Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Central Index Key | 759,944 | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CFG | |
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 491,991,403 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
ASSETS: | |||
Cash and due from banks | $ 781 | $ 955 | |
Interest-bearing cash and due from banks | 1,339 | 2,749 | |
Interest-bearing deposits in banks | 287 | 439 | |
Securities available for sale, at fair value (including $96 and $256 pledged to creditors, respectively) | [1] | 19,982 | 19,501 |
Securities held to maturity (including fair value of $4,839 and $5,058, respectively) | 4,823 | 5,071 | |
Other investment securities, at fair value | 165 | 96 | |
Other investment securities, at cost | 772 | 942 | |
Loans held for sale, at fair value | 500 | 583 | |
Other loans held for sale | 724 | 42 | |
Loans and leases | [2],[3] | 110,151 | 107,669 |
Less: Allowance for loan and lease losses | (1,224) | (1,236) | |
Net loans and leases | 108,927 | 106,433 | |
Derivative assets | 596 | 627 | |
Premises and equipment, net | 618 | 601 | |
Bank-owned life insurance | 1,646 | 1,612 | |
Goodwill | 6,887 | 6,876 | |
Due from broker | 226 | 0 | |
Other assets | 3,083 | 2,993 | |
TOTAL ASSETS | 151,356 | 149,520 | |
Deposits: | |||
Noninterest-bearing | 28,643 | 28,472 | |
Interest-bearing | 84,592 | 81,332 | |
Total deposits | 113,235 | 109,804 | |
Federal funds purchased and securities sold under agreements to repurchase | 453 | 1,148 | |
Other short-term borrowed funds | 1,505 | 3,211 | |
Derivative liabilities | 242 | 659 | |
Deferred taxes, net | 744 | 714 | |
Long-term borrowed funds | 13,400 | 12,790 | |
Other liabilities | 1,668 | 1,447 | |
TOTAL LIABILITIES | 131,247 | 129,773 | |
Contingencies (refer to Note 11) | |||
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 September 30, 2017 and December 31, 2016 | 247 | 247 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized, 565,769,260 shares issued and 499,505,285 shares outstanding at September 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 | 18,768 | 18,722 | |
Retained earnings | 3,442 | 2,703 | |
Treasury stock, at cost, 66,263,975 and 52,675,671 shares at September 30, 2017 and December 31, 2016, respectively | (1,773) | (1,263) | |
Accumulated other comprehensive loss | (581) | (668) | |
TOTAL STOCKHOLDERS’ EQUITY | 20,109 | 19,747 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 151,356 | $ 149,520 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. | ||
[2] | Excluded from the table above are loans held for sale totaling $1.2 billion and $625 million as of September 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 $17.7 billion and $17.3 billion at September 30, 2017 and December 31, 2016, respectively. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 4,839 | $ 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) | 565,769,260 | 564,630,542 |
Common stock, outstanding (in shares) | 499,505,285 | 511,954,871 |
Treasury stock (in shares) | 66,263,975 | 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 to creditors | $ 96 | $ 256 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME: | ||||
Interest and fees on loans and leases | $ 1,096 | $ 926 | $ 3,128 | $ 2,690 |
Interest and fees on loans held for sale, at fair value | 5 | 4 | 13 | 10 |
Interest and fees on other loans held for sale | 3 | 1 | 6 | 6 |
Investment securities | 155 | 146 | 469 | 432 |
Interest-bearing deposits in banks | 5 | 2 | 13 | 6 |
Total interest income | 1,264 | 1,079 | 3,629 | 3,144 |
INTEREST EXPENSE: | ||||
Deposits | 123 | 71 | 311 | 194 |
Federal funds purchased and securities sold under agreements to repurchase | 1 | 1 | 2 | 2 |
Other short-term borrowed funds | 7 | 10 | 22 | 33 |
Long-term borrowed funds | 71 | 52 | 201 | 143 |
Total interest expense | 202 | 134 | 536 | 372 |
Net interest income | 1,062 | 945 | 3,093 | 2,772 |
Provision for credit losses | 72 | 86 | 238 | 267 |
Net interest income after provision for credit losses | 990 | 859 | 2,855 | 2,505 |
NONINTEREST INCOME: | ||||
Service charges and fees | 131 | 134 | 385 | 390 |
Card fees | 58 | 52 | 177 | 153 |
Capital markets fees | 53 | 36 | 152 | 99 |
Trust and investment services fees | 38 | 37 | 116 | 112 |
Letter of credit and loan fees | 30 | 28 | 90 | 83 |
Foreign exchange and interest rate products | 24 | 28 | 77 | 72 |
Mortgage banking fees | 27 | 33 | 80 | 76 |
Securities gains, net | 2 | 0 | 9 | 13 |
Net securities impairment losses recognized in earnings | (1) | (3) | (6) | (11) |
Other income | 19 | 90 | 50 | 133 |
Total noninterest income | 381 | 435 | 1,130 | 1,120 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 436 | 432 | 1,312 | 1,289 |
Outside services | 99 | 102 | 286 | 279 |
Occupancy | 78 | 78 | 239 | 230 |
Equipment expense | 65 | 65 | 196 | 194 |
Amortization of software | 45 | 46 | 134 | 126 |
Other operating expense | 135 | 144 | 409 | 387 |
Total noninterest expense | 858 | 867 | 2,576 | 2,505 |
Income before income tax expense | 513 | 427 | 1,409 | 1,120 |
Income tax expense | 165 | 130 | 423 | 357 |
NET INCOME | 348 | 297 | 986 | 763 |
Net income available to common stockholders | $ 341 | $ 290 | $ 972 | $ 749 |
Weighted-average common shares outstanding: | ||||
Basic (in Shares) | 500,861,076 | 519,458,976 | 505,529,991 | 525,477,273 |
Diluted (in Shares) | 502,157,384 | 521,122,466 | 507,062,805 | 527,261,384 |
Per common share information: | ||||
Basic earnings (in Dollars per Share) | $ 0.68 | $ 0.56 | $ 1.92 | $ 1.43 |
Diluted earnings (in Dollars per Share) | 0.68 | 0.56 | 1.92 | 1.42 |
Dividends declared and paid (in Dollars per Share) | $ 0.18 | $ 0.12 | $ 0.46 | $ 0.34 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 348 | $ 297 | $ 986 | $ 763 |
Other comprehensive income: | ||||
Net unrealized derivative instrument (losses) gains arising during the periods, net of income taxes of ($1), $0, $13 and $29, respectively | (1) | (1) | 22 | 45 |
Reclassification adjustment for net derivative gains included in net income, net of income taxes of ($2), ($4), ($8) and ($14), respectively | (2) | (6) | (13) | (23) |
Net unrealized securities gains (losses) arising during the periods, net of income taxes of $8, ($17), $44 and $114, respectively | 13 | (28) | 74 | 190 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of $0, $2, ($1) and ($11), respectively | 0 | 3 | (2) | (18) |
Reclassification of net securities (gains) losses to net income, net of income taxes of $0, $1, ($1) and ($1), respectively | (1) | 2 | (2) | (1) |
Employee Benefit Plans: Amortization of actuarial loss, net of income taxes of $2, $2, $6 and $5, respectively | 3 | 2 | 8 | 7 |
Total other comprehensive income (loss), net of income taxes | 12 | (28) | 87 | 200 |
Total comprehensive income | $ 360 | $ 269 | $ 1,073 | $ 963 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net unrealized derivative instrument (losses) gains arising during the periods, tax | $ (1) | $ 0 | $ 13 | $ 29 |
Reclassification adjustment for net derivative gains included in net income, tax | (2) | (4) | (8) | (14) |
Net unrealized securities gains (losses) arising during the periods, tax | 8 | (17) | 44 | 114 |
Other-than-temporary impairment not recognized in earnings on securities, tax | 0 | 2 | (1) | (11) |
Reclassification of net securities (gains) losses to net income, tax | 0 | 1 | (1) | (1) |
Amortization of actuarial loss, tax | $ 2 | $ 2 | $ 6 | $ 5 |
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 | (179) | (179) | |||||
Dividends to preferred stockholders | (14) | (14) | |||||
Treasury stock purchased (in shares) | (11,000,000) | ||||||
Treasury stock purchased | (250) | (250) | |||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 8 | 8 | |||||
Employee stock purchase plan shares purchased | 7 | 7 | |||||
Total comprehensive income: | |||||||
Net income | 763 | 763 | |||||
Other comprehensive income | 200 | 200 | |||||
Total comprehensive income | 963 | 763 | 200 | ||||
Ending balance (in shares) at Sep. 30, 2016 | 0 | 518,000,000 | |||||
Ending balance at Sep. 30, 2016 | 20,181 | $ 247 | $ 6 | 18,740 | 2,483 | (1,108) | (187) |
Beginning balance at Jun. 30, 2016 | (159) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to preferred stockholders | (7) | ||||||
Treasury stock purchased | (250) | ||||||
Total comprehensive income: | |||||||
Net income | 297 | ||||||
Other comprehensive income | (28) | ||||||
Total comprehensive income | 269 | ||||||
Ending balance (in shares) at Sep. 30, 2016 | 0 | 518,000,000 | |||||
Ending balance at Sep. 30, 2016 | 20,181 | $ 247 | $ 6 | 18,740 | 2,483 | (1,108) | (187) |
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 | (233) | (233) | |||||
Dividends to preferred stockholders | $ (14) | (14) | |||||
Treasury stock purchased (in shares) | (13,588,304) | (13,000,000) | |||||
Treasury stock purchased | $ (485) | 25 | (510) | ||||
Share-based compensation plans (in shares) | 1,000,000 | ||||||
Share-based compensation plans | 12 | 12 | |||||
Employee stock purchase plan shares purchased | 9 | 9 | |||||
Total comprehensive income: | |||||||
Net income | 986 | 986 | |||||
Other comprehensive income | 87 | 87 | |||||
Total comprehensive income | 1,073 | 986 | 87 | ||||
Ending balance (in shares) at Sep. 30, 2017 | 0 | 500,000,000 | |||||
Ending balance at Sep. 30, 2017 | 20,109 | $ 247 | $ 6 | 18,768 | 3,442 | (1,773) | (581) |
Beginning balance at Jun. 30, 2017 | (593) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to preferred stockholders | (7) | ||||||
Treasury stock purchased | (225) | ||||||
Total comprehensive income: | |||||||
Net income | 348 | ||||||
Other comprehensive income | 12 | ||||||
Total comprehensive income | 360 | ||||||
Ending balance (in shares) at Sep. 30, 2017 | 0 | 500,000,000 | |||||
Ending balance at Sep. 30, 2017 | $ 20,109 | $ 247 | $ 6 | $ 18,768 | $ 3,442 | $ (1,773) | $ (581) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
OPERATING ACTIVITIES | |||
Net income | $ 986 | $ 763 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 238 | 267 | |
Originations of mortgage loans held for sale | (2,159) | (1,904) | |
Proceeds from sales of mortgage loans held for sale | 2,372 | 1,775 | |
Purchases of commercial loans held for sale | (1,513) | (1,053) | |
Proceeds from sales of commercial loans held for sale | 1,441 | 1,040 | |
Amortization of terminated cash flow hedges, net | (17) | 6 | |
Depreciation, amortization and accretion | 388 | 387 | |
Mortgage servicing rights valuation (recovery) charge-off | (1) | 6 | |
Securities impairment | 6 | 11 | |
Deferred income taxes | (23) | 143 | |
Share-based compensation | 35 | 15 | |
Net gain on sales of: | |||
Debt securities | (9) | (13) | |
Other investment securities | (1) | 0 | |
Premises and equipment | 0 | (2) | |
Increase in other assets | (155) | (305) | |
(Decrease) increase in other liabilities | (138) | 62 | |
Net cash provided by operating activities | 1,450 | 1,198 | |
Investment securities: | |||
Purchases of securities available for sale | (4,088) | (4,774) | |
Proceeds from maturities and paydowns of securities available for sale | 2,564 | 2,658 | |
Proceeds from sales of securities available for sale | 914 | 785 | |
Purchases of securities held to maturity | (171) | (523) | |
Proceeds from maturities and paydowns of securities held to maturity | 422 | 503 | |
Purchases of other investment securities, at fair value | (286) | (204) | |
Proceeds from sales of other investment securities, at fair value | 217 | 161 | |
Purchases of other investment securities, at cost | (307) | (84) | |
Proceeds from sales of other investment securities, at cost | 495 | 70 | |
Net decrease (increase) in interest-bearing deposits in banks | 152 | (364) | |
Net increase in loans and leases | (3,549) | (6,724) | |
Net increase in bank-owned life insurance | (34) | (36) | |
Premises and equipment: | |||
Purchases | (115) | (44) | |
Proceeds from sales | 0 | 3 | |
Capitalization of software | (138) | (126) | |
Net cash used in investing activities | (3,924) | (8,699) | |
FINANCING ACTIVITIES | |||
Net increase in deposits | 3,431 | 5,788 | |
Net (decrease) increase in federal funds purchased and securities sold under agreements to repurchase | (695) | 98 | |
Net decrease in other short-term borrowed funds | (1,708) | (1,635) | |
Proceeds from issuance of long-term borrowed funds | 12,108 | 9,644 | |
Repayments of long-term borrowed funds | (11,501) | (6,128) | |
Treasury stock purchased | (485) | (250) | |
Dividends declared and paid to common stockholders | (233) | (179) | |
Dividends declared and paid to preferred stockholders | (7) | (7) | |
Payments of employee tax withholding for share-based compensation | (20) | 0 | |
Net cash provided by financing activities | 890 | 7,331 | |
Decrease in cash and cash equivalents | [1] | (1,584) | (170) |
Cash and cash equivalents at beginning of period | [1] | 3,704 | 3,085 |
Cash and cash equivalents at end of period | [1] | $ 2,120 | $ 2,915 |
[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 | 9 Months Ended |
Sep. 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 Annual Report on 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. Accounting Pronouncements Adopted in 2017 Pronouncement Summary of Guidance Effects on Financial Statements Stock Compensation Issued March 2016 • Requires that all excess tax benefits and tax deficiencies that pertain to employee stock-based incentive payments are recognized within income tax expense in the Consolidated Statement of Operations, rather than within additional paid in capital. • This standard also allows entities to make a one-time policy election to account for forfeitures when they occur, which the Company elected to do. • Adopted January 1, 2017 • Adoption of this guidance did not have a material impact on the Company’s unaudited interim Consolidated Financial Statements Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. • Eliminates the requirement to separately recognize and report hedge ineffectiveness. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. For example, changes in the fair values of a derivative and a hedged item designated in a fair value hedge of interest rate risk will require classification within Interest income or Interest expense. • Requires the effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be separately recognized in earnings. • Required effective date: January 1, 2019. Early adoption is permitted. • The Company is still assessing the impacts upon adoption on the Consolidated Financial Statements. Stock Compensation Issued May 2017 • Requires modification accounting unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the modification. • Applied prospectively to all modifications of share-based awards after the adoption date. • Required effective date: January 1, 2018. Early adoption is permitted. The Company will adopt the new standard in the first quarter of 2018. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • Requires amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. • Requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • Required effective date: January 1, 2019. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires the service cost component of net periodic pension and postretirement benefit cost to be reported separately in the Consolidated Statements of Operations from the other components (e.g., expected return on assets, interest costs, amortization of gains/losses and prior service costs). • Requires presentation in the Consolidated Statements of Operations of the service cost component in the same line item as other employee compensation costs and presentation of the other components in a different line item from the service cost component. • Required effective date: January 1, 2018. Early adoption is permitted. The Company will adopt the new standard in the first quarter of 2018. • Adoption will have no impact on the Company’s net income, but based on recent experience that the expected return on assets exceeds the sum of the other components, the Company expects that the guidance will result in an increase in salaries and employee benefits expense and a reduction in other operating expense. Goodwill • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Applied prospectively to all goodwill impairment tests performed after the adoption date. • Required effective date: January 1, 2020. Early adoption is permitted. The Company does not currently intend to early adopt the new standard. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. • Required effective date: January 1, 2020. Early adoption permitted on January 1, 2019. • The Company established a company-wide, cross-discipline governance structure to implement the new standard. 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 standard will have on its Consolidated Financial Statements, the Company expects the standard 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. Leases Issued February 2016 • 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. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • 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 Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Requires adoption using a modified cumulative effect approach wherein the guidance is applied to all periods presented. • Required effective date: January 1, 2019. Early adoption is permitted. • The Company does not expect early adoption of the new leasing standard. • The Company occupies certain banking offices and equipment under non-cancelable operating lease agreements, which currently are not reflected in its Consolidated Balance Sheets. • The Company expects to report increased assets and liabilities as a result of recognizing right-of-use assets and lease liabilities in its Consolidated Balance Sheets. As of December 31, 2016, the Company was committed to $809 million of minimum lease payments under non-cancelable operating lease agreements. • The evaluation of the impact of the leasing pronouncement will be adjusted based on execution of new leases, termination of existing leases prior to the effective date, and any changes to key lease assumptions such as renewals, extensions and discount rates. • The Company does not expect a material change to the timing of expense recognition in the Consolidated Statements of Operations. Pronouncement Summary of Guidance Effects on Financial Statements Revenue Recognition: Revenue from Contracts with Customers Issued May 2014 • 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. • Changes the accounting for certain contract costs including whether they may be offset against revenues in the Consolidated Statements of Operations. • Requires new qualitative and quantitative disclosures, including information about disaggregation of revenue and performance obligations. • May be adopted using a full retrospective approach or a modified cumulative effect approach wherein the guidance is applied only to existing contracts as of the date of initial adoption and to new contracts transacted after that date. • Required effective date: January 1, 2018. Early adoption is permitted. • The Company plans to adopt the revenue guidance in the first quarter of 2018 using the modified retrospective method. Net interest income on financial assets and liabilities is explicitly excluded from the scope of the pronouncement. • 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 these efforts, the Company has not identified material changes to the timing or amount of revenue recognition. • The Company has substantially completed its evaluation of the expanded disclosure requirements and expects the most significant item will be the disaggregation of revenue. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 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: September 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 19,735 76 (183 ) 19,628 19,231 78 (264 ) 19,045 Other/non-agency 337 6 (8 ) 335 427 2 (28 ) 401 Total mortgage-backed securities 20,072 82 (191 ) 19,963 19,658 80 (292 ) 19,446 Total debt securities available for sale 20,091 82 (191 ) 19,982 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 $20,091 $82 ($191 ) $19,982 $19,713 $80 ($292 ) $19,501 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $3,966 $18 ($28 ) $3,956 $4,126 $12 ($44 ) $4,094 Other/non-agency 857 26 — 883 945 19 — 964 Total securities held to maturity $4,823 $44 ($28 ) $4,839 $5,071 $31 ($44 ) $5,058 Other Investment Securities, at Fair Value Money market mutual fund $160 $— $— $160 $91 $— $— $91 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $165 $— $— $165 $96 $— $— $96 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $463 $— $— $463 Federal Home Loan Bank stock 302 — — 302 479 — — 479 Other equity securities 7 — — 7 — — — — Total other investment securities, at cost $772 $— $— $772 $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: September 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 298 13,113 (193 ) 30 545 (18 ) 328 13,658 (211 ) Other/non-agency — — — 11 121 (8 ) 11 121 (8 ) Total mortgage-backed securities 298 13,113 (193 ) 41 666 (26 ) 339 13,779 (219 ) Total 298 $13,113 ($193 ) 41 $666 ($26 ) 339 $13,779 ($219 ) 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Cumulative balance at beginning of period $79 $73 $75 $66 Credit impairments recognized in earnings on securities that have been previously impaired 1 3 6 11 Reductions due to increases in cash flow expectations on impaired securities (1) — (1 ) (1 ) (2 ) Cumulative balance at end of period $80 $75 $80 $75 (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 September 30, 2017 and 2016 were $80 million and $75 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of September 30, 2017 and 2016 . For the three months ended September 30, 2017 and 2016 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $1 million and $3 million , respectively. For the nine months ended September 30, 2017 and 2016 , the Company incurred non-agency MBS credit-related other-than-temporary impairment losses in earnings of $6 million and $11 million , respectively. Other-than-temporary impairment losses for the nine months ended September 30, 2016 included the $5 million impact of a one-time adjustment from a new model implementation. This adjustment is the result of the Company migrating in June 2016 from a proprietary internal process to a vendor-based model to estimate other-than-temporary impairment. There were no credit impaired debt securities sold during the three and nine months ended September 30, 2017 and 2016 . The Company does not currently have the intent to sell these impaired 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 September 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 as of September 30, 2017 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. September 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 1 169 1,149 18,416 19,735 Other/non-agency — 25 — 312 337 Total debt securities available for sale 13 194 1,149 18,735 20,091 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,966 3,966 Other/non-agency — — — 857 857 Total debt securities held to maturity — — — 4,823 4,823 Total amortized cost of debt securities $13 $194 $1,149 $23,558 $24,914 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 1 169 1,166 18,292 19,628 Other/non-agency — 25 — 310 335 Total debt securities available for sale 13 194 1,166 18,609 19,982 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,956 3,956 Other/non-agency — — — 883 883 Total debt securities held to maturity — — — 4,839 4,839 Total fair value of debt securities $13 $194 $1,166 $23,448 $24,821 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $155 million and $146 million for the three months ended September 30, 2017 and 2016 , respectively, and was $469 million and $432 million for the nine months ended September 30, 2017 and 2016 , respectively. Realized gains and losses on securities are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Gains on sale of debt securities $2 $— $9 $13 Losses on sale of debt securities — — — — Debt securities gains, net $2 $— $9 $13 Equity securities gains $— $— $1 $— The amortized cost and fair value of securities pledged are presented below: September 30, 2017 December 31, 2016 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $459 $454 $631 $620 Pledged against FHLB borrowed funds 864 890 953 972 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 2,866 2,858 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 September 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 $38 million and $82 million in securitizations of mortgage loans retained in the investment portfolio for the three and nine months ended September 30, 2017 , respectively, and $16 million and $21 million for the three and nine months ended September 30, 2016, respectively. These securitizations include a substantive guarantee by a third party. In 2017 the guarantors were Fannie Mae, Freddie Mac, and Ginnie Mae. In 2016, the guarantors were Fannie Mae and Ginnie Mae. These securitizations were accounted for as a sale of the transferred loans and as a purchase of securities. The securities received from the guarantors are classified as AFS. |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 Commercial $37,706 $37,274 Commercial real estate 11,426 10,624 Leases 3,249 3,753 Total commercial 52,381 51,651 Residential mortgages 16,619 15,115 Home equity loans 1,483 1,858 Home equity lines of credit 13,555 14,100 Home equity loans serviced by others 599 750 Home equity lines of credit serviced by others 166 219 Automobile 13,311 13,938 Education (1) 8,014 6,610 Credit cards 1,754 1,691 Other retail 2,269 1,737 Total retail 57,770 56,018 Total loans and leases (2) (3) $110,151 $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 $1.2 billion and $625 million as of September 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 $17.7 billion and $17.3 billion at September 30, 2017 and December 31, 2016 , respectively. During the three months ended September 30, 2017 , the Company purchased approximately $63 million of education loans. During the three months ended September 30, 2016 , the Company purchased $222 million of residential mortgages, $200 million of automobile loans and $126 million of education loans. During the nine months ended September 30, 2017 , the Company purchased approximately $795 million of education loans and $153 million of automobile loans. During the nine months ended September 30, 2016 , the Company purchased $843 million of education loans, $534 million of automobile loans and $405 million of residential mortgages. During the three months ended September 30, 2017 , there were no loan portfolio sales. During the three months ended September 30, 2016 , the Company sold $163 million of residential mortgage loans and $14 million of commercial loans. During the nine months ended September 30, 2017 , the Company sold $596 million of commercial loans and $206 million of residential mortgage loans. During the nine months ended September 30, 2016 , the Company sold $444 million of residential mortgage loans and $132 million of commercial loans. Additionally, during the three and nine months ended September 30, 2016 , the Company sold $310 million of TDRs, including $255 million of residential mortgages and $55 million of home equity loans, which resulted in a pre-tax gain of $72 million reported in other income on the Consolidated Statements of Operations. Loans held for sale at fair value as of September 30, 2017 totaled $500 million and consisted of residential mortgages originated for sale of $349 million and loans in the commercial trading portfolio of $151 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 $724 million and $42 million as of September 30, 2017 and December 31, 2016 , respectively. In September 2017 , the Company transferred $78 million of retail TDRs, including $49 million of residential mortgages and $29 million of home equity loans, and $6 million of commercial TDRs to other loans held for sale. Additionally, other loans held for sale included commercial loans associated with the Company’s syndications business of $640 million as of September 30, 2017 compared with $42 million as of December 31, 2016 . Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages loans, totaled $24.2 billion and $24.0 billion at September 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 $17.5 billion and $16.8 billion at September 30, 2017 and December 31, 2016 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 9 Months Ended |
Sep. 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 September 30, 2017 Nine Months Ended September 30, 2017 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $614 $605 $1,219 $663 $573 $1,236 Charge-offs (12 ) (108 ) (120 ) (60 ) (321 ) (381 ) Recoveries 12 43 55 27 127 154 Net charge-offs — (65 ) (65 ) (33 ) (194 ) (227 ) Provision charged to income 24 46 70 8 207 215 Allowance for loan and lease losses, end of period 638 586 1,224 638 586 1,224 Reserve for unfunded lending commitments, beginning of period 93 — 93 72 — 72 Provision for unfunded lending commitments 2 — 2 23 — 23 Reserve for unfunded lending commitments, end of period 95 — 95 95 — 95 Total allowance for credit losses, end of period $733 $586 $1,319 $733 $586 $1,319 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $676 $570 $1,246 $596 $620 $1,216 Charge-offs (33 ) (112 ) (145 ) (53 ) (331 ) (384 ) Recoveries 14 48 62 23 130 153 Net charge-offs (19 ) (64 ) (83 ) (30 ) (201 ) (231 ) Provision (credited) charged to income (2 ) 79 77 89 166 255 Allowance for loan and lease losses, end of period 655 585 1,240 655 585 1,240 Reserve for unfunded lending commitments, beginning of period 61 — 61 58 — 58 Provision for unfunded lending commitments 9 — 9 12 — 12 Reserve for unfunded lending commitments, end of period 70 — 70 70 — 70 Total allowance for credit losses, end of period $725 $585 $1,310 $725 $585 $1,310 The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: September 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $444 $759 $1,203 $424 $799 $1,223 Formula-based evaluation 51,937 57,011 108,948 51,227 55,219 106,446 Total $52,381 $57,770 $110,151 $51,651 $56,018 $107,669 A summary of the allowance for credit losses by evaluation method is presented below: September 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $46 $35 $81 $63 $43 $106 Formula-based evaluation 687 551 1,238 672 530 1,202 Allowance for credit losses $733 $586 $1,319 $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: September 30, 2017 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,309 $1,368 $770 $259 $37,706 Commercial real estate 10,737 514 146 29 11,426 Leases 3,155 73 21 — 3,249 Total $49,201 $1,955 $937 $288 $52,381 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: September 30, 2017 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $16,323 $141 $31 $10 $114 $16,619 Home equity loans 1,306 101 14 6 56 1,483 Home equity lines of credit 12,874 419 54 23 185 13,555 Home equity loans serviced by others 538 32 9 4 16 599 Home equity lines of credit serviced by others 125 20 3 1 17 166 Automobile 11,917 1,087 197 54 56 13,311 Education 7,803 135 23 12 41 8,014 Credit cards 1,673 47 11 8 15 1,754 Other retail 2,170 60 17 12 10 2,269 Total $54,729 $2,042 $359 $130 $510 $57,770 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) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Commercial $297 $322 $5 $2 Commercial real estate 28 50 2 — Leases — 15 — — Total commercial 325 387 7 2 Residential mortgages (1) 124 144 15 18 Home equity loans 76 98 — — Home equity lines of credit 236 243 — — Home equity loans serviced by others 26 32 — — Home equity lines of credit serviced by others 21 33 — — Automobile 66 50 — — Education 38 38 3 5 Credit card 15 16 — — Other retail 5 4 5 1 Total retail 607 658 23 24 Total $932 $1,045 $30 $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 $15 million and $18 million as of September 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 September 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) September 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: September 30, 2017 December 31, 2016 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.30 % 0.36 % Nonperforming retail loans as a percentage of total loans and leases 0.55 0.61 Total nonperforming loans and leases as a percentage of total loans and leases 0.85 % 0.97 % Nonperforming commercial assets as a percentage of total assets 0.21 % 0.26 % Nonperforming retail assets as a percentage of total assets 0.43 0.47 Total nonperforming assets as a percentage of total assets 0.64 % 0.73 % The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings are in process was $179 million and $177 million as of September 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: September 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 $39 $5 $302 $346 $36 $4 $324 $364 Commercial real estate 4 2 30 36 1 2 50 53 Leases 5 — — 5 1 — 15 16 Total commercial 48 7 332 387 38 6 389 433 Residential mortgages 31 10 114 155 53 12 135 200 Home equity loans 14 6 56 76 23 7 73 103 Home equity lines of credit 54 23 185 262 57 20 195 272 Home equity loans serviced by others 9 4 16 29 14 5 17 36 Home equity lines of credit serviced by others 3 1 17 21 3 2 31 36 Automobile 197 54 56 307 172 38 42 252 Education 23 12 41 76 24 13 43 80 Credit cards 11 8 15 34 12 9 16 37 Other retail 17 12 10 39 8 4 4 16 Total retail 359 130 510 999 366 110 556 1,032 Total $407 $137 $842 $1,386 $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: September 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 $231 $45 $185 $491 $416 Commercial real estate 24 1 4 39 28 Total commercial 255 46 189 530 444 Residential mortgages 23 2 117 185 140 Home equity loans 42 4 83 167 125 Home equity lines of credit 16 1 181 242 197 Home equity loans serviced by others 31 2 19 60 50 Home equity lines of credit serviced by others 3 — 6 13 9 Automobile 4 — 19 30 23 Education 159 18 20 179 179 Credit cards 25 7 1 26 26 Other retail 5 1 5 11 10 Total retail 308 35 451 913 759 Total $563 $81 $640 $1,443 $1,203 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 September 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $391 $1 $340 Commercial real estate — 33 — 40 Total commercial 1 424 1 380 Residential mortgages — 137 1 169 Home equity loans 1 125 2 153 Home equity lines of credit 2 192 2 192 Home equity loans serviced by others — 51 1 64 Home equity lines of credit serviced by others — 9 — 9 Automobile — 21 — 17 Education 3 178 1 159 Credit cards — 25 — 25 Other retail — 10 1 12 Total retail 6 748 8 800 Total $7 $1,172 $9 $1,180 Nine Months Ended September 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $3 $402 $4 $277 Commercial real estate — 39 — 53 Total commercial 3 441 4 330 Residential mortgages 3 128 3 161 Home equity loans 4 124 5 151 Home equity lines of credit 5 178 5 182 Home equity loans serviced by others 2 51 3 64 Home equity lines of credit serviced by others — 9 — 9 Automobile — 18 — 14 Education 7 178 5 157 Credit cards 1 23 1 25 Other retail — 10 1 13 Total retail 22 719 23 776 Total $25 $1,160 $27 $1,106 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 less costs to sell is charged off at the time of modification or at the time of subsequent and regularly recurring valuations. Commercial TDRs were $153 million and $120 million at September 30, 2017 and December 31, 2016 , respectively. Retail TDRs totaled $759 million and $799 million at September 30, 2017 and December 31, 2016 , respectively. Unfunded commitments tied to TDRs were $52 million and $42 million at September 30, 2017 and December 31, 2016 , respectively. The table below summarizes how loans were modified during the three months ended September 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 September 30, 2017 and were paid off in full, charged off, or sold prior to September 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 3 $1 $1 17 $8 $7 Commercial real estate — — — 1 — — Leases — — — — — — Total commercial 3 1 1 18 8 7 Residential mortgages 13 1 2 15 1 2 Home equity loans 25 2 1 — — — Home equity lines of credit 11 1 1 86 11 11 Home equity loans serviced by others 3 — — — — — Home equity lines of credit serviced by others — — — — — — Automobile 28 1 1 8 — — Education — — — — — — Credit cards 661 3 3 — — — Other retail — — — — — — Total retail 741 8 8 109 12 13 Total 744 $9 $9 127 $20 $20 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 7 $28 $30 $— $— Commercial real estate 1 — — — — Leases — — — — — Total commercial 8 28 30 — — Residential mortgages 38 3 3 (1 ) — Home equity loans 49 3 3 — — Home equity lines of credit 110 6 7 — 1 Home equity loans serviced by others 11 1 — — — Home equity lines of credit serviced by others 8 1 — — — Automobile 392 7 6 — 1 Education 67 2 2 — — Credit cards — — — 1 — Other retail 2 — — — — Total retail 677 23 21 — 2 Total 685 $51 $51 $— $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 three months ended September 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 September 30, 2016 and were paid off in full, charged off, or sold prior to September 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 $— $— 8 $1 $1 Commercial real estate — — — — — — Leases — — — — — — Total commercial 3 — — 8 1 1 Residential mortgages 28 3 3 33 6 5 Home equity loans 36 2 2 2 — 1 Home equity lines of credit 20 1 2 56 6 6 Home equity loans serviced by others 7 1 1 — — — Home equity lines of credit serviced by others 2 — — 1 — — Automobile 26 1 1 6 — — Education — — — — — — Credit cards 544 3 3 — — — Other retail 2 — — — — — Total retail 665 11 12 98 12 12 Total 668 $11 $12 106 $13 $13 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 $6 $5 $4 $— Commercial real estate — — — — — Leases — — — — — Total commercial 4 6 5 4 — Residential mortgages 55 5 5 — — Home equity loans 52 3 3 — — Home equity lines of credit 94 8 7 — 1 Home equity loans serviced by others 17 1 1 — — Home equity lines of credit serviced by others 6 — 1 — — Automobile 264 5 5 — — Education 108 2 2 1 — Credit cards — — — 1 — Other retail 3 — — — — Total retail 599 24 24 2 1 Total 603 $30 $29 $6 $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 nine months ended September 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 nine months ended September 30, 2017 and were paid off in full, charged off, or sold prior to September 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 7 $2 $2 35 $22 $21 Commercial real estate — — — 1 — — Leases — — — — — — Total commercial 7 2 2 36 22 21 Residential mortgages 56 6 7 50 9 10 Home equity loans 68 4 4 1 — — Home equity lines of credit 41 2 2 204 26 26 Home equity loans serviced by others 14 1 1 — — — Home equity lines of credit serviced by others 3 — — 2 — — Automobile 93 2 2 23 — — Education — — — — — — Credit cards 1,850 10 10 — — — Other retail 1 — — — — — Total retail 2,126 25 26 280 35 36 Total 2,133 $27 $28 316 $57 $57 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 12 $64 $65 $1 $— Commercial real estate 1 — — — — Leases — — — — — Total commercial 13 64 65 1 — Residential mortgages 122 13 13 (1 ) — Home equity loans 192 11 11 — — Home equity lines of credit 295 20 20 — 1 Home equity loans serviced by others 41 2 1 — — Home equity lines of credit serviced by others 21 2 1 — — Automobile 1,017 18 16 — 3 Education 235 4 4 1 — Credit cards — — — 3 — Other retail 5 — — (1 ) — Total retail 1,928 70 66 2 4 Total 1,941 $134 $131 $3 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) 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 nine months ended September 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 nine months ended September 30, 2016 and were paid off in full, charged off, or sold prior to September 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 11 $1 $1 62 $9 $9 Commercial real estate — — — — — — Leases — — — — — — Total commercial 11 1 1 62 9 9 Residential mortgages 53 7 7 49 9 8 Home equity loans 65 4 4 39 4 5 Home equity lines of credit 33 2 3 83 9 9 Home equity loans serviced by others 13 1 1 — — — Home equity lines of credit serviced by others 4 — — 5 1 1 Automobile 77 2 2 14 — — Education — — — — — — Credit cards 1,625 9 9 — — — Other retail 3 — — — — — Total retail 1,873 25 26 190 23 23 Total 1,884 $26 $27 252 $32 $32 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 13 $47 $46 $3 $— Commercial real estate — — — — — Leases — — — — — Total commercial 13 47 46 3 — Residential mortgages 186 20 20 — — Home equity loans 233 14 14 (1 ) — Home equity lines of credit 218 16 15 — 1 Home equity loans serviced by others 51 2 2 — — Home equity lines of credit serviced by others 19 1 1 — — Automobile 803 15 14 — 1 Education 405 8 8 3 — Credit cards — — — 2 — Other retail 11 — — — — Total retail 1,926 76 74 4 2 Total 1,939 $123 $120 $7 $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 TDRs that defaulted within 12 months of their modification date during the three and nine months ended September 30, 2017 and 2016 , respectively. 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 September 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 September 30, Nine Months Ended September 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 2 $4 5 $1 7 $5 16 $4 Commercial real estate — — — — 1 4 1 — Total commercial 2 4 5 1 8 9 17 4 Residential mortgages 35 5 57 7 121 15 146 19 Home equity loans 12 — 14 — 35 1 39 3 Home equity lines of credit 55 4 48 4 152 11 93 8 Home equity loans serviced by others 6 — 7 — 16 — 28 1 Home equity lines of credit serviced by others 4 — 3 — 8 — 14 — Automobile 42 — 43 — 103 1 80 1 Education 5 1 15 — 41 1 46 1 Credit cards 116 — 117 1 344 2 323 2 Other retail 2 — 2 — 4 — 2 — Total retail 277 10 306 12 824 31 771 35 Total 279 $14 311 $13 832 $40 788 $39 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 September 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: September 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 $436 $260 $319 $— $— $1,015 Interest only/negative amortization 1,738 — — — 1 1,739 Low introductory rate — — — 165 — 165 Multiple characteristics and other 2 — — — — 2 Total $2,176 $260 $319 $165 $1 $2,921 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 | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 LIHTC investment included in other assets $898 $793 LIHTC unfunded commitments included in other liabilities 494 428 Renewable energy investments included in other assets 264 220 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Tax credits included in income tax expense $20 $17 $63 $46 Amortization expense included in income tax expense 22 14 67 45 Other tax benefits included in income tax expense 7 2 22 15 No LIHTC investment impairment losses were recognized during the three and nine months ended September 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 | 9 Months Ended |
Sep. 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 $828 million and $753 million for the three months ended September 30, 2017 and 2016 , respectively, and $2.4 billion and $1.8 billion for the nine months ended September 30, 2017 and 2016 , respectively. The Company recognized gains on sales of residential mortgages held for sale of $25 million and $26 million for the three months ended September 30, 2017 and 2016 , respectively, and $54 million and $56 million for the nine months ended September 30, 2017 and 2016 , respectively. Pursuant to the standard representations and warranties obligations discussed above, the Company repurchased residential mortgages totaling $1 million and $2 million for the three months ended September 30, 2017 and 2016 , respectively. The Company repurchased $2 million and $6 million of residential mortgages for the nine months ended September 30, 2017 and 2016 , respectively. Mortgage servicing fees, a component of mortgage banking fees, were $13 million and $12 million for the three months ended September 30, 2017 and 2016 , respectively, and $40 million and $38 million for the nine months ended September 30, 2017 and 2016 , respectively. The Company recorded valuation charge-offs for its MSRs of zero and $2 million for the three months ended September 30, 2017 and 2016 , respectively, and valuation recoveries of $1 million and charge-offs of $6 million for the nine months ended September 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 September 30, As of and for the Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $166 $167 $173 Amount capitalized 9 10 28 20 Amortization (8 ) (9 ) (24 ) (26 ) Carrying amount before valuation allowance 171 167 171 167 Valuation allowance for servicing assets: Balance as of beginning of period 4 13 5 9 Valuation charge-offs (recoveries) — 2 (1 ) 6 Balance at end of period 4 15 4 15 Net carrying value of MSRs $167 $152 $167 $152 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: September 30, 2017 December 31, 2016 Weighted Average Weighted Average (dollars in millions) Range Range Fair value $183 Min Max $182 Min Max Weighted average life (in years) 5.7 2.4 7.0 5.7 2.6 7.3 Weighted average constant prepayment rate 10.8% 9.2% 21.2% 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average life (in years) 6.5 5.7 6.6 5.9 Weighted average constant prepayment rate 10.8% 12.3% 10.2% 11.7% Weighted average discount rate 9.9% 9.8% 9.9% 9.8% 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) September 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 | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS A summary of the Company’s short-term borrowed funds is presented below: (in millions) September 30, 2017 December 31, 2016 Federal funds purchased $— $533 Securities sold under agreements to repurchase 453 615 Other short-term borrowed funds 1,505 3,211 Total short-term borrowed funds $1,958 $4,359 Key data related to short-term borrowed funds is presented in the following table: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 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 — % 0.03 % — % 0.03 % 0.26 % Other short-term borrowed funds (primarily short-term FHLB advances) 1.47 0.63 1.47 0.63 0.94 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $724 $1,032 $1,174 $1,274 $1,522 Other short-term borrowed funds (primarily short-term FHLB advances) 1,755 2,515 3,508 4,764 5,461 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $733 $910 $807 $922 $947 Other short-term borrowed funds (primarily short-term FHLB advances) 1,624 2,564 2,283 3,133 3,207 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 0.47 % 0.10 % 0.34 % 0.09 % 0.09 % Other short-term borrowed funds (primarily short-term FHLB advances) 1.48 0.63 1.22 0.62 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) September 30, 2017 December 31, 2016 Parent Company: 4.150% fixed-rate subordinated debt, due 2022 $348 $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 249 249 4.300% fixed-rate subordinated debt, due 2025 749 749 2.375% fixed-rate senior unsecured debt, due 2021 348 348 Banking Subsidiaries: 2.300% senior unsecured notes, due 2018 (1) 746 745 2.450% senior unsecured notes, due 2019 (1) 747 747 2.500% senior unsecured notes, due 2019 (1) 743 741 2.250% senior unsecured notes, due 2020 (1) 697 — Floating-rate senior unsecured notes, due 2020 (1) 299 — Floating-rate senior unsecured notes, due 2020 (1) 249 — 2.200% senior unsecured notes, due 2020 (1) 498 — 2.550% senior unsecured notes, due 2021 (1) 973 965 Floating-rate senior unsecured notes, due 2022 (1) 249 — 2.650% senior unsecured notes, due 2022 (1) 496 — Federal Home Loan advances due through 2033 5,361 7,264 Other 23 10 Total long-term borrowed funds $13,400 $12,790 (1) Issued under CBNA’s Global Bank Note Program. The Parent Company’s long-term borrowed funds as of September 30, 2017 and December 31, 2016 included principal balances of $2.3 billion and unamortized deferred issuance costs and/or discounts of ($6) million and ($7) million , respectively. The banking subsidiaries’ long-term borrowed funds as of September 30, 2017 and December 31, 2016 include principal balances of $11.1 billion and $10.5 billion , respectively, with unamortized deferred issuance costs and/or discounts of ($17) million and ($12) million , respectively, and hedging basis adjustments of ($36) million and ($40) million , respectively. See Note 10 “Derivatives” for further information on the Company’s hedging of certain long-term borrowed funds. 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 $10.4 billion and $13.4 billion at September 30, 2017 and December 31, 2016 , respectively. The Company’s available FHLB borrowing capacity was $6.1 billion and $2.8 billion at September 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 September 30, 2017 , the Company’s unused secured borrowing capacity was approximately $39.1 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 September 30, 2017 is presented below: (in millions) Parent Company Banking Subsidiaries Consolidated Year 2018 $— $4,097 $4,097 2019 — 3,491 3,491 2020 — 1,760 1,760 2021 348 976 1,324 2022 348 750 1,098 2023 and thereafter 1,623 7 1,630 Total $2,319 $11,081 $13,400 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 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 September 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 nine months ended September 30, 2017 , the Company repurchased $485 million , or 13,588,304 shares, of its outstanding common stock. Th e repurchased shares are held in treasury stock. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense Income tax expense was $165 million and $130 million for the three months ended September 30, 2017 and 2016 , respectively, resulting in effective tax rates of 32.2% and 30.5% , respectively. Income tax expense was $423 million and $357 million for the nine months ended September 30, 2017 and 2016 , respectively, resulting in effective tax rates of 30.0% and 31.9% , respectively. For the nine months ended September 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 permanent benefits from tax credits and tax-exempt income. For the nine months ended September 30, 2016 , the effective tax rate compared favorably to the statutory rate of 35% primarily as a result of permanent benefits from tax credits and tax-exempt income. Deferred Tax Liability At September 30, 2017 , the Company reported a net deferred tax liability of $744 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 September 30, 2017 . |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 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 September 30, 2017 , the overall derivative asset value decreased $31 million and the liability balance decreased by $417 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, variation margin payments made on certain centrally cleared derivative contracts are legally classified 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 certain interest rate swaps in 2017, 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, these variation margin balances were characterized as collateral. Variation margin balances legally characterized as collateral are 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: September 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 $17,300 $6 $— $13,350 $52 $193 Derivatives not designated as hedging instruments: Interest rate contracts 69,436 502 338 54,656 557 452 Foreign exchange contracts 10,147 146 142 8,039 134 126 Other contracts 1,256 10 5 1,498 16 7 Total derivatives not designated as hedging instruments 658 485 707 585 Gross derivative fair values 664 485 759 778 Less: Gross amounts offset in the Consolidated Balance Sheets (3) (65 ) (65 ) (106 ) (106 ) Less: Cash collateral applied (3) (3 ) (178 ) (26 ) (13 ) Total net derivative fair values presented in the Consolidated Balance Sheets $596 $242 $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. For interest rate contracts, the notional amount is 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 changes in the treatment of variation margin on certain centrally cleared derivatives. (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 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 which are designated as fair value or cash flow hedges, 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 September 30, 2017 Three Months Ended September 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 ($5 ) $4 ($1 ) ($27 ) $25 ($2 ) Amounts Recognized in Other Income for the Nine Months Ended September 30, 2017 Nine Months Ended September 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 $5 ($5 ) $— $57 ($58 ) ($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 $7 million in pre-tax net losses 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Effective portion of (loss) gain recognized in OCI (1) ($2 ) ($1 ) $35 $74 Amounts reclassified from OCI to interest income (2) 3 23 23 66 Amounts reclassified from OCI to interest expense (2) 1 (8 ) (2 ) (24 ) Amounts reclassified from OCI to other income (3) — (5 ) — (5 ) (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. (3) This includes gains and losses attributable to previously hedged cash flows where the likelihood of occurrence of those cash flows is no longer probable. Derivatives not designated as hedging instruments 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Customer derivative contracts Customer interest rate contracts (1) $12 ($32 ) $92 $63 Customer foreign exchange contracts (1) 61 17 157 45 Residential loan commitments (2) — 1 3 8 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (2 ) 45 (58 ) (31 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (1) (55 ) (19 ) (140 ) (46 ) Forward sale contracts (2) (1 ) 4 (7 ) (6 ) Total $15 $16 $47 $33 (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 | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 Undrawn commitments to extend credit $61,934 $60,872 Financial standby letters of credit 2,080 1,892 Performance letters of credit 42 40 Commercial letters of credit 68 43 Marketing rights 41 44 Risk participation agreements 20 19 Residential mortgage loans sold with recourse 7 8 Total $64,192 $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 September 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 $3 million for both the nine months ended September 30, 2017 and for the year ended December 31, 2016 ; and as of September 30, 2017 is obligated to pay $41 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 $20 million and $19 million at September 30, 2017 and December 31, 2016 , respectively. 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 nine 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 $375 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. 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 $241 million and $299 million , respectively, at September 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 made substantial progress towards full resolution of the legacy regulatory enforcement matters set forth below. As previously reported, the Company and its banking subsidiaries had entered into consent orders in 2015 with 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. Since the Company’s last quarterly report, the regulators notified the Company and its banking subsidiaries that they had terminated the consent orders related to past deposit reconciliation practices after determining that the Company and its banking subsidiaries had satisfied the required actions under the consent orders. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 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 ($1) million and $1 million for the three months ended September 30, 2017 and 2016, respectively. The Company recognized changes in fair value in mortgage banking income of $9 million and $13 million for the nine months ended September 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 September 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 other noninterest income on the Consolidated Statements of Operations. 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 September 30, 2017 and 2016. The Company recognized $4 million in other noninterest income related to its commercial trading portfolio for the nine months ended September 30, 2017 and $3 million for the nine months ended September 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: September 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 $349 $349 $— $504 $505 ($1 ) Commercial and commercial real estate loans held for sale, at fair value 151 151 — 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 September 30, 2017 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,963 $— $19,963 $— State and political subdivisions 7 — 7 — U.S. Treasury and other 12 12 — — Total securities available for sale 19,982 12 19,970 — Loans held for sale, at fair value: Residential loans held for sale 349 — 349 — Commercial loans held for sale 151 — 151 — Total loans held for sale, at fair value 500 — 500 — Derivative assets (1) : Interest rate swaps 508 — 508 — Foreign exchange contracts 146 — 146 — Other contracts 10 — 10 — Total derivative assets 664 — 664 — Other investment securities, at fair value: Money market mutual fund 160 160 — — Other investments 5 — 5 — Total other investment securities, at fair value 165 160 5 — Total assets $21,311 $172 $21,139 $— Derivative liabilities (1) : Interest rate swaps $338 $— $338 $— Foreign exchange contracts 142 — 142 — Other contracts 5 — 5 — Total derivative liabilities 485 — 485 — Total liabilities $485 $— $485 $— (1) Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. 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 September 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 sell. 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Impaired collateral-dependent loans ($4 ) ($18 ) ($31 ) ($29 ) MSRs — (2 ) 1 (6 ) Foreclosed assets (1 ) — (3 ) (2 ) Leased assets — — (15 ) — — The following table presents assets and liabilities measured at fair value on a nonrecurring basis: September 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 $300 $— $300 $— $355 $— $355 $— MSRs 183 — — 183 182 — — 182 Foreclosed assets 32 — 32 — 44 — 44 — Leased assets 131 — 131 — 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 AFS securities. 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: September 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 $4,823 $4,839 $— $— $4,823 $4,839 $— $— Other investment securities, at cost 772 772 — — 772 772 — — Other loans held for sale 724 724 — — — — 724 724 Loans and leases 110,151 110,710 — — 300 300 109,851 110,410 Financial Liabilities: Deposits 113,235 113,205 — — 113,235 113,205 — — Federal funds purchased and securities sold under agreements to repurchase 453 453 — — 453 453 — — Other short-term borrowed funds 1,505 1,505 — — 1,505 1,505 — — Long-term borrowed funds 13,400 13,543 — — 13,400 13,543 — — 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 | 9 Months Ended |
Sep. 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, 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) (in millions, except ratio data) Amount Ratio Amount Ratio (5) Amount Ratio As of September 30, 2017 Common equity tier 1 capital (1) $14,093 11.1 % $7,314 5.750 % $8,268 6.5 % Tier 1 capital (2) 14,340 11.3 9,222 7.250 10,176 8.0 Total capital (3) 17,560 13.8 11,766 9.250 12,720 10.0 Tier 1 leverage (4) 14,340 9.9 5,780 4.000 7,225 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 FRB’s 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. 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 informed the Company that it did not object to the Company’s 2017 Capital Plan or to its proposed capital actions for the period beginning July 1, 2017 and ending June 30, 2018. The Company’s 2017 Capital Plan includes quarterly common dividends of $0.18 per share through the end of 2017, the potential to raise the quarterly common dividend to $0.22 per share in 2018, and a share repurchase plan through the second quarter of 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. During the three month periods ended September 30, 2017 and 2016, the Company recorded common dividends of $90 million and $62 million , respectively, and recorded semi-annual preferred dividends of $7 million for both periods. During the nine month periods ended September 30, 2017 and 2016, the Company recorded common dividends of $233 million and $179 million , respectively, and recorded semi-annual preferred dividends of $14 million for both periods. During the three months ended September 30, 2017 and 2016, the Parent Company repurchased outstanding common shares for $225 million and $250 million , respectively. During the nine months ended September 30, 2017 and 2016, the Parent Company repurchased outstanding common shares for $485 million and $250 million , respectively. In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Parent Company 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. As a result, CBNA entered into an agreement with the OCC pursuant to which it developed and submitted to the OCC a remediation plan setting forth the specific actions it would take to bring itself back into compliance with the conditions to own a financial subsidiary. Since the Company’s last quarterly report, the OCC notified CBNA that it had terminated the agreement after considering the actions taken under the remediation plan and determining that CBNA had satisfied the conditions to own a financial subsidiary. |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 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 September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at July 1, 2016 $39 $166 ($364 ) ($159 ) Other comprehensive income before reclassifications (1 ) (28 ) — (29 ) Other-than-temporary impairment not recognized in earnings on securities — 3 — 3 Amounts reclassified from other comprehensive (loss) income (6 ) 2 2 (2 ) Net other comprehensive income (7 ) (23 ) 2 (28 ) Balance at September 30, 2016 $32 $143 ($362 ) ($187 ) Balance at July 1, 2017 ($76 ) ($128 ) ($389 ) ($593 ) Other comprehensive income before reclassifications (1 ) 13 — 12 Other-than-temporary impairment not recognized in earnings on securities — — — — Amounts reclassified from other comprehensive (loss) income (2 ) (1 ) 3 — Net other comprehensive income (3 ) 12 3 12 Balance at September 30, 2017 ($79 ) ($116 ) ($386 ) ($581 ) As of and for the nine months ended September 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 45 190 — 235 Other-than-temporary impairment not recognized in earnings on securities — (18 ) — (18 ) Amounts reclassified from other comprehensive (loss) income (23 ) (1 ) 7 (17 ) Net other comprehensive income 22 171 7 200 Balance at September 30, 2016 $32 $143 ($362 ) ($187 ) Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive income before reclassifications 22 74 — 96 Other-than-temporary impairment not recognized in earnings on securities — (2 ) — (2 ) Amounts reclassified from other comprehensive (loss) income (13 ) (2 ) 8 (7 ) Net other comprehensive income 9 70 8 87 Balance at September 30, 2017 ($79 ) ($116 ) ($386 ) ($581 ) The following table presents the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 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: $3 $23 $23 $66 Interest income 1 (8 ) (2 ) (24 ) Interest expense — (5 ) — (5 ) Other income 4 10 21 37 Income before income tax expense 2 4 8 14 Income tax expense $2 $6 $13 $23 Net income Reclassification of net securities gains (losses) to net income: $2 $— $9 $13 Securities gains, net (1 ) (3 ) (6 ) (11 ) Net securities impairment losses recognized in earnings 1 (3 ) 3 2 Income before income tax expense — (1 ) 1 1 Income tax expense $1 ($2 ) $2 $1 Net income Reclassification of changes related to the employee benefit plan: ($5 ) ($4 ) ($14 ) ($12 ) Salaries and employee benefits (5 ) (4 ) (14 ) (12 ) Income before income tax expense (2 ) (2 ) (6 ) (5 ) Income tax expense ($3 ) ($2 ) ($8 ) ($7 ) Net income Total reclassification gains $— $2 $7 $17 Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Net interest income (includes $4, $15, $21 and $42 of AOCI reclassifications, respectively) $1,062 $945 $3,093 $2,772 Provision for credit losses 72 86 238 267 Noninterest income (includes $1, ($8), $3 and ($3) of AOCI reclassifications, respectively) 381 435 1,130 1,120 Noninterest expense (includes $5, $4, $14 and $12 of AOCI reclassifications, respectively) 858 867 2,576 2,505 Income before income tax expense 513 427 1,409 1,120 Income tax expense (includes $0, $1, $3 and $10 income tax net expense from reclassification items, respectively) 165 130 423 357 Net income $348 $297 $986 $763 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company is managed by its Chief Executive Officer 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 Chief Executive Officer. The Chief Executive Officer 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 Chief Executive Officer. 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 September 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $674 $354 $34 $1,062 Noninterest income 227 136 18 381 Total revenue 901 490 52 1,443 Noninterest expense 648 195 15 858 Profit before provision for credit losses 253 295 37 585 Provision for credit losses 65 — 7 72 Income before income tax expense 188 295 30 513 Income tax expense 66 94 5 165 Net income $122 $201 $25 $348 Total average assets $60,012 $49,833 $40,167 $150,012 As of and for the Three Months Ended September 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $621 $327 ($3 ) $945 Noninterest income 229 123 83 435 Total revenue 850 450 80 1,380 Noninterest expense 650 181 36 867 Profit before provision for credit losses 200 269 44 513 Provision for credit losses 57 19 10 86 Income before income tax expense (benefit) 143 250 34 427 Income tax expense (benefit) 51 88 (9 ) 130 Net income $92 $162 $43 $297 Total average assets $56,689 $47,902 $39,808 $144,399 As of and for the Nine Months Ended September 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,969 $1,044 $80 $3,093 Noninterest income 676 400 54 1,130 Total revenue 2,645 1,444 134 4,223 Noninterest expense 1,939 577 60 2,576 Profit before provision for credit losses 706 867 74 1,647 Provision for credit losses 189 20 29 238 Income before income tax expense (benefit) 517 847 45 1,409 Income tax expense (benefit) 182 279 (38 ) 423 Net income $335 $568 $83 $986 Total average assets $59,310 $49,604 $40,649 $149,563 As of and for the Nine Months Ended September 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,804 $941 $27 $2,772 Noninterest income 656 344 120 1,120 Total revenue 2,460 1,285 147 3,892 Noninterest expense 1,898 554 53 2,505 Profit before provision for credit losses 562 731 94 1,387 Provision for credit losses 169 27 71 267 Income before income tax expense (benefit) 393 704 23 1,120 Income tax expense (benefit) 140 245 (28 ) 357 Net income $253 $459 $51 $763 Total average assets $55,825 $46,869 $39,101 $141,795 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 | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Three Months Ended September 30, Nine Months Ended September 30, (in millions, except share and per-share data) 2017 2016 2017 2016 Numerator (basic and diluted): Net income $348 $297 $986 $763 Less: Preferred stock dividends 7 7 14 14 Net income available to common stockholders $341 $290 $972 $749 Denominator: Weighted-average common shares outstanding - basic 500,861,076 519,458,976 505,529,991 525,477,273 Dilutive common shares: share-based awards 1,296,308 1,663,490 1,532,814 1,784,111 Weighted-average common shares outstanding - diluted 502,157,384 521,122,466 507,062,805 527,261,384 Earnings per common share: Basic $0.68 $0.56 $1.92 $1.43 Diluted 0.68 0.56 1.92 1.42 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 nine months ended September 30, 2017 excluded 4,181 and 378,378 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 nine months ended September 30, 2016 . |
OTHER INCOME
OTHER INCOME | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | OTHER INCOME The following table presents the details of other income: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Bank-owned life insurance income $14 $14 $40 $40 Other 5 76 10 93 Other income $19 $90 $50 $133 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Deposit insurance $34 $32 $102 $87 Promotional expense 27 24 82 73 Settlements and operating losses 18 18 43 40 Other 56 70 182 187 Other operating expense $135 $144 $409 $387 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated the impacts of events that have occurred subsequent to September 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) | 9 Months Ended |
Sep. 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 Annual Report on 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 | Accounting Pronouncements Adopted in 2017 Pronouncement Summary of Guidance Effects on Financial Statements Stock Compensation Issued March 2016 • Requires that all excess tax benefits and tax deficiencies that pertain to employee stock-based incentive payments are recognized within income tax expense in the Consolidated Statement of Operations, rather than within additional paid in capital. • This standard also allows entities to make a one-time policy election to account for forfeitures when they occur, which the Company elected to do. • Adopted January 1, 2017 • Adoption of this guidance did not have a material impact on the Company’s unaudited interim Consolidated Financial Statements Accounting Pronouncements Pending Adoption Pronouncement Summary of Guidance Effects on Financial Statements Derivatives and Hedging Issued August 2017 • Reduces the complexity and operational burdens of the current hedge accounting model and portrays more clearly the effects of hedge accounting in the financial statements. • Modifies current requirements to facilitate the application of hedge accounting to partial-term hedges, hedges of prepayable financial instruments, and other strategies. • Eliminates the requirement to separately recognize and report hedge ineffectiveness. • Requires the effects of fair value hedges to be classified in the same income statement line as the earnings effect of the hedged item. For example, changes in the fair values of a derivative and a hedged item designated in a fair value hedge of interest rate risk will require classification within Interest income or Interest expense. • Requires the effects of cash flow hedges to be deferred in other comprehensive income until the hedged cash flows affect earnings. Periodic hedge ineffectiveness will no longer be separately recognized in earnings. • Required effective date: January 1, 2019. Early adoption is permitted. • The Company is still assessing the impacts upon adoption on the Consolidated Financial Statements. Stock Compensation Issued May 2017 • Requires modification accounting unless the fair value, vesting conditions, and classification of the modified award are the same as the original award immediately before the modification. • Applied prospectively to all modifications of share-based awards after the adoption date. • Required effective date: January 1, 2018. Early adoption is permitted. The Company will adopt the new standard in the first quarter of 2018. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • Requires amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. • Requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • Required effective date: January 1, 2019. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Issued March 2017 • Requires the service cost component of net periodic pension and postretirement benefit cost to be reported separately in the Consolidated Statements of Operations from the other components (e.g., expected return on assets, interest costs, amortization of gains/losses and prior service costs). • Requires presentation in the Consolidated Statements of Operations of the service cost component in the same line item as other employee compensation costs and presentation of the other components in a different line item from the service cost component. • Required effective date: January 1, 2018. Early adoption is permitted. The Company will adopt the new standard in the first quarter of 2018. • Adoption will have no impact on the Company’s net income, but based on recent experience that the expected return on assets exceeds the sum of the other components, the Company expects that the guidance will result in an increase in salaries and employee benefits expense and a reduction in other operating expense. Goodwill • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. • Applied prospectively to all goodwill impairment tests performed after the adoption date. • Required effective date: January 1, 2020. Early adoption is permitted. The Company does not currently intend to early adopt the new standard. • Adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. Pronouncement Summary of Guidance Effects on Financial Statements Financial Instruments - Credit Losses Issued June 2016 • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost (including securities HTM), which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets. • Amends existing impairment guidance for securities AFS to incorporate an allowance, which will allow for reversals of impairment losses in the event that the credit of an issuer improves. • Requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. • Required effective date: January 1, 2020. Early adoption permitted on January 1, 2019. • The Company established a company-wide, cross-discipline governance structure to implement the new standard. 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 standard will have on its Consolidated Financial Statements, the Company expects the standard 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. Leases Issued February 2016 • 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. • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. • 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 Consolidated Statements of Operations, while for operating leases, such amounts should be recognized as a combined expense. • Requires expanded disclosures about the nature and terms of lease agreements. • Requires adoption using a modified cumulative effect approach wherein the guidance is applied to all periods presented. • Required effective date: January 1, 2019. Early adoption is permitted. • The Company does not expect early adoption of the new leasing standard. • The Company occupies certain banking offices and equipment under non-cancelable operating lease agreements, which currently are not reflected in its Consolidated Balance Sheets. • The Company expects to report increased assets and liabilities as a result of recognizing right-of-use assets and lease liabilities in its Consolidated Balance Sheets. As of December 31, 2016, the Company was committed to $809 million of minimum lease payments under non-cancelable operating lease agreements. • The evaluation of the impact of the leasing pronouncement will be adjusted based on execution of new leases, termination of existing leases prior to the effective date, and any changes to key lease assumptions such as renewals, extensions and discount rates. • The Company does not expect a material change to the timing of expense recognition in the Consolidated Statements of Operations. Pronouncement Summary of Guidance Effects on Financial Statements Revenue Recognition: Revenue from Contracts with Customers Issued May 2014 • 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. • Changes the accounting for certain contract costs including whether they may be offset against revenues in the Consolidated Statements of Operations. • Requires new qualitative and quantitative disclosures, including information about disaggregation of revenue and performance obligations. • May be adopted using a full retrospective approach or a modified cumulative effect approach wherein the guidance is applied only to existing contracts as of the date of initial adoption and to new contracts transacted after that date. • Required effective date: January 1, 2018. Early adoption is permitted. • The Company plans to adopt the revenue guidance in the first quarter of 2018 using the modified retrospective method. Net interest income on financial assets and liabilities is explicitly excluded from the scope of the pronouncement. • 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 these efforts, the Company has not identified material changes to the timing or amount of revenue recognition. • The Company has substantially completed its evaluation of the expanded disclosure requirements and expects the most significant item will be the disaggregation of revenue. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 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: September 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 19,735 76 (183 ) 19,628 19,231 78 (264 ) 19,045 Other/non-agency 337 6 (8 ) 335 427 2 (28 ) 401 Total mortgage-backed securities 20,072 82 (191 ) 19,963 19,658 80 (292 ) 19,446 Total debt securities available for sale 20,091 82 (191 ) 19,982 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 $20,091 $82 ($191 ) $19,982 $19,713 $80 ($292 ) $19,501 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $3,966 $18 ($28 ) $3,956 $4,126 $12 ($44 ) $4,094 Other/non-agency 857 26 — 883 945 19 — 964 Total securities held to maturity $4,823 $44 ($28 ) $4,839 $5,071 $31 ($44 ) $5,058 Other Investment Securities, at Fair Value Money market mutual fund $160 $— $— $160 $91 $— $— $91 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $165 $— $— $165 $96 $— $— $96 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $463 $— $— $463 Federal Home Loan Bank stock 302 — — 302 479 — — 479 Other equity securities 7 — — 7 — — — — Total other investment securities, at cost $772 $— $— $772 $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: September 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 298 13,113 (193 ) 30 545 (18 ) 328 13,658 (211 ) Other/non-agency — — — 11 121 (8 ) 11 121 (8 ) Total mortgage-backed securities 298 13,113 (193 ) 41 666 (26 ) 339 13,779 (219 ) Total 298 $13,113 ($193 ) 41 $666 ($26 ) 339 $13,779 ($219 ) 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Cumulative balance at beginning of period $79 $73 $75 $66 Credit impairments recognized in earnings on securities that have been previously impaired 1 3 6 11 Reductions due to increases in cash flow expectations on impaired securities (1) — (1 ) (1 ) (2 ) Cumulative balance at end of period $80 $75 $80 $75 (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 as of September 30, 2017 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. September 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 1 169 1,149 18,416 19,735 Other/non-agency — 25 — 312 337 Total debt securities available for sale 13 194 1,149 18,735 20,091 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,966 3,966 Other/non-agency — — — 857 857 Total debt securities held to maturity — — — 4,823 4,823 Total amortized cost of debt securities $13 $194 $1,149 $23,558 $24,914 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 1 169 1,166 18,292 19,628 Other/non-agency — 25 — 310 335 Total debt securities available for sale 13 194 1,166 18,609 19,982 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 3,956 3,956 Other/non-agency — — — 883 883 Total debt securities held to maturity — — — 4,839 4,839 Total fair value of debt securities $13 $194 $1,166 $23,448 $24,821 |
Schedule of income recognized on investment securities | Realized gains and losses on securities are presented below: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Gains on sale of debt securities $2 $— $9 $13 Losses on sale of debt securities — — — — Debt securities gains, net $2 $— $9 $13 Equity securities gains $— $— $1 $— |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are presented below: September 30, 2017 December 31, 2016 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $459 $454 $631 $620 Pledged against FHLB borrowed funds 864 890 953 972 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 2,866 2,858 3,575 3,563 |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio is presented below: (in millions) September 30, 2017 December 31, 2016 Commercial $37,706 $37,274 Commercial real estate 11,426 10,624 Leases 3,249 3,753 Total commercial 52,381 51,651 Residential mortgages 16,619 15,115 Home equity loans 1,483 1,858 Home equity lines of credit 13,555 14,100 Home equity loans serviced by others 599 750 Home equity lines of credit serviced by others 166 219 Automobile 13,311 13,938 Education (1) 8,014 6,610 Credit cards 1,754 1,691 Other retail 2,269 1,737 Total retail 57,770 56,018 Total loans and leases (2) (3) $110,151 $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 $1.2 billion and $625 million as of September 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 $17.7 billion and $17.3 billion at September 30, 2017 and December 31, 2016 , respectively. |
ALLOWANCE FOR CREDIT LOSSES, 31
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 9 Months Ended |
Sep. 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 September 30, 2017 Nine Months Ended September 30, 2017 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $614 $605 $1,219 $663 $573 $1,236 Charge-offs (12 ) (108 ) (120 ) (60 ) (321 ) (381 ) Recoveries 12 43 55 27 127 154 Net charge-offs — (65 ) (65 ) (33 ) (194 ) (227 ) Provision charged to income 24 46 70 8 207 215 Allowance for loan and lease losses, end of period 638 586 1,224 638 586 1,224 Reserve for unfunded lending commitments, beginning of period 93 — 93 72 — 72 Provision for unfunded lending commitments 2 — 2 23 — 23 Reserve for unfunded lending commitments, end of period 95 — 95 95 — 95 Total allowance for credit losses, end of period $733 $586 $1,319 $733 $586 $1,319 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (in millions) Commercial Retail Total Commercial Retail Total Allowance for loan and lease losses, beginning of period $676 $570 $1,246 $596 $620 $1,216 Charge-offs (33 ) (112 ) (145 ) (53 ) (331 ) (384 ) Recoveries 14 48 62 23 130 153 Net charge-offs (19 ) (64 ) (83 ) (30 ) (201 ) (231 ) Provision (credited) charged to income (2 ) 79 77 89 166 255 Allowance for loan and lease losses, end of period 655 585 1,240 655 585 1,240 Reserve for unfunded lending commitments, beginning of period 61 — 61 58 — 58 Provision for unfunded lending commitments 9 — 9 12 — 12 Reserve for unfunded lending commitments, end of period 70 — 70 70 — 70 Total allowance for credit losses, end of period $725 $585 $1,310 $725 $585 $1,310 |
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: September 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $444 $759 $1,203 $424 $799 $1,223 Formula-based evaluation 51,937 57,011 108,948 51,227 55,219 106,446 Total $52,381 $57,770 $110,151 $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: September 30, 2017 December 31, 2016 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $46 $35 $81 $63 $43 $106 Formula-based evaluation 687 551 1,238 672 530 1,202 Allowance for credit losses $733 $586 $1,319 $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: September 30, 2017 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,309 $1,368 $770 $259 $37,706 Commercial real estate 10,737 514 146 29 11,426 Leases 3,155 73 21 — 3,249 Total $49,201 $1,955 $937 $288 $52,381 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: September 30, 2017 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $16,323 $141 $31 $10 $114 $16,619 Home equity loans 1,306 101 14 6 56 1,483 Home equity lines of credit 12,874 419 54 23 185 13,555 Home equity loans serviced by others 538 32 9 4 16 599 Home equity lines of credit serviced by others 125 20 3 1 17 166 Automobile 11,917 1,087 197 54 56 13,311 Education 7,803 135 23 12 41 8,014 Credit cards 1,673 47 11 8 15 1,754 Other retail 2,170 60 17 12 10 2,269 Total $54,729 $2,042 $359 $130 $510 $57,770 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) September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Commercial $297 $322 $5 $2 Commercial real estate 28 50 2 — Leases — 15 — — Total commercial 325 387 7 2 Residential mortgages (1) 124 144 15 18 Home equity loans 76 98 — — Home equity lines of credit 236 243 — — Home equity loans serviced by others 26 32 — — Home equity lines of credit serviced by others 21 33 — — Automobile 66 50 — — Education 38 38 3 5 Credit card 15 16 — — Other retail 5 4 5 1 Total retail 607 658 23 24 Total $932 $1,045 $30 $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 $15 million and $18 million as of September 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 September 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) September 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: September 30, 2017 December 31, 2016 Nonperforming commercial loans and leases as a percentage of total loans and leases 0.30 % 0.36 % Nonperforming retail loans as a percentage of total loans and leases 0.55 0.61 Total nonperforming loans and leases as a percentage of total loans and leases 0.85 % 0.97 % Nonperforming commercial assets as a percentage of total assets 0.21 % 0.26 % Nonperforming retail assets as a percentage of total assets 0.43 0.47 Total nonperforming assets as a percentage of total assets 0.64 % 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: September 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 $39 $5 $302 $346 $36 $4 $324 $364 Commercial real estate 4 2 30 36 1 2 50 53 Leases 5 — — 5 1 — 15 16 Total commercial 48 7 332 387 38 6 389 433 Residential mortgages 31 10 114 155 53 12 135 200 Home equity loans 14 6 56 76 23 7 73 103 Home equity lines of credit 54 23 185 262 57 20 195 272 Home equity loans serviced by others 9 4 16 29 14 5 17 36 Home equity lines of credit serviced by others 3 1 17 21 3 2 31 36 Automobile 197 54 56 307 172 38 42 252 Education 23 12 41 76 24 13 43 80 Credit cards 11 8 15 34 12 9 16 37 Other retail 17 12 10 39 8 4 4 16 Total retail 359 130 510 999 366 110 556 1,032 Total $407 $137 $842 $1,386 $404 $116 $945 $1,465 |
Schedule of impaired loans by class | A summary of impaired loans by class is presented below: September 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 $231 $45 $185 $491 $416 Commercial real estate 24 1 4 39 28 Total commercial 255 46 189 530 444 Residential mortgages 23 2 117 185 140 Home equity loans 42 4 83 167 125 Home equity lines of credit 16 1 181 242 197 Home equity loans serviced by others 31 2 19 60 50 Home equity lines of credit serviced by others 3 — 6 13 9 Automobile 4 — 19 30 23 Education 159 18 20 179 179 Credit cards 25 7 1 26 26 Other retail 5 1 5 11 10 Total retail 308 35 451 913 759 Total $563 $81 $640 $1,443 $1,203 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 September 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $1 $391 $1 $340 Commercial real estate — 33 — 40 Total commercial 1 424 1 380 Residential mortgages — 137 1 169 Home equity loans 1 125 2 153 Home equity lines of credit 2 192 2 192 Home equity loans serviced by others — 51 1 64 Home equity lines of credit serviced by others — 9 — 9 Automobile — 21 — 17 Education 3 178 1 159 Credit cards — 25 — 25 Other retail — 10 1 12 Total retail 6 748 8 800 Total $7 $1,172 $9 $1,180 Nine Months Ended September 30, 2017 2016 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $3 $402 $4 $277 Commercial real estate — 39 — 53 Total commercial 3 441 4 330 Residential mortgages 3 128 3 161 Home equity loans 4 124 5 151 Home equity lines of credit 5 178 5 182 Home equity loans serviced by others 2 51 3 64 Home equity lines of credit serviced by others — 9 — 9 Automobile — 18 — 14 Education 7 178 5 157 Credit cards 1 23 1 25 Other retail — 10 1 13 Total retail 22 719 23 776 Total $25 $1,160 $27 $1,106 |
Troubled debt restructurings on financing receivables | The table below summarizes how loans were modified during the three months ended September 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 September 30, 2017 and were paid off in full, charged off, or sold prior to September 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 3 $1 $1 17 $8 $7 Commercial real estate — — — 1 — — Leases — — — — — — Total commercial 3 1 1 18 8 7 Residential mortgages 13 1 2 15 1 2 Home equity loans 25 2 1 — — — Home equity lines of credit 11 1 1 86 11 11 Home equity loans serviced by others 3 — — — — — Home equity lines of credit serviced by others — — — — — — Automobile 28 1 1 8 — — Education — — — — — — Credit cards 661 3 3 — — — Other retail — — — — — — Total retail 741 8 8 109 12 13 Total 744 $9 $9 127 $20 $20 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 7 $28 $30 $— $— Commercial real estate 1 — — — — Leases — — — — — Total commercial 8 28 30 — — Residential mortgages 38 3 3 (1 ) — Home equity loans 49 3 3 — — Home equity lines of credit 110 6 7 — 1 Home equity loans serviced by others 11 1 — — — Home equity lines of credit serviced by others 8 1 — — — Automobile 392 7 6 — 1 Education 67 2 2 — — Credit cards — — — 1 — Other retail 2 — — — — Total retail 677 23 21 — 2 Total 685 $51 $51 $— $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 three months ended September 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 September 30, 2016 and were paid off in full, charged off, or sold prior to September 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 $— $— 8 $1 $1 Commercial real estate — — — — — — Leases — — — — — — Total commercial 3 — — 8 1 1 Residential mortgages 28 3 3 33 6 5 Home equity loans 36 2 2 2 — 1 Home equity lines of credit 20 1 2 56 6 6 Home equity loans serviced by others 7 1 1 — — — Home equity lines of credit serviced by others 2 — — 1 — — Automobile 26 1 1 6 — — Education — — — — — — Credit cards 544 3 3 — — — Other retail 2 — — — — — Total retail 665 11 12 98 12 12 Total 668 $11 $12 106 $13 $13 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 $6 $5 $4 $— Commercial real estate — — — — — Leases — — — — — Total commercial 4 6 5 4 — Residential mortgages 55 5 5 — — Home equity loans 52 3 3 — — Home equity lines of credit 94 8 7 — 1 Home equity loans serviced by others 17 1 1 — — Home equity lines of credit serviced by others 6 — 1 — — Automobile 264 5 5 — — Education 108 2 2 1 — Credit cards — — — 1 — Other retail 3 — — — — Total retail 599 24 24 2 1 Total 603 $30 $29 $6 $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 nine months ended September 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 nine months ended September 30, 2017 and were paid off in full, charged off, or sold prior to September 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 7 $2 $2 35 $22 $21 Commercial real estate — — — 1 — — Leases — — — — — — Total commercial 7 2 2 36 22 21 Residential mortgages 56 6 7 50 9 10 Home equity loans 68 4 4 1 — — Home equity lines of credit 41 2 2 204 26 26 Home equity loans serviced by others 14 1 1 — — — Home equity lines of credit serviced by others 3 — — 2 — — Automobile 93 2 2 23 — — Education — — — — — — Credit cards 1,850 10 10 — — — Other retail 1 — — — — — Total retail 2,126 25 26 280 35 36 Total 2,133 $27 $28 316 $57 $57 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 12 $64 $65 $1 $— Commercial real estate 1 — — — — Leases — — — — — Total commercial 13 64 65 1 — Residential mortgages 122 13 13 (1 ) — Home equity loans 192 11 11 — — Home equity lines of credit 295 20 20 — 1 Home equity loans serviced by others 41 2 1 — — Home equity lines of credit serviced by others 21 2 1 — — Automobile 1,017 18 16 — 3 Education 235 4 4 1 — Credit cards — — — 3 — Other retail 5 — — (1 ) — Total retail 1,928 70 66 2 4 Total 1,941 $134 $131 $3 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) 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 nine months ended September 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 nine months ended September 30, 2016 and were paid off in full, charged off, or sold prior to September 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 11 $1 $1 62 $9 $9 Commercial real estate — — — — — — Leases — — — — — — Total commercial 11 1 1 62 9 9 Residential mortgages 53 7 7 49 9 8 Home equity loans 65 4 4 39 4 5 Home equity lines of credit 33 2 3 83 9 9 Home equity loans serviced by others 13 1 1 — — — Home equity lines of credit serviced by others 4 — — 5 1 1 Automobile 77 2 2 14 — — Education — — — — — — Credit cards 1,625 9 9 — — — Other retail 3 — — — — — Total retail 1,873 25 26 190 23 23 Total 1,884 $26 $27 252 $32 $32 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 13 $47 $46 $3 $— Commercial real estate — — — — — Leases — — — — — Total commercial 13 47 46 3 — Residential mortgages 186 20 20 — — Home equity loans 233 14 14 (1 ) — Home equity lines of credit 218 16 15 — 1 Home equity loans serviced by others 51 2 2 — — Home equity lines of credit serviced by others 19 1 1 — — Automobile 803 15 14 — 1 Education 405 8 8 3 — Credit cards — — — 2 — Other retail 11 — — — — Total retail 1,926 76 74 4 2 Total 1,939 $123 $120 $7 $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. |
Schedule of defaults | The table below summarizes TDRs that defaulted within 12 months of their modification date during the three and nine months ended September 30, 2017 and 2016 , respectively. 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 September 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 September 30, Nine Months Ended September 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 2 $4 5 $1 7 $5 16 $4 Commercial real estate — — — — 1 4 1 — Total commercial 2 4 5 1 8 9 17 4 Residential mortgages 35 5 57 7 121 15 146 19 Home equity loans 12 — 14 — 35 1 39 3 Home equity lines of credit 55 4 48 4 152 11 93 8 Home equity loans serviced by others 6 — 7 — 16 — 28 1 Home equity lines of credit serviced by others 4 — 3 — 8 — 14 — Automobile 42 — 43 — 103 1 80 1 Education 5 1 15 — 41 1 46 1 Credit cards 116 — 117 1 344 2 323 2 Other retail 2 — 2 — 4 — 2 — Total retail 277 10 306 12 824 31 771 35 Total 279 $14 311 $13 832 $40 788 $39 |
Schedule of loans that may increase credit exposure | The following tables present balances of loans with these characteristics: September 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 $436 $260 $319 $— $— $1,015 Interest only/negative amortization 1,738 — — — 1 1,739 Low introductory rate — — — 165 — 165 Multiple characteristics and other 2 — — — — 2 Total $2,176 $260 $319 $165 $1 $2,921 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) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of variable interest entities | A summary of these investments is presented below: (in millions) September 30, 2017 December 31, 2016 LIHTC investment included in other assets $898 $793 LIHTC unfunded commitments included in other liabilities 494 428 Renewable energy investments included in other assets 264 220 |
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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Tax credits included in income tax expense $20 $17 $63 $46 Amortization expense included in income tax expense 22 14 67 45 Other tax benefits included in income tax expense 7 2 22 15 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 9 Months Ended |
Sep. 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 September 30, As of and for the Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $166 $167 $173 Amount capitalized 9 10 28 20 Amortization (8 ) (9 ) (24 ) (26 ) Carrying amount before valuation allowance 171 167 171 167 Valuation allowance for servicing assets: Balance as of beginning of period 4 13 5 9 Valuation charge-offs (recoveries) — 2 (1 ) 6 Balance at end of period 4 15 4 15 Net carrying value of MSRs $167 $152 $167 $152 |
Servicing asset at amortized cost | Changes related to MSRs are presented below: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 MSRs: Balance as of beginning of period $170 $166 $167 $173 Amount capitalized 9 10 28 20 Amortization (8 ) (9 ) (24 ) (26 ) Carrying amount before valuation allowance 171 167 171 167 Valuation allowance for servicing assets: Balance as of beginning of period 4 13 5 9 Valuation charge-offs (recoveries) — 2 (1 ) 6 Balance at end of period 4 15 4 15 Net carrying value of MSRs $167 $152 $167 $152 |
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: September 30, 2017 December 31, 2016 Weighted Average Weighted Average (dollars in millions) Range Range Fair value $183 Min Max $182 Min Max Weighted average life (in years) 5.7 2.4 7.0 5.7 2.6 7.3 Weighted average constant prepayment rate 10.8% 9.2% 21.2% 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Weighted average life (in years) 6.5 5.7 6.6 5.9 Weighted average constant prepayment rate 10.8% 12.3% 10.2% 11.7% Weighted average discount rate 9.9% 9.8% 9.9% 9.8% |
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) September 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) | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 Federal funds purchased $— $533 Securities sold under agreements to repurchase 453 615 Other short-term borrowed funds 1,505 3,211 Total short-term borrowed funds $1,958 $4,359 Key data related to short-term borrowed funds is presented in the following table: As of and for the Three Months Ended September 30, As of and for the Nine Months Ended September 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 — % 0.03 % — % 0.03 % 0.26 % Other short-term borrowed funds (primarily short-term FHLB advances) 1.47 0.63 1.47 0.63 0.94 Maximum amount outstanding at month-end during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $724 $1,032 $1,174 $1,274 $1,522 Other short-term borrowed funds (primarily short-term FHLB advances) 1,755 2,515 3,508 4,764 5,461 Average amount outstanding during the period: Federal funds purchased and securities sold under agreements to repurchase (2) $733 $910 $807 $922 $947 Other short-term borrowed funds (primarily short-term FHLB advances) 1,624 2,564 2,283 3,133 3,207 Weighted-average interest rate during the period: (1) Federal funds purchased and securities sold under agreements to repurchase 0.47 % 0.10 % 0.34 % 0.09 % 0.09 % Other short-term borrowed funds (primarily short-term FHLB advances) 1.48 0.63 1.22 0.62 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) September 30, 2017 December 31, 2016 Parent Company: 4.150% fixed-rate subordinated debt, due 2022 $348 $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 249 249 4.300% fixed-rate subordinated debt, due 2025 749 749 2.375% fixed-rate senior unsecured debt, due 2021 348 348 Banking Subsidiaries: 2.300% senior unsecured notes, due 2018 (1) 746 745 2.450% senior unsecured notes, due 2019 (1) 747 747 2.500% senior unsecured notes, due 2019 (1) 743 741 2.250% senior unsecured notes, due 2020 (1) 697 — Floating-rate senior unsecured notes, due 2020 (1) 299 — Floating-rate senior unsecured notes, due 2020 (1) 249 — 2.200% senior unsecured notes, due 2020 (1) 498 — 2.550% senior unsecured notes, due 2021 (1) 973 965 Floating-rate senior unsecured notes, due 2022 (1) 249 — 2.650% senior unsecured notes, due 2022 (1) 496 — Federal Home Loan advances due through 2033 5,361 7,264 Other 23 10 Total long-term borrowed funds $13,400 $12,790 (1) Issued under CBNA’s Global Bank Note Program. |
Schedule of maturities of long-term borrowed funds | A summary of maturities for the Company’s long-term borrowed funds at September 30, 2017 is presented below: (in millions) Parent Company Banking Subsidiaries Consolidated Year 2018 $— $4,097 $4,097 2019 — 3,491 3,491 2020 — 1,760 1,760 2021 348 976 1,324 2022 348 750 1,098 2023 and thereafter 1,623 7 1,630 Total $2,319 $11,081 $13,400 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 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: September 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 $17,300 $6 $— $13,350 $52 $193 Derivatives not designated as hedging instruments: Interest rate contracts 69,436 502 338 54,656 557 452 Foreign exchange contracts 10,147 146 142 8,039 134 126 Other contracts 1,256 10 5 1,498 16 7 Total derivatives not designated as hedging instruments 658 485 707 585 Gross derivative fair values 664 485 759 778 Less: Gross amounts offset in the Consolidated Balance Sheets (3) (65 ) (65 ) (106 ) (106 ) Less: Cash collateral applied (3) (3 ) (178 ) (26 ) (13 ) Total net derivative fair values presented in the Consolidated Balance Sheets $596 $242 $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. For interest rate contracts, the notional amount is 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 changes in the treatment of variation margin on certain centrally cleared derivatives. (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 September 30, 2017 Three Months Ended September 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 ($5 ) $4 ($1 ) ($27 ) $25 ($2 ) Amounts Recognized in Other Income for the Nine Months Ended September 30, 2017 Nine Months Ended September 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 $5 ($5 ) $— $57 ($58 ) ($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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Effective portion of (loss) gain recognized in OCI (1) ($2 ) ($1 ) $35 $74 Amounts reclassified from OCI to interest income (2) 3 23 23 66 Amounts reclassified from OCI to interest expense (2) 1 (8 ) (2 ) (24 ) Amounts reclassified from OCI to other income (3) — (5 ) — (5 ) (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. (3) This includes gains and losses attributable to previously hedged cash flows where the likelihood of occurrence of those cash flows is no longer probable. |
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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Customer derivative contracts Customer interest rate contracts (1) $12 ($32 ) $92 $63 Customer foreign exchange contracts (1) 61 17 157 45 Residential loan commitments (2) — 1 3 8 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) (2 ) 45 (58 ) (31 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (1) (55 ) (19 ) (140 ) (46 ) Forward sale contracts (2) (1 ) 4 (7 ) (6 ) Total $15 $16 $47 $33 (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) | 9 Months Ended |
Sep. 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) September 30, 2017 December 31, 2016 Undrawn commitments to extend credit $61,934 $60,872 Financial standby letters of credit 2,080 1,892 Performance letters of credit 42 40 Commercial letters of credit 68 43 Marketing rights 41 44 Risk participation agreements 20 19 Residential mortgage loans sold with recourse 7 8 Total $64,192 $62,918 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 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: September 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 $349 $349 $— $504 $505 ($1 ) Commercial and commercial real estate loans held for sale, at fair value 151 151 — 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 September 30, 2017 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,963 $— $19,963 $— State and political subdivisions 7 — 7 — U.S. Treasury and other 12 12 — — Total securities available for sale 19,982 12 19,970 — Loans held for sale, at fair value: Residential loans held for sale 349 — 349 — Commercial loans held for sale 151 — 151 — Total loans held for sale, at fair value 500 — 500 — Derivative assets (1) : Interest rate swaps 508 — 508 — Foreign exchange contracts 146 — 146 — Other contracts 10 — 10 — Total derivative assets 664 — 664 — Other investment securities, at fair value: Money market mutual fund 160 160 — — Other investments 5 — 5 — Total other investment securities, at fair value 165 160 5 — Total assets $21,311 $172 $21,139 $— Derivative liabilities (1) : Interest rate swaps $338 $— $338 $— Foreign exchange contracts 142 — 142 — Other contracts 5 — 5 — Total derivative liabilities 485 — 485 — Total liabilities $485 $— $485 $— (1) Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Impaired collateral-dependent loans ($4 ) ($18 ) ($31 ) ($29 ) MSRs — (2 ) 1 (6 ) Foreclosed assets (1 ) — (3 ) (2 ) Leased assets — — (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: September 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 $300 $— $300 $— $355 $— $355 $— MSRs 183 — — 183 182 — — 182 Foreclosed assets 32 — 32 — 44 — 44 — Leased assets 131 — 131 — 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: September 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 $4,823 $4,839 $— $— $4,823 $4,839 $— $— Other investment securities, at cost 772 772 — — 772 772 — — Other loans held for sale 724 724 — — — — 724 724 Loans and leases 110,151 110,710 — — 300 300 109,851 110,410 Financial Liabilities: Deposits 113,235 113,205 — — 113,235 113,205 — — Federal funds purchased and securities sold under agreements to repurchase 453 453 — — 453 453 — — Other short-term borrowed funds 1,505 1,505 — — 1,505 1,505 — — Long-term borrowed funds 13,400 13,543 — — 13,400 13,543 — — 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) | 9 Months Ended |
Sep. 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) (in millions, except ratio data) Amount Ratio Amount Ratio (5) Amount Ratio As of September 30, 2017 Common equity tier 1 capital (1) $14,093 11.1 % $7,314 5.750 % $8,268 6.5 % Tier 1 capital (2) 14,340 11.3 9,222 7.250 10,176 8.0 Total capital (3) 17,560 13.8 11,766 9.250 12,720 10.0 Tier 1 leverage (4) 14,340 9.9 5,780 4.000 7,225 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) | 9 Months Ended |
Sep. 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 September 30, (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at July 1, 2016 $39 $166 ($364 ) ($159 ) Other comprehensive income before reclassifications (1 ) (28 ) — (29 ) Other-than-temporary impairment not recognized in earnings on securities — 3 — 3 Amounts reclassified from other comprehensive (loss) income (6 ) 2 2 (2 ) Net other comprehensive income (7 ) (23 ) 2 (28 ) Balance at September 30, 2016 $32 $143 ($362 ) ($187 ) Balance at July 1, 2017 ($76 ) ($128 ) ($389 ) ($593 ) Other comprehensive income before reclassifications (1 ) 13 — 12 Other-than-temporary impairment not recognized in earnings on securities — — — — Amounts reclassified from other comprehensive (loss) income (2 ) (1 ) 3 — Net other comprehensive income (3 ) 12 3 12 Balance at September 30, 2017 ($79 ) ($116 ) ($386 ) ($581 ) As of and for the nine months ended September 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 45 190 — 235 Other-than-temporary impairment not recognized in earnings on securities — (18 ) — (18 ) Amounts reclassified from other comprehensive (loss) income (23 ) (1 ) 7 (17 ) Net other comprehensive income 22 171 7 200 Balance at September 30, 2016 $32 $143 ($362 ) ($187 ) Balance at January 1, 2017 ($88 ) ($186 ) ($394 ) ($668 ) Other comprehensive income before reclassifications 22 74 — 96 Other-than-temporary impairment not recognized in earnings on securities — (2 ) — (2 ) Amounts reclassified from other comprehensive (loss) income (13 ) (2 ) 8 (7 ) Net other comprehensive income 9 70 8 87 Balance at September 30, 2017 ($79 ) ($116 ) ($386 ) ($581 ) |
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 September 30, Nine Months Ended September 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: $3 $23 $23 $66 Interest income 1 (8 ) (2 ) (24 ) Interest expense — (5 ) — (5 ) Other income 4 10 21 37 Income before income tax expense 2 4 8 14 Income tax expense $2 $6 $13 $23 Net income Reclassification of net securities gains (losses) to net income: $2 $— $9 $13 Securities gains, net (1 ) (3 ) (6 ) (11 ) Net securities impairment losses recognized in earnings 1 (3 ) 3 2 Income before income tax expense — (1 ) 1 1 Income tax expense $1 ($2 ) $2 $1 Net income Reclassification of changes related to the employee benefit plan: ($5 ) ($4 ) ($14 ) ($12 ) Salaries and employee benefits (5 ) (4 ) (14 ) (12 ) Income before income tax expense (2 ) (2 ) (6 ) (5 ) Income tax expense ($3 ) ($2 ) ($8 ) ($7 ) Net income Total reclassification gains $— $2 $7 $17 Net income The following table presents the effects on net income of the amounts reclassified out of AOCI: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Net interest income (includes $4, $15, $21 and $42 of AOCI reclassifications, respectively) $1,062 $945 $3,093 $2,772 Provision for credit losses 72 86 238 267 Noninterest income (includes $1, ($8), $3 and ($3) of AOCI reclassifications, respectively) 381 435 1,130 1,120 Noninterest expense (includes $5, $4, $14 and $12 of AOCI reclassifications, respectively) 858 867 2,576 2,505 Income before income tax expense 513 427 1,409 1,120 Income tax expense (includes $0, $1, $3 and $10 income tax net expense from reclassification items, respectively) 165 130 423 357 Net income $348 $297 $986 $763 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | As of and for the Three Months Ended September 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $674 $354 $34 $1,062 Noninterest income 227 136 18 381 Total revenue 901 490 52 1,443 Noninterest expense 648 195 15 858 Profit before provision for credit losses 253 295 37 585 Provision for credit losses 65 — 7 72 Income before income tax expense 188 295 30 513 Income tax expense 66 94 5 165 Net income $122 $201 $25 $348 Total average assets $60,012 $49,833 $40,167 $150,012 As of and for the Three Months Ended September 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $621 $327 ($3 ) $945 Noninterest income 229 123 83 435 Total revenue 850 450 80 1,380 Noninterest expense 650 181 36 867 Profit before provision for credit losses 200 269 44 513 Provision for credit losses 57 19 10 86 Income before income tax expense (benefit) 143 250 34 427 Income tax expense (benefit) 51 88 (9 ) 130 Net income $92 $162 $43 $297 Total average assets $56,689 $47,902 $39,808 $144,399 As of and for the Nine Months Ended September 30, 2017 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,969 $1,044 $80 $3,093 Noninterest income 676 400 54 1,130 Total revenue 2,645 1,444 134 4,223 Noninterest expense 1,939 577 60 2,576 Profit before provision for credit losses 706 867 74 1,647 Provision for credit losses 189 20 29 238 Income before income tax expense (benefit) 517 847 45 1,409 Income tax expense (benefit) 182 279 (38 ) 423 Net income $335 $568 $83 $986 Total average assets $59,310 $49,604 $40,649 $149,563 As of and for the Nine Months Ended September 30, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $1,804 $941 $27 $2,772 Noninterest income 656 344 120 1,120 Total revenue 2,460 1,285 147 3,892 Noninterest expense 1,898 554 53 2,505 Profit before provision for credit losses 562 731 94 1,387 Provision for credit losses 169 27 71 267 Income before income tax expense (benefit) 393 704 23 1,120 Income tax expense (benefit) 140 245 (28 ) 357 Net income $253 $459 $51 $763 Total average assets $55,825 $46,869 $39,101 $141,795 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (in millions, except share and per-share data) 2017 2016 2017 2016 Numerator (basic and diluted): Net income $348 $297 $986 $763 Less: Preferred stock dividends 7 7 14 14 Net income available to common stockholders $341 $290 $972 $749 Denominator: Weighted-average common shares outstanding - basic 500,861,076 519,458,976 505,529,991 525,477,273 Dilutive common shares: share-based awards 1,296,308 1,663,490 1,532,814 1,784,111 Weighted-average common shares outstanding - diluted 502,157,384 521,122,466 507,062,805 527,261,384 Earnings per common share: Basic $0.68 $0.56 $1.92 $1.43 Diluted 0.68 0.56 1.92 1.42 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Details of other income | The following table presents the details of other income: Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Bank-owned life insurance income $14 $14 $40 $40 Other 5 76 10 93 Other income $19 $90 $50 $133 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (in millions) 2017 2016 2017 2016 Deposit insurance $34 $32 $102 $87 Promotional expense 27 24 82 73 Settlements and operating losses 18 18 43 40 Other 56 70 182 187 Other operating expense $135 $144 $409 $387 |
BASIS OF PRESENTATION Operating
BASIS OF PRESENTATION Operating Leases (Details) $ in Millions | Dec. 31, 2016USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum lease payments | $ 809 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 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 | 155 | 146 | 469 | 432 | ||||
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 | 38 | 16 | 82 | 21 | ||||
Available-for-sale Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | 80 | 75 | 80 | 75 | $ 79 | $ 75 | $ 73 | $ 66 |
OTTI in earnings | 1 | 3 | 6 | 11 | ||||
Held-to-maturity Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cumulative credit losses recognized in earnings | $ 0 | $ 0 | $ 0 | 0 | ||||
Proprietary internal model | Available-for-sale Securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
OTTI in earnings | $ 5 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Securities Available-for-sale, Amortized Cost | $ 20,091 | $ 19,713 | |
Securities Available-for-sale, Gross Unrealized Gains | 82 | 80 | |
Securities Available-for-sale, Gross Unrealized Losses | (191) | (292) | |
Securities Available-for-sale, Fair Value | [1] | 19,982 | 19,501 |
Securities Held-to-maturity, Amortized Cost | 4,823 | 5,071 | |
Securities Held-to-maturity, Gross Unrealized Gain | 44 | 31 | |
Securities Held-to-maturity, Gross Unrealized Losses | (28) | (44) | |
Securities held-to-maturity, Fair Value | 4,839 | 5,058 | |
Money market mutual fund, Amortized Cost | 160 | 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 | 160 | 91 | |
Total other investment securities, at fair value, Amortized Cost | 165 | 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 | 165 | 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 | 772 | 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 | 772 | 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 | 19,735 | 19,231 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 76 | 78 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (183) | (264) | |
Debt Securities Available-for-sale, Fair Value | 19,628 | 19,045 | |
Securities Held-to-maturity, Amortized Cost | 3,966 | 4,126 | |
Securities Held-to-maturity, Gross Unrealized Gain | 18 | 12 | |
Securities Held-to-maturity, Gross Unrealized Losses | (28) | (44) | |
Securities held-to-maturity, Fair Value | 3,956 | 4,094 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 337 | 427 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 6 | 2 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (8) | (28) | |
Debt Securities Available-for-sale, Fair Value | 335 | 401 | |
Securities Held-to-maturity, Amortized Cost | 857 | 945 | |
Securities Held-to-maturity, Gross Unrealized Gain | 26 | 19 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Securities held-to-maturity, Fair Value | 883 | 964 | |
Total mortgage-backed securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 20,072 | 19,658 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 82 | 80 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (191) | (292) | |
Debt Securities Available-for-sale, Fair Value | 19,963 | 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 | 20,091 | 19,696 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 82 | 80 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (191) | (292) | |
Debt Securities Available-for-sale, Fair Value | 19,982 | 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 | 302 | 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 | $ 302 | $ 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 | Sep. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Number of Issues | ||
Less than 12 Months | Securities | 298 | 328 |
12 Months or Longer | Securities | 41 | 45 |
Total | Securities | 339 | 373 |
Fair Value | ||
Less than 12 Months | $ 13,113 | $ 15,403 |
12 Months or Longer | 666 | 763 |
Total | 13,779 | 16,166 |
Gross Unrealized Losses | ||
Less than 12 Months | (193) | (292) |
12 Months or Longer | (26) | (44) |
Total | $ (219) | $ (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 | 298 | 323 |
12 Months or Longer | Securities | 30 | 25 |
Total | Securities | 328 | 348 |
Fair Value | ||
Less than 12 Months | $ 13,113 | $ 15,387 |
12 Months or Longer | 545 | 461 |
Total | 13,658 | 15,848 |
Gross Unrealized Losses | ||
Less than 12 Months | (193) | (292) |
12 Months or Longer | (18) | (16) |
Total | $ (211) | $ (308) |
Other/non-agency | ||
Number of Issues | ||
Less than 12 Months | Securities | 0 | 4 |
12 Months or Longer | Securities | 11 | 20 |
Total | Securities | 11 | 24 |
Fair Value | ||
Less than 12 Months | $ 0 | $ 8 |
12 Months or Longer | 121 | 302 |
Total | 121 | 310 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | (8) | (28) |
Total | $ (8) | $ (28) |
Total mortgage-backed securities | ||
Number of Issues | ||
Less than 12 Months | Securities | 298 | 327 |
12 Months or Longer | Securities | 41 | 45 |
Total | Securities | 339 | 372 |
Fair Value | ||
Less than 12 Months | $ 13,113 | $ 15,395 |
12 Months or Longer | 666 | 763 |
Total | 13,779 | 16,158 |
Gross Unrealized Losses | ||
Less than 12 Months | (193) | (292) |
12 Months or Longer | (26) | (44) |
Total | $ (219) | $ (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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Cumulative balance at beginning of period | $ 79 | $ 73 | $ 75 | $ 66 | |
Credit impairments recognized in earnings on securities that have been previously impaired | 1 | 3 | 6 | 11 | |
Reductions due to increases in cash flow expectations on impaired securities | [1] | 0 | (1) | (1) | (2) |
Cumulative balance at end of period | $ 80 | $ 75 | $ 80 | $ 75 | |
[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 | Sep. 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 | 194 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,149 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,735 |
Amortized Cost, Debt securities available for sale, Total | 20,091 |
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 | 4,823 |
Amortized Cost, Debt securities held to maturity, Total | 4,823 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 13 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 194 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,149 |
Total amortized cost of debt securities, Maturity After 10 Years | 23,558 |
Total amortized cost of debt securities, Total | 24,914 |
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 | 194 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,166 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,609 |
Fair Value, Debt securities available for sale, Total | 19,982 |
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 | 4,839 |
Fair Value, Debt securities held to maturity, Total | 4,839 |
Total fair value of debt securities, Maturity of 1 Year or Less | 13 |
Total fair value of debt securities, Maturity of 1-5 Years | 194 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,166 |
Total fair value of debt securities, Maturity After 10 Years | 23,448 |
Total fair value of debt securities, Total | 24,821 |
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 | 169 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,149 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,416 |
Amortized Cost, Debt securities available for sale, Total | 19,735 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 3,966 |
Amortized Cost, Debt securities held to maturity, Total | 3,966 |
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 | 169 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,166 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,292 |
Fair Value, Debt securities available for sale, Total | 19,628 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 3,956 |
Fair Value, Debt securities held to maturity, Total | 3,956 |
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 | 25 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 312 |
Amortized Cost, Debt securities available for sale, Total | 337 |
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 | 857 |
Amortized Cost, Debt securities held to maturity, Total | 857 |
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 | 25 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 310 |
Fair Value, Debt securities available for sale, Total | 335 |
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 | 883 |
Fair Value, Debt securities held to maturity, Total | $ 883 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Gains on sale of debt securities | $ 2 | $ 0 | $ 9 | $ 13 |
Losses on sale of debt securities | 0 | 0 | 0 | 0 |
Debt securities gains, net | 2 | 0 | 9 | 13 |
Equity securities gains | $ 0 | $ 0 | $ 1 | $ 0 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 459 | $ 631 |
Pledged against Federal Home Loan Bank borrowed funds, Amortized Cost | 864 | 953 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 2,866 | 3,575 |
Pledged against repurchase agreements, Fair Value | 454 | 620 |
Pledged against Federal Home Loan Bank borrowed funds, Fair Value | 890 | 972 |
Pledged against derivatives to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 2,858 | $ 3,563 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | $ 500 | $ 500 | $ 583 | ||
Other loans held for sale | 724 | 724 | 42 | ||
Commercial Loan Syndication | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 640 | 640 | |||
Level 2 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 500 | 500 | 583 | ||
Other loans held for sale | 0 | 0 | 0 | ||
Level 2 | Residential loans held for sale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 349 | 349 | 504 | ||
Level 2 | Commercial real estate loans held for sale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held for sale | 151 | 151 | 79 | ||
Impaired Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
TDRs sold | $ 310 | $ 310 | |||
Pre-tax gain | 72 | 72 | |||
Impaired Loans | Home equity loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
TDRs sold | 55 | 55 | |||
Impaired Loans | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
TDRs sold | 255 | 255 | |||
Transfer To Other Loans Held For Sale | Home equity loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 29 | 29 | |||
Transfer To Other Loans Held For Sale | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 6 | 6 | |||
Transfer To Other Loans Held For Sale | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 49 | 49 | |||
Transfer To Other Loans Held For Sale | Retail | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other loans held for sale | 78 | 78 | |||
Retail | Education | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased | 63 | 126 | 795 | 843 | |
Retail | Automobile | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased | 200 | 153 | 534 | ||
Retail | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans purchased | 222 | 405 | |||
Loans sold | 0 | 163 | 206 | 444 | |
Retail | Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral for FHLB borrowed funds | 24,200 | 24,200 | 24,000 | ||
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 17,500 | 17,500 | $ 16,800 | ||
Commercial | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans sold | $ 0 | $ 14 | $ 596 | $ 132 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [1],[2] | $ 110,151 | $ 107,669 |
Loans receivable held for sale | 1,200 | 625 | |
Mortgage loans serviced for others | Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 17,700 | 17,300 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 52,381 | 51,651 | |
Commercial | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 37,706 | 37,274 | |
Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 11,426 | 10,624 | |
Commercial | Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 3,249 | 3,753 | |
Retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 57,770 | 56,018 | |
Retail | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 16,619 | 15,115 | |
Retail | Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 1,483 | 1,858 | |
Retail | Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 13,555 | 14,100 | |
Retail | Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 599 | 750 | |
Retail | Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 166 | 219 | |
Retail | Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 13,311 | 13,938 | |
Retail | Education | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [3] | 8,014 | 6,610 |
Retail | Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | 1,754 | 1,691 | |
Retail | Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | $ 2,269 | $ 1,737 | |
[1] | Excluded from the table above are loans held for sale totaling $1.2 billion and $625 million as of September 30, 2017 and December 31, 2016, respectively. | ||
[2] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.7 billion and $17.3 billion at September 30, 2017 and December 31, 2016, respectively. | ||
[3] | During first quarter 2017, student loans were renamed “education” loans. Refer to Note 1 “Basis of Presentation” for more information. |
ALLOWANCE FOR CREDIT LOSSES, 54
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $ 179 | $ 177 |
Larger balance commercial loans minimum balance (greater than) | 3 | |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 52 | 42 |
High loan to value criteria (exceeds) | 90.00% | |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 153 | 120 |
Retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 759 | $ 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 charged to income | 238 | $ 267 | ||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 1,224 | 1,224 | ||
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 | 1,219 | $ 1,246 | 1,236 | 1,216 |
Charge-offs | (120) | (145) | (381) | (384) |
Recoveries | 55 | 62 | 154 | 153 |
Net charge-offs | (65) | (83) | (227) | (231) |
Provision charged to income | 70 | 77 | 215 | 255 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,224 | 1,240 | 1,224 | 1,240 |
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 | 61 | 72 | 58 |
Provision for unfunded lending commitments | 2 | 9 | 23 | 12 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 95 | 70 | 95 | 70 |
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 | 1,319 | 1,310 | 1,319 | 1,310 |
Commercial | 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 | 614 | 676 | 663 | 596 |
Charge-offs | (12) | (33) | (60) | (53) |
Recoveries | 12 | 14 | 27 | 23 |
Net charge-offs | 0 | (19) | (33) | (30) |
Provision charged to income | 24 | (2) | 8 | 89 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 638 | 655 | 638 | 655 |
Commercial | 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 | 61 | 72 | 58 |
Provision for unfunded lending commitments | 2 | 9 | 23 | 12 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 95 | 70 | 95 | 70 |
Commercial | 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 | 733 | 725 | 733 | 725 |
Retail | 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 | 605 | 570 | 573 | 620 |
Charge-offs | (108) | (112) | (321) | (331) |
Recoveries | 43 | 48 | 127 | 130 |
Net charge-offs | (65) | (64) | (194) | (201) |
Provision charged to income | 46 | 79 | 207 | 166 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 586 | 585 | 586 | 585 |
Retail | 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 | 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 |
Retail | 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 | $ 586 | $ 585 | $ 586 | $ 585 |
ALLOWANCE FOR CREDIT LOSSES, 56
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,203 | $ 1,223 |
Formula-based evaluation | 108,948 | 106,446 |
Total | 110,151 | 107,669 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 444 | 424 |
Formula-based evaluation | 51,937 | 51,227 |
Total | 52,381 | 51,651 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 759 | 799 |
Formula-based evaluation | 57,011 | 55,219 |
Total | $ 57,770 | $ 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) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 81 | $ 106 |
Formula-based evaluation | 1,238 | 1,202 |
Allowance for credit losses | 1,319 | 1,308 |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 46 | 63 |
Formula-based evaluation | 687 | 672 |
Allowance for credit losses | 733 | 735 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 35 | 43 |
Formula-based evaluation | 551 | 530 |
Allowance for credit losses | $ 586 | $ 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) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 110,151 | $ 107,669 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 52,381 | 51,651 |
Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 49,201 | 48,739 |
Commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,955 | 1,437 |
Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 937 | 1,188 |
Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 288 | 287 |
Commercial | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,706 | 37,274 |
Commercial | Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,309 | 35,010 |
Commercial | Commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,368 | 1,015 |
Commercial | Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 770 | 1,027 |
Commercial | Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 259 | 222 |
Commercial | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,426 | 10,624 |
Commercial | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,737 | 10,146 |
Commercial | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 514 | 370 |
Commercial | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 146 | 58 |
Commercial | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 29 | 50 |
Commercial | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,249 | 3,753 |
Commercial | Leases | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,155 | 3,583 |
Commercial | Leases | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 73 | 52 |
Commercial | Leases | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 21 | 103 |
Commercial | Leases | Doubtful | ||
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) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,386 | $ 1,465 |
Total | 110,151 | 107,669 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 407 | 404 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 137 | 116 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 842 | 945 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 54,729 | 52,873 |
Past Due | 999 | 1,032 |
Total | 57,770 | 56,018 |
Retail | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 16,323 | 14,807 |
Past Due | 155 | 200 |
Total | 16,619 | 15,115 |
Retail | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,306 | 1,628 |
Past Due | 76 | 103 |
Total | 1,483 | 1,858 |
Retail | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,874 | 13,432 |
Past Due | 262 | 272 |
Total | 13,555 | 14,100 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 538 | 673 |
Past Due | 29 | 36 |
Total | 599 | 750 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 125 | 158 |
Past Due | 21 | 36 |
Total | 166 | 219 |
Retail | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,917 | 12,509 |
Past Due | 307 | 252 |
Total | 13,311 | 13,938 |
Retail | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,803 | 6,379 |
Past Due | 76 | 80 |
Total | 8,014 | 6,610 |
Retail | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,673 | 1,611 |
Past Due | 34 | 37 |
Total | 1,754 | 1,691 |
Retail | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,170 | 1,676 |
Past Due | 39 | 16 |
Total | 2,269 | 1,737 |
Retail | Financing Receivables, 1 to 29 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,042 | 2,113 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 141 | 108 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 101 | 127 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 419 | 396 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 32 | 41 |
Retail | 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 | 20 | 25 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,087 | 1,177 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 135 | 151 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 47 | 43 |
Retail | Financing Receivables, 1 to 29 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 60 | 45 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 359 | 366 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 31 | 53 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 54 | 57 |
Retail | 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 |
Retail | 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 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 197 | 172 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 24 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 8 |
Retail | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 130 | 110 |
Retail | Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6 | 7 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 20 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 5 |
Retail | 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 |
Retail | Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 54 | 38 |
Retail | Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 9 |
Retail | Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 4 |
Retail | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 510 | 556 |
Retail | Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 114 | 135 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 56 | 73 |
Retail | 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 |
Retail | 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 |
Retail | 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 | 17 | 31 |
Retail | Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 56 | 42 |
Retail | Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 41 | 43 |
Retail | Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 15 | 16 |
Retail | Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 10 | $ 4 |
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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | $ 932 | $ 1,045 | |
Loans accruing and 90 days or more past due | 30 | 26 | |
GNMA | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans sold with right to repurchase | 28 | 32 | |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans accruing and 90 days or more past due | 15 | 18 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 325 | 387 | |
Loans accruing and 90 days or more past due | 7 | 2 | |
Commercial | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 297 | 322 | |
Loans accruing and 90 days or more past due | 5 | 2 | |
Commercial | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 28 | 50 | |
Loans accruing and 90 days or more past due | 2 | 0 | |
Commercial | 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 | 607 | 658 | |
Loans accruing and 90 days or more past due | 23 | 24 | |
Retail | Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | [1] | 124 | 144 |
Loans accruing and 90 days or more past due | [1] | 15 | 18 |
Retail | Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 76 | 98 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 236 | 243 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 26 | 32 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 21 | 33 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 66 | 50 | |
Loans accruing and 90 days or more past due | 0 | 0 | |
Retail | Education | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 38 | 38 | |
Loans accruing and 90 days or more past due | 3 | 5 | |
Retail | 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 | |
Retail | Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans | 5 | 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 $15 million and $18 million as of September 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 $32 million as of September 30, 2017 and December 31, 2016, respectively. These loans are consolidated on the Company’s Consolidated Balance Sheets. |
ALLOWANCE FOR CREDIT LOSSES, 61
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Sep. 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) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans and leases as a percentage of total loans and leases | 0.85% | 0.97% |
Total nonperforming assets as a percentage of total assets | 0.64% | 0.73% |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans and leases as a percentage of total loans and leases | 0.30% | 0.36% |
Total nonperforming assets as a percentage of total assets | 0.21% | 0.26% |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans and leases as a percentage of total loans and leases | 0.55% | 0.61% |
Total nonperforming assets as a percentage of total assets | 0.43% | 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) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,386 | $ 1,465 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 407 | 404 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 137 | 116 |
Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 842 | 945 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 387 | 433 |
Commercial | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 346 | 364 |
Commercial | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 53 |
Commercial | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 16 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 48 | 38 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 39 | 36 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 1 |
Commercial | Financing Receivables, 30 to 59 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 1 |
Commercial | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 6 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 4 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2 | 2 |
Commercial | Financing Receivables 60 To 89 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 332 | 389 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 302 | 324 |
Commercial | Financing Receivables 90 Days or More Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 30 | 50 |
Commercial | Financing Receivables 90 Days or More Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 15 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 999 | 1,032 |
Retail | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 155 | 200 |
Retail | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 76 | 103 |
Retail | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 262 | 272 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 29 | 36 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 21 | 36 |
Retail | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 307 | 252 |
Retail | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 76 | 80 |
Retail | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 34 | 37 |
Retail | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 39 | 16 |
Retail | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 359 | 366 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 31 | 53 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14 | 23 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 54 | 57 |
Retail | 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 |
Retail | 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 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 197 | 172 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 24 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11 | 12 |
Retail | Financing Receivables, 30 to 59 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 8 |
Retail | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 130 | 110 |
Retail | Financing Receivables 60 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | 12 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6 | 7 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 20 |
Retail | Financing Receivables 60 To 89 Days Past Due | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 5 |
Retail | 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 |
Retail | Financing Receivables 60 To 89 Days Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 54 | 38 |
Retail | Financing Receivables 60 To 89 Days Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 13 |
Retail | Financing Receivables 60 To 89 Days Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 9 |
Retail | Financing Receivables 60 To 89 Days Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 4 |
Retail | Financing Receivables 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 510 | 556 |
Retail | Financing Receivables 90 Days or More Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 114 | 135 |
Retail | Financing Receivables 90 Days or More Past Due | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 56 | 73 |
Retail | 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 |
Retail | 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 |
Retail | 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 | 17 | 31 |
Retail | Financing Receivables 90 Days or More Past Due | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 56 | 42 |
Retail | Financing Receivables 90 Days or More Past Due | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 41 | 43 |
Retail | Financing Receivables 90 Days or More Past Due | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 15 | 16 |
Retail | Financing Receivables 90 Days or More Past Due | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 10 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | $ 563 | $ 634 |
Allowance on Impaired Loans | 81 | 106 |
Impaired Loans Without a Related Allowance | 640 | 589 |
Unpaid Contractual Balance | 1,443 | 1,443 |
Total Recorded Investment in Impaired Loans | 1,203 | 1,223 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 255 | 286 |
Allowance on Impaired Loans | 46 | 63 |
Impaired Loans Without a Related Allowance | 189 | 138 |
Unpaid Contractual Balance | 530 | 475 |
Total Recorded Investment in Impaired Loans | 444 | 424 |
Commercial | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 231 | 247 |
Allowance on Impaired Loans | 45 | 55 |
Impaired Loans Without a Related Allowance | 185 | 134 |
Unpaid Contractual Balance | 491 | 431 |
Total Recorded Investment in Impaired Loans | 416 | 381 |
Commercial | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 24 | 39 |
Allowance on Impaired Loans | 1 | 8 |
Impaired Loans Without a Related Allowance | 4 | 4 |
Unpaid Contractual Balance | 39 | 44 |
Total Recorded Investment in Impaired Loans | 28 | 43 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 308 | 348 |
Allowance on Impaired Loans | 35 | 43 |
Impaired Loans Without a Related Allowance | 451 | 451 |
Unpaid Contractual Balance | 913 | 968 |
Total Recorded Investment in Impaired Loans | 759 | 799 |
Retail | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 23 | 37 |
Allowance on Impaired Loans | 2 | 2 |
Impaired Loans Without a Related Allowance | 117 | 141 |
Unpaid Contractual Balance | 185 | 235 |
Total Recorded Investment in Impaired Loans | 140 | 178 |
Retail | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 42 | 51 |
Allowance on Impaired Loans | 4 | 3 |
Impaired Loans Without a Related Allowance | 83 | 94 |
Unpaid Contractual Balance | 167 | 191 |
Total Recorded Investment in Impaired Loans | 125 | 145 |
Retail | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 16 | 23 |
Allowance on Impaired Loans | 1 | 1 |
Impaired Loans Without a Related Allowance | 181 | 173 |
Unpaid Contractual Balance | 242 | 240 |
Total Recorded Investment in Impaired Loans | 197 | 196 |
Retail | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 31 | 41 |
Allowance on Impaired Loans | 2 | 4 |
Impaired Loans Without a Related Allowance | 19 | 19 |
Unpaid Contractual Balance | 60 | 70 |
Total Recorded Investment in Impaired Loans | 50 | 60 |
Retail | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 3 | 2 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 6 | 7 |
Unpaid Contractual Balance | 13 | 13 |
Total Recorded Investment in Impaired Loans | 9 | 9 |
Retail | 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 | 19 | 15 |
Unpaid Contractual Balance | 30 | 25 |
Total Recorded Investment in Impaired Loans | 23 | 19 |
Retail | Education | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 159 | 154 |
Allowance on Impaired Loans | 18 | 25 |
Impaired Loans Without a Related Allowance | 20 | 1 |
Unpaid Contractual Balance | 179 | 155 |
Total Recorded Investment in Impaired Loans | 179 | 155 |
Retail | 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 | 1 | 0 |
Unpaid Contractual Balance | 26 | 26 |
Total Recorded Investment in Impaired Loans | 26 | 26 |
Retail | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 5 | 10 |
Allowance on Impaired Loans | 1 | 2 |
Impaired Loans Without a Related Allowance | 5 | 1 |
Unpaid Contractual Balance | 11 | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | $ 7 | $ 9 | $ 25 | $ 27 |
Average Recorded Investment | 1,172 | 1,180 | 1,160 | 1,106 |
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 3 | 4 |
Average Recorded Investment | 424 | 380 | 441 | 330 |
Commercial | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 1 | 3 | 4 |
Average Recorded Investment | 391 | 340 | 402 | 277 |
Commercial | Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 33 | 40 | 39 | 53 |
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 6 | 8 | 22 | 23 |
Average Recorded Investment | 748 | 800 | 719 | 776 |
Retail | Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 1 | 3 | 3 |
Average Recorded Investment | 137 | 169 | 128 | 161 |
Retail | Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 1 | 2 | 4 | 5 |
Average Recorded Investment | 125 | 153 | 124 | 151 |
Retail | Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 2 | 2 | 5 | 5 |
Average Recorded Investment | 192 | 192 | 178 | 182 |
Retail | Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 1 | 2 | 3 |
Average Recorded Investment | 51 | 64 | 51 | 64 |
Retail | 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 | 9 | 9 | 9 |
Retail | Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 0 | 0 |
Average Recorded Investment | 21 | 17 | 18 | 14 |
Retail | Education | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 3 | 1 | 7 | 5 |
Average Recorded Investment | 178 | 159 | 178 | 157 |
Retail | Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 0 | 1 | 1 |
Average Recorded Investment | 25 | 25 | 23 | 25 |
Retail | Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Interest Income Recognized | 0 | 1 | 0 | 1 |
Average Recorded Investment | $ 10 | $ 12 | $ 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 | 9 Months Ended | |||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | $ 0 | $ 6 | $ 3 | $ 7 | |
Charge-offs Resulting from Modification | $ 2 | $ 1 | $ 4 | $ 2 | |
Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 744 | 668 | 2,133 | 1,884 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 11 | $ 27 | $ 26 |
Post-Modification Outstanding Recorded Investment | [1] | $ 9 | $ 12 | $ 28 | $ 27 |
Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 127 | 106 | 316 | 252 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 20 | $ 13 | $ 57 | $ 32 |
Post-Modification Outstanding Recorded Investment | [2] | $ 20 | $ 13 | $ 57 | $ 32 |
Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 685 | 603 | 1,941 | 1,939 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 51 | $ 30 | $ 134 | $ 123 |
Post-Modification Outstanding Recorded Investment | [3] | 51 | 29 | 131 | 120 |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 4 | 1 | 3 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 3 | 3 | 7 | 11 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Commercial | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 18 | 8 | 36 | 62 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 8 | $ 1 | $ 22 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 7 | $ 1 | $ 21 | $ 9 |
Commercial | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 8 | 4 | 13 | 13 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 28 | $ 6 | $ 64 | $ 47 |
Post-Modification Outstanding Recorded Investment | [3] | 30 | 5 | 65 | 46 |
Commercial | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 4 | 1 | 3 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial | Commercial | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 3 | 3 | 7 | 11 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 0 | $ 2 | $ 1 |
Commercial | Commercial | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 17 | 8 | 35 | 62 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 8 | $ 1 | $ 22 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 7 | $ 1 | $ 21 | $ 9 |
Commercial | Commercial | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 7 | 4 | 12 | 13 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 28 | $ 6 | $ 64 | $ 47 |
Post-Modification Outstanding Recorded Investment | [3] | 30 | 5 | 65 | 46 |
Commercial | 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 | |
Commercial | Commercial real estate | Interest Rate Reduction | |||||
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 |
Commercial | Commercial real estate | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 1 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial real estate | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 1 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | 0 | 0 | 0 | 0 |
Commercial | 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 | |
Commercial | Leases | Interest Rate Reduction | |||||
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 |
Commercial | Leases | Maturity Extension | |||||
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 |
Commercial | Leases | Other | |||||
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 |
Retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 2 | 2 | 4 | |
Charge-offs Resulting from Modification | $ 2 | $ 1 | $ 4 | $ 2 | |
Retail | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 741 | 665 | 2,126 | 1,873 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 8 | $ 11 | $ 25 | $ 25 |
Post-Modification Outstanding Recorded Investment | [1] | $ 8 | $ 12 | $ 26 | $ 26 |
Retail | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 109 | 98 | 280 | 190 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 12 | $ 12 | $ 35 | $ 23 |
Post-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 12 | $ 36 | $ 23 |
Retail | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 677 | 599 | 1,928 | 1,926 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 23 | $ 24 | $ 70 | $ 76 |
Post-Modification Outstanding Recorded Investment | [3] | 21 | 24 | 66 | 74 |
Retail | Residential mortgages | |||||
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 | |
Retail | Residential mortgages | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 13 | 28 | 56 | 53 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 3 | $ 6 | $ 7 |
Post-Modification Outstanding Recorded Investment | [1] | $ 2 | $ 3 | $ 7 | $ 7 |
Retail | Residential mortgages | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 15 | 33 | 50 | 49 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 6 | $ 9 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 2 | $ 5 | $ 10 | $ 8 |
Retail | Residential mortgages | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 38 | 55 | 122 | 186 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 3 | $ 5 | $ 13 | $ 20 |
Post-Modification Outstanding Recorded Investment | [3] | 3 | 5 | 13 | 20 |
Retail | Home equity loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | (1) | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Retail | Home equity loans | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 25 | 36 | 68 | 65 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 2 | $ 2 | $ 4 | $ 4 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 2 | $ 4 | $ 4 |
Retail | Home equity loans | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 2 | 1 | 39 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 4 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 1 | $ 0 | $ 5 |
Retail | Home equity loans | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 49 | 52 | 192 | 233 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 3 | $ 3 | $ 11 | $ 14 |
Post-Modification Outstanding Recorded Investment | [3] | 3 | 3 | 11 | 14 |
Retail | 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 | $ 1 | $ 1 | $ 1 | $ 1 | |
Retail | Home equity lines of credit | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 11 | 20 | 41 | 33 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 2 | $ 2 | $ 3 |
Retail | Home equity lines of credit | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 86 | 56 | 204 | 83 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 11 | $ 6 | $ 26 | $ 9 |
Post-Modification Outstanding Recorded Investment | [2] | $ 11 | $ 6 | $ 26 | $ 9 |
Retail | Home equity lines of credit | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 110 | 94 | 295 | 218 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 6 | $ 8 | $ 20 | $ 16 |
Post-Modification Outstanding Recorded Investment | [3] | 7 | 7 | 20 | 15 |
Retail | 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 | |
Retail | Home equity loans serviced by others | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 3 | 7 | 14 | 13 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 1 | $ 1 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 1 | $ 1 | $ 1 |
Retail | Home equity loans serviced by others | Maturity Extension | |||||
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 |
Retail | Home equity loans serviced by others | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 11 | 17 | 41 | 51 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [3] | 0 | 1 | 1 | 2 |
Retail | 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 | |
Retail | Home equity lines of credit serviced by others | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 2 | 3 | 4 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Home equity lines of credit serviced by others | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 0 | 1 | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 1 |
Retail | Home equity lines of credit serviced by others | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 8 | 6 | 21 | 19 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 0 | $ 2 | $ 1 |
Post-Modification Outstanding Recorded Investment | [3] | 0 | 1 | 1 | 1 |
Retail | Automobile | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | $ 1 | $ 0 | $ 3 | $ 1 | |
Retail | Automobile | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 28 | 26 | 93 | 77 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 1 | $ 2 | $ 2 |
Retail | Automobile | Maturity Extension | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [2] | 8 | 6 | 23 | 14 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Automobile | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 392 | 264 | 1,017 | 803 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 7 | $ 5 | $ 18 | $ 15 |
Post-Modification Outstanding Recorded Investment | [3] | 6 | 5 | 16 | 14 |
Retail | Education | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 1 | 1 | 3 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Retail | Education | Interest Rate Reduction | |||||
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 |
Retail | Education | Maturity Extension | |||||
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 |
Retail | Education | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 67 | 108 | 235 | 405 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 2 | $ 4 | $ 8 |
Post-Modification Outstanding Recorded Investment | [3] | 2 | 2 | 4 | 8 |
Retail | Credit cards | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 1 | 1 | 3 | 2 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Retail | Credit cards | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 661 | 544 | 1,850 | 1,625 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 3 | $ 3 | $ 10 | $ 9 |
Post-Modification Outstanding Recorded Investment | [1] | $ 3 | $ 3 | $ 10 | $ 9 |
Retail | Credit cards | Maturity Extension | |||||
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 |
Retail | Credit cards | Other | |||||
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 |
Retail | Other retail | |||||
Financing Receivable, Modifications [Line Items] | |||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | 0 | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | $ 0 | |
Retail | Other retail | Interest Rate Reduction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [1] | 0 | 2 | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Other retail | Maturity Extension | |||||
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 |
Retail | Other retail | Other | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | [3] | 2 | 3 | 5 | 11 |
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 | 9 Months Ended | ||
Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 279 | 311 | 832 | 788 |
Balance Defaulted | $ | $ 14 | $ 13 | $ 40 | $ 39 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 5 | 8 | 17 |
Balance Defaulted | $ | $ 4 | $ 1 | $ 9 | $ 4 |
Commercial | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 5 | 7 | 16 |
Balance Defaulted | $ | $ 4 | $ 1 | $ 5 | $ 4 |
Commercial | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 1 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 4 | $ 0 |
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 277 | 306 | 824 | 771 |
Balance Defaulted | $ | $ 10 | $ 12 | $ 31 | $ 35 |
Retail | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 35 | 57 | 121 | 146 |
Balance Defaulted | $ | $ 5 | $ 7 | $ 15 | $ 19 |
Retail | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 12 | 14 | 35 | 39 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 1 | $ 3 |
Retail | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 55 | 48 | 152 | 93 |
Balance Defaulted | $ | $ 4 | $ 4 | $ 11 | $ 8 |
Retail | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 6 | 7 | 16 | 28 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Retail | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 4 | 3 | 8 | 14 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Retail | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 42 | 43 | 103 | 80 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 1 | $ 1 |
Retail | Education | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 5 | 15 | 41 | 46 |
Balance Defaulted | $ | $ 1 | $ 0 | $ 1 | $ 1 |
Retail | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 116 | 117 | 344 | 323 |
Balance Defaulted | $ | $ 0 | $ 1 | $ 2 | $ 2 |
Retail | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 2 | 4 | 2 |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 110,151 | $ 107,669 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,015 | 1,592 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 436 | 566 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 260 | 550 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 319 | 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 | 1,739 | 1,583 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,738 | 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 | 165 | 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 | 165 | 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 | 2 | 3 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2 | 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 | 2,921 | 3,290 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,176 | 2,151 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 260 | 550 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 319 | 476 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 165 | 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 ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 | Sep. 30, 2017 | Dec. 31, 2016 |
LIHTC Investments | ||
Variable Interest Entity | ||
LIHTC investment included in other assets | $ 898 | $ 793 |
LIHTC unfunded commitments included in other liabilities | 494 | 428 |
Renewable Energy | ||
Variable Interest Entity | ||
Renewable energy investments included in other assets | $ 264 | $ 220 |
VARIABLE INTEREST ENTITIES - 71
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity | ||||
Tax credits included in income tax expense | $ 20 | $ 17 | $ 63 | $ 46 |
Amortization expense included in income tax expense | 22 | 14 | 67 | 45 |
Other tax benefits included in income tax expense | $ 7 | $ 2 | $ 22 | $ 15 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | $ 2,372 | $ 1,775 | ||
Repurchased mortgage loans | $ 1 | $ 2 | 2 | 6 |
Mortgage servicing fees | 13 | 12 | 40 | 38 |
Mortgage servicing rights valuation charge-off (recovery) | (1) | 6 | ||
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of residential mortgages | 828 | 753 | 2,400 | 1,800 |
Gain on sale of residential mortgages | 25 | 26 | 54 | 56 |
Residential mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage servicing rights valuation charge-off (recovery) | $ 0 | $ 2 | $ (1) | $ 6 |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Valuation allowance for servicing assets: | ||||
Valuation charge-offs (recoveries) | $ (1) | $ 6 | ||
Residential mortgages | ||||
MSRs: | ||||
Balance as of beginning of period | $ 170 | $ 166 | 167 | 173 |
Amount capitalized | 9 | 10 | 28 | 20 |
Amortization | (8) | (9) | (24) | (26) |
Carrying amount before valuation allowance | 171 | 167 | 171 | 167 |
Valuation allowance for servicing assets: | ||||
Balance at beginning of period | 4 | 13 | 5 | 9 |
Valuation charge-offs (recoveries) | 0 | 2 | (1) | 6 |
Balance at end of period | 4 | 15 | 4 | 15 |
Net carrying value of MSRs | $ 167 | $ 152 | $ 167 | $ 152 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - Residential mortgages - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 183 | $ 182 |
Weighted average life (in years) | 5 years 8 months 12 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 | 9.20% | 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) | 7 years | 7 years 3 months 18 days |
Weighted average constant prepayment rate | 21.20% | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Weighted average life (in years) | 6 years 6 months | 5 years 8 months 12 days | 6 years 7 months 6 days | 5 years 10 months 24 days |
Weighted average constant prepayment rate | 10.80% | 12.30% | 10.20% | 11.70% |
Weighted average discount rate | 9.90% | 9.80% | 9.90% | 9.80% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest rate swaps | $ 664 | [1],[2] | $ 759 |
Short-term borrowed funds | 1,958 | 4,359 | |
Federal Home Loan Bank Advances and Letters of Credit | Secured Debt | |||
Debt Instrument [Line Items] | |||
Short-term borrowed funds | 10,400 | 13,400 | |
Federal Home Loan advances | |||
Debt Instrument [Line Items] | |||
Available borrowing capacity | 6,100 | 2,800 | |
Federal Reserve Bank advances | |||
Debt Instrument [Line Items] | |||
Available borrowing capacity | 39,100 | ||
Parent Company | |||
Debt Instrument [Line Items] | |||
Principal balance | 2,300 | 2,300 | |
Unamortized deferred issuance costs and discount | (6) | (7) | |
Bank Subsidiaries | |||
Debt Instrument [Line Items] | |||
Principal balance | 11,100 | 10,500 | |
Unamortized deferred issuance costs and discount | (17) | (12) | |
Interest rate swaps | $ (36) | $ (40) | |
[1] | Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. | ||
[2] | Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 1,958 | $ 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 | 453 | 615 |
Other short-term borrowed funds | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 1,505 | $ 3,211 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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% | 0.03% | 0.00% | 0.03% | 0.26% |
Maximum amount outstanding at month-end during the period | [2] | $ 724 | $ 1,032 | $ 1,174 | $ 1,274 | $ 1,522 |
Average amount outstanding during the period | [2] | $ 733 | $ 910 | $ 807 | $ 922 | $ 947 |
Weighted-average interest rate during the period | [1] | 0.47% | 0.10% | 0.34% | 0.09% | 0.09% |
Other short-term borrowed funds | ||||||
Short-term Debt [Line Items] | ||||||
Weighted-average interest rate at period end | [1] | 1.47% | 0.63% | 1.47% | 0.63% | 0.94% |
Maximum amount outstanding at month-end during the period | $ 1,755 | $ 2,515 | $ 3,508 | $ 4,764 | $ 5,461 | |
Average amount outstanding during the period | $ 1,624 | $ 2,564 | $ 2,283 | $ 3,133 | $ 3,207 | |
Weighted-average interest rate during the period | [1] | 1.48% | 0.63% | 1.22% | 0.62% | 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 13,400 | $ 12,790 | |
Banking Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | 11,081 | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.300% senior unsecured notes, due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 746 | 745 |
Interest rate | 2.30% | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.450% senior unsecured notes, due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 747 | 747 |
Interest rate | 2.45% | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.500% senior unsecured notes, due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 743 | 741 |
Interest rate | 2.50% | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.250% senior unsecured notes, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 697 | 0 |
Interest rate | 2.25% | ||
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 299 | 0 |
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | 249 | 0 |
Banking Subsidiaries | Senior Unsecured Notes | 2.200% senior unsecured notes, due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 498 | 0 |
Interest rate | 2.20% | ||
Banking Subsidiaries | Senior Unsecured Notes | 2.550% senior unsecured notes, due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 973 | 965 |
Interest rate | 2.55% | ||
Banking Subsidiaries | Senior Unsecured Notes | Floating-rate senior unsecured notes, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 249 | 0 |
Banking Subsidiaries | Senior Unsecured Notes | 2.650% senior unsecured notes, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | [1] | $ 496 | 0 |
Interest rate | 2.65% | ||
Banking Subsidiaries | Federal Home Loan advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 5,361 | 7,264 | |
Banking Subsidiaries | Other | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | 23 | 10 | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | 2,319 | ||
Parent Company | Subordinated Debt | 4.150% fixed-rate subordinated debt, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 348 | 347 | |
Interest rate | 4.15% | ||
Parent Company | Subordinated Debt | 5.158% fixed-to-floating rate subordinated debt, due 2023, converting to floating at 3-month LIBOR 3.56% and callable beginning June 2018 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 333 | 333 | |
Interest rate | 5.158% | ||
Parent Company | Subordinated Debt | 3.750% fixed-rate subordinated debt, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 250 | 250 | |
Interest rate | 3.75% | ||
Parent Company | Subordinated Debt | 4.023% fixed-rate subordinated debt, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 42 | 42 | |
Interest rate | 4.023% | ||
Parent Company | Subordinated Debt | 4.350% fixed-rate subordinated debt, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 249 | 249 | |
Interest rate | 4.35% | ||
Parent Company | Subordinated Debt | 4.300% fixed-rate subordinated debt, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 749 | 749 | |
Interest rate | 4.30% | ||
Parent Company | Subordinated Debt | LIBOR | 5.158% fixed-to-floating rate subordinated debt, due 2023, converting to floating at 3-month LIBOR 3.56% and callable beginning June 2018 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.56% | ||
Parent Company | Senior Unsecured Notes | 2.375% fixed-rate senior unsecured debt, due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowed funds | $ 348 | $ 348 | |
Interest rate | 2.375% | ||
[1] | Issued under CBNA’s Global Bank Note Program. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,018 | $ 4,097 | |
2,019 | 3,491 | |
2,020 | 1,760 | |
2,021 | 1,324 | |
2,022 | 1,098 | |
2023 and thereafter | 1,630 | |
Total | 13,400 | $ 12,790 |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2,018 | 4,097 | |
2,019 | 3,491 | |
2,020 | 1,760 | |
2,021 | 976 | |
2,022 | 750 | |
2023 and thereafter | 7 | |
Total | 11,081 | |
Parent Company | ||
Debt Instrument [Line Items] | ||
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 348 | |
2,022 | 348 | |
2023 and thereafter | 1,623 | |
Total | $ 2,319 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | 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 | $ 225 | $ 250 | $ 485 | $ 250 | |
Treasury stock purchased (in shares) | 13,588,304 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 165 | $ 130 | $ 423 | $ 357 | |
Effective income tax rate | 32.20% | 30.50% | 30.00% | 31.90% | |
U.S. Federal income tax expense and tax rate | 35.00% | 35.00% | |||
Deferred taxes, net | $ 744 | $ 744 | $ 714 | ||
Unrecognized tax benefits | $ 7 | $ 7 | $ 42 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Derivative [Line Items] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 7 |
Derivative liabilities | |
Derivative [Line Items] | |
Increase (decrease) in derivative liabilities | (417) |
Derivative assets | |
Derivative [Line Items] | |
Increase (decrease) in derivative assets | $ (31) |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Derivative Assets | ||||
Derivative assets | $ 664 | [1],[2] | $ 759 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [3] | (65) | [1] | (106) |
Less: Cash collateral applied | [3] | (3) | [1] | (26) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 596 | [1] | 627 | |
Derivative Liabilities | ||||
Derivative Liabilities | 485 | [1],[2] | 778 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [3] | (65) | [1] | (106) |
Less: Cash collateral applied | [3] | (178) | [1] | (13) |
Total net derivative fair values presented in the Consolidated Balance Sheets | 242 | [1] | 659 | |
Derivatives not designated as hedging instruments: | ||||
Derivative Assets | ||||
Derivative assets | 658 | [1] | 707 | |
Derivative Liabilities | ||||
Derivative Liabilities | 485 | [1] | 585 | |
Interest rate contracts | ||||
Derivative Assets | ||||
Derivative assets | 508 | [2] | 609 | |
Derivative Liabilities | ||||
Derivative Liabilities | 338 | [2] | 645 | |
Interest rate contracts | Derivatives designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 17,300 | 13,350 | |
Derivative Assets | ||||
Derivative assets | 6 | [1] | 52 | |
Derivative Liabilities | ||||
Derivative Liabilities | 0 | [1] | 193 | |
Interest rate contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 69,436 | 54,656 | |
Derivative Assets | ||||
Derivative assets | 502 | [1] | 557 | |
Derivative Liabilities | ||||
Derivative Liabilities | 338 | [1] | 452 | |
Foreign exchange contracts | ||||
Derivative Assets | ||||
Derivative assets | 146 | [2] | 134 | |
Derivative Liabilities | ||||
Derivative Liabilities | 142 | [2] | 126 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | [4] | 10,147 | 8,039 | |
Derivative Assets | ||||
Derivative assets | 146 | [1] | 134 | |
Derivative Liabilities | ||||
Derivative Liabilities | 142 | [1] | 126 | |
Other contracts | ||||
Derivative Assets | ||||
Derivative assets | 10 | [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] | 1,256 | 1,498 | |
Derivative Assets | ||||
Derivative assets | 10 | [1] | 16 | |
Derivative Liabilities | ||||
Derivative Liabilities | $ 5 | [1] | $ 7 | |
[1] | Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. | |||
[2] | Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. | |||
[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. For interest rate contracts, the notional amount is 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | $ 15 | $ 16 | $ 47 | $ 33 |
Hedge of interest rate risk | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative | (5) | (27) | 5 | 57 |
Hedged Item | 4 | 25 | (5) | (58) |
Hedge Ineffectiveness | $ (1) | $ (2) | $ 0 | $ (1) |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest expense | $ (202) | $ (134) | $ (536) | $ (372) | |
Amount Reclassified from AOCI | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Effective portion of (loss) gain recognized in OCI | [1] | (2) | (1) | 35 | 74 |
Amount Reclassified from AOCI | Net Unrealized (Losses) Gains on Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts reclassified from OCI to interest income | [2] | 3 | 23 | 23 | 66 |
Amounts reclassified from OCI to interest expense | [2] | 1 | (8) | (2) | (24) |
Amounts reclassified from OCI to other income | [3] | $ 0 | $ (5) | $ 0 | $ (5) |
[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. | ||||
[3] | This includes gains and losses attributable to previously hedged cash flows where the likelihood of occurrence of those cash flows is no longer probable. |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | $ 15 | $ 16 | $ 47 | $ 33 | |
Customer derivative contracts | Foreign Exchange and Interest Rate Products | Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | 12 | (32) | 92 | 63 |
Customer derivative contracts | Foreign Exchange and Interest Rate Products | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | 61 | 17 | 157 | 45 |
Customer derivative contracts | Mortgage Banking Fees | Residential loan commitments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | 0 | 1 | 3 | 8 |
Economic hedges | Foreign Exchange and Interest Rate Products | Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (2) | 45 | (58) | (31) |
Economic hedges | Foreign Exchange and Interest Rate Products | Foreign exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [1] | (55) | (19) | (140) | (46) |
Economic hedges | Mortgage Banking Fees | Forward sale contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amounts Recognized in Noninterest Income | [2] | $ (1) | $ 4 | $ (7) | $ (6) |
[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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($)counterparty | Dec. 31, 2016USD ($) | Dec. 31, 2003 | |
Letters of Credit [Abstract] | |||
Letters of credit outstanding, amount | $ 3 | $ 3 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements | $ 20 | 19 | |
Risk participation agreements number of counterparties | counterparty | 96 | ||
Risk participation agreements, Maximum term | 9 years | ||
Commercial real estate loans held for sale | Purchase commitment | |||
Other Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 241 | 127 | |
Unsettled commercial loan trade sales | $ 299 | 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 | $ 3 | $ 3 | |
Remaining obligation due | 41 | ||
Education | |||
Other Commitments [Abstract] | |||
Aggregate purchase principal balance | $ 375 | ||
Extension period | 1 year | ||
Termination fee | $ 1 | ||
Education | Minimum | |||
Other Commitments [Abstract] | |||
Aggregate purchase principal balance | 750 | ||
Education | Maximum | |||
Other Commitments [Abstract] | |||
Aggregate purchase principal balance | $ 1,500 | ||
Financial standby letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit outstanding | 10 years | ||
Commercial letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit outstanding | 1 year |
COMMITMENTS AND CONTINGENCIES90
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other Commitments [Line Items] | ||
Commitment amount | $ 64,192 | $ 62,918 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 61,934 | 60,872 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 2,080 | 1,892 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 42 | 40 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 68 | 43 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 41 | 44 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 20 | 19 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 7 | $ 8 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other income | $ 19,000,000 | $ 90,000,000 | $ 50,000,000 | $ 133,000,000 | |
Commercial real estate loans held for sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans in this portfolio that were 90 days or more past due or nonaccruing | 0 | 0 | $ 0 | ||
Other income | 1,000,000 | 1,000,000 | 4,000,000 | 3,000,000 | |
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 | $ (1,000,000) | $ 1,000,000 | $ 9,000,000 | $ 13,000,000 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 500 | $ 583 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 500 | 583 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 349 | 504 |
Aggregate Unpaid Principal | 349 | 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 | 151 | 79 |
Aggregate Unpaid Principal | 151 | 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 | Sep. 30, 2017 | Dec. 31, 2016 | ||
Assets | ||||
Securities available for sale | [1] | $ 19,982 | $ 19,501 | |
Loans held for sale, at fair value | 500 | 583 | ||
Derivative assets | 664 | [2],[3] | 759 | |
Money market mutual fund | 160 | 91 | ||
Other investments | 5 | 5 | ||
Total other investment securities, at fair value | 165 | 96 | ||
Total assets | 21,311 | 20,939 | ||
Liabilities | ||||
Total derivative liabilities | 485 | [2],[3] | 778 | |
Total liabilities | 485 | 778 | ||
Interest rate contracts | ||||
Assets | ||||
Derivative assets | 508 | [3] | 609 | |
Liabilities | ||||
Total derivative liabilities | 338 | [3] | 645 | |
Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 146 | [3] | 134 | |
Liabilities | ||||
Total derivative liabilities | 142 | [3] | 126 | |
Other contracts | ||||
Assets | ||||
Derivative assets | 10 | [3] | 16 | |
Liabilities | ||||
Total derivative liabilities | 5 | [3] | 7 | |
Mortgage-backed securities | ||||
Assets | ||||
Securities available for sale | 19,963 | 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 | 349 | 504 | ||
Commercial loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 151 | 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 | 160 | 91 | ||
Other investments | 0 | 0 | ||
Total other investment securities, at fair value | 160 | 91 | ||
Total assets | 172 | 121 | ||
Liabilities | ||||
Total derivative liabilities | 0 | [3] | 0 | |
Total liabilities | 0 | 0 | ||
Level 1 | Interest rate contracts | ||||
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 | 19,970 | 19,471 | ||
Loans held for sale, at fair value | 500 | 583 | ||
Derivative assets | 664 | [3] | 759 | |
Money market mutual fund | 0 | 0 | ||
Other investments | 5 | 5 | ||
Total other investment securities, at fair value | 5 | 5 | ||
Total assets | 21,139 | 20,818 | ||
Liabilities | ||||
Total derivative liabilities | 485 | [3] | 778 | |
Total liabilities | 485 | 778 | ||
Level 2 | Interest rate contracts | ||||
Assets | ||||
Derivative assets | 508 | [3] | 609 | |
Liabilities | ||||
Total derivative liabilities | 338 | [3] | 645 | |
Level 2 | Foreign exchange contracts | ||||
Assets | ||||
Derivative assets | 146 | [3] | 134 | |
Liabilities | ||||
Total derivative liabilities | 142 | [3] | 126 | |
Level 2 | Other contracts | ||||
Assets | ||||
Derivative assets | 10 | [3] | 16 | |
Liabilities | ||||
Total derivative liabilities | 5 | [3] | 7 | |
Level 2 | Mortgage-backed securities | ||||
Assets | ||||
Securities available for sale | 19,963 | 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 | 349 | 504 | ||
Level 2 | Commercial loans held for sale | ||||
Assets | ||||
Loans held for sale, at fair value | 151 | 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 contracts | ||||
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 changes in the treatment of variation margin on certain centrally cleared derivatives. | |||
[3] | Amounts reflect changes in the treatment of variation margin on certain centrally cleared derivatives. |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 | $ (4) | $ (18) | $ (31) | $ (29) |
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 | 0 | (2) | 1 | (6) |
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) | 0 | (3) | (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 | $ 0 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 300 | $ 355 |
MSRs | 183 | 182 |
Foreclosed assets | 32 | 44 |
Leased assets | 131 | 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 | 300 | 355 |
MSRs | 0 | 0 |
Foreclosed assets | 32 | 44 |
Leased assets | 131 | 158 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 183 | 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | $ 4,823 | $ 5,071 | |
Securities held-to-maturity, fair value | 4,839 | 5,058 | |
Other investment securities, at cost, carrying value | 772 | 942 | |
Other investment securities, at cost, fair value | 772 | 942 | |
Other loans held for sale, carrying value | 724 | 42 | |
Other loans held for sale, fair value | 724 | 42 | |
Loans and leases, carrying value | [1],[2] | 110,151 | 107,669 |
Loans and leases, fair value | 110,710 | 107,537 | |
Deposits, carrying value | 113,235 | 109,804 | |
Deposits, fair value | 113,205 | 109,796 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 453 | 1,148 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 453 | 1,148 | |
Other short-term borrowed funds, carrying value | 1,505 | 3,211 | |
Other short-term borrowed funds, fair value | 1,505 | 3,211 | |
Long-term borrowed funds, carrying value | 13,400 | 12,790 | |
Long-term borrowed funds, fair value | 13,543 | 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 | 4,823 | 5,071 | |
Securities held-to-maturity, fair value | 4,839 | 5,058 | |
Other investment securities, at cost, carrying value | 772 | 942 | |
Other investment securities, at cost, fair value | 772 | 942 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 300 | 355 | |
Loans and leases, fair value | 300 | 355 | |
Deposits, carrying value | 113,235 | 109,804 | |
Deposits, fair value | 113,205 | 109,796 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 453 | 1,148 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 453 | 1,148 | |
Other short-term borrowed funds, carrying value | 1,505 | 3,211 | |
Other short-term borrowed funds, fair value | 1,505 | 3,211 | |
Long-term borrowed funds, carrying value | 13,400 | 12,790 | |
Long-term borrowed funds, fair value | 13,543 | 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 | 724 | 42 | |
Other loans held for sale, fair value | 724 | 42 | |
Loans and leases, carrying value | 109,851 | 107,314 | |
Loans and leases, fair value | 110,410 | 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 | |
[1] | Excluded from the table above are loans held for sale totaling $1.2 billion and $625 million as of September 30, 2017 and December 31, 2016, respectively. | ||
[2] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.7 billion and $17.3 billion at September 30, 2017 and December 31, 2016, respectively. |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)subsidiary$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2018$ / shares | Dec. 31, 2017$ / shares | Sep. 30, 2017USD ($)subsidiary$ / shares | Sep. 30, 2016USD ($)$ / shares | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Dividends declared and paid (in Dollars per Share) | $ / shares | $ 0.18 | $ 0.12 | $ 0.46 | $ 0.34 | ||
Common share dividends | $ 90 | $ 62 | $ 233 | $ 179 | ||
Preferred share dividends | 7 | 7 | 14 | 14 | ||
Treasury stock purchased | $ 225 | $ 250 | $ 485 | $ 250 | ||
CBNA subsidiaries | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Number of financial subsidiaries | subsidiary | 2 | 2 | ||||
Scenario, Forecast | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Dividends declared and paid (in Dollars per Share) | $ / shares | $ 0.22 | $ 0.18 | ||||
Banking Subsidiaries | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Number of financial subsidiaries | subsidiary | 2 | 2 |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | |||
Actual | [1] | $ 14,093 | $ 13,822 |
Minimum Capital Adequacy | [1] | 7,314 | 6,348 |
Classification as Well-capitalized | [1],[2] | $ 8,268 | $ 8,051 |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | |||
Actual | [1] | 11.10% | 11.20% |
Common Equity Tier1 Required For Capital Adequacy To Risk Weighted Assets | [1],[3] | 5.75% | 5.125% |
Common Equity Tier 1 Required To Be Well Capitalized To Risk Weighted Assets | [1],[2] | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | |||
Actual | [4] | $ 14,340 | $ 14,069 |
Minimum Capital Adequacy | [4] | 9,222 | 8,206 |
Classification as Well-capitalized | [2],[4] | $ 10,176 | $ 9,909 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [4] | 11.30% | 11.40% |
Minimum Capital Adequacy | [3],[4] | 7.25% | 6.625% |
Classification as Well-capitalized | [2],[4] | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets (Amount) | |||
Actual | [5] | $ 17,560 | $ 17,347 |
Minimum Capital Adequacy | [5] | 11,766 | 10,683 |
Classification as Well-capitalized | [2],[5] | $ 12,720 | $ 12,386 |
Total Capital to Risk-Weighted Assets (Ratio) | |||
Actual | [5] | 13.80% | 14.00% |
Minimum Capital Adequacy | [3],[5] | 9.25% | 8.625% |
Classification as Well-capitalized | [2],[5] | 10.00% | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | |||
Actual | [6] | $ 14,340 | $ 14,069 |
Minimum Capital Adequacy | [6] | 5,780 | 5,667 |
Classification as Well-capitalized | [2],[6] | $ 7,225 | $ 7,084 |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | |||
Actual | [6] | 9.90% | 9.90% |
Minimum Capital Adequacy | [3],[6] | 4.00% | 4.00% |
Classification as Well-capitalized | [2],[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] | Presented for informational purposes. Prompt corrective action provisions apply only to the Company’s insured depository institutions - CBNA and CBPA. | ||
[3] | “Minimum Capital ratio” includes capital conservation buffer of 1.250% for 2017 and 0.625% for 2016; N/A to Tier 1 leverage. | ||
[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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 | $ 0 | $ 3 | (2) | (18) |
Ending balance | 20,109 | 20,181 | 20,109 | 20,181 |
Total AOCI | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (593) | (159) | (668) | (387) |
Other comprehensive income before reclassifications | 12 | (29) | 96 | 235 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 3 | (2) | (18) |
Amounts reclassified from other comprehensive (loss) income | 0 | (2) | (7) | (17) |
Net other comprehensive income | 12 | (28) | 87 | 200 |
Ending balance | (581) | (187) | (581) | (187) |
Net Unrealized (Losses) Gains on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (76) | 39 | (88) | 10 |
Other comprehensive income before reclassifications | (1) | (1) | 22 | 45 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 | 0 |
Amounts reclassified from other comprehensive (loss) income | (2) | (6) | (13) | (23) |
Net other comprehensive income | (3) | (7) | 9 | 22 |
Ending balance | (79) | 32 | (79) | 32 |
Net Unrealized (Losses) Gains on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (128) | 166 | (186) | (28) |
Other comprehensive income before reclassifications | 13 | (28) | 74 | 190 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 3 | (2) | (18) |
Amounts reclassified from other comprehensive (loss) income | (1) | 2 | (2) | (1) |
Net other comprehensive income | 12 | (23) | 70 | 171 |
Ending balance | (116) | 143 | (116) | 143 |
Employee Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (389) | (364) | (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 | 3 | 2 | 8 | 7 |
Net other comprehensive income | 3 | 2 | 8 | 7 |
Ending balance | $ (386) | $ (362) | $ (386) | $ (362) |
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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | $ (202) | $ (134) | $ (536) | $ (372) | |
Net securities impairment losses recognized in earnings | (1) | (3) | (6) | (11) | |
Salaries and employee benefits | (436) | (432) | (1,312) | (1,289) | |
Income before income tax expense | 513 | 427 | 1,409 | 1,120 | |
Income tax expense | 165 | 130 | 423 | 357 | |
NET INCOME | 348 | 297 | 986 | 763 | |
Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax expense | 0 | 1 | 3 | 10 | |
NET INCOME | 0 | 2 | 7 | 17 | |
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] | 3 | 23 | 23 | 66 |
Interest expense | [1] | 1 | (8) | (2) | (24) |
Other income | 0 | (5) | 0 | (5) | |
Income before income tax expense | 4 | 10 | 21 | 37 | |
Income tax expense | 2 | 4 | 8 | 14 | |
NET INCOME | 2 | 6 | 13 | 23 | |
Reclassification of net securities gains (losses) to net income: | Amount Reclassified from AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Securities gains, net | 2 | 0 | 9 | 13 | |
Net securities impairment losses recognized in earnings | (1) | (3) | (6) | (11) | |
Income before income tax expense | 1 | (3) | 3 | 2 | |
Income tax expense | 0 | (1) | 1 | 1 | |
NET INCOME | 1 | (2) | 2 | 1 | |
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 | (5) | (4) | (14) | (12) | |
Income before income tax expense | (5) | (4) | (14) | (12) | |
Income tax expense | (2) | (2) | (6) | (5) | |
NET INCOME | $ (3) | $ (2) | $ (8) | $ (7) | |
[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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | $ 1,062 | $ 945 | $ 3,093 | $ 2,772 |
Provision for credit losses | 72 | 86 | 238 | 267 |
Noninterest income | 381 | 435 | 1,130 | 1,120 |
Noninterest expense | 858 | 867 | 2,576 | 2,505 |
Income before income tax expense | 513 | 427 | 1,409 | 1,120 |
Income tax expense | 165 | 130 | 423 | 357 |
NET INCOME | 348 | 297 | 986 | 763 |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net interest income | 4 | 15 | 21 | 42 |
Noninterest income | 1 | (8) | 3 | (3) |
Noninterest expense | 5 | 4 | 14 | 12 |
Income tax expense | 0 | 1 | 3 | 10 |
NET INCOME | $ 0 | $ 2 | $ 7 | $ 17 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of segments | segment | 2 | |||
Revenues | $ 1,443 | $ 1,380 | $ 4,223 | $ 3,892 |
Consumer Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25 | |||
Commercial Banking | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,500 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,062 | $ 945 | $ 3,093 | $ 2,772 |
Noninterest income | 381 | 435 | 1,130 | 1,120 |
Total revenue | 1,443 | 1,380 | 4,223 | 3,892 |
Noninterest expense | 858 | 867 | 2,576 | 2,505 |
Profit before provision for credit losses | 585 | 513 | 1,647 | 1,387 |
Provision for credit losses | 72 | 86 | 238 | 267 |
Income before income tax expense | 513 | 427 | 1,409 | 1,120 |
Income tax expense | 165 | 130 | 423 | 357 |
NET INCOME | 348 | 297 | 986 | 763 |
Total average assets | 150,012 | 144,399 | 149,563 | 141,795 |
Operating Segments | Consumer Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 674 | 621 | 1,969 | 1,804 |
Noninterest income | 227 | 229 | 676 | 656 |
Total revenue | 901 | 850 | 2,645 | 2,460 |
Noninterest expense | 648 | 650 | 1,939 | 1,898 |
Profit before provision for credit losses | 253 | 200 | 706 | 562 |
Provision for credit losses | 65 | 57 | 189 | 169 |
Income before income tax expense | 188 | 143 | 517 | 393 |
Income tax expense | 66 | 51 | 182 | 140 |
NET INCOME | 122 | 92 | 335 | 253 |
Total average assets | 60,012 | 56,689 | 59,310 | 55,825 |
Operating Segments | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 354 | 327 | 1,044 | 941 |
Noninterest income | 136 | 123 | 400 | 344 |
Total revenue | 490 | 450 | 1,444 | 1,285 |
Noninterest expense | 195 | 181 | 577 | 554 |
Profit before provision for credit losses | 295 | 269 | 867 | 731 |
Provision for credit losses | 0 | 19 | 20 | 27 |
Income before income tax expense | 295 | 250 | 847 | 704 |
Income tax expense | 94 | 88 | 279 | 245 |
NET INCOME | 201 | 162 | 568 | 459 |
Total average assets | 49,833 | 47,902 | 49,604 | 46,869 |
Other Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 34 | (3) | 80 | 27 |
Noninterest income | 18 | 83 | 54 | 120 |
Total revenue | 52 | 80 | 134 | 147 |
Noninterest expense | 15 | 36 | 60 | 53 |
Profit before provision for credit losses | 37 | 44 | 74 | 94 |
Provision for credit losses | 7 | 10 | 29 | 71 |
Income before income tax expense | 30 | 34 | 45 | 23 |
Income tax expense | 5 | (9) | (38) | (28) |
NET INCOME | 25 | 43 | 83 | 51 |
Total average assets | $ 40,167 | $ 39,808 | $ 40,649 | $ 39,101 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator (basic and diluted): | ||||
Net income | $ 348 | $ 297 | $ 986 | $ 763 |
Less: Preferred stock dividends | 7 | 7 | 14 | 14 |
Net income available to common stockholders | $ 341 | $ 290 | $ 972 | $ 749 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in Shares) | 500,861,076 | 519,458,976 | 505,529,991 | 525,477,273 |
Dilutive common shares: share-based awards (in Shares) | 1,296,308 | 1,663,490 | 1,532,814 | 1,784,111 |
Weighted-average common shares outstanding - diluted (in Shares) | 502,157,384 | 521,122,466 | 507,062,805 | 527,261,384 |
Earnings per common share: | ||||
Basic (in Dollars per Share) | $ 0.68 | $ 0.56 | $ 1.92 | $ 1.43 |
Diluted (in Dollars per Share) | $ 0.68 | $ 0.56 | $ 1.92 | $ 1.42 |
Share-based awards excluded from diluted earnings per share computation (in Shares) | 4,181 | 0 | 378,378 | 0 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Bank-owned life insurance income | $ 14 | $ 14 | $ 40 | $ 40 |
Other | 5 | 76 | 10 | 93 |
Other income | $ 19 | $ 90 | $ 50 | $ 133 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | ||||
Deposit insurance | $ 34 | $ 32 | $ 102 | $ 87 |
Promotional expense | 27 | 24 | 82 | 73 |
Settlements and operating losses | 18 | 18 | 43 | 40 |
Other | 56 | 70 | 182 | 187 |
Other operating expense | $ 135 | $ 144 | $ 409 | $ 387 |