256 |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 1,040 | $ 896 | $ 2,032 | $ 1,764 |
Interest and fees on loans held for sale, at fair value | 4 | 3 | 8 | 6 |
Interest and fees on other loans held for sale | 2 | 4 | 3 | 5 |
Investment securities | 154 | 141 | 314 | 286 |
Interest-bearing deposits in banks | 5 | 2 | 8 | 4 |
Total interest income | 1,205 | 1,046 | 2,365 | 2,065 |
INTEREST EXPENSE: | ||||
Deposits | 102 | 63 | 188 | 123 |
Federal funds purchased and securities sold under agreements to repurchase | 0 | 0 | 1 | 1 |
Other short-term borrowed funds | 7 | 12 | 15 | 23 |
Long-term borrowed funds | 70 | 48 | 130 | 91 |
Total interest expense | 179 | 123 | 334 | 238 |
Net interest income | 1,026 | 923 | 2,031 | 1,827 |
Provision for credit losses | 70 | 90 | 166 | 181 |
Net interest income after provision for credit losses | 956 | 833 | 1,865 | 1,646 |
NONINTEREST INCOME: | ||||
Service charges and fees | 129 | 130 | 254 | 256 |
Card fees | 59 | 51 | 119 | 101 |
Capital markets fees | 51 | 38 | 99 | 63 |
Trust and investment services fees | 39 | 38 | 78 | 75 |
Letter of credit and loan fees | 31 | 28 | 60 | 55 |
Foreign exchange and interest rate products | 26 | 26 | 53 | 44 |
Mortgage banking fees | 30 | 25 | 53 | 43 |
Securities gains, net | 3 | 4 | 7 | 13 |
Net securities impairment losses recognized in earnings | (4) | (7) | (5) | (8) |
Other income | 6 | 22 | 31 | 43 |
Total noninterest income | 370 | 355 | 749 | 685 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 432 | 432 | 876 | 857 |
Outside services | 96 | 86 | 187 | 177 |
Occupancy | 79 | 76 | 161 | 152 |
Equipment expense | 64 | 64 | 131 | 129 |
Amortization of software | 45 | 41 | 89 | 80 |
Other operating expense | 148 | 128 | 274 | 243 |
Total noninterest expense | 864 | 827 | 1,718 | 1,638 |
Income before income tax expense | 462 | 361 | 896 | 693 |
Income tax expense | 144 | 118 | 258 | 227 |
NET INCOME | 318 | 243 | 638 | 466 |
Net income available to common stockholders | $ 318 | $ 243 | $ 631 | $ 459 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 506,371,846 | 528,968,330 | 507,903,141 | 528,519,489 |
Diluted (in Shares) | 507,414,122 | 530,365,203 | 509,362,055 | 530,396,871 |
Per common share information: | ||||
Basic earnings (in Dollars per Share) | $ 0.63 | $ 0.46 | $ 1.24 | $ 0.87 |
Diluted earnings (in Dollars per Share) | 0.63 | 0.46 | 1.24 | 0.87 |
Dividends declared and paid (in Dollars per Share) | $ 0.14 | $ 0.12 | $ 0.28 | $ 0.22 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 318 | $ 243 | $ 638 | $ 466 |
Other comprehensive income: | ||||
Net unrealized derivative instrument gains arising during the periods, net of income tax expense of $16, $8, $14 and $29, respectively | 26 | 13 | 23 | 46 |
Reclassification adjustment for net derivative gains included in net income, net of income taxes of ($2), ($4), ($6) and ($10), respectively | (5) | (9) | (11) | (17) |
Net unrealized securities gains arising during the periods, net of income taxes of $33, $39, $36 and $131, respectively | 56 | 64 | 61 | 218 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $6, $2, ($1) and ($13), respectively | 10 | 4 | (2) | (21) |
Reclassification of net securities losses (gains) to net income, net of income taxes of $0, $1, ($1) and ($2), respectively | 1 | 2 | (1) | (3) |
Employee Benefit Plans: Amortization of actuarial loss, net of income taxes of $2, $1, $4 and $3, respectively | 2 | 3 | 5 | 5 |
Total other comprehensive income, net of income taxes | 90 | 77 | 75 | 228 |
Total comprehensive income | $ 408 | $ 320 | $ 713 | $ 694 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument gains arising during the periods, tax | $ 16 | $ 8 | $ 14 | $ 29 |
Reclassification adjustment for net derivative gains included in net income, tax | (2) | (4) | (6) | (10) |
Net unrealized securities available for sale gains arising during the periods, tax | 33 | 39 | 36 | 131 |
Other-than-temporary impairment not recognized in earnings on securities, tax | 6 | 2 | (1) | (13) |
Reclassification of net securities losses (gains) to net income, tax | 0 | 1 | (1) | (2) |
Amortization of actuarial loss, tax | $ 2 | $ 1 | $ 4 | $ 3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ 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, 2015 | 0 | 528,000,000 | |||||
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) | |||||
Dividends to preferred stockholders | (7) | (7) | |||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 5 | 5 | 0 | ||||
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 | 529,000,000 | |||||
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: | |||||||
Net income | 243 | ||||||
Other comprehensive income | 77 | ||||||
Total comprehensive income | 320 | ||||||
Ending balance (in shares) at Jun. 30, 2016 | 0 | 529,000,000 | |||||
Ending balance at Jun. 30, 2016 | 20,226 | $ 247 | $ 6 | 18,735 | 2,255 | (858) | (159) |
Beginning balance (in shares) at Dec. 31, 2016 | 0 | 512,000,000 | |||||
Beginning balance at Dec. 31, 2016 | 19,747 | $ 247 | $ 6 | 18,722 | 2,703 | (1,263) | (668) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (143) | (143) | |||||
Dividends to preferred stockholders | $ (7) | (7) | |||||
Treasury stock purchased (in shares) | (7,127,809) | (7,000,000) | |||||
Treasury stock purchased | $ (260) | 25 | (285) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 8 | 8 | 0 | ||||
Employee stock purchase plan shares purchased | 6 | 6 | |||||
Total comprehensive income: | |||||||
Net income | 638 | 638 | |||||
Other comprehensive income | 75 | 75 | |||||
Total comprehensive income | 713 | 638 | 75 | ||||
Ending balance (in shares) at Jun. 30, 2017 | 0 | 506,000,000 | |||||
Ending balance at Jun. 30, 2017 | 20,064 | $ 247 | $ 6 | 18,761 | 3,191 | (1,548) | (593) |
Beginning balance at Mar. 31, 2017 | (683) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury stock purchased | (130) | ||||||
Total comprehensive income: | |||||||
Net income | 318 | ||||||
Other comprehensive income | 90 | ||||||
Total comprehensive income | 408 | ||||||
Ending balance (in shares) at Jun. 30, 2017 | 0 | 506,000,000 | |||||
Ending balance at Jun. 30, 2017 | $ 20,064 | $ 247 | $ 6 | $ 18,761 | $ 3,191 | $ (1,548) | $ (593) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
OPERATING ACTIVITIES | |||
Net income | $ 638 | $ 466 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 166 | 181 | |
Originations of mortgage loans held for sale | (1,394) | (1,135) | |
Proceeds from sales of mortgage loans held for sale | 1,544 | 1,022 | |
Purchases of commercial loans held for sale | (1,001) | (735) | |
Proceeds from sales of commercial loans held for sale | 946 | 739 | |
Amortization of terminated cash flow hedges, net | 1 | 16 | |
Depreciation, amortization and accretion | 257 | 245 | |
Mortgage servicing rights valuation (recovery) charge-off | (1) | 4 | |
Securities impairment | 5 | 8 | |
Deferred income taxes | (20) | 94 | |
Share-based compensation | 27 | 11 | |
Net gain on sales of: | |||
Debt securities | (7) | (13) | |
Other investment securities | (1) | 0 | |
Premises and equipment | 0 | (2) | |
Decrease (increase) in other assets | 32 | (450) | |
(Decrease) increase in other liabilities | (655) | 253 | |
Net cash provided by operating activities | 537 | 704 | |
Investment securities: | |||
Purchases of securities available for sale | (2,282) | (2,355) | |
Proceeds from maturities and paydowns of securities available for sale | 1,670 | 1,611 | |
Proceeds from sales of securities available for sale | 407 | 375 | |
Purchases of securities held to maturity | (171) | 0 | |
Proceeds from maturities and paydowns of securities held to maturity | 277 | 290 | |
Purchases of other investment securities, at fair value | (174) | (114) | |
Proceeds from sales of other investment securities, at fair value | 172 | 109 | |
Purchases of other investment securities, at cost | (243) | (62) | |
Proceeds from sales of other investment securities, at cost | 409 | 52 | |
Net decrease (increase) in interest-bearing deposits in banks | 6 | (371) | |
Net increase in loans and leases | (1,785) | (5,045) | |
Net increase in bank-owned life insurance | (24) | (23) | |
Premises and equipment: | |||
Purchases | (64) | (22) | |
Proceeds from sales | 0 | 3 | |
Capitalization of software | (83) | (85) | |
Net cash used in investing activities | (1,885) | (5,637) | |
FINANCING ACTIVITIES | |||
Net increase in deposits | 3,809 | 3,718 | |
Net decrease in federal funds purchased and securities sold under agreements to repurchase | (719) | (85) | |
Net decrease in other short-term borrowed funds | (1,208) | (1,370) | |
Proceeds from issuance of long-term borrowed funds | 10,109 | 6,995 | |
Repayments of long-term borrowed funds | (9,751) | (3,631) | |
Treasury stock purchased | (260) | 0 | |
Dividends declared and paid to common stockholders | (143) | (117) | |
Dividends declared and paid to preferred stockholders | (7) | (7) | |
Payments of employee tax withholding for share-based compensation | (19) | 0 | |
Net cash provided by financing activities | 1,811 | 5,503 | |
Increase in cash and cash equivalents | [1] | 463 | 570 |
Cash and cash equivalents at beginning of period | [1] | 3,704 | 3,085 |
Cash and cash equivalents at end of period | [1] | $ 4,167 | $ 3,655 |
[1] | Cash and cash equivalents includes cash and due from banks and interest-bearing cash and due from banks as reflected on the Consolidated Balance Sheets. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2016. 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 the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. 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. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. Certain prior period noninterest income amounts reported in the Consolidated Statement of Operations have been reclassified to conform to the current period presentation and student loans were renamed “education” loans to more closely align with the full range of services offered to borrowers, from loan origination to refinancing. These changes had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. Adopted Accounting Pronouncements In January 2017, the Company adopted ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting” on a prospective basis. The ASU requires that all excess tax benefits and tax deficiencies that pertain to employee stock-based incentive payments be recognized within income tax expense in the Consolidated Statements of Operations, rather than within APIC. Adoption of this guidance did not have a material impact on the Company’s unaudited interim Consolidated Financial Statements. Accounting Pronouncements Pending Adoption In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting.” The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Modification accounting is required unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the modification. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Sub-topic 310-20) – Premium Amortization on Purchased Callable Debt Securities.” The ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The ASU is effective for the Company beginning on January 1, 2019. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU improves the presentation of net periodic pension cost and net periodic postretirement benefit cost (collectively, “net periodic cost”) by disaggregating the service cost component from the other components of net periodic cost, limiting the capitalizable amount to the total service cost, and clarifying in the disclosures which line items in the income statement include the components of net periodic cost. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test under current GAAP. Under the amendments, the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount. Any resulting impairment charge will be based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective for the Company beginning on January 1, 2020. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. 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 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 using a current expected credit losses model 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 debt 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 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. The Company is currently identifying key interpretive issues, and is comparing existing credit loss forecasting models and processes with the new guidance to determine what modifications may be required. While the Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements, the Company expects the ASU will result in an earlier recognition of credit losses and an increase in the allowance for credit losses. The magnitude of the increase in the Company’s allowance for loan losses at the adoption date will be dependent upon the nature of the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. 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 requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements. The ASU is effective for the Company beginning on January 1, 2019, using a modified retrospective approach wherein the guidance is applied to all periods presented. The Company has begun its implementation efforts and is currently evaluating the potential impact on the Consolidated Financial Statements of its existing lease contracts. The Company expects an increase of its Consolidated Balance Sheets as a result of recognizing lease liabilities and right of use assets; the extent of such increase is under evaluation. The Company does not expect material changes to the recognition of operating lease expense in its Consolidated Statements of Operations. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The ASU requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. The ASU also requires new qualitative and quantitative disclosures, including information about disaggregation of revenue and performance obligations. The Company’s revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the ASU, and noninterest income. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related accounting policies. Based on this effort, the Company has not identified material changes to the timing or amount of revenue recognition. The Company is in the process of evaluating the impact upon adoption of the ASU to existing disclosures. The Company will adopt the revenue recognition guidance in the first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. Acquisition In May 2017, Citizens Capital Markets, Inc., a wholly owned subsidiary of the Company, acquired Western Reserve Partners, LLC, a Cleveland-based merger and acquisition advisory firm. The acquisition resulted in an increase to goodwill of $11 million as of June 30, 2017. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table presents the major components of securities at amortized cost and fair value: June 30, 2017 December 31, 2016 (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 $12 $— $— $12 $30 $— $— $30 State and political subdivisions 7 — — 7 8 — — 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 19,001 79 (203 ) 18,877 19,231 78 (264 ) 19,045 Other/non-agency 363 7 (9 ) 361 427 2 (28 ) 401 Total mortgage-backed securities 19,364 86 (212 ) 19,238 19,658 80 (292 ) 19,446 Total debt securities available for sale 19,383 86 (212 ) 19,257 19,696 80 (292 ) 19,484 Marketable equity securities — — — — 5 — — 5 Other equity securities — — — — 12 — — 12 Total equity securities available for sale — — — — 17 — — 17 Total securities available for sale $19,383 $86 ($212 ) $19,257 $19,713 $80 ($292 ) $19,501 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,080 $20 ($28 ) $4,072 $4,126 $12 ($44 ) $4,094 Other/non-agency 887 27 — 914 945 19 — 964 Total securities held to maturity $4,967 $47 ($28 ) $4,986 $5,071 $31 ($44 ) $5,058 Other Investment Securities, at Fair Value Money market mutual fund $92 $— $— $92 $91 $— $— $91 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $97 $— $— $97 $96 $— $— $96 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $463 $— $— $463 Federal Home Loan Bank stock 324 — — 324 479 — — 479 Other equity securities 7 — — 7 — — — — Total other investment securities, at cost $794 $— $— $794 $942 $— $— $942 The following tables present 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, 2017 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 — $— $— — $— $— — $— $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 301 13,613 (219 ) 24 423 (12 ) 325 14,036 (231 ) Other/non-agency — — — 12 154 (9 ) 12 154 (9 ) Total mortgage-backed securities 301 13,613 (219 ) 36 577 (21 ) 337 14,190 (240 ) Total 301 $13,613 ($219 ) 36 $577 ($21 ) 337 $14,190 ($240 ) December 31, 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 State and political subdivisions 1 $8 $— — $— $— 1 $8 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 323 15,387 (292 ) 25 461 (16 ) 348 15,848 (308 ) Other/non-agency 4 8 — 20 302 (28 ) 24 310 (28 ) Total mortgage-backed securities 327 15,395 (292 ) 45 763 (44 ) 372 16,158 (336 ) Total 328 $15,403 ($292 ) 45 $763 ($44 ) 373 $16,166 ($336 ) 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, or if it is more likely than not it will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. 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 the type of investment, various market factors affecting the fair value of the security (e.g., interest rates, spread levels, liquidity in the sector, etc.), the length and severity of impairment, and 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 to determine whether security impairments are other-than-temporary. 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) 2017 2016 2017 2016 Cumulative balance at beginning of period $75 $66 $75 $66 Credit impairments recognized in earnings on securities that have been previously impaired 4 7 5 8 Reductions due to increases in cash flow expectations on impaired securities (1) — — (1 ) (1 ) Cumulative balance at end of period $79 $73 $79 $73 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of June 30, 2017 and 2016 were $79 million and $73 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of June 30, 2017 and 2016 . For the three months ended June 30, 2017 and 2016 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $4 million and $7 million , respectively. The three months ended June 30, 2016 included a $5 million loss for a one-time adjustment from a new model implementation in the period. 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, 2017 and 2016 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $5 million and $8 million , respectively. Other-than temporary impairment losses for the six months ended June 30, 2016 included the impact of the new model implementation discussed above. There were no credit impaired debt securities sold during the three and six months ended June 30, 2017 and 2016 . The Company does not currently have the intent to sell these debt securities, and it is not more likely than not 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 June 30, 2017. The unrealized losses on these debt securities reflect non-credit-related factors such as changing interest rates and market liquidity. 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 more likely than not 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. The amortized cost and fair value of debt securities by contractual maturity are presented 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, 2017 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 $12 $— $— $— $12 State and political subdivisions — — — 7 7 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 173 1,109 17,718 19,001 Other/non-agency — 26 2 335 363 Total debt securities available for sale 13 199 1,111 18,060 19,383 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,080 4,080 Other/non-agency — — — 887 887 Total debt securities held to maturity — — — 4,967 4,967 Total amortized cost of debt securities $13 $199 $1,111 $23,027 $24,350 Fair Value: Debt securities available for sale U.S. Treasury and other $12 $— $— $— $12 State and political subdivisions — — — 7 7 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 173 1,125 17,578 18,877 Other/non-agency — 27 2 332 361 Total debt securities available for sale 13 200 1,127 17,917 19,257 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,072 4,072 Other/non-agency — — — 914 914 Total debt securities held to maturity — — — 4,986 4,986 Total fair value of debt securities $13 $200 $1,127 $22,903 $24,243 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $154 million and $141 million for the three months ended June 30, 2017 and 2016 , respectively, and was $314 million and $286 million for the six months ended June 30, 2017 and 2016 , respectively. Realized gains and losses on securities are presented below: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Gains on sale of debt securities $3 $4 $7 $13 Losses on sale of debt securities — — — — Debt securities gains, net $3 $4 $7 $13 Equity securities gains $1 $— $1 $— The amortized cost and fair value of securities pledged are presented below: June 30, 2017 December 31, 2016 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $432 $430 $631 $620 Pledged against FHLB borrowed funds 894 921 953 972 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 4,052 4,022 3,575 3,563 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 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 Consolidated Balance Sheets. When permitted by GAAP, the Company offsets short-term receivables associated with its reverse repurchase agreements against short-term payables associated with its repurchase agreements. The Company recognized no offsetting of short-term receivables or payables as of June 30, 2017 or December 31, 2016. The Company offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 10 “Derivatives.” There were $22 million and $44 million in securitizations of mortgage loans retained in the investment portfolio for the three and six months ended June 30, 2017 and $5 million for the three and six months ended June 30, 2016. In both 2017 and 2016, the guarantors were Fannie Mae and Ginnie Mae and included a substantive guarantee by a third party. 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, 2017 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES The Company’s loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, education, credit cards and other retail. The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others, which the Company now services a portion of internally. A summary of the loans and leases portfolio is presented below: (in millions) June 30, 2017 December 31, 2016 Commercial $37,329 $37,274 Commercial real estate 11,213 10,624 Leases 3,346 3,753 Total commercial 51,888 51,651 Residential mortgages 16,082 15,115 Home equity loans 1,606 1,858 Home equity lines of credit 13,696 14,100 Home equity loans serviced by others 647 750 Home equity lines of credit serviced by others 182 219 Automobile 13,449 13,938 Education (1) 7,720 6,610 Credit cards 1,711 1,691 Other retail 2,065 1,737 Total retail 57,158 56,018 Total loans and leases (2) (3) $109,046 $107,669 (1) During first quarter 2017, student loans were renamed “education” loans. Refer to Note 1 “Basis of Presentation” for more information. (2) Excluded from the table above are loans held for sale totaling $707 million and $625 million as of June 30, 2017 and December 31, 2016 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.3 billion at June 30, 2017 and December 31, 2016 , respectively. During the three months ended June 30, 2017 , the Company purchased approximately $407 million of education loans and $30 million of automobile loans. During the three months ended June 30, 2016 , the Company purchased $348 million of education loans, $200 million of automobile loans and $63 million of residential mortgages. During the six months ended June 30, 2017 , the Company purchased approximately $732 million of education loans and $153 million of automobile loans. During the six months ended June 30, 2016 , the Company purchased $717 million of education loans, $334 million of automobile loans and $183 million of residential mortgages. During the three months ended June 30, 2017 , the Company sold $206 million of residential mortgage loans and $596 million of commercial loans. 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 six months ended June 30, 2017 , the Company sold $206 million of residential mortgage loans and $596 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. Loans held for sale at fair value as of June 30, 2017 totaled $520 million and consisted of residential mortgages originated for sale of $386 million and loans in the commercial trading portfolio of $134 million . Loans held for sale at fair value as of December 31, 2016 totaled $583 million and consisted of residential mortgages originated for sale of $504 million and loans in the commercial trading portfolio of $79 million . Other loans held for sale totaled $187 million and $42 million as of June 30, 2017 and December 31, 2016 , respectively, and consisted of commercial loan syndications. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages loans, totaled $24.3 billion and $24.0 billion at June 30, 2017 and December 31, 2016 , respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, totaled $17.4 billion and $16.8 billion at June 30, 2017 and December 31, 2016 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 , for a detailed discussion of the ALLL reserve methodology 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. A summary of changes in the allowance for credit losses is presented below: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $653 $571 $1,224 $663 $573 $1,236 Charge-offs (24 ) (104 ) (128 ) (48 ) (213 ) (261 ) Recoveries 10 43 53 15 84 99 Net charge-offs (14 ) (61 ) (75 ) (33 ) (129 ) (162 ) Provision (credited) charged to income (25 ) 95 70 (16 ) 161 145 Allowance for loan and lease losses, end of period 614 605 1,219 614 605 1,219 Reserve for unfunded lending commitments, beginning of period 93 — 93 72 — 72 Provision for unfunded lending commitments — — — 21 — 21 Reserve for unfunded lending commitments as of period end 93 — 93 93 — 93 Total allowance for credit losses as of period end $707 $605 $1,312 $707 $605 $1,312 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 Provision 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 The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: June 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $491 $804 $1,295 $424 $799 $1,223 Formula-based evaluation 51,397 56,354 107,751 51,227 55,219 106,446 Total $51,888 $57,158 $109,046 $51,651 $56,018 $107,669 A summary of the allowance for credit losses by evaluation method is presented below: June 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $42 $43 $85 $63 $43 $106 Formula-based evaluation 665 562 1,227 672 530 1,202 Allowance for credit losses $707 $605 $1,312 $735 $573 $1,308 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 or potential weakness that indicate an increased probability of future loss. “Criticized” loans are grouped into three categories, “special mention,” “substandard” and “doubtful.” Special mention loans have potential weaknesses that, if left uncorrected, may result in deterioration of the Company’s credit position at some future date. Substandard loans are inadequately protected loans; these loans have well-defined weaknesses that could hinder normal repayment or collection of the debt. Doubtful loans have the same weaknesses as substandard, with the added characteristics that the possibility of loss is high and collection of the full amount of the loan is improbable. 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 commercial loans and leases based on regulatory classification ratings is presented below: June 30, 2017 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,259 $1,169 $622 $279 $37,329 Commercial real estate 10,678 444 53 38 11,213 Leases 3,215 107 24 — 3,346 Total $49,152 $1,720 $699 $317 $51,888 December 31, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,010 $1,015 $1,027 $222 $37,274 Commercial real estate 10,146 370 58 50 10,624 Leases 3,583 52 103 15 3,753 Total $48,739 $1,437 $1,188 $287 $51,651 The recorded investment in classes of retail loans, categorized by delinquency status is presented below: June 30, 2017 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $15,820 $99 $35 $10 $118 $16,082 Home equity loans 1,430 96 12 5 63 1,606 Home equity lines of credit 13,071 366 52 22 185 13,696 Home equity loans serviced by others 582 35 9 5 16 647 Home equity lines of credit serviced by others 135 22 3 1 21 182 Automobile 12,199 991 172 42 45 13,449 Education 7,537 117 18 10 38 7,720 Credit cards 1,636 43 10 7 15 1,711 Other retail 1,982 55 13 8 7 2,065 Total $54,392 $1,824 $324 $110 $508 $57,158 December 31, 2016 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $14,807 $108 $53 $12 $135 $15,115 Home equity loans 1,628 127 23 7 73 1,858 Home equity lines of credit 13,432 396 57 20 195 14,100 Home equity loans serviced by others 673 41 14 5 17 750 Home equity lines of credit serviced by others 158 25 3 2 31 219 Automobile 12,509 1,177 172 38 42 13,938 Education 6,379 151 24 13 43 6,610 Credit cards 1,611 43 12 9 16 1,691 Other retail 1,676 45 8 4 4 1,737 Total $52,873 $2,113 $366 $110 $556 $56,018 Nonperforming Assets The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming Accruing and 90 days or more past due (in millions) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Commercial $376 $322 $4 $2 Commercial real estate 38 50 — — Leases — 15 — — Total commercial 414 387 4 2 Residential mortgages (1) 135 144 12 18 Home equity loans 81 98 — — Home equity lines of credit 235 243 — — Home equity loans serviced by others 27 32 — — Home equity lines of credit serviced by others 25 33 — — Automobile 55 50 — — Education 35 38 3 5 Credit card 15 16 — — Other retail 3 4 5 1 Total retail 611 658 20 24 Total $1,025 $1,045 $24 $26 (1) Nonperforming balances exclude first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration. These loans, which are accruing and 90 days or more past due, totaled $12 million and $18 million as of June 30, 2017 and December 31, 2016 , respectively. Nonperforming balances also exclude guaranteed residential mortgage loans sold to GNMA for which the Company has the right, but not the obligation, to repurchase. These loans totaled $28 million and $32 million as of June 30, 2017 and December 31, 2016 , respectively. These loans are consolidated on the Company’s Consolidated Balance Sheets. Other nonperforming assets consist primarily of other real estate owned and are presented in other assets on the Consolidated Balance Sheets. A summary of other nonperforming assets is presented below: (in millions) June 30, 2017 December 31, 2016 Nonperforming assets, net of valuation allowance: Commercial $— $— Retail 37 49 Nonperforming assets, net of valuation allowance $37 $49 A summary of key performance indicators is presented below: June 30, 2017 December 31, 2016 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.38 % 0.36 % Nonperforming retail loans as a percentage of total loans and leases 0.56 0.61 Total nonperforming loans and leases as a percentage of total loans and leases 0.94 % 0.97 % Nonperforming commercial assets as a percentage of total assets 0.26 % 0.26 % Nonperforming retail assets as a percentage of total assets 0.44 0.47 Total nonperforming assets as a percentage of total assets 0.70 % 0.73 % The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings are in process was $173 million and $177 million as of June 30, 2017 and December 31, 2016 , respectively. An analysis of the age of both accruing and nonaccruing loan and lease past due amounts is presented below: June 30, 2017 December 31, 2016 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $9 $6 $380 $395 $36 $4 $324 $364 Commercial real estate 3 5 38 46 1 2 50 53 Leases — — — — 1 — 15 16 Total commercial 12 11 418 441 38 6 389 433 Residential mortgages 35 10 118 163 53 12 135 200 Home equity loans 12 5 63 80 23 7 73 103 Home equity lines of credit 52 22 185 259 57 20 195 272 Home equity loans serviced by others 9 5 16 30 14 5 17 36 Home equity lines of credit serviced by others 3 1 21 25 3 2 31 36 Automobile 172 42 45 259 172 38 42 252 Education 18 10 38 66 24 13 43 80 Credit cards 10 7 15 32 12 9 16 37 Other retail 13 8 7 28 8 4 4 16 Total retail 324 110 508 942 366 110 556 1,032 Total $336 $121 $926 $1,383 $404 $116 $945 $1,465 Impaired loans include nonaccruing larger balance commercial loans (greater than $3 million carrying value) and commercial and retail TDRs (excluding loans held for sale). A summary of impaired loans by class is presented below: June 30, 2017 (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 $31 $237 $527 $453 Commercial real estate 35 11 3 39 38 Total commercial 251 42 240 566 491 Residential mortgages 46 3 142 247 188 Home equity loans 49 5 91 187 140 Home equity lines of credit 24 2 186 259 210 Home equity loans serviced by others 37 3 17 64 54 Home equity lines of credit serviced by others 4 — 5 13 9 Automobile 4 — 18 27 22 Education 146 22 — 146 146 Credit cards 25 7 — 26 25 Other retail 9 1 1 12 10 Total retail 344 43 460 981 804 Total $595 $85 $700 $1,547 $1,295 December 31, 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 $247 $55 $134 $431 $381 Commercial real estate 39 8 4 44 43 Total commercial 286 63 138 475 424 Residential mortgages 37 2 141 235 178 Home equity loans 51 3 94 191 145 Home equity lines of credit 23 1 173 240 196 Home equity loans serviced by others 41 4 19 70 60 Home equity lines of credit serviced by others 2 — 7 13 9 Automobile 4 — 15 25 19 Education 154 25 1 155 155 Credit cards 26 6 — 26 26 Other retail 10 2 1 13 11 Total retail 348 43 451 968 799 Total $634 $106 $589 $1,443 $1,223 Additional information on impaired loans is presented below: Three Months Ended June 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $431 $2 $324 Commercial real estate — 38 — 58 Total commercial 1 469 2 382 Residential mortgages 2 182 1 160 Home equity loans 1 141 1 158 Home equity lines of credit 1 203 2 184 Home equity loans serviced by others 1 54 1 66 Home equity lines of credit serviced by others — 9 — 10 Automobile — 20 — 15 Education 2 146 2 161 Credit cards 1 25 1 26 Other retail — 10 — 13 Total retail 8 790 8 793 Total $9 $1,259 $10 $1,175 Six Months Ended June 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $414 $3 $248 Commercial real estate — 41 — 61 Total commercial 2 455 3 309 Residential mortgages 3 178 2 156 Home equity loans 3 140 3 154 Home equity lines of credit 3 197 3 182 Home equity loans serviced by others 2 54 2 67 Home equity lines of credit serviced by others — 9 — 9 Automobile — 18 — 14 Education 4 146 4 160 Credit cards 1 24 1 26 Other retail — 10 — 13 Total retail 16 776 15 781 Total $18 $1,231 $18 $1,090 Troubled Debt Restructurings In situations where, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession for other than an insignificant time period to the borrower that it would not otherwise consider, the related loan is classified as a TDR. 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, 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 less costs to sell, to the loan’s recorded investment. Any excess of recorded investment over the present value of expected future cash flows or collateral value is included in the ALLL. 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. For Retail TDR accounts where the expected value of cash flows is utilized, any recorded investment in excess of the present value of expected cash flows is recognized by creating or increasing the ALLL. For Retail TDR accounts assessed based on the fair value of collateral, any portion of the loan’s recorded investment in excess of the collateral value is charged off at the time of modification or at the time of subsequent and regularly recurring valuations. Commercial TDRs were $136 million and $120 million at June 30, 2017 and December 31, 2016 , respectively. Retail TDRs totaled $804 million and $799 million at June 30, 2017 and December 31, 2016 , respectively. Unfunded commitments tied to TDRs were $45 million and $42 million at June 30, 2017 and December 31, 2016 , respectively. The table below summarizes how loans were modified during the three months ended June 30, 2017 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during the three months ended June 30, 2017 and were paid off in full, charged off, or sold prior to June 30, 2017 . 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 2 $— $— 11 $13 $13 Commercial real estate — — — — — — Leases — — — — — — Total commercial 2 — — 11 13 13 Residential mortgages 25 4 3 25 5 5 Home equity loans 22 1 2 — — — Home equity lines of credit 14 — — 67 9 9 Home equity loans serviced by others 5 — — — — — Home equity lines of credit serviced by others 2 — — — — — Automobile 25 — — 7 — — Education — — — — — — Credit cards 624 4 4 — — — Other retail — — — — — — Total retail 717 9 9 99 14 14 Total 719 $9 $9 110 $27 $27 Primary Modification Types Other (3) (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 $32 $31 $1 $— Commercial real estate — — — — — Leases — — — — — Total commercial 4 32 31 1 — Residential mortgages 44 6 6 — — Home equity loans 42 2 2 — — Home equity lines of credit 112 8 7 — — Home equity loans serviced by others 16 — — — — Home equity lines of credit serviced by others 2 — — — — Automobile 349 6 6 — 1 Education 7 1 1 1 — Credit cards — — — 1 — Other retail 2 — — (1 ) — Total retail 574 23 22 1 1 Total 578 $55 $53 $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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 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 can include loans that became TDRs during the three months ended June 30, 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 — — — — — — Leases — — — — — — 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 — — — — — Home equity lines of credit serviced by others 2 — — 3 1 1 Automobile 30 — — 3 — — Education — — — — — — 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 (3) (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 — — — — — Leases — — — — — 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 16 — — — — Home equity lines of credit serviced by others 5 1 — — — Automobile 348 7 6 — 1 Education 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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 how loans were modified during the six months ended June 30, 2017 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during the six months ended June 30, 2017 and were paid off in full, charged off, or sold prior to June 30, 2017 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 4 $1 $1 18 $14 $14 Commercial real estate — — — — — — Leases — — — — — — Total commercial 4 1 1 18 14 14 Residential mortgages 43 5 5 36 8 8 Home equity loans 43 2 3 1 — — Home equity lines of credit 30 1 1 118 15 15 Home equity loans serviced by others 11 1 1 — — — Home equity lines of credit serviced by others 3 — — 2 — — Automobile 65 1 1 15 — — Education — — — — — — Credit cards 1,189 7 7 — — — Other retail 1 — — — — — Total retail 1,385 17 18 172 23 23 Total 1,389 $18 $19 190 $37 $37 Primary Modification Types Other (3) (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 $32 $31 $1 $— Commercial real estate — — — — — Leases 1 4 4 — — Total commercial 5 36 35 1 — Residential mortgages 92 10 10 — — Home equity loans 144 8 8 — — Home equity lines of credit 187 14 13 — — Home equity loans serviced by others 30 1 1 — — Home equity lines of credit serviced by others 13 1 1 — — Automobile 625 11 10 — 2 Education 22 2 2 1 — Credit cards — — — 2 — Other retail 3 — — (1 ) — Total retail 1,116 47 45 2 2 Total 1,121 $83 $80 $3 $2 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 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 can include loans that became TDRs during the six months ended June 30, 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 — — — — — — Leases — — — — — — 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 6 — — — — — Home equity lines of credit serviced by others 2 — — 4 1 1 Automobile 51 1 1 8 — — Education — — — — — — 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 (3) (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 — — — — — Leases — — — — — 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 34 1 1 — — Home equity lines of credit serviced by others 13 1 — — — Automobile 539 10 9 — 1 Education 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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 and six months ended June 30, 2017 and 2016 , respectively, within 12 months of their modification date. For purposes of this table, a payment default refers to a loan that becomes 90 days or more past due 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, 2017 and 2016 , respectively. 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, Six Months Ended June 30, 2017 2016 2017 2016 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 4 $1 8 $3 5 $1 11 $3 Commercial real estate — — 1 — 1 4 1 — Total commercial 4 1 9 3 6 5 12 3 Residential mortgages 41 4 35 4 86 10 89 12 Home equity loans 14 1 32 2 23 1 50 3 Home equity lines of credit 65 4 20 1 100 7 45 4 Home equity loans serviced by others 9 — 11 — 10 — 21 1 Home equity lines of credit serviced by others 1 — 6 — 4 — 11 — Automobile 27 1 22 1 61 1 37 1 Education 9 — 18 1 16 — 31 1 Credit cards 102 1 85 — 228 2 206 1 Other retail — — — — 2 — — — Total retail 268 11 229 9 530 21 490 23 Total 272 $12 238 $12 536 $26 502 $26 Concentrations of Credit Risk Most of the Company’s lending 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, 2017 and December 31, 2016 , the Company had a significant amount of loans collateralized by residential and commercial real estate. There were no significant concentration risks 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 tables present balances of loans with these characteristics: June 30, 2017 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $484 $370 $366 $— $— $1,220 Interest only/negative amortization 1,705 — — — 1 1,706 Low introductory rate — — — 142 — 142 Multiple characteristics and other 3 — — — — 3 Total $2,192 $370 $366 $142 $1 $3,071 December 31, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $566 $550 $476 $— $— $1,592 Interest only/negative amortization 1,582 — — — 1 1,583 Low introductory rate — — — 112 — 112 Multiple characteristics and other 3 — — — — 3 Total $2,151 $550 $476 $112 $1 $3,290 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2017 | |
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. 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. The Company’s maximum exposure to loss as a result of its involvement with these entities is limited to the balance sheet carrying amounts of its equity investments. A summary of these investments is presented below: (in millions) June 30, 2017 December 31, 2016 LIHTC investment included in other assets $865 $793 LIHTC unfunded commitments included in other liabilities 484 428 Renewable energy investments included in other assets 266 220 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. LIHTC partnerships are managed by unrelated 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 Company applies a practical expedient and amortizes the initial cost of the investment in proportion to the tax credits received in the current period as compared to the total tax credits 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 tax credits received are reported as a reduction of income tax expense (or increase to income tax benefit) related to these transactions. The following table presents other information related to the Company’s affordable housing tax credit investments: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Tax credits included in income tax expense $22 $14 $43 $29 Amortization expense included in income tax expense 22 16 45 31 Other tax benefits included in income tax expense 8 7 15 13 No LIHTC investment impairment losses were recognized during the three and six months ended June 30, 2017 and 2016 , 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, 2017 | |
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 for 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 $729 million and $543 million for the three months ended June 30, 2017 and 2016 , respectively, and $1.5 billion and $1.0 billion for the six months ended June 30, 2017 and 2016 , respectively. The Company recognized gains on sales of residential mortgages held for sale of $19 million and $16 million for the three months ended June 30, 2017 and 2016 , respectively, and $29 million and $30 million for the six months ended June 30, 2017 and 2016 , respectively. Pursuant to the standard representations and warranties obligations discussed above, the Company was no t obligated to repurchase any residential mortgages for the three months ended June 30, 2017 , but did repurchase $2 million for the three months ended June 30, 2016 . The Company repurchased $1 million and $4 million of residential mortgages for the six months ended June 30, 2017 and 2016 , respectively. Mortgage servicing fees, a component of mortgage banking fees, were $14 million and $13 million for the three months ended June 30, 2017 and 2016 , respectively, and $27 million and $26 million for the six months ended June 30, 2017 and 2016 , respectively. The Company recorded MSR valuation recoveries of $1 million for both the three months ended June 30, 2017 and 2016 and valuation recoveries of $1 million and charge-offs of $4 million for the six months ended June 30, 2017 and 2016 , respectively. MSRs are presented in other assets on the Consolidated Balance Sheets. Changes related to MSRs are presented below: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $169 $168 $173 Amount capitalized 8 5 18 10 Amortization (8 ) (8 ) (16 ) (17 ) Carrying amount before valuation allowance 170 166 170 166 Valuation allowance for servicing assets: Balance as of beginning of period 5 14 5 9 Valuation (recoveries) charge-offs (1 ) (1 ) (1 ) 4 Balance at end of period 4 13 4 13 Net carrying value of MSRs $166 $153 $166 $153 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: June 30, 2017 December 31, 2016 Weighted Weighted (dollars in millions) Average Range Average Range Fair value $184 Min Max $182 Min Max Weighted average life (in years) 5.6 2.4 6.9 5.7 2.6 7.3 Weighted average constant prepayment rate 10.8% 9.4% 19.8% 10.8% 8.8% 22.3% Weighted average discount rate 9.9% 9.1% 12.1% 9.7% 9.1% 12.1% The key economic assumptions used in estimating the fair value of MSRs capitalized during the period are presented below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted average life (in years) 6.2 5.9 6.6 6.0 Weighted average constant prepayment rate 11.1% 11.3% 9.9% 11.1% Weighted average discount rate 9.9% 9.7% 9.9% 9.7% The sensitivity analysis below presents the impact to current fair value of an immediate 50 basis point and 100 basis point 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, with the effect of a variation in a particular assumption on the fair value of the mortgage servicing rights 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 rates, could result in changes in the discount rates), which may 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, 2017 December 31, 2016 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $9 $9 Decline in fair value from a 100 basis point decrease in interest rates $18 $25 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS A summary of the Company’s short-term borrowed funds is presented below: (in millions) June 30, 2017 December 31, 2016 Federal funds purchased $— $533 Securities sold under agreements to repurchase 429 615 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,004 3,211 Total short-term borrowed funds $2,433 $4,359 Key data related to short-term borrowed funds is presented in the following table: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, As of and for the Year Ended December 31, (dollars in millions) 2017 2016 2017 2016 2016 Weighted-average interest rate at period-end: (1) Federal funds purchased and securities sold under agreements to repurchase — % — % — % — % 0.26 % Other short-term borrowed funds (primarily current portion of FHLB advances) 1.31 0.65 1.31 0.65 0.94 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $1,075 $968 $1,174 $1,274 $1,522 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,507 4,764 3,508 4,764 5,461 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $808 $974 $845 $927 $947 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,275 3,743 2,617 3,421 3,207 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 0.36 % 0.08 % 0.28 % 0.07 % 0.09 % Other short-term borrowed funds (primarily current portion of FHLB advances) 1.22 0.61 1.14 0.60 0.64 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. A summary of the Company’s long-term borrowed funds is presented below: (in millions) June 30, 2017 December 31, 2016 Citizens Financial Group, Inc.: 4.150% fixed-rate subordinated debt, due 2022 (1) $347 $347 5.158% fixed-to-floating rate subordinated debt, due 2023, converting to floating at 333 333 3.750% fixed-rate subordinated debt, due 2024 250 250 4.023% fixed-rate subordinated debt, due 2024 42 42 4.350% fixed-rate subordinated debt, due 2025 (2) 249 249 4.300% fixed-rate subordinated debt, due 2025 (3) 749 749 2.375% fixed-rate senior unsecured debt, due 2021 (4) 348 348 Banking Subsidiaries: 2.300% senior unsecured notes, due 2018 (5)(6) 746 745 2.450% senior unsecured notes, due 2019 (5)(7) 748 747 2.500% senior unsecured notes, due 2019 (5)(8) 743 741 2.250% senior unsecured notes, due 2020 (5)(9) 698 — Floating-rate senior unsecured notes, due 2020 (5)(10) 299 — Floating-rate senior unsecured notes, due 2020 (5)(11) 249 — 2.200% senior unsecured notes, due 2020 (5)(12) 498 — 2.550% senior unsecured notes, due 2021 (5)(13) 973 965 Floating-rate senior unsecured notes, due 2022 (5)(14) 249 — 2.650% senior unsecured notes, due 2022 (5)(15) 497 — Federal Home Loan advances due through 2033 5,112 7,264 Other 24 10 Total long-term borrowed funds $13,154 $12,790 (1) These balances are composed of: principal balances of $350 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (2) These balances are composed of: principal balances of $250 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (3) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (4) These balances are composed of: principal balance of $350 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (5) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (6) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($3) million at June 30, 2017 and December 31, 2016 ; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (7) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($2) million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. (8) These balances are composed of: principal balance of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($6) million and ($7) million at June 30, 2017 and December 31, 2016 , respectively; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (9) This balance is composed of: principal balance of $700 million at June 30, 2017 ; impact from interest rate swaps of $1 million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 . See Note 10 “Derivatives” for further information. (10) This balance is composed of: principal balance of $300 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (11) These balances are composed of: principal balance of $250 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (12) This balance is composed of: principal balance of $500 million at June 30, 2017 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 . (13) These balances are composed of: principal balance of $1.0 billion at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($23) million and ($30) million at June 30, 2017 and December 31, 2016 , respectively; and ($4) million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (14) This balance is composed of: principal balance of $250 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (15) This balance is composed of: principal balance of $500 million at June 30, 2017 , as well as the impact from interest rate swaps of ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 . 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 $10.0 billion and $13.4 billion at June 30, 2017 and December 31, 2016 , respectively. The Company’s available FHLB borrowing capacity was $6.5 billion and $2.8 billion at June 30, 2017 and December 31, 2016 , respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, such as investment securities and loans, is pledged to provide borrowing capacity at the FRB. At June 30, 2017 , the Company’s unused secured borrowing capacity was approximately $37.5 billion , which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity. A summary of maturities for the Company’s long-term borrowed funds at June 30, 2017 is presented below: (in millions) Parent Company Banking Subsidiaries Consolidated Year 2018 or on demand $— $5,847 $5,847 2019 — 1,491 1,491 2020 — 1,762 1,762 2021 348 977 1,325 2022 347 752 1,099 2023 and thereafter 1,623 7 1,630 Total $2,318 $10,836 $13,154 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016 , respectively. For further detail regarding the terms and conditions of the Company’s preferred stock see Note 13 “Stockholders’ Equity” to the Company’s audited Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2016. Treasury Stock During the six months ended June 30, 2017, as part of its 2016 Capital Plan, the Company repurchased $260 million , or 7,127,809 shares, of its outstanding common stock. Th e repurchased shares are held in treasury stock. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense Income tax expense was $144 million and $118 million for the three months ended June 30, 2017 and 2016 , respectively, resulting in effective tax rates of 31.1% and 32.6% , respectively. Income tax expense was $258 million and $227 million for the six months ended June 30, 2017 and 2016 , respectively, resulting in effective tax rates of 28.8% and 32.7% , respectively. For the six months ended June 30, 2017 , the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of the impact of the settlement of certain state tax matters and the permanent benefits from tax credits and tax-exempt income. The settlement of certain tax matters reduced income tax expense by $23 million for the six months ended June 30, 2017 . F or the six months ended June 30, 2016 , the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of the permanent benefits from tax credits and tax-exempt income. Deferred Tax Liability At June 30, 2017 , the Company reported a net deferred tax liability of $740 million , compared to $714 million as of December 31, 2016 . 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 partially offset by the tax effect of differences in the timing of deductions and income items for financial statement purposes versus taxable income purposes. Unrecognized Tax Benefits As a result of the settlement of certain state tax matters, the total amount of unrecognized tax benefits was reduced from $42 million , as of December 31, 2016, to $7 million , as of June 30, 2017 . |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2017 | |
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 12 “Fair Value Measurements.” At June 30, 2017, the overall derivative asset value decreased $219 million and the liability balance decreased by $500 million from December 31, 2016. These decreases were primarily due to a change in the presentation of variation margin payments in the Consolidated Balance Sheet in 2017. Effective January 3, 2017, the London Clearing House and Chicago Mercantile Exchange amended their respective rules to legally characterize the variation margin payments on centrally cleared derivative contracts as settlement of those derivatives (rather than the posting of collateral). As a result of this change, the Company modified its balance sheet presentation of centrally cleared interest rate swaps, such that the fair value of the swaps and the associated variation margin balances are reported as a single unit of account in derivative assets and/or derivative liabilities. At December 31, 2016, the variation margin balances were characterized as collateral and reported in interest-bearing cash and due from banks on the Consolidated Balance Sheets. The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: June 30, 2017 December 31, 2016 (in millions) Notional Amount (1) Derivative Assets (2) Derivative Liabilities (2) Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $16,800 $4 $3 $13,350 $52 $193 Derivatives not designated as hedging instruments: Interest rate contracts 65,980 337 274 54,656 557 452 Foreign exchange contracts 10,120 132 121 8,039 134 126 Other contracts 1,380 11 5 1,498 16 7 Total derivatives not designated as hedging instruments 480 400 707 585 Gross derivative fair values 484 403 759 778 Less: Gross amounts offset in the Consolidated Balance Sheets (3) (70 ) (70 ) (106 ) (106 ) Less: Cash collateral applied (3) (6 ) (174 ) (26 ) (13 ) Total net derivative fair values presented in the Consolidated Balance Sheets $408 $159 $627 $659 (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 reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. (3) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. 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 activity 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 is 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 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 currencies. 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. Derivatives designated as hedging instruments The Company’s institutional derivatives portfolio qualifies for hedge accounting treatment. 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 treatment 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. The Company has certain derivative transactions that are designated as hedging instruments described as follows: Fair value hedges The Company has entered into interest rate swap agreements to manage the interest rate exposure on its medium-term borrowings. The change in value of fair value hedges, to the extent that the hedging relationship is effective, is recorded through earnings and offset against the change in the fair value of the hedged item. The following table presents the effect of fair value hedges on other income: Amounts Recognized in Other Income for the Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $16 ($15 ) $1 $32 ($31 ) $1 Amounts Recognized in Other Income for the Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $10 ($9 ) $1 $84 ($83 ) $1 Cash flow hedges The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets, and financing liabilities (including its borrowed funds). All of these swaps have been deemed as highly effective cash flow hedges. The effective portion of the hedging gains and losses associated with these hedges are recorded in OCI; the ineffective portion of the hedging gains and losses is recorded in earnings (other income). Hedging gains and losses on derivative contracts reclassified from OCI to current period earnings are included in the line item in the accompanying Consolidated Statements of Operations in which the hedged item is recorded and in the same period that the hedged item affects earnings. During the next 12 months, there are $1 million in pre-tax net gains on derivative instruments included in OCI 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 presents 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) 2017 2016 2017 2016 Effective portion of gain recognized in OCI (1) $42 $21 $37 $75 Amounts reclassified from OCI to interest income (2) 8 21 20 43 Amounts reclassified from OCI to interest expense (2) (1 ) (8 ) (3 ) (16 ) (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 income or 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 designed to meet the hedging and financing needs of the Company’s customers. Mark-to-market adjustments to the fair value of these contracts are included in foreign exchange and interest rate products on the Consolidated Statement of Operations. 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 presents the effect of customer derivatives and economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Customer derivative contracts Customer interest rate contracts (1) $83 ($2 ) $80 $95 Customer foreign exchange contracts (1) 78 (23 ) 96 28 Residential loan commitments (2) (2 ) 3 3 7 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (71 ) 15 (56 ) (76 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (1) (71 ) 23 (85 ) (27 ) Forward sale contracts (2) 5 (5 ) (6 ) (10 ) Total $22 $11 $32 $17 (1) Reported in foreign exchange and interest rate products on the Consolidated Statements of Operations. (2) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES A summary of outstanding off-balance sheet arrangements is presented below: (in millions) June 30, 2017 December 31, 2016 Undrawn commitments to extend credit $61,988 $60,872 Financial standby letters of credit 2,053 1,892 Performance letters of credit 41 40 Commercial letters of credit 66 43 Marketing rights 42 44 Risk participation agreements 22 19 Residential mortgage loans sold with recourse 8 8 Total $64,220 $62,918 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 both June 30, 2017 and December 31, 2016 . 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 $2 million for the six months ended June 30, 2017 , paid $3 million for the year ended December 31, 2016 , and is obligated to pay $42 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 was $22 million at June 30, 2017 and $19 million at December 31, 2016 . The current amount of credit exposure is spread out over 96 counterparties. RPAs generally have terms ranging from one to five years; however, certain outstanding agreements have terms as long as ten years . Residential Loans Sold with Recourse The Company is an originator and servicer of residential mortgages and routinely sells such mortgage loans in the secondary market and to government-sponsored entities. In the context of such sales, the Company makes certain representations and warranties regarding the characteristics of the underlying loans and, as a result, may be contractually required to repurchase such loans or indemnify certain parties against losses for certain breaches of those representations and warranties. Other Commitments In first quarter 2017, the Company entered into an agreement to purchase education loans on a quarterly basis beginning with the first quarter 2017 and ending with the fourth quarter 2017. The total minimum and maximum amount of the aggregate purchase principal balance of loans under the terms of the agreement are $750 million and $1.5 billion , respectively, and the remaining maximum purchase commitment is $750 million . The agreement may be extended by written agreement of the parties for an additional four quarters. The agreement will terminate immediately if at any time during its term the aggregate purchase principal balance of loans equals the maximum amount. The Company may also terminate the agreement at will with payment of a termination fee equal to the product of $1 million times the number of quarters remaining under the agreement. In April 2017, the Company terminated its May 2014 agreement to purchase automobile loans after satisfying its final purchase commitment. 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 balances of unsettled commercial loan trade purchases and sales were $185 million and $203 million , respectively, at June 30, 2017 and $ 127 million and $177 million , respectively, at December 31, 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 12 “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, and based on the Company's experience, 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, the Company and its banking subsidiaries are currently subject to consent orders issued in 2015 by certain of their regulators in connection with past deposit reconciliation and billing practices, under which the applicable regulators have provided non-objections to, among other things, restitution plans for affected customers. All financial penalties associated with these regulatory enforcement matters have been paid, and substantially all remediation related to such legacy matters was resolved as of December 31, 2016. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016, 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 changes in fair value in mortgage banking income of $3 million and $6 million for the three months ended June 30, 2017 and 2016, respectively. The Company recognized changes in fair value in mortgage banking income of $10 million and $12 million for the six months ended June 30, 2017 and 2016, 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 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, 2017 and December 31, 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 11 “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 $1 million in other noninterest income related to its commercial trading portfolio for the three months ended June 30, 2017 and $2 million for the three months ended 2016. The Company recognized $3 million income in other noninterest income related to its commercial trading portfolio for the six months ended June 30, 2017 and $2 million for the six months ended June 30, 2016. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale measured at fair value: June 30, 2017 December 31, 2016 (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 $386 $386 $— $504 $505 ($1 ) Commercial and commercial real estate loans held for sale, at fair value 134 134 — 79 79 — Recurring Fair Value Measurements The Company utilizes a variety of valuation techniques to measure its assets and liabilities at fair value. The valuation methodologies used for significant assets and liabilities carried on the balance sheet at fair value on a recurring basis are presented below: 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 under the market or income approach using pricing models. 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 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 specified pool mortgage “pass-through” securities and other debt securities issued by U.S. government-sponsored entities and state and political subdivisions. The pricing models used to value securities under the income approach generally begin with the contractual cash flows of each security and make adjustments based on forecasted prepayment speeds, default rates, and other market-observable information. The adjusted cash flows are then discounted at a rate derived from observed rates of return for comparable assets or liabilities that are traded in the market. Classes of instruments that are valued using this market approach include residential and commercial CMOs. 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 primarily use 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 Overnight Index Swap 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 that 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. The 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 markets 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, 2017 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,238 $— $19,238 $— State and political subdivisions 7 — 7 — U.S. Treasury and other 12 12 — — Total securities available for sale 19,257 12 19,245 — Loans held for sale, at fair value: Residential loans held for sale 386 — 386 — Commercial loans held for sale 134 — 134 — Total loans held for sale, at fair value 520 — 520 — Derivative assets 1 : Interest rate swaps 341 — 341 — Foreign exchange contracts 132 — 132 — Other contracts 11 — 11 — Total derivative assets 484 — 484 — Other investment securities, at fair value: Money market mutual fund 92 92 — — Other investments 5 — 5 — Total other investment securities, at fair value 97 92 5 — Total assets $20,358 $104 $20,254 $— Derivative liabilities 1 : Interest rate swaps $277 $— $277 $— Foreign exchange contracts 121 — 121 — Other contracts 5 — 5 — Total derivative liabilities 403 — 403 — Total liabilities $403 $— $403 $— (1) Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,446 $— $19,446 $— State and political subdivisions 8 — 8 — Equity securities 17 — 17 — U.S. Treasury 30 30 — — Total securities available for sale 19,501 30 19,471 — Loans held for sale, at fair value: Residential loans held for sale 504 — 504 — Commercial loans held for sale 79 — 79 — Total loans held for sale, at fair value 583 — 583 — Derivative assets: Interest rate swaps 609 — 609 — Foreign exchange contracts 134 — 134 — Other contracts 16 — 16 — Total derivative assets 759 — 759 — Other investment securities, at fair value: Money market mutual fund 91 91 — — Other investments 5 — 5 — Total other investment securities, at fair value 96 91 5 — Total assets $20,939 $121 $20,818 $— Derivative liabilities: Interest rate swaps $645 $— $645 $— Foreign exchange contracts 126 — 126 — Other contracts 7 — 7 — Total derivative liabilities 778 — 778 — Total liabilities $778 $— $778 $— There were no Level 3 assets measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016. 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. The fair value was calculated using a discounted cash flow model which used assumptions, including weighted-average life, weighted-average constant prepayment rate and weighted-average discount rate. 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, 2016 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 cost 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. Leased assets The fair value of assets under operating leases is determined using collateral specific pricing digests, external appraisals, broker opinions, recent sales data from industry equipment dealers, and discounted cash flows derived from the underlying lease agreement. As market data for similar assets and lease agreements is available and used in the valuation, these assets are classified as Level 2 fair value measurement. 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) 2017 2016 2017 2016 Impaired collateral-dependent loans ($8 ) ($6 ) ($27 ) ($11 ) MSRs 1 1 1 (4 ) Foreclosed assets (1 ) (1 ) (2 ) (2 ) Leased assets (15 ) — (15 ) — — The following table presents assets and liabilities measured at fair value on a nonrecurring basis: June 30, 2017 December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $341 $— $341 $— $355 $— $355 $— MSRs 184 — — 184 182 — — 182 Foreclosed assets 33 — 33 — 44 — 44 — Leased assets 137 — 137 — 158 — 158 — 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 values of securities classified as HTM are estimated under the market or income approach using the same pricing models as those used to measure the fair value of the Company’s securities AFS. For more information, see “Recurring Fair Value Measurements - Securities Available for Sale,” within this Note. Other investment securities, at cost The cost basis of other investment securities, at cost, such as FHLB stock and FRB stock, is assumed to approximate the fair value of these 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. The stock may only be sold or redeemed at par, and therefore the cost basis represents the best estimate of fair value. Loans and leases For loans and leases not recorded at fair value on a recurring basis that are not accounted for as collateral-dependent impaired loans, fair value is estimated by using one of two methods: a discounted cash flow method or a securitization method. The discounted cash flow method involves discounting the expected future cash flows using current rates which a market participant would likely use to value similar pools of loans. Inputs used in this method include observable information such as contractual cash flows (net of servicing cost) and unobservable information such as estimated prepayment speeds, credit loss exposures, and discount rates. The securitization method involves utilizing market securitization data to value the assets as if a securitization transaction had been executed. Inputs used include observable market-based MBS data and pricing adjustments based on unobservable data reflecting the liquidity risk, credit loss exposure and other characteristics of the underlying loans. The internal risk-weighted balances of loans are grouped by product type for purposes of these estimated valuations. For nonaccruing loans, fair value is estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets. Fair value of collateral-dependent loans is primarily based on the appraised value of the collateral. Other loans held for sale Balances represent loans that were transferred to other loans held for sale and are reported at the lower of cost or fair value. When applicable, the fair value of other loans held for sale is estimated using one of two methods: a discounted cash flow method or a securitization method (as described above). Deposits The fair value of demand deposits, checking with interest accounts, regular savings, money market accounts and other deposits 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 presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: June 30, 2017 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $4,967 $4,986 $— $— $4,967 $4,986 $— $— Other investment securities, at cost 794 794 — — 794 794 — — Other loans held for sale 187 187 — — — — 187 187 Loans and leases 109,046 109,323 — — 341 341 108,705 108,982 Financial Liabilities: Deposits 113,613 113,582 — — 113,613 113,582 — — Federal funds purchased and securities sold under agreements to repurchase 429 429 — — 429 429 — — Other short-term borrowed funds 2,004 2,004 — — 2,004 2,004 — — Long-term borrowed funds 13,154 13,275 — — 13,154 13,275 — — December 31, 2016 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $5,071 $5,058 $— $— $5,071 $5,058 $— $— Other investment securities, at cost 942 942 — — 942 942 — — Other loans held for sale 42 42 — — — — 42 42 Loans and leases 107,669 107,537 — — 355 355 107,314 107,182 Financial Liabilities: Deposits 109,804 109,796 — — 109,804 109,796 — — Federal funds purchased and securities sold under agreements to repurchase 1,148 1,148 — — 1,148 1,148 — — Other short-term borrowed funds 3,211 3,211 — — 3,211 3,211 — — Long-term borrowed funds 12,790 12,849 — — 12,790 12,849 — — |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS As a bank holding company, 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 U.S. Basel III capital framework, the Company and its banking subsidiaries must meet specific minimum requirements for the following ratios: common equity tier 1 capital, tier 1 capital, total capital, and tier 1 leverage. 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 U.S. Basel III Standardized Transitional rules. Certain Basel III requirements are subject to phase-in through 2019, and were applied to this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses included within AOCI for available for sale securities, accumulated net gains and losses on cash-flow hedges, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities held to maturity. Transitional Basel III FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (6) (dollars in millions) Amount Ratio Amount Ratio (5) Amount Ratio As of June 30, 2017 Common equity tier 1 capital (1) $14,057 11.2 % $7,232 5.750 % $8,175 6.5 % Tier 1 capital (2) 14,304 11.4 9,119 7.250 10,062 8.0 Total capital (3) 17,586 14.0 11,634 9.250 12,577 10.0 Tier 1 leverage (4) 14,304 9.9 5,776 4.000 7,220 5.0 As of December 31, 2016 Common equity tier 1 capital (1) $13,822 11.2 % $6,348 5.125 % $8,051 6.5 % Tier 1 capital (2) 14,069 11.4 8,206 6.625 9,909 8.0 Total capital (3) 17,347 14.0 10,683 8.625 12,386 10.0 Tier 1 leverage (4) 14,069 9.9 5,667 4.000 7,084 5.0 ( 1) “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under U.S. 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 U.S. Basel III Standardized approach. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under U.S. Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under U.S. Basel III Standardized approach. (5) “Minimum Capital ratio” includes capital conservation buffer of 1.250% for 2017 and 0.625% for 2016; N/A to Tier 1 leverage. (6) Presented for informational purposes. Prompt corrective action provisions apply only to the Company’s insured depository institutions - CBNA and CBPA. 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 FRB with no objection. Per the 2016 Capital Plan, which received a non-objection from the FRB, for the three months ended June 30, 2017, the Company paid common dividends of $71 million and repurchased $130 million of its outstanding common shares. For the six months ended June 30, 2017, the Company paid common dividends of $143 million , a semi-annual preferred dividend of $7 million and repurchased $260 million of its outstanding common shares. For the three and six months ended June 30, 2016, the Company paid common dividends of $64 million and $117 million , respectively. The Company also paid a semi-annual preferred dividend of $7 million in the six months ended June 30, 2016. On April 5, 2017, the Company submitted its 2017 Capital Plan to the Federal Reserve under the annual CCAR process. On June 28, 2017, the FRB did not object to the Company’s 2017 Capital Plan or to its proposed capital actions in the period beginning July 1, 2017 and ending June 30, 2018. The Company’s 2017 Capital Plan includes proposed quarterly common dividends of $0.18 per share through the end of 2017 and $0.22 per share in 2018, and also includes a share repurchase plan of up to $850 million through second quarter 2018. The timing and exact amount of future dividends and share repurchases will depend on various factors , including capital position, financial performance and market conditions. 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. A financial subsidiary of a national bank is permitted to engage in a broader range of activities, similar to those of a financial holding company. CBNA has two financial subsidiaries, Citizens Securities, Inc., a registered broker-dealer, and RBS Citizens Insurance Agency, Inc., a dormant entity. On March 13, 2014, the OCC determined that CBNA no longer met the conditions to own a financial subsidiary — namely that CBNA must be both well capitalized and well managed. CBNA has entered into an agreement with the OCC pursuant to which it has developed and submitted to the OCC a remediation plan setting forth the specific actions it will take to bring itself back into compliance with the conditions to own a financial subsidiary. CBNA has completed its undertakings under the plan, which have been validated by the Company’s internal audit team and submitted to the OCC for review and validation. However, until the OCC has completed their validation efforts, 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. |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in the balances, net of income taxes, of each component of AOCI: As of and for the three months ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at 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 June 30, 2016 $39 $166 ($364 ) ($159 ) Balance at April 1, 2017 ($97 ) ($195 ) ($391 ) ($683 ) Other comprehensive income before reclassifications 26 56 — 82 Other-than-temporary impairment not recognized in earnings on securities — 10 — 10 Amounts reclassified from other comprehensive (loss) income (5 ) 1 2 (2 ) Net other comprehensive income 21 67 2 90 Balance at June 30, 2017 ($76 ) ($128 ) ($389 ) ($593 ) As of and for the six months ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at 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 June 30, 2016 $39 $166 ($364 ) ($159 ) Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive income before reclassifications 23 61 — 84 Other-than-temporary impairment not recognized in earnings on securities — (2 ) — (2 ) Amounts reclassified from other comprehensive (loss) income (11 ) (1 ) 5 (7 ) Net other comprehensive income 12 58 5 75 Balance at June 30, 2017 ($76 ) ($128 ) ($389 ) ($593 ) The following table presents 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) 2017 2016 2017 2016 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $8 $21 $20 $43 Interest income (1 ) (8 ) (3 ) (16 ) Interest expense 7 13 17 27 Income before income tax expense 2 4 6 10 Income tax expense $5 $9 $11 $17 Net income Reclassification of net securities gains (losses) to net income (loss): $3 $4 $7 $13 Securities gains, net (4 ) (7 ) (5 ) (8 ) Net securities impairment losses recognized in earnings (1 ) (3 ) 2 5 Income before income tax expense — (1 ) 1 2 Income tax expense ($1 ) ($2 ) $1 $3 Net income Reclassification of changes related to the employee benefit plan: ($4 ) ($4 ) ($9 ) ($8 ) Salaries and employee benefits (4 ) (4 ) (9 ) (8 ) Income before income tax expense (2 ) (1 ) (4 ) (3 ) Income tax expense ($2 ) ($3 ) ($5 ) ($5 ) Net income Total reclassification gains $2 $4 $7 $15 Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Net interest income (includes $7, $13, $17 and $27 of AOCI reclassifications, respectively) $1,026 $923 $2,031 $1,827 Provision for credit losses 70 90 166 181 Noninterest income (includes ($1), ($3), $2 and $5 of AOCI reclassifications, respectively) 370 355 749 685 Noninterest expense (includes $4, $4, $9 and $8 of AOCI reclassifications, respectively) 864 827 1,718 1,638 Income before income tax expense 462 361 896 693 Income tax expense (includes $0, $2, $3 and $9 income tax net expense from reclassification items, respectively) 144 118 258 227 Net income $318 $243 $638 $466 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jun. 30, 2017 | |
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. Reportable Segments Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and statement of operations 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, education loans, credit cards, business loans, and unsecured product finance and personal loans in addition to 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. The Company’s 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 and 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 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 (including legacy Royal Bank of Scotland Group plc aircraft loans and leases placed in runoff in the third quarter of 2016), and other unallocated assets, liabilities, capital, revenues, provision for credit losses and expenses. In addition to non-segment operations, Other includes goodwill and any associated goodwill impairment charges. 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. As of and for the Three Months Ended June 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $657 $344 $25 $1,026 Noninterest income 229 130 11 370 Total revenue 886 474 36 1,396 Noninterest expense 644 192 28 864 Profit before provision for credit losses 242 282 8 532 Provision for credit losses 60 1 9 70 Income (loss) before income tax expense (benefit) 182 281 (1 ) 462 Income tax expense (benefit) 64 94 (14 ) 144 Net income $118 $187 $13 $318 Total average assets $59,244 $49,731 $40,903 $149,878 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 Six Months Ended June 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,295 $690 $46 $2,031 Noninterest income 449 264 36 749 Total revenue 1,744 954 82 2,780 Noninterest expense 1,291 382 45 1,718 Profit before provision for credit losses 453 572 37 1,062 Provision for credit losses 124 20 22 166 Income before income tax expense (benefit) 329 552 15 896 Income tax expense (benefit) 116 185 (43 ) 258 Net income $213 $367 $58 $638 Total average assets $58,954 $49,488 $40,893 $149,335 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 Management accounting practices utilized by the Company as the basis of 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 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. 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 ten percent or more of the Company’s total revenues. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, (in millions, except share and per-share data) 2017 2016 2017 2016 Numerator (basic and diluted): Net income $318 $243 $638 $466 Less: Preferred stock dividends — — 7 7 Net income available to common stockholders $318 $243 $631 $459 Denominator: Weighted-average common shares outstanding - basic 506,371,846 528,968,330 507,903,141 528,519,489 Dilutive common shares: share-based awards 1,042,276 1,396,873 1,458,914 1,877,382 Weighted-average common shares outstanding - diluted 507,414,122 530,365,203 509,362,055 530,396,871 Earnings per common share: Basic $0.63 $0.46 $1.24 $0.87 Diluted 0.63 0.46 1.24 0.87 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. The diluted EPS computation for the three and six months ended June 30, 2017 excluded 530,781 and 343,692 average share-based awards, respectively, because their inclusion would have been antidilutive. The Company did no t have any antidilutive shares for the three and six months ended June 30, 2016 . |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | OTHER INCOME The following table presents the details of other income: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Bank-owned life insurance income $14 $13 $26 $26 Other (8 ) 9 5 17 Other income $6 $22 $31 $43 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 2016 2017 2016 Deposit insurance $36 $29 $68 $55 Promotional expense 29 25 55 49 Settlements and operating losses 12 14 25 22 Other 71 60 126 117 Other operating expense $148 $128 $274 $243 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated the impacts of events that have occurred subsequent to June 30, 2017 through the filing date of the Consolidated Financial Statements 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. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2016. The Company’s principal business activity is banking, conducted through its subsidiaries, Citizens Bank, N.A. and Citizens Bank of Pennsylvania. |
Consolidation | The unaudited interim Consolidated Financial Statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. |
Reclassifications | Certain prior period noninterest income amounts reported in the Consolidated Statement of Operations have been reclassified to conform to the current period presentation and student loans were renamed “education” loans to more closely align with the full range of services offered to borrowers, from loan origination to refinancing. These changes had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. |
Adopted and Pending Accounting Pronouncements | Adopted Accounting Pronouncements In January 2017, the Company adopted ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting” on a prospective basis. The ASU requires that all excess tax benefits and tax deficiencies that pertain to employee stock-based incentive payments be recognized within income tax expense in the Consolidated Statements of Operations, rather than within APIC. Adoption of this guidance did not have a material impact on the Company’s unaudited interim Consolidated Financial Statements. Accounting Pronouncements Pending Adoption In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting.” The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Modification accounting is required unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the modification. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Sub-topic 310-20) – Premium Amortization on Purchased Callable Debt Securities.” The ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The ASU is effective for the Company beginning on January 1, 2019. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU improves the presentation of net periodic pension cost and net periodic postretirement benefit cost (collectively, “net periodic cost”) by disaggregating the service cost component from the other components of net periodic cost, limiting the capitalizable amount to the total service cost, and clarifying in the disclosures which line items in the income statement include the components of net periodic cost. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” The ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test under current GAAP. Under the amendments, the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount. Any resulting impairment charge will be based on the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective for the Company beginning on January 1, 2020. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. 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 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 using a current expected credit losses model 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 debt 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 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. The Company is currently identifying key interpretive issues, and is comparing existing credit loss forecasting models and processes with the new guidance to determine what modifications may be required. While the Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements, the Company expects the ASU will result in an earlier recognition of credit losses and an increase in the allowance for credit losses. The magnitude of the increase in the Company’s allowance for loan losses at the adoption date will be dependent upon the nature of the characteristics of the portfolio at the adoption date, as well as macroeconomic conditions and forecasts at that date. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. 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 requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements. The ASU is effective for the Company beginning on January 1, 2019, using a modified retrospective approach wherein the guidance is applied to all periods presented. The Company has begun its implementation efforts and is currently evaluating the potential impact on the Consolidated Financial Statements of its existing lease contracts. The Company expects an increase of its Consolidated Balance Sheets as a result of recognizing lease liabilities and right of use assets; the extent of such increase is under evaluation. The Company does not expect material changes to the recognition of operating lease expense in its Consolidated Statements of Operations. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The ASU requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. The ASU also requires new qualitative and quantitative disclosures, including information about disaggregation of revenue and performance obligations. The Company’s revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the ASU, and noninterest income. The Company’s implementation efforts include the identification of revenue within the scope of the guidance, as well as the evaluation of revenue contracts and related accounting policies. Based on this effort, the Company has not identified material changes to the timing or amount of revenue recognition. The Company is in the process of evaluating the impact upon adoption of the ASU to existing disclosures. The Company will adopt the revenue recognition guidance in the first quarter of 2018 using the modified retrospective method with a cumulative-effect adjustment to opening retained earnings. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table presents the major components of securities at amortized cost and fair value: June 30, 2017 December 31, 2016 (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 $12 $— $— $12 $30 $— $— $30 State and political subdivisions 7 — — 7 8 — — 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 19,001 79 (203 ) 18,877 19,231 78 (264 ) 19,045 Other/non-agency 363 7 (9 ) 361 427 2 (28 ) 401 Total mortgage-backed securities 19,364 86 (212 ) 19,238 19,658 80 (292 ) 19,446 Total debt securities available for sale 19,383 86 (212 ) 19,257 19,696 80 (292 ) 19,484 Marketable equity securities — — — — 5 — — 5 Other equity securities — — — — 12 — — 12 Total equity securities available for sale — — — — 17 — — 17 Total securities available for sale $19,383 $86 ($212 ) $19,257 $19,713 $80 ($292 ) $19,501 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,080 $20 ($28 ) $4,072 $4,126 $12 ($44 ) $4,094 Other/non-agency 887 27 — 914 945 19 — 964 Total securities held to maturity $4,967 $47 ($28 ) $4,986 $5,071 $31 ($44 ) $5,058 Other Investment Securities, at Fair Value Money market mutual fund $92 $— $— $92 $91 $— $— $91 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $97 $— $— $97 $96 $— $— $96 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $463 $— $— $463 Federal Home Loan Bank stock 324 — — 324 479 — — 479 Other equity securities 7 — — 7 — — — — Total other investment securities, at cost $794 $— $— $794 $942 $— $— $942 |
Schedule of unrealized loss on investments | The following tables present 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, 2017 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 — $— $— — $— $— — $— $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 301 13,613 (219 ) 24 423 (12 ) 325 14,036 (231 ) Other/non-agency — — — 12 154 (9 ) 12 154 (9 ) Total mortgage-backed securities 301 13,613 (219 ) 36 577 (21 ) 337 14,190 (240 ) Total 301 $13,613 ($219 ) 36 $577 ($21 ) 337 $14,190 ($240 ) December 31, 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 State and political subdivisions 1 $8 $— — $— $— 1 $8 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 323 15,387 (292 ) 25 461 (16 ) 348 15,848 (308 ) Other/non-agency 4 8 — 20 302 (28 ) 24 310 (28 ) Total mortgage-backed securities 327 15,395 (292 ) 45 763 (44 ) 372 16,158 (336 ) Total 328 $15,403 ($292 ) 45 $763 ($44 ) 373 $16,166 ($336 ) |
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) 2017 2016 2017 2016 Cumulative balance at beginning of period $75 $66 $75 $66 Credit impairments recognized in earnings on securities that have been previously impaired 4 7 5 8 Reductions due to increases in cash flow expectations on impaired securities (1) — — (1 ) (1 ) Cumulative balance at end of period $79 $73 $79 $73 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities by contractual maturity are presented 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, 2017 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 $12 $— $— $— $12 State and political subdivisions — — — 7 7 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 173 1,109 17,718 19,001 Other/non-agency — 26 2 335 363 Total debt securities available for sale 13 199 1,111 18,060 19,383 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,080 4,080 Other/non-agency — — — 887 887 Total debt securities held to maturity — — — 4,967 4,967 Total amortized cost of debt securities $13 $199 $1,111 $23,027 $24,350 Fair Value: Debt securities available for sale U.S. Treasury and other $12 $— $— $— $12 State and political subdivisions — — — 7 7 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 173 1,125 17,578 18,877 Other/non-agency — 27 2 332 361 Total debt securities available for sale 13 200 1,127 17,917 19,257 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,072 4,072 Other/non-agency — — — 914 914 Total debt securities held to maturity — — — 4,986 4,986 Total fair value of debt securities $13 $200 $1,127 $22,903 $24,243 |
Schedule of income recognized on investment securities | Realized gains and losses on securities are presented below: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Gains on sale of debt securities $3 $4 $7 $13 Losses on sale of debt securities — — — — Debt securities gains, net $3 $4 $7 $13 Equity securities gains $1 $— $1 $— |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are presented below: June 30, 2017 December 31, 2016 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $432 $430 $631 $620 Pledged against FHLB borrowed funds 894 921 953 972 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 4,052 4,022 3,575 3,563 |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio is presented below: (in millions) June 30, 2017 December 31, 2016 Commercial $37,329 $37,274 Commercial real estate 11,213 10,624 Leases 3,346 3,753 Total commercial 51,888 51,651 Residential mortgages 16,082 15,115 Home equity loans 1,606 1,858 Home equity lines of credit 13,696 14,100 Home equity loans serviced by others 647 750 Home equity lines of credit serviced by others 182 219 Automobile 13,449 13,938 Education (1) 7,720 6,610 Credit cards 1,711 1,691 Other retail 2,065 1,737 Total retail 57,158 56,018 Total loans and leases (2) (3) $109,046 $107,669 (1) During first quarter 2017, student loans were renamed “education” loans. Refer to Note 1 “Basis of Presentation” for more information. (2) Excluded from the table above are loans held for sale totaling $707 million and $625 million as of June 30, 2017 and December 31, 2016 , respectively. (3) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.3 billion at June 30, 2017 and December 31, 2016 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, 31
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | A summary of changes in the allowance for credit losses is presented below: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $653 $571 $1,224 $663 $573 $1,236 Charge-offs (24 ) (104 ) (128 ) (48 ) (213 ) (261 ) Recoveries 10 43 53 15 84 99 Net charge-offs (14 ) (61 ) (75 ) (33 ) (129 ) (162 ) Provision (credited) charged to income (25 ) 95 70 (16 ) 161 145 Allowance for loan and lease losses, end of period 614 605 1,219 614 605 1,219 Reserve for unfunded lending commitments, beginning of period 93 — 93 72 — 72 Provision for unfunded lending commitments — — — 21 — 21 Reserve for unfunded lending commitments as of period end 93 — 93 93 — 93 Total allowance for credit losses as of period end $707 $605 $1,312 $707 $605 $1,312 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 Provision 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 |
Schedule of loans and leases based on evaluation method | The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: June 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $491 $804 $1,295 $424 $799 $1,223 Formula-based evaluation 51,397 56,354 107,751 51,227 55,219 106,446 Total $51,888 $57,158 $109,046 $51,651 $56,018 $107,669 |
Schedule of allowance for credit losses by evaluation method | A summary of the allowance for credit losses by evaluation method is presented below: June 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $42 $43 $85 $63 $43 $106 Formula-based evaluation 665 562 1,227 672 530 1,202 Allowance for credit losses $707 $605 $1,312 $735 $573 $1,308 |
Schedule of classes of commercial loans and leases based on regulatory classifications | The recorded investment in commercial loans and leases based on regulatory classification ratings is presented below: June 30, 2017 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,259 $1,169 $622 $279 $37,329 Commercial real estate 10,678 444 53 38 11,213 Leases 3,215 107 24 — 3,346 Total $49,152 $1,720 $699 $317 $51,888 December 31, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,010 $1,015 $1,027 $222 $37,274 Commercial real estate 10,146 370 58 50 10,624 Leases 3,583 52 103 15 3,753 Total $48,739 $1,437 $1,188 $287 $51,651 |
Schedule of retail loan investments categorized by delinquency status | The recorded investment in classes of retail loans, categorized by delinquency status is presented below: June 30, 2017 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $15,820 $99 $35 $10 $118 $16,082 Home equity loans 1,430 96 12 5 63 1,606 Home equity lines of credit 13,071 366 52 22 185 13,696 Home equity loans serviced by others 582 35 9 5 16 647 Home equity lines of credit serviced by others 135 22 3 1 21 182 Automobile 12,199 991 172 42 45 13,449 Education 7,537 117 18 10 38 7,720 Credit cards 1,636 43 10 7 15 1,711 Other retail 1,982 55 13 8 7 2,065 Total $54,392 $1,824 $324 $110 $508 $57,158 December 31, 2016 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $14,807 $108 $53 $12 $135 $15,115 Home equity loans 1,628 127 23 7 73 1,858 Home equity lines of credit 13,432 396 57 20 195 14,100 Home equity loans serviced by others 673 41 14 5 17 750 Home equity lines of credit serviced by others 158 25 3 2 31 219 Automobile 12,509 1,177 172 38 42 13,938 Education 6,379 151 24 13 43 6,610 Credit cards 1,611 43 12 9 16 1,691 Other retail 1,676 45 8 4 4 1,737 Total $52,873 $2,113 $366 $110 $556 $56,018 |
Schedule of nonperforming loans and leases by class | The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming Accruing and 90 days or more past due (in millions) June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Commercial $376 $322 $4 $2 Commercial real estate 38 50 — — Leases — 15 — — Total commercial 414 387 4 2 Residential mortgages (1) 135 144 12 18 Home equity loans 81 98 — — Home equity lines of credit 235 243 — — Home equity loans serviced by others 27 32 — — Home equity lines of credit serviced by others 25 33 — — Automobile 55 50 — — Education 35 38 3 5 Credit card 15 16 — — Other retail 3 4 5 1 Total retail 611 658 20 24 Total $1,025 $1,045 $24 $26 (1) Nonperforming balances exclude first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration. These loans, which are accruing and 90 days or more past due, totaled $12 million and $18 million as of June 30, 2017 and December 31, 2016 , respectively. Nonperforming balances also exclude guaranteed residential mortgage loans sold to GNMA for which the Company has the right, but not the obligation, to repurchase. These loans totaled $28 million and $32 million as of June 30, 2017 and December 31, 2016 , respectively. These loans are consolidated on the Company’s Consolidated Balance Sheets. |
Schedule of nonperforming assets | A summary of other nonperforming assets is presented below: (in millions) June 30, 2017 December 31, 2016 Nonperforming assets, net of valuation allowance: Commercial $— $— Retail 37 49 Nonperforming assets, net of valuation allowance $37 $49 |
Summary of key performance indicators | A summary of key performance indicators is presented below: June 30, 2017 December 31, 2016 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.38 % 0.36 % Nonperforming retail loans as a percentage of total loans and leases 0.56 0.61 Total nonperforming loans and leases as a percentage of total loans and leases 0.94 % 0.97 % Nonperforming commercial assets as a percentage of total assets 0.26 % 0.26 % Nonperforming retail assets as a percentage of total assets 0.44 0.47 Total nonperforming assets as a percentage of total assets 0.70 % 0.73 % |
Analysis of age of past due amounts | An analysis of the age of both accruing and nonaccruing loan and lease past due amounts is presented below: June 30, 2017 December 31, 2016 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $9 $6 $380 $395 $36 $4 $324 $364 Commercial real estate 3 5 38 46 1 2 50 53 Leases — — — — 1 — 15 16 Total commercial 12 11 418 441 38 6 389 433 Residential mortgages 35 10 118 163 53 12 135 200 Home equity loans 12 5 63 80 23 7 73 103 Home equity lines of credit 52 22 185 259 57 20 195 272 Home equity loans serviced by others 9 5 16 30 14 5 17 36 Home equity lines of credit serviced by others 3 1 21 25 3 2 31 36 Automobile 172 42 45 259 172 38 42 252 Education 18 10 38 66 24 13 43 80 Credit cards 10 7 15 32 12 9 16 37 Other retail 13 8 7 28 8 4 4 16 Total retail 324 110 508 942 366 110 556 1,032 Total $336 $121 $926 $1,383 $404 $116 $945 $1,465 |
Schedule of impaired loans by class | A summary of impaired loans by class is presented below: June 30, 2017 (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 $31 $237 $527 $453 Commercial real estate 35 11 3 39 38 Total commercial 251 42 240 566 491 Residential mortgages 46 3 142 247 188 Home equity loans 49 5 91 187 140 Home equity lines of credit 24 2 186 259 210 Home equity loans serviced by others 37 3 17 64 54 Home equity lines of credit serviced by others 4 — 5 13 9 Automobile 4 — 18 27 22 Education 146 22 — 146 146 Credit cards 25 7 — 26 25 Other retail 9 1 1 12 10 Total retail 344 43 460 981 804 Total $595 $85 $700 $1,547 $1,295 December 31, 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 $247 $55 $134 $431 $381 Commercial real estate 39 8 4 44 43 Total commercial 286 63 138 475 424 Residential mortgages 37 2 141 235 178 Home equity loans 51 3 94 191 145 Home equity lines of credit 23 1 173 240 196 Home equity loans serviced by others 41 4 19 70 60 Home equity lines of credit serviced by others 2 — 7 13 9 Automobile 4 — 15 25 19 Education 154 25 1 155 155 Credit cards 26 6 — 26 26 Other retail 10 2 1 13 11 Total retail 348 43 451 968 799 Total $634 $106 $589 $1,443 $1,223 |
Schedule of additional information on impaired loans | Additional information on impaired loans is presented below: Three Months Ended June 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $431 $2 $324 Commercial real estate — 38 — 58 Total commercial 1 469 2 382 Residential mortgages 2 182 1 160 Home equity loans 1 141 1 158 Home equity lines of credit 1 203 2 184 Home equity loans serviced by others 1 54 1 66 Home equity lines of credit serviced by others — 9 — 10 Automobile — 20 — 15 Education 2 146 2 161 Credit cards 1 25 1 26 Other retail — 10 — 13 Total retail 8 790 8 793 Total $9 $1,259 $10 $1,175 Six Months Ended June 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $2 $414 $3 $248 Commercial real estate — 41 — 61 Total commercial 2 455 3 309 Residential mortgages 3 178 2 156 Home equity loans 3 140 3 154 Home equity lines of credit 3 197 3 182 Home equity loans serviced by others 2 54 2 67 Home equity lines of credit serviced by others — 9 — 9 Automobile — 18 — 14 Education 4 146 4 160 Credit cards 1 24 1 26 Other retail — 10 — 13 Total retail 16 776 15 781 Total $18 $1,231 $18 $1,090 |
Troubled debt restructurings on financing receivables | The table below summarizes how loans were modified during the three months ended June 30, 2017 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during the three months ended June 30, 2017 and were paid off in full, charged off, or sold prior to June 30, 2017 . 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 2 $— $— 11 $13 $13 Commercial real estate — — — — — — Leases — — — — — — Total commercial 2 — — 11 13 13 Residential mortgages 25 4 3 25 5 5 Home equity loans 22 1 2 — — — Home equity lines of credit 14 — — 67 9 9 Home equity loans serviced by others 5 — — — — — Home equity lines of credit serviced by others 2 — — — — — Automobile 25 — — 7 — — Education — — — — — — Credit cards 624 4 4 — — — Other retail — — — — — — Total retail 717 9 9 99 14 14 Total 719 $9 $9 110 $27 $27 Primary Modification Types Other (3) (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 $32 $31 $1 $— Commercial real estate — — — — — Leases — — — — — Total commercial 4 32 31 1 — Residential mortgages 44 6 6 — — Home equity loans 42 2 2 — — Home equity lines of credit 112 8 7 — — Home equity loans serviced by others 16 — — — — Home equity lines of credit serviced by others 2 — — — — Automobile 349 6 6 — 1 Education 7 1 1 1 — Credit cards — — — 1 — Other retail 2 — — (1 ) — Total retail 574 23 22 1 1 Total 578 $55 $53 $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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 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 can include loans that became TDRs during the three months ended June 30, 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 — — — — — — Leases — — — — — — 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 — — — — — Home equity lines of credit serviced by others 2 — — 3 1 1 Automobile 30 — — 3 — — Education — — — — — — 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 (3) (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 — — — — — Leases — — — — — 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 16 — — — — Home equity lines of credit serviced by others 5 1 — — — Automobile 348 7 6 — 1 Education 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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 how loans were modified during the six months ended June 30, 2017 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during the six months ended June 30, 2017 and were paid off in full, charged off, or sold prior to June 30, 2017 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 4 $1 $1 18 $14 $14 Commercial real estate — — — — — — Leases — — — — — — Total commercial 4 1 1 18 14 14 Residential mortgages 43 5 5 36 8 8 Home equity loans 43 2 3 1 — — Home equity lines of credit 30 1 1 118 15 15 Home equity loans serviced by others 11 1 1 — — — Home equity lines of credit serviced by others 3 — — 2 — — Automobile 65 1 1 15 — — Education — — — — — — Credit cards 1,189 7 7 — — — Other retail 1 — — — — — Total retail 1,385 17 18 172 23 23 Total 1,389 $18 $19 190 $37 $37 Primary Modification Types Other (3) (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 $32 $31 $1 $— Commercial real estate — — — — — Leases 1 4 4 — — Total commercial 5 36 35 1 — Residential mortgages 92 10 10 — — Home equity loans 144 8 8 — — Home equity lines of credit 187 14 13 — — Home equity loans serviced by others 30 1 1 — — Home equity lines of credit serviced by others 13 1 1 — — Automobile 625 11 10 — 2 Education 22 2 2 1 — Credit cards — — — 2 — Other retail 3 — — (1 ) — Total retail 1,116 47 45 2 2 Total 1,121 $83 $80 $3 $2 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 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 can include loans that became TDRs during the six months ended June 30, 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 — — — — — — Leases — — — — — — 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 6 — — — — — Home equity lines of credit serviced by others 2 — — 4 1 1 Automobile 51 1 1 8 — — Education — — — — — — 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 (3) (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 — — — — — Leases — — — — — 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 34 1 1 — — Home equity lines of credit serviced by others 13 1 — — — Automobile 539 10 9 — 1 Education 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) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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 and six months ended June 30, 2017 and 2016 , respectively, within 12 months of their modification date. For purposes of this table, a payment default refers to a loan that becomes 90 days or more past due 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, 2017 and 2016 , respectively. 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, Six Months Ended June 30, 2017 2016 2017 2016 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 4 $1 8 $3 5 $1 11 $3 Commercial real estate — — 1 — 1 4 1 — Total commercial 4 1 9 3 6 5 12 3 Residential mortgages 41 4 35 4 86 10 89 12 Home equity loans 14 1 32 2 23 1 50 3 Home equity lines of credit 65 4 20 1 100 7 45 4 Home equity loans serviced by others 9 — 11 — 10 — 21 1 Home equity lines of credit serviced by others 1 — 6 — 4 — 11 — Automobile 27 1 22 1 61 1 37 1 Education 9 — 18 1 16 — 31 1 Credit cards 102 1 85 — 228 2 206 1 Other retail — — — — 2 — — — Total retail 268 11 229 9 530 21 490 23 Total 272 $12 238 $12 536 $26 502 $26 |
Schedule of loans that may increase credit exposure | The following tables present balances of loans with these characteristics: June 30, 2017 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $484 $370 $366 $— $— $1,220 Interest only/negative amortization 1,705 — — — 1 1,706 Low introductory rate — — — 142 — 142 Multiple characteristics and other 3 — — — — 3 Total $2,192 $370 $366 $142 $1 $3,071 December 31, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Education Total High loan-to-value $566 $550 $476 $— $— $1,592 Interest only/negative amortization 1,582 — — — 1 1,583 Low introductory rate — — — 112 — 112 Multiple characteristics and other 3 — — — — 3 Total $2,151 $550 $476 $112 $1 $3,290 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of variable interest entities | A summary of these investments is presented below: (in millions) June 30, 2017 December 31, 2016 LIHTC investment included in other assets $865 $793 LIHTC unfunded commitments included in other liabilities 484 428 Renewable energy investments included in other assets 266 220 |
Schedule of Affordable Housing Tax Credit investments | The following table presents other information related to the Company’s affordable housing tax credit investments: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Tax credits included in income tax expense $22 $14 $43 $29 Amortization expense included in income tax expense 22 16 45 31 Other tax benefits included in income tax expense 8 7 15 13 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Mortgage Banking [Abstract] | |
Schedule of valuation allowance for impairment of recognized servicing assets | Changes related to MSRs are presented below: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $169 $168 $173 Amount capitalized 8 5 18 10 Amortization (8 ) (8 ) (16 ) (17 ) Carrying amount before valuation allowance 170 166 170 166 Valuation allowance for servicing assets: Balance as of beginning of period 5 14 5 9 Valuation (recoveries) charge-offs (1 ) (1 ) (1 ) 4 Balance at end of period 4 13 4 13 Net carrying value of MSRs $166 $153 $166 $153 |
Servicing asset at amortized cost | Changes related to MSRs are presented below: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $169 $168 $173 Amount capitalized 8 5 18 10 Amortization (8 ) (8 ) (16 ) (17 ) Carrying amount before valuation allowance 170 166 170 166 Valuation allowance for servicing assets: Balance as of beginning of period 5 14 5 9 Valuation (recoveries) charge-offs (1 ) (1 ) (1 ) 4 Balance at end of period 4 13 4 13 Net carrying value of MSRs $166 $153 $166 $153 |
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: June 30, 2017 December 31, 2016 Weighted Weighted (dollars in millions) Average Range Average Range Fair value $184 Min Max $182 Min Max Weighted average life (in years) 5.6 2.4 6.9 5.7 2.6 7.3 Weighted average constant prepayment rate 10.8% 9.4% 19.8% 10.8% 8.8% 22.3% Weighted average discount rate 9.9% 9.1% 12.1% 9.7% 9.1% 12.1% |
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 are presented below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Weighted average life (in years) 6.2 5.9 6.6 6.0 Weighted average constant prepayment rate 11.1% 11.3% 9.9% 11.1% Weighted average discount rate 9.9% 9.7% 9.9% 9.7% |
Schedule of the impact to fair value of an adverse change in key economic assumptions | The sensitivity analysis below presents the impact to current fair value of an immediate 50 basis point and 100 basis point 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, with the effect of a variation in a particular assumption on the fair value of the mortgage servicing rights 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 rates, could result in changes in the discount rates), which may 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, 2017 December 31, 2016 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $9 $9 Decline in fair value from a 100 basis point decrease in interest rates $18 $25 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | A summary of the Company’s short-term borrowed funds is presented below: (in millions) June 30, 2017 December 31, 2016 Federal funds purchased $— $533 Securities sold under agreements to repurchase 429 615 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,004 3,211 Total short-term borrowed funds $2,433 $4,359 Key data related to short-term borrowed funds is presented in the following table: As of and for the Three Months Ended June 30, As of and for the Six Months Ended June 30, As of and for the Year Ended December 31, (dollars in millions) 2017 2016 2017 2016 2016 Weighted-average interest rate at period-end: (1) Federal funds purchased and securities sold under agreements to repurchase — % — % — % — % 0.26 % Other short-term borrowed funds (primarily current portion of FHLB advances) 1.31 0.65 1.31 0.65 0.94 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $1,075 $968 $1,174 $1,274 $1,522 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,507 4,764 3,508 4,764 5,461 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $808 $974 $845 $927 $947 Other short-term borrowed funds (primarily current portion of FHLB advances) 2,275 3,743 2,617 3,421 3,207 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 0.36 % 0.08 % 0.28 % 0.07 % 0.09 % Other short-term borrowed funds (primarily current portion of FHLB advances) 1.22 0.61 1.14 0.60 0.64 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. |
Schedule of long-term borrowed funds | A summary of the Company’s long-term borrowed funds is presented below: (in millions) June 30, 2017 December 31, 2016 Citizens Financial Group, Inc.: 4.150% fixed-rate subordinated debt, due 2022 (1) $347 $347 5.158% fixed-to-floating rate subordinated debt, due 2023, converting to floating at 333 333 3.750% fixed-rate subordinated debt, due 2024 250 250 4.023% fixed-rate subordinated debt, due 2024 42 42 4.350% fixed-rate subordinated debt, due 2025 (2) 249 249 4.300% fixed-rate subordinated debt, due 2025 (3) 749 749 2.375% fixed-rate senior unsecured debt, due 2021 (4) 348 348 Banking Subsidiaries: 2.300% senior unsecured notes, due 2018 (5)(6) 746 745 2.450% senior unsecured notes, due 2019 (5)(7) 748 747 2.500% senior unsecured notes, due 2019 (5)(8) 743 741 2.250% senior unsecured notes, due 2020 (5)(9) 698 — Floating-rate senior unsecured notes, due 2020 (5)(10) 299 — Floating-rate senior unsecured notes, due 2020 (5)(11) 249 — 2.200% senior unsecured notes, due 2020 (5)(12) 498 — 2.550% senior unsecured notes, due 2021 (5)(13) 973 965 Floating-rate senior unsecured notes, due 2022 (5)(14) 249 — 2.650% senior unsecured notes, due 2022 (5)(15) 497 — Federal Home Loan advances due through 2033 5,112 7,264 Other 24 10 Total long-term borrowed funds $13,154 $12,790 (1) These balances are composed of: principal balances of $350 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (2) These balances are composed of: principal balances of $250 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (3) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (4) These balances are composed of: principal balance of $350 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 . (5) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (6) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($3) million at June 30, 2017 and December 31, 2016 ; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (7) These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact of ($2) million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. (8) These balances are composed of: principal balance of $750 million at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($6) million and ($7) million at June 30, 2017 and December 31, 2016 , respectively; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (9) This balance is composed of: principal balance of $700 million at June 30, 2017 ; impact from interest rate swaps of $1 million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 . See Note 10 “Derivatives” for further information. (10) This balance is composed of: principal balance of $300 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (11) These balances are composed of: principal balance of $250 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (12) This balance is composed of: principal balance of $500 million at June 30, 2017 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 . (13) These balances are composed of: principal balance of $1.0 billion at June 30, 2017 and December 31, 2016 , as well as the impact from interest rate swaps of ($23) million and ($30) million at June 30, 2017 and December 31, 2016 , respectively; and ($4) million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016 , respectively. See Note 10 “Derivatives” for further information. (14) This balance is composed of: principal balance of $250 million at June 30, 2017 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 . (15) This balance is composed of: principal balance of $500 million at June 30, 2017 , as well as the impact from interest rate swaps of ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 . |
Schedule of maturities of long-term borrowed funds | A summary of maturities for the Company’s long-term borrowed funds at June 30, 2017 is presented below: (in millions) Parent Company Banking Subsidiaries Consolidated Year 2018 or on demand $— $5,847 $5,847 2019 — 1,491 1,491 2020 — 1,762 1,762 2021 348 977 1,325 2022 347 752 1,099 2023 and thereafter 1,623 7 1,630 Total $2,318 $10,836 $13,154 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: June 30, 2017 December 31, 2016 (in millions) Notional Amount (1) Derivative Assets (2) Derivative Liabilities (2) Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $16,800 $4 $3 $13,350 $52 $193 Derivatives not designated as hedging instruments: Interest rate contracts 65,980 337 274 54,656 557 452 Foreign exchange contracts 10,120 132 121 8,039 134 126 Other contracts 1,380 11 5 1,498 16 7 Total derivatives not designated as hedging instruments 480 400 707 585 Gross derivative fair values 484 403 759 778 Less: Gross amounts offset in the Consolidated Balance Sheets (3) (70 ) (70 ) (106 ) (106 ) Less: Cash collateral applied (3) (6 ) (174 ) (26 ) (13 ) Total net derivative fair values presented in the Consolidated Balance Sheets $408 $159 $627 $659 (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 reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. (3) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. |
Schedule of fair value hedges | The following table presents the effect of fair value hedges on other income: Amounts Recognized in Other Income for the Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $16 ($15 ) $1 $32 ($31 ) $1 Amounts Recognized in Other Income for the Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps $10 ($9 ) $1 $84 ($83 ) $1 |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table presents 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) 2017 2016 2017 2016 Effective portion of gain recognized in OCI (1) $42 $21 $37 $75 Amounts reclassified from OCI to interest income (2) 8 21 20 43 Amounts reclassified from OCI to interest expense (2) (1 ) (8 ) (3 ) (16 ) (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 income or expense of the underlying hedged item. |
Schedule of effect of derivative Instruments on net income | The following table presents the effect of customer derivatives and economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Customer derivative contracts Customer interest rate contracts (1) $83 ($2 ) $80 $95 Customer foreign exchange contracts (1) 78 (23 ) 96 28 Residential loan commitments (2) (2 ) 3 3 7 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (71 ) 15 (56 ) (76 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (1) (71 ) 23 (85 ) (27 ) Forward sale contracts (2) 5 (5 ) (6 ) (10 ) Total $22 $11 $32 $17 (1) Reported in foreign exchange and interest rate products on the Consolidated Statements of Operations. (2) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | A summary of outstanding off-balance sheet arrangements is presented below: (in millions) June 30, 2017 December 31, 2016 Undrawn commitments to extend credit $61,988 $60,872 Financial standby letters of credit 2,053 1,892 Performance letters of credit 41 40 Commercial letters of credit 66 43 Marketing rights 42 44 Risk participation agreements 22 19 Residential mortgage loans sold with recourse 8 8 Total $64,220 $62,918 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale measured at fair value: June 30, 2017 December 31, 2016 (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 $386 $386 $— $504 $505 ($1 ) Commercial and commercial real estate loans held for sale, at fair value 134 134 — 79 79 — |
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, 2017 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,238 $— $19,238 $— State and political subdivisions 7 — 7 — U.S. Treasury and other 12 12 — — Total securities available for sale 19,257 12 19,245 — Loans held for sale, at fair value: Residential loans held for sale 386 — 386 — Commercial loans held for sale 134 — 134 — Total loans held for sale, at fair value 520 — 520 — Derivative assets 1 : Interest rate swaps 341 — 341 — Foreign exchange contracts 132 — 132 — Other contracts 11 — 11 — Total derivative assets 484 — 484 — Other investment securities, at fair value: Money market mutual fund 92 92 — — Other investments 5 — 5 — Total other investment securities, at fair value 97 92 5 — Total assets $20,358 $104 $20,254 $— Derivative liabilities 1 : Interest rate swaps $277 $— $277 $— Foreign exchange contracts 121 — 121 — Other contracts 5 — 5 — Total derivative liabilities 403 — 403 — Total liabilities $403 $— $403 $— (1) Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,446 $— $19,446 $— State and political subdivisions 8 — 8 — Equity securities 17 — 17 — U.S. Treasury 30 30 — — Total securities available for sale 19,501 30 19,471 — Loans held for sale, at fair value: Residential loans held for sale 504 — 504 — Commercial loans held for sale 79 — 79 — Total loans held for sale, at fair value 583 — 583 — Derivative assets: Interest rate swaps 609 — 609 — Foreign exchange contracts 134 — 134 — Other contracts 16 — 16 — Total derivative assets 759 — 759 — Other investment securities, at fair value: Money market mutual fund 91 91 — — Other investments 5 — 5 — Total other investment securities, at fair value 96 91 5 — Total assets $20,939 $121 $20,818 $— Derivative liabilities: Interest rate swaps $645 $— $645 $— Foreign exchange contracts 126 — 126 — Other contracts 7 — 7 — Total derivative liabilities 778 — 778 — Total liabilities $778 $— $778 $— |
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) 2017 2016 2017 2016 Impaired collateral-dependent loans ($8 ) ($6 ) ($27 ) ($11 ) MSRs 1 1 1 (4 ) Foreclosed assets (1 ) (1 ) (2 ) (2 ) Leased assets (15 ) — (15 ) — — |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets and liabilities measured at fair value on a nonrecurring basis: June 30, 2017 December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $341 $— $341 $— $355 $— $355 $— MSRs 184 — — 184 182 — — 182 Foreclosed assets 33 — 33 — 44 — 44 — Leased assets 137 — 137 — 158 — 158 — |
Assets and liabilities measured at fair value | The following table presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: June 30, 2017 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $4,967 $4,986 $— $— $4,967 $4,986 $— $— Other investment securities, at cost 794 794 — — 794 794 — — Other loans held for sale 187 187 — — — — 187 187 Loans and leases 109,046 109,323 — — 341 341 108,705 108,982 Financial Liabilities: Deposits 113,613 113,582 — — 113,613 113,582 — — Federal funds purchased and securities sold under agreements to repurchase 429 429 — — 429 429 — — Other short-term borrowed funds 2,004 2,004 — — 2,004 2,004 — — Long-term borrowed funds 13,154 13,275 — — 13,154 13,275 — — December 31, 2016 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $5,071 $5,058 $— $— $5,071 $5,058 $— $— Other investment securities, at cost 942 942 — — 942 942 — — Other loans held for sale 42 42 — — — — 42 42 Loans and leases 107,669 107,537 — — 355 355 107,314 107,182 Financial Liabilities: Deposits 109,804 109,796 — — 109,804 109,796 — — Federal funds purchased and securities sold under agreements to repurchase 1,148 1,148 — — 1,148 1,148 — — Other short-term borrowed funds 3,211 3,211 — — 3,211 3,211 — — Long-term borrowed funds 12,790 12,849 — — 12,790 12,849 — — |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 U.S. Basel III Standardized Transitional rules. Certain Basel III requirements are subject to phase-in through 2019, and were applied to this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses included within AOCI for available for sale securities, accumulated net gains and losses on cash-flow hedges, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities held to maturity. Transitional Basel III FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (6) (dollars in millions) Amount Ratio Amount Ratio (5) Amount Ratio As of June 30, 2017 Common equity tier 1 capital (1) $14,057 11.2 % $7,232 5.750 % $8,175 6.5 % Tier 1 capital (2) 14,304 11.4 9,119 7.250 10,062 8.0 Total capital (3) 17,586 14.0 11,634 9.250 12,577 10.0 Tier 1 leverage (4) 14,304 9.9 5,776 4.000 7,220 5.0 As of December 31, 2016 Common equity tier 1 capital (1) $13,822 11.2 % $6,348 5.125 % $8,051 6.5 % Tier 1 capital (2) 14,069 11.4 8,206 6.625 9,909 8.0 Total capital (3) 17,347 14.0 10,683 8.625 12,386 10.0 Tier 1 leverage (4) 14,069 9.9 5,667 4.000 7,084 5.0 ( 1) “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under U.S. 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 U.S. Basel III Standardized approach. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under U.S. Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under U.S. Basel III Standardized approach. (5) “Minimum Capital ratio” includes capital conservation buffer of 1.250% for 2017 and 0.625% for 2016; N/A to Tier 1 leverage. (6) Presented for informational purposes. Prompt corrective action provisions apply only to the Company’s insured depository institutions - CBNA and CBPA. |
RECLASSIFICATIONS OUT OF ACCU39
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income taxes, of each component of AOCI: As of and for the three months ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at 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 June 30, 2016 $39 $166 ($364 ) ($159 ) Balance at April 1, 2017 ($97 ) ($195 ) ($391 ) ($683 ) Other comprehensive income before reclassifications 26 56 — 82 Other-than-temporary impairment not recognized in earnings on securities — 10 — 10 Amounts reclassified from other comprehensive (loss) income (5 ) 1 2 (2 ) Net other comprehensive income 21 67 2 90 Balance at June 30, 2017 ($76 ) ($128 ) ($389 ) ($593 ) As of and for the six months ended June 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at 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 June 30, 2016 $39 $166 ($364 ) ($159 ) Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive income before reclassifications 23 61 — 84 Other-than-temporary impairment not recognized in earnings on securities — (2 ) — (2 ) Amounts reclassified from other comprehensive (loss) income (11 ) (1 ) 5 (7 ) Net other comprehensive income 12 58 5 75 Balance at June 30, 2017 ($76 ) ($128 ) ($389 ) ($593 ) |
Schedule of reclassification out of accumulated other comprehensive income | The following table presents 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) 2017 2016 2017 2016 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $8 $21 $20 $43 Interest income (1 ) (8 ) (3 ) (16 ) Interest expense 7 13 17 27 Income before income tax expense 2 4 6 10 Income tax expense $5 $9 $11 $17 Net income Reclassification of net securities gains (losses) to net income (loss): $3 $4 $7 $13 Securities gains, net (4 ) (7 ) (5 ) (8 ) Net securities impairment losses recognized in earnings (1 ) (3 ) 2 5 Income before income tax expense — (1 ) 1 2 Income tax expense ($1 ) ($2 ) $1 $3 Net income Reclassification of changes related to the employee benefit plan: ($4 ) ($4 ) ($9 ) ($8 ) Salaries and employee benefits (4 ) (4 ) (9 ) (8 ) Income before income tax expense (2 ) (1 ) (4 ) (3 ) Income tax expense ($2 ) ($3 ) ($5 ) ($5 ) Net income Total reclassification gains $2 $4 $7 $15 Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Net interest income (includes $7, $13, $17 and $27 of AOCI reclassifications, respectively) $1,026 $923 $2,031 $1,827 Provision for credit losses 70 90 166 181 Noninterest income (includes ($1), ($3), $2 and $5 of AOCI reclassifications, respectively) 370 355 749 685 Noninterest expense (includes $4, $4, $9 and $8 of AOCI reclassifications, respectively) 864 827 1,718 1,638 Income before income tax expense 462 361 896 693 Income tax expense (includes $0, $2, $3 and $9 income tax net expense from reclassification items, respectively) 144 118 258 227 Net income $318 $243 $638 $466 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended June 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $657 $344 $25 $1,026 Noninterest income 229 130 11 370 Total revenue 886 474 36 1,396 Noninterest expense 644 192 28 864 Profit before provision for credit losses 242 282 8 532 Provision for credit losses 60 1 9 70 Income (loss) before income tax expense (benefit) 182 281 (1 ) 462 Income tax expense (benefit) 64 94 (14 ) 144 Net income $118 $187 $13 $318 Total average assets $59,244 $49,731 $40,903 $149,878 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 Six Months Ended June 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,295 $690 $46 $2,031 Noninterest income 449 264 36 749 Total revenue 1,744 954 82 2,780 Noninterest expense 1,291 382 45 1,718 Profit before provision for credit losses 453 572 37 1,062 Provision for credit losses 124 20 22 166 Income before income tax expense (benefit) 329 552 15 896 Income tax expense (benefit) 116 185 (43 ) 258 Net income $213 $367 $58 $638 Total average assets $58,954 $49,488 $40,893 $149,335 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 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended June 30, Six Months Ended June 30, (in millions, except share and per-share data) 2017 2016 2017 2016 Numerator (basic and diluted): Net income $318 $243 $638 $466 Less: Preferred stock dividends — — 7 7 Net income available to common stockholders $318 $243 $631 $459 Denominator: Weighted-average common shares outstanding - basic 506,371,846 528,968,330 507,903,141 528,519,489 Dilutive common shares: share-based awards 1,042,276 1,396,873 1,458,914 1,877,382 Weighted-average common shares outstanding - diluted 507,414,122 530,365,203 509,362,055 530,396,871 Earnings per common share: Basic $0.63 $0.46 $1.24 $0.87 Diluted 0.63 0.46 1.24 0.87 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Details of other income | The following table presents the details of other income: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2017 2016 2017 2016 Bank-owned life insurance income $14 $13 $26 $26 Other (8 ) 9 5 17 Other income $6 $22 $31 $43 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) 2017 2016 2017 2016 Deposit insurance $36 $29 $68 $55 Promotional expense 29 25 55 49 Settlements and operating losses 12 14 25 22 Other 71 60 126 117 Other operating expense $148 $128 $274 $243 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions | 1 Months Ended |
May 31, 2017USD ($) | |
Western Reserve Partners, LLC | |
Business Acquisition [Line Items] | |
Goodwill from acquisition | $ 11 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Impaired debt securities sold | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Taxable interest income from securities | 154 | 141 | 314 | 286 | ||||
Securities purchased under agreements to resell, gross | 0 | 0 | $ 0 | |||||
Securities purchased under agreements to resell, offset | 0 | 0 | 0 | |||||
Securities purchased under agreements to resell | 0 | 0 | 0 | |||||
Securities sold under agreements to repurchase, gross | 0 | 0 | 0 | |||||
Securities sold under agreements to repurchase, offset | 0 | 0 | 0 | |||||
Securities sold under agreements to repurchase | 0 | 0 | 0 | |||||
Mortgage-backed securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Securitizations of mortgage loans | 22 | 5 | 44 | 5 | ||||
Available-for-sale Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | 79 | 73 | 79 | 73 | $ 75 | $ 75 | $ 66 | $ 66 |
OTTI in earnings | 4 | 7 | 5 | 8 | ||||
OTTI in earnings from an evaluation model update | 5 | 5 | ||||||
Held-to-maturity Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Securities Available-for-sale, Amortized Cost | $ 19,383 | $ 19,713 | |
Securities Available-for-sale, Gross Unrealized Gains | 86 | 80 | |
Securities Available-for-sale, Gross Unrealized Losses | (212) | (292) | |
Securities Available-for-sale, Fair Value | [1] | 19,257 | 19,501 |
Securities Held-to-maturity, Amortized Cost | 4,967 | 5,071 | |
Securities Held-to-maturity, Gross Unrealized Gain | 47 | 31 | |
Securities Held-to-maturity, Gross Unrealized Losses | (28) | (44) | |
Securities held-to-maturity, Fair Value | 4,986 | 5,058 | |
Money market mutual fund, Amortized Cost | 92 | 91 | |
Money Market Mutual Fund, Gross Unrealized Gain | 0 | 0 | |
Money Market Mutual Fund, Gross Unrealized Loss | 0 | 0 | |
Money market mutual fund, Fair Value | 92 | 91 | |
Total other investment securities, at fair value, Amortized Cost | 97 | 96 | |
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 | 97 | 96 | |
Other Investment Securities, at Cost, Amortized Cost | 7 | 0 | |
Other Investment Securities, at Cost, Gross Unrealized Gain | 0 | 0 | |
Other Investment Securities, at Cost, Gross Unrealized Loss | 0 | 0 | |
Other Investment Securities, at Cost, Fair Value | 7 | 0 | |
Total other investment securities, at cost | 794 | 942 | |
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 | 794 | 942 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 12 | 30 | |
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 | 12 | 30 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 7 | 8 | |
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 | 7 | 8 | |
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 | 19,001 | 19,231 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 79 | 78 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (203) | (264) | |
Debt Securities Available-for-sale, Fair Value | 18,877 | 19,045 | |
Securities Held-to-maturity, Amortized Cost | 4,080 | 4,126 | |
Securities Held-to-maturity, Gross Unrealized Gain | 20 | 12 | |
Securities Held-to-maturity, Gross Unrealized Losses | (28) | (44) | |
Securities held-to-maturity, Fair Value | 4,072 | 4,094 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 363 | 427 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 7 | 2 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (9) | (28) | |
Debt Securities Available-for-sale, Fair Value | 361 | 401 | |
Securities Held-to-maturity, Amortized Cost | 887 | 945 | |
Securities Held-to-maturity, Gross Unrealized Gain | 27 | 19 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Securities held-to-maturity, Fair Value | 914 | 964 | |
Total mortgage-backed securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 19,364 | 19,658 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 86 | 80 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (212) | (292) | |
Debt Securities Available-for-sale, Fair Value | 19,238 | 19,446 | |
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 | 19,383 | 19,696 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 86 | 80 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (212) | (292) | |
Debt Securities Available-for-sale, Fair Value | 19,257 | 19,484 | |
Marketable equity securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 0 | 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 | 0 | 5 | |
Other equity securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 0 | 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 | 0 | 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 | 0 | 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 | 0 | 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 | 463 | |
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 | 463 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 324 | 479 | |
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 | $ 324 | $ 479 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Schedule of Inve47
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Jun. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Number of Issues | ||
Less than 12 Months | Securities | 301 | 328 |
12 Months or Longer | Securities | 36 | 45 |
Total | Securities | 337 | 373 |
Fair Value | ||
Less than 12 Months | $ 13,613 | $ 15,403 |
12 Months or Longer | 577 | 763 |
Total | 14,190 | 16,166 |
Gross Unrealized Losses | ||
Less than 12 Months | (219) | (292) |
12 Months or Longer | (21) | (44) |
Total | $ (240) | $ (336) |
State and political subdivisions | ||
Number of Issues | ||
Less than 12 Months | Securities | 0 | 1 |
12 Months or Longer | Securities | 0 | 0 |
Total | Securities | 0 | 1 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 8 |
12 Months or Longer | 0 | 0 |
Total | 0 | 8 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | $ 0 | $ 0 |
Federal agencies and U.S. government sponsored entities | ||
Number of Issues | ||
Less than 12 Months | Securities | 301 | 323 |
12 Months or Longer | Securities | 24 | 25 |
Total | Securities | 325 | 348 |
Fair Value | ||
Less than 12 Months | $ 13,613 | $ 15,387 |
12 Months or Longer | 423 | 461 |
Total | 14,036 | 15,848 |
Gross Unrealized Losses | ||
Less than 12 Months | (219) | (292) |
12 Months or Longer | (12) | (16) |
Total | $ (231) | $ (308) |
Other/non-agency | ||
Number of Issues | ||
Less than 12 Months | Securities | 0 | 4 |
12 Months or Longer | Securities | 12 | 20 |
Total | Securities | 12 | 24 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 8 |
12 Months or Longer | 154 | 302 |
Total | 154 | 310 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | (9) | (28) |
Total | $ (9) | $ (28) |
Total mortgage-backed securities | ||
Number of Issues | ||
Less than 12 Months | Securities | 301 | 327 |
12 Months or Longer | Securities | 36 | 45 |
Total | Securities | 337 | 372 |
Fair Value | ||
Less than 12 Months | $ 13,613 | $ 15,395 |
12 Months or Longer | 577 | 763 |
Total | 14,190 | 16,158 |
Gross Unrealized Losses | ||
Less than 12 Months | (219) | (292) |
12 Months or Longer | (21) | (44) |
Total | $ (240) | $ (336) |
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 | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Cumulative balance at beginning of period | $ 75 | $ 66 | $ 75 | $ 66 | |
Credit impairments recognized in earnings on securities that have been previously impaired | 4 | 7 | 5 | 8 | |
Reductions due to increases in cash flow expectations on impaired securities | [1] | 0 | 0 | (1) | (1) |
Cumulative balance at end of period | $ 79 | $ 73 | $ 79 | $ 73 | |
[1] | Reported in interest income from investment securities on the Consolidated Statements of Operations. |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Jun. 30, 2017USD ($) |
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 | $ 13 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 199 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,111 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,060 |
Amortized Cost, Debt securities available for sale, Total | 19,383 |
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 | 4,967 |
Amortized Cost, Debt securities held to maturity, Total | 4,967 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 13 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 199 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,111 |
Total amortized cost of debt securities, Maturity After 10 Years | 23,027 |
Total amortized cost of debt securities, Total | 24,350 |
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 | 13 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 200 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,127 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 17,917 |
Fair Value, Debt securities available for sale, Total | 19,257 |
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 | 4,986 |
Fair Value, Debt securities held to maturity, Total | 4,986 |
Total fair value of debt securities, Maturity of 1 Year or Less | 13 |
Total fair value of debt securities, Maturity of 1-5 Years | 200 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,127 |
Total fair value of debt securities, Maturity After 10 Years | 22,903 |
Total fair value of debt securities, Total | 24,243 |
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 | 12 |
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 | 12 |
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 | 12 |
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 | 12 |
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 | 7 |
Amortized Cost, Debt securities available for sale, Total | 7 |
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 | 7 |
Fair Value, Debt securities available for sale, Total | 7 |
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 | 1 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 173 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,109 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 17,718 |
Amortized Cost, Debt securities available for sale, Total | 19,001 |
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 | 4,080 |
Amortized Cost, Debt securities held to maturity, Total | 4,080 |
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 | 1 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 173 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,125 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 17,578 |
Fair Value, Debt securities available for sale, Total | 18,877 |
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 | 4,072 |
Fair Value, Debt securities held to maturity, Total | 4,072 |
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 | 26 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 2 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 335 |
Amortized Cost, Debt securities available for sale, Total | 363 |
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 | 887 |
Amortized Cost, Debt securities held to maturity, Total | 887 |
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 | 27 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 2 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 332 |
Fair Value, Debt securities available for sale, Total | 361 |
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 | 914 |
Fair Value, Debt securities held to maturity, Total | $ 914 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | $ 3 | $ 4 | $ 7 | $ 13 |
Losses on sale of debt securities | 0 | 0 | 0 | 0 |
Debt securities gains, net | 3 | 4 | 7 | 13 |
Equity securities gains | $ 1 | $ 0 | $ 1 | $ 0 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 432 | $ 631 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 894 | 953 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 4,052 | 3,575 |
Pledged against repurchase agreements, Fair Value | 430 | 620 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 921 | 972 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 4,022 | $ 3,563 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | $ 520 | $ 520 | $ 583 | ||
Other loans held for sale | 187 | 187 | 42 | ||
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral for FHLB borrowed funds | 24,300 | 24,300 | 24,000 | ||
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 17,400 | 17,400 | 16,800 | ||
Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 520 | 520 | 583 | ||
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 | 386 | 386 | 504 | ||
Commercial real estate loans held for sale | Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 134 | 134 | $ 79 | ||
Education | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 407 | $ 348 | 732 | $ 717 | |
Automobile | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 30 | 200 | 153 | 334 | |
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased during period | 63 | 183 | |||
Mortgage loans sold | 206 | 108 | 206 | 281 | |
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans sold during the period | $ 596 | $ 45 | $ 596 | $ 118 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | $ 51,888 | $ 51,651 | |
Total retail | 57,158 | 56,018 | |
Loans and leases | 109,046 | 107,669 | |
Total loans receivable held for sale | 707 | 625 | |
Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans serviced for others | 17,600 | 17,300 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | 37,329 | 37,274 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | 11,213 | 10,624 | |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Leases | 3,346 | 3,753 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential mortgages | 16,082 | 15,115 | |
Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 1,606 | 1,858 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 13,696 | 14,100 | |
Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 647 | 750 | |
Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 182 | 219 | |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Automobile | 13,449 | 13,938 | |
Education | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Education | [1] | 7,720 | 6,610 |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit cards | 1,711 | 1,691 | |
Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other retail | 2,065 | 1,737 | |
Total loans and leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [2],[3] | $ 109,046 | $ 107,669 |
[1] | During first quarter 2017, student loans were renamed “education” loans. Refer to Note 1 “Basis of Presentation” for more information. | ||
[2] | Excluded from the table above are loans held for sale totaling $707 million and $625 million as of June 30, 2017 and December 31, 2016, respectively. | ||
[3] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.6 billion and $17.3 billion at June 30, 2017 and December 31, 2016, respectively. |
ALLOWANCE FOR CREDIT LOSSES, 54
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $ 173 | $ 177 |
Larger balance commercial loans minimum balance (greater than) | 3 | |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 45 | 42 |
High loan to value criteria (exceeds) | 90.00% | |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 136 | 120 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 804 | $ 799 |
ALLOWANCE FOR CREDIT LOSSES, 55
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 1,236 | |||
Provision (credited) charged to income | 166 | $ 181 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 1,219 | 1,219 | ||
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 | $ 1,224 | 1,236 | 1,216 |
Charge-offs | (128) | (113) | (261) | (239) |
Recoveries | 53 | 48 | 99 | 91 |
Net charge-offs | (75) | (65) | (162) | (148) |
Provision (credited) charged to income | 70 | 87 | 145 | 178 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,219 | 1,246 | 1,219 | 1,246 |
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 | 653 | 633 | 663 | 596 |
Charge-offs | (24) | (7) | (48) | (20) |
Recoveries | 10 | 5 | 15 | 9 |
Net charge-offs | (14) | (2) | (33) | (11) |
Provision (credited) charged to income | (25) | 45 | (16) | 91 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 614 | 676 | 614 | 676 |
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 | 571 | 591 | 573 | 620 |
Charge-offs | (104) | (106) | (213) | (219) |
Recoveries | 43 | 43 | 84 | 82 |
Net charge-offs | (61) | (63) | (129) | (137) |
Provision (credited) charged to income | 95 | 42 | 161 | 87 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 605 | 570 | 605 | 570 |
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 | 93 | 58 | 72 | 58 |
Provision for unfunded lending commitments | 0 | 3 | 21 | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 93 | 61 | 93 | 61 |
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 | 93 | 58 | 72 | 58 |
Provision for unfunded lending commitments | 0 | 3 | 21 | 3 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 93 | 61 | 93 | 61 |
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 |
Provision 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 | 1,312 | 1,307 | 1,312 | 1,307 |
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 | 707 | 737 | 707 | 737 |
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 | $ 605 | $ 570 | $ 605 | $ 570 |
ALLOWANCE FOR CREDIT LOSSES, 56
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, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,295 | $ 1,223 |
Formula-based evaluation | 107,751 | 106,446 |
Total | 109,046 | 107,669 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 491 | 424 |
Formula-based evaluation | 51,397 | 51,227 |
Total | 51,888 | 51,651 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 804 | 799 |
Formula-based evaluation | 56,354 | 55,219 |
Total | $ 57,158 | $ 56,018 |
ALLOWANCE FOR CREDIT LOSSES, 57
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, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 85 | $ 106 |
Formula-based evaluation | 1,227 | 1,202 |
Allowance for credit losses | 1,312 | 1,308 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 42 | 63 |
Formula-based evaluation | 665 | 672 |
Allowance for credit losses | 707 | 735 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 43 | 43 |
Formula-based evaluation | 562 | 530 |
Allowance for credit losses | $ 605 | $ 573 |
ALLOWANCE FOR CREDIT LOSSES, 58
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, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 109,046 | $ 107,669 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 51,888 | 51,651 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,329 | 37,274 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,213 | 10,624 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,346 | 3,753 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 49,152 | 48,739 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,259 | 35,010 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,678 | 10,146 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,215 | 3,583 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,720 | 1,437 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,169 | 1,015 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 444 | 370 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 107 | 52 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 699 | 1,188 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 622 | 1,027 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 53 | 58 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 24 | 103 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 317 | 287 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279 | 222 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 38 | 50 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 0 | $ 15 |
ALLOWANCE FOR CREDIT LOSSES, 59
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, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,383 | $ 1,465 |
Total | 109,046 | 107,669 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 15,820 | 14,807 |
Past Due | 163 | 200 |
Total | 16,082 | 15,115 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,430 | 1,628 |
Past Due | 80 | 103 |
Total | 1,606 | 1,858 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,071 | 13,432 |
Past Due | 259 | 272 |
Total | 13,696 | 14,100 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 582 | 673 |
Past Due | 30 | 36 |
Total | 647 | 750 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 135 | 158 |
Past Due | 25 | 36 |
Total | 182 | 219 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,199 | 12,509 |
Past Due | 259 | 252 |
Total | 13,449 | 13,938 |
Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,537 | 6,379 |
Past Due | 66 | 80 |
Total | 7,720 | 6,610 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,636 | 1,611 |
Past Due | 32 | 37 |
Total | 1,711 | 1,691 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,982 | 1,676 |
Past Due | 28 | 16 |
Total | 2,065 | 1,737 |
Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 54,392 | 52,873 |
Total | 57,158 | 56,018 |
Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 99 | 108 |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 96 | 127 |
Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 366 | 396 |
Financing Receivables, 1 to 29 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 35 | 41 |
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 | 22 | 25 |
Financing Receivables, 1 to 29 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 991 | 1,177 |
Financing Receivables, 1 to 29 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 117 | 151 |
Financing Receivables, 1 to 29 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 43 | 43 |
Financing Receivables, 1 to 29 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 55 | 45 |
Financing Receivables, 1 to 29 Days Past Due | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,824 | 2,113 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 336 | 404 |
Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 35 | 53 |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 23 |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 52 | 57 |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 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 | 3 | 3 |
Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 172 | 172 |
Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 18 | 24 |
Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 13 | 8 |
Financing Receivables, 30 to 59 Days Past Due | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 324 | 366 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 121 | 116 |
Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 7 |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 22 | 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 | 5 | 5 |
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 | 2 |
Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 42 | 38 |
Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 13 |
Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 9 |
Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 4 |
Financing Receivables 60 To 89 Days Past Due | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 110 | 110 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 926 | 945 |
Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 118 | 135 |
Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 63 | 73 |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 185 | 195 |
Financing Receivables 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 17 |
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 | 21 | 31 |
Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 45 | 42 |
Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 43 |
Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 15 | 16 |
Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 4 |
Financing Receivables 90 Days or More Past Due | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 508 | $ 556 |
ALLOWANCE FOR CREDIT LOSSES, 60
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | $ 1,025 | $ 1,045 | |
Loans accruing and 90 days or more past due | 24 | 26 | |
GNMA | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans sold with right to repurchase | 28 | 32 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 414 | 387 | |
Loans accruing and 90 days or more past due | 4 | 2 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 376 | 322 | |
Loans accruing and 90 days or more past due | 4 | 2 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 38 | 50 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 0 | 15 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 611 | 658 | |
Loans accruing and 90 days or more past due | 20 | 24 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | [1] | 135 | 144 |
Loans accruing and 90 days or more past due | [1] | 12 | 18 |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 81 | 98 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 235 | 243 | |
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 | 27 | 32 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 25 | 33 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 55 | 50 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Education | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 35 | 38 | |
Loans accruing and 90 days or more past due | 3 | 5 | |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 15 | 16 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 3 | 4 | |
Loans accruing and 90 days or more past due | $ 5 | $ 1 | |
[1] | Nonperforming balances exclude first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration. These loans, which are accruing and 90 days or more past due, totaled $12 million and $18 million as of June 30, 2017 and December 31, 2016, respectively. Nonperforming balances also exclude guaranteed residential mortgage loans sold to GNMA for which the Company has the right, but not the obligation, to repurchase. These loans totaled $28 million and $32 million as of June 30, 2017 and December 31, 2016, respectively. These loans are consolidated on the Company’s Consolidated Balance Sheets. |
ALLOWANCE FOR CREDIT LOSSES, 61
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 37 | $ 49 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | 0 | 0 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 37 | $ 49 |
ALLOWANCE FOR CREDIT LOSSES, 62
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.94% | 0.97% |
Nonperforming assets as a percentage of total assets | 0.70% | 0.73% |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.38% | 0.36% |
Nonperforming assets as a percentage of total assets | 0.26% | 0.26% |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming loans and leases as a percentage of total loans and leases | 0.56% | 0.61% |
Nonperforming assets as a percentage of total assets | 0.44% | 0.47% |
ALLOWANCE FOR CREDIT LOSSES, 63
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, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,383 | $ 1,465 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 441 | 433 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 395 | 364 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 46 | 53 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 16 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 942 | 1,032 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 163 | 200 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 80 | 103 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 259 | 272 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 30 | 36 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 25 | 36 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 259 | 252 |
Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 66 | 80 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 32 | 37 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 28 | 16 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 336 | 404 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 38 |
Financing Receivables, 30 to 59 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 36 |
Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3 | 1 |
Financing Receivables, 30 to 59 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1 |
Financing Receivables, 30 to 59 Days Past Due | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 324 | 366 |
Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 35 | 53 |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 23 |
Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 52 | 57 |
Financing Receivables, 30 to 59 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 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 | 3 | 3 |
Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 172 | 172 |
Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 18 | 24 |
Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 13 | 8 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 121 | 116 |
Financing Receivables 60 To 89 Days Past Due | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 6 |
Financing Receivables 60 To 89 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6 | 4 |
Financing Receivables 60 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 2 |
Financing Receivables 60 To 89 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Financing Receivables 60 To 89 Days Past Due | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 110 | 110 |
Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 7 |
Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 22 | 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 | 5 | 5 |
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 | 2 |
Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 42 | 38 |
Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 13 |
Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 9 |
Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 4 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 926 | 945 |
Financing Receivables 90 Days or More Past Due | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 418 | 389 |
Financing Receivables 90 Days or More Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 380 | 324 |
Financing Receivables 90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 50 |
Financing Receivables 90 Days or More Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 15 |
Financing Receivables 90 Days or More Past Due | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 508 | 556 |
Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 118 | 135 |
Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 63 | 73 |
Financing Receivables 90 Days or More Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 185 | 195 |
Financing Receivables 90 Days or More Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 17 |
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 | 21 | 31 |
Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 45 | 42 |
Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 43 |
Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 15 | 16 |
Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 7 | $ 4 |
ALLOWANCE FOR CREDIT LOSSES, 64
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | $ 595 | $ 634 |
Allowance on Impaired Loans | 85 | 106 |
Impaired Loans Without a Related Allowance | 700 | 589 |
Unpaid Contractual Balance | 1,547 | 1,443 |
Total Recorded Investment in Impaired Loans | 1,295 | 1,223 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 251 | 286 |
Allowance on Impaired Loans | 42 | 63 |
Impaired Loans Without a Related Allowance | 240 | 138 |
Unpaid Contractual Balance | 566 | 475 |
Total Recorded Investment in Impaired Loans | 491 | 424 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 216 | 247 |
Allowance on Impaired Loans | 31 | 55 |
Impaired Loans Without a Related Allowance | 237 | 134 |
Unpaid Contractual Balance | 527 | 431 |
Total Recorded Investment in Impaired Loans | 453 | 381 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 35 | 39 |
Allowance on Impaired Loans | 11 | 8 |
Impaired Loans Without a Related Allowance | 3 | 4 |
Unpaid Contractual Balance | 39 | 44 |
Total Recorded Investment in Impaired Loans | 38 | 43 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 344 | 348 |
Allowance on Impaired Loans | 43 | 43 |
Impaired Loans Without a Related Allowance | 460 | 451 |
Unpaid Contractual Balance | 981 | 968 |
Total Recorded Investment in Impaired Loans | 804 | 799 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 46 | 37 |
Allowance on Impaired Loans | 3 | 2 |
Impaired Loans Without a Related Allowance | 142 | 141 |
Unpaid Contractual Balance | 247 | 235 |
Total Recorded Investment in Impaired Loans | 188 | 178 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 49 | 51 |
Allowance on Impaired Loans | 5 | 3 |
Impaired Loans Without a Related Allowance | 91 | 94 |
Unpaid Contractual Balance | 187 | 191 |
Total Recorded Investment in Impaired Loans | 140 | 145 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 24 | 23 |
Allowance on Impaired Loans | 2 | 1 |
Impaired Loans Without a Related Allowance | 186 | 173 |
Unpaid Contractual Balance | 259 | 240 |
Total Recorded Investment in Impaired Loans | 210 | 196 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 37 | 41 |
Allowance on Impaired Loans | 3 | 4 |
Impaired Loans Without a Related Allowance | 17 | 19 |
Unpaid Contractual Balance | 64 | 70 |
Total Recorded Investment in Impaired Loans | 54 | 60 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 4 | 2 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 5 | 7 |
Unpaid Contractual Balance | 13 | 13 |
Total Recorded Investment in Impaired Loans | 9 | 9 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 4 | 4 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 18 | 15 |
Unpaid Contractual Balance | 27 | 25 |
Total Recorded Investment in Impaired Loans | 22 | 19 |
Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 146 | 154 |
Allowance on Impaired Loans | 22 | 25 |
Impaired Loans Without a Related Allowance | 0 | 1 |
Unpaid Contractual Balance | 146 | 155 |
Total Recorded Investment in Impaired Loans | 146 | 155 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 25 | 26 |
Allowance on Impaired Loans | 7 | 6 |
Impaired Loans Without a Related Allowance | 0 | 0 |
Unpaid Contractual Balance | 26 | 26 |
Total Recorded Investment in Impaired Loans | 25 | 26 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 9 | 10 |
Allowance on Impaired Loans | 1 | 2 |
Impaired Loans Without a Related Allowance | 1 | 1 |
Unpaid Contractual Balance | 12 | 13 |
Total Recorded Investment in Impaired Loans | $ 10 | $ 11 |
ALLOWANCE FOR CREDIT LOSSES, 65
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | $ 9 | $ 10 | $ 18 | $ 18 |
Average Recorded Investment | 1,259 | 1,175 | 1,231 | 1,090 |
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 2 | 2 | 3 |
Average Recorded Investment | 469 | 382 | 455 | 309 |
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 2 | 2 | 3 |
Average Recorded Investment | 431 | 324 | 414 | 248 |
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 38 | 58 | 41 | 61 |
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 8 | 8 | 16 | 15 |
Average Recorded Investment | 790 | 793 | 776 | 781 |
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 1 | 3 | 2 |
Average Recorded Investment | 182 | 160 | 178 | 156 |
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 3 | 3 |
Average Recorded Investment | 141 | 158 | 140 | 154 |
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 2 | 3 | 3 |
Average Recorded Investment | 203 | 184 | 197 | 182 |
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 2 | 2 |
Average Recorded Investment | 54 | 66 | 54 | 67 |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 9 | 10 | 9 | 9 |
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 20 | 15 | 18 | 14 |
Education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | 4 | 4 |
Average Recorded Investment | 146 | 161 | 146 | 160 |
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 1 | 1 |
Average Recorded Investment | 25 | 26 | 24 | 26 |
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | $ 10 | $ 13 | $ 10 | $ 13 |
ALLOWANCE FOR CREDIT LOSSES, 66
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, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | $ 2 | $ 1 | $ 3 | $ 1 | |
Charge-offs Resulting from Modification | 1 | 1 | 2 | 1 | |
Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 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 | 1 | 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 | |
Leases | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 2 | 2 | |
Charge-offs Resulting from Modification | 1 | 1 | 2 | 1 | |
Residential mortgages | |||||
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 | |
Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | (1) | 0 | (1) | |
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 | 0 | 0 | 0 | |
Home equity loans serviced by others | |||||
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 | |
Home equity lines of credit serviced by others | |||||
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 | |
Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 1 | 1 | 2 | 1 | |
Education | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 1 | 2 | |
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 | 2 | 1 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | 0 | |
Other retail | |||||
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 | |
Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 719 | 615 | 1,389 | 1,216 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 5 | $ 18 | $ 15 |
Post-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 5 | $ 19 | $ 15 |
Interest Rate Reduction | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 2 | 3 | 4 | 8 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Interest Rate Reduction | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 2 | 3 | 4 | 8 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Interest Rate Reduction | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Leases | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 717 | 612 | 1,385 | 1,208 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 5 | $ 17 | $ 14 |
Post-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 5 | $ 18 | $ 14 |
Interest Rate Reduction | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 25 | 3 | 43 | 25 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 4 | $ 1 | $ 5 | $ 4 |
Post-Modification Outstanding Recorded Investment | [1] | $ 3 | $ 1 | $ 5 | $ 4 |
Interest Rate Reduction | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 22 | 15 | 43 | 29 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1] | $ 2 | $ 1 | $ 3 | $ 2 |
Interest Rate Reduction | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 14 | 6 | 30 | 13 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Interest Rate Reduction | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 5 | 3 | 11 | 6 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 0 |
Interest Rate Reduction | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 2 | 2 | 3 | 2 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 25 | 30 | 65 | 51 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 | $ 1 |
Interest Rate Reduction | Education | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 624 | 552 | 1,189 | 1,081 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 4 | $ 3 | $ 7 | $ 6 |
Post-Modification Outstanding Recorded Investment | [1] | $ 4 | $ 3 | $ 7 | $ 6 |
Interest Rate Reduction | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 110 | 73 | 190 | 146 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 27 | $ 10 | $ 37 | $ 19 |
Post-Modification Outstanding Recorded Investment | [2] | $ 27 | $ 10 | $ 37 | $ 19 |
Maturity Extension | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 11 | 28 | 18 | 54 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 4 | $ 14 | $ 8 |
Post-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 4 | $ 14 | $ 8 |
Maturity Extension | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 11 | 28 | 18 | 54 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 4 | $ 14 | $ 8 |
Post-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 4 | $ 14 | $ 8 |
Maturity Extension | Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Leases | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 99 | 45 | 172 | 92 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 14 | $ 6 | $ 23 | $ 11 |
Post-Modification Outstanding Recorded Investment | [2] | $ 14 | $ 6 | $ 23 | $ 11 |
Maturity Extension | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 25 | 10 | 36 | 16 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 2 | $ 8 | $ 3 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 2 | $ 8 | $ 3 |
Maturity Extension | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 21 | 1 | 37 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 2 | $ 0 | $ 4 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 2 | $ 0 | $ 4 |
Maturity Extension | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 67 | 8 | 118 | 27 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 9 | $ 1 | $ 15 | $ 3 |
Post-Modification Outstanding Recorded Investment | [2] | $ 9 | $ 1 | $ 15 | $ 3 |
Maturity Extension | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 3 | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 0 | $ 1 |
Maturity Extension | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 7 | 3 | 15 | 8 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Education | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Maturity Extension | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 578 | 742 | 1,121 | 1,336 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 55 | $ 48 | $ 83 | $ 93 |
Post-Modification Outstanding Recorded Investment | [3] | $ 53 | $ 47 | $ 80 | $ 91 |
Other | Commercial Banking | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 4 | 4 | 5 | 9 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 32 | $ 20 | $ 36 | $ 41 |
Post-Modification Outstanding Recorded Investment | [3] | $ 31 | $ 21 | $ 35 | $ 41 |
Other | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 4 | 4 | 4 | 9 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 32 | $ 20 | $ 32 | $ 41 |
Post-Modification Outstanding Recorded Investment | [3] | $ 31 | $ 21 | $ 31 | $ 41 |
Other | 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 |
Other | Leases | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 0 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 4 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 4 | $ 0 |
Other | Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 574 | 738 | 1,116 | 1,327 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 23 | $ 28 | $ 47 | $ 52 |
Post-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 26 | $ 45 | $ 50 |
Other | Residential mortgages | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 44 | 67 | 92 | 131 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 7 | $ 10 | $ 15 |
Post-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 7 | $ 10 | $ 15 |
Other | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 42 | 94 | 144 | 181 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 5 | $ 8 | $ 11 |
Post-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 5 | $ 8 | $ 11 |
Other | Home equity lines of credit | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 112 | 92 | 187 | 124 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 8 | $ 6 | $ 14 | $ 8 |
Post-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 6 | $ 13 | $ 8 |
Other | Home equity loans serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 16 | 16 | 30 | 34 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 1 | $ 1 |
Other | Home equity lines of credit serviced by others | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 2 | 5 | 13 | 13 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 1 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 1 | $ 0 |
Other | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 349 | 348 | 625 | 539 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 7 | $ 11 | $ 10 |
Post-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 6 | $ 10 | $ 9 |
Other | Education | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 7 | 111 | 22 | 297 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 2 | $ 2 | $ 6 |
Post-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 2 | $ 2 | $ 6 |
Other | 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 |
Other | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 2 | 5 | 3 | 8 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | ||||
[2] | Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | ||||
[3] | Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, and capitalizing arrearages. 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, 67
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, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 272 | 238 | 536 | 502 |
Balance Defaulted | $ | $ 12 | $ 12 | $ 26 | $ 26 |
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 4 | 9 | 6 | 12 |
Balance Defaulted | $ | $ 1 | $ 3 | $ 5 | $ 3 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 4 | 8 | 5 | 11 |
Balance Defaulted | $ | $ 1 | $ 3 | $ 1 | $ 3 |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 1 | 1 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 4 | $ 0 |
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 268 | 229 | 530 | 490 |
Balance Defaulted | $ | $ 11 | $ 9 | $ 21 | $ 23 |
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 41 | 35 | 86 | 89 |
Balance Defaulted | $ | $ 4 | $ 4 | $ 10 | $ 12 |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 14 | 32 | 23 | 50 |
Balance Defaulted | $ | $ 1 | $ 2 | $ 1 | $ 3 |
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 65 | 20 | 100 | 45 |
Balance Defaulted | $ | $ 4 | $ 1 | $ 7 | $ 4 |
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 9 | 11 | 10 | 21 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 6 | 4 | 11 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 27 | 22 | 61 | 37 |
Balance Defaulted | $ | $ 1 | $ 1 | $ 1 | $ 1 |
Education | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 9 | 18 | 16 | 31 |
Balance Defaulted | $ | $ 0 | $ 1 | $ 0 | $ 1 |
Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 102 | 85 | 228 | 206 |
Balance Defaulted | $ | $ 1 | $ 0 | $ 2 | $ 1 |
Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 2 | 0 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 68
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,220 | $ 1,592 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 484 | 566 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 370 | 550 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 366 | 476 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
High loan-to-value | Education | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,706 | 1,583 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,705 | 1,582 |
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 | Education | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1 | 1 |
Low introductory rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 142 | 112 |
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 | 0 |
Low introductory rate | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 142 | 112 |
Low introductory rate | Education | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3 | 3 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3 | 3 |
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 | Education | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,071 | 3,290 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,192 | 2,151 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 370 | 550 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 366 | 476 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 142 | 112 |
Credit risk, loans with increased credit exposure | Education | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1 | $ 1 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
LIHTC Investments | ||||
Variable Interest Entity | ||||
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, 2017 | Dec. 31, 2016 |
LIHTC Investments | ||
Variable Interest Entity | ||
LIHTC investment included in other assets | $ 865 | $ 793 |
LIHTC unfunded commitments included in other liabilities | 484 | 428 |
Renewable Energy | ||
Variable Interest Entity | ||
Renewable energy investments included in other assets | $ 266 | $ 220 |
VARIABLE INTEREST ENTITIES - 71
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Variable Interest Entity | ||||
Tax credits included in income tax expense | $ 22 | $ 14 | $ 43 | $ 29 |
Amortization expense included in income tax expense | 22 | 16 | 45 | 31 |
Other tax benefits included in income tax expense | $ 8 | $ 7 | $ 15 | $ 13 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | $ 1,544 | $ 1,022 | ||
Repurchased mortgage loans | $ 0 | $ 2 | 1 | 4 |
Mortgage servicing fees | 14 | 13 | 27 | 26 |
Mortgage servicing rights valuation (recovery) charge-off | (1) | 4 | ||
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | 729 | 543 | 1,500 | 1,000 |
Gain on sale of residential mortgages | 19 | 16 | 29 | 30 |
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage servicing rights valuation (recovery) charge-off | $ (1) | $ (1) | $ (1) | $ 4 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Valuation allowance for servicing assets: | ||||
Valuation (recoveries) charge-offs | $ (1) | $ 4 | ||
Residential mortgages | ||||
MSRs: | ||||
Balance as of beginning of period | $ 170 | $ 169 | 168 | 173 |
Amount capitalized | 8 | 5 | 18 | 10 |
Amortization | (8) | (8) | (16) | (17) |
Carrying amount before valuation allowance | 170 | 166 | 170 | 166 |
Valuation allowance for servicing assets: | ||||
Balance at beginning of period | 5 | 14 | 5 | 9 |
Valuation (recoveries) charge-offs | (1) | (1) | (1) | 4 |
Balance at end of period | 4 | 13 | 4 | 13 |
Net carrying value of MSRs | $ 166 | $ 153 | $ 166 | $ 153 |
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, 2017 | Dec. 31, 2016 | |
Residential mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 184 | $ 182 |
Weighted average life (in years) | 5 years 7 months 6 days | 5 years 8 months 12 days |
Weighted average constant prepayment rate | 10.80% | 10.80% |
Weighted average discount rate | 9.90% | 9.70% |
Minimum | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 2 years 4 months 24 days | 2 years 7 months 6 days |
Weighted average constant prepayment rate | 9.40% | 8.80% |
Weighted average discount rate | 9.10% | 9.10% |
Maximum | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 6 years 10 months 24 days | 7 years 3 months 18 days |
Weighted average constant prepayment rate | 19.80% | 22.30% |
Weighted average discount rate | 12.10% | 12.10% |
MORTGAGE BANKING - Economic A75
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) - Residential mortgages | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Weighted average life (in years) | 6 years 2 months 12 days | 5 years 10 months 24 days | 6 years 7 months 6 days | 6 years |
Weighted average constant prepayment rate | 11.10% | 11.30% | 9.90% | 11.10% |
Weighted average discount rate | 9.90% | 9.70% | 9.90% | 9.70% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 | $ 9 | $ 9 |
Decline in fair value from a 100 basis point decrease in interest rates | 18 | 25 |
Weighted average discount rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from a 50 basis point increase in weighted average discount rate | 3 | 3 |
Decline in fair value from a 100 basis point increase in weighted average discount rate | $ 6 | $ 6 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Short-term borrowed funds | $ 2,433 | $ 4,359 |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | ||
Debt Instrument [Line Items] | ||
Short-term borrowed funds | 10,000 | 13,400 |
Federal Home Loan advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | 6,500 | $ 2,800 |
Federal Reserve Bank advances | ||
Debt Instrument [Line Items] | ||
Available borrowing capacity | $ 37,500 |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 2,433 | $ 4,359 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 0 | 533 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 429 | 615 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 2,004 | $ 3,211 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Federal funds purchased and securities sold under agreements to repurchase | ||||||
Short-term Debt [Line Items] | ||||||
Weighted-average interest rate at period end | [1] | 0.00% | 0.00% | 0.00% | 0.00% | 0.26% |
Maximum amount outstanding at month-end during the period | [2] | $ 1,075 | $ 968 | $ 1,174 | $ 1,274 | $ 1,522 |
Average amount outstanding during the period | [2] | $ 808 | $ 974 | $ 845 | $ 927 | $ 947 |
Weighted-average interest rate during the period | [1] | 0.36% | 0.08% | 0.28% | 0.07% | 0.09% |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||||||
Short-term Debt [Line Items] | ||||||
Weighted-average interest rate at period end | [1] | 1.31% | 0.65% | 1.31% | 0.65% | 0.94% |
Maximum amount outstanding at month-end during the period | $ 2,507 | $ 4,764 | $ 3,508 | $ 4,764 | $ 5,461 | |
Average amount outstanding during the period | $ 2,275 | $ 3,743 | $ 2,617 | $ 3,421 | $ 3,207 | |
Weighted-average interest rate during the period | [1] | 1.22% | 0.61% | 1.14% | 0.60% | 0.64% |
[1] | Rates exclude certain hedging costs. | |||||
[2] | Balances are net of certain short-term receivables associated with reverse repurchase agreements, as applicable. |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 13,154 | $ 12,790 | ||
Interest rate swaps | (484) | [1],[2] | (759) | |
Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | (341) | [2] | (609) | |
Citizens Financial Group, Inc. | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 2,318 | |||
Citizens Financial Group, Inc. | Subordinated Debt | 4.150% fixed-rate subordinated debt, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [3] | $ 347 | 347 | |
Interest rate | 4.15% | |||
Principal balance | $ 350 | 350 | ||
Unamortized deferred issuance costs and discount | (3) | (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 | $ 333 | 333 | ||
Interest rate | 5.158% | |||
Citizens Financial Group, Inc. | Subordinated Debt | 3.750% fixed-rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 250 | 250 | ||
Interest rate | 3.75% | |||
Citizens Financial Group, Inc. | Subordinated Debt | 4.023% fixed-rate subordinated debt, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 42 | 42 | ||
Interest rate | 4.023% | |||
Citizens Financial Group, Inc. | Subordinated Debt | 4.350% fixed-rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [4] | $ 249 | 249 | |
Interest rate | 4.35% | |||
Principal balance | $ 250 | 250 | ||
Unamortized deferred issuance costs and discount | (1) | (1) | ||
Citizens Financial Group, Inc. | Subordinated Debt | 4.300% fixed-rate subordinated debt, due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [5] | $ 749 | 749 | |
Interest rate | 4.30% | |||
Principal balance | $ 750 | 750 | ||
Unamortized deferred issuance costs and discount | $ (1) | (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 | 3.56% | |||
Citizens Financial Group, Inc. | Senior Unsecured Notes | 2.375% fixed-rate subordinated debt, due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [6] | $ 348 | 348 | |
Interest rate | 2.375% | |||
Principal balance | $ 350 | 350 | ||
Unamortized deferred issuance costs and discount | (2) | (2) | ||
Banking Subsidiaries | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 10,836 | |||
Banking Subsidiaries | Senior Unsecured Notes | 2.300% senior unsecured notes, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [7],[8] | $ 746 | 745 | |
Interest rate | 2.30% | |||
Principal balance | $ 750 | 750 | ||
Unamortized deferred issuance costs and discount | (1) | (2) | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[9] | $ 748 | 747 | |
Interest rate | 2.45% | |||
Principal balance | $ 750 | 750 | ||
Unamortized deferred issuance costs and discount | (2) | (3) | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.500% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[10] | $ 743 | 741 | |
Interest rate | 2.50% | |||
Principal balance | $ 750 | 750 | ||
Unamortized deferred issuance costs and discount | (1) | (2) | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[11] | $ 698 | 0 | |
Interest rate | 2.25% | |||
Principal balance | $ 700 | |||
Unamortized deferred issuance costs and discount | (3) | |||
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[12] | 299 | 0 | |
Principal balance | 300 | |||
Unamortized deferred issuance costs and discount | (1) | |||
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[13] | 249 | 0 | |
Principal balance | 250 | |||
Unamortized deferred issuance costs and discount | (1) | |||
Banking Subsidiaries | Senior Unsecured Notes | 2.200% senior unsecured notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[14] | $ 498 | 0 | |
Interest rate | 2.20% | |||
Principal balance | $ 500 | |||
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 | [8],[15] | $ 973 | 965 | |
Interest rate | 2.55% | |||
Principal balance | $ 1,000 | 1,000 | ||
Unamortized deferred issuance costs and discount | (4) | (5) | ||
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[16] | 249 | 0 | |
Principal balance | 250 | |||
Unamortized deferred issuance costs and discount | (1) | |||
Banking Subsidiaries | Senior Unsecured Notes | 2.650% senior unsecured notes, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | [8],[17] | $ 497 | 0 | |
Interest rate | 2.65% | |||
Principal balance | $ 500 | |||
Unamortized deferred issuance costs and discount | (2) | |||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.300% senior unsecured notes, due 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | (3) | (3) | ||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.500% senior unsecured notes, due 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | (6) | (7) | ||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.250% senior unsecured notes, due 2020 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | 1 | |||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.550% senior unsecured notes, due 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | (23) | (30) | ||
Banking Subsidiaries | Senior Unsecured Notes | Interest rate swaps | 2.650% senior unsecured notes, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate swaps | (1) | |||
Banking Subsidiaries | Federal Home Loan advances | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | 5,112 | 7,264 | ||
Banking Subsidiaries | Other | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowed funds | $ 24 | $ 10 | ||
[1] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. | |||
[2] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. | |||
[3] | These balances are composed of: principal balances of $350 million at June 30, 2017 and December 31, 2016, as well as the impact of ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016. | |||
[4] | These balances are composed of: principal balances of $250 million at June 30, 2017 and December 31, 2016, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016. | |||
[5] | These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016. | |||
[6] | These balances are composed of: principal balance of $350 million at June 30, 2017 and December 31, 2016, as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016. | |||
[7] | These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016, as well as the impact from interest rate swaps of ($3) million at June 30, 2017 and December 31, 2016; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016, respectively. See Note 10 “Derivatives” for further information. | |||
[8] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. | |||
[9] | These balances are composed of: principal balances of $750 million at June 30, 2017 and December 31, 2016, as well as the impact of ($2) million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016, respectively. | |||
[10] | These balances are composed of: principal balance of $750 million at June 30, 2017 and December 31, 2016, as well as the impact from interest rate swaps of ($6) million and ($7) million at June 30, 2017 and December 31, 2016, respectively; and ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016, respectively. See Note 10 “Derivatives” for further information. | |||
[11] | This balance is composed of: principal balance of $700 million at June 30, 2017; impact from interest rate swaps of $1 million and ($3) million of unamortized deferred issuance costs and discount at June 30, 2017. See Note 10 “Derivatives” for further information. | |||
[12] | This balance is composed of: principal balance of $300 million at June 30, 2017, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017. | |||
[13] | These balances are composed of: principal balance of $250 million at June 30, 2017, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017. | |||
[14] | This balance is composed of: principal balance of $500 million at June 30, 2017, as well as the impact of ($2) million of unamortized deferred issuance costs and discount at June 30, 2017. | |||
[15] | These balances are composed of: principal balance of $1.0 billion at June 30, 2017 and December 31, 2016, as well as the impact from interest rate swaps of ($23) million and ($30) million at June 30, 2017 and December 31, 2016, respectively; and ($4) million and ($5) million of unamortized deferred issuance costs and discount at June 30, 2017 and December 31, 2016, respectively. See Note 10 “Derivatives” for further information. | |||
[16] | This balance is composed of: principal balance of $250 million at June 30, 2017, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at June 30, 2017. | |||
[17] | This balance is composed of: principal balance of $500 million at June 30, 2017, as well as the impact from interest rate swaps of ($1) million and ($2) million of unamortized deferred issuance costs and discount at June 30, 2017. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2018 or on demand | $ 5,847 | |
2,019 | 1,491 | |
2,020 | 1,762 | |
2,021 | 1,325 | |
2,022 | 1,099 | |
2023 and thereafter | 1,630 | |
Total | 13,154 | $ 12,790 |
Citizens Financial Group, Inc. | ||
Debt Instrument [Line Items] | ||
2018 or on demand | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 348 | |
2,022 | 347 | |
2023 and thereafter | 1,623 | |
Total | 2,318 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2018 or on demand | 5,847 | |
2,019 | 1,491 | |
2,020 | 1,762 | |
2,021 | 977 | |
2,022 | 752 | |
2023 and thereafter | 7 | |
Total | $ 10,836 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Preferred Stock | |||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, outstanding (in shares) | 250,000 | 250,000 | 250,000 |
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 25 |
Treasury Stock | |||
Treasury stock purchased | $ 130 | $ 260 | |
Treasury stock purchased (in shares) | 7,127,809 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 144 | $ 118 | $ 258 | $ 227 | |
Effective income tax rate | 31.10% | 32.60% | 28.80% | 32.70% | |
U.S. Federal income tax expense and tax rate | 35.00% | 35.00% | |||
Tax settlement | $ 23 | ||||
Deferred taxes, net | $ 740 | 740 | $ 714 | ||
Unrecognized tax benefits | $ 7 | $ 7 | $ 42 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative [Line Items] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 1 |
Derivative liabilities | |
Derivative [Line Items] | |
Increase (decrease) in derivative liabilities | (500) |
Derivative assets | |
Derivative [Line Items] | |
Increase (decrease) in derivative assets | $ (219) |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Derivative Assets | ||||
Derivative assets | $ 484 | [1],[2] | $ 759 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [3] | (70) | [1] | (106) |
Less: Cash collateral applied | [3] | (6) | [1] | (26) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 408 | [1] | 627 | |
Derivative Liabilities | ||||
Derivative Liabilities | 403 | [1],[2] | 778 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [3] | (70) | [1] | (106) |
Less: Cash collateral applied | [3] | (174) | [1] | (13) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 159 | [1] | 659 | |
Derivatives not designated as hedging instruments: | ||||
Derivative Assets | ||||
Derivative assets | 480 | [1] | 707 | |
Derivative Liabilities | ||||
Derivative Liabilities | 400 | [1] | 585 | |
Interest rate swaps | ||||
Derivative Assets | ||||
Derivative assets | 341 | [2] | 609 | |
Derivative Liabilities | ||||
Derivative Liabilities | 277 | [2] | 645 | |
Interest rate swaps | Derivatives designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 16,800 | 13,350 | |
Derivative Assets | ||||
Derivative assets | 4 | [1] | 52 | |
Derivative Liabilities | ||||
Derivative Liabilities | 3 | [1] | 193 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 65,980 | 54,656 | |
Derivative Assets | ||||
Derivative assets | 337 | [1] | 557 | |
Derivative Liabilities | ||||
Derivative Liabilities | 274 | [1] | 452 | |
Foreign exchange contracts | ||||
Derivative Assets | ||||
Derivative assets | 132 | [2] | 134 | |
Derivative Liabilities | ||||
Derivative Liabilities | 121 | [2] | 126 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 10,120 | 8,039 | |
Derivative Assets | ||||
Derivative assets | 132 | [1] | 134 | |
Derivative Liabilities | ||||
Derivative Liabilities | 121 | [1] | 126 | |
Other contracts | ||||
Derivative Assets | ||||
Derivative assets | 11 | [2] | 16 | |
Derivative Liabilities | ||||
Derivative Liabilities | 5 | [2] | 7 | |
Other contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 1,380 | 1,498 | |
Derivative Assets | ||||
Derivative assets | 11 | [1] | 16 | |
Derivative Liabilities | ||||
Derivative Liabilities | $ 5 | [1] | $ 7 | |
[1] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. | |||
[2] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. | |||
[3] | Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | |||
[4] | 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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 22 | $ 11 | $ 32 | $ 17 |
Hedge of interest rate risk | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | 16 | 32 | 10 | 84 |
Hedged Item | (15) | (31) | (9) | (83) |
Hedge Ineffectiveness | $ 1 | $ 1 | $ 1 | $ 1 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest expense | $ (179) | $ (123) | $ (334) | $ (238) | |
Amount Reclassified from AOCI | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portion of gain recognized in OCI | [1] | 42 | 21 | 37 | 75 |
Amount Reclassified from AOCI | Net Unrealized (Losses) Gains on Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | [2] | 8 | 21 | 20 | 43 |
Amounts reclassified from OCI to interest expense | [2] | $ (1) | $ (8) | $ (3) | $ (16) |
[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 income or 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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | $ 22 | $ 11 | $ 32 | $ 17 | |
Customer derivative contracts | Foreign Exchange and Interest Rate Products | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | 83 | (2) | 80 | 95 |
Customer derivative contracts | Foreign Exchange and Interest Rate Products | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | 78 | (23) | 96 | 28 |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | (2) | 3 | 3 | 7 |
Economic hedges | Foreign Exchange and Interest Rate Products | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (71) | 15 | (56) | (76) |
Economic hedges | Foreign Exchange and Interest Rate Products | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (71) | 23 | (85) | (27) |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | $ 5 | $ (5) | $ (6) | $ (10) |
[1] | Reported in foreign exchange and interest rate products on the Consolidated Statements of Operations. | ||||
[2] | Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)counterparty | Dec. 31, 2016USD ($) | Dec. 31, 2003 | |
Letters of Credit [Abstract] | |||
Letters of credit outstanding | $ 3 | $ 3 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements | $ 22 | 19 | |
Risk participation agreements number of counterparties | counterparty | 96 | ||
Risk participation agreements, Maximum term | 10 years | ||
Commercial real estate loans held for sale | Purchase commitment | |||
Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 185 | 127 | |
Unsettled commercial loan trade sales | $ 203 | 177 | |
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 | $ 2 | $ 3 | |
Remaining obligation due | 42 | ||
Education | |||
Commitments [Abstract] | |||
Aggregate purchase principal balance | $ 750 | ||
Extension period | 1 year | ||
Termination fee | $ 1 | ||
Education | Minimum | |||
Commitments [Abstract] | |||
Aggregate purchase principal balance | 750 | ||
Education | Maximum | |||
Commitments [Abstract] | |||
Aggregate purchase principal balance | $ 1,500 | ||
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 CONTINGENCIES90
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | ||
Commitment amount | $ 64,220 | $ 62,918 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 61,988 | 60,872 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,053 | 1,892 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 41 | 40 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 66 | 43 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 42 | 44 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 22 | 19 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 8 | $ 8 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other income | $ 6 | $ 22 | $ 31 | $ 43 | |
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 | $ 0 | ||
Other income | 1 | 2 | 3 | 2 | |
Mortgage Banking Fees | Residential loans held for sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Changes in fair value | $ 3 | $ 6 | $ 10 | $ 12 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 520 | $ 583 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 520 | 583 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 386 | 504 |
Aggregate Unpaid Principal | 386 | 505 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 0 | (1) |
Level 2 | Commercial real estate loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 134 | 79 |
Aggregate Unpaid Principal | 134 | 79 |
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, 2017 | Dec. 31, 2016 | ||
Assets | ||||
Securities available for sale | [1] | $ 19,257 | $ 19,501 | |
Loans held for sale, at fair value | 520 | 583 | ||
Derivative assets | 484 | [2],[3] | 759 | |
Money market mutual fund | 92 | 91 | ||
Other investments | 5 | 5 | ||
Total other investment securities, at fair value | 97 | 96 | ||
Total assets | 20,358 | 20,939 | ||
Liabilities | ||||
Total derivative liabilities | 403 | [2],[3] | 778 | |
Total liabilities | 403 | 778 | ||
Interest rate swaps | ||||
Assets | ||||
Derivative assets | 341 | [3] | 609 | |
Liabilities | ||||
Total derivative liabilities | 277 | [3] | 645 | |
Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 132 | [3] | 134 | |
Liabilities | ||||
Total derivative liabilities | 121 | [3] | 126 | |
Other contracts | ||||
Assets | ||||
Derivative assets | 11 | [3] | 16 | |
Liabilities | ||||
Total derivative liabilities | 5 | [3] | 7 | |
Mortgage-backed securities | ||||
Assets | ||||
Securities available for sale | 19,238 | 19,446 | ||
State and political subdivisions | ||||
Assets | ||||
Securities available for sale | 7 | 8 | ||
Equity securities | ||||
Assets | ||||
Securities available for sale | 17 | |||
U.S. Treasury and other | ||||
Assets | ||||
Securities available for sale | 12 | 30 | ||
Residential loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 386 | 504 | ||
Commercial loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 134 | 79 | ||
Level 1 | ||||
Assets | ||||
Securities available for sale | 12 | 30 | ||
Loans held for sale, at fair value | 0 | 0 | ||
Derivative assets | 0 | [3] | 0 | |
Money market mutual fund | 92 | 91 | ||
Other investments | 0 | 0 | ||
Total other investment securities, at fair value | 92 | 91 | ||
Total assets | 104 | 121 | ||
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Total liabilities | 0 | 0 | ||
Level 1 | Interest rate swaps | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Level 1 | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Level 1 | Other contracts | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 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 | |||
Level 1 | U.S. Treasury and other | ||||
Assets | ||||
Securities available for sale | 12 | 30 | ||
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 | 19,245 | 19,471 | ||
Loans held for sale, at fair value | 520 | 583 | ||
Derivative assets | 484 | [3] | 759 | |
Money market mutual fund | 0 | 0 | ||
Other investments | 5 | 5 | ||
Total other investment securities, at fair value | 5 | 5 | ||
Total assets | 20,254 | 20,818 | ||
Liabilities | ||||
Total derivative liabilities | 403 | [3] | 778 | |
Total liabilities | 403 | 778 | ||
Level 2 | Interest rate swaps | ||||
Assets | ||||
Derivative assets | 341 | [3] | 609 | |
Liabilities | ||||
Total derivative liabilities | 277 | [3] | 645 | |
Level 2 | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 132 | [3] | 134 | |
Liabilities | ||||
Total derivative liabilities | 121 | [3] | 126 | |
Level 2 | Other contracts | ||||
Assets | ||||
Derivative assets | 11 | [3] | 16 | |
Liabilities | ||||
Total derivative liabilities | 5 | [3] | 7 | |
Level 2 | Mortgage-backed securities | ||||
Assets | ||||
Securities available for sale | 19,238 | 19,446 | ||
Level 2 | State and political subdivisions | ||||
Assets | ||||
Securities available for sale | 7 | 8 | ||
Level 2 | Equity securities | ||||
Assets | ||||
Securities available for sale | 17 | |||
Level 2 | U.S. Treasury and other | ||||
Assets | ||||
Securities available for sale | 0 | 0 | ||
Level 2 | Residential loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 386 | 504 | ||
Level 2 | Commercial loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 134 | 79 | ||
Level 3 | ||||
Assets | ||||
Securities available for sale | 0 | 0 | ||
Loans held for sale, at fair value | 0 | 0 | ||
Derivative assets | 0 | [3] | 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 | [3] | 0 | |
Total liabilities | 0 | 0 | ||
Level 3 | Interest rate swaps | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Level 3 | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Level 3 | Other contracts | ||||
Assets | ||||
Derivative assets | 0 | [3] | 0 | |
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 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 | |||
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. | |||
[2] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. | |||
[3] | Amounts reflect variation margin payments that are characterized as settlement per the rules of the Company’s central counterparties that became effective January 3, 2017. |
FAIR VALUE MEASUREMENTS - Sch94
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ (8) | $ (6) | $ (27) | $ (11) |
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 | 1 | 1 | (4) |
Foreclosed assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | (1) | (1) | (2) | (2) |
Leased 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 | $ (15) | $ 0 | $ (15) | $ 0 |
FAIR VALUE MEASUREMENTS - Sch95
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 341 | $ 355 |
MSRs | 184 | 182 |
Foreclosed assets | 33 | 44 |
Leased assets | 137 | 158 |
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 |
Leased assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 341 | 355 |
MSRs | 0 | 0 |
Foreclosed assets | 33 | 44 |
Leased assets | 137 | 158 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 184 | 182 |
Foreclosed assets | 0 | 0 |
Leased assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch96
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity, carrying value | $ 4,967 | $ 5,071 |
Securities held-to-maturity, fair value | 4,986 | 5,058 |
Other investment securities, at cost, carrying value | 794 | 942 |
Other investment securities, at cost, fair value | 794 | 942 |
Other loans held for sale, carrying value | 187 | 42 |
Other loans held for sale, fair value | 187 | 42 |
Loans and leases, carrying value | 109,046 | 107,669 |
Loans and leases, fair value | 109,323 | 107,537 |
Deposits, carrying value | 113,613 | 109,804 |
Deposits, fair value | 113,582 | 109,796 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 429 | 1,148 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 429 | 1,148 |
Other short-term borrowed funds, carrying value | 2,004 | 3,211 |
Other short-term borrowed funds, fair value | 2,004 | 3,211 |
Long-term borrowed funds, carrying value | 13,154 | 12,790 |
Long-term borrowed funds, fair value | 13,275 | 12,849 |
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 | 4,967 | 5,071 |
Securities held-to-maturity, fair value | 4,986 | 5,058 |
Other investment securities, at cost, carrying value | 794 | 942 |
Other investment securities, at cost, fair value | 794 | 942 |
Other loans held for sale, carrying value | 0 | 0 |
Other loans held for sale, fair value | 0 | 0 |
Loans and leases, carrying value | 341 | 355 |
Loans and leases, fair value | 341 | 355 |
Deposits, carrying value | 113,613 | 109,804 |
Deposits, fair value | 113,582 | 109,796 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 429 | 1,148 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 429 | 1,148 |
Other short-term borrowed funds, carrying value | 2,004 | 3,211 |
Other short-term borrowed funds, fair value | 2,004 | 3,211 |
Long-term borrowed funds, carrying value | 13,154 | 12,790 |
Long-term borrowed funds, fair value | 13,275 | 12,849 |
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 | 187 | 42 |
Other loans held for sale, fair value | 187 | 42 |
Loans and leases, carrying value | 108,705 | 107,314 |
Loans and leases, fair value | 108,982 | 107,182 |
Deposits, carrying value | 0 | 0 |
Deposits, fair value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 |
Other short-term borrowed funds, carrying value | 0 | 0 |
Other short-term borrowed funds, fair value | 0 | 0 |
Long-term borrowed funds, carrying value | 0 | 0 |
Long-term borrowed funds, fair value | $ 0 | $ 0 |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017USD ($)subsidiary$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2018$ / shares | Dec. 31, 2017$ / shares | Jun. 30, 2017USD ($)subsidiary$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 28, 2017USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Common share dividends | $ 71,000,000 | $ 64,000,000 | $ 143,000,000 | $ 117,000,000 | |||
Treasury stock purchased | $ 130,000,000 | 260,000,000 | |||||
Preferred share dividends | $ 7,000,000 | $ 7,000,000 | |||||
Common share dividends (in Dollars per Share) | $ / shares | $ 0.14 | $ 0.12 | $ 0.28 | $ 0.22 | |||
Share repurchase plan, authorized amount | $ 850,000,000 | ||||||
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] | |||||||
Common share dividends (in Dollars per Share) | $ / shares | $ 0.22 | $ 0.18 |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | |||
Actual | [1] | $ 14,057 | $ 13,822 |
Minimum Capital Adequacy | [1] | 7,232 | 6,348 |
Classification as Well-capitalized | [1] | $ 8,175 | $ 8,051 |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | |||
Actual | [1] | 11.20% | 11.20% |
Minimum Capital Adequacy | [1],[2] | 5.75% | 5.125% |
Classification as Well-capitalized | [1],[3] | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | |||
Actual | [4] | $ 14,304 | $ 14,069 |
Minimum Capital Adequacy | [4] | 9,119 | 8,206 |
Classification as Well-capitalized | [4] | $ 10,062 | $ 9,909 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [4] | 11.40% | 11.40% |
Minimum Capital Adequacy | [2],[4] | 7.25% | 6.625% |
Classification as Well-capitalized | [3],[4] | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets (Amount) | |||
Actual | [5] | $ 17,586 | $ 17,347 |
Minimum Capital Adequacy | [5] | 11,634 | 10,683 |
Classification as Well-capitalized | [5] | $ 12,577 | $ 12,386 |
Total Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [5] | 14.00% | 14.00% |
Minimum Capital Adequacy | [2],[5] | 9.25% | 8.625% |
Classification as Well-capitalized | [3],[5] | 10.00% | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | |||
Actual | [6] | $ 14,304 | $ 14,069 |
Minimum Capital Adequacy | [6] | 5,776 | 5,667 |
Classification as Well-capitalized | [6] | $ 7,220 | $ 7,084 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | |||
Actual | [6] | 9.90% | 9.90% |
Minimum Capital Adequacy | [2],[6] | 4.00% | 4.00% |
Classification as Well-capitalized | [3],[6] | 5.00% | 5.00% |
Capital Conservation Buffer | 1.25% | 0.625% | |
[1] | “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under U.S. Basel III Standardized approach. | ||
[2] | “Minimum Capital ratio” includes capital conservation buffer of 1.250% for 2017 and 0.625% for 2016; N/A to Tier 1 leverage. | ||
[3] | Presented for informational purposes. Prompt corrective action provisions apply only to the Company’s insured depository institutions - CBNA and CBPA. | ||
[4] | “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 U.S. Basel III Standardized approach. | ||
[5] | “Total capital ratio” is total capital divided by total risk-weighted assets as defined under U.S. Basel III Standardized approach. | ||
[6] | “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under U.S. Basel III Standardized approach. |
RECLASSIFICATIONS OUT OF ACCU99
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 19,747 | $ 19,646 | ||
Other-than-temporary impairment not recognized in earnings on securities | $ 10 | $ 4 | (2) | (21) |
Ending balance | 20,064 | 20,226 | 20,064 | 20,226 |
Total AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (683) | (236) | (668) | (387) |
Other comprehensive income before reclassifications | 82 | 77 | 84 | 264 |
Other-than-temporary impairment not recognized in earnings on securities | 10 | 4 | (2) | (21) |
Amounts reclassified from other comprehensive (loss) income | (2) | (4) | (7) | (15) |
Net other comprehensive income | 90 | 77 | 75 | 228 |
Ending balance | (593) | (159) | (593) | (159) |
Net Unrealized (Losses) Gains on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (97) | 35 | (88) | 10 |
Other comprehensive income before reclassifications | 26 | 13 | 23 | 46 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | (5) | (9) | (11) | (17) |
Net other comprehensive income | 21 | 4 | 12 | 29 |
Ending balance | (76) | 39 | (76) | 39 |
Net Unrealized (Losses) Gains on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (195) | 96 | (186) | (28) |
Other comprehensive income before reclassifications | 56 | 64 | 61 | 218 |
Other-than-temporary impairment not recognized in earnings on securities | 10 | 4 | (2) | (21) |
Amounts reclassified from other comprehensive (loss) income | 1 | 2 | (1) | (3) |
Net other comprehensive income | 67 | 70 | 58 | 194 |
Ending balance | (128) | 166 | (128) | 166 |
Employee Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (391) | (367) | (394) | (369) |
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 | 2 | 3 | 5 | 5 |
Net other comprehensive income | 2 | 3 | 5 | 5 |
Ending balance | $ (389) | $ (364) | $ (389) | $ (364) |
RECLASSIFICATIONS OUT OF ACC100
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | $ (179) | $ (123) | $ (334) | $ (238) | |
Net securities impairment losses recognized in earnings | (4) | (7) | (5) | (8) | |
Salaries and employee benefits | (432) | (432) | (876) | (857) | |
Income before income tax expense | 462 | 361 | 896 | 693 | |
Income tax expense | 144 | 118 | 258 | 227 | |
NET INCOME | 318 | 243 | 638 | 466 | |
Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax expense | 0 | 2 | 3 | 9 | |
NET INCOME | 2 | 4 | 7 | 15 | |
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] | 8 | 21 | 20 | 43 |
Interest expense | [1] | (1) | (8) | (3) | (16) |
Income before income tax expense | 7 | 13 | 17 | 27 | |
Income tax expense | 2 | 4 | 6 | 10 | |
NET INCOME | 5 | 9 | 11 | 17 | |
Reclassification of net securities gains (losses) to net income (loss): | Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Securities gains, net | 3 | 4 | 7 | 13 | |
Net securities impairment losses recognized in earnings | (4) | (7) | (5) | (8) | |
Income before income tax expense | (1) | (3) | 2 | 5 | |
Income tax expense | 0 | (1) | 1 | 2 | |
NET INCOME | (1) | (2) | 1 | 3 | |
Reclassification of changes related to the employee benefit plan: | Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Salaries and employee benefits | (4) | (4) | (9) | (8) | |
Income before income tax expense | (4) | (4) | (9) | (8) | |
Income tax expense | (2) | (1) | (4) | (3) | |
NET INCOME | $ (2) | $ (3) | $ (5) | $ (5) | |
[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 income or expense of the underlying hedged item. |
RECLASSIFICATIONS OUT OF ACC101
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | $ 1,026 | $ 923 | $ 2,031 | $ 1,827 |
Provision for credit losses | 70 | 90 | 166 | 181 |
Noninterest income | 370 | 355 | 749 | 685 |
Noninterest expense | 864 | 827 | 1,718 | 1,638 |
Income before income tax expense | 462 | 361 | 896 | 693 |
Income tax expense | 144 | 118 | 258 | 227 |
NET INCOME | 318 | 243 | 638 | 466 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | 7 | 13 | 17 | 27 |
Noninterest income | (1) | (3) | 2 | 5 |
Noninterest expense | 4 | 4 | 9 | 8 |
Income tax expense | 0 | 2 | 3 | 9 |
NET INCOME | $ 2 | $ 4 | $ 7 | $ 15 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of segments | segment | 2 | |||
Revenues | $ 1,396 | $ 1,278 | $ 2,780 | $ 2,512 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 886 | 821 | 1,744 | 1,610 |
Consumer Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 474 | $ 436 | 954 | $ 835 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,026 | $ 923 | $ 2,031 | $ 1,827 |
Noninterest income | 370 | 355 | 749 | 685 |
Total revenue | 1,396 | 1,278 | 2,780 | 2,512 |
Noninterest expense | 864 | 827 | 1,718 | 1,638 |
Profit before provision for credit losses | 532 | 451 | 1,062 | 874 |
Provision for credit losses | 70 | 90 | 166 | 181 |
Income before income tax expense | 462 | 361 | 896 | 693 |
Income tax expense | 144 | 118 | 258 | 227 |
NET INCOME | 318 | 243 | 638 | 466 |
Total average assets | 149,878 | 142,179 | 149,335 | 140,479 |
Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 657 | 602 | 1,295 | 1,183 |
Noninterest income | 229 | 219 | 449 | 427 |
Total revenue | 886 | 821 | 1,744 | 1,610 |
Noninterest expense | 644 | 632 | 1,291 | 1,248 |
Profit before provision for credit losses | 242 | 189 | 453 | 362 |
Provision for credit losses | 60 | 49 | 124 | 112 |
Income before income tax expense | 182 | 140 | 329 | 250 |
Income tax expense | 64 | 50 | 116 | 89 |
NET INCOME | 118 | 90 | 213 | 161 |
Total average assets | 59,244 | 55,660 | 58,954 | 55,388 |
Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 344 | 314 | 690 | 614 |
Noninterest income | 130 | 122 | 264 | 221 |
Total revenue | 474 | 436 | 954 | 835 |
Noninterest expense | 192 | 186 | 382 | 373 |
Profit before provision for credit losses | 282 | 250 | 572 | 462 |
Provision for credit losses | 1 | (1) | 20 | 8 |
Income before income tax expense | 281 | 251 | 552 | 454 |
Income tax expense | 94 | 87 | 185 | 157 |
NET INCOME | 187 | 164 | 367 | 297 |
Total average assets | 49,731 | 47,388 | 49,488 | 46,346 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 25 | 7 | 46 | 30 |
Noninterest income | 11 | 14 | 36 | 37 |
Total revenue | 36 | 21 | 82 | 67 |
Noninterest expense | 28 | 9 | 45 | 17 |
Profit before provision for credit losses | 8 | 12 | 37 | 50 |
Provision for credit losses | 9 | 42 | 22 | 61 |
Income before income tax expense | (1) | (30) | 15 | (11) |
Income tax expense | (14) | (19) | (43) | (19) |
NET INCOME | 13 | (11) | 58 | 8 |
Total average assets | $ 40,903 | $ 39,131 | $ 40,893 | $ 38,745 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator (basic and diluted): | ||||
Net income | $ 318 | $ 243 | $ 638 | $ 466 |
Less: Preferred stock dividends | 0 | 0 | 7 | 7 |
Net income available to common stockholders | $ 318 | $ 243 | $ 631 | $ 459 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in Shares) | 506,371,846 | 528,968,330 | 507,903,141 | 528,519,489 |
Dilutive common shares: share-based awards (in Shares) | 1,042,276 | 1,396,873 | 1,458,914 | 1,877,382 |
Weighted-average common shares outstanding - diluted (in Shares) | 507,414,122 | 530,365,203 | 509,362,055 | 530,396,871 |
Earnings per common share: | ||||
Basic (in Dollars per Share) | $ 0.63 | $ 0.46 | $ 1.24 | $ 0.87 |
Diluted (in Dollars per Share) | $ 0.63 | $ 0.46 | $ 1.24 | $ 0.87 |
Share-based awards excluded from diluted earnings per share computation (in Shares) | 530,781 | 0 | 343,692 | 0 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Bank-owned life insurance income | $ 14 | $ 13 | $ 26 | $ 26 |
Other | (8) | 9 | 5 | 17 |
Other income | $ 6 | $ 22 | $ 31 | $ 43 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Deposit insurance | $ 36 | $ 29 | $ 68 | $ 55 |
Promotional expense | 29 | 25 | 55 | 49 |
Settlements and operating losses | 12 | 14 | 25 | 22 |
Other | 71 | 60 | 126 | 117 |
Other operating expense | $ 148 | $ 128 | $ 274 | $ 243 |