Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Santander Holdings USA, Inc. | |
Entity Central Index Key | 811,830 | |
Document Type | 10-Q/A | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | true | |
Amendment Description | This Form 10-Q/A amends the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, as originally filed with the Securities and Exchange Commission (the "SEC") on November 13, 2015 (the "Original Filing"). This Form 10-Q/A is being filed to restate our unaudited Condensed Consolidated Financial Statements for the three months ended September 30, 2015 and 2014 to make related corrections to certain disclosures in the Original Filing. The restatement of our financial statements in this Form 10-Q/A reflects the correction of errors primarily related to (i) errors in our methodology for estimating credit loss allowance for retail installment contracts ("RICs") held for investment (ii) errors related to the lack of consideration of net discounts when estimating the allowance for credit losses ("ACL") for the non-troubled debt restructurings ("TDRs") portfolio of RICs held for investment, (iii) errors in our methodology for accreting / amortizing dealer discounts, subvention payments from manufacturers, and capitalized origination costs on RICs held for investment, and (iv) errors in computing the present value of expected future cash flow whereby the TDRs' weighted average original contractual interest rate was utilized rather than the TDRs' weighted average original effective interest rate, as required by U.S. generally accepted accounting principles ("GAAP"). The restatement also includes the correction of errors related to the income tax effects of the above errors as well as the correction of additional items for the three months ended September 30, 2015 and 2014. | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 530,391,043 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | $ 4,619,782 | $ 2,201,783 | |
Investment securities: | |||
Available-for-sale at fair value | 21,051,184 | 15,908,078 | |
Trading securities at fair value | 0 | 833,936 | |
Other investments | 999,232 | 816,991 | |
Loans held for investment | [1],[2] | 78,583,198 | 75,995,467 |
Allowance for loan losses | [2] | (2,767,144) | (1,701,602) |
Net loans held for investment | 75,816,054 | 74,293,865 | |
Loans held-for-sale | [3] | 2,990,708 | 260,252 |
Premises and equipment, net | [4] | 881,468 | 854,671 |
Leased vehicles, net | [2],[5] | 8,072,195 | 6,623,970 |
Accrued interest receivable | [2] | 586,350 | 559,962 |
Equity method investments | 268,213 | 227,991 | |
Goodwill | 8,951,484 | 8,951,484 | |
Intangible assets | 657,957 | 706,988 | |
Bank-owned life insurance | 1,716,353 | 1,686,491 | |
Restricted cash | [2] | 2,431,103 | 2,024,838 |
Other assets | [2],[6] | 1,944,788 | 2,869,580 |
TOTAL ASSETS | 130,986,871 | 118,820,880 | |
LIABILITIES | |||
Accrued expenses and payables | 1,525,332 | 1,891,235 | |
Deposits and other customer accounts | 55,543,255 | 52,474,007 | |
Borrowings and other debt obligations | [2] | 48,371,320 | 39,679,382 |
Advance payments by borrowers for taxes and insurance | 208,521 | 166,144 | |
Deferred tax liabilities, net | 1,279,719 | 1,159,971 | |
Other liabilities | [2] | 713,512 | 722,685 |
TOTAL LIABILITIES | 107,641,659 | 96,093,424 | |
STOCKHOLDER'S EQUITY | |||
Preferred stock (no par value; $25,000 liquidation preference; 7,500,000 shares authorized; 8,000 shares outstanding at September 30, 2015 and at December 31, 2014) | 195,445 | 195,445 | |
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 14,729,506 | 14,729,609 | |
Accumulated other comprehensive loss | (68,873) | (96,410) | |
Retained earnings | 4,144,731 | 3,846,417 | |
TOTAL SHUSA STOCKHOLDER'S EQUITY | 19,000,809 | 18,675,061 | |
Noncontrolling interest | 4,344,403 | 4,052,395 | |
TOTAL STOCKHOLDER'S EQUITY | 23,345,212 | 22,727,456 | |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 130,986,871 | $ 118,820,880 | |
[1] | Loans held for investment includes $374.2 million and $845.9 million of loans recorded at fair value at September 30, 2015 and December 31, 2014, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. | ||
[3] | Recorded at the fair value option ("FVO") or lower of cost or fair value. | ||
[4] | Net of accumulated depreciation of $804.6 million and $638.0 million at September 30, 2015 and December 31, 2014, respectively. | ||
[5] | Net of accumulated depreciation of $1.6 billion and $817.9 million at September 30, 2015 and December 31, 2014, respectively. | ||
[6] | Includes mortgage servicing rights ("MSRs") of $143.5 million and 145.0 million at September 30, 2015 and December 31, 2014, respectively, for which the Company has elected the FVO. See Note 9 to these Condensed Consolidated Financial Statements for additional information. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Loans held for investment, fair value | $ 374,200 | $ 845,900 |
Accumulated depreciation | 804,600 | 638,000 |
Residential servicing rights at fair value | 143,535 | 145,047 |
Leased vehicles, accumulated depreciation | $ 1,557,268 | $ 817,901 |
STOCKHOLDER'S EQUITY | ||
Preferred Stock, no par value (in usd per share) | ||
Preferred Stock, liquidation preference | $ 25 | $ 25 |
Preferred Stock, shares authorized | 7,500,000 | 7,500,000 |
Preferred Stock, shares outstanding | 8,000 | 8,000 |
Common Stock, no par value (in usd per share) | ||
Common Stock, shares authorized | 800,000,000 | 800,000,000 |
Common Stock, shares outstanding | 530,391,043 | 530,391,043 |
Residential mortgages | ||
ASSETS | ||
Residential servicing rights at fair value | $ 143,535 | $ 145,047 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME: | ||||
Loans | $ 1,834,853,000 | $ 1,813,023,000 | $ 5,574,758,000 | $ 4,909,503,000 |
Interest-earning deposits | 2,518,000 | 2,250,000 | 5,337,000 | 5,811,000 |
Investment securities: | ||||
Available-for-sale | 85,293,000 | 61,069,000 | 239,755,000 | 182,324,000 |
Other investments | 10,787,000 | 9,205,000 | 39,880,000 | 26,950,000 |
TOTAL INTEREST INCOME | 1,933,451,000 | 1,885,547,000 | 5,859,730,000 | 5,124,588,000 |
INTEREST EXPENSE: | ||||
Deposits and other customer accounts | 65,605,000 | 53,952,000 | 194,191,000 | 151,708,000 |
Borrowings and other debt obligations | 233,957,000 | 215,592,000 | 681,814,000 | 624,702,000 |
TOTAL INTEREST EXPENSE | 299,562,000 | 269,544,000 | 876,005,000 | 776,410,000 |
NET INTEREST INCOME | 1,633,889,000 | 1,616,003,000 | 4,983,725,000 | 4,348,178,000 |
Provision for credit losses | 937,165,000 | 746,663,000 | 2,956,055,000 | 1,633,889,000 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 696,724,000 | 869,340,000 | 2,027,670,000 | 2,714,289,000 |
NON-INTEREST INCOME: | ||||
Consumer fees | 122,529,000 | 93,183,000 | 332,078,000 | 276,052,000 |
Commercial fees | 44,940,000 | 44,515,000 | 133,766,000 | 130,044,000 |
Mortgage banking income, net | 31,317,000 | 97,576,000 | 85,484,000 | 127,285,000 |
Equity method investments income/(loss), net | 1,624,000 | (4,397,000) | (5,543,000) | 8,083,000 |
Bank-owned life insurance | 15,590,000 | 13,373,000 | 44,430,000 | 44,536,000 |
Lease income | 364,634,000 | 232,298,000 | 1,017,711,000 | 516,718,000 |
Miscellaneous income | 140,354,000 | 127,067,000 | 384,384,000 | 471,649,000 |
TOTAL FEES AND OTHER INCOME | 720,988,000 | 603,615,000 | 1,992,310,000 | 1,574,367,000 |
OTTI recognized in earnings | 0 | 0 | (1,092,000) | 0 |
Gain on Change in Control | 0 | 0 | 0 | 2,417,563,000 |
Net (loss)/gain on sale of investment securities | (1,993,000) | 131,000 | 18,363,000 | 11,480,000 |
Net (loss)/gain recognized in earnings | (1,993,000) | 131,000 | 17,271,000 | 2,429,043,000 |
TOTAL NON-INTEREST INCOME | 718,995,000 | 603,746,000 | 2,009,581,000 | 4,003,410,000 |
GENERAL AND ADMINISTRATIVE EXPENSES: | ||||
Compensation and benefits | 344,055,000 | 290,121,000 | 990,666,000 | 892,680,000 |
Occupancy and equipment expenses | 128,868,000 | 117,697,000 | 397,647,000 | 350,788,000 |
Technology expense | 43,534,000 | 40,806,000 | 130,690,000 | 124,874,000 |
Outside services | 80,688,000 | 57,870,000 | 184,588,000 | 136,979,000 |
Marketing expense | 25,731,000 | 11,858,000 | 57,913,000 | 37,077,000 |
Loan expense | 85,718,000 | 80,968,000 | 274,522,000 | 237,691,000 |
Lease expense | 261,668,000 | 178,813,000 | 755,945,000 | 385,560,000 |
Other administrative expenses | 88,150,000 | 90,456,000 | 258,547,000 | 223,626,000 |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,058,412,000 | 868,589,000 | 3,050,518,000 | 2,389,275,000 |
OTHER EXPENSES: | ||||
Amortization of intangibles | 15,887,000 | 17,730,000 | 49,031,000 | 50,670,000 |
Deposit insurance premiums and other expenses | 13,809,000 | 14,958,000 | 42,987,000 | 43,937,000 |
Loss on debt extinguishment | 0 | 8,311,000 | 0 | 11,946,000 |
Investment expense on qualified affordable housing projects | 35,000 | 0 | 119,000 | 0 |
Impairment of long-lived assets | 0 | 0 | 0 | 64,546,000 |
TOTAL OTHER EXPENSES | 29,731,000 | 40,999,000 | 92,137,000 | 171,099,000 |
INCOME BEFORE INCOME TAXES | 327,576,000 | 563,498,000 | 894,596,000 | 4,157,325,000 |
Income tax provision | 201,369,000 | 208,303,000 | 363,352,000 | 1,502,375,000 |
NET INCOME INCLUDING NONCONTROLLING INTEREST | 126,207,000 | 355,195,000 | 531,244,000 | 2,654,950,000 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 75,383,000 | 111,319,000 | 221,980,000 | 383,466,000 |
NET INCOME ATTRIBUTABLE TO SHUSA | $ 50,824,000 | $ 243,876,000 | $ 309,264,000 | $ 2,271,484,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | $ 126,207 | $ 355,195 | $ 531,244 | $ 2,654,950 |
OTHER COMPREHENSIVE INCOME / (LOSS), NET OF TAX | ||||
Net unrealized (losses)/gains on cash flow hedge derivative financial instruments, net of tax | (27,713) | 17,381 | (35,614) | 24,022 |
Net unrealized gains/(losses) on available-for-sale investment securities, net of tax | 83,722 | (17,697) | 61,479 | 111,291 |
Pension and post-retirement actuarial gain, net of tax | 620 | 272 | 1,672 | 1,107 |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | 56,629 | (44) | 27,537 | 136,420 |
COMPREHENSIVE INCOME | 182,836 | 355,151 | 558,781 | 2,791,370 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 75,383 | 111,319 | 221,980 | 383,466 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHUSA | $ 107,453 | $ 243,832 | $ 336,801 | $ 2,407,904 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares Outstanding | Preferred Stock | Common Stock and Paid-in Capital | Accumulated Other Comprehensive (Loss)/Income | Retained Earnings | Noncontrolling Interest | |
Beginning balance (in shares) at Dec. 31, 2013 | 520,307,000 | |||||||
Beginning balance at Dec. 31, 2013 | $ 13,577,098 | $ 195,445 | $ 12,209,816 | $ (254,368) | $ 1,426,205 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income | 2,407,904 | 136,420 | 2,271,484 | |||||
Comprehensive Income Attributable to Noncontrolling Interest | 383,466 | |||||||
Issuance of common stock (in shares) | 10,084,000 | |||||||
Issuance of common stock | 2,521,000 | 2,521,000 | ||||||
SCUSA Change in Control | [1] | 3,483,445 | 3,483,445 | |||||
Impact of SCUSA Stock Option Activity | 110,958 | 110,958 | ||||||
Stock issued in connection with employee benefit and incentive compensation plans | (1,207) | (1,207) | ||||||
Dividends paid on Noncontrolling Interest | (20,667) | (20,667) | ||||||
Dividends paid on preferred stock | (10,950) | (10,950) | ||||||
Ending balance (in shares) at Sep. 30, 2014 | 530,391,000 | |||||||
Ending balance at Sep. 30, 2014 | $ 22,451,047 | 195,445 | 14,729,609 | (117,948) | 3,686,739 | 3,957,202 | ||
Beginning balance (in shares) at Dec. 31, 2014 | 530,391,043 | 530,391,000 | ||||||
Beginning balance at Dec. 31, 2014 | $ 22,727,456 | 195,445 | 14,729,609 | (96,410) | 3,846,417 | 4,052,395 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Comprehensive income | 336,801 | 27,537 | 309,264 | |||||
Comprehensive Income Attributable to Noncontrolling Interest | 221,980 | |||||||
Impact of SCUSA Stock Option Activity | 68,024 | (2,004) | 70,028 | |||||
Stock issued in connection with employee benefit and incentive compensation plans | 1,901 | 1,901 | ||||||
Dividends paid on preferred stock | $ (10,950) | (10,950) | ||||||
Ending balance (in shares) at Sep. 30, 2015 | 530,391,043 | 530,391,000 | ||||||
Ending balance at Sep. 30, 2015 | $ 23,345,212 | $ 195,445 | $ 14,729,506 | $ (68,873) | $ 4,144,731 | $ 4,344,403 | ||
[1] | Refer to Note 3 to the Condensed Consolidated Financial Statements for further discussion. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income including noncontrolling interest | $ 531,244,000 | $ 2,654,950,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on SCUSA Change in Control | 0 | (2,280,027,000) | |
Net gain on sale of SCUSA shares | 0 | (137,536,000) | |
Gain on sale of branches | 0 | (10,648,000) | |
Impairment of capitalized software | 0 | 64,546,000 | |
Impairment of Long-Lived Assets Held-for-use, Other | 64,546,000 | ||
Provision for credit losses | 2,956,055,000 | 1,633,889,000 | |
Deferred tax expense | 55,721,000 | 1,176,742,000 | |
Depreciation, amortization and accretion | 249,373,000 | (179,928,000) | |
Net gain on sale of loans | (127,426,000) | (135,511,000) | |
Net gain on sale of investment securities | (18,363,000) | (11,480,000) | |
Gain on residential loan securitizations | (9,373,000) | (37,905,000) | |
Net gain on sale of leased vehicles | (22,548,000) | (4,570,000) | |
OTTI recognized in earnings | 1,092,000 | 0 | |
Loss on debt extinguishment | 0 | 11,946,000 | |
Net loss/(gain) on real estate owned and premises and equipment | 426,000 | (2,384,000) | |
Stock-based compensation | 19,530,000 | 3,312,000 | |
Equity loss/(earnings) on equity method investments | 5,543,000 | (8,083,000) | |
Originations of loans held-for-sale, net of repayments | (5,565,455,000) | (3,604,794,000) | |
Proceeds from sales of loans held-for-sale | 4,674,352,000 | 3,941,367,000 | |
Purchases of trading securities | (390,192,000) | (211,590,000) | |
Proceeds from sales of trading securities | 823,801,000 | 88,718,000 | |
Net change in: | |||
Other assets and bank-owned life insurance | 270,431,000 | 258,715,000 | |
Other liabilities | 253,267,000 | 148,020,000 | |
Other | 0 | 14,760,000 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,707,478,000 | 3,372,509,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sales of available-for-sale investment securities | 2,751,790,000 | 311,019,000 | |
Proceeds from prepayments and maturities of available-for-sale investment securities | 3,748,529,000 | 1,711,253,000 | |
Purchases of available-for-sale investment securities | (11,010,911,000) | (3,852,941,000) | |
Proceeds from sales of other investments | 293,016,000 | 263,059,000 | |
Proceeds from maturities of other investments | 0 | 20,000,000 | |
Purchases of other investments | (451,634,000) | (265,411,000) | |
Net change in restricted cash | (236,121,000) | (286,806,000) | |
Proceeds from sales of loans held for investment | 1,842,583,000 | 1,555,557,000 | |
Proceeds from the sales of equity method investments | 14,988,000 | 0 | |
Distributions from equity method investments | 11,708,000 | 6,454,000 | |
Contributions to equity method investments | (89,994,000) | (18,566,000) | |
Purchases of loans held for investment | (1,753,931,000) | (1,147,709,000) | |
Net change in loans other than purchases and sales | (7,388,215,000) | (5,345,759,000) | |
Purchases of leased vehicles | (4,738,987,000) | (4,842,410,000) | |
Proceeds from the sale of leased vehicles | 1,758,531,000 | 409,944,000 | |
Manufacturer incentives | 991,326,000 | 768,304,000 | |
Proceeds from sales of real estate owned and premises and equipment | 55,572,000 | 50,964,000 | |
Purchases of premises and equipment | (183,154,000) | (204,626,000) | |
Net cash transferred on the sale of branches | 0 | (151,286,000) | |
Proceeds from sale of SCUSA shares | 0 | 320,145,000 | |
Cash acquired in SCUSA Change in Control | 0 | 11,076,000 | |
NET CASH USED IN INVESTING ACTIVITIES | (14,384,904,000) | (10,687,739,000) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits and other customer accounts | 3,069,248,000 | 2,034,024,000 | |
Net change in short-term borrowings | (5,450,000,000) | 82,039,000 | |
Net proceeds from long-term borrowings | 41,022,868,000 | 29,060,843,000 | |
Repayments of long-term borrowings | (34,995,331,000) | (26,911,107,000) | |
Proceeds from FHLB advances (with maturities greater than 90 days) | 14,200,000,000 | 0 | |
Repayments of FHLB advances (with maturities greater than 90 days) | (4,870,000,000) | (921,946,000) | |
Net change in advance payments by borrowers for taxes and insurance | 42,377,000 | 20,678,000 | |
Cash dividends paid to preferred stockholders | (10,950,000) | (10,950,000) | |
Dividends paid to noncontrolling interest | 0 | (20,668,000) | |
Proceeds from the issuance of common stock | 87,213,000 | 1,787,285,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 13,095,425,000 | 5,120,198,000 | |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 2,417,999,000 | (2,195,032,000) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,201,783,000 | 4,226,947,000 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,619,782,000 | 2,031,915,000 | |
SUPPLEMENTAL DISCLOSURES | |||
Income taxes (received)/paid, net | (134,241,000) | (135,644,000) | |
Interest paid | 904,715,000 | 884,032,000 | |
NON-CASH TRANSACTIONS | |||
Loans transferred to other real estate owned | [1] | 53,024,000 | 41,207,000 |
Operating leases transferred to repossessed vehicles | [1] | 27,821,000 | 115,466,000 |
Loans transferred from held for investment to held for sale, net | [1] | 3,464,436,000 | (371,377,000) |
Unsettled purchases of investment securities | [1] | 697,057,000 | 0 |
Conversion of debt to common equity | [1] | 0 | 750,000,000 |
Liquidation of common equity securities | [1] | 0 | (24,742,000) |
Residential loan securitizations | [1] | $ 234,547,000 | $ 1,566,612,000 |
[1] | The first quarter 2014 change in control and consolidation of SCUSA (the "Change in Control") was accounted for as a non-cash transaction. See Note 3 to the Condensed Consolidated Financial Statements for detail on the Change in Control. |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES Introduction SHUSA is the parent company of Santander Bank, National Association, (the "Bank"), a national banking association, and Santander Consumer USA Holdings Inc. (together with its subsidiaries, "SCUSA"), a consumer finance company focused on vehicle finance. SHUSA is headquartered in Boston, Massachusetts and the Bank's main office is in Wilmington, Delaware. SHUSA is a wholly-owned subsidiary of Banco Santander, S.A. ("Santander"). The Bank’s primary business consists of attracting deposits and providing other retail banking services through its network of retail branches, and originating small business loans, middle market, large and global commercial loans, multi-family loans, residential mortgage loans, home equity loans and lines of credit, and auto and other consumer loans throughout the Mid-Atlantic and Northeastern areas of the United States, focused throughout Pennsylvania, New Jersey, New York, New Hampshire, Massachusetts, Connecticut, Rhode Island, and Delaware. The Bank uses its deposits, as well as other financing sources, to fund its loan and investment portfolios. SCUSA wholly owns Santander Consumer USA Inc., which is headquartered in Dallas, Texas, and is a full-service, technology-driven consumer finance company focused on vehicle finance. On January 22, 2014, SCUSA's registration statement for an initial public offering ("IPO") of shares of its common stock (the “SCUSA Common Stock”), was declared effective by the Securities and Exchange Commission (the "SEC"). Prior to the IPO, the Company owned approximately 65% of the shares of SCUSA Common Stock. On January 28, 2014, the IPO was consummated, and certain stockholders of SCUSA, including the Company and Sponsor Auto Finance Holdings Series LP ("Sponsor Holdings"), sold 85,242,042 shares of SCUSA Common Stock. Immediately following the IPO, the Company owned approximately 61% of the shares of SCUSA Common Stock. In connection with these sales, certain board representation, governance and other rights granted to Dundon DFS LLC ("DDFS") and Sponsor Holdings were terminated as a result of the reduction in DDFS and Sponsor Holdings’ collective ownership of shares of SCUSA Common Stock below certain ownership thresholds, causing the Change in Control. Prior to the Change in Control, the Company accounted for its investment in SCUSA under the equity method. Following the Change in Control, the Company consolidated the financial results of SCUSA in the Company’s Consolidated Financial Statements. The Company’s consolidation of SCUSA is treated as an acquisition of SCUSA by the Company in accordance with Accounting Standards Codification ("ASC") 805 - Business Combinations (ASC 805). SCUSA Common Stock is now listed for trading on the New York Stock Exchange under the trading symbol "SC". On July 2, 2015, the Company announced that it had entered into an agreement with former SCUSA Chief Executive Officer Thomas G. Dundon, DDFS, and Santander related to Mr. Dundon's departure from SCUSA (the “Separation Agreement”). Pursuant to the Separation Agreement the Company was deemed to have delivered an irrevocable notice to exercise its option to acquire all of the shares of SCUSA Common Stock owned by DDFS and consummate the transactions contemplated by the call option notice, subject to the receipt of all required regulatory approvals (the "Call Transaction"). At that date, the SCUSA Common Stock held by DDFS ("the DDFS Shares") represented approximately 9.8% of SCUSA Common Stock. The Separation Agreement did not affect Santander’s option to assume the Company’s obligation under the Call Transaction as provided in the Shareholders Agreement that was entered into by the same parties on January 28, 2014. Santander is expected to assume the Company’s obligation to purchase the DDFS shares and contribute those shares to SHUSA. Under the Separation Agreement, because the Call Transaction was not consummated prior to October 15, 2015 (the “Call End Date”), DDFS is free to transfer any or all of the DDFS shares, subject to the terms and conditions of the Amended and Restated Loan Agreement, dated as of July 16, 2014, between DDFS and Santander. In the event the Call Transaction were to be completed after the Call End Date, interest would accrue on the price paid per share in the Call Transaction at the overnight LIBOR rate on the third business day preceding the consummation of the Call Transaction plus 100 basis points with respect to the shares of SCUSA Common Stock that were ultimately sold in the Call Transaction. For additional detail regarding this transaction and the Separation Agreement, refer to the Form 8-K the Company filed with the SEC on July 2, 2015 and Note 14 to these Condensed Consolidated Financial Statements. NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) See Note 3 to the Consolidated Financial Statements for a detailed discussion of the Company's consolidation of SCUSA in accordance with ASC 805. Basis of Presentation These Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries, including the Bank, SCUSA, and certain special purpose financing trusts utilized in financing transactions that are considered variable interest entities ("VIEs"). The Company consolidates VIEs for which it is deemed the primary beneficiary. The Condensed Consolidated Financial Statements have been prepared by the Company, without audit, pursuant to SEC regulations. All intercompany balances and transactions have been eliminated in consolidation. Additionally, where applicable, the Company's accounting policies conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. However, in the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Statements of Operations, Condensed Statements of Comprehensive Income, Condensed Statements of Stockholder's Equity and Condensed Statements of Cash Flows for the periods indicated, and contain adequate disclosure to make the information presented not misleading. Significant Accounting Policies Management has identified accounting for consolidation, business combinations, the allowance for loan losses for originated and purchased loans and the reserve for unfunded lending commitments, loan modifications and troubled debt restructurings, goodwill, derivatives and hedge activities, and income taxes as the Company's significant accounting policies and estimates, in that they are important to the portrayal of the Company's financial condition and results of operations and cash flows and the accounting estimates related thereto require management's most difficult, subjective and complex judgments as a result of the need to make estimates about the effect of matters that are inherently uncertain. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2014. As of September 30, 2015 , with the exception of the items noted in the section "Changes in Accounting Policies" below, there have been no significant changes to the Company's accounting policies as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2014 . Changes in Accounting Policies During the first quarter of 2015, the Company adopted the following Financial Accounting Standards Board (the "FASB") Accounting Standards Updates ("ASUs"), none of which had a material impact to the Company's Condensed Consolidated financial statements: • The Company adopted the FASB ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, which allows an entity to make an accounting policy election to account for its investments in qualified affordable housing projects using the proportional amortization method, if certain conditions are met. Under this method, an investor would amortize the cost of its investments in proportion to the tax credits and other tax benefits received and will recognize the amortization, net of tax credits and other tax benefits, in the income statement as a component of income tax expense. This ASU is required to be adopted on a retrospective basis for all periods presented. The adoption of this ASU did not have a material effect to the Company’s prior periods’ consolidated financial statements to warrant retrospective application. The cumulative effect of the adoption was recognized in the first quarter of 2015 and was not material to the Company’s Condensed Consolidated Financial Statements. NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) • The Company adopted FASB ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, on a prospective basis. Under this ASU, an in-substance repossession or foreclosure occurs when the creditor obtains legal title to the residential real estate property or the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The Company’s adoption of this ASU did not have a material effect on its Condensed Consolidated Financial Statements. • The Company adopted FASB ASU 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a government-guaranteed mortgage loan be de-recognized, and that a separate other receivable be recognized, upon foreclosure if the three criteria identified in the ASU are met. Upon foreclosure and meeting the three criteria, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) that is expected to be recovered from the guarantor. The Company’s adoption of this ASU did not have a material effect on its Condensed Consolidated Financial Statements. • During the third quarter of 2015, the Company early adopted FASB ASU 2015-03, Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis . This ASU simplifies the presentation of debt issuance costs and requires that debt issuance costs be presented as a deduction from the recognized debt liability, and eliminates prior guidance which required that debt issuance costs be recorded as a deferred charge. The Company’s adoption of this ASU resulted in the re-classification of $59.0 million and $30.3 million in debt issuance costs from Other assets to Borrowings as of September 30, 2015 and December 31, 2014 , respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The most significant estimates pertain to consolidation, fair value measurements, allowance for loan and lease losses and reserve for unfunded lending commitments, estimates of expected residual values of leased vehicles subject to operating leases, goodwill, derivatives and hedge activities, and income taxes. Actual results may differ from the estimates, and the differences may be material to the Condensed Consolidated Financial Statements. Subsequent Events The Company evaluated events from the date of the Condensed Consolidated Financial Statements on September 30, 2015 through the Original Filing of these Condensed Consolidated Financial Statements and has determined that there have been no material events that would require recognition in its Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements for the quarter ended September 30, 2015 other than the transactions disclosed within Note 18 of these Condensed Consolidated Financial Statements. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 2. RECENT ACCOUNTING DEVELOPMENTS In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , superseding the revenue recognition requirements in ASC 605. This ASU requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. In August 2015, the FASB issued ASU 2015-14, which formalized the deferral of the effective date of the amendment for a period of one-year from the original effective date. Following the issuance of ASU 2015-14, the amendment will be effective for the Company for the first annual period ending after December 15, 2017. The amendment should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption of the guidance is not permitted. The Company is currently evaluating the impact of adopting this ASU on its financial position, results of operations and disclosures. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718) . This ASU requires that a performance target that affects vesting, and could be achieved after the requisite service period, be treated as a performance condition. Application of existing guidance in ASC 718 as it relates to awards with performance conditions that affect vesting should continue to be used to account for such awards. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015. Adoption of this amendment should be applied on a prospective basis to awards that are granted or modified on or after the effective date. There also is an option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its financial position, results of operations and disclosures. In August 2014, the FASB also issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40). This ASU requires management to perform an assessment of going concern and provides specific guidance on when and how to assess or disclose going concern uncertainties. The new standard also defines terms used in the evaluation of going concern, such as "substantial doubt." Following application, the Company will be required to perform assessments at each annual and interim period, provide an assessment period of one year from the issuance date, and make disclosures in certain circumstances in which substantial doubt is identified. The amendment will be effective for the Company for the first reporting period ending after December 15, 2016. Earlier application is permitted. The Company does not expect the adoption of this ASU to have an impact on its financial position, result of operations, or disclosures. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This ASU eliminates the concept of extraordinary items from GAAP, which previously required the separate classification, presentation, and disclosure of extraordinary events and transactions. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015, with early adoption permitted if the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the amendment by the Company can be either on a prospective or retrospective basis. The Company plans to apply this amendment effective for reporting periods beginning after December 15, 2015 and will apply it prospectively, as the Company has not reported any extraordinary items in the three prior fiscal years. The Company does not expect the adoption of this ASU to have an impact on its financial position, results of operations, or disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis. This ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015, with early adoption permitted if the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the amendment by the Company may be on a retrospective or modified retrospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. NOTE 2. RECENT ACCOUNTING DEVELOPMENTS (continued) In May 2015, the FASB issued ASU 2015-7, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force). This ASU removes the requirement to categorize investments fair valued using the net asset value per share practical expedient within the fair value hierarchy. It also modifies disclosure requirements to include only investments for which the entity elects to use the practical expedient rather than the prior guidance which required disclosures for all investments eligible to use the practical expedient. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2015, with early adoption permitted. Adoption of the amendment by the Company must be on a retrospective basis for all periods presented. The Company is in the process of evaluating the impacts of the adoption of this ASU. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments. This amendment eliminates the requirement to retrospectively account for adjustments to provisional amounts recognized in a business combination. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2015, with earlier adoption permitted for financial statements that have not been issued. Adoption of the amendment by the Company must be on a prospective basis to adjustments to provisional amounts that occur after the effective date. The Company does not expect the adoption of this ASU to have an impact on its financial position, results of operations, or disclosures. |
BUSINESS COMBINATIONS (As Resta
BUSINESS COMBINATIONS (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS (As Restated) | NOTE 3. BUSINESS COMBINATIONS (As Restated) General On January 28, 2014, the Company obtained a controlling financial interest in SCUSA in connection with the Change in Control. The financial information set forth in these Condensed Consolidated Financial Statements gives effect to the Company’s consolidation of SCUSA as a result of the Change in Control. Consolidated Assets acquired and Liabilities assumed The Company did not incur any material transaction-related expenses in connection with the Change in Control, and no cash, equity interests, or other forms of consideration were transferred from the Company in connection with the Change in Control. As a result, the Company measured goodwill by reference to the fair value of SCUSA's equity as implied by the IPO price. The following table summarizes these equity related interests in SCUSA which constitute the purchase price and the identified assets acquired and liabilities assumed: NOTE 3. BUSINESS COMBINATIONS (As Restated) (continued) January 28, 2014 (in thousands) Fair value of noncontrolling interest in SCUSA $ 3,273,265 Fair value of SCUSA employee vested stock options 210,181 Fair value of SHUSA remaining ownership interest in SCUSA 5,063,881 Fair value of equity-related interests in SCUSA $ 8,547,327 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 11,075 Restricted cash 1,704,906 Loan receivables - held for sale 990,137 Loan receivables - retail installment contracts 19,870,790 Loan receivables from dealers 102,689 Loan receivables - unsecured 1,009,896 Premises and equipment 74,998 Leased vehicles, net 2,486,929 Intangibles 768,750 Miscellaneous receivables and other assets 1,061,351 Deferred tax asset 7,210 Borrowings and other debt obligations (24,497,607 ) Accounts payable and accrued liabilities (570,852 ) Total identifiable net assets 3,020,272 Goodwill $ 5,527,055 The fair value of the non-controlling interest ("NCI") of $3.3 billion and the fair value of the Company's remaining ownership interest in SCUSA of $5.1 billion were determined on the basis of the market price of SCUSA Common Stock on the Change in Control date. The Company recognized SCUSA’s stock option awards that were outstanding as of the IPO date at fair value, which in aggregate amounted to $369.3 million . The portion of the total fair value of the stock option awards that is attributable to pre-business combination service amounting to $210.2 million represented an NCI in SCUSA as of the IPO date, while $159.1 million of the total amount pertains to the post-business combination portion, which will be recognized as stock compensation expense over the remaining vesting period of the awards in the Company’s post-business combination consolidated financial statements. Of the total $159.1 million , $82.6 million was immediately recognized as stock compensation expense as a result of the acceleration of the vesting of certain of the stock option awards upon the closing of the IPO. The fair value of stock option awards was estimated using the Black-Scholes option valuation model. The Company also recognized SCUSA's restricted stock awards that were outstanding as of the IPO date at fair value. These shares of restricted stock were granted to certain SCUSA executives on December 28, 2013 and had an aggregate fair value of approximately $12.0 million as of the IPO date. The grant date fair value was determined based on SCUSA's per share prices as of the IPO closing date. The fair value of the assets acquired includes finance receivables. SHUSA estimated the fair value of loans acquired from SCUSA by utilizing a methodology in which similar loans were aggregated into pools. Cash flows for each pool were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on a market rate for similar loans. There was no carryover of SCUSA's allowance for loan losses associated with the loans SHUSA acquired as the loans were initially recorded at fair value. NOTE 3. BUSINESS COMBINATIONS (As Restated) (continued) January 28, 2014 (in thousands) Fair value of loan receivables (1) $ 19,870,790 Gross contractual amount of loan receivables (1) 31,410,699 Estimate of contractual cash flows not expected to be collected at acquisition (1) 4,301,586 (1) Fair value of receivables does not include amounts related to the loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of the receivables. The loans purchased in the Change in Control were recognized at fair value, which was at a discount to the unpaid principal balance ("UPB") of the loans. Discounts on purchased loans are accreted over the remaining expected lives of the loans using the retrospective effective interest method. The unamortized portion of the purchase discount is a reduction to the loans’ recorded investment and therefore reduces allowance requirements. Because the loans purchased in a bulk purchase or in a business combination are initially recognized at fair value with no allowance, the Company considers the entire unaccreted discount on these loans available to absorb credit losses in the purchased portfolio when determining the ACL. For these loans, the Company records provisions for credit losses when incurred losses exceed the unaccreted purchase discount. This policy does not apply to purchases of loan portfolios acquired with evidence of credit deterioration, on which we elected to apply the fair value option ("FVO"), or to RICs originated after the Change in Control. January 28, 2014 (in thousands) UPB (1) $ 20,343,356 UPB - FVO (2) 2,611,446 Total UPB 22,954,802 Purchase Marks (3) (3,084,012 ) Total 19,870,790 (1) UPB does not include amounts related to loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of the receivables. (2) The Company elected to account for these loans under the FVO. (3) Includes purchase marks of $741.1 million related to purchase loan portfolios on which we elected to apply the FVO. Goodwill recognized in connection with the Change in Control is attributable to SCUSA's workforce as well as the experience, proven track record, and strong capabilities of its senior management team. The goodwill associated with the Change in Control was allocated to the SCUSA segment and is not deductible for tax purposes. January 28, 2014 Fair Value Weighted Average Amortization Period (dollars in thousands) Intangibles subject to amortization: Dealer networks $ 580,000 17.5 years (a) Chrysler relationship 138,750 9.2 years Intangibles not subject to amortization: Trade name 50,000 indefinite lived Total Intangibles $ 768,750 (a) The amortization periods of the dealer network range between 7 and 20 years. NOTE 3. BUSINESS COMBINATIONS (As Restated) (continued) Gain on Change in Control The Company recognized a pre-tax gain of $2.4 billion in connection with the Change in Control in Non-interest income in the Condensed Consolidated Statement of Operations. January 28, 2014 (in thousands) Gain attributable to SCUSA shares sold $ 137,536 Gain attributable to the remaining equity interest 2,280,027 Total pre-tax gain $ 2,417,563 In connection with the closing of the IPO on January 28, 2014, the Company sold 13,895,243 shares of SCUSA Common Stock, which generated proceeds of $320.1 million and a realized gain on sale of $137.5 million . Proforma Financial Information (Unaudited) The results of SCUSA are included in the Company's results beginning January 28, 2014. The following table summarizes the actual unaudited amounts of Total revenue, net of Total interest expense and Net income including Noncontrolling Interest of SCUSA included in the Condensed Consolidated Financial Statements for the three-month and nine-month periods ended September 30, 2014 and the supplemental pro forma consolidated Total revenue, net of total interest expense and Net income including noncontrolling interest of SHUSA entity for the three-month and nine-month periods ended September 30, 2014 as if the Change in Control had occurred on January 1, 2013. These results include the impact of amortizing certain purchase accounting adjustments such as intangible assets as well as fair value adjustments to loans and issued debt. These pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual consolidated results of operations of SHUSA that would have been achieved had the Change in Control occurred at January 1, 2013, nor are they intended to represent or be indicative of future results of operations. SCUSA Amounts Included in Results for the Supplemental Pro Forma Combined (b) Three-Month Period Ended September 30, 2014 Nine-Month Period Ended September 30, 2014 Three-Month Period Ended September 30, 2014 Nine-Month Period Ended September 30, 2014 (in thousands) Total Revenue, Net of Total Interest Expense (a) $ 1,534,644 $ 4,112,641 $ 2,232,312 $ 6,239,871 Net Income including Noncontrolling Interest 280,138 925,556 289,417 655,055 (a) Total Revenue, Net of Total Interest Expense is calculated as the sum of Total Interest Income and Total Non-Interest Income, less Total Interest Expense. (b) Includes the impact of recording provision for loan losses necessary to bring the retail installment contracts and personal unsecured loans to their expected carrying values considering the required allowance for loan losses on their recorded investment amounts. These amounts have been calculated after applying SHUSA's accounting policies and adjusting the results of SCUSA to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to loans, debt, premises and equipment had been applied from January 1, 2013 with the consequential tax effects. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 4. INVESTMENT SECURITIES Investments Available-for-sale Investment Securities Summary - Available-for-sale The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of securities available-for-sale at the dates indicated: September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 3,191,564 $ 18,299 $ — $ 3,209,863 Corporate debt securities 1,554,216 17,224 (8,341 ) 1,563,099 Asset-backed securities ("ABS") 1,938,581 7,111 (1,041 ) 1,944,651 Equity securities 10,826 3 (301 ) 10,528 State and municipal securities 750,946 12,524 (2,148 ) 761,322 Mortgage-backed securities: U.S. government agencies - Residential 4,077,361 31,836 (16,724 ) 4,092,473 U.S. government agencies - Commercial 986,989 10,283 (5,109 ) 992,163 FHLMC and FNMA - Residential debt securities (1) 8,379,831 46,998 (89,154 ) 8,337,675 FHLMC and FNMA - Commercial debt securities 138,383 1,402 (427 ) 139,358 Non-agency securities 52 — — 52 Total investment securities available-for-sale $ 21,028,749 $ 145,680 $ (123,245 ) $ 21,051,184 (1) Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 1,692,838 $ 2,985 $ (56 ) $ 1,695,767 Corporate debt securities 2,159,681 29,630 (6,910 ) 2,182,401 Asset-backed securities 2,707,207 17,787 (4,591 ) 2,720,403 Equity securities 10,619 3 (279 ) 10,343 State and municipal securities 1,790,776 35,071 (2,385 ) 1,823,462 Mortgage-backed securities: U.S. government agencies - Residential 2,151,111 1,626 (33,811 ) 2,118,926 U.S government agencies - Commercial 472,611 183 (7,186 ) 465,608 FHLMC and FNMA - Residential debt securities 4,971,045 12,817 (129,990 ) 4,853,872 FHLMC and FNMA - Commercial debt securities 23,929 157 (171 ) 23,915 Non-agency securities 12,842 539 — 13,381 Total investment securities available-for-sale $ 15,992,659 $ 100,798 $ (185,379 ) $ 15,908,078 The Company continuously evaluates its investment strategies in light of changes in the regulatory and market environments that could have an impact on capital and liquidity. Based on this evaluation, it is reasonably possible that the Company may elect to pursue other strategies relative to its investment securities portfolio. During the second quarter of 2015 , SHUSA sold $234.5 million of qualifying residential loans to FHLMC in return for $243.9 million of mortgage-backed securities ("MBS") issued by FHLMC resulting in a net realized gain on sale of $9.8 million which is included in Mortgage banking income, net line of the Company's Condensed Consolidated Statement of Operations. NOTE 4. INVESTMENT SECURITIES (continued) As of September 30, 2015 and December 31, 2014 , the Company had investment securities available-for-sale with an estimated fair value of $4.1 billion and $3.5 billion , respectively, pledged as collateral, which was made up of the following: $3.5 billion and $2.6 billion were pledged to secure public fund deposits; $122.6 million and $301.6 million , respectively, were pledged at various independent parties ("Brokers") to secure repurchase agreements, support hedging relationships, and for recourse on loan sales; and $450.6 million and $560.6 million , respectively, were pledged to secure the Bank's customer overnight sweep product. At September 30, 2015 and December 31, 2014 , the Company had $64.5 million and $67.3 million , respectively, of accrued interest related to investment securities which is included in the Accrued Interest Receivable line of the Company's Condensed Consolidated Balance Sheet. The Company's state and municipal bond portfolio primarily consists of general obligation bonds of states, cities, counties and school districts. The portfolio had a weighted average underlying credit risk rating of AA+ as of September 30, 2015 . The largest geographic concentrations of state and local municipal bonds are in Washington, Massachusetts, and Connecticut, which represented 21.4% , 14.5% , and 12.2% , respectively, of the total portfolio. No other state comprised more than 10% of the total portfolio. Contractual Maturity of Debt Securities Contractual maturities of the Company’s debt securities available-for-sale at September 30, 2015 are as follows: Amortized Cost Fair Value (in thousands) Due within one year $ 676,336 $ 674,564 Due after 1 year but within 5 years 5,847,161 5,883,134 Due after 5 years but within 10 years 361,297 363,618 Due after 10 years 14,133,129 14,119,340 Total $ 21,017,923 $ 21,040,656 Actual maturities may differ from contractual maturities when there is a right to call or prepay obligations with or without call or prepayment penalties. Gross Unrealized Loss and Fair Value of Securities Available-for-Sale The following tables present the aggregate amount of unrealized losses as of September 30, 2015 and December 31, 2014 on securities in the Company’s available-for-sale investment portfolio classified according to the amount of time that those securities have been in a continuous loss position: September 30, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate debt securities $ 500,998 $ (6,427 ) $ 136,932 $ (1,914 ) $ 637,930 $ (8,341 ) Asset-backed securities 143,150 (1,041 ) — — 143,150 (1,041 ) Equity securities 376 (2 ) 9,850 (299 ) 10,226 (301 ) State and municipal securities 203,170 (1,217 ) 25,430 (931 ) 228,600 (2,148 ) Mortgage-backed securities: U.S. government agencies - Residential 400,513 (735 ) 972,042 (15,989 ) 1,372,555 (16,724 ) U.S government agencies - Commercial 216,806 (2,551 ) 116,893 (2,558 ) 333,699 (5,109 ) FHLMC and FNMA - Residential 1,219,050 (4,080 ) 2,245,972 (85,074 ) 3,465,022 (89,154 ) FHLMC and FNMA - Commercial 42,195 (427 ) — — 42,195 (427 ) Total $ 2,726,258 $ (16,480 ) $ 3,507,119 $ (106,765 ) $ 6,233,377 $ (123,245 ) NOTE 4. INVESTMENT SECURITIES (continued) December 31, 2014 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) US Treasury securities $ 298,914 $ (56 ) $ — $ — $ 298,914 $ (56 ) Corporate debt securities 538,108 (3,262 ) 214,852 (3,648 ) 752,960 (6,910 ) Asset-backed securities 632,936 (1,437 ) 424,333 (3,154 ) 1,057,269 (4,591 ) Equity securities 55 — 9,879 (279 ) 9,934 (279 ) State and municipal securities 45,128 (90 ) 192,091 (2,295 ) 237,219 (2,385 ) Mortgage-backed securities: U.S. government agencies - Residential 415,731 (2,693 ) 1,348,908 (31,118 ) 1,764,639 (33,811 ) U.S. government agencies - Commercial 281,258 (2,459 ) 136,269 (4,727 ) 417,527 (7,186 ) FHLMC and FNMA - Residential debt securities 399,176 (2,019 ) 2,607,695 (127,971 ) 3,006,871 (129,990 ) FHLMC and FNMA - Commercial debt securities 11,269 (171 ) — — 11,269 (171 ) Total $ 2,622,575 $ (12,187 ) $ 4,934,027 $ (173,192 ) $ 7,556,602 $ (185,379 ) Other-Than-Temporary Impairment ("OTTI") Management evaluates all investment products in an unrealized loss position for OTTI on at least a quarterly basis. Individual securities are further assessed for OTTI as deemed necessary. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. The OTTI assessment is a subjective process requiring the use of judgments and assumptions. During the securities-level assessments, consideration is given to (1) the intent not to sell and probability that the Company will not be required to sell the security before recovery of its cost basis to allow for any anticipated recovery in fair value, (2) the financial condition and near-term prospects of the issuer, as well as Company news and current events, and (3) the ability to collect the future expected cash flows. Key assumptions utilized to forecast expected cash flows may include loss severity, expected cumulative loss percentage, cumulative loss percentage to date, weighted average Fair Isaac Corporation credit scoring model ("FICO") scores and weighted average loan-to-value ("LTV") ratio, rating or scoring, credit ratings and market spreads, as applicable. The Company assesses and recognizes OTTI in accordance with applicable accounting standards. Under these standards, if the Company determines that impairment on its debt securities exists and it has made the decision to sell the security or it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost basis, it recognizes the entire portion of the unrealized loss in earnings. If the Company has not made a decision to sell the security and it does not expect that it will be required to sell the security prior to the recovery of the amortized cost basis but the Company has determined that OTTI exists, it recognizes the credit-related portion of the decline in value of the security in earnings. There was no OTTI recognized in the first quarter of 2015 . During the second quarter of 2015, the Company began implementing a strategy to improve the Bank's liquidity by selling non-high-quality liquid assets and reinvesting the funds into high-quality liquid assets. At June 30, 2015 , 9 securities totaling a book value of $377 million in an unrealized loss position had not yet been sold. Because the Company could no longer assert that it does not have the intent to sell these securities, the Company determined that the impairment was other-than-temporary. As a result, these securities were written down to fair value, resulting in a $1.1 million OTTI charge. These securities were sold during the third quarter of 2015 for an additional loss of $1.0 million . The Company did not record any OTTI in earnings related to its investment securities in the third quarter of 2015 or in the three-month and nine-month periods ended September 30, 2014 . NOTE 4. INVESTMENT SECURITIES (continued) Management has concluded that the unrealized losses on its debt and equity securities for which it has not recognized OTTI (which was comprised of 277 individual securities at September 30, 2015 ) are temporary in nature since (1) they are not related to the underlying credit quality of the issuers, (2) the entire contractual principal and interest due on these securities is currently expected to be recoverable, (3) the Company does not intend to sell these investments at a loss and (4) it is more likely than not that the Company will not be required to sell the investments before recovery of the amortized cost basis, which may be at maturity. Accordingly, the Company has concluded that the impairment on these securities is not other-than-temporary. Gains (Losses) and Proceeds on Sales of Securities Proceeds from sales of investment securities and the realized gross gains and losses from those sales are as follows: Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Proceeds from the sales of available-for-sale securities $ 497,182 $ 21,138 $ 2,751,790 $ 311,019 Gross realized gains $ 533 $ 131 $ 23,592 $ 11,547 Gross realized losses (2,526 ) — (5,229 ) (67 ) OTTI — — (1,092 ) — Net realized (losses)/gains $ (1,993 ) $ 131 $ 17,271 $ 11,480 The Company uses the specific identification method to determine the cost of the securities sold and the gain or loss recognized. The net loss realized for the three-month period ended September 30, 2015 was primarily comprised of the sale of corporate debt securities with a book value of $63.7 million for a gain of $0.4 million , and the sale of ABS with a book value of $419.6 million for a loss of $1.4 million . The net gain for the nine-month period ended September 30, 2015 was primarily comprised of the sale of state and municipal securities with a book value of $421.5 million for a gain of $12.1 million , the sale of corporate debt securities with a book value of $517.6 million for a gain of $7.0 million , and the sale of ABS with a book value of $683.9 million for a loss of $0.2 million , offset by OTTI of $1.1 million . The net gain realized for the three-month period ended September 30, 2014 was primarily due to the sale of corporate debt securities with a book value of $88.4 million for a gain of $0.1 million . The net gain realized for the nine-month period ended September 30, 2014 was primarily comprised of the sale of state and municipal securities with a book value of $89.0 million for a gain of $5.2 million , the sale of corporate debt securities with a book value of $434.8 million for a gain of $4.7 million , and the sale of MBS with a book value of $21.6 million for a gain of $1.3 million . Trading Securities The Company did no t hold any trading securities at September 30, 2015 , compared to $833.9 million held at December 31, 2014 . Gains and losses on trading securities are recorded within Mortgage banking income, net, in the Company's Condensed Consolidated Statement of Operations as the Company utilized trading securities portfolio to economically hedge the MSR portfolio. The realized activity of trading gains and losses related to trading securities are as follows: Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Net gains recognized during the period on trading securities $ — $ 1,899 $ 6,391 $ 3,386 Less: Net gains recognized during the period on trading securities sold during the period — 2,047 6,391 3,782 Unrealized losses during the reporting period on trading securities still held at the reporting date $ — $ (148 ) $ — $ (396 ) NOTE 4. INVESTMENT SECURITIES (continued) As of September 30, 2015 , the Company had no trading securities pledged as collateral. As of September 30, 2014, the Company had trading securities with an estimated fair value of $33.0 million pledged as collateral to secure the Bank's customer overnight sweep product. Other Investments Other investments at September 30, 2015 were $999.2 million , compared to $817.0 million at December 31, 2014 . Other investments primarily include the Company's investment in the stock of the FHLB of Pittsburgh and the Federal Reserve Bank ("FRB") with aggregate carrying amounts of $975.6 million and $817.0 million as of September 30, 2015 and December 31, 2014 , respectively. The stocks do not have readily determinable fair values because their ownership is restricted and they lack a market. The stocks can be sold back only at their par value of $100 per share and only to FHLBs or to another member institution. Accordingly, these stocks are carried at cost. During the three-month and nine-month periods ended September 30, 2015 , the Company purchased $208.0 million and $447.9 million of FHLB stock at par, respectively, and redeemed $105.4 million and $344.6 million of FHLB stock at par, respectively. The Company also purchased $3.7 million of FRB stock at par during the nine-month period ended September 30, 2015 . The Company did no t purchase any FRB stock at par during the three-month period ended September 30, 2015 . There was no gain or loss associated with these sales. Other investments also include $23.6 million of Low Income Housing Tax Credit Investments as of September 30, 2015 . The Company evaluates these investments for impairment based on the ultimate recoverability of the carrying value, rather than by recognizing temporary declines in value. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) | =640 3,059,119 12.1 % 1,071,993 42.4 % N/A (1) 5,162,435 20.4 % 644,744 25.5 % Total $ 25,288,219 100.0 % $ 2,528,739 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs and Personal unsecured loans include $825.8 million and $1.9 billion , respectively of LHFS at September 30, 2015 that do not have an allowance. December 31, 2014 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Personal unsecured loans balance Percent (in thousands) <600 $ 11,669,878 52.0 % $ 491,984 18.2 % 600-639 4,046,452 18.0 % 446,995 16.6 % 640-679 4,046,452 18.0 % 1,163,203 43.1 % 680-719 — — % 64,610 2.4 % 720-759 — — % 72,235 2.7 % >=760 — — % 78,234 2.9 % N/A (1) 2,667,671 12.0 % 379,559 14.1 % Total $ 22,430,453 100.0 % $ 2,696,820 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs include $45.4 million of LHFS at December 31, 2014 that do not have an allowance. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Lending Asset Quality Indicators-FICO and Combined Loan-to-Value ("CLTV") Residential mortgage and home equity financing receivables by CLTV range are summarized as follows: Residential Mortgages September 30, 2015 N/A LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total (in thousands) N/A $ 511,932 $ 12,469 $ 1,911 $ — $ — $ — $ — $ 526,312 <600 133 235,909 74,340 32,482 17,798 10,463 9,814 380,939 600-639 1 163,673 47,512 24,478 16,017 5,629 8,704 266,014 640-679 237 259,330 84,767 35,774 29,088 10,259 13,600 433,055 680-719 21 487,624 183,363 65,314 45,454 11,277 27,042 820,095 720-759 344 711,855 322,421 76,584 52,347 12,440 22,610 1,198,601 >=760 87 2,109,059 725,490 120,411 61,042 22,409 25,414 3,063,912 Grand Total $ 512,755 $ 3,979,919 $ 1,439,804 $ 355,043 $ 221,746 $ 72,477 $ 107,184 $ 6,688,928 Home Equity Loans and Lines of Credit September 30, 2015 N/A LTV<=7" id="sjs-B4">NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) Overall The Company's loans are reported at their outstanding principal balances net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs and unamortized premiums or discounts. The Company maintains an ACL to provide for losses inherent in its portfolios. Certain loans are pledged as collateral for borrowings, securitizations, or special purpose entities ("SPEs"). These loans totaled $58.6 billion at September 30, 2015 and $51.7 billion at December 31, 2014 . Loans that the Company intends to sell are classified as loans held-for-sale ("LHFS"). The LHFS portfolio balance at September 30, 2015 was $3.0 billion , compared to $260.3 million at December 31, 2014 . LHFS that are residential mortgage portfolio are reported at fair value. All other LHFS are accounted for at the lower of cost or fair value. For a discussion on the valuation of LHFS at fair value, see Note 16 to the Condensed Consolidated Financial Statements. As of September 30, 2015 , the Company determined that it no longer intended to hold certain personal lending assets at SCUSA for investment. As a result, $1.9 billion of personal unsecured loans were transferred to held for sale during the third quarter. In connection with this reclassification to held for sale, the Company adjusted the credit loss allowance associated with SCUSA's personal loan portfolio to value the portfolio at the lower of cost or market, and the adjusted credit loss allowance was released through the provision for credit losses; reflected as a charge-off against the credit loss allowance. Future loan originations and purchases under SCUSA’s personal lending platform will also be classified as held for sale. During the third quarter of 2015, the Company repurchased a portfolio of performing multi-family loans from FNMA for $1.4 billion . Interest income on loans is accrued based on the contractual interest rate and the principal amount outstanding, except for those loans classified as non-accrual. At September 30, 2015 and December 31, 2014 , accrued interest receivable on the Company's loans was $521.9 million and $492.7 million , respectively. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Loan and Lease Portfolio Composition The following table presents the composition of the gross loans held for investment by type of loan and by fixed and variable rates at the dates indicated: September 30, 2015 December 31, 2014 Amount Percent Amount Percent (in thousands) Commercial loans held for investment: Commercial real estate loans $ 8,495,182 10.8 % $ 8,739,233 11.5 % Commercial and industrial loans 19,363,022 24.6 % 17,092,828 22.5 % Multi-family loans 9,600,527 12.2 % 8,705,890 11.5 % Other commercial (2) 2,366,742 3.0 % 2,084,232 2.7 % Total commercial loans held for investment 39,825,473 50.6 % 36,622,183 48.2 % Consumer loans secured by real estate: Residential mortgages 6,408,164 8.2 % 6,773,575 8.9 % Home equity loans and lines of credit 6,159,536 7.8 % 6,211,298 8.2 % Total consumer loans secured by real estate 12,567,700 16.0 % 12,984,873 17.1 % Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated 17,573,943 22.4 % 9,935,503 13.1 % Retail installment contracts and auto loans - purchased 6,888,523 8.8 % 12,449,526 16.4 % Personal unsecured loans 644,548 0.8 % 2,696,820 3.5 % Other consumer (3) 1,083,011 1.4 % 1,306,562 1.7 % Total consumer loans 38,757,725 49.4 % 39,373,284 51.8 % Total loans held for investment (1) $ 78,583,198 100.0 % $ 75,995,467 100.0 % Total loans held for investment: Fixed rate $ 46,704,335 59.4 % $ 45,109,343 59.4 % Variable rate 31,878,863 40.6 % 30,886,124 40.6 % Total loans held for investment (1) $ 78,583,198 100.0 % $ 75,995,467 100.0 % (1) Total loans held for investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. These items resulted in a net decrease in loan balances of $269.9 million as of September 30, 2015 and a net decrease in loan balances of $1.5 billion as of December 31, 2014 , respectively. (2) Other commercial primarily includes commercial equipment vehicle funding ("CEVF") leveraged leases and loans. (3) Other consumer primarily includes recreational vehicles ("RV") and marine loans. Portfolio segments and classes GAAP requires that entities disclose information about the credit quality of their financing receivables at disaggregated levels, specifically defined as “portfolio segments” and “classes,” based on management’s systematic methodology for determining the ACL. For this, compared to the financial statement categorization of loans, the Company utilizes an alternate categorization to model and calculate the ACL and track the credit quality, delinquency and impairment status of the underlying loan populations. In disaggregating its financing receivables portfolio, the Company’s methodology begins with the commercial and consumer segments. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) The commercial segmentation reflects line of business distinctions. The three commercial real estate lines of business distinctions include “Corporate banking,” which includes commercial and industrial owner-occupied real estate, “Middle market commercial real estate,” which represents the portfolio of specialized lending for investment real estate, including financing for continuing care retirement communities and “Santander real estate capital”, which is the commercial real estate portfolio of the specialized lending group. "Commercial and industrial" loans includes non-real estate-related commercial and industrial loans. "Multi-family" represents loans for multi-family residential housing units. “Other commercial” primarily represents the CEVF business. The following table reconciles the Company's recorded investment classified by its major loan classifications to its commercial loan classifications utilized in its determination of the allowance for loan losses and other credit quality disclosures at September 30, 2015 and December 31, 2014 , respectively: Commercial Portfolio Segment (2) Major Loan Classifications (1) September 30, 2015 December 31, 2014 (in thousands) Commercial loans held for investment: Commercial real estate: Corporate Banking $ 2,967,780 $ 3,218,150 Middle Markets Real Estate 3,965,173 3,743,099 Santander Real Estate Capital 1,562,229 1,777,984 Total commercial real estate 8,495,182 8,739,233 Commercial and industrial loans (3) 19,363,022 17,092,828 Multi-family loans 9,600,527 8,705,890 Other commercial 2,366,742 2,084,232 Total commercial loans held for investment $ 39,825,473 $ 36,622,183 (1) These represent the Company's loan categories based on the SEC's Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its allowance for loan and lease losses in accordance with ASC 310-10. (3) Excludes zero and $19.1 million of Commercial and Industrial LHFS at September 30, 2015 and December 31, 2014 , respectively. The Company's portfolio segments are substantially the same as its financial statement categorization of loans for the consumer loan populations. “Residential mortgages” includes mortgages on residential property including single family and 1-4 family units. "Home equity loans and lines of credit” include all organic home equity contracts and purchased home equity portfolios. "Retail installment contracts and auto loans" includes the Company's direct automobile loan portfolios, but excludes RV and marine retail installment contracts. "Personal unsecured loans" includes personal revolving loans and credit cards. “Other consumer” includes an acquired portfolio of marine and RV contracts as well as indirect auto loans. In accordance with the Company's accounting policy when establishing the collective ACL for originated loans, the Company's estimate of losses on recorded investment includes the estimate of the related net discount balance that is expected at the time of charge-off, while it considers the entire discount for loan portfolios purchased at a discount as available to absorb the credit losses when determining the ACL specific to these portfolios. This accounting policy is not applicable for the purchased loan portfolios acquired with evidence of credit deterioration, on which we elected to apply the FVO. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Portfolio Segment (2) Major Loan Classifications (1) September 30, 2015 December 31, 2014 (in thousands) Consumer loans secured by real estate: Residential mortgages (3) $ 6,408,164 $ 6,773,575 Home equity loans and lines of credit 6,159,536 6,211,298 Total consumer loans secured by real estate 12,567,700 12,984,873 Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated (4) 17,573,943 9,935,503 Retail installment contracts and auto loans - purchased 6,888,523 12,449,526 Personal unsecured loans (5) 644,548 2,696,820 Other consumer 1,083,011 1,306,562 Total consumer loans held for investment $ 38,757,725 $ 39,373,284 (1) These represent the Company's loan categories based on the SEC's Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its allowance for loan and lease losses in accordance with ASC 310-10. (3) Home mortgages exclude $280.8 million and $195.7 million of LHFS at September 30, 2015 and December 31, 2014 , respectively. (4) Retail installment contracts and auto loans exclude $825.8 million and $45.4 million of LHFS at September 30, 2015 and December 31, 2014 , respectively. (5) Personal unsecured loans exclude $1.9 billion of LHFS at September 30, 2015 . There were no personal unsecured loans HFS at December 31, 2014 . The RICs and auto loan portfolio is comprised of: (1) RICs originated by SC prior to the Change in Control, (2) RICs originated by SC after the Change in Control, and (3) auto loans originated by SBNA. The composition of the portfolio segment is as follows: September 30, 2015 December 31, 2014 (in thousands) RICs - Purchased: UPB (1) $ 7,577,731 $ 13,366,188 UPB - FVO (2) 195,909 716,923 Total UPB 7,773,640 14,083,111 Purchase Marks (3) (885,117 ) (1,633,585 ) Total RICs - Purchased 6,888,523 12,449,526 RICs - Originated: UPB (1) 18,110,589 10,273,931 Net discount (555,952 ) (367,369 ) Total RICs - Originated 17,554,637 9,906,562 SBNA auto loans 19,306 28,941 Total RICs originated post-change in control 17,573,943 9,935,503 Total RICs and auto loans $ 24,462,466 $ 22,385,029 (1) UPB does not include amounts related to the loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of these receivables. (2) The Company elected to account for these loans, which were acquired with evidence of credit deterioration, under the FVO. (3) Includes purchase marks of $42.3 million and $130.2 million as of September 30, 2015 and December 31, 2014, respectively, related to purchased loan portfolios on which we elected to apply the FVO. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) ACL Rollforward by Portfolio Segment The activity in the ACL by portfolio segment for the three-month and nine-month periods ended September 30, 2015 and 2014 was as follows: Three-Month Period Ended September 30, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 402,695 $ 2,360,366 $ 71,592 $ 2,834,653 Provision for/ (Recovery of) loan losses 26,337 937,086 (26,258 ) 937,165 Charge-offs (45,467 ) (1,480,645 ) — (1,526,112 ) Recoveries 25,091 496,347 — 521,438 Charge-offs, net of recoveries (20,376 ) (984,298 ) — (1,004,674 ) Allowance for loan and lease losses, end of period $ 408,656 $ 2,313,154 $ 45,334 $ 2,767,144 Reserve for unfunded lending commitments, beginning of period $ 137,641 $ — $ — $ 137,641 Provision for unfunded lending commitments — — — — Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 137,641 — — 137,641 Total allowance for credit losses, end of period $ 546,297 $ 2,313,154 $ 45,334 $ 2,904,785 Nine-Month Period Ended September 30, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan losses, beginning of period $ 401,553 $ 1,267,025 $ 33,024 $ 1,701,602 Provision for/ (Recovery of) loan losses 64,491 2,874,254 12,310 2,951,055 Other (1) — (27,117 ) — (27,117 ) Charge-offs (96,652 ) (3,302,922 ) — (3,399,574 ) Recoveries 39,264 1,501,914 — 1,541,178 Charge-offs, net of recoveries (57,388 ) (1,801,008 ) — (1,858,396 ) Allowance for loan and lease losses, end of period $ 408,656 $ 2,313,154 $ 45,334 $ 2,767,144 Reserve for unfunded lending commitments, beginning of period $ 132,641 $ — $ — $ 132,641 Provision for unfunded lending commitments 5,000 — — 5,000 Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 137,641 — — 137,641 Total allowance for credit losses, end of period $ 546,297 $ 2,313,154 $ 45,334 $ 2,904,785 Ending balance, individually evaluated for impairment (2) $ 57,517 $ 745,671 $ — $ 803,188 Ending balance, collectively evaluated for impairment 351,139 1,567,483 45,334 1,963,956 Financing receivables: Ending balance $ 39,825,473 $ 41,748,433 $ — $ 81,573,906 Ending balance, evaluated under the fair value option or lower of cost or fair value — 3,364,866 — 3,364,866 Ending balance, individually evaluated for impairment (2) 367,865 3,771,421 — 4,139,286 Ending balance, collectively evaluated for impairment 39,457,608 34,612,146 — 74,069,754 (1) The "Other" amount represents the impact on the allowance for loan and lease losses in connection with SCUSA classifying approximately $1.0 billion of retail installment contracts ("RICs") as held-for-sale during the first quarter of 2015. (2) Consumer loans individually evaluated for impairment consists of loans in TDR status NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three-Month Period Ended September 30, 2014 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 369,893 $ 888,761 $ 39,001 $ 1,297,655 Provision for / (Recovery of) loan losses 25,317 751,850 (10,504 ) 766,663 Other (1) — (61,220 ) — (61,220 ) Charge-offs (28,686 ) (973,284 ) — (1,001,970 ) Recoveries 8,844 408,754 — 417,598 Charge-offs, net of recoveries (19,842 ) (564,530 ) — (584,372 ) Allowance for loan and lease losses, end of period $ 375,368 $ 1,014,861 $ 28,497 $ 1,418,726 Reserve for unfunded lending commitments, beginning of period $ 170,274 $ — $ — $ 170,274 Provision for unfunded lending commitments (20,000 ) — — (20,000 ) Loss on unfunded lending commitments (633 ) — — (633 ) Reserve for unfunded lending commitments, end of period 149,641 — — 149,641 Total allowance for credit losses, end of period $ 525,009 $ 1,014,861 $ 28,497 $ 1,568,367 Nine-Month Period Ended September 30, 2014 Commercial Consumer Unallocated Total (in thousands) Allowance for loan losses, beginning of period $ 443,074 $ 363,647 $ 27,616 $ 834,337 Provision for / (Recovery of) loan losses (5,095 ) 1,703,103 881 1,698,889 Other (1) — (61,220 ) — (61,220 ) Charge-offs (81,163 ) (1,729,911 ) — (1,811,074 ) Recoveries 18,552 739,242 — 757,794 Charge-offs, net of recoveries (62,611 ) (990,669 ) — (1,053,280 ) Allowance for loan losses, end of period $ 375,368 $ 1,014,861 $ 28,497 $ 1,418,726 Reserve for unfunded lending commitments, beginning of period $ 220,000 $ — $ — $ 220,000 Provision for unfunded lending commitments (65,000 ) — — (65,000 ) Loss on unfunded lending commitments (5,359 ) — — (5,359 ) Reserve for unfunded lending commitments, end of period 149,641 — — 149,641 Total allowance for credit losses, end of period $ 525,009 $ 1,014,861 $ 28,497 $ 1,568,367 Ending balance, individually evaluated for impairment (2) $ 73,074 $ 33,513 $ — $ 106,587 Ending balance, collectively evaluated for impairment 302,294 981,348 28,497 1,312,139 Financing receivables: Ending balance $ 35,683,463 $ 39,093,619 $ — $ 74,777,082 Ending balance, evaluated under the fair value option or lower of cost or fair value (1) 19,167 1,284,403 — 1,303,570 Ending balance, individually evaluated for impairment (2) 503,098 1,075,907 — 1,579,005 Ending balance, collectively evaluated for impairment 35,161,198 36,733,309 — 71,894,507 (1) The "Other" amount represents the impact on the allowance for loan and lease losses in connection with the sale of approximately $484 million of troubled debt restructurings ("TDRs") and non-performing loans ("NPLs") classified as held-for-sale during the quarter ended September 30, 2014 . NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) The following table presents the activity in the Allowance for loan losses for the Retail Installment Contracts acquired ("Purchased") in the Change in Control and those originated by SC subsequent to the Change in Control. Three Month Period Ended September 30, 2015 Nine Month Period Ended September 30, 2015 Purchased Originated Total Purchased Originated Total (in thousands) (in thousands) Allowance for loan and lease losses, beginning of period 542,709 1,219,134 1,761,843 963 709,024 709,987 Provision for / (Release of) loan and lease losses 129,109 686,563 815,672 958,738 1,520,920 2,479,658 Other — — — (27,117 ) — (27,117 ) Charge-offs (328,624 ) (612,318 ) (940,942 ) (1,216,036 ) (1,268,524 ) (2,484,560 ) Recoveries 218,962 251,748 470,710 845,608 583,707 1,429,315 Charge-offs, net of recoveries (109,662 ) (360,570 ) (470,232 ) (370,428 ) (684,817 ) (1,055,245 ) Allowance for loan and lease losses, end of period 562,156 1,545,127 2,107,283 562,156 1,545,127 2,107,283 Three Month Period Ended September 30, 2014 Nine Month Period Ended September 30, 2014 Purchased Originated Total Purchased Originated Total (in thousands) (in thousands) Allowance for loan and lease losses, beginning of period $ — $ 394,736 $ 394,736 $ — $ — $ — Provision for / (Release of) loan and lease losses 240,616 286,784 527,400 540,855 697,158 1,238,013 Other (9,887 ) — (9,887 ) (9,887 ) — (9,887 ) Charge-offs (557,995 ) (168,008 ) (726,003 ) (1,149,494 ) (189,589 ) (1,339,083 ) Recoveries 327,267 45,716 372,983 618,527 51,659 670,186 Charge-offs, net of recoveries (230,728 ) (122,292 ) (353,020 ) (530,967 ) (137,930 ) (668,897 ) Allowance for loan and lease losses, end of period $ 1 $ 559,228 $ 559,229 $ 1 $ 559,228 $ 559,229 NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued) Non-accrual loans by Class of Financing Receivable The recorded investment in non-accrual loans disaggregated by class of financing receivables is summarized as follows: September 30, 2015 December 31, 2014 (in thousands) Non-accrual loans: Commercial: Commercial real estate: Corporate banking $ 60,450 $ 90,579 Middle market commercial real estate 38,605 71,398 Santander real estate capital 3,505 5,803 Commercial and industrial 65,901 54,567 Multi-family 7,319 9,639 Other commercial 4,365 4,136 Total commercial loans 180,145 236,122 Consumer: Residential mortgages 184,828 231,316 Home equity loans and lines of credit 126,628 142,026 Retail installment contracts and auto loans - originated 538,929 227,132 Retail installment contracts and auto loans - purchased 412,175 755,590 Personal unsecured loans 12,683 14,007 Other consumer 31,242 22,095 Total consumer loans 1,306,485 1,392,166 Total non-accrual loans 1,486,630 1,628,288 Other real estate owned ("OREO") 40,692 65,051 Repossessed vehicles 154,057 126,309 Foreclosed and other repossessed assets 377 11,375 Total OREO and other repossessed assets 195,126 202,735 Total non-performing assets $ 1,681,756 $ 1,831,023 NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Age Analysis of Past Due Loans The age of recorded investments in past due loans and accruing loans greater than 90 days past due disaggregated by class of financing receivables is summarized as follows: As of September 30, 2015 30-89 Greater Total Current Total (1) Recorded Investment (in thousands) Commercial: Commercial real estate: Corporate banking $ 23,789 $ 22,015 $ 45,804 $ 2,921,976 $ 2,967,780 $ — Middle market commercial real estate 3,964 21,190 25,154 3,940,019 3,965,173 — Santander real estate capital 659 — 659 1,561,570 1,562,229 — Commercial and industrial 28,408 38,771 67,179 19,295,843 19,363,022 — Multi-family 21,830 635 22,465 9,578,062 9,600,527 — Other commercial 7,656 3,496 11,152 2,355,590 2,366,742 — Consumer: Residential mortgages 144,232 155,947 300,179 6,388,749 6,688,928 — Home equity loans and lines of credit 31,268 80,107 111,375 6,048,161 6,159,536 — Retail installment contracts and auto loans - originated 1,704,700 168,183 1,872,883 16,526,813 18,399,696 — Retail installment contracts and auto loans - purchased 1,264,913 111,737 1,376,650 5,511,873 6,888,523 — Personal unsecured loans 92,965 86,739 179,704 2,349,035 2,528,739 77,528 Other consumer 40,476 40,102 80,578 1,002,433 1,083,011 — Total $ 3,364,860 $ 728,922 $ 4,093,782 $ 77,480,124 $ 81,573,906 $ 77,528 (1) Financing receivables include LHFS. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) As of December 31, 2014 30-89 Greater Total Current Total (1) Recorded (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,363 $ 37,708 $ 56,071 $ 3,162,079 $ 3,218,150 $ — Middle market commercial real estate 3,179 33,604 36,783 3,706,316 3,743,099 — Santander real estate capital 4,329 2,115 6,444 1,771,540 1,777,984 — Commercial and industrial 26,778 23,434 50,212 17,061,710 17,111,922 — Multi-family 13,810 5,512 19,322 8,686,568 8,705,890 — Other commercial 5,054 1,245 6,299 2,077,933 2,084,232 — Consumer: Residential mortgages 165,270 200,818 366,088 6,603,221 6,969,309 — Home equity loans and lines of credit 36,074 86,749 122,823 6,088,475 6,211,298 — Retail installment contracts and auto loans - originated 811,912 65,703 877,615 9,103,311 9,980,926 — Retail installment contracts and auto loans - purchased 2,317,941 202,889 2,520,830 9,928,697 12,449,527 — Personal unsecured loans 92,905 111,917 204,822 2,491,998 2,696,820 93,152 Other consumer 56,708 31,745 88,453 1,218,109 1,306,562 — Total $ 3,552,323 $ 803,439 $ 4,355,762 $ 71,899,957 $ 76,255,719 $ 93,152 (1) Financing receivables include LHFS. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Impaired Loans by Class of Financing Receivable Impaired loans are generally defined as all TDRs plus commercial non-accrual loans in excess of $1.0 million . Impaired loans disaggregated by class of financing receivables are summarized as follows: September 30, 2015 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 40,866 $ 43,717 $ — $ 39,301 Middle market commercial real estate 79,320 124,268 — 103,556 Santander real estate capital 2,860 2,860 — 2,921 Commercial and industrial 2,721 4,144 — 5,323 Multi-family 4,834 5,864 — 13,663 Other commercial 2,604 2,622 — 1,346 Consumer: Residential mortgages 20,040 20,040 — 21,724 Home equity loans and lines of credit 22,999 22,999 — 25,115 Retail installment contracts and auto loans - originated — — — — Retail installment contracts and auto loans - purchased 92,073 115,026 — 939,599 Personal unsecured loans (2) 14,635 14,635 — 7,614 Other consumer 13,558 16,657 — 9,579 With an allowance recorded: Commercial: Commercial real estate: Corporate banking 33,744 42,396 10,664 46,847 Middle market commercial real estate 36,936 42,635 10,656 48,517 Santander real estate capital — — — 1,939 Commercial and industrial 80,420 89,708 35,285 72,302 Multi-family 5,762 5,767 463 5,871 Other commercial 2,429 2,527 449 2,181 Consumer: Residential mortgages 139,279 164,278 28,812 135,046 Home equity loans and lines of credit 62,328 73,254 4,832 61,230 Retail installment contracts and auto loans – Originated 916,385 941,146 293,459 486,449 Retail installment contracts and auto loans - purchased 2,471,369 2,793,045 414,352 1,235,685 Personal unsecured loans 1,660 1,950 496 9,068 Other consumer 15,877 20,639 3,720 16,086 Total: Commercial $ 292,496 $ 366,508 $ 57,517 $ 343,767 Consumer 3,770,203 4,183,669 745,671 2,947,195 Total $ 4,062,699 $ 4,550,177 $ 803,188 $ 3,290,962 (1) Recorded investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. (2) Includes LHFS. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) The Company recognized interest income, not including the impact of purchase accounting adjustments, of $187.9 million for the nine-month period ended September 30, 2015 on approximately $3.4 billion of TDRs that were in performing status as of September 30, 2015 . December 31, 2014 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 37,735 $ 40,453 $ — $ 40,610 Middle market commercial real estate 127,792 172,766 — 114,465 Santander real estate capital 2,982 2,982 — 1,867 Commercial and industrial 7,925 17,732 — 10,529 Multi-family 22,492 22,492 — 24,762 Other commercial 88 88 — 44 Consumer: Residential mortgages 23,408 23,408 — 57,776 Home equity loans and lines of credit 27,230 27,230 — 29,152 Retail installment contracts and auto loans - originated — — — — Retail installment contracts and auto loans - purchased 1,787,124 2,040,785 — 893,563 Personal unsecured loans 592 592 — 296 Other consumer 5,600 5,600 — 6,973 With an allowance recorded: Commercial: Corporate banking 59,950 66,328 25,322 56,856 Middle market commercial real estate 60,098 66,024 17,004 89,472 Santander real estate capital 3,878 6,356 364 6,630 Commercial and industrial 64,183 72,488 35,848 82,204 Multi-family 5,979 7,076 1,475 8,699 Other commercial 1,932 1,995 688 1,055 Consumer: Residential mortgages 130,813 156,669 23,628 339,071 Home equity loans and lines of credit 60,132 69,374 5,002 57,516 Retail installment contracts and auto loans - originated 56,513 58,229 16,997 28,258 Retail installment contracts and auto loans - purchased — — — — Personal unsecured loans 16,476 16,815 6,508 9,506 Other consumer 16,295 22,812 3,264 16,889 Total: Commercial $ 395,034 $ 476,780 $ 80,701 $ 437,193 Consumer 2,124,183 2,421,514 55,399 1,439,000 Total $ 2,519,217 $ 2,898,294 $ 136,100 $ 1,876,193 (1) Recorded investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. The Company recognized interest income of $115.5 million for the year ended December 31, 2014 on approximately $2.0 billion of TDRs that were returned to performing status as of December 31, 2014 . NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Commercial Lending Asset Quality Indicators Commercial credit quality disaggregated by class of financing receivables is summarized according to standard regulatory classifications as follows: PASS. Asset is well-protected by the current net worth and paying capacity of the obligor or guarantors, if any, or by the fair value less costs to acquire and sell any underlying collateral in a timely manner. SPECIAL MENTION. Asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for an asset at some future date. Special Mention assets are not adversely classified. SUBSTANDARD. Asset is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. A well-defined weakness or weaknesses exist that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. DOUBTFUL. Exhibits the inherent weaknesses of a substandard credit. Additional characteristics exist that make collection or liquidation in full highly questionable and improbable, on the basis of currently known facts, conditions and values. Possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the credit, an estimated loss cannot yet be determined. LOSS. Credit is considered uncollectible and of such little value that it does not warrant consideration as an active asset. There may be some recovery or salvage value, but there is doubt as to whether, how much or when the recovery would occur. Commercial loan credit quality indicators by class of financing receivables are summarized as follows: Commercial Real Estate September 30, 2015 Corporate Middle Santander Commercial and industrial Multi-family Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,623,982 $ 3,765,920 $ 1,392,754 $ 18,529,081 $ 9,333,083 $ 2,320,236 $ 37,965,056 Special Mention 118,536 48,842 121,441 374,448 195,710 29,950 888,927 Substandard 215,912 127,213 47,375 429,623 71,301 16,251 907,675 Doubtful 9,350 23,198 659 29,870 433 305 63,815 Total commercial loans $ 2,967,780 $ 3,965,173 $ 1,562,229 $ 19,363,022 $ 9,600,527 $ 2,366,742 $ 39,825,473 (1) Financing receivables include LHFS. Commercial Real Estate December 31, 2014 Corporate Middle Santander Commercial and industrial Multi-family Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,910,957 $ 3,472,448 $ 1,564,983 $ 16,495,836 $ 8,533,427 $ 2,064,947 $ 35,042,598 Special Mention 83,122 61,166 133,950 237,331 131,677 8,475 655,721 Substandard 192,911 174,882 76,232 358,782 40,355 10,311 853,473 Doubtful 31,160 34,603 2,819 19,973 431 499 89,485 Total commercial loans $ 3,218,150 $ 3,743,099 $ 1,777,984 $ 17,111,922 $ 8,705,890 $ 2,084,232 $ 36,641,277 (1) Financing receivables include LHFS. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Lending Asset Quality Indicators-Credit Score Consumer financing receivables for which credit score is a core component of the allowance model are summarized by credit score as follows: September 30, 2015 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Personal unsecured loans balance (3) Percent (in thousands) <600 $ 12,961,005 51.3 % $ 405,059 16.0 % 600-639 4,105,660 16.2 % 406,943 16.1 % >=640 3,059,119 12.1 % 1,071,993 42.4 % N/A (1) 5,162,435 20.4 % 644,744 25.5 % Total $ 25,288,219 100.0 % $ 2,528,739 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs and Personal unsecured loans include $825.8 million and $1.9 billion , respectively of LHFS at September 30, 2015 that do not have an allowance. December 31, 2014 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Personal unsecured loans balance Percent (in thousands) <600 $ 11,669,878 52.0 % $ 491,984 18.2 % 600-639 4,046,452 18.0 % 446,995 16.6 % 640-679 4,046,452 18.0 % 1,163,203 43.1 % 680-719 — — % 64,610 2.4 % 720-759 — — % 72,235 2.7 % >=760 — — % 78,234 2.9 % N/A (1) 2,667,671 12.0 % 379,559 14.1 % Total $ 22,430,453 100.0 % $ 2,696,820 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs include $45.4 million of LHFS at December 31, 2014 that do not have an allowance. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Lending Asset Quality Indicators-FICO and Combined Loan-to-Value ("CLTV") Residential mortgage and home equity financing receivables by CLTV range are summarized as follows: Residential Mortgages September 30, 2015 N/A LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total (in thousands) N/A $ 511,932 $ 12,469 $ 1,911 $ — $ — $ — $ — $ 526,312 <600 133 235,909 74,340 32,482 17,798 10,463 9,814 380,939 600-639 1 163,673 47,512 24,478 16,017 5,629 8,704 266,014 640-679 237 259,330 84,767 35,774 29,088 10,259 13,600 433,055 680-719 21 487,624 183,363 65,314 45,454 11,277 27,042 820,095 720-759 344 711,855 322,421 76,584 52,347 12,440 22,610 1,198,601 >=760 87 2,109,059 725,490 120,411 61,042 22,409 25,414 3,063,912 Grand Total $ 512,755 $ 3,979,919 $ 1,439,804 $ 355,043 $ 221,746 $ 72,477 $ 107,184 $ 6,688,928 Home Equity Loans and Lines of Credit September 30, 2015 N/A LTV<=7 |
LEASED VEHICLES, NET (As Restat
LEASED VEHICLES, NET (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
LEASED VEHICLES, NET (As Restated) | NOTE 6. LEASED VEHICLES, NET (As Restated) The Company has operating leases that are included in the Company's Condensed Consolidated Balance Sheets as Leased vehicles, net. The leased vehicle portfolio consists primarily of leases originated under a ten -year private label financing agreement signed by SCUSA with the Chrysler Group LLC (the "Chrysler Group") to be a preferred lender (the "Chrysler Agreement"). Leased vehicles, net consisted of the following as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Leased vehicles $ 10,645,278 $ 8,255,912 Origination fees and other costs 30,740 20,628 Manufacturer subvention payments (1,046,555 ) (834,669 ) 9,629,463 7,441,871 Less: accumulated depreciation (1,557,268 ) (817,901 ) Total Leased Vehicles, net $ 8,072,195 $ 6,623,970 NOTE 6. LEASED VEHICLES, NET (As Restated) (continued) For the nine-month period ended September 30, 2015 , the Company, executed bulk sales of leases originated under the Chrysler Capital program ("Chrysler Capital"), the trade name used in providing services under the ten -year private label financing agreement SCUSA signed with the Chrysler Group, with depreciated net capitalized costs of $1.3 billion , respectively, and a net book value of $1.2 billion , to a third party. There were no bulk sales of leases during the three-month period ended September 30, 2015 . The bulk sales agreements included certain provisions under which SCUSA agreed to share in residual losses for lease terminations with losses over a specific percentage threshold. SCUSA retained servicing on the leases sold. Due to the accelerated depreciation permitted for tax purposes, these sales generated large taxable gains that SCUSA has deferred through a qualified like-kind exchange program. In order to qualify for this deferral, the proceeds from the sales (along with the proceeds from recent lease terminations for which SCUSA also intends to defer the taxable gain) are held in a qualified exchange account, which is classified as restricted cash, until reinvested in new lease originations. Any taxable gains that do not qualify for deferral will be recognized upon expiration of the reinvestment period. The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of September 30, 2015 (in thousands): As Restated Remainder of 2015 $ 363,333 2016 1,319,342 2017 800,873 2018 183,908 2019 840 Thereafter — Total $ 2,668,296 |
VARIABLE INTEREST ENTITIES (As
VARIABLE INTEREST ENTITIES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity and Securitizations [Abstract] | |
VARIABLE INTEREST ENTITIES (As Restated) | NOTE 7. VARIABLE INTEREST ENTITIES (As Restated) The Company transfers retail installment contracts and leases into newly-formed Trusts that then issue one or more classes of notes payable backed by collateral. The Company’s continuing involvement with the Trusts is in the form of servicing assets held by the Trusts and, generally, through holding residual interests in the Trusts. These transactions are structured without recourse. The Trusts are considered VIEs under GAAP and, when the Company holds the residual interest, are consolidated because the Company has: (a) power over the significant activities of the entity as servicer of its financial assets and (b) residual interest and, in some cases of debt securities held by the Company, an obligation to absorb losses or the right to receive benefits from the VIE which are potentially significant to the VIE. When the Company does not retain any debt or equity interests in its securitizations or subsequently sells such interests it records these transactions as sales of the associated retail installment contracts. Revolving credit facilities generally also utilize Trusts that are considered VIEs. The collateral, borrowings under credit facilities and securitization notes payable of the Company's consolidated VIEs remain on the Company's Condensed Consolidated Balance Sheets. The Company recognizes finance charges and fee income on the retail installment contracts and leased vehicles and interest expense on the debt, and records a provision for loan losses to cover probable inherent losses on the contracts. All of the Trusts are separate legal entities and the collateral and other assets held by these subsidiaries are owned by them and not available to other creditors. NOTE 7. VARIABLE INTEREST ENTITIES (As Restated) (continued) SCUSA also uses a titling trust to originate and hold its leased vehicles and the associated leases, in order to facilitate the pledging of leases to financing facilities or the sale of leases to other parties without incurring the costs and administrative burden of retitling the lease vehicles. This titling trust is considered a VIE. On-balance sheet variable interest entities The following table summarizes the assets and liabilities related to the above mentioned VIEs that are included in the Company's Condensed Consolidated Financial Statements as of the date indicated: September 30, 2015 December 31, 2014 (in thousands) Assets Restricted cash $ 1,756,312 $ 1,626,257 Loans (1) 23,354,692 20,557,168 Leased vehicles, net 6,062,106 4,848,593 Various other assets 587,590 555,108 Total Assets $ 31,760,700 $ 27,587,126 Liabilities Notes payable $ 30,461,521 $ 27,892,669 Various other liabilities 83,815 55,795 Total Liabilities 30,545,336 27,948,464 (1) Includes $1.6 billion of RICs held for sale at September 30, 2015. The Company retains servicing responsibility for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in miscellaneous income. As of September 30, 2015 and December 31, 2014 , the Company was servicing $26.9 billion and $ 23.2 billion , respectively, of retail installment contracts that have been transferred to consolidated Trusts. The remainder of the Company’s retail installment contracts remains unpledged. Below is a summary of the cash flows received from the Trusts for the period indicated: Three-Month Period Nine-Month Period Period from January 28, 2014 to September 30, 2015 2014 2015 2014 (in thousands) Receivables securitized $ 4,761,341 $ 3,166,785 $ 14,828,478 $ 10,499,489 Net proceeds from new securitizations 3,840,369 2,592,845 11,816,224 8,814,810 Cash received for servicing fees 182,960 164,325 518,563 417,838 Cash received upon release from reserved and restricted cash accounts — — — — Net distributions from Trusts 486,377 468,207 1,558,772 1,315,164 Total cash received from securitization trusts $ 4,509,706 $ 3,225,377 $ 13,893,559 $ 10,547,812 NOTE 7. VARIABLE INTEREST ENTITIES (As Restated) (continued) Off-balance sheet variable interest entities The Company has completed sales to VIEs that met sale accounting treatment in accordance with the applicable guidance. Due to the nature, purpose, and activity of these transactions, the Company determined for consolidation purposes that it either does not hold potentially significant variable interests or is not the primary beneficiary as a result of the Company's limited further involvement with the financial assets. For such transactions, the transferred financial assets are removed from the Company's Condensed Consolidated Balance Sheets. In certain situations, the Company remains the servicer of the financial assets and receives servicing fees that represent adequate compensation. The Company also recognizes a gain or loss in the amount of the difference between the cash proceeds and carrying value of the assets sold. During the three-month and nine-month periods ended September 30, 2015 , the Company sold zero and $ 768.6 million of gross RICs in an off-balance sheet securitization. For the three-month period ended September 30, 2014 , and the period from January 28, 2014 to September 30, 2014 , the company sold $1.0 billion and $1.8 billion of gross RICs in off-balance sheet securitizations, respectively, for a gain of approximately $39.1 million and $71.6 million , respectively. As of September 30, 2015 and December 31, 2014 , the Company was servicing $ 2.2 billion and $2.2 billion , respectively, of gross RICs that have been sold in the off-balance sheet Chrysler Capital securitizations. As of September 30, 2014 , the Company was servicing $2.4 billion of gross RICs that have been sold in these off-balance sheet Chrysler Capital securitizations. Other than repurchases of sold assets due to standard representations and warranties, the Company has no exposure to loss as a result of its involvement with these VIEs. A summary of the cash flows received from the off-balance Trusts for the periods indicated is as follows: Three-Month Period Nine-Month Period Period from January 28, 2014 to September 30, 2015 2014 2015 2014 (in thousands) Receivables securitized $ — $ 1,028,278 $ 768,561 $ 1,802,461 Net proceeds from new securitizations $ — $ 1,078,202 $ 785,983 $ 1,894,052 Cash received for servicing fees 5,955 3,925 17,578 10,897 Total cash received from securitization trusts $ 5,955 $ 1,082,127 $ 803,561 $ 1,904,949 During the three months ended September 30, 2015 , the Company settled a transaction to sell its residual interests in certain Trusts and certain retained bonds in those Trusts to an unrelated third party. The Company received cash proceeds of $661.7 million for the three-month period ended September 30, 2015 related to the sale of these residual interests and retained bonds. The Company retained an investment in the notes issued by one of these SDART trusts with a carrying value of $5.6 million , which also approximated fair value on the date of settlement. Each of these Trusts was previously determined to be a VIE. Prior to the sale of these residual interests, the associated Trusts were consolidated by the Company because the Company held a variable interest in each VIE and had determined that it was the primary beneficiary of the VIE. Although the Company will continue to service the loans in the associated Trusts and, therefore, will have the power to direct the activities that most significantly impact the economic performance of the Trusts, the Company concluded that it was no longer the primary beneficiary of the Trusts upon the sale of its residual interests. As a result, the Company deconsolidated the assets and liabilities of the corresponding Trusts upon their sale. Upon settlement of these transactions in the third quarter of 2015, the Company de-recognized $1.9 billion in assets and $1.2 billion in notes payable and other liabilities of the trust. During the three-month period ended September 30, 2015 , the Company received cash of $5.9 million for servicing fees from the related trusts that were de-consolidated. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES (As Restated) | NOTE 8. GOODWILL AND OTHER INTANGIBLES (As Restated) Goodwill The following table presents activity in the Company's goodwill by its reportable segments for the nine-month period ended September 30, 2015 : Retail Banking Auto Finance & Business Banking (2) Real Estate and Commercial Banking Global Corporate Banking (1) SCUSA Total (in thousands) Goodwill at December 31, 2014 $ 1,815,729 $ 71,522 $ 1,406,048 $ 131,130 $ 5,527,055 $ 8,951,484 Disposals during the period — — — — — Additions during the period — — — — — — Re-allocations during the period (265,553 ) 374,546 (108,993 ) — — — Goodwill at September 30, 2015 $ 1,550,176 $ 446,068 $ 1,297,055 $ 131,130 $ 5,527,055 $ 8,951,484 (1) The Global Corporate Banking ("GCB") was formerly designated as the Global Corporate Banking & Market & Large Corporate Banking segment and was renamed during the third quarter of 2015. (2) The Auto Finance & Business Banking was formerly designated as the Auto Finance and Alliances segment and was renamed during the third quarter of 2015. The Company evaluates goodwill for impairment at least annually, or more frequently as required by events and circumstances. For the purposes of testing goodwill for impairment, goodwill is assigned to reporting units, which are operating segments or one level below an operating segment, as of the acquisition date. The fair value of the Company's reporting unit is determined by using discounted cash flow ("DCF") and market comparability methodologies. The goodwill for the SCUSA reporting unit, as restated at December 31, 2014, reflects an increase of $59.5 million from the restatement as a result of the increased value of the SCUSA business at acquisition. In connection with these and other organizational changes discussed in Note 17, the Company engaged a valuation consultant to assist with the re-allocation of goodwill across its reporting units based on the fair value of the lines of business affected by the re-organization. The Company’s accounting policy provides that changes in segment reporting are point in time reporting events, which would only require (where practicable) a retrospective change in the segments’ financial information. Accordingly, this change does not impact the disclosure of the Company's goodwill by reportable segment within its consolidated financial statements for periods prior to the segment changes. NOTE 8. GOODWILL AND OTHER INTANGIBLES (As Restated) (continued) Other Intangible Assets The following table details amounts related to the Company's finite-lived and indefinite-lived intangible assets for the dates indicated. September 30, 2015 December 31, 2014 Net Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization (in thousands) Intangibles subject to amortization: Dealer networks $ 514,643 $ (65,357 ) $ 544,054 $ (35,946 ) Chrysler relationship 113,750 (25,000 ) 125,000 (13,750 ) Core deposit intangibles 1,830 (294,012 ) 7,779 (288,063 ) Other intangibles 6,234 (23,675 ) 8,655 (21,253 ) Total intangibles subject to amortization 636,457 (408,044 ) 685,488 (359,012 ) Intangibles not subject to amortization: Trade name 21,500 — 21,500 — Total Intangibles $ 657,957 $ (408,044 ) $ 706,988 $ (359,012 ) Amortization expense on intangible assets for the three-month and nine-month periods ended September 30, 2015 was $15.9 million and $49.0 million , respectively, compared to $17.7 million and $50.7 million for the corresponding periods in 2014 . During the fourth quarter of 2014, the Company's intangible impairment analysis concluded that the estimated fair value of the indefinite-lived trade name was lower than its carrying value. As a result, the Company recorded an impairment charge of $28.5 million . The estimated aggregate amortization expense related to intangibles for each of the five succeeding calendar years ending December 31 is: Year Calendar Year Amount Recorded To Date Remaining Amount To Record (in thousands) 2015 $ 64,432 $ 49,031 $ 15,401 2016 57,162 — 57,162 2017 55,055 — 55,055 2018 54,702 — 54,702 2019 54,501 — 54,501 Thereafter 399,636 — 399,636 |
OTHER ASSETS (As Restated)
OTHER ASSETS (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS (As Restated) | NOTE 9. OTHER ASSETS (As Restated) The following is a detail of items that comprise other assets at September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Income tax receivables $ 604,929 $ 938,222 Derivative assets at fair value 415,409 366,061 Other repossessed assets 154,434 136,305 MSRs, at fair value 143,535 145,047 Prepaid expenses 151,017 159,198 OREO 40,692 65,051 Miscellaneous assets and receivables 434,772 1,059,696 Total other assets $ 1,944,788 $ 2,869,580 Refer to Note 11 to the Condensed Consolidated Financial Statements for further details about derivative assets. Other repossessed assets primarily consist of SCUSA's vehicle inventory, which is obtained through repossession. OREO consists primarily of the Bank's foreclosed properties. Miscellaneous assets and receivables includes, but is not limited to, subvention receivables in connection with the Chrysler Agreement, investment and capital market receivables, and unapplied payments. Mortgage Servicing Rights The Company maintains an MSR asset for sold residential real estate loans serviced for others. At both September 30, 2015 and December 31, 2014 , the balance of these loans serviced for others was $15.9 billion . The Company accounts for residential MSRs using the FVO. Changes in fair value are recorded through the Condensed Consolidated Statements of Operations. The fair value of the MSRs at September 30, 2015 and December 31, 2014 was $143.5 million and $145.0 million , respectively. See further discussion on the valuation of the MSRs in Note 16 . As deemed appropriate, the Company economically hedges MSRs using interest rate swaps and forward contracts to purchase mortgage-backed securities ("MBS"). See further discussion on these derivative activities in Note 11 to these Condensed Consolidated Financial Statements. For the three-month and nine-month periods ended September 30, 2015 , the Company recorded net changes in the fair value of MSRs totaling $(13.5) million and 0.7 million , respectively, compared to $(2.7) million and $(14.1) million for the corresponding periods of 2014 . The MSR asset fair value decrease during the third quarter of 2015 was primarily the result of decreased interest rates. The following table presents a summary of year to date activity for the Company's residential MSRs that are included in the Condensed Consolidated Balance Sheet. Nine-Month Period Ended September 30, 2015 September 30, 2014 (in thousands) Fair value at beginning of period $ 145,047 $ 141,787 Mortgage servicing assets recognized 17,124 20,081 Principal reductions (19,385 ) (15,999 ) Change in fair value due to valuation assumptions 749 (14,078 ) Fair value at end of period $ 143,535 $ 131,791 Multi-family Historically, the Company originated and sold multi-family loans in the secondary market to FNMA while retaining servicing. The Company has not sold multi-family loans to FNMA since 2009. At September 30, 2015 and December 31, 2014 , the Company serviced $589.7 million and $2.6 billion , respectively, of loans for FNMA. NOTE 9. OTHER ASSETS (As Restated) (continued) Fee income and gain/loss on sale of mortgage loans Included in Mortgage banking income, net on the Condensed Consolidated Statement of Operations was mortgage servicing fee income of $11.1 million and $33.6 million for the three-month and nine-month periods ended September 30, 2015 , respectively, compared to $10.5 million and $31.7 million for the corresponding periods ended September 30, 2014 . The Company had gains on sales of mortgage loans of $5.2 million and $28.7 million for the three-month and nine-month periods ended September 30, 2015 , respectively, compared to gains of $90.9 million and $104.7 million for the corresponding periods ended September 30, 2014 . |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10. BORROWINGS Total borrowings and other debt obligations at September 30, 2015 were $48.4 billion , compared to $39.7 billion at December 31, 2014 . The Company's debt agreements impose certain limitations on dividends and other payments and transactions. The Company is currently in compliance with these limitations. Periodically, as part of the Company's wholesale funding management, it opportunistically repurchases outstanding borrowings in the open market and subsequently retires the obligations. The Company did no t repurchase any outstanding borrowings during the nine-month period ended September 30, 2015 . During the nine-month period ended September 30, 2014 , the Company repurchased $0.6 million of outstanding borrowings in the open market. On January 12, 2015, the Bank completed the offer and sale of $750.0 million in aggregate principal amount of its 2.00% Senior Notes due 2018 and $250.0 million in aggregate principal amount of its Senior Floating Rate Notes due 2018. On April 17, 2015, the Company completed the public offer and sale of $1.0 billion in aggregate principal amount of 2.65% Senior Notes due 2020. On July 17, 2015, the Company completed the public offer and sale of $1.1 billion aggregate principal amount of 4.50% Senior Notes due 2025. The following table presents information regarding the Holding Company's borrowings and other debt obligations at the dates indicated: September 30, 2015 December 31, 2014 Balance Effective Rate Balance Effective Rate (dollars in thousands) 3.00% senior notes, due September 2015 $ — — % $ 598,788 3.28 % 4.625% senior notes, due April 2016 475,467 4.85 % 474,718 4.85 % 3.45% senior notes, due August 2018 497,604 3.62 % 497,025 3.62 % 2.65% senior notes, due April 2020 992,211 2.83 % — — % 4.50% senior notes, due July 2025 1,093,824 4.57 % — — % Junior subordinated debentures - Capital Trust VI, due June 2036 69,768 7.91 % 69,751 7.91 % Common securities - Capital Trust VI 10,000 7.91 % 10,000 7.91 % Junior subordinated debentures - Capital Trust IX, due July 2036 149,397 2.09 % 149,375 2.04 % Common securities - Capital Trust IX 4,640 2.09 % 4,640 2.04 % Total holding company borrowings and other debt obligations $ 3,292,911 3.91 % $ 1,804,297 3.89 % NOTE 10. BORROWINGS (continued) The following table presents information regarding the Bank's borrowings and other debt obligations at the dates indicated: September 30, 2015 December 31, 2014 Balance Effective Rate Balance Effective Rate (dollars in thousands) 2.00% senior notes, due January 2018 $ 745,485 2.27 % $ — — % Senior notes, due January 2018 (1) 249,187 1.31 % — — % 8.750% subordinated debentures, due May 2018 498,008 8.92 % 497,530 8.92 % FHLB advances, maturing through August 2018 13,335,000 1.36 % 9,455,000 2.06 % Subordinated term loan, due February 2019 130,678 6.15 % 139,180 6.00 % REIT (2) preferred, due May 2020 154,550 13.54 % 153,417 13.64 % Subordinated term loan, due August 2022 30,867 7.89 % 31,428 7.77 % Total Bank borrowings and other debt obligations $ 15,143,775 1.83 % $ 10,276,555 2.64 % (1) These notes will bear interest at a rate equal to the three-month London Interbank Offered Rate ("LIBOR") plus 93 basis points per annum. (2) Real estate investment trust ("REIT") Revolving Credit Facilities The following tables present information regarding SCUSA's credit facilities as of September 30, 2015 and December 31, 2014 : September 30, 2015 Balance Effective Rate Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 698,715 1.26 % $ 1,001,601 $ 39,046 Warehouse line, maturing on various dates (2) 1,087,977 1.36 % 1,565,626 55,126 Warehouse line, due October 2015 (3) 199,680 2.10 % 261,042 9,433 Warehouse line, due June 2016 397,021 1.18 % 544,546 — Warehouse line, due November 2016 (4) 175,000 1.76 % — — Warehouse line, due November 2016 (4) 250,000 1.76 % — 2,501 Warehouse line, due March 2017 510,899 0.94 % 752,083 22,528 Warehouse line, due July 2017 (5) 874,320 1.18 % 1,006,388 34,531 Warehouse line, due July 2017 (6) 1,608,643 1.17 % 2,481,681 30,818 Repurchase facility, due December 2015 (7) 851,929 1.87 % 1,966 37,844 Line of credit with related party, due December 2016 (8) 500,000 2.51 % — — Line of credit with related party, due December 2016 (8) 1,750,000 2.48 % — — Line of credit with related party, due December 2018 (8) 975,000 2.89 % — — Total SCUSA revolving credit facilities $ 9,879,184 1.76 % $ 7,614,933 $ 231,827 (1) Half of the outstanding balance on this facility matures in March 2016 and half matures in March 2017. (2) In December 2016, $500.0 million of the total revolving commitment under this warehouse line will expire, at which time any utilized balance attributable to that portion of the commitment will become an amortizing obligation; the remainder of the commitment of $2.0 billion matures in June 2017. (3) This line is held exclusively for personal term loans. On October 26, 2015, the maturity date for this warehouse line commitment was extended to November 9, 2015. (4) These lines are collateralized by residuals retained by SCUSA. (5) This line is held exclusively for financing Chrysler loans. (6) This line is held exclusively for financing Chrysler leases. (7) The repurchase facility is collateralized by securitization notes payable retained by SCUSA. No portion of this facility is unsecured. This facility has rolling 30 -day and 90 -day maturities. (8) These lines are also collateralized by securitization notes payable and residuals retained by SCUSA. As of September 30, 2015 , $2.5 billion of the aggregate outstanding balances on these credit facilities was unsecured. NOTE 10. BORROWINGS (continued) December 31, 2014 Balance Effective Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 397,452 1.26 % $ 589,529 $ 20,661 Warehouse line, due March 2015 (2) 250,594 0.98 % — — Warehouse line, due June 2015 243,736 1.17 % 344,822 — Warehouse line, due September 2015 (3) 199,980 1.96 % 351,755 13,169 Warehouse line, due December 2015 468,565 0.93 % 641,709 16,467 Warehouse line, due June 2016 (4) 2,201,511 0.98 % 3,249,263 65,414 Warehouse line, due June 2016 1,051,777 1.06 % 1,481,135 28,316 Warehouse line, due October 2016 (3) 240,487 2.02 % 299,195 17,143 Warehouse line, due November 2016 (5) 175,000 1.71 % — — Warehouse line, due November 2016 (5) 250,000 1.71 % — 2,500 Repurchase facility, maturing on various dates (6) 923,225 1.63 % — 34,184 Line of credit with related party, due December 2016 (7) 500,000 2.46 % 1,340 — Line of credit with related party, due December 2016 (7) 1,750,000 2.33 % — — Line of credit with related party, due December 2018 (7) 1,140,000 2.85 % 9,701 — Total SCUSA revolving credit facilities $ 9,792,327 1.68 % $ 6,968,449 $ 197,854 (1) Half of the outstanding balance on this facility had maturity dates in March 2015 and half matures in March 2016. (2) This line is collateralized by securitization notes payable retained by SCUSA. (3) These lines are held exclusively for personal consumer term loans. (4) This line is held exclusively for Chrysler Capital retail loan and lease financing. (5) These lines are collateralized by residuals retained by SCUSA. (6) The repurchase facility is collateralized by securitization notes payable retained by SCUSA. No portion of this facility is unsecured. This facility has rolling 30 -day and 90 -day maturities. (7) These lines are also collateralized by securitization notes payable and residuals retained by SCUSA. As of December 31, 2014 , $2.2 billion of the aggregate outstanding balances on these credit facilities was unsecured. Secured Structured Financings The following tables present information regarding SCUSA's secured structured financings as of September 30, 2015 and December 31, 2014 : September 30, 2015 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SCUSA public securitizations, maturing on various dates (1) $ 13,377,986 $ 23,863,842 0.89% - 2.29% $ 16,852,670 $ 1,194,363 SCUSA privately issued amortizing notes, maturing on various dates (1) 6,677,464 10,174,679 0.88% - 1.62% 9,831,162 368,134 Total SCUSA secured structured financings $ 20,055,450 $ 34,038,521 0.88% - 2.29% $ 26,683,832 $ 1,562,497 NOTE 10. BORROWINGS (continued) December 31, 2014 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SCUSA public securitizations, maturing on various dates (1) $ 11,523,729 $ 26,682,930 0.89% - 2.80% $ 14,345,242 $ 1,184,047 SCUSA privately issued amortizing notes, maturing on various dates (1) 6,282,474 8,499,111 1.05% - 1.85% 9,114,997 281,038 Total SCUSA secured structured financings $ 17,806,203 $ 35,182,041 0.89% - 2.80% $ 23,460,239 $ 1,465,085 (1) SCUSA has entered into various securitization transactions involving its retail automotive installment loans and leases. These transactions are accounted for as secured financings and therefore both the securitized retail installment contracts and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheet. The maturity of this debt is based on the timing of repayments from the securitized assets. Most of the Company's secured structured financings are in the form of public, SEC-registered securitizations. The Company also executes private securitizations under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and periodically issues private term amortizing notes, which are structured similarly to securitizations but are acquired by banks and conduits. The Company's securitizations and private issuances are collateralized by vehicle retail installment contracts and loans or leases. |
DERIVATIVES (As Restated)
DERIVATIVES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 11. DERIVATIVES (As Restated) General The Company uses derivative financial instruments primarily to help manage exposure to interest rate, foreign exchange, equity and credit risk, as well as to reduce the effects that changes in interest rates may have on net income, the fair value of assets and liabilities, and cash flows. The Company also enters into derivatives with customers to facilitate their risk management activities. The Company uses derivative financial instruments as risk management tools and not for speculative trading purposes. The fair value of all derivative balances is recorded within Other assets and Other liabilities on the Condensed Consolidated Balance Sheet. See Note 16 for discussion of the valuation methodology for derivative instruments. Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract. Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and is not recorded on the balance sheet. The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract. The underlying is a referenced interest rate (commonly Overnight Indexed Swap ("OIS") or LIBOR), security price, credit spread or other index. Derivative balances are presented on a gross basis before taking into consideration the effects of legally enforceable master netting agreements. Through the Company’s capital markets and mortgage banking activities, it is subject to price risk. The Company employs various tools to measure and manage price risk in its portfolios. In addition, the Board of Directors has established certain limits relative to positions and activities. The level of price risk exposure at any given time depends on the market environment and expectations of future price and market movements and will vary from period to period. To qualify for hedge accounting, the Company was required to designate SCUSA’s derivatives as accounting hedges on or after the Change in Control date. The Company designated certain of SCUSA’s derivatives as accounting hedges effective April 1, 2014. NOTE 11. DERIVATIVES (As Restated) (continued) Credit Risk Contingent Features The Company has entered into certain derivative contracts that require the posting of collateral to counterparties when these contracts are in a net liability position. The amount of collateral to be posted is based on the amount of the net liability and thresholds generally related to the Company's long-term senior unsecured credit ratings. In a limited number of instances, counterparties also have the right to terminate their International Swaps and Derivatives Association, Inc. ("ISDA") master agreements if the Company's ratings fall below investment grade. As of September 30, 2015 , derivatives in this category had a fair value of $32.5 million . The credit ratings of the Bank and SHUSA are currently considered investment grade. The Bank estimates a further 1 - or 2 - notch downgrade by either Standard & Poor's or Moody's would require the Bank to post up to an additional $3.5 million or $5.5 million of collateral, respectively, to comply with existing derivative agreements. As of September 30, 2015 and December 31, 2014 , the aggregate fair value of all derivative contracts with credit risk contingent features (i.e. those containing collateral posting or termination provisions based on the Company's ratings) that were in a net liability position totaled $145.2 million and $133.2 million , respectively. The Company had $120.6 million and $127.6 million in cash and securities collateral posted to cover those positions as of September 30, 2015 and December 31, 2014 , respectively. Fair Value Hedges The Company enters into cross-currency swaps to hedge its foreign currency exchange risk on certain Euro-denominated investments. The Company also entered into interest rate swaps to hedge the interest rate risk on certain fixed rate investments. These derivatives are designated as fair value hedges at inception. The Company includes all components of each derivative's gain or loss in the assessment of hedge effectiveness. The earnings impact of the ineffective portion of these hedges was not material for the three-month and nine-month periods ended September 30, 2015 or September 30, 2014 . The last of the hedges is scheduled to expire in June 2020 . Cash Flow Hedges Management uses derivative instruments, which are designated as hedges, to mitigate the impact of interest rate movements on the fair value of certain liabilities, assets and on highly probable forecasted cash flows. These instruments primarily include interest rate swaps that have underlying interest rates based on key benchmark indices and forward sale or purchase commitments. The nature and volume of the derivative instruments used to manage interest rate risk depend on the level and type of assets and liabilities on the balance sheet and the risk management strategies for the current and anticipated interest rate environment. Interest rate swaps are generally used to convert fixed-rate assets and liabilities to variable rate assets and liabilities and vice versa. The Company utilizes interest rate swaps that have a high degree of correlation to the related financial instrument. The last of the hedges is scheduled to expire in December 2030 . The Company includes all components of each derivative's gain or loss in the assessment of hedge effectiveness. The earnings impact of the ineffective portion of these hedges was not material for the three-month and nine-month periods ended September 30, 2015 or September 30, 2014 . As of September 30, 2015 , the Company expects approximately $1.4 million of gross losses recorded in accumulated other comprehensive income to be reclassified to earnings during the subsequent twelve months as the future cash flows occur. NOTE 11. DERIVATIVES (As Restated) (continued) Derivatives Designated in Hedge Relationships – Notional and Fair Values Derivatives designated as accounting hedges at September 30, 2015 and December 31, 2014 included: Notional Amount Asset Liability Weighted Average Receive Rate Weighted Average Pay Rate Weighted Average Life (Years) (dollars in thousands) September 30, 2015 Fair value hedges: Cross-currency swaps $ 16,757 $ 3,555 $ 309 4.76 % 4.75 % 0.36 Interest rate swaps 318,000 153 6,136 1.00 % 2.29 % 3.75 Cash flow hedges: Pay fixed — receive floating interest rate swaps 10,751,056 — 71,178 0.20 % 1.09 % 3.12 Total $ 11,085,813 $ 3,708 $ 77,623 0.23 % 1.13 % 3.13 December 31, 2014 Fair Value hedges: Cross-currency swaps $ 18,230 $ 2,711 $ 980 4.76 % 4.75 % 1.11 Interest rate swaps 257,000 232 779 0.90 % 2.38 % 4.33 Cash flow hedges: Pay fixed — receive floating interest rate swaps 10,086,103 7,619 20,552 0.17 % 1.11 % 3.02 Total $ 10,361,333 $ 10,562 $ 22,311 0.19 % 1.14 % 3.05 See Note 13 for detail of the amounts included in accumulated other comprehensive income related to derivatives activity. Other Derivative Activities The Company also enters into derivatives that are not designated as accounting hedges under GAAP. The majority of these derivatives are customer-related derivatives relating to foreign exchange and lending arrangements. In addition, derivatives are used to manage risks related to residential and commercial mortgage banking and investing activities. Although these derivatives are used to hedge risk and are considered economic hedges, they are not designated as accounting hedges because the contracts they are hedging are typically also carried at fair value on the balance sheet, resulting in generally symmetrical accounting treatment for both the hedging instrument and the hedged item. Mortgage Banking Derivatives The Company's derivatives portfolio includes mortgage banking interest rate lock commitments, forward sale commitments and interest rate swaps. As part of its overall business strategy, the Bank originates fixed-rate residential mortgages. It sells a portion of this production to the FHLMC, FNMA, and private investors. The Company uses forward sales as a means of hedging against the economic impact of changes in interest rates on the mortgages that are originated for sale and on interest rate lock commitments. The Company typically retains the servicing rights related to residential mortgage loans that are sold. Residential MSRs are accounted for at fair value. As deemed appropriate, the Company economically hedges MSRs using interest rate swaps and forward contracts to purchase MBS. NOTE 11. DERIVATIVES (As Restated) (continued) Customer-related derivatives The Company offers derivatives to its customers in connection with their risk management needs. These financial derivative transactions primarily consist of interest rate swaps, caps, floors and foreign exchange contracts. Risk exposure from customer positions is managed through transactions with other dealers, including Santander. Other derivative activities The Company uses foreign exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities. Foreign exchange contracts, which include spot and forward contracts as well as cross-currency swaps, represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. Exposure to gains and losses on these contracts will increase or decrease over their respective lives as currency exchange and interest rates fluctuate. In March 2014 , SCUSA entered into a financing arrangement with a third party under which SCUSA pledged certain bonds retained in its own securitizations in exchange for approximately $251 million in cash. In conjunction with this financing arrangement, SCUSA entered into a total return swap related to the bonds as an effective avenue to monetize SCUSA’s retained bonds as a source of financing. This arrangement matured and was terminated in May 2015. Other derivative instruments primarily include forward contracts related to certain investment securities sales, an OIS, a total return swap on Visa, Inc. Class B common shares, and equity options, which manage the Company's market risk associated with certain investments and customer deposit products. NOTE 11. DERIVATIVES (As Restated) (continued) Derivatives Not Designated in Hedge Relationships – Notional and Fair Values Other derivative activities at September 30, 2015 and December 31, 2014 included: Notional Asset derivatives Fair value Liability derivatives Fair value September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in thousands) Mortgage banking derivatives: Forward commitments to sell loans $ 482,207 $ 328,757 $ — $ — $ 4,200 $ 2,424 Interest rate lock commitments 248,375 163,013 5,480 3,063 — — Mortgage servicing 435,000 469,000 3,684 7,432 2,399 7,448 Total mortgage banking risk management 1,165,582 960,770 9,164 10,495 6,599 9,872 Customer related derivatives: Swaps receive fixed 8,624,004 7,927,522 300,848 213,415 1,194 4,343 Swaps pay fixed 8,749,748 7,944,247 3,306 13,361 267,923 186,732 Other 2,983,761 1,670,696 44,899 62,464 43,931 61,880 Total customer related derivatives 20,357,513 17,542,465 349,053 289,240 313,048 252,955 Other derivative activities: Foreign exchange contracts 2,136,160 1,152,125 29,413 20,033 28,743 17,390 Interest rate swap agreements 2,833,000 3,231,000 — 535 12,743 12,743 Interest rate cap agreements 9,211,000 7,541,385 24,451 49,762 — — Options for interest rate cap agreements 9,211,000 7,541,385 — — 24,462 49,806 Total return settlement 1,404,726 1,404,726 — — 53,322 48,893 Other 822,534 646,321 8,635 6,543 11,931 9,914 Total $ 47,141,515 $ 40,020,177 $ 420,716 $ 376,608 $ 450,848 $ 401,573 SCUSA is the holder of a warrant that gives it the right, if certain vesting conditions are satisfied, to purchase additional shares in a company in which it has a cost method investment. This warrant was issued in 2012 and is carried at its estimated fair value of zero at September 30, 2015 . NOTE 11. DERIVATIVES (As Restated) (continued) Gains (Losses) on All Derivatives The following Condensed Consolidated Statement of Operations line items were impacted by the Company’s derivative activities for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively: Three-Month Period Nine-Month Period Derivative Activity (1) Accounts 2015 2014 2015 2014 (in thousands) Fair value hedges: Cross-currency swaps Miscellaneous income immaterial immaterial $ 110 $ 774 Interest rate swaps Miscellaneous income (3,985 ) 1,731 (5,437 ) 978 Cash flow hedges: Pay fixed-receive variable interest rate swaps Net interest income (1,775 ) (13,469 ) (9,957 ) (40,936 ) Other derivative activities: Forward commitments to sell loans Mortgage banking income (10,711 ) 2,490 (1,776 ) (2,762 ) Interest rate lock commitments Mortgage banking income 3,595 (2,027 ) 2,417 1,518 Mortgage servicing Mortgage banking income 11,736 1,032 1,302 (4,100 ) Customer related derivatives Miscellaneous income (1,251 ) 3,280 (179 ) 6,941 Foreign exchange Miscellaneous income (109 ) 1,794 (1,973 ) 1,302 SCUSA derivatives Miscellaneous income (3,746 ) 9,130 711 27,269 Net interest income 21,093 (971 ) 58,453 (4,951 ) Other administrative expenses 3,836 (1,290 ) (10,197 ) (4,447 ) Other Miscellaneous income (1,649 ) 580 (2,107 ) (729 ) (1) - Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. Disclosures about Offsetting Assets and Liabilities The Company enters into legally enforceable master netting agreements, which reduce risk by permitting netting of transactions with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment and in a single currency. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in the ISDA master agreement. The Company's financial instruments, including resell and repurchase agreements, securities lending arrangements, derivatives and cash collateral, may be eligible for offset on its Condensed Consolidated Balance Sheet. NOTE 11. DERIVATIVES (As Restated) (continued) Information about financial assets and liabilities that are eligible for offset on the Condensed Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014 , respectively, is presented in the following tables: Offsetting of Financial Assets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2015 Fair value hedges $ 3,708 $ — $ 3,708 $ — $ — $ 3,708 Cash flow hedges — — — — — — Other derivative activities (1) 415,236 9,015 406,221 8,027 45,306 352,888 Total derivatives subject to a master netting arrangement or similar arrangement 418,944 9,015 409,929 8,027 45,306 356,596 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 5,480 — 5,480 — — 5,480 Total Derivative Assets $ 424,424 $ 9,015 $ 415,409 $ 8,027 $ 45,306 $ 362,076 Total Financial Assets $ 424,424 $ 9,015 $ 415,409 $ 8,027 $ 45,306 $ 362,076 December 31, 2014 Fair value hedges $ 2,943 $ — $ 2,943 $ — $ — $ 2,943 Cash flow hedges 7,619 — 7,619 — — 7,619 Other derivative activities (1) 373,545 21,109 352,436 10,020 5,940 336,476 Total derivatives subject to a master netting arrangement or similar arrangement 384,107 21,109 362,998 10,020 5,940 347,038 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 3,063 — 3,063 — — 3,063 Total Derivative Assets $ 387,170 $ 21,109 $ 366,061 $ 10,020 $ 5,940 $ 350,101 Total Financial Assets $ 387,170 $ 21,109 $ 366,061 $ 10,020 $ 5,940 $ 350,101 (1) Includes customer-related and other derivatives. (2) Includes mortgage banking derivatives. NOTE 11. DERIVATIVES (As Restated) (continued) Offsetting of Financial Liabilities Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2015 Fair value hedges $ 6,445 $ — $ 6,445 $ 114 $ 12,703 $ (6,372 ) Cash flow hedges 71,178 71,178 — 79,437 (8,259 ) Other derivative activities (1) 397,158 102,934 294,224 8,016 218,906 67,302 Total derivatives subject to a master netting arrangement or similar arrangement 474,781 102,934 371,847 8,130 311,046 52,671 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 53,690 — 53,690 — — 53,690 Total Derivative Liabilities $ 528,471 $ 102,934 $ 425,537 $ 8,130 $ 311,046 $ 106,361 Total Financial Liabilities $ 528,471 $ 102,934 $ 425,537 $ 8,130 $ 311,046 $ 106,361 December 31, 2014 Fair value hedges $ 1,759 $ — $ 1,759 $ 65 $ 5,589 $ (3,895 ) Cash flow hedges 20,552 — 20,552 7,341 16,797 (3,586 ) Other derivative activities (1) 350,863 21,109 329,754 49,318 198,103 82,333 Total derivatives subject to a master netting arrangement or similar arrangement 373,174 21,109 352,065 56,724 220,489 74,852 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 50,710 — 50,710 — 1,736 48,974 Total Derivative Liabilities $ 423,884 $ 21,109 $ 402,775 $ 56,724 $ 222,225 $ 123,826 Total Financial Liabilities $ 423,884 $ 21,109 $ 402,775 $ 56,724 $ 222,225 $ 123,826 (1) Includes customer-related and other derivatives (2) Includes mortgage banking derivatives |
INCOME TAXES (As Restated)
INCOME TAXES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES (As Restated) | NOTE 12. INCOME TAXES (As Restated) Income tax provisions of $201.4 million and $363.4 million were recorded for the three-month and nine-month periods ended September 30, 2015 , respectively, compared to $208.3 million and $1.5 billion for the corresponding periods in 2014 . This resulted in effective tax rates of 61.5% and 40.6% for the three-month and nine-month periods ended September 30, 2015 , respectively, compared to 37.0% and 36.1% for the corresponding periods in 2014 . The higher tax rate for the three-month and nine month periods ended September 30, 2015 was primarily due to a discrete tax expense recognized during the three-month period ended September 30, 2015 to increase the reserve for income taxes related to a dispute with the United States on two financing transactions. The Company is subject to the income tax laws of the U.S., its states and municipalities and certain foreign countries. These tax laws are complex and are potentially subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws. NOTE 12. INCOME TAXES (As Restated) (continued) The Company has a lawsuit pending against the United States in Federal District Court in Massachusetts relating to the proper tax consequences of two financing transactions with an international bank through which the Company borrowed $1.2 billion . As a result of these financing transactions, the Company paid foreign taxes of $264.0 million during the years 2003 through 2007 and claimed a corresponding foreign tax credit for foreign taxes paid during those years, which the Internal Revenue Service ("IRS") disallowed. The IRS also disallowed the Company's deductions for interest expense and transaction costs, totaling $74.6 million in tax liability, and assessed penalties and interest totaling approximately $92.5 million . The Company has paid the taxes, penalties and interest associated with the IRS adjustments for all tax years, and the lawsuit will determine whether it is entitled to a refund all or any portion of the amounts paid. The Company has recorded a receivable in the Other assets line of the Condensed Consolidated Balance Sheets for the amount of these payments, less a tax reserve of $230.1 million , as of September 30, 2015 . On October 17, 2013, the Court issued a written opinion in favor of the Company relating to a motion for partial summary judgment on a significant issue in the case. The Company subsequently filed a motion for summary judgment requesting the Court to resolve the case in its entirety and enter a final judgment in the borrower's favor and awarding the Company a refund of all amounts paid to the IRS. In response, the IRS filed a motion opposing the Company's motion, and filed a cross-motion for summary judgment requesting that the Court enter a final judgment in the IRS's favor. The Company anticipates the Court will make a determination as to whether further proceedings are required at the District Court level to resolve any remaining legal or factual issues, which could affect the Company's entitlement to some or all of the refund. The Company expects the IRS to appeal any decision in favor of the Company, and the Company may appeal any decision in the IRS's favor. In 2013, two different federal courts decided cases involving similar financing structures entered into by the Bank of New York Mellon Corp. ("BNY Mellon") and BB&T Corp. ("BB&T") in favor of the IRS. BNY Mellon and BB&T each appealed. On May 14, 2015, the Court of Appeals for the Federal Circuit decided BB&T's appeal by affirming the trial court's decision to disallow BB&T's foreign tax credits and to allow penalties, but reversed the trial court and allowed BB&T's entitlement to interest deductions. On September 9, 2015, the Court of Appeals for the Second Circuit upheld the trial court's decision in BNY Mellon's case, allowing BNY Mellon to claim interest deductions, but disallowing BNY Mellon's claimed foreign tax credits. On September 29, 2015, BB&T filed a petition requesting the U.S. Supreme Court to hear its appeal of the Federal Circuit Court’s decision. BNY Mellon filed a petition requesting the U.S. Supreme Court hear its appeal of the Second Circuit’s decision on November 3, 2015. While the Company remains confident in the legal merits of its position, the Company increased its reserve position as of September 30, 2015 by $104.2 million , and believes its reserve amount adequately provides for potential exposure to the IRS related to these items. Over the next 12 months, it is reasonably possible that changes in the reserve for uncertain tax positions could range from a decrease of $230.1 million to an increase of $201.9 million . The IRS concluded the exam of the Company’s 2006 and 2007 tax returns in 2011. In addition to the adjustments for items related to the financing transactions discussed above, the IRS proposed to recharacterize ordinary losses related to the sale of certain assets as capital losses. The Company paid the tax assessment resulting from this recharacterization, and contested the adjustment through the administrative appeals process. IRS administrative appeals determined that the Company properly characterized the loss as an ordinary loss. The Company has received a refund of all taxes paid associated with this issue (for which a benefit had already been recognized), and the Company is not subject to any further exposure. With few exceptions, the Company is no longer subject to federal, state and non-U.S. income tax examinations by tax authorities for years prior to 2003. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) The following table presents the components of accumulated other comprehensive income/ (loss), net of related tax, for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively. Total Other Comprehensive Income/(Loss) Total Accumulated Three-Month Period Ended September 30, 2015 June 30, 2015 September 30, 2015 Pretax Activity Tax Effect Net Activity Beginning Balance Net Activity Ending Balance (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (45,805 ) $ 16,975 $ (28,830 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 1,774 (657 ) 1,117 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (44,031 ) 16,318 (27,713 ) $ (22,161 ) $ (27,713 ) $ (49,874 ) Change in unrealized gains/(losses) on investment securities available-for-sale 135,217 (52,711 ) 82,506 Reclassification adjustment for net losses/(gains) included in net income on non-OTTI securities (2) 1,993 (777 ) 1,216 Net unrealized gains/(losses) on investment securities available-for-sale 137,210 (53,488 ) 83,722 (74,758 ) 83,722 8,964 Pension and post-retirement actuarial gain/(loss) (3) 1,018 (398 ) 620 (28,583 ) 620 (27,963 ) As of September 30, 2015 $ 94,197 $ (37,568 ) $ 56,629 $ (125,502 ) $ 56,629 $ (68,873 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated For the Nine-Month Period December 31, 2014 September 30, 2015 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (67,051 ) $ 25,226 $ (41,825 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 9,957 (3,746 ) 6,211 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (57,094 ) 21,480 (35,614 ) $ (14,260 ) $ (35,614 ) $ (49,874 ) Change in unrealized gains/(losses) on investment securities available-for-sale 119,553 (47,692 ) 71,861 Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (18,363 ) 7,325 (11,038 ) Reclassification adjustment for net losses/(gains) included in net income/(expense) on OTTI securities (3) 1,092 (436 ) 656 Reclassification adjustment for net (gains)/losses included in net income (17,271 ) 6,889 (10,382 ) Net unrealized gains/(losses) on investment securities available-for-sale 102,282 (40,803 ) 61,479 (52,515 ) 61,479 8,964 Pension and post-retirement actuarial gain/(loss) (3) 3,054 (1,382 ) 1,672 (29,635 ) 1,672 (27,963 ) As of September 30, 2015 $ 48,242 $ (20,705 ) $ 27,537 $ (96,410 ) $ 27,537 $ (68,873 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Three-Month Period Ended September 30, 2014 June 30, 2014 September 30, 2014 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated gains/(losses) on cash flow hedge derivative financial instruments $ 13,667 $ (5,018 ) $ 8,649 Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 13,797 (5,065 ) 8,732 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments 27,464 (10,083 ) 17,381 $ (32,782 ) $ 17,381 $ (15,401 ) Change in unrealized (losses).gains on investment securities available-for-sale (28,911 ) 11,294 (17,617 ) Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (131 ) 51 (80 ) Net unrealized (losses)/gains on investment securities available-for-sale (29,042 ) 11,345 (17,697 ) (70,404 ) (17,697 ) (88,101 ) Pension and post-retirement actuarial gain/(loss) (3) 447 (175 ) 272 (14,718 ) 272 (14,446 ) As of September 30, 2014 $ (1,131 ) $ 1,087 $ (44 ) $ (117,904 ) $ (44 ) $ (117,948 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Nine-Month Period Ended September 30, 2014 December 31, 2013 September 30, 2014 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (3,453 ) $ 1,259 $ (2,194 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 41,264 (15,048 ) 26,216 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments 37,811 (13,789 ) 24,022 $ (39,423 ) $ 24,022 $ (15,401 ) Change in unrealized gains/(losses) on investment securities available-for-sale 2,623,062 (1,028,228 ) 1,594,834 Reclassification adjustment for net gains included in net (gains)/losses on non-OTTI securities (2) (2,440,019 ) 956,476 (1,483,543 ) Net unrealized gains/(losses) on investment securities available-for-sale 183,043 (71,752 ) 111,291 (199,392 ) 111,291 (88,101 ) Pension and post-retirement actuarial gain/(loss) (3) 1,341 (234 ) 1,107 (15,553 ) 1,107 (14,446 ) As of September 30, 2014 $ 222,195 $ (85,775 ) $ 136,420 $ (254,368 ) $ 136,420 $ (117,948 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) | NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) Off-Balance Sheet Risk - Financial Instruments In the normal course of business, the Company utilizes a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers and manage its exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, letters of credit, loans sold with recourse, forward contracts, and interest rate and cross currency swaps, caps and floors. These financial instruments may involve, to varying degrees, elements of credit, liquidity, and interest rate risk in excess of the amount recognized on the Condensed Consolidated Balance Sheet. The contractual or notional amounts of these financial instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, letters of credit and loans sold with recourse is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. For forward contracts and interest rate swaps, caps and floors, the contract or notional amounts do not represent exposure to credit loss. The Company controls the credit risk of its forward contracts and interest rate swaps, caps and floors through credit approvals, limits and monitoring procedures. See Note 11 to these Condensed Consolidated Financial Statements for discussion of all derivative contract commitments. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) The following table details the amount of commitments at the dates indicated: Other Commitments September 30, 2015 December 31, 2014 (in thousands) Commitments to extend credit $ 30,570,879 $ 28,792,062 Unsecured revolving lines of credit — 5 Letters of credit 1,890,547 1,789,666 Recourse and credit enhancement exposure on sold loans 71,845 174,902 Commitments to sell loans 60,921 82,791 Total commitments $ 32,594,192 $ 30,839,426 Commitments to Extend Credit Commitments to extend credit generally have fixed expiration dates, are variable rate, and contain provisions that permit the Company to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit quality. These arrangements normally require payment of a fee by the customer, the pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant factors. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. The following table details the amount of commitments to extend credit expiring per period as of the dates indicated: September 30, 2015 December 31, 2014 (in thousands) One year or less $ 5,563,216 $ 5,968,468 Over 1 year to 3 years 5,626,208 5,322,291 Over 3 years to 5 years 12,254,421 10,810,213 Over 5 years (1) 7,127,034 6,691,090 Total $ 30,570,879 $ 28,792,062 (1) Includes certain commitments to extend credit that do not have a contractual maturity date, but are expected to be outstanding greater than 5 years. Unsecured Revolving Lines of Credit Such commitments arise primarily from agreements with customers for unused lines of credit on unsecured revolving accounts and credit cards, provided there is no violation of conditions in the underlying agreement. These commitments, substantially all of which the Company can terminate at any time and which do not necessarily represent future cash requirements, are periodically reviewed based on account usage, customer creditworthiness and loan qualifications. Letters of Credit The Company’s letters of credit meet the definition of a guarantee. Letters of credit commit the Company to make payments on behalf of its customers if specified future events occur. The guarantees are primarily issued to support public and private borrowing arrangements. The weighted average term of these commitments is 14.8 months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In the event of a draw by the beneficiary that complies with the terms of the letters of credit, the Company would be required to honor the commitment. The Company has various forms of collateral for these letters of credit, including real estate assets and other customer business assets. The maximum undiscounted exposure related to these commitments at September 30, 2015 was $1.9 billion . The fees related to letters of credit are deferred and amortized over the lives of the commitments and were immaterial to the Company’s financial statements at September 30, 2015 . Management believes that the utilization rate of these letters of credit will continue to be substantially less than the amount of the commitments, as has been the Company’s experience to date. As of September 30, 2015 and December 31, 2014 , the liability related to these letters of credit was $34.7 million and $73.9 million , respectively, which is recorded within the reserve for unfunded lending commitments in Other liabilities on the Condensed Consolidated Balance Sheet. The credit risk associated with letters of credit is monitored using the same risk rating system utilized within the loan and financing lease portfolio. Also included within the reserve for unfunded lending commitments at September 30, 2015 and December 31, 2014 were lines of credit outstanding of $102.9 million and $58.8 million , respectively. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) The following table details the amount of letters of credit expiring per period as of the dates indicated: September 30, 2015 December 31, 2014 (in thousands) One year or less $ 1,312,652 $ 1,250,124 Over 1 year to 3 years 246,126 285,108 Over 3 years to 5 years 310,476 248,209 Over 5 years 21,293 6,225 Total $ 1,890,547 $ 1,789,666 Loans Sold with Recourse The Company has loans sold with recourse that meet the definition of a guarantee. For loans sold with recourse under the terms of its multi-family sales program with FNMA, the Company retained a portion of the associated credit risk. The unpaid principal balance outstanding of loans sold in these programs was $589.7 million as of September 30, 2015 and $2.6 billion as of December 31, 2014 . As a result of its agreement with FNMA, the Company retained a 100% first loss position on each multi-family loan sold to FNMA until the earlier to occur of (i) the aggregate approved losses on multi-family loans sold to FNMA reaching the maximum loss exposure for the portfolio as a whole of $34.4 million as of September 30, 2015 and $152.8 million as of December 31, 2014 , or (ii) all of the loans sold to FNMA under this program are being fully paid off. Any losses sustained as a result of impediments in standard representations and warranties would be in addition to the maximum loss exposure. The Company has established a liability which represents the fair value of the retained credit exposure and the amount the Company estimates it would have to pay a third party to assume the retained recourse obligation. The estimated liability is calculated as the present value of losses that the portfolio is projected to incur based upon internal specific information and an industry-based default curve with a range of estimated losses. At September 30, 2015 and December 31, 2014 , the Company had $8.1 million and $40.7 million , respectively, of reserves classified in accrued expenses and payables on the Condensed Consolidated Balance Sheets related to the fair value of the retained credit exposure for loans sold to FNMA under this program. The Company's commitment will expire in March 2039 based on the maturity of the loans sold with recourse. Losses sustained by the Company may be offset, or partially offset, by proceeds resulting from the disposition of the underlying mortgaged properties. Approval from FNMA is required for all transactions related to the liquidation of properties underlying the mortgages. Additionally, during the period from 1999 to 2002 , residential mortgage loans were sold with recourse and credit enhancement features to FNMA and FHLMC. The remaining unpaid principal balance of these loans was $54.5 million and $55.8 million at September 30, 2015 and December 31, 2014 , respectively, and the remaining maximum amount of credit exposure on these loans was $20.1 million and $22.1 million for the same periods. The Company has posted collateral in the amount of $0.9 million at September 30, 2015 and December 31, 2014 to be utilized for any losses incurred related to these loans. Commitments to Sell Loans The Company enters into forward contracts relating to its mortgage banking business to hedge the exposures from commitments to make new residential mortgage loans with existing customers and from mortgage loans classified as LHFS. These contracts mature in less than one year . Representation and Warranty Liability In the ordinary course of business, the Company sells residential loans on a non-recourse basis to certain government-sponsored entities ("GSEs") and private investors. In connection with these sales, the Company has entered into agreements containing various representations and warranties about, among other things, the ownership of the loans, the validity of the liens securing the loans, the loans' compliance with any applicable loan criteria established by the GSEs and the private investors, including underwriting standards and the ongoing existence of mortgage insurance, the absence of delinquent taxes or liens against the property securing the loans and the loans' compliance with applicable federal, state, and local laws. Breaches of these representations and warranties may require the Company to repurchase the mortgage loan, or if the loan has been foreclosed, the underlying collateral, or otherwise make whole or provide other remedies to the GSEs and the private investors. The repurchase liability is recorded within Accrued expenses and payables on the Condensed Consolidated Balance Sheet, and the related income statement activity is recorded in Mortgage banking income, net on the Condensed Consolidated Statement of Operations. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Management believes the Company's repurchase reserve appropriately reflects the estimated probable losses on repurchase claims for all loans sold and outstanding as of September 30, 2015 . In making these estimates, the Company considers the losses it expects to incur over the lives of the loans sold. The table below represents the activity in the representation and warranty reserve for the dates indicated. Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Beginning Balance $ 23,008 $ 40,862 $ 24,266 $ 54,836 Changes in Estimate 655 10,894 935 3,315 Claims (429 ) (794 ) (1,967 ) (7,189 ) Ending Balance $ 23,234 $ 50,962 $ 23,234 $ 50,962 SC Commitments SC is obligated to make purchase price hold-back payments to a third party originator of loans that it purchases on a periodic basis, when losses are lower than originally expected. SC also is obligated to make total return settlement payments to this third-party originator in 2016 and 2017 if returns on the purchased pools are greater than originally expected. Under terms of agreements with a peer-to-peer personal lending platform company, SC was committed as of September 30, 2015 to purchase at least the lesser of $30.0 million per month or 50% of the lending platform company’s near-prime originations thereafter through July 2017 . This commitment can be reduced or canceled with 90 days notice. On October 9, 2015 , SC sent a notice of termination to the lending platform company. SC committed to purchase certain new advances on personal revolving financings originated by a third party retailer, along with existing balances on accounts with new advances, for an initial term ending in April 2020 and renewing through April 2022 at the retailer's option. Each customer account generated under the agreements generally is approved with a credit limit higher than the amount of the initial purchase, with each subsequent purchase automatically approved as long as it does not cause the account to exceed its limit and the customer is in good standing. As these credit lines do not have a specified maturity, but rather can be terminated at any time in the event of adverse credit changes or lack of use, SC has not recorded an allowance for unfunded commitments. As of September 30, 2015 and December 31, 2014 , SC was obligated to purchase $15.7 million and $7.7 million , respectively, in receivables that had been originated by the retailer but not yet purchased by SC. SC also is required to make a profit-sharing payment to the retailer each month if performance exceeds a specified return threshold. During the three months ended September 30, 2015 , SC and the third-party retailer executed an amendment that, among other provisions, increases the profit-sharing percentage retained by SC, gives the retailer the right to repurchase up to 9.99% of the existing portfolio at any time during the term of the agreement, and, provided that repurchase right is exercised, gives the retailer the right to retain up to 20% of new accounts subsequently originated. Under terms of an application transfer agreement with an original equipment manufacturer ("OEM"), SC has the first opportunity to review for its own portfolio any credit applications turned down by the OEM's captive finance company. The agreement does not require SC to originate any loans, but for each loan originated SC will pay the OEM a referral fee, comprised of a volume bonus fee and a loss betterment bonus fee. The loss betterment bonus fee will be calculated annually and is based on the amount by which losses on loans originated under the agreement are lower than an established percentage threshold. In connection with the sale of retail installment contracts through securitizations and other sales, SC has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require SC to repurchase loans previously sold to on- or off-balance sheet trusts or other third parties. As of September 30, 2015 , SC had no repurchase requests outstanding. In the opinion of SC management, the potential exposure of other recourse obligations related to SC’s retail installment contract sales agreements will not have a material adverse effect on SC’s consolidated financial position, results of operations, or cash flows. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Santander has provided guarantees on the covenants, agreements, and obligations of SC under the governing documents of its warehouse facilities and privately issued amortizing notes. These guarantees are limited to the obligations of SC as servicer. Under terms of the agreement with Chrysler, SC must make revenue sharing payments to Chrysler and also must make gain-sharing payments when residual gains on leased vehicles exceed a specified threshold. SC has a flow agreement with Bank of America under which SC is committed to sell up to a specified amount of eligible loans to the Bank of America each month through May 2018 . Prior to October 1, 2015, the amount of this monthly commitment was $300 million . On October 1, 2015 , SC and Bank of America amended the flow agreement to increase the maximum commitment to sell to $350 million of eligible loans each month, and to change the required written notice period from either party, in the event of termination of the agreement, from 120 days to 90 days. SC retains servicing on all sold loans and may receive or pay a servicer performance payment based on an agreed-upon formula if performance on the sold loans is better or worse, respectively, than expected performance at the time of sale. SC has sold loans to Citizens Bank of Pennsylvania ("CBP") under terms of a flow agreement and predecessor sale agreements. SC retains servicing on the sold loans and will owe CBP a loss-sharing payment capped at 0.5% of the original pool balance if losses exceed a specified threshold, established on a pool-by-pool basis. On June 25, 2015 , SC executed an amendment to the servicing agreement with CBP which increased the servicing fee SC receives. SC and CBP also amended the flow agreement which reduced, effective from and after August 1, 2015 , CBP's committed purchases of Chrysler Capital prime loans from a maximum of $600 million and a minimum of $250 million per quarter to a maximum of $200 million and a minimum of $50 million per quarter, as may be adjusted according to the agreement. In connection with the bulk sale of Chrysler Capital leases, SC is obligated to make quarterly payments to the purchaser sharing residual losses for lease terminations with losses over a specific percentage threshold. The estimated guarantee liability was $3.9 million as of September 30, 2015 . On March 31, 2015 , SC executed a forward flow asset sale agreement with a third party under the terms of which SC is committed to sell charged-off loan receivables in bankruptcy status on a quarterly basis until sales total at least $200 million in proceeds. SC and the third party executed an amendment to the forward flow asset sale agreement on June 29, 2015 which increased the committed sales of charged-off loan receivables in bankruptcy status to $275 million , and another amendment on September 29, 2015 requiring sales to occur quarterly. Prior to the most recent amendment there was no requirement on the timing of sales. As of September 30, 2015 , the remaining commitment was $203.4 million . Periodically, SC is party to or otherwise involved in various lawsuits and other legal proceedings that arise in the ordinary course of business. On August 26, 2014 , a putative securities class action lawsuit was filed in the United States District Court, Southern District of New York (the "Steck Lawsuit") On October 6, 2014 , another putative securities class action lawsuit was filed in the District Court of Dallas County, Texas and was subsequently removed to the United States District Court, Northern District of Texas. Both lawsuits were filed against SC, certain current and former directors and executive officers of SC and certain institutions that served as underwriters in the IPO. Each lawsuit was brought by a purported stockholder of SC seeking to represent a class consisting of all those who purchased or otherwise acquired securities pursuant and/or traceable to SC's Registration Statement and Prospectus issued in connection with the IPO. Each complaint alleges that the Registration Statement and Prospectus contained misleading statements concerning SC’s auto lending business and underwriting practices. Each lawsuit asserts claims under Section 11 and Section 15 of the Securities Act and seeks damages and other relief. In February 2015, the putative class action lawsuit pending in the United States District Court, Northern District of Texas, was voluntarily dismissed without prejudice. In June 2015, the Steck Lawsuit venue was transferred from the Southern District of New York to the Northern District of Texas. On October 15, 2015 , a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Feldman v. Jason A. Kulas, et al., C.A. No. 11614 . The lawsuit names as defendants current and former members of SC’s board of directors, and names SC as a nominal defendant. The complaint alleges, among other things, that the current and former director defendants breached their fiduciary duties in connection with overseeing SC’s subprime auto lending practices, resulting in harm to SC. The complaint seeks unspecified damages and equitable relief. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Further, SC is party to or are otherwise involved periodically in reviews, investigations, proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the Federal Reserve, the CFPB, the Department of Justice (the "DOJ"), the SEC, the Federal Trade Commission and various state regulatory agencies. Currently, such proceedings include a civil subpoena from the DOJ under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 requesting the production of documents and communications that, among other things, relate to the underwriting and securitization of nonprime auto loans since 2007 . Additionally, on October 28, 2014 , SC received a preservation letter and request for documents from the SEC requesting the preservation and production of documents and communications that, among other things, relate to the underwriting and securitization of auto loans since January 1, 2011 . SC also has received civil subpoenas from various state attorneys general requesting similar documents and communications. SC is complying with these requests for information and document preservation. On February 25, 2015 , SC entered into a consent order with the DOJ, approved by the United States District Court for the Northern District of Texas, which resolves the DOJ's claims against SC that certain of its repossession and collection activities during the period of time between January 2008 and February 2013 violated the Servicemembers Civil Relief Act. The consent requires SC to pay a civil fine in the amount of 55 thousand , as well as at least $9.4 million to affected service members consisting of ten thousand dollars plus compensation for any lost equity (with interest) for each repossession by SC and five thousand dollars for each instance where SC sought to collect repossession-related fees on accounts where a repossession was conducted by a prior account holder, as well as requires SC to undertake additional remedial measures. On July 31, 2015 , the CFPB notified SC that it had referred to the DOJ certain alleged violations by SC of the Equal Credit Opportunity Act ("ECOA") regarding (i) statistical disparities in markups charged by automobile dealers to protected groups on loans originated by those dealers and purchased by SC and (ii) the treatment of certain types of income in SC's underwriting process. On September 25, 2015 , SC the DOJ notified SC that it has initiated, based on the referral from the CFPB, an investigation under the ECOA of SC's pricing of automobile loans. SHUSA does not believe that there are any proceedings, threatened or pending, that, if determined adversely, would have a material adverse effect on the consolidated financial position, results of operations, or liquidity of SC. On July 2, 2015, SC announced the departure of Thomas G. Dundon from his roles as Chairman of the Board and Chief Executive Officer of SC, effective as of the close of business on July 2, 2015. In connection with Mr. Dundon's, and subject to the terms and conditions of his Employment Agreement, including Mr. Dundon's execution of a release of claims against SC, Mr. Dundon became entitled to receive certain payments and benefits under his Employment Agreement. The Separation Agreement also provided for the modification of terms of certain equity based awards. Certain of the payments, agreements to make payments and benefits may be effective only upon receipt of certain required regulatory approvals. As of September 30, 2015, SC has not made any payments to Mr. Dundon arising from or pursuant to the terms of the Separation Agreement. If all applicable conditions are satisfied, including receipt of certain required regulatory approvals, SC will be obligated to make a cash payment to Mr. Dundon of up to $115.1 million . This amount would be recorded as compensation expense in the condensed consolidated statement of income and comprehensive income in the period in which approval is obtained. Other Off-Balance Sheet Risk Other off-balance sheet risk stems from financial instruments that do not meet the definition of guarantees under applicable accounting guidance, and from other relationships which include items such as indemnifications provided in the ordinary course of business and intercompany guarantees. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) Litigation In the ordinary course of business, the Company and its subsidiaries are routinely parties to pending and threatened legal actions and proceedings, including class action claims. These actions and proceedings are generally based on alleged violations of consumer protection, securities, environmental, banking, employment and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries are also subject to regulatory examinations, inspections, information-gathering requests, inquiries and investigations, including by the Federal Reserve, the OCC, the CFPB, the FDIC, the DOJ, the SEC, states attorney's general and other governmental and regulatory authorities. In view of the inherent difficulty of predicting the outcome of such litigation and regulatory matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matter. The Company does not presently anticipate that the ultimate aggregate liability, if any, arising out of such other legal proceedings will have a material effect on its financial position. In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation, enforcement, or regulatory matter develops, the Company in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a loss contingency that is probable and estimable, during which quarter an accrued liability is established with respect to such loss contingency. The Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established. For certain of the Company's legal matters, the Company is able to estimate a range of reasonably possible losses. For other matters for which some loss is probable or reasonably possible, such an estimate is not possible. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves at September 30, 2015 are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Company. The regulatory matters for which it is reasonably possible that the Company will incur a significant loss are described below. The Company may include in some of the descriptions of individual disclosed matters certain quantitative information related to the plaintiff's claim against the Company as alleged in the plaintiff's pleadings or other public filings or otherwise based on publicly available information. While information of this type may provide insight into the potential magnitude of a matter, it does not necessarily represent the Company's estimate of reasonably possible loss or its judgment as to any currently appropriate accrual. Refer to Note 12 to these Condensed Consolidated Financial Statements for disclosure regarding the lawsuit filed by the Company against the IRS/United States. Other Regulatory and Governmental Matters Foreclosure Matters On May 22, 2013 , the Bank received a subpoena from the U.S. Attorney's Office for the Southern District of New York seeking information regarding claims for foreclosure expenses incurred in connection with the foreclosure of loans insured or guaranteed by the Federal Housing Agency, FNMA or FHLMC. The Bank is cooperating with the investigation; however, there can be no assurance that claims or litigation will not arise from this matter. NOTE 14. COMMITMENTS, CONTINGENCIES, AND GUARANTEES (continued) On April 13, 2011 , the Bank and other parties signed a consent order with the Office of Thrift Supervision ("OTS") resolving certain of the Bank's and other parties' foreclosure activities (the "OTS Order") by the Bank's previous primary federal banking regulator, the OTS, as part of an interagency horizontal review of foreclosure practices at 14 mortgage servicers. Upon its conversion to a national bank on January 26, 2012 , the Bank entered into a stipulation consenting to the issuance of a consent order by the OCC, which contains the same terms as the OTS Order (the "Order"). On January 7, 2013 , the Bank and nine other mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing reached an agreement in principle with the OCC and the Federal Reserve to make cash payments and provide other assistance to borrowers. On February 28, 2013 , the agreements were finalized with all ten mortgage servicing companies, including the Bank. Other assistance includes reductions of principal on first and second lien mortgage loans, payments to assist with short sales, deficiency balance waivers on past foreclosures and short sales, and forbearance assistance for unemployed homeowners. As of January 24, 2013 , twelve other mortgage servicing companies subject to enforcement action for deficient practices in mortgage loan servicing and foreclosure processes also reached an agreement with the OCC or the Federal Reserve, as applicable. As a result of this agreement, the participating servicers, including the Bank, ceased their independent foreclosure reviews, which involved case-by-case reviews, and replaced them with a broader framework allowing eligible borrowers to receive compensation in a more timely manner. This arrangement has not eliminated all of the Company's risks associated with foreclosures, since it does not protect the Bank from potential individual borrower claims, class actions lawsuits, actions by state attorneys general, or actions by the DOJ or other regulators. In addition, all of the other terms of the Order are still in effect. Under the agreement, the Bank has paid $6.2 million into a remediation fund, the majority of which has been distributed to borrowers, and will engage in foreclosure avoidance activities, such as loan modifications and short sales over the next two years in an aggregate principal amount of $9.9 million . In return, the OCC waived any civil money penalties that could have been assessed against the Bank. During 2013 , the Company submitted for credit from the OCC mortgage loans in the amount of $74.1 million , which represents the principal balance of mortgage loans for which the Bank completed foreclosure avoidance activities with its borrowers. The Bank represents 0.17% of the total $9.3 billion settlement among the banks and is the smallest participant in the agreement. The total $16.1 million related to the remediation fund and mortgage modifications was fully reserved. On June 16, 2015, the Bank entered into a consent order amending the Order and the 2013 amendment to the Order (the “2015 Amendment”). The 2015 Amendment states that the Bank has not fully complied with the terms of the OTS Order and that nine actionable items under the OTS Order, as amended, remain. The 2015 Amendment imposes certain supervisory restrictions |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 15. RELATED PARTY TRANSACTIONS The Company has various debt agreements with Santander. For a listing of these debt agreements, see Note 12 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2014 . The Company and its affiliates also entered into or were subject to various service agreements with Santander and its affiliates. Each of these agreements was made in the ordinary course of business and on market terms. A list and description of these agreements can be found in Note 22 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2014 . |
FAIR VALUE (As Restated)
FAIR VALUE (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE (As Restated) | NOTE 16. FAIR VALUE (As Restated) General As of September 30, 2015 , $22.3 billion of the Company’s total assets consisted of financial instruments measured at fair value on a recurring basis, including financial instruments for which the Company elected the FVO. Approximately $10.5 million of these financial instruments were measured using quoted market prices for identical instruments or Level 1 inputs. Approximately $20.1 billion of these financial instruments were measured using valuation methodologies involving market-based and market-derived information, or Level 2 inputs. Approximately $2.1 billion of these financial instruments were measured using model-based techniques, or Level 3 inputs, and represented approximately 9.6% of total assets measured at fair value and approximately 1.6% of total consolidated assets. NOTE 16. FAIR VALUE (As Restated) (continued) Fair value is defined in GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. GAAP establishes a fair value reporting hierarchy to maximize the use of observable inputs when measuring fair value and defines the three levels of inputs as noted below: • Level 1 - Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts. • Level 2 - Assets and liabilities valued based on observable market data for similar instruments. Fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly. • Level 3 - Assets or liabilities for which significant valuation assumptions are not readily observable in the market, and instruments valued based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require. Fair value is estimated using unobservable inputs that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities may include financial instruments whose value is determined using pricing services, pricing models with internally developed assumptions, DCF methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Assets and liabilities measured at fair value, by their nature; result in a higher degree of financial statement volatility. When available, the Company attempts to use quoted market prices or matrix pricing in active markets to determine fair value and classifies such items as Level 1 or Level 2 assets or liabilities. If quoted market prices in active markets are not available, fair value is determined using third-party broker quotes and/or DCF models incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using broker quotes and/or DCF models are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The Company values assets and liabilities based on the principal market on which each would be sold (in the case of assets) or transferred (in the case of liabilities). The principal market is the forum with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market. In the absence of observable market transactions, the Company considers liquidity valuation adjustments to reflect the uncertainty in pricing the instruments. The fair value of a financial asset is measured on a stand-alone basis and cannot be measured as a group, with the exception of certain financial instruments held and managed on a net portfolio basis. In measuring the fair value of a nonfinancial asset, the Company assumes the highest and best use of the asset by a market participant, not just the intended use, to maximize the value of the asset. The Company also considers whether any credit valuation adjustments are necessary based on the counterparty's credit quality. Any models used to determine fair values or validate dealer quotes based on the descriptions below are subject to review and testing as part of the Company's model validation and internal control testing processes. The Bank's Market Risk Department is responsible for determining and approving the fair values of all assets and liabilities valued at fair value, including the Company's Level 3 assets and liabilities. Price validation procedures are performed and the results are reviewed for Level 3 assets and liabilities by the Market Risk Department. Price validation procedures performed for these assets and liabilities can include comparing current prices to historical pricing trends by collateral type and vintage, comparing prices by product type to indicative pricing grids published by market makers, and obtaining corroborating dealer prices for significant securities. The Company reviews the assumptions utilized to determine fair value on a quarterly basis. Any changes in methodologies or significant inputs used in determining fair values are further reviewed to determine if a change in fair value level hierarchy has occurred. Transfers in and out of Levels 1, 2 and 3 are considered to be effective as of the end of the quarter in which they occur. There were no transfers between Levels 1, 2 and 3 during the three-month and nine-month periods ended September 30, 2015 for any assets or liabilities valued at fair value on a recurring basis. There were no transfers between Levels 1, 2 and 3 during the three-month period ended September 30, 2014 . During the nine-month period ended September 30, 2014 , the Company transferred certain of its ABS from Level 2 to Level 3 due to limited price transparency in connection with their limited trading activity. NOTE 16. FAIR VALUE (As Restated) (continued) Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring basis by major product category and fair value hierarchy as of September 30, 2015 and December 31, 2014 . Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: US Treasury securities $ — $ 3,209,863 $ — $ 3,209,863 Corporate debt — 1,563,099 — 1,563,099 Asset-backed securities — 321,924 1,622,727 1,944,651 Equity securities 10,528 — — 10,528 State and municipal securities — 761,322 — 761,322 Mortgage backed securities — 13,561,721 — 13,561,721 Total investment securities available-for-sale 10,528 19,417,929 1,622,727 21,051,184 Retail installment contracts held for investment — — 374,158 374,158 Loans held-for-sale — 280,764 — 280,764 Mortgage servicing rights — — 143,535 143,535 Derivatives: Fair value — 3,708 — 3,708 Mortgage banking interest rate lock commitments — — 5,480 5,480 Customer related — 349,053 — 349,053 Foreign exchange — 29,413 — 29,413 Mortgage servicing — 3,684 — 3,684 Interest rate cap agreements — 24,451 — 24,451 Other — 8,620 15 8,635 Total financial assets $ 10,528 $ 20,117,622 $ 2,145,915 $ 22,274,065 Financial liabilities: Derivatives: Fair value $ — $ 6,445 $ — $ 6,445 Cash flow — 71,178 — 71,178 Mortgage banking forward sell commitments — 4,200 — 4,200 Customer related — 313,048 — 313,048 Total return swap — — 282 282 Foreign exchange — 28,743 — 28,743 Mortgage servicing — 2,399 — 2,399 Interest rate swaps — 12,743 — 12,743 Option for interest rate cap — 24,462 — 24,462 Total return settlement — — 53,322 53,322 Other — 11,513 136 11,649 Total financial liabilities $ — $ 474,731 $ 53,740 $ 528,471 NOTE 16. FAIR VALUE (As Restated) (continued) Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: US Treasury securities $ — $ 1,695,767 $ — $ 1,695,767 Corporate debt — 2,182,401 — 2,182,401 Asset-backed securities — 1,452,760 1,267,643 2,720,403 Equity securities 10,343 — — 10,343 State and municipal securities — 1,823,462 — 1,823,462 Mortgage backed securities — 7,475,702 — 7,475,702 Total investment securities available-for-sale 10,343 14,630,092 1,267,643 15,908,078 Trading securities — 833,936 — 833,936 Retail installment contracts held for investment — — 845,911 845,911 Loans held-for-sale — 213,666 — 213,666 Mortgage servicing rights — — 145,047 145,047 Derivatives: Fair value — 2,943 — 2,943 Cash flow — 7,619 — 7,619 Mortgage banking interest rate lock commitments — — 3,063 3,063 Customer related — 289,240 — 289,240 Foreign exchange — 20,033 — 20,033 Mortgage servicing — 7,432 — 7,432 Interest rate swap agreements — 535 — 535 Interest rate cap agreements — 49,762 — 49,762 Other — 6,536 7 6,543 Total financial assets $ 10,343 $ 16,061,794 $ 2,261,671 $ 18,333,808 Financial liabilities: Derivatives: Fair value $ — $ 1,759 $ — $ 1,759 Cash flow — 20,552 — 20,552 Mortgage banking forward sell commitments — 2,424 — 2,424 Customer related — 252,955 — 252,955 Total return swap — 1,736 282 2,018 Foreign exchange — 17,390 — 17,390 Mortgage servicing — 7,448 — 7,448 Interest rate swaps — 12,743 — 12,743 Option for interest rate cap — 49,806 — 49,806 Total return settlement — — 48,893 48,893 Other — 7,823 73 7,896 Total financial liabilities $ — $ 374,636 $ 49,248 $ 423,884 NOTE 16. FAIR VALUE (As Restated) (continued) Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP from time to time. These adjustments to fair value usually result from application of lower-of-cost-or-fair value accounting or certain impairment measures. Assets measured at fair value on a nonrecurring basis that were still held on the balance sheet were as follows: Quoted Prices in Active Significant Other Significant Fair Value (in thousands) September 30, 2015 Impaired loans held for investment $ — $ 89,338 $ 360 $ 89,698 Foreclosed assets — 21,908 — 21,908 Vehicle inventory — 182,069 — 182,069 December 31, 2014 Impaired loans held for investment $ — $ 101,218 $ 67,699 $ 168,917 Foreclosed assets — 45,599 — 45,599 Vehicle inventory — 136,136 — 136,136 Indefinite lived intangibles — — 21,500 21,500 Valuation Processes and Techniques Impaired loans held for investment represents the recorded investment of impaired commercial loans for which the Company periodically records nonrecurring adjustments of collateral-dependent loans measured for impairment when establishing the allowance for loan losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Written offers to purchase a specific impaired loan are considered observable market inputs, which are considered Level 1 inputs. Appraisals are obtained to support the fair value of the collateral and incorporate measures such as recent sales prices for comparable properties, which are considered Level 2 inputs. Loans for which the value of the underlying collateral is determined using a combination of real estate appraisals, field examinations and internal calculations are considered Level 3 inputs. The inputs in the internal calculations include the loan balance, estimation of the collectability of the underlying receivables held by the customer used as collateral, sale and liquidation value of the inventory held by the customer used as collateral and historical loss-given-default parameters. In cases in which the carrying value exceeds the fair value of the collateral less cost to sell, an impairment charge is recognized. The total carrying value of these loans was $54.3 million and $100.2 million at September 30, 2015 and December 31, 2014 , respectively. Foreclosed assets represent the recorded investment in assets taken in foreclosure of defaulted loans, and are primarily comprised of commercial and residential real properties and generally measured at fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. The estimated fair value of intangible assets is valued using unobservable inputs and is classified as Level 3. Fair value is calculated using a DCF model. See further discussion on intangible assets in Note 8. NOTE 16. FAIR VALUE (As Restated) (continued) Fair Value Adjustments The following table presents the increases and decreases in value of certain assets that are measured at fair value on a nonrecurring basis for which a fair value adjustment has been included in the Condensed Consolidated Statements of Operations relating to assets held at period-end: Statement of Operations Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Impaired loans held for investment Provision for credit losses $ (2,888 ) $ (12,826 ) $ (1,445 ) $ (17,652 ) Foreclosed assets Other administrative expense (474 ) (167 ) (1,501 ) (519 ) $ (3,362 ) $ (12,993 ) $ (2,946 ) $ (18,171 ) Level 3 Rollforward for Recurring Assets and Liabilities The tables below present the changes in all Level 3 balances for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively. Three-Month Period Ended September 30, 2015 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, June 30, 2015 $ 1,539,483 $ 494,651 $ 157,147 $ (57,592 ) $ 2,133,689 (Losses) in other comprehensive income (5,307 ) — — — (5,307 ) Gains/(losses) in earnings — 39,296 (13,472 ) 7,340 33,164 Additions/Issuances 311,540 — 5,795 — 317,335 Settlements (1) (222,989 ) (159,789 ) (5,935 ) 2,007 (386,706 ) Balance, September 30, 2015 $ 1,622,727 $ 374,158 $ 143,535 $ (48,245 ) $ 2,092,175 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2015 $ — $ 39,296 $ (13,472 ) $ 3,745 $ 29,569 Nine-Month Period Ended September 30, 2015 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2014 $ 1,267,643 $ 845,911 $ 145,047 $ (46,178 ) $ 2,212,423 (Losses) in other comprehensive income (8,961 ) — — — (8,961 ) Gains/(losses) in earnings — 219,837 749 (8,130 ) 212,456 Additions/Issuances 910,135 — 17,124 — 927,259 Settlements (1) (546,090 ) (691,590 ) (19,385 ) 6,063 (1,251,002 ) Balance, September 30, 2015 $ 1,622,727 $ 374,158 $ 143,535 $ (48,245 ) $ 2,092,175 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2015 $ — $ 219,837 $ 749 $ (10,547 ) $ 210,039 (1) Settlements include charge-offs, prepayments, pay downs and maturities. NOTE 16. FAIR VALUE (As Restated) (continued) Three-Month Period Ended September 30, 2014 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, June 30, 2014 $ 1,243,872 $ 1,273,072 $ 124,118 $ (43,534 ) $ 2,597,528 (Losses) in other comprehensive income (849 ) — — — (849 ) Gains/(losses) in earnings — 116,177 (2,726 ) (3,408 ) 110,043 Additions/Issuances 69,543 — 16,078 — 85,621 Settlements (1) (138,107 ) (362,737 ) (5,679 ) 2,453 (504,070 ) Balance, September 30, 2014 $ 1,174,459 $ 1,026,512 $ 131,791 $ (44,489 ) $ 2,288,273 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2014 $ — $ 116,177 $ (2,726 ) $ (1,381 ) $ 112,070 Nine-Month Period Ended September 30, 2014 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2013 $ 52,940 $ — $ 141,787 $ (50,221 ) $ 144,506 Gains in other comprehensive income 1,021 — — — 1,021 Gains/(losses) in earnings — 475,607 (14,078 ) (3,235 ) 458,294 Additions/Issuances 171,869 1,870,383 20,081 — 2,062,333 Settlements (1) (222,831 ) (1,319,478 ) (15,999 ) 8,967 (1,549,341 ) Transfers into level 3 1,171,460 — — — 1,171,460 Balance, September 30, 2014 $ 1,174,459 $ 1,026,512 $ 131,791 $ (44,489 ) $ 2,288,273 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2014 $ — $ 475,607 $ (14,078 ) $ (4,753 ) $ 456,776 (1) Settlements include charge-offs, prepayments, pay downs and maturities. NOTE 16. FAIR VALUE (As Restated) (continued) Valuation Processes and Techniques - Recurring Fair Value Assets and Liabilities The following is a description of the valuation techniques used for instruments measured at fair value on a recurring basis: Securities Available-for-Sale and Trading Securities Securities accounted for at fair value include both available-for-sale and trading securities portfolios. The Company utilizes a third-party pricing service to value its investment securities portfolios. Its primary pricing service has consistently proved to be a high quality third-party pricing provider. For those investments not valued by the pricing vendors, other trusted market sources are utilized. The vendors the Company uses provide pricing services on a global basis. The Company monitors and validates the reliability of vendor pricing on an ongoing basis, which can include pricing methodology reviews, performing detailed reviews of the assumptions and inputs used by the vendor to price individual securities, and price validation testing. Price validation testing is performed independently of the risk-taking function and can include corroborating the prices received from third-party vendors with prices from another third-party source, reviewing valuations of comparable instruments, comparison to internal valuations, or reference to recent sales of similar securities. The classification of securities within the fair value hierarchy is based upon the activity level in the market for the security type and the observability of the inputs used to determine their fair value. Actively traded quoted market prices for investment securities available-for-sale, such as U.S. Treasury securities, corporate debt, state and municipal securities, and MBS, are not readily available. The Company's principal markets for its investment securities are the secondary institutional markets with an exit price that is predominantly reflective of bid-level pricing in these markets. These investment securities are priced by third-party pricing vendors. The third-party vendors use a variety of methods in pricing securities that incorporate relevant market data to arrive at an estimate of what a buyer in the marketplace would pay for a security under current market conditions. These investment securities are, therefore, considered Level 2. ABS is comprised primarily of collateralized loan obligations ("CLOs") and other ABS. Certain ABS are valued using DCF models. The DCF models are obtained from a third-party pricing vendor which uses observable market data and therefore are classified as Level 2 inputs. CLOs are initially valued by the provider using DCF models which consider inputs such as default correlation, credit spread, prepayment speed, conditional default rate and loss severity. The price produced by the model is then compared to recent trades for similar transactions. If there are differences between the model price and the market price, adjustments are made to the model so the final price approximates the market price. These CLO investments are, therefore, considered Level 2. Other ABS that could not be valued using a third-party pricing service are valued using an internally-developed DCF model. When estimating the fair value using this model, the Company uses its best estimate of the key assumptions which include the discount rates and forward yield curves. The Company uses comparable bond indices based on industry, term, and rating to discount the expected future cash flows. Determining the comparability of assets involves significant subjectivity related to asset type differences, cash flows, performance and other inputs. The inability of the Company to corroborate the fair value of the ABS due to the limited available observable data on these ABS resulted in a fair value classification of Level 3. The Company's equity securities are priced using net asset value per share, which is validated with a sufficient level of observable activity. Since the price is observable and unadjusted, these investments are considered Level 1. Gains and losses on investments are recognized in the Condensed Consolidated Statements of Operations through Net gain on sale of investment securities. NOTE 16. FAIR VALUE (As Restated) (continued) Retail Installment Contracts Held for Investment For certain retail installment contracts held for investment within loans held for investment, the Company has elected the FVO. The fair values of the retail installment contracts are estimated using the DCF model. In estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rate and adjustments to reflect voluntary prepayments, prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Loans Held-for-Sale The fair values of LHFS are estimated using published forward agency prices to agency buyers such as the FNMA and the FHLMC. The majority of the residential mortgage LHFS portfolio is sold to these two agencies. The fair value is determined using current secondary market prices for portfolios with similar characteristics, adjusted for servicing values and market conditions. These loans are regularly traded in active markets, and observable pricing information is available from market participants. The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain loans that are priced based on the pricing of similar loans. These adjustments represent unobservable inputs to the valuation, but are not considered significant given the relative insensitivity of the value to changes in these inputs to the fair value of the loans. Accordingly, residential mortgage LHFS are classified as Level 2. See further discussion below in the FVO for Financial Assets and Financial Liabilities section below. MSRs The model to value MSRs estimates the present value of the future net cash flows from mortgage servicing activities based on various assumptions. These cash flows include servicing and ancillary revenue, offset by the estimated costs of performing servicing activities. Significant assumptions used in the valuation of residential MSRs include changes in anticipated loan prepayment rates ("CPRs") and the discount rate, reflective of a market participant's required return on an investment for similar assets. Other important valuation assumptions include market-based servicing costs and the anticipated earnings on escrow and similar balances held by the Company in the normal course of mortgage servicing activities. All of these assumptions are considered to be unobservable inputs. Historically, servicing costs and discount rates have been less volatile than CPR and earnings rates, both of which are directly correlated with changes in market interest rates. Increases in prepayment speeds, discount rates and servicing costs result in lower valuations of MSRs. Decreases in the anticipated earnings rate on escrow and similar balances result in lower valuations of MSRs. For each of these items, the Company makes assumptions based on current market information and future expectations. All of the assumptions are based on standards that the Company believes would be utilized by market participants in valuing MSRs and are derived and/or benchmarked against independent public sources. Accordingly, MSRs are classified as Level 3 inputs. Gains and losses on MSRs are recognized on the Condensed Consolidated Statements of Operations through Mortgage banking income. See further discussion on MSRs in Note 9 . Listed below are the most significant inputs that are utilized by the Company in the evaluation of residential MSRs: • A 10% and 20% increase in the CPR speed would decrease the fair value of the residential servicing asset by $5.3 million and $10.1 million , respectively, at September 30, 2015 . • A 10% and 20% increase in the discount rate would decrease the fair value of the residential servicing asset by $5.0 million and $9.5 million , respectively, at September 30, 2015 . NOTE 16. FAIR VALUE (As Restated) (continued) Significant increases/(decreases) in any of those inputs in isolation would result in significantly higher/(lower) fair value measurements. These sensitivity calculations are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. Prepayment estimates generally increase when market interest rates decline and decrease when market interest rates rise. Discount rates typically increase when market interest rates increase and/or credit and liquidity risks increase and decrease when market interest rates decline and/or credit and liquidity conditions improve. Derivatives The valuation of these instruments is determined using widely accepted valuation techniques, including DCF analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable and unobservable market-based inputs. The fair value represents the estimated amount SHUSA would receive or pay to terminate the contract or agreement, taking into account current interest rates, foreign exchange rates, equity prices and, when appropriate, the current creditworthiness of the counterparties. The Company incorporates credit valuation adjustments in the fair value measurement of its derivatives to reflect the respective counterparty's nonperformance risk in the fair value measurement of its derivatives, except for those derivative contracts with associated credit support annexes which provide credit enhancements, such as collateral postings and guarantees. The Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. Certain of the Company's derivatives utilize Level 3 inputs, which are primarily related to mortgage banking derivatives-interest rate lock commitments and total return settlement derivative contracts. The DCF model is utilized to determine the fair value of the mortgage banking derivatives-interest rate lock commitments and the total return settlement derivative contracts. The significant unobservable inputs for mortgage banking derivatives used in the fair value measurement of the Company's loan commitments are "pull through" percentage and the MSR value that is inherent in the underlying loan value. The pull through percentage is an estimate of loan commitments that will result in closed loans. The significant unobservable inputs for total return settlement derivative contracts used in the fair value measurement of the Company's liabilities are discount percentages, which are based on comparable financial instruments. Significant increases/(decreases) in any of these inputs in isolation would result in significantly higher/(lower) fair value measurements. Significant increases/(decreases) in the fair value of a mortgage banking derivative asset/(liability) results when the probability of funding increases/(decreases). Significant increases/(decreases) in the fair value of a mortgage loan commitment result when the embedded servicing value increases/(decreases). Gains and losses related to derivatives affect various line items in the Condensed Consolidated Statements of Operations. See Note 11 for a discussion of derivatives activity. NOTE 16. FAIR VALUE (As Restated) (continued) Level 3 Inputs - Significant Recurring Assets and Liabilities The following table presents quantitative information about the significant unobservable inputs within significant Level 3 recurring assets and liabilities. Fair Value at September 30, 2015 Valuation Technique Unobservable Inputs Range (in thousands) Financial Assets: Asset-backed securities Financing bonds $ 1,571,741 Discounted Cash Flow Discount Rate (1) 0.79% - 2.01% (1.10%) Sale-leaseback securities $ 50,986 Consensus Pricing (2) Offered quotes (3) 130.15 % Retail installment contracts held for investment $ 374,158 Discounted Cash Flow ABS (4) 0.40 % Prepayment rate (CPR) (5) 11.00 % Discount Rate (6) 5.95% - 12.00% (10.63%) Recovery Rate (7) 25.00% - 43.00% (31.67%) Mortgage servicing rights $ 143,535 Discounted Cash Flow Prepayment rate (CPR) (8) 0.01% - 36.43% (10.38%) Discount Rate (9) 9.90 % Mortgage banking interest rate lock commitments $ 5,480 Discounted Cash Flow Pull through percentage (10) 77.46 % MSR value (11) 0.71% - 1.07% (1.02%) Financial Liabilities: Total return settlement $ 53,322 Discounted Cash Flow Discount Rate (5) 8.72 % (1) Based on the applicable term and discount index. (2) Consensus pricing refers to fair value estimates that are generally developed using information such as dealer quotes or other third-party valuations or comparable asset prices. (3) Based on the nature of the input, a range or weighted average does not exist. For sale-lease back securities, the Company owns one security. (4) Based on the historical default rate and adjustments to reflect voluntary prepayments. (5) Based on the analysis of available data from a comparable market securitization of similar assets. (6) Based on the cost of funding of debt issuance and recent historical equity yields. (7) Based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. (8) Average CPR projected from collateral stratified by loan type, note rate and maturity. (9) Based on the nature of the input, a range or weighted average does not exist. (10) Historical weighted average based on principal balance calculated as the percentage of loans originated for sale divided by total commitments less outstanding commitments. (11) MSR value is the estimated value of the servicing right embedded in the underlying loan, expressed in basis points of outstanding unpaid principal balance. NOTE 16. FAIR VALUE (As Restated) (continued) Fair Value of Financial Instruments The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments are as follows: September 30, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and amounts due from depository institutions $ 4,619,782 $ 4,619,782 $ 4,619,782 $ — $ — Available-for-sale investment securities 21,051,184 21,051,184 10,528 19,417,929 1,622,727 Loans held for investment, net 75,816,054 75,683,065 — 89,338 75,593,727 Loans held-for-sale 2,990,708 3,041,325 — 3,041,325 — Restricted cash 2,431,103 2,431,103 2,431,103 — — Mortgage servicing rights 143,535 143,535 — — 143,535 Derivatives 424,424 424,424 — 418,929 5,495 Financial liabilities: Deposits 55,543,255 55,565,093 47,377,317 8,187,776 — Borrowings and other debt obligations 48,371,320 49,378,230 — 39,499,046 9,879,184 Derivatives 528,471 528,471 — 474,731 53,740 December 31, 2014 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) |
BUSINESS SEGMENT INFORMATION (A
BUSINESS SEGMENT INFORMATION (As Restated) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION (As Restated) | NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) Business Segment Products and Services The Company’s reportable segments are focused principally around the customers the Bank and SC serve. During the first quarter of 2016, certain management and business line changes became effective as the Company reorganized its management reporting in order to improve its structure and focus to better align management teams and resources with the business goals of the Company and provide enhanced customer service to its clients. Accordingly, the following changes were made within the Company's reportable segments to provide greater focus on each of its core businesses: • The small business banking, commercial business banking, and auto leasing lines of business formerly included in the Auto Finance and Business Banking reportable segment, were combined with the Consumer and Business Banking reportable segment. • The Real Estate and Commercial reportable segment was split into the Commercial Real Estate reportable segment and the Commercial Banking reportable segment. • The CEVF and dealer floor plan lines of business, formerly included in the Auto Finance & Business Banking reportable segment, were moved to the Commercial Banking business unit. • The internal FTP guidelines and methodologies were revised to align with Santander corporate criteria for internal management reporting. These FTP changes impact all reporting segments, excluding SC. NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) (continued) The Company has identified the following reportable segments: • The Consumer and Business Banking segment (formerly known as the Retail Banking segment) primarily comprises the Bank's branch locations, residential mortgage business and business banking customers. The branch locations offer a wide range of products and services to both consumers and business banking customers, which attract deposits by offering a variety of deposit instruments including demand and interest-bearing demand deposit accounts, money market and savings accounts, CDs and retirement savings products. The branch locations also offer consumer loans such as credit cards, and home equity loans and lines of credit, and business loans such as commercial lines of credit and business credit cards. In addition, investment services provide annuities, mutual funds, managed monies, and insurance products and acts as an investment brokerage agent to the customers of the Consumer and Business Banking segment. • The Commercial Banking segment currently provides commercial lines, loans, and deposits to medium and large business banking customers as well as financing and deposits for government entities, commercial loans to dealers and financing for commercial vehicles and municipal equipment. This segment also provides financing and deposits for government entities and niche product financing for specific industries, including oil and gas and mortgage warehousing, among others. • The Commercial Real Estate segment offers commercial real estate loans and multifamily loans to customers. • The Global Corporate Banking ("GCB") segment was formerly designated as the Global Corporate Banking & Market & Large Corporate Banking segment, and was renamed during the third quarter of 2015.. This segment was formerly designated as the Global Corporate Banking & Market & Large Corporate Banking segment and was renamed during the third quarter of 2015. This segment serves the needs of global commercial and institutional customers by leveraging the international footprint of the Santander group to provide financing and banking services to corporations with over $500 million in annual revenues. GCB's offerings and strategy are based on Santander's local and global capabilities in wholesale banking. • SCUSA is a specialized consumer finance company focused on vehicle finance and third-party servicing. SCUSA’s primary business is the indirect origination of retail installment contracts, principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. In conjunction with a ten -year private label financing agreement with the Chrysler Group that became effective May 1, 2013, SCUSA offers a full spectrum of auto financing products and services to Chrysler customers and dealers under the Chrysler Capital brand. These products and services include consumer retail installment contracts and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. SCUSA also originates vehicle loans through a web-based direct lending program, purchases vehicle retail installment contracts from other lenders, and services automobile, recreational and marine vehicle portfolios for other lenders. Additionally, SCUSA has several relationships through which it provides personal loans, private label credit cards and other consumer finance products. During 2015, SCUSA announced its intention to exit the personal lending business. SCUSA has entered into a number of intercompany agreements with the Bank as described above as part of the Auto Finance & Business Banking segment. All intercompany revenue and fees between the Bank and SCUSA are eliminated in the consolidated results of the Company. The Other category includes earnings from the investment portfolio, interest from the non-strategic assets portfolio, interest expense on the Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. For segment reporting purposes, SCUSA continues to be managed as a separate business unit. The Company’s segment results, excluding SCUSA, are derived from the Company’s business unit profitability reporting system by specifically attributing managed balance sheet assets, deposits and other liabilities and their related interest income or expense to each of the segments. Funds transfer pricing methodologies are utilized to allocate a cost for funds used or a credit for funds provided to business line deposits, loans and selected other assets using a matched funding concept. The methodology includes a liquidity premium adjustment, which considers an appropriate market participant spread for commercial loans and deposits by analyzing the mix of borrowings available to the Company with comparable maturity periods. NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) (continued) Other income and expenses are managed directly by each business line, including fees, service charges, salaries and benefits, and other direct expenses, as well as certain allocated corporate expenses, and are accounted for within each segment’s financial results. Accounting policies for the lines of business are the same as those used in preparation of the Condensed Consolidated Financial Statements with respect to activities specifically attributable to each business line. However, the preparation of business line results requires management to establish methodologies to allocate funding costs and benefits, expenses and other financial elements to each line of business. Where practical, the results are adjusted to present consistent methodologies for the segments. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, prior period information is reclassified wherever practicable. Certain segments previously deemed quantitatively significant no longer met the threshold and have been combined with the Other category as of September 30, 2015 . Prior period results have been recast to conform to the new composition of the reportable segments. NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) (continued) Results of Segments The following tables present certain information regarding the Company’s segments. For the Three-Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2015 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 214,208 $ 70,445 $ 67,302 $ 54,381 $ (20,594 ) $ 1,176,411 $ 71,620 $ 116 $ 1,633,889 Total non-interest income 167,696 12,431 23,158 19,047 22,852 382,700 101,102 (9,991 ) 718,995 Gain on change in control — — — — — — — — — Provision/(release) for credit losses 7,094 (6,329 ) 9,898 (10,931 ) (18,357 ) 723,921 231,869 — 937,165 Total expenses 442,843 44,993 17,427 26,410 93,197 462,214 15,034 (13,975 ) 1,088,143 (Loss)/Income before income taxes (68,033 ) 44,212 63,135 57,949 (72,582 ) 372,976 (74,181 ) 4,100 327,576 Intersegment revenue/(expense) (1) 238 1,203 368 (2,241 ) 432 — — — — Total assets 21,944,625 15,796,714 15,012,129 12,200,062 30,703,998 35,329,343 — — 130,986,871 For the Nine-Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2015 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 627,152 $ 202,833 $ 202,126 $ 157,555 $ (18,189 ) $ 3,469,970 $ 342,018 $ 260 $ 4,983,725 Total non-interest income 523,337 35,704 39,324 60,437 67,397 1,137,296 184,390 (38,304 ) 2,009,581 Gain on change in control — — — — — — — — — Provision/(release) for credit losses 33,779 1,370 22,694 (5,173 ) 12,706 1,935,147 955,532 — 2,956,055 Total expenses 1,306,508 135,966 54,392 79,310 203,182 1,360,708 43,438 (40,849 ) 3,142,655 (Loss)/Income before income taxes (189,798 ) 101,201 164,364 143,855 (166,680 ) 1,311,411 (472,562 ) 2,805 894,596 Intersegment revenue/(expense) (1) 891 2,961 1,467 (5,886 ) 567 — — — — Total assets 21,944,625 15,796,714 15,012,129 12,200,062 30,703,998 35,329,343 — — 130,986,871 (1) Intersegment revenue/(expense) represents charges or credits for funds used or provided by each of the segments and is included in net interest income. (2) Other is not considered a segment and includes earnings from non-strategic assets, the investment portfolio, interest expense on the Bank’s and Holding Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SCUSA by analyzing the pre-Change in Control results of SCUSA as disclosed in this column. (4) Purchase Price Adjustments represents the impact that SCUSA purchase marks had on the results of SCUSA included within the consolidated operations of SHUSA, while eliminations eliminate intercompany transactions. NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) (continued) For the Three- Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2014 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 206,182 $ 62,548 $ 65,060 $ 46,536 $ 21,507 $ 1,054,292 $ 159,849 $ 29 $ 1,616,003 Total non-interest income 205,135 11,496 6,791 21,072 38,777 289,209 47,486 (16,220 ) 603,746 Provision/(release) for credit losses 36,083 34,032 (84,235 ) 7,990 6,130 722,159 24,504 — 746,663 Total expenses 405,533 38,671 23,770 26,142 71,486 343,617 15,153 (14,784 ) 909,588 Income/(loss) before income taxes (30,299 ) 1,341 132,316 33,476 (17,332 ) 277,725 167,678 (1,407 ) 563,498 Intersegment revenue/(expense) (1) 257 1,493 62 (1,653 ) (159 ) — — — — Total assets 21,882,105 14,288,909 14,161,237 9,807,122 22,964,250 30,817,353 — — 113,920,976 For the Nine- Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2014 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 615,362 $ 177,879 $ 187,445 $ 131,695 $ 69,304 $ 3,117,685 $ 381,554 $ (332,746 ) $ 4,348,178 Total non-interest income 423,750 35,563 28,013 56,512 95,861 741,125 293,909 (88,886 ) 1,585,847 Gain on Change in Control — — — — — — 2,417,563 — 2,417,563 Provision/(release) for credit losses 54,711 (3,240 ) (95,339 ) 6,228 (2,360 ) 1,829,307 59,633 (215,051 ) 1,633,889 Total expenses 1,131,708 111,574 62,740 72,620 183,024 1,134,571 120,601 (256,464 ) 2,560,374 Income/(loss) before income taxes (147,307 ) 105,108 248,057 109,359 (15,499 ) 894,932 2,912,792 49,883 4,157,325 Intersegment revenue/(expense) (1) 851 3,643 839 (5,451 ) 118 — — — — Total assets 21,882,105 14,288,909 14,161,237 9,807,122 22,964,250 30,817,353 — — 113,920,976 (1) Intersegment revenue/(expense) represents charges or credits for funds used or provided by each of the segments and is included in net interest income. (2) Other is not considered a segment and includes earnings from non-strategic assets, the investment portfolio, interest expense on the Bank’s and Holding Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SCUSA by analyzing the pre-Change in Control results of SCUSA as disclosed in this column. (4) Purchase Price Adjustments represent the impact that SCUSA purchase marks had on the results of SCUSA included within the consolidated operations of SHUSA, while eliminations adjust for the one month that SHUSA accounted for SCUSA as an equity method investment and eliminate intercompany transactions. REVIEW OF FINANCIAL MEASURES The Chief Operating Decision Maker ("CODM"), as described by ASC 280, Segment Reporting, manages SCUSA on a historical basis by reviewing the results of SCUSA on a pre-Change in Control basis. The Results of Segments table discloses SCUSA's operating information on the same basis that it is reviewed by SHUSA's CODM to reconcile to SCUSA's GAAP results, purchase price adjustments and accounting for SCUSA as an equity method investment. |
RESTATEMENTS
RESTATEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENTS | RESTATEMENTS Subsequent to the issuance of the Company's September 30, 2015 Consolidated Financial Statements, the Company identified errors in its historical financial statements, including for the three and nine months ended September 30, 2015 and 2014. Accordingly, the Company has restated the unaudited interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2015 and 2014 to reflect the error corrections. The most significant errors originate from SC, a significant subsidiary of the Company. Correction of Errors 1. Errors previously disclosed in the Company Annual Report on Form 10-K for the year ended December 31, 2015 Form filed on April 14, 2016 (the "Original 10-K"): • The Company determined that its historical methodology for estimating the credit loss allowance for RICs held for investment was in error as it did not estimate impairment on TDRs separately from a general credit loss allowance on loans not classified as TDRs, and incorrectly applying a loss emergence period to the entire portfolio rather than only to loans not classified as TDRs. In addition, the Company determined that it had incorrectly identified the population of loans that should be classified and disclosed as TDRs and, separately, had incorrectly estimated the impairment on these loans, as of each of these balance sheet dates. The Company has corrected its allowance methodology accordingly, and has determined, based on the corrected methodology, the ACL reported on the condensed consolidated balance sheets was overstated by $110.9 million and $358.2 million at September 30, 2015 and December 31, 2014, respectively. • The Company determined that subvention payments related to leased vehicles were incorrectly classified within the Consolidated Statements of Operations as an addition to Leased vehicle income rather than a reduction of Leased vehicle expense. There was no impact to net income as a result of this change. The impact of the corrections of the above errors on the financial statements for the three and nine months ended September 30, 2015 and 2014 was disclosed in Part II, Item 9B, of the Annual Report on Form 10-K for the year ended December 31, 2015. 2. Errors identified subsequent to the filing of the Original Filing: • The Company previously used the loans' original contractual interest rate as the discount rate applied to the expected cash flows to determine TDR impairment. ASC 310-40-35-12 requires that expected future cash flows be discounted using the original effective interest rate. The Company has corrected the discount rate used in the determination of TDR impairment and has determined that the allowance was un derstated, and the net carrying balance of retail installment contracts held for investment accordingly overstated, by $53.8 million and $1.0 million as of September 30, 2015 and December 31, 2014, respectively, related to this methodo logy error. This error also impacted the provision for credit losses in the consolidated statements of income and comprehensive income, as noted in the tables below, and related disclosures. • The Company has determined that its application of the retrospective effective interest method for accreting discounts, subvention payments from manufacturers, and other origination costs (collectively "discount") on retail installment contracts held for investment was in error, as (i) these cost basis adjustments were accreted over the average life of a loan rather than the aggregate life of a loan pool, (ii) defaults were inappropriately considered in the estimate of future principal prepayments, (iii) the portfolio was not adequately segmented to consider different prepayment performance based on credit quality and term, (iv) remaining unaccreted balances at charge-off were being recorded as interest income rather than as reductions of the net charge-off, and (v) the unaccreted discount component of TDR carrying value was misstated, resulting in inaccurate TDR impairment. NOTE 18. RESTATEMENTS (continued) (i) The Company previously had accreted discounts over the average life of the loan portfolio. However, Examples 3 and 4 in the implementation guidance to ASC 310-20, Receivables - Nonrefundable Fees and Other Costs , provide guidance on the projection of cash flows for a pool of loans and the treatment of actual and anticipated prepayments for determining the effective interest rate under the retrospective method. The guidance demonstrates an application that aligns with the aggregate life of the loan pool rather than the average life concept. Under the average life method previously applied by the Company, anticipated prepayments shortened the life of the portfolio and maintained the portfolio monthly cash flow constant, i.e., incorrectly accelerated the accretion of discount. Accordingly, management has determined that the use of the average life was in error. (ii) The Company previously had considered all types of liquidations, both voluntary prepayments and charge offs, as prepayments for purposes of determining a prepayment assumption. However, the application of a prepayment assumption as described in ASC 310-20-35-26 does not allow for future expected defaults to be considered in the assumption. Accordingly, management has determined that the inclusion of future expected defaults in the prepayment assumption was in error. (iii) The Company previously had aggregated all loans in the RIC portfolio held for investment portfolio into one pool for the purpose of estimating prepayments and determining the effective interest rate under the retrospective method. ASC 310-20-35-30 provides some characteristics to be considered when aggregating a large number of similar loans for this purpose. Management has determined that there is differentiation in prepayment behavior within its loan portfolio based on characteristics including credit quality, maturity, and period of origination. Accordingly, management has determined that the absence of segmentation into pools of homogeneous loans was in error. (iv) The Company previously had recorded charge offs based on unpaid principal balance ("UPB"). The accretion of discount of charged-off loans was previously reported as interest income. However, ASC 310-10, Receivables, refers to the recorded investment in a loan as the appropriate accounting basis. ASC 310-10-35-24 specifies that the recorded investment includes adjustments such as unamortized premium or discount. Accordingly, management has determined that the unaccreted discounts remaining at the charge off should be included in the net charge off amount recorded. (v) As a result of the incorrect accretion methodology, as well as the exclusion of unaccreted discount, the recorded investment in TDRs was misstated, resulting in a misstatement of TDR impairment. The Company has corrected its accretion methodology and has determined that the various aspects had the following impacts as of each balance sheet date: September 30, 2015 December 31, 2014 (in thousands) Overstatement of loans held for investment $ 79,177 $ 28,647 Overstatement of allowance (TDR impairment) 6,326 817 This error also had the following impacts on the Condensed Consolidated Statements of Operations and Comprehensive Income: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (in thousands) Overstatement of Interest income - Loans $ (49,372 ) $ (9,253 ) $ (115,790 ) $ (38,604 ) Overstatement of Provision for credit losses 45,432 13,667 77,464 15,947 Understatement of Miscellaneous income 2,283 (2,364 ) 7,753 2,358 $ (1,657 ) $ 2,050 $ (30,573 ) $ (20,299 ) NOTE 18. RESTATEMENTS (continued) • The Company previously omitted the consideration of net discounts when estimating the allowance for credit losses for the non-TDR portfolio of retail installment contracts held for investment under ASC 450-20. Accordingly, management has determined that the omission of consideration of net discounts in the allowance was in error. The Company has corrected its allowance methodology to take net unaccreted discounts into consideration, and has determined that the allowance was overstated, and the net carrying balance of retail installment contracts held for investment accordingly understated, by $81.7 million and $49.2 million as of September 30, 2015 and December 31, 2014, respectively, related to this methodology error. This error also impacted the provision for credit losses in the consolidated statements of income and comprehensive income, as noted in the tables below, and related disclosures. • During the year ended December 31, 2015, the Company had recognized $12.3 million in severance related expenses, $9.9 million in stock compensation expense and a liability of $115.1 million in contemplation of the amounts and benefits payable to the former CEO of SC pursuant to a Separation Agreement among Mr. Dundon, SC, DDFS LLC, SHUSA and Santander. However, the Company has subsequently determined that the previous accounting for the expenses and liabilities contemplated in the Separation Agreement was in error as such expenses and liabilities should not have been recorded until all applicable conditions have been satisfied, including that all regulatory approvals have been obtained. Accordingly, the accompanying restated consolidated financial statements as of and for the year ended December 31, 2015 do not include any expense or liability associated with the Separation Agreement. Further, in the absence of satisfaction of applicable conditions, Mr. Dundon's remaining unexercised vested options are considered to have expired subsequent to his termination without cause; accordingly, the restated financial statements reflect the removal of the deferred tax asset associated with the previously recorded compensation expense related to Mr. Dundon's vested but unexercised options. • The Company had originally recorded a gain on the Change in Control of SC of $2.43 billion during the year-ended December 31, 2014 and goodwill in the amount $5.47 billion at January 28, 2014. As a result of the corrections at SC that impacted the carrying value of assets and liabilities acquired by SHUSA at the Change in Control, SHUSA recognized a gain on the Change in Control of $2.42 billion during the nine month period ended September 30, 2014 and goodwill in the amount of $5.53 billion . • The Company recorded a $50.0 million indefinite-lived intangible at the Change in Control of SC. During the quarter ended December 31, 2015, as part of the Step 2 goodwill impairment analysis, the Company performed a valuation of the intangible assets allocated to the SC reporting unit as of December 31, 2015. The Company's impairment analysis concluded that the estimated fair value of the indefinite-lived trade name was lower than its carrying value. As such, the Company originally recorded an $11.7 million impairment charge during the fourth quarter of 2015 and an additional impairment charge of $20.3 million during in the first quarter of 2016. The trade name, as restated, reflects the correction of an error to reflect an impairment charge to the trade name attributed to the fourth quarter of 2014 in the amount of $28.5 million . The impairments in 2014 were recorded within amortization expense of intangible assets. • The Company originally recorded an $97.5 million impairment of capitalized software during the second quarter of 2014 for software that was no longer in use or determined to be improperly capitalized. The Company concluded that $33.3 million and $3.3 million of the impairment charge should have been recorded in the quarters ended December 31, 2013 and March 31, 2014, respectively, when the software was originally capitalized. In addition to the restatement of the Company's Condensed Consolidated Financial Statements, certain information within the following notes to the consolidated financial statements has been restated to reflect the corrections of errors discussed above as well as other, less significant errors and/or to add disclosure language as appropriate. • Note 3 Business Combinations • Note 5 Loans and Allowance for Credit Losses • Note 6 Leased Vehicles • Note 7 Variable Interest Entities NOTE 18. RESTATEMENTS (continued) • Note 8 Goodwill and Other Intangibles • Note 9 Other Assets • Note 11 Derivatives • Note 12 Income Taxes • Note 14 Commitments, Contingencies, and Guarantees • Note 16 Fair Value • Note 17 Business Segment Information The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Cash and cash equivalents $ 4,669,373 $ — $ 4,669,373 $ (49,591 ) $ 4,619,782 Loans held-for-investment 78,709,721 (46,329 ) 78,663,392 (80,194 ) 78,583,198 Allowance for loan and lease losses (2,912,346 ) 110,943 (2,801,403 ) 34,259 (2,767,144 ) Net loans held-for-investment 75,797,375 64,614 75,861,989 (45,935 ) 75,816,054 Leased vehicles, net 8,084,712 — 8,084,712 (12,517 ) 8,072,195 Goodwill 8,892,011 — 8,892,011 59,473 8,951,484 Intangible assets, net 686,457 — 686,457 (28,500 ) 657,957 Other assets 1,811,214 — 1,811,214 133,574 1,944,788 Total assets 130,865,753 64,614 130,930,367 56,504 130,986,871 Accrued expenses and payables 1,691,565 — 1,691,565 (166,233 ) 1,525,332 Advance payments by borrowers for taxes and insurance 210,285 — 210,285 (1,764 ) 208,521 Deferred tax liabilities, net 1,217,066 19,106 1,236,172 43,547 1,279,719 Other liabilities 595,527 — 595,527 117,985 713,512 Total liabilities 107,629,018 19,106 107,648,124 (6,465 ) 107,641,659 Common stock and paid-in capital 14,717,564 — 14,717,564 11,942 14,729,506 Retained earnings 4,111,611 27,878 4,139,489 5,242 4,144,731 Total SHUSA stockholder's equity 18,955,747 27,878 18,983,625 17,184 19,000,809 Noncontrolling interest 4,280,988 17,630 4,298,618 45,785 4,344,403 Total stockholder's equity 23,236,735 45,508 23,282,243 62,969 23,345,212 Total liabilities and stockholder's equity $ 130,865,753 $ 64,614 $ 130,930,367 $ 56,504 $ 130,986,871 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of December 31, 2014 . As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Cash and cash equivalents $ 2,234,725 $ — $ 2,234,725 $ (32,942 ) $ 2,201,783 Loans held-for-investment 76,032,562 (8,448 ) 76,024,114 (28,647 ) 75,995,467 Allowance for loan and lease losses (2,108,817 ) 358,174 (1,750,643 ) 49,041 (1,701,602 ) Net loans held-for-investment 73,923,745 349,726 74,273,471 20,394 74,293,865 Leased vehicles, net 6,638,115 — 6,638,115 (14,145 ) 6,623,970 Goodwill 8,892,011 — 8,892,011 59,473 8,951,484 Intangible assets, net 735,488 — 735,488 (28,500 ) 706,988 Other assets 2,860,121 (30,271 ) 2,829,850 39,730 2,869,580 Total assets 118,457,415 319,455 118,776,870 44,010 118,820,880 Accrued expenses and payables 1,902,278 — 1,902,278 (11,043 ) 1,891,235 Borrowings and other debt obligations (3) 39,709,653 (30,271 ) 39,679,382 — 39,679,382 Advance payments by borrowers for taxes and insurance 167,670 — 167,670 (1,526 ) 166,144 Deferred tax liabilities, net 1,025,948 141,133 1,167,081 (7,110 ) 1,159,971 Other liabilities 673,764 — 673,764 48,921 722,685 Total liabilities 95,953,320 110,862 96,064,182 29,242 96,093,424 Stockholder's equity Retained earnings 3,714,642 122,480 3,837,122 9,295 3,846,417 Total SHUSA stockholder's equity 18,543,286 122,480 18,665,766 9,295 18,675,061 Noncontrolling interest 3,960,809 86,113 4,046,922 5,473 4,052,395 Total stockholder's equity 22,504,095 208,593 22,712,688 14,768 22,727,456 Total liabilities and stockholder's equity $ 118,457,415 $ 319,455 $ 118,776,870 $ 44,010 $ 118,820,880 (1) Originally reported amounts included in the Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 18, 2015. (2) Reported amounts included in the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. (3) The changes to borrowings and other debt obligations illustrate the impact of the Company's adoption of ASU 2015-03 which required retrospective adoption and are not the result of a correction of an error. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the nine-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Interest on loans $ 5,690,548 $ — $ 5,690,548 $ (115,790 ) $ 5,574,758 Total interest income 5,975,520 — 5,975,520 (115,790 ) 5,859,730 Net interest income 5,099,515 — 5,099,515 (115,790 ) 4,983,725 Provision for credit losses 2,728,118 285,112 3,013,230 (57,175 ) 2,956,055 Net interest income after provision for credit losses 2,371,397 (285,112 ) 2,086,285 (58,615 ) 2,027,670 Consumer fees 324,119 — 324,119 7,959 332,078 Lease income 1,328,401 (316,636 ) 1,011,765 5,946 1,017,711 Miscellaneous income 376,630 — 376,630 7,754 384,384 Total fees and other income 2,287,287 (316,636 ) 1,970,651 21,659 1,992,310 Total non-interest income 2,304,558 (316,636 ) 1,987,922 21,659 2,009,581 Compensation and benefits 1,012,887 — 1,012,887 (22,221 ) 990,666 Occupancy and equipment expenses 397,769 — 397,769 (122 ) 397,647 Loan expense 296,135 — 296,135 (21,613 ) 274,522 Lease expense 1,068,137 (316,636 ) 751,501 4,444 755,945 Other administrative expenses 257,850 — 257,850 697 258,547 Total general and administrative expenses 3,405,969 (316,636 ) 3,089,333 (38,815 ) 3,050,518 Income/(loss) before income taxes 1,177,849 (285,112 ) 892,737 1,859 894,596 Income tax provision/(benefit) 474,708 (122,027 ) 352,681 10,671 363,352 Net income/(loss) including noncontrolling interest 703,141 (163,085 ) 540,056 (8,812 ) 531,244 Less: net income/(loss) attributable to noncontrolling interest 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Net income/(loss) attributable to SHUSA $ 407,919 $ (94,602 ) $ 313,317 $ (4,053 ) $ 309,264 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the three-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Interest on loans $ 1,884,226 $ — $ 1,884,226 $ (49,373 ) $ 1,834,853 Total interest income 1,982,824 — 1,982,824 (49,373 ) 1,933,451 Net interest income 1,683,262 — 1,683,262 (49,373 ) 1,633,889 Provision for credit losses 854,180 124,424 978,604 (41,439 ) 937,165 Net interest income after provision for credit losses 829,082 (124,424 ) 704,658 (7,934 ) 696,724 Consumer fees 119,902 — 119,902 2,627 122,529 Lease income 486,510 (124,918 ) 361,592 3,042 364,634 Miscellaneous income 138,071 — 138,071 2,283 140,354 Total fees and other income 837,954 (124,918 ) 713,036 7,952 720,988 Total non-interest income 835,961 (124,918 ) 711,043 7,952 718,995 Compensation and benefits 365,071 — 365,071 (21,016 ) 344,055 Occupancy and equipment expenses 128,990 — 128,990 (122 ) 128,868 Loan expense 89,944 — 89,944 (4,226 ) 85,718 Lease expense 384,276 (124,918 ) 259,358 2,310 261,668 Other administrative expenses 93,190 — 93,190 (5,040 ) 88,150 Total general and administrative expenses 1,211,424 (124,918 ) 1,086,506 (28,094 ) 1,058,412 Income/(loss) before income taxes 423,888 (124,424 ) 299,464 28,112 327,576 Income tax provision/(benefit) 241,764 (51,174 ) 190,590 10,779 201,369 Net income/(loss) including noncontrolling interest 182,124 (73,250 ) 108,874 17,333 126,207 Less: net income/(loss) attributable to noncontrolling interest 100,237 (31,346 ) 68,891 6,492 75,383 Net income/(loss) attributable to SHUSA $ 81,887 $ (41,904 ) $ 39,983 $ 10,841 $ 50,824 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the nine-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Loans $ 4,948,106 $ — $ 4,948,106 $ (38,603 ) $ 4,909,503 Available-for-sale 183,158 — 183,158 (834 ) 182,324 Total interest income 5,164,025 — 5,164,025 (39,437 ) 5,124,588 Net interest income 4,387,615 — 4,387,615 (39,437 ) 4,348,178 Provision for credit losses 2,034,721 (343,620 ) 1,691,101 (57,212 ) 1,633,889 Net interest income after provision for credit losses 2,352,894 343,620 2,696,514 17,775 2,714,289 Consumer fees 273,128 — 273,128 2,924 276,052 Equity method investments income/(loss), net 7,607 — 7,607 476 8,083 Lease income 651,458 (126,444 ) 525,014 (8,296 ) 516,718 Miscellaneous income 469,295 — 469,295 2,354 471,649 Total fees and other income 1,703,353 (126,444 ) 1,576,909 (2,542 ) 1,574,367 Gain on Change in Control 2,428,539 — 2,428,539 (10,976 ) 2,417,563 Net gain/(loss) recognized in earnings 2,440,019 — 2,440,019 (10,976 ) 2,429,043 Total non-interest income 4,143,372 (126,444 ) 4,016,928 (13,518 ) 4,003,410 Compensation and benefits 894,051 — 894,051 (1,371 ) 892,680 Lease expense 508,038 (126,444 ) 381,594 3,966 385,560 Other administrative expenses 240,764 — 240,764 (17,138 ) 223,626 Total general and administrative expenses 2,530,262 (126,444 ) 2,403,818 (14,543 ) 2,389,275 Impairment of capitalized software 97,546 — 97,546 (33,000 ) 64,546 Total other expenses 204,099 — 204,099 (33,000 ) 171,099 Income/(loss) before income taxes 3,761,905 343,620 4,105,525 51,800 4,157,325 Income tax provision/(benefit) 1,285,855 138,833 1,424,688 77,687 1,502,375 Net income/(loss) including noncontrolling interest 2,476,050 204,787 2,680,837 (25,887 ) 2,654,950 Less: net income/(loss) attributable to noncontrolling interest 298,633 84,542 383,175 291 383,466 Net income/(loss) attributable to SHUSA $ 2,177,417 $ 120,245 $ 2,297,662 $ (26,178 ) $ 2,271,484 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the three-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Loans $ 1,822,275 $ — $ 1,822,275 $ (9,252 ) $ 1,813,023 Available-for-sale 61,290 — 61,290 (221 ) 61,069 Total interest income 1,895,020 — 1,895,020 (9,473 ) 1,885,547 Net interest income 1,625,476 — 1,625,476 (9,473 ) 1,616,003 Provision for credit losses 1,013,357 (208,119 ) 805,238 (58,575 ) 746,663 Net interest income after provision for credit losses 612,119 208,119 820,238 49,102 869,340 Consumer fees 93,451 — 93,451 (268 ) 93,183 Equity method investments (loss)/income, net (4,619 ) — (4,619 ) 222 (4,397 ) Lease income 269,966 (38,183 ) 231,783 515 232,298 Miscellaneous income 129,433 — 129,433 (2,366 ) 127,067 Total fees and other income 643,695 (38,184 ) 605,511 (1,896 ) 603,615 Total non-interest income 643,826 (38,184 ) 605,642 (1,896 ) 603,746 Compensation and benefits 290,665 — 290,665 (544 ) 290,121 Loan expense 80,392 — 80,392 576 80,968 Lease expense 208,879 (38,183 ) 170,696 8,117 178,813 Other administrative expenses 111,576 — 111,576 (21,120 ) 90,456 Total general and administrative expenses 919,743 (38,183 ) 881,560 (12,971 ) 868,589 Deposit insurance premiums and other costs 14,967 — 14,967 (9 ) 14,958 Total other expenses 41,008 — 41,008 (9 ) 40,999 Income/(loss) before income taxes 295,194 208,118 503,312 60,186 563,498 Income tax provision/(benefit) 36,102 84,192 120,294 88,009 208,303 Net income/(loss) including noncontrolling interest 259,092 123,926 383,018 (27,823 ) 355,195 Less: net income/(loss) attributable to noncontrolling interest 54,420 51,166 105,586 5,733 111,319 Net income/(loss) attributable to SHUSA $ 204,672 $ 72,760 $ 277,432 $ (33,556 ) $ 243,876 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the t hree-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 703,141 $ (163,085 ) $ 540,056 $ (8,812 ) $ 531,244 Comprehensive income 730,678 (163,085 ) 567,593 (8,812 ) 558,781 Comprehensive income attributable to noncontrolling interest 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Comprehensive income attributable to SHUSA $ 435,456 $ (94,602 ) $ 340,854 $ (4,053 ) $ 336,801 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 2,476,050 $ 204,787 $ 2,680,837 $ (25,887 ) $ 2,654,950 Comprehensive income 2,612,470 204,787 2,817,257 (25,887 ) 2,791,370 Comprehensive income attributable to noncontrolling interest 298,633 84,542 383,175 291 383,466 Comprehensive income attributable to SHUSA $ 2,313,837 $ 120,245 $ 2,434,082 $ (26,178 ) $ 2,407,904 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the three-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 182,124 $ (73,250 ) $ 108,874 $ 17,333 $ 126,207 Comprehensive income 238,753 (73,250 ) 165,503 17,333 182,836 Comprehensive income attributable to noncontrolling interest 100,237 (31,346 ) 68,891 6,492 75,383 Comprehensive income attributable to SHUSA $ 138,516 $ (41,904 ) $ 96,612 $ 10,841 $ 107,453 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the three-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 259,092 $ 123,926 $ 383,018 $ (27,823 ) $ 355,195 Comprehensive income 259,048 123,926 382,974 (27,823 ) 355,151 Comprehensive income attributable to noncontrolling interest 54,420 51,166 105,586 5,733 111,319 Comprehensive income attributable to SHUSA $ 204,628 $ 72,760 $ 277,388 $ (33,556 ) $ 243,832 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the t hree-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Stockholder's Equity for the nine-month period ended September 30, 2015 : Common Stock and Paid-in Capital As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Impact of SCUSA Stock Option Activity $ (13,946 ) $ — $ (13,946 ) $ 11,942 $ (2,004 ) Balance, End of period $ 14,717,564 $ — $ 14,717,564 $ 11,942 $ 14,729,506 Retained Earnings As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 3,714,642 $ 122,480 $ 3,837,122 $ 9,295 $ 3,846,417 Comprehensive income attributable to SHUSA 407,919 (94,602 ) 313,317 (4,053 ) 309,264 Balance, End of period $ 4,111,611 $ 27,878 $ 4,139,489 $ 5,242 $ 4,144,731 Non-Controlling Interest As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 3,960,809 $ 86,113 $ 4,046,922 $ 5,473 $ 4,052,395 Comprehensive income attributable to NCI 295,222 $ (68,483 ) 226,739 $ (4,759 ) 221,980 Impact of SCUSA Stock Option Activity 24,957 $ — 24,957 $ 45,071 70,028 Balance, End of period $ 4,280,988 $ 17,630 $ 4,298,618 $ 45,785 $ 4,344,403 Total Stockholder's Equity As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 22,504,095 $ 208,593 $ 22,712,688 $ 14,768 $ 22,727,456 Comprehensive income attributable to SHUSA 435,456 (94,602 ) 340,854 (4,053 ) 336,801 Comprehensive income attributable to NCI 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Impact of SCUSA Stock Option Activity 11,011 — 11,011 57,013 68,024 Balance, End of period $ 23,236,735 $ 45,508 $ 23,282,243 $ 62,969 $ 23,345,212 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Stockholder's Equity for the nine-month period ended September 30, 2014 : Retained Earnings As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 1,394,090 $ — $ 1,394,090 $ 32,115 $ 1,426,205 Comprehensive income attributable to SHUSA 2,177,417 120,245 2,297,662 (26,178 ) 2,271,484 Balance, End of period $ 3,560,557 $ 120,245 $ 3,680,802 $ 5,937 $ 3,686,739 Non-Controlling Interest As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Comprehensive income attributable to NCI $ — $ 383,175 $ 383,175 $ 291 $ 383,466 SCUSA Change in Control 3,872,370 (402,935 ) 3,469,435 14,010 3,483,445 Dividends paid to NCI — — — (20,667 ) (20,667 ) Impact of SCUSA Stock Option Activity — 104,301 104,301 6,657 110,958 Balance, End of period $ 3,872,370 $ 84,541 $ 3,956,911 $ 291 $ 3,957,202 Total Stockholder's Equity As Originally Reported (1) Corrections As Reported (2) Corrections As Restate |
BASIS OF PRESENTATION AND ACC26
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries, including the Bank, SCUSA, and certain special purpose financing trusts utilized in financing transactions that are considered variable interest entities ("VIEs"). The Company consolidates VIEs for which it is deemed the primary beneficiary. The Condensed Consolidated Financial Statements have been prepared by the Company, without audit, pursuant to SEC regulations. All intercompany balances and transactions have been eliminated in consolidation. Additionally, where applicable, the Company's accounting policies conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. However, in the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Statements of Operations, Condensed Statements of Comprehensive Income, Condensed Statements of Stockholder's Equity and Condensed Statements of Cash Flows for the periods indicated, and contain adequate disclosure to make the information presented not misleading. |
Changes in Accounting Policies and Recent Accounting Developments | Changes in Accounting Policies During the first quarter of 2015, the Company adopted the following Financial Accounting Standards Board (the "FASB") Accounting Standards Updates ("ASUs"), none of which had a material impact to the Company's Condensed Consolidated financial statements: • The Company adopted the FASB ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects, which allows an entity to make an accounting policy election to account for its investments in qualified affordable housing projects using the proportional amortization method, if certain conditions are met. Under this method, an investor would amortize the cost of its investments in proportion to the tax credits and other tax benefits received and will recognize the amortization, net of tax credits and other tax benefits, in the income statement as a component of income tax expense. This ASU is required to be adopted on a retrospective basis for all periods presented. The adoption of this ASU did not have a material effect to the Company’s prior periods’ consolidated financial statements to warrant retrospective application. The cumulative effect of the adoption was recognized in the first quarter of 2015 and was not material to the Company’s Condensed Consolidated Financial Statements. NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) • The Company adopted FASB ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, on a prospective basis. Under this ASU, an in-substance repossession or foreclosure occurs when the creditor obtains legal title to the residential real estate property or the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The Company’s adoption of this ASU did not have a material effect on its Condensed Consolidated Financial Statements. • The Company adopted FASB ASU 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a government-guaranteed mortgage loan be de-recognized, and that a separate other receivable be recognized, upon foreclosure if the three criteria identified in the ASU are met. Upon foreclosure and meeting the three criteria, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) that is expected to be recovered from the guarantor. The Company’s adoption of this ASU did not have a material effect on its Condensed Consolidated Financial Statements. • During the third quarter of 2015, the Company early adopted FASB ASU 2015-03, Interest- Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis . This ASU simplifies the presentation of debt issuance costs and requires that debt issuance costs be presented as a deduction from the recognized debt liability, and eliminates prior guidance which required that debt issuance costs be recorded as a deferred charge. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , superseding the revenue recognition requirements in ASC 605. This ASU requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. In August 2015, the FASB issued ASU 2015-14, which formalized the deferral of the effective date of the amendment for a period of one-year from the original effective date. Following the issuance of ASU 2015-14, the amendment will be effective for the Company for the first annual period ending after December 15, 2017. The amendment should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early adoption of the guidance is not permitted. The Company is currently evaluating the impact of adopting this ASU on its financial position, results of operations and disclosures. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (Topic 718) . This ASU requires that a performance target that affects vesting, and could be achieved after the requisite service period, be treated as a performance condition. Application of existing guidance in ASC 718 as it relates to awards with performance conditions that affect vesting should continue to be used to account for such awards. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015. Adoption of this amendment should be applied on a prospective basis to awards that are granted or modified on or after the effective date. There also is an option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its financial position, results of operations and disclosures. In August 2014, the FASB also issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40). This ASU requires management to perform an assessment of going concern and provides specific guidance on when and how to assess or disclose going concern uncertainties. The new standard also defines terms used in the evaluation of going concern, such as "substantial doubt." Following application, the Company will be required to perform assessments at each annual and interim period, provide an assessment period of one year from the issuance date, and make disclosures in certain circumstances in which substantial doubt is identified. The amendment will be effective for the Company for the first reporting period ending after December 15, 2016. Earlier application is permitted. The Company does not expect the adoption of this ASU to have an impact on its financial position, result of operations, or disclosures. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This ASU eliminates the concept of extraordinary items from GAAP, which previously required the separate classification, presentation, and disclosure of extraordinary events and transactions. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015, with early adoption permitted if the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the amendment by the Company can be either on a prospective or retrospective basis. The Company plans to apply this amendment effective for reporting periods beginning after December 15, 2015 and will apply it prospectively, as the Company has not reported any extraordinary items in the three prior fiscal years. The Company does not expect the adoption of this ASU to have an impact on its financial position, results of operations, or disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis. This ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendment will be effective for the Company for the first reporting period ending after December 15, 2015, with early adoption permitted if the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the amendment by the Company may be on a retrospective or modified retrospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. NOTE 2. RECENT ACCOUNTING DEVELOPMENTS (continued) In May 2015, the FASB issued ASU 2015-7, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) (a consensus of the Emerging Issues Task Force). This ASU removes the requirement to categorize investments fair valued using the net asset value per share practical expedient within the fair value hierarchy. It also modifies disclosure requirements to include only investments for which the entity elects to use the practical expedient rather than the prior guidance which required disclosures for all investments eligible to use the practical expedient. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2015, with early adoption permitted. Adoption of the amendment by the Company must be on a retrospective basis for all periods presented. The Company is in the process of evaluating the impacts of the adoption of this ASU. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments. This amendment eliminates the requirement to retrospectively account for adjustments to provisional amounts recognized in a business combination. Instead, the acquirer will recognize the adjustments to provisional amounts during the period in which the adjustments are determined, including the effect on earnings of any amounts the acquirer would have recorded in previous periods if the accounting had been completed at the acquisition date. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2015, with earlier adoption permitted for financial statements that have not been issued. Adoption of the amendment by the Company must be on a prospective basis to adjustments to provisional amounts that occur after the effective date. The Company does not expect the adoption of this ASU to have an impact on its financial position, results of operations, or disclosures. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The most significant estimates pertain to consolidation, fair value measurements, allowance for loan and lease losses and reserve for unfunded lending commitments, estimates of expected residual values of leased vehicles subject to operating leases, goodwill, derivatives and hedge activities, and income taxes. Actual results may differ from the estimates, and the differences may be material to the Condensed Consolidated Financial Statements. |
Subsequent Events | Subsequent Events The Company evaluated events from the date of the Condensed Consolidated Financial Statements on September 30, 2015 through the Original Filing of these Condensed Consolidated Financial Statements and has determined that there have been no material events that would require recognition in its Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements for the quarter ended September 30, 2015 other than the transactions disclosed within Note 18 of these Condensed Consolidated Financial Statements. |
Troubled Debt Restructurings | Commercial Loan TDRs All of the Company’s commercial loan modifications are based on the circumstances of the individual customer, including specific customers' complete relationship with the Company. Loan terms are modified to meet each borrower’s specific circumstances at a point in time. Modifications for commercial loan TDRs generally, although not always, result in bifurcation of the original loan into A and B notes. The A note is restructured to allow for upgraded risk rating and return to accrual status after a sustained period of payment performance has been achieved (typically six months for monthly payment schedules). The B note, if any, is structured as a deficiency note; the balance is charged off but the debt is usually not forgiven. As TDRs, they will be subject to analysis for specific reserves by either calculating the present value of expected future cash flows or, if collateral-dependent, calculating the fair value of the collateral less its estimated cost to sell. The TDR classification will remain on the loan until it is paid in full or liquidated. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Loan TDRs The primary modification program for the Company’s residential mortgage and home equity portfolios is a proprietary program designed to keep customers in their homes and, when appropriate, prevent them from entering into foreclosure. The program is available to all customers facing a financial hardship regardless of their delinquency status. The main goal of the modification program is to review the customer’s entire financial condition to ensure that the proposed modified payment solution is affordable according to a specific debt-to-income ("DTI") ratio range. The main modification benefits of the program allow for term extensions, interest rate reductions, and/or deferment of principal. The Company reviews each customer on a case-by-case basis to determine which benefit or combination of benefits will be offered to achieve the target DTI range. For the Company’s other consumer portfolios, including retail installment contracts and autos, the terms of the modifications generally include one or a combination of the following: a reduction of the stated interest rate of the loan at a rate of interest lower than the current market rate for new debt with similar risk or an extension of the maturity date. Consumer TDRs are generally placed on non-accrual status until the Company believes repayment under the revised terms is reasonably assured and a sustained period of repayment performance has been achieved (typically six months for a monthly amortizing loan). Any loan that has remained current for the six months immediately prior to modification will remain on accrual status after the modification is enacted. Exceptions to this policy include retail installment contracts, which may begin accruing as soon as they are made current. The TDR classification will remain on the loan until it is paid in full or liquidated. In addition to those identified as TDRs above, the guidance also requires loans discharged under Chapter 7 bankruptcy to be considered TDRs and collateral-dependent, regardless of delinquency status. These loans must be written down to fair market value and classified as non-accrual/non-performing for the remaining life of the loan. During the quarter ended September 30, 2015, the Company reassessed its TDR definition and has determined that certain modifications should not be reported as a TDR. An example of that are retail installment contracts that have received modifications under the Service members Civil Relief Act (the "SCRA"). The inclusion of these modified loans were not material to prior periods. TDR Impact to Allowance for Loan Losses The allowance for loan losses is established to recognize losses inherent in funded loans intended to be held for investment that are probable and can be reasonably estimated. Prior to loans being placed in TDR, the Company generally measures its allowance under a loss contingency methodology in which consumer loans with similar risk characteristics are pooled and loss experience information is monitored for credit risk and deterioration with statistical tools considering factors such as delinquency, LTV and credit scores. Upon TDR modification, the Company generally measures impairment based on a present value of expected future cash flows methodology considering all available evidence using the effective interest rate or fair value of collateral. The amount of the required valuation allowance is equal to the difference between the loan’s impaired value and the recorded investment. When a consumer TDR subsequently defaults, the Company generally measures impairment based on the fair value of the collateral, if applicable, less its estimated cost to sell. Typically, commercial loans whose terms are modified in a TDR will have been identified as impaired prior to modification and accounted for generally using a present value of expected future cash flows methodology, unless the loan is considered collateral-dependent. Loans considered collateral-dependent are measured for impairment based on their fair values of collateral less its estimated cost to sell. Accordingly, upon TDR modification or if a TDR modification subsequently defaults, the allowance methodology remains unchanged. |
Commercial Lending Asset Quality Indicators | Commercial Lending Asset Quality Indicators Commercial credit quality disaggregated by class of financing receivables is summarized according to standard regulatory classifications as follows: PASS. Asset is well-protected by the current net worth and paying capacity of the obligor or guarantors, if any, or by the fair value less costs to acquire and sell any underlying collateral in a timely manner. SPECIAL MENTION. Asset has potential weaknesses that deserve management’s close attention, which, if left uncorrected, may result in deterioration of the repayment prospects for an asset at some future date. Special Mention assets are not adversely classified. SUBSTANDARD. Asset is inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. A well-defined weakness or weaknesses exist that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. DOUBTFUL. Exhibits the inherent weaknesses of a substandard credit. Additional characteristics exist that make collection or liquidation in full highly questionable and improbable, on the basis of currently known facts, conditions and values. Possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the credit, an estimated loss cannot yet be determined. LOSS. Credit is considered uncollectible and of such little value that it does not warrant consideration as an active asset. There may be some recovery or salvage value, but there is doubt as to whether, how much or when the recovery would occur. |
BUSINESS COMBINATIONS (As Res27
BUSINESS COMBINATIONS (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes these equity related interests in SCUSA which constitute the purchase price and the identified assets acquired and liabilities assumed: NOTE 3. BUSINESS COMBINATIONS (As Restated) (continued) January 28, 2014 (in thousands) Fair value of noncontrolling interest in SCUSA $ 3,273,265 Fair value of SCUSA employee vested stock options 210,181 Fair value of SHUSA remaining ownership interest in SCUSA 5,063,881 Fair value of equity-related interests in SCUSA $ 8,547,327 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 11,075 Restricted cash 1,704,906 Loan receivables - held for sale 990,137 Loan receivables - retail installment contracts 19,870,790 Loan receivables from dealers 102,689 Loan receivables - unsecured 1,009,896 Premises and equipment 74,998 Leased vehicles, net 2,486,929 Intangibles 768,750 Miscellaneous receivables and other assets 1,061,351 Deferred tax asset 7,210 Borrowings and other debt obligations (24,497,607 ) Accounts payable and accrued liabilities (570,852 ) Total identifiable net assets 3,020,272 Goodwill $ 5,527,055 |
Fair Value of Assets Acquired | The fair value of the assets acquired includes finance receivables. SHUSA estimated the fair value of loans acquired from SCUSA by utilizing a methodology in which similar loans were aggregated into pools. Cash flows for each pool were determined by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on a market rate for similar loans. There was no carryover of SCUSA's allowance for loan losses associated with the loans SHUSA acquired as the loans were initially recorded at fair value. NOTE 3. BUSINESS COMBINATIONS (As Restated) (continued) January 28, 2014 (in thousands) Fair value of loan receivables (1) $ 19,870,790 Gross contractual amount of loan receivables (1) 31,410,699 Estimate of contractual cash flows not expected to be collected at acquisition (1) 4,301,586 (1) Fair value of receivables does not include amounts related to the loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of the receivables. January 28, 2014 (in thousands) UPB (1) $ 20,343,356 UPB - FVO (2) 2,611,446 Total UPB 22,954,802 Purchase Marks (3) (3,084,012 ) Total 19,870,790 (1) UPB does not include amounts related to loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of the receivables. (2) The Company elected to account for these loans under the FVO. (3) Includes purchase marks of $741.1 million related to purchase loan portfolios on which we elected to apply the FVO. |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | January 28, 2014 Fair Value Weighted Average Amortization Period (dollars in thousands) Intangibles subject to amortization: Dealer networks $ 580,000 17.5 years (a) Chrysler relationship 138,750 9.2 years Intangibles not subject to amortization: Trade name 50,000 indefinite lived Total Intangibles $ 768,750 (a) The amortization periods of the dealer network range between 7 and 20 years. |
Summary of Gain on Change in Control | The Company recognized a pre-tax gain of $2.4 billion in connection with the Change in Control in Non-interest income in the Condensed Consolidated Statement of Operations. January 28, 2014 (in thousands) Gain attributable to SCUSA shares sold $ 137,536 Gain attributable to the remaining equity interest 2,280,027 Total pre-tax gain $ 2,417,563 |
Summary of Proforma Financial Information | The following table summarizes the actual unaudited amounts of Total revenue, net of Total interest expense and Net income including Noncontrolling Interest of SCUSA included in the Condensed Consolidated Financial Statements for the three-month and nine-month periods ended September 30, 2014 and the supplemental pro forma consolidated Total revenue, net of total interest expense and Net income including noncontrolling interest of SHUSA entity for the three-month and nine-month periods ended September 30, 2014 as if the Change in Control had occurred on January 1, 2013. These results include the impact of amortizing certain purchase accounting adjustments such as intangible assets as well as fair value adjustments to loans and issued debt. These pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual consolidated results of operations of SHUSA that would have been achieved had the Change in Control occurred at January 1, 2013, nor are they intended to represent or be indicative of future results of operations. SCUSA Amounts Included in Results for the Supplemental Pro Forma Combined (b) Three-Month Period Ended September 30, 2014 Nine-Month Period Ended September 30, 2014 Three-Month Period Ended September 30, 2014 Nine-Month Period Ended September 30, 2014 (in thousands) Total Revenue, Net of Total Interest Expense (a) $ 1,534,644 $ 4,112,641 $ 2,232,312 $ 6,239,871 Net Income including Noncontrolling Interest 280,138 925,556 289,417 655,055 (a) Total Revenue, Net of Total Interest Expense is calculated as the sum of Total Interest Income and Total Non-Interest Income, less Total Interest Expense. (b) Includes the impact of recording provision for loan losses necessary to bring the retail installment contracts and personal unsecured loans to their expected carrying values considering the required allowance for loan losses on their recorded investment amounts. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-sale Securities | The following tables present the amortized cost, gross unrealized gains and losses and approximate fair values of securities available-for-sale at the dates indicated: September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 3,191,564 $ 18,299 $ — $ 3,209,863 Corporate debt securities 1,554,216 17,224 (8,341 ) 1,563,099 Asset-backed securities ("ABS") 1,938,581 7,111 (1,041 ) 1,944,651 Equity securities 10,826 3 (301 ) 10,528 State and municipal securities 750,946 12,524 (2,148 ) 761,322 Mortgage-backed securities: U.S. government agencies - Residential 4,077,361 31,836 (16,724 ) 4,092,473 U.S. government agencies - Commercial 986,989 10,283 (5,109 ) 992,163 FHLMC and FNMA - Residential debt securities (1) 8,379,831 46,998 (89,154 ) 8,337,675 FHLMC and FNMA - Commercial debt securities 138,383 1,402 (427 ) 139,358 Non-agency securities 52 — — 52 Total investment securities available-for-sale $ 21,028,749 $ 145,680 $ (123,245 ) $ 21,051,184 (1) Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 1,692,838 $ 2,985 $ (56 ) $ 1,695,767 Corporate debt securities 2,159,681 29,630 (6,910 ) 2,182,401 Asset-backed securities 2,707,207 17,787 (4,591 ) 2,720,403 Equity securities 10,619 3 (279 ) 10,343 State and municipal securities 1,790,776 35,071 (2,385 ) 1,823,462 Mortgage-backed securities: U.S. government agencies - Residential 2,151,111 1,626 (33,811 ) 2,118,926 U.S government agencies - Commercial 472,611 183 (7,186 ) 465,608 FHLMC and FNMA - Residential debt securities 4,971,045 12,817 (129,990 ) 4,853,872 FHLMC and FNMA - Commercial debt securities 23,929 157 (171 ) 23,915 Non-agency securities 12,842 539 — 13,381 Total investment securities available-for-sale $ 15,992,659 $ 100,798 $ (185,379 ) $ 15,908,078 |
Investments Classified by Contractual Maturity Date | Contractual maturities of the Company’s debt securities available-for-sale at September 30, 2015 are as follows: Amortized Cost Fair Value (in thousands) Due within one year $ 676,336 $ 674,564 Due after 1 year but within 5 years 5,847,161 5,883,134 Due after 5 years but within 10 years 361,297 363,618 Due after 10 years 14,133,129 14,119,340 Total $ 21,017,923 $ 21,040,656 |
Gross Unrealized Loss and Fair Value of Securities Available-for-Sale | The following tables present the aggregate amount of unrealized losses as of September 30, 2015 and December 31, 2014 on securities in the Company’s available-for-sale investment portfolio classified according to the amount of time that those securities have been in a continuous loss position: September 30, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate debt securities $ 500,998 $ (6,427 ) $ 136,932 $ (1,914 ) $ 637,930 $ (8,341 ) Asset-backed securities 143,150 (1,041 ) — — 143,150 (1,041 ) Equity securities 376 (2 ) 9,850 (299 ) 10,226 (301 ) State and municipal securities 203,170 (1,217 ) 25,430 (931 ) 228,600 (2,148 ) Mortgage-backed securities: U.S. government agencies - Residential 400,513 (735 ) 972,042 (15,989 ) 1,372,555 (16,724 ) U.S government agencies - Commercial 216,806 (2,551 ) 116,893 (2,558 ) 333,699 (5,109 ) FHLMC and FNMA - Residential 1,219,050 (4,080 ) 2,245,972 (85,074 ) 3,465,022 (89,154 ) FHLMC and FNMA - Commercial 42,195 (427 ) — — 42,195 (427 ) Total $ 2,726,258 $ (16,480 ) $ 3,507,119 $ (106,765 ) $ 6,233,377 $ (123,245 ) NOTE 4. INVESTMENT SECURITIES (continued) December 31, 2014 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) US Treasury securities $ 298,914 $ (56 ) $ — $ — $ 298,914 $ (56 ) Corporate debt securities 538,108 (3,262 ) 214,852 (3,648 ) 752,960 (6,910 ) Asset-backed securities 632,936 (1,437 ) 424,333 (3,154 ) 1,057,269 (4,591 ) Equity securities 55 — 9,879 (279 ) 9,934 (279 ) State and municipal securities 45,128 (90 ) 192,091 (2,295 ) 237,219 (2,385 ) Mortgage-backed securities: U.S. government agencies - Residential 415,731 (2,693 ) 1,348,908 (31,118 ) 1,764,639 (33,811 ) U.S. government agencies - Commercial 281,258 (2,459 ) 136,269 (4,727 ) 417,527 (7,186 ) FHLMC and FNMA - Residential debt securities 399,176 (2,019 ) 2,607,695 (127,971 ) 3,006,871 (129,990 ) FHLMC and FNMA - Commercial debt securities 11,269 (171 ) — — 11,269 (171 ) Total $ 2,622,575 $ (12,187 ) $ 4,934,027 $ (173,192 ) $ 7,556,602 $ (185,379 ) |
Gains (Losses) and Proceeds on Sales of Securities | Proceeds from sales of investment securities and the realized gross gains and losses from those sales are as follows: Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Proceeds from the sales of available-for-sale securities $ 497,182 $ 21,138 $ 2,751,790 $ 311,019 Gross realized gains $ 533 $ 131 $ 23,592 $ 11,547 Gross realized losses (2,526 ) — (5,229 ) (67 ) OTTI — — (1,092 ) — Net realized (losses)/gains $ (1,993 ) $ 131 $ 17,271 $ 11,480 |
Gains (Losses) on Trading Securities | The realized activity of trading gains and losses related to trading securities are as follows: Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Net gains recognized during the period on trading securities $ — $ 1,899 $ 6,391 $ 3,386 Less: Net gains recognized during the period on trading securities sold during the period — 2,047 6,391 3,782 Unrealized losses during the reporting period on trading securities still held at the reporting date $ — $ (148 ) $ — $ (396 ) |
LOANS AND ALLOWANCE FOR CREDI29
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Loans Receivable | The following table presents the composition of the gross loans held for investment by type of loan and by fixed and variable rates at the dates indicated: September 30, 2015 December 31, 2014 Amount Percent Amount Percent (in thousands) Commercial loans held for investment: Commercial real estate loans $ 8,495,182 10.8 % $ 8,739,233 11.5 % Commercial and industrial loans 19,363,022 24.6 % 17,092,828 22.5 % Multi-family loans 9,600,527 12.2 % 8,705,890 11.5 % Other commercial (2) 2,366,742 3.0 % 2,084,232 2.7 % Total commercial loans held for investment 39,825,473 50.6 % 36,622,183 48.2 % Consumer loans secured by real estate: Residential mortgages 6,408,164 8.2 % 6,773,575 8.9 % Home equity loans and lines of credit 6,159,536 7.8 % 6,211,298 8.2 % Total consumer loans secured by real estate 12,567,700 16.0 % 12,984,873 17.1 % Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated 17,573,943 22.4 % 9,935,503 13.1 % Retail installment contracts and auto loans - purchased 6,888,523 8.8 % 12,449,526 16.4 % Personal unsecured loans 644,548 0.8 % 2,696,820 3.5 % Other consumer (3) 1,083,011 1.4 % 1,306,562 1.7 % Total consumer loans 38,757,725 49.4 % 39,373,284 51.8 % Total loans held for investment (1) $ 78,583,198 100.0 % $ 75,995,467 100.0 % Total loans held for investment: Fixed rate $ 46,704,335 59.4 % $ 45,109,343 59.4 % Variable rate 31,878,863 40.6 % 30,886,124 40.6 % Total loans held for investment (1) $ 78,583,198 100.0 % $ 75,995,467 100.0 % (1) Total loans held for investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. These items resulted in a net decrease in loan balances of $269.9 million as of September 30, 2015 and a net decrease in loan balances of $1.5 billion as of December 31, 2014 , respectively. (2) Other commercial primarily includes commercial equipment vehicle funding ("CEVF") leveraged leases and loans. (3) Other consumer primarily includes recreational vehicles ("RV") and marine loans. |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | Consumer financing receivables for which credit score is a core component of the allowance model are summarized by credit score as follows: September 30, 2015 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Personal unsecured loans balance (3) Percent (in thousands) <600 $ 12,961,005 51.3 % $ 405,059 16.0 % 600-639 4,105,660 16.2 % 406,943 16.1 % >=640 3,059,119 12.1 % 1,071,993 42.4 % N/A (1) 5,162,435 20.4 % 644,744 25.5 % Total $ 25,288,219 100.0 % $ 2,528,739 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs and Personal unsecured loans include $825.8 million and $1.9 billion , respectively of LHFS at September 30, 2015 that do not have an allowance. December 31, 2014 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Personal unsecured loans balance Percent (in thousands) <600 $ 11,669,878 52.0 % $ 491,984 18.2 % 600-639 4,046,452 18.0 % 446,995 16.6 % 640-679 4,046,452 18.0 % 1,163,203 43.1 % 680-719 — — % 64,610 2.4 % 720-759 — — % 72,235 2.7 % >=760 — — % 78,234 2.9 % N/A (1) 2,667,671 12.0 % 379,559 14.1 % Total $ 22,430,453 100.0 % $ 2,696,820 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RICs include $45.4 million of LHFS at December 31, 2014 that do not have an allowance. |
Allowance for Credit Losses by Portfolio Segment | The activity in the ACL by portfolio segment for the three-month and nine-month periods ended September 30, 2015 and 2014 was as follows: Three-Month Period Ended September 30, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 402,695 $ 2,360,366 $ 71,592 $ 2,834,653 Provision for/ (Recovery of) loan losses 26,337 937,086 (26,258 ) 937,165 Charge-offs (45,467 ) (1,480,645 ) — (1,526,112 ) Recoveries 25,091 496,347 — 521,438 Charge-offs, net of recoveries (20,376 ) (984,298 ) — (1,004,674 ) Allowance for loan and lease losses, end of period $ 408,656 $ 2,313,154 $ 45,334 $ 2,767,144 Reserve for unfunded lending commitments, beginning of period $ 137,641 $ — $ — $ 137,641 Provision for unfunded lending commitments — — — — Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 137,641 — — 137,641 Total allowance for credit losses, end of period $ 546,297 $ 2,313,154 $ 45,334 $ 2,904,785 Nine-Month Period Ended September 30, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan losses, beginning of period $ 401,553 $ 1,267,025 $ 33,024 $ 1,701,602 Provision for/ (Recovery of) loan losses 64,491 2,874,254 12,310 2,951,055 Other (1) — (27,117 ) — (27,117 ) Charge-offs (96,652 ) (3,302,922 ) — (3,399,574 ) Recoveries 39,264 1,501,914 — 1,541,178 Charge-offs, net of recoveries (57,388 ) (1,801,008 ) — (1,858,396 ) Allowance for loan and lease losses, end of period $ 408,656 $ 2,313,154 $ 45,334 $ 2,767,144 Reserve for unfunded lending commitments, beginning of period $ 132,641 $ — $ — $ 132,641 Provision for unfunded lending commitments 5,000 — — 5,000 Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 137,641 — — 137,641 Total allowance for credit losses, end of period $ 546,297 $ 2,313,154 $ 45,334 $ 2,904,785 Ending balance, individually evaluated for impairment (2) $ 57,517 $ 745,671 $ — $ 803,188 Ending balance, collectively evaluated for impairment 351,139 1,567,483 45,334 1,963,956 Financing receivables: Ending balance $ 39,825,473 $ 41,748,433 $ — $ 81,573,906 Ending balance, evaluated under the fair value option or lower of cost or fair value — 3,364,866 — 3,364,866 Ending balance, individually evaluated for impairment (2) 367,865 3,771,421 — 4,139,286 Ending balance, collectively evaluated for impairment 39,457,608 34,612,146 — 74,069,754 (1) The "Other" amount represents the impact on the allowance for loan and lease losses in connection with SCUSA classifying approximately $1.0 billion of retail installment contracts ("RICs") as held-for-sale during the first quarter of 2015. (2) Consumer loans individually evaluated for impairment consists of loans in TDR status NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three-Month Period Ended September 30, 2014 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 369,893 $ 888,761 $ 39,001 $ 1,297,655 Provision for / (Recovery of) loan losses 25,317 751,850 (10,504 ) 766,663 Other (1) — (61,220 ) — (61,220 ) Charge-offs (28,686 ) (973,284 ) — (1,001,970 ) Recoveries 8,844 408,754 — 417,598 Charge-offs, net of recoveries (19,842 ) (564,530 ) — (584,372 ) Allowance for loan and lease losses, end of period $ 375,368 $ 1,014,861 $ 28,497 $ 1,418,726 Reserve for unfunded lending commitments, beginning of period $ 170,274 $ — $ — $ 170,274 Provision for unfunded lending commitments (20,000 ) — — (20,000 ) Loss on unfunded lending commitments (633 ) — — (633 ) Reserve for unfunded lending commitments, end of period 149,641 — — 149,641 Total allowance for credit losses, end of period $ 525,009 $ 1,014,861 $ 28,497 $ 1,568,367 Nine-Month Period Ended September 30, 2014 Commercial Consumer Unallocated Total (in thousands) Allowance for loan losses, beginning of period $ 443,074 $ 363,647 $ 27,616 $ 834,337 Provision for / (Recovery of) loan losses (5,095 ) 1,703,103 881 1,698,889 Other (1) — (61,220 ) — (61,220 ) Charge-offs (81,163 ) (1,729,911 ) — (1,811,074 ) Recoveries 18,552 739,242 — 757,794 Charge-offs, net of recoveries (62,611 ) (990,669 ) — (1,053,280 ) Allowance for loan losses, end of period $ 375,368 $ 1,014,861 $ 28,497 $ 1,418,726 Reserve for unfunded lending commitments, beginning of period $ 220,000 $ — $ — $ 220,000 Provision for unfunded lending commitments (65,000 ) — — (65,000 ) Loss on unfunded lending commitments (5,359 ) — — (5,359 ) Reserve for unfunded lending commitments, end of period 149,641 — — 149,641 Total allowance for credit losses, end of period $ 525,009 $ 1,014,861 $ 28,497 $ 1,568,367 Ending balance, individually evaluated for impairment (2) $ 73,074 $ 33,513 $ — $ 106,587 Ending balance, collectively evaluated for impairment 302,294 981,348 28,497 1,312,139 Financing receivables: Ending balance $ 35,683,463 $ 39,093,619 $ — $ 74,777,082 Ending balance, evaluated under the fair value option or lower of cost or fair value (1) 19,167 1,284,403 — 1,303,570 Ending balance, individually evaluated for impairment (2) 503,098 1,075,907 — 1,579,005 Ending balance, collectively evaluated for impairment 35,161,198 36,733,309 — 71,894,507 (1) The "Other" amount represents the impact on the allowance for loan and lease losses in connection with the sale of approximately $484 million of troubled debt restructurings ("TDRs") and non-performing loans ("NPLs") classified as held-for-sale during the quarter ended September 30, 2014 . NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) The following table presents the activity in the Allowance for loan losses for the Retail Installment Contracts acquired ("Purchased") in the Change in Control and those originated by SC subsequent to the Change in Control. Three Month Period Ended September 30, 2015 Nine Month Period Ended September 30, 2015 Purchased Originated Total Purchased Originated Total (in thousands) (in thousands) Allowance for loan and lease losses, beginning of period 542,709 1,219,134 1,761,843 963 709,024 709,987 Provision for / (Release of) loan and lease losses 129,109 686,563 815,672 958,738 1,520,920 2,479,658 Other — — — (27,117 ) — (27,117 ) Charge-offs (328,624 ) (612,318 ) (940,942 ) (1,216,036 ) (1,268,524 ) (2,484,560 ) Recoveries 218,962 251,748 470,710 845,608 583,707 1,429,315 Charge-offs, net of recoveries (109,662 ) (360,570 ) (470,232 ) (370,428 ) (684,817 ) (1,055,245 ) Allowance for loan and lease losses, end of period 562,156 1,545,127 2,107,283 562,156 1,545,127 2,107,283 Three Month Period Ended September 30, 2014 Nine Month Period Ended September 30, 2014 Purchased Originated Total Purchased Originated Total (in thousands) (in thousands) Allowance for loan and lease losses, beginning of period $ — $ 394,736 $ 394,736 $ — $ — $ — Provision for / (Release of) loan and lease losses 240,616 286,784 527,400 540,855 697,158 1,238,013 Other (9,887 ) — (9,887 ) (9,887 ) — (9,887 ) Charge-offs (557,995 ) (168,008 ) (726,003 ) (1,149,494 ) (189,589 ) (1,339,083 ) Recoveries 327,267 45,716 372,983 618,527 51,659 670,186 Charge-offs, net of recoveries (230,728 ) (122,292 ) (353,020 ) (530,967 ) (137,930 ) (668,897 ) Allowance for loan and lease losses, end of period $ 1 $ 559,228 $ 559,229 $ 1 $ 559,228 $ 559,229 |
Schedule of Non-accrual Loans | The recorded investment in non-accrual loans disaggregated by class of financing receivables is summarized as follows: September 30, 2015 December 31, 2014 (in thousands) Non-accrual loans: Commercial: Commercial real estate: Corporate banking $ 60,450 $ 90,579 Middle market commercial real estate 38,605 71,398 Santander real estate capital 3,505 5,803 Commercial and industrial 65,901 54,567 Multi-family 7,319 9,639 Other commercial 4,365 4,136 Total commercial loans 180,145 236,122 Consumer: Residential mortgages 184,828 231,316 Home equity loans and lines of credit 126,628 142,026 Retail installment contracts and auto loans - originated 538,929 227,132 Retail installment contracts and auto loans - purchased 412,175 755,590 Personal unsecured loans 12,683 14,007 Other consumer 31,242 22,095 Total consumer loans 1,306,485 1,392,166 Total non-accrual loans 1,486,630 1,628,288 Other real estate owned ("OREO") 40,692 65,051 Repossessed vehicles 154,057 126,309 Foreclosed and other repossessed assets 377 11,375 Total OREO and other repossessed assets 195,126 202,735 Total non-performing assets $ 1,681,756 $ 1,831,023 |
Aging Analysis of Loan Portfolio | The age of recorded investments in past due loans and accruing loans greater than 90 days past due disaggregated by class of financing receivables is summarized as follows: As of September 30, 2015 30-89 Greater Total Current Total (1) Recorded Investment (in thousands) Commercial: Commercial real estate: Corporate banking $ 23,789 $ 22,015 $ 45,804 $ 2,921,976 $ 2,967,780 $ — Middle market commercial real estate 3,964 21,190 25,154 3,940,019 3,965,173 — Santander real estate capital 659 — 659 1,561,570 1,562,229 — Commercial and industrial 28,408 38,771 67,179 19,295,843 19,363,022 — Multi-family 21,830 635 22,465 9,578,062 9,600,527 — Other commercial 7,656 3,496 11,152 2,355,590 2,366,742 — Consumer: Residential mortgages 144,232 155,947 300,179 6,388,749 6,688,928 — Home equity loans and lines of credit 31,268 80,107 111,375 6,048,161 6,159,536 — Retail installment contracts and auto loans - originated 1,704,700 168,183 1,872,883 16,526,813 18,399,696 — Retail installment contracts and auto loans - purchased 1,264,913 111,737 1,376,650 5,511,873 6,888,523 — Personal unsecured loans 92,965 86,739 179,704 2,349,035 2,528,739 77,528 Other consumer 40,476 40,102 80,578 1,002,433 1,083,011 — Total $ 3,364,860 $ 728,922 $ 4,093,782 $ 77,480,124 $ 81,573,906 $ 77,528 (1) Financing receivables include LHFS. NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) As of December 31, 2014 30-89 Greater Total Current Total (1) Recorded (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,363 $ 37,708 $ 56,071 $ 3,162,079 $ 3,218,150 $ — Middle market commercial real estate 3,179 33,604 36,783 3,706,316 3,743,099 — Santander real estate capital 4,329 2,115 6,444 1,771,540 1,777,984 — Commercial and industrial 26,778 23,434 50,212 17,061,710 17,111,922 — Multi-family 13,810 5,512 19,322 8,686,568 8,705,890 — Other commercial 5,054 1,245 6,299 2,077,933 2,084,232 — Consumer: Residential mortgages 165,270 200,818 366,088 6,603,221 6,969,309 — Home equity loans and lines of credit 36,074 86,749 122,823 6,088,475 6,211,298 — Retail installment contracts and auto loans - originated 811,912 65,703 877,615 9,103,311 9,980,926 — Retail installment contracts and auto loans - purchased 2,317,941 202,889 2,520,830 9,928,697 12,449,527 — Personal unsecured loans 92,905 111,917 204,822 2,491,998 2,696,820 93,152 Other consumer 56,708 31,745 88,453 1,218,109 1,306,562 — Total $ 3,552,323 $ 803,439 $ 4,355,762 $ 71,899,957 $ 76,255,719 $ 93,152 (1) Financing receivables include LHFS. |
Schedule of Impaired Loans by Class | Impaired loans disaggregated by class of financing receivables are summarized as follows: September 30, 2015 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 40,866 $ 43,717 $ — $ 39,301 Middle market commercial real estate 79,320 124,268 — 103,556 Santander real estate capital 2,860 2,860 — 2,921 Commercial and industrial 2,721 4,144 — 5,323 Multi-family 4,834 5,864 — 13,663 Other commercial 2,604 2,622 — 1,346 Consumer: Residential mortgages 20,040 20,040 — 21,724 Home equity loans and lines of credit 22,999 22,999 — 25,115 Retail installment contracts and auto loans - originated — — — — Retail installment contracts and auto loans - purchased 92,073 115,026 — 939,599 Personal unsecured loans (2) 14,635 14,635 — 7,614 Other consumer 13,558 16,657 — 9,579 With an allowance recorded: Commercial: Commercial real estate: Corporate banking 33,744 42,396 10,664 46,847 Middle market commercial real estate 36,936 42,635 10,656 48,517 Santander real estate capital — — — 1,939 Commercial and industrial 80,420 89,708 35,285 72,302 Multi-family 5,762 5,767 463 5,871 Other commercial 2,429 2,527 449 2,181 Consumer: Residential mortgages 139,279 164,278 28,812 135,046 Home equity loans and lines of credit 62,328 73,254 4,832 61,230 Retail installment contracts and auto loans – Originated 916,385 941,146 293,459 486,449 Retail installment contracts and auto loans - purchased 2,471,369 2,793,045 414,352 1,235,685 Personal unsecured loans 1,660 1,950 496 9,068 Other consumer 15,877 20,639 3,720 16,086 Total: Commercial $ 292,496 $ 366,508 $ 57,517 $ 343,767 Consumer 3,770,203 4,183,669 745,671 2,947,195 Total $ 4,062,699 $ 4,550,177 $ 803,188 $ 3,290,962 (1) Recorded investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. (2) Includes LHFS. December 31, 2014 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 37,735 $ 40,453 $ — $ 40,610 Middle market commercial real estate 127,792 172,766 — 114,465 Santander real estate capital 2,982 2,982 — 1,867 Commercial and industrial 7,925 17,732 — 10,529 Multi-family 22,492 22,492 — 24,762 Other commercial 88 88 — 44 Consumer: Residential mortgages 23,408 23,408 — 57,776 Home equity loans and lines of credit 27,230 27,230 — 29,152 Retail installment contracts and auto loans - originated — — — — Retail installment contracts and auto loans - purchased 1,787,124 2,040,785 — 893,563 Personal unsecured loans 592 592 — 296 Other consumer 5,600 5,600 — 6,973 With an allowance recorded: Commercial: Corporate banking 59,950 66,328 25,322 56,856 Middle market commercial real estate 60,098 66,024 17,004 89,472 Santander real estate capital 3,878 6,356 364 6,630 Commercial and industrial 64,183 72,488 35,848 82,204 Multi-family 5,979 7,076 1,475 8,699 Other commercial 1,932 1,995 688 1,055 Consumer: Residential mortgages 130,813 156,669 23,628 339,071 Home equity loans and lines of credit 60,132 69,374 5,002 57,516 Retail installment contracts and auto loans - originated 56,513 58,229 16,997 28,258 Retail installment contracts and auto loans - purchased — — — — Personal unsecured loans 16,476 16,815 6,508 9,506 Other consumer 16,295 22,812 3,264 16,889 Total: Commercial $ 395,034 $ 476,780 $ 80,701 $ 437,193 Consumer 2,124,183 2,421,514 55,399 1,439,000 Total $ 2,519,217 $ 2,898,294 $ 136,100 $ 1,876,193 (1) Recorded investment includes deferred loan fees, net of deferred origination costs and unamortized purchase premiums, net of discounts as well as purchase accounting adjustments. |
Schedule of Financing Receivable by LTV | Residential mortgage and home equity financing receivables by CLTV range are summarized as follows: Residential Mortgages September 30, 2015 N/A LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total (in thousands) N/A $ 511,932 $ 12,469 $ 1,911 $ — $ — $ — $ — $ 526,312 <600 133 235,909 74,340 32,482 17,798 10,463 9,814 380,939 600-639 1 163,673 47,512 24,478 16,017 5,629 8,704 266,014 640-679 237 259,330 84,767 35,774 29,088 10,259 13,600 433,055 680-719 21 487,624 183,363 65,314 45,454 11,277 27,042 820,095 720-759 344 711,855 322,421 76,584 52,347 12,440 22,610 1,198,601 >=760 87 2,109,059 725,490 120,411 61,042 22,409 25,414 3,063,912 Grand Total $ 512,755 $ 3,979,919 $ 1,439,804 $ 355,043 $ 221,746 $ 72,477 $ 107,184 $ 6,688,928 Home Equity Loans and Lines of Credit September 30, 2015 N/A LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total (in thousands) N/A $ 199,048 $ 1,388 $ 909 $ 62 $ — $ 201,407 <600 11,964 149,242 80,251 25,356 23,108 289,921 600-639 9,447 140,744 81,919 20,422 18,578 271,110 640-679 11,194 246,235 173,486 35,345 26,511 492,771 680-719 13,692 430,783 323,493 54,890 31,492 854,350 720-759 13,473 606,189 436,434 75,449 46,248 1,177,793 >=760 29,329 1,603,426 1,018,991 142,533 77,905 2,872,184 Grand Total $ 288,147 $ 3,178,007 $ 2,115,483 $ 354,057 $ 223,842 $ 6,159,536 Residential Mortgages December 31, 2014 N/A LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total (in thousands) N/A $ 437,215 $ 14,801 $ 643 $ 8,676 $ 14,934 $ — $ — $ 476,269 <600 94 279,197 91,037 41,341 17,271 15,017 16,327 460,284 600-639 200 154,557 50,238 25,861 13,218 6,337 13,446 263,857 640-679 — 303,319 87,055 40,863 26,618 11,456 19,530 488,841 680-719 25 528,979 161,023 66,898 40,456 11,503 34,473 843,357 720-759 314 758,315 271,983 80,077 42,872 16,344 39,927 1,209,832 >=760 124 2,328,907 633,004 132,640 60,434 29,738 42,022 3,226,869 Grand Total $ 437,972 $ 4,368,075 $ 1,294,983 $ 396,356 $ 215,803 $ 90,395 $ 165,725 $ 6,969,309 NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Home Equity Loans and Lines of Credit December 31, 2014 N/A LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total (in thousands) N/A $ 217,607 $ 2,265 $ 863 $ 336 $ 148 $ 221,219 <600 13,543 158,712 69,381 24,069 20,989 286,694 600-639 9,748 154,887 76,431 23,410 14,118 278,594 640-679 14,717 279,397 157,214 38,057 25,117 514,502 680-719 15,984 488,982 272,083 56,560 33,714 867,323 720-759 15,643 672,971 381,828 64,993 45,810 1,181,245 >=760 36,962 1,736,574 885,774 125,773 76,638 2,861,721 Grand Total $ 324,204 $ 3,493,788 $ 1,843,574 $ 333,198 $ 216,534 $ 6,211,298 |
Summary of Performing and Non-performing TDRs | The following table summarizes the Company’s performing and non-performing TDRs at the dates indicated: September 30, 2015 December 31, 2014 (in thousands) Performing $ 3,428,202 $ 2,041,653 Non-performing 522,628 343,522 Total $ 3,950,830 $ 2,385,175 |
Schedule of Troubled Debt Restructurings | NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three-Month Period Ended September 30, 2014 Number of Contracts Pre-Modification Outstanding Recorded Investment (1) Post-Modification Outstanding Recorded Investment (2) (in thousands) Commercial: Commercial real estate: Corporate banking 2 $ 16,739 $ 16,615 Middle markets commercial real estate 2 19,024 19,024 Commercial and industrial 26 769 769 Other commercial 2 1,456 1,445 Consumer: Residential mortgages (3) 65 13,096 13,444 Home equity loans and lines of credit 32 2,813 2,813 Retail installment contracts and auto loans - originated 318 6,102 6,063 Retail installment contracts and auto loans - purchased 40,331 554,184 551,689 Personal unsecured loans 5,653 6,284 6,311 Other consumer 2 124 124 Total 46,433 $ 620,591 $ 618,297 Nine-Month Period Ended September 30, 2014 Number of Contracts Pre-Modification (1) Post-Modification (2) (in thousands) Commercial: Commercial real estate: Corporate banking 23 $ 70,017 $ 68,656 Middle markets commercial real estate 5 28,963 25,851 Commercial and industrial 35 988 988 Other commercial 5 2,503 2,472 Consumer: Residential mortgages 222 41,830 42,510 Home equity loans and lines of credit 86 7,991 7,991 Retail installment contracts and auto loans - originated 346 6,698 6,655 Retail installment contracts and auto loans - purchased 65,415 838,856 831,288 Personal unsecured loans 10,542 11,618 11,457 Other consumer 7 536 537 Total 76,686 $ 1,010,000 $ 998,405 (1) Pre-modification outstanding recorded investment amount is the month-end balance prior to the month the modification occurred. (2) Post-modification outstanding recorded investment amount is the month-end balance for the month that the modification occurred. (3) The post-modification outstanding recorded investment amounts for residential mortgages exclude interest reserves. The following tables detail the activity of TDRs for the three-month and nine-month periods ended September 30, 2015 and September 30, 2014 , respectively: Three-Month Period Ended September 30, 2015 Number of Pre-Modification (1) Post-Modification (2) (in thousands) Commercial: Commercial real estate: Corporate Banking — $ — $ — Middle market commercial real estate — — — Santander real estate capital — — — Commercial and industrial 210 6,818 6,816 Multi-family — — — Other commercial — — — Consumer: Residential mortgages (3) 25 3,758 4,028 Home equity loans and lines of credit 31 2,581 2,992 Retail installment contracts and auto loans - originated 23,726 447,622 447,362 Retail installment contracts and auto loans - purchased 33,436 446,122 445,189 Personal unsecured loans 4,058 4,894 4,870 Other consumer 3 310 328 Total 61,489 $ 912,105 $ 911,585 Nine-Month Period Ended September 30, 2015 Number of Pre-Modification (1) Post-Modification (2) (in thousands) Commercial: Commercial real estate: Corporate Banking 12 $ 11,673 $ 13,227 Middle market commercial real estate 1 14,439 14,439 Santander real estate capital — — — Commercial and industrial 418 21,941 19,226 Multi-family — — — Other commercial — — — Consumer: Residential mortgages (3) 114 17,929 18,765 Home equity loans and lines of credit 92 7,274 8,281 Retail installment contracts and auto loans - originated 50,252 957,309 956,871 Retail installment contracts and auto loans - purchased 152,943 2,120,303 2,115,473 Personal unsecured loans 13,217 15,774 15,685 Other consumer 20 1,441 1,484 Total 217,069 $ 3,168,083 $ 3,163,451 (1) Pre-modification outstanding recorded investment amount is the month-end balance prior to the month the modification occurred. (2) Post-modification outstanding recorded investment amount is the month-end balance for the month that the modification occurred. (3) The post-modification outstanding recorded investment amounts for residential mortgages exclude interest reserves. |
Schedule of Troubled Debt Restructurings Subsequently Defaulted | The following table details TDRs that became TDRs during the past twelve-month period and have subsequently defaulted during the three-month and nine-month periods ended September 30, 2015 and September 30, 2014 , respectively. Three-Month Period Nine-Month Period 2015 2014 2015 2014 Number of Recorded Investment (1) Number of Recorded Investment (1) Number of Recorded Investment (1) Number of Recorded Investment (1) (in thousands) Commercial Commercial and industrial 10 $ 357 — $ — 32 $ 1,043 — $ — Consumer: Residential mortgages 2 486 1 298 15 2,307 22 2,993 Home equity loans and lines of credit 3 728 1 65 14 1,665 3 377 Retail installment contracts and auto loans 15,416 241,952 1,528 19,737 37,252 568,756 2,018 25,105 Unsecured loans 871 1,011 820 861 3,422 3,681 1,089 1,139 Other consumer — — — — 2 244 1 27 Total 16,302 $ 244,534 2,350 $ 20,961 40,737 $ 577,696 3,133 $ 29,641 (1) The recorded investment represents the period-end balance at September 30, 2015 and 2014 . Does not include Chapter 7 bankruptcy TDRs. |
Commercial | |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | The following table reconciles the Company's recorded investment classified by its major loan classifications to its commercial loan classifications utilized in its determination of the allowance for loan losses and other credit quality disclosures at September 30, 2015 and December 31, 2014 , respectively: Commercial Portfolio Segment (2) Major Loan Classifications (1) September 30, 2015 December 31, 2014 (in thousands) Commercial loans held for investment: Commercial real estate: Corporate Banking $ 2,967,780 $ 3,218,150 Middle Markets Real Estate 3,965,173 3,743,099 Santander Real Estate Capital 1,562,229 1,777,984 Total commercial real estate 8,495,182 8,739,233 Commercial and industrial loans (3) 19,363,022 17,092,828 Multi-family loans 9,600,527 8,705,890 Other commercial 2,366,742 2,084,232 Total commercial loans held for investment $ 39,825,473 $ 36,622,183 (1) These represent the Company's loan categories based on the SEC's Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its allowance for loan and lease losses in accordance with ASC 310-10. (3) Excludes zero and $19.1 million of Commercial and Industrial LHFS at September 30, 2015 and December 31, 2014 , respectively. Commercial loan credit quality indicators by class of financing receivables are summarized as follows: Commercial Real Estate September 30, 2015 Corporate Middle Santander Commercial and industrial Multi-family Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,623,982 $ 3,765,920 $ 1,392,754 $ 18,529,081 $ 9,333,083 $ 2,320,236 $ 37,965,056 Special Mention 118,536 48,842 121,441 374,448 195,710 29,950 888,927 Substandard 215,912 127,213 47,375 429,623 71,301 16,251 907,675 Doubtful 9,350 23,198 659 29,870 433 305 63,815 Total commercial loans $ 2,967,780 $ 3,965,173 $ 1,562,229 $ 19,363,022 $ 9,600,527 $ 2,366,742 $ 39,825,473 (1) Financing receivables include LHFS. Commercial Real Estate December 31, 2014 Corporate Middle Santander Commercial and industrial Multi-family Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,910,957 $ 3,472,448 $ 1,564,983 $ 16,495,836 $ 8,533,427 $ 2,064,947 $ 35,042,598 Special Mention 83,122 61,166 133,950 237,331 131,677 8,475 655,721 Substandard 192,911 174,882 76,232 358,782 40,355 10,311 853,473 Doubtful 31,160 34,603 2,819 19,973 431 499 89,485 Total commercial loans $ 3,218,150 $ 3,743,099 $ 1,777,984 $ 17,111,922 $ 8,705,890 $ 2,084,232 $ 36,641,277 (1) Financing receivables include LHFS. |
Consumer | |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | Consumer Portfolio Segment (2) Major Loan Classifications (1) September 30, 2015 December 31, 2014 (in thousands) Consumer loans secured by real estate: Residential mortgages (3) $ 6,408,164 $ 6,773,575 Home equity loans and lines of credit 6,159,536 6,211,298 Total consumer loans secured by real estate 12,567,700 12,984,873 Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated (4) 17,573,943 9,935,503 Retail installment contracts and auto loans - purchased 6,888,523 12,449,526 Personal unsecured loans (5) 644,548 2,696,820 Other consumer 1,083,011 1,306,562 Total consumer loans held for investment $ 38,757,725 $ 39,373,284 (1) These represent the Company's loan categories based on the SEC's Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its allowance for loan and lease losses in accordance with ASC 310-10. (3) Home mortgages exclude $280.8 million and $195.7 million of LHFS at September 30, 2015 and December 31, 2014 , respectively. (4) Retail installment contracts and auto loans exclude $825.8 million and $45.4 million of LHFS at September 30, 2015 and December 31, 2014 , respectively. (5) Personal unsecured loans exclude $1.9 billion of LHFS at September 30, 2015 . There were no personal unsecured loans HFS at December 31, 2014 . The RICs and auto loan portfolio is comprised of: (1) RICs originated by SC prior to the Change in Control, (2) RICs originated by SC after the Change in Control, and (3) auto loans originated by SBNA. The composition of the portfolio segment is as follows: September 30, 2015 December 31, 2014 (in thousands) RICs - Purchased: UPB (1) $ 7,577,731 $ 13,366,188 UPB - FVO (2) 195,909 716,923 Total UPB 7,773,640 14,083,111 Purchase Marks (3) (885,117 ) (1,633,585 ) Total RICs - Purchased 6,888,523 12,449,526 RICs - Originated: UPB (1) 18,110,589 10,273,931 Net discount (555,952 ) (367,369 ) Total RICs - Originated 17,554,637 9,906,562 SBNA auto loans 19,306 28,941 Total RICs originated post-change in control 17,573,943 9,935,503 Total RICs and auto loans $ 24,462,466 $ 22,385,029 (1) UPB does not include amounts related to the loan receivables - unsecured and loan receivables from dealers due to the short-term and revolving nature of these receivables. (2) The Company elected to account for these loans, which were acquired with evidence of credit deterioration, under the FVO. (3) Includes purchase marks of $42.3 million and $130.2 million as of September 30, 2015 and December 31, 2014, respectively, related to purchased loan portfolios on which we elected to apply the FVO. |
LEASED VEHICLES, NET (As Rest30
LEASED VEHICLES, NET (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Schedule of Leased Vehicles, Net | Leased vehicles, net consisted of the following as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Leased vehicles $ 10,645,278 $ 8,255,912 Origination fees and other costs 30,740 20,628 Manufacturer subvention payments (1,046,555 ) (834,669 ) 9,629,463 7,441,871 Less: accumulated depreciation (1,557,268 ) (817,901 ) Total Leased Vehicles, net $ 8,072,195 $ 6,623,970 |
Schedule of Future Minimum Rental Payments Due to the Company Under Operating Leases | The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of September 30, 2015 (in thousands): As Restated Remainder of 2015 $ 363,333 2016 1,319,342 2017 800,873 2018 183,908 2019 840 Thereafter — Total $ 2,668,296 |
VARIABLE INTEREST ENTITIES (A31
VARIABLE INTEREST ENTITIES (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Variable Interest Entity and Securitizations [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the assets and liabilities related to the above mentioned VIEs that are included in the Company's Condensed Consolidated Financial Statements as of the date indicated: September 30, 2015 December 31, 2014 (in thousands) Assets Restricted cash $ 1,756,312 $ 1,626,257 Loans (1) 23,354,692 20,557,168 Leased vehicles, net 6,062,106 4,848,593 Various other assets 587,590 555,108 Total Assets $ 31,760,700 $ 27,587,126 Liabilities Notes payable $ 30,461,521 $ 27,892,669 Various other liabilities 83,815 55,795 Total Liabilities 30,545,336 27,948,464 (1) Includes $1.6 billion of RICs held for sale at September 30, 2015. |
Summary of Cash Flows Received | A summary of the cash flows received from the off-balance Trusts for the periods indicated is as follows: Three-Month Period Nine-Month Period Period from January 28, 2014 to September 30, 2015 2014 2015 2014 (in thousands) Receivables securitized $ — $ 1,028,278 $ 768,561 $ 1,802,461 Net proceeds from new securitizations $ — $ 1,078,202 $ 785,983 $ 1,894,052 Cash received for servicing fees 5,955 3,925 17,578 10,897 Total cash received from securitization trusts $ 5,955 $ 1,082,127 $ 803,561 $ 1,904,949 Below is a summary of the cash flows received from the Trusts for the period indicated: Three-Month Period Nine-Month Period Period from January 28, 2014 to September 30, 2015 2014 2015 2014 (in thousands) Receivables securitized $ 4,761,341 $ 3,166,785 $ 14,828,478 $ 10,499,489 Net proceeds from new securitizations 3,840,369 2,592,845 11,816,224 8,814,810 Cash received for servicing fees 182,960 164,325 518,563 417,838 Cash received upon release from reserved and restricted cash accounts — — — — Net distributions from Trusts 486,377 468,207 1,558,772 1,315,164 Total cash received from securitization trusts $ 4,509,706 $ 3,225,377 $ 13,893,559 $ 10,547,812 |
GOODWILL AND OTHER INTANGIBLE32
GOODWILL AND OTHER INTANGIBLES (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents activity in the Company's goodwill by its reportable segments for the nine-month period ended September 30, 2015 : Retail Banking Auto Finance & Business Banking (2) Real Estate and Commercial Banking Global Corporate Banking (1) SCUSA Total (in thousands) Goodwill at December 31, 2014 $ 1,815,729 $ 71,522 $ 1,406,048 $ 131,130 $ 5,527,055 $ 8,951,484 Disposals during the period — — — — — Additions during the period — — — — — — Re-allocations during the period (265,553 ) 374,546 (108,993 ) — — — Goodwill at September 30, 2015 $ 1,550,176 $ 446,068 $ 1,297,055 $ 131,130 $ 5,527,055 $ 8,951,484 (1) The Global Corporate Banking ("GCB") was formerly designated as the Global Corporate Banking & Market & Large Corporate Banking segment and was renamed during the third quarter of 2015. (2) The Auto Finance & Business Banking was formerly designated as the Auto Finance and Alliances segment and was renamed during the third quarter of 2015. |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | The following table details amounts related to the Company's finite-lived and indefinite-lived intangible assets for the dates indicated. September 30, 2015 December 31, 2014 Net Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization (in thousands) Intangibles subject to amortization: Dealer networks $ 514,643 $ (65,357 ) $ 544,054 $ (35,946 ) Chrysler relationship 113,750 (25,000 ) 125,000 (13,750 ) Core deposit intangibles 1,830 (294,012 ) 7,779 (288,063 ) Other intangibles 6,234 (23,675 ) 8,655 (21,253 ) Total intangibles subject to amortization 636,457 (408,044 ) 685,488 (359,012 ) Intangibles not subject to amortization: Trade name 21,500 — 21,500 — Total Intangibles $ 657,957 $ (408,044 ) $ 706,988 $ (359,012 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense related to intangibles for each of the five succeeding calendar years ending December 31 is: Year Calendar Year Amount Recorded To Date Remaining Amount To Record (in thousands) 2015 $ 64,432 $ 49,031 $ 15,401 2016 57,162 — 57,162 2017 55,055 — 55,055 2018 54,702 — 54,702 2019 54,501 — 54,501 Thereafter 399,636 — 399,636 |
OTHER ASSETS (As Restated) (Tab
OTHER ASSETS (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following is a detail of items that comprise other assets at September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (in thousands) Income tax receivables $ 604,929 $ 938,222 Derivative assets at fair value 415,409 366,061 Other repossessed assets 154,434 136,305 MSRs, at fair value 143,535 145,047 Prepaid expenses 151,017 159,198 OREO 40,692 65,051 Miscellaneous assets and receivables 434,772 1,059,696 Total other assets $ 1,944,788 $ 2,869,580 |
Schedule of Servicing Assets at Fair Value | The following table presents a summary of year to date activity for the Company's residential MSRs that are included in the Condensed Consolidated Balance Sheet. Nine-Month Period Ended September 30, 2015 September 30, 2014 (in thousands) Fair value at beginning of period $ 145,047 $ 141,787 Mortgage servicing assets recognized 17,124 20,081 Principal reductions (19,385 ) (15,999 ) Change in fair value due to valuation assumptions 749 (14,078 ) Fair value at end of period $ 143,535 $ 131,791 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
SHUSA | |
Debt Instrument [Line Items] | |
Schedule of Borrowings and Other Debt Obligation | The following table presents information regarding the Holding Company's borrowings and other debt obligations at the dates indicated: September 30, 2015 December 31, 2014 Balance Effective Rate Balance Effective Rate (dollars in thousands) 3.00% senior notes, due September 2015 $ — — % $ 598,788 3.28 % 4.625% senior notes, due April 2016 475,467 4.85 % 474,718 4.85 % 3.45% senior notes, due August 2018 497,604 3.62 % 497,025 3.62 % 2.65% senior notes, due April 2020 992,211 2.83 % — — % 4.50% senior notes, due July 2025 1,093,824 4.57 % — — % Junior subordinated debentures - Capital Trust VI, due June 2036 69,768 7.91 % 69,751 7.91 % Common securities - Capital Trust VI 10,000 7.91 % 10,000 7.91 % Junior subordinated debentures - Capital Trust IX, due July 2036 149,397 2.09 % 149,375 2.04 % Common securities - Capital Trust IX 4,640 2.09 % 4,640 2.04 % Total holding company borrowings and other debt obligations $ 3,292,911 3.91 % $ 1,804,297 3.89 % |
Santander Bank | |
Debt Instrument [Line Items] | |
Schedule of Borrowings and Other Debt Obligation | The following table presents information regarding the Bank's borrowings and other debt obligations at the dates indicated: September 30, 2015 December 31, 2014 Balance Effective Rate Balance Effective Rate (dollars in thousands) 2.00% senior notes, due January 2018 $ 745,485 2.27 % $ — — % Senior notes, due January 2018 (1) 249,187 1.31 % — — % 8.750% subordinated debentures, due May 2018 498,008 8.92 % 497,530 8.92 % FHLB advances, maturing through August 2018 13,335,000 1.36 % 9,455,000 2.06 % Subordinated term loan, due February 2019 130,678 6.15 % 139,180 6.00 % REIT (2) preferred, due May 2020 154,550 13.54 % 153,417 13.64 % Subordinated term loan, due August 2022 30,867 7.89 % 31,428 7.77 % Total Bank borrowings and other debt obligations $ 15,143,775 1.83 % $ 10,276,555 2.64 % (1) These notes will bear interest at a rate equal to the three-month London Interbank Offered Rate ("LIBOR") plus 93 basis points per annum. (2) Real estate investment trust ("REIT") |
SCUSA | |
Debt Instrument [Line Items] | |
Schedule of Borrowings and Other Debt Obligation | The following tables present information regarding SCUSA's credit facilities as of September 30, 2015 and December 31, 2014 : September 30, 2015 Balance Effective Rate Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 698,715 1.26 % $ 1,001,601 $ 39,046 Warehouse line, maturing on various dates (2) 1,087,977 1.36 % 1,565,626 55,126 Warehouse line, due October 2015 (3) 199,680 2.10 % 261,042 9,433 Warehouse line, due June 2016 397,021 1.18 % 544,546 — Warehouse line, due November 2016 (4) 175,000 1.76 % — — Warehouse line, due November 2016 (4) 250,000 1.76 % — 2,501 Warehouse line, due March 2017 510,899 0.94 % 752,083 22,528 Warehouse line, due July 2017 (5) 874,320 1.18 % 1,006,388 34,531 Warehouse line, due July 2017 (6) 1,608,643 1.17 % 2,481,681 30,818 Repurchase facility, due December 2015 (7) 851,929 1.87 % 1,966 37,844 Line of credit with related party, due December 2016 (8) 500,000 2.51 % — — Line of credit with related party, due December 2016 (8) 1,750,000 2.48 % — — Line of credit with related party, due December 2018 (8) 975,000 2.89 % — — Total SCUSA revolving credit facilities $ 9,879,184 1.76 % $ 7,614,933 $ 231,827 (1) Half of the outstanding balance on this facility matures in March 2016 and half matures in March 2017. (2) In December 2016, $500.0 million of the total revolving commitment under this warehouse line will expire, at which time any utilized balance attributable to that portion of the commitment will become an amortizing obligation; the remainder of the commitment of $2.0 billion matures in June 2017. (3) This line is held exclusively for personal term loans. On October 26, 2015, the maturity date for this warehouse line commitment was extended to November 9, 2015. (4) These lines are collateralized by residuals retained by SCUSA. (5) This line is held exclusively for financing Chrysler loans. (6) This line is held exclusively for financing Chrysler leases. (7) The repurchase facility is collateralized by securitization notes payable retained by SCUSA. No portion of this facility is unsecured. This facility has rolling 30 -day and 90 -day maturities. (8) These lines are also collateralized by securitization notes payable and residuals retained by SCUSA. As of September 30, 2015 , $2.5 billion of the aggregate outstanding balances on these credit facilities was unsecured. NOTE 10. BORROWINGS (continued) December 31, 2014 Balance Effective Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 397,452 1.26 % $ 589,529 $ 20,661 Warehouse line, due March 2015 (2) 250,594 0.98 % — — Warehouse line, due June 2015 243,736 1.17 % 344,822 — Warehouse line, due September 2015 (3) 199,980 1.96 % 351,755 13,169 Warehouse line, due December 2015 468,565 0.93 % 641,709 16,467 Warehouse line, due June 2016 (4) 2,201,511 0.98 % 3,249,263 65,414 Warehouse line, due June 2016 1,051,777 1.06 % 1,481,135 28,316 Warehouse line, due October 2016 (3) 240,487 2.02 % 299,195 17,143 Warehouse line, due November 2016 (5) 175,000 1.71 % — — Warehouse line, due November 2016 (5) 250,000 1.71 % — 2,500 Repurchase facility, maturing on various dates (6) 923,225 1.63 % — 34,184 Line of credit with related party, due December 2016 (7) 500,000 2.46 % 1,340 — Line of credit with related party, due December 2016 (7) 1,750,000 2.33 % — — Line of credit with related party, due December 2018 (7) 1,140,000 2.85 % 9,701 — Total SCUSA revolving credit facilities $ 9,792,327 1.68 % $ 6,968,449 $ 197,854 (1) Half of the outstanding balance on this facility had maturity dates in March 2015 and half matures in March 2016. (2) This line is collateralized by securitization notes payable retained by SCUSA. (3) These lines are held exclusively for personal consumer term loans. (4) This line is held exclusively for Chrysler Capital retail loan and lease financing. (5) These lines are collateralized by residuals retained by SCUSA. (6) The repurchase facility is collateralized by securitization notes payable retained by SCUSA. No portion of this facility is unsecured. This facility has rolling 30 -day and 90 -day maturities. (7) These lines are also collateralized by securitization notes payable and residuals retained by SCUSA. As of December 31, 2014 , $2.2 billion of the aggregate outstanding balances on these credit facilities was unsecured. The following tables present information regarding SCUSA's secured structured financings as of September 30, 2015 and December 31, 2014 : September 30, 2015 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SCUSA public securitizations, maturing on various dates (1) $ 13,377,986 $ 23,863,842 0.89% - 2.29% $ 16,852,670 $ 1,194,363 SCUSA privately issued amortizing notes, maturing on various dates (1) 6,677,464 10,174,679 0.88% - 1.62% 9,831,162 368,134 Total SCUSA secured structured financings $ 20,055,450 $ 34,038,521 0.88% - 2.29% $ 26,683,832 $ 1,562,497 NOTE 10. BORROWINGS (continued) December 31, 2014 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SCUSA public securitizations, maturing on various dates (1) $ 11,523,729 $ 26,682,930 0.89% - 2.80% $ 14,345,242 $ 1,184,047 SCUSA privately issued amortizing notes, maturing on various dates (1) 6,282,474 8,499,111 1.05% - 1.85% 9,114,997 281,038 Total SCUSA secured structured financings $ 17,806,203 $ 35,182,041 0.89% - 2.80% $ 23,460,239 $ 1,465,085 (1) SCUSA has entered into various securitization transactions involving its retail automotive installment loans and leases. These transactions are accounted for as secured financings and therefore both the securitized retail installment contracts and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheet. The maturity of this debt is based on the timing of repayments from the securitized assets. |
DERIVATIVES (As Restated) (Tabl
DERIVATIVES (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative [Line Items] | |
Impact of Derivative Activities in the Condensed Consolidated Statement of Operations | The following Condensed Consolidated Statement of Operations line items were impacted by the Company’s derivative activities for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively: Three-Month Period Nine-Month Period Derivative Activity (1) Accounts 2015 2014 2015 2014 (in thousands) Fair value hedges: Cross-currency swaps Miscellaneous income immaterial immaterial $ 110 $ 774 Interest rate swaps Miscellaneous income (3,985 ) 1,731 (5,437 ) 978 Cash flow hedges: Pay fixed-receive variable interest rate swaps Net interest income (1,775 ) (13,469 ) (9,957 ) (40,936 ) Other derivative activities: Forward commitments to sell loans Mortgage banking income (10,711 ) 2,490 (1,776 ) (2,762 ) Interest rate lock commitments Mortgage banking income 3,595 (2,027 ) 2,417 1,518 Mortgage servicing Mortgage banking income 11,736 1,032 1,302 (4,100 ) Customer related derivatives Miscellaneous income (1,251 ) 3,280 (179 ) 6,941 Foreign exchange Miscellaneous income (109 ) 1,794 (1,973 ) 1,302 SCUSA derivatives Miscellaneous income (3,746 ) 9,130 711 27,269 Net interest income 21,093 (971 ) 58,453 (4,951 ) Other administrative expenses 3,836 (1,290 ) (10,197 ) (4,447 ) Other Miscellaneous income (1,649 ) 580 (2,107 ) (729 ) (1) - Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected. |
Offsetting Assets | Information about financial assets and liabilities that are eligible for offset on the Condensed Consolidated Balance Sheet as of September 30, 2015 and December 31, 2014 , respectively, is presented in the following tables: Offsetting of Financial Assets Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (in thousands) September 30, 2015 Fair value hedges $ 3,708 $ — $ 3,708 $ — $ — $ 3,708 Cash flow hedges — — — — — — Other derivative activities (1) 415,236 9,015 406,221 8,027 45,306 352,888 Total derivatives subject to a master netting arrangement or similar arrangement 418,944 9,015 409,929 8,027 45,306 356,596 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 5,480 — 5,480 — — 5,480 Total Derivative Assets $ 424,424 $ 9,015 $ 415,409 $ 8,027 $ 45,306 $ 362,076 Total Financial Assets $ 424,424 $ 9,015 $ 415,409 $ 8,027 $ 45,306 $ 362,076 December 31, 2014 Fair value hedges $ 2,943 $ — $ 2,943 $ — $ — $ 2,943 Cash flow hedges 7,619 — 7,619 — — 7,619 Other derivative activities (1) 373,545 21,109 352,436 10,020 5,940 336,476 Total derivatives subject to a master netting arrangement or similar arrangement 384,107 21,109 362,998 10,020 5,940 347,038 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 3,063 — 3,063 — — 3,063 Total Derivative Assets $ 387,170 $ 21,109 $ 366,061 $ 10,020 $ 5,940 $ 350,101 Total Financial Assets $ 387,170 $ 21,109 $ 366,061 $ 10,020 $ 5,940 $ 350,101 (1) Includes customer-related and other derivatives. (2) Includes mortgage banking derivatives. |
Offsetting Liabilities | Offsetting of Financial Liabilities Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Condensed Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (in thousands) September 30, 2015 Fair value hedges $ 6,445 $ — $ 6,445 $ 114 $ 12,703 $ (6,372 ) Cash flow hedges 71,178 71,178 — 79,437 (8,259 ) Other derivative activities (1) 397,158 102,934 294,224 8,016 218,906 67,302 Total derivatives subject to a master netting arrangement or similar arrangement 474,781 102,934 371,847 8,130 311,046 52,671 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 53,690 — 53,690 — — 53,690 Total Derivative Liabilities $ 528,471 $ 102,934 $ 425,537 $ 8,130 $ 311,046 $ 106,361 Total Financial Liabilities $ 528,471 $ 102,934 $ 425,537 $ 8,130 $ 311,046 $ 106,361 December 31, 2014 Fair value hedges $ 1,759 $ — $ 1,759 $ 65 $ 5,589 $ (3,895 ) Cash flow hedges 20,552 — 20,552 7,341 16,797 (3,586 ) Other derivative activities (1) 350,863 21,109 329,754 49,318 198,103 82,333 Total derivatives subject to a master netting arrangement or similar arrangement 373,174 21,109 352,065 56,724 220,489 74,852 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 50,710 — 50,710 — 1,736 48,974 Total Derivative Liabilities $ 423,884 $ 21,109 $ 402,775 $ 56,724 $ 222,225 $ 123,826 Total Financial Liabilities $ 423,884 $ 21,109 $ 402,775 $ 56,724 $ 222,225 $ 123,826 (1) Includes customer-related and other derivatives (2) Includes mortgage banking derivatives |
Designated as hedging instrument | |
Derivative [Line Items] | |
Schedule of Derivative Instruments | Derivatives designated as accounting hedges at September 30, 2015 and December 31, 2014 included: Notional Amount Asset Liability Weighted Average Receive Rate Weighted Average Pay Rate Weighted Average Life (Years) (dollars in thousands) September 30, 2015 Fair value hedges: Cross-currency swaps $ 16,757 $ 3,555 $ 309 4.76 % 4.75 % 0.36 Interest rate swaps 318,000 153 6,136 1.00 % 2.29 % 3.75 Cash flow hedges: Pay fixed — receive floating interest rate swaps 10,751,056 — 71,178 0.20 % 1.09 % 3.12 Total $ 11,085,813 $ 3,708 $ 77,623 0.23 % 1.13 % 3.13 December 31, 2014 Fair Value hedges: Cross-currency swaps $ 18,230 $ 2,711 $ 980 4.76 % 4.75 % 1.11 Interest rate swaps 257,000 232 779 0.90 % 2.38 % 4.33 Cash flow hedges: Pay fixed — receive floating interest rate swaps 10,086,103 7,619 20,552 0.17 % 1.11 % 3.02 Total $ 10,361,333 $ 10,562 $ 22,311 0.19 % 1.14 % 3.05 |
Not designated as hedging instrument | |
Derivative [Line Items] | |
Schedule of Other Derivative Activities | Other derivative activities at September 30, 2015 and December 31, 2014 included: Notional Asset derivatives Fair value Liability derivatives Fair value September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (in thousands) Mortgage banking derivatives: Forward commitments to sell loans $ 482,207 $ 328,757 $ — $ — $ 4,200 $ 2,424 Interest rate lock commitments 248,375 163,013 5,480 3,063 — — Mortgage servicing 435,000 469,000 3,684 7,432 2,399 7,448 Total mortgage banking risk management 1,165,582 960,770 9,164 10,495 6,599 9,872 Customer related derivatives: Swaps receive fixed 8,624,004 7,927,522 300,848 213,415 1,194 4,343 Swaps pay fixed 8,749,748 7,944,247 3,306 13,361 267,923 186,732 Other 2,983,761 1,670,696 44,899 62,464 43,931 61,880 Total customer related derivatives 20,357,513 17,542,465 349,053 289,240 313,048 252,955 Other derivative activities: Foreign exchange contracts 2,136,160 1,152,125 29,413 20,033 28,743 17,390 Interest rate swap agreements 2,833,000 3,231,000 — 535 12,743 12,743 Interest rate cap agreements 9,211,000 7,541,385 24,451 49,762 — — Options for interest rate cap agreements 9,211,000 7,541,385 — — 24,462 49,806 Total return settlement 1,404,726 1,404,726 — — 53,322 48,893 Other 822,534 646,321 8,635 6,543 11,931 9,914 Total $ 47,141,515 $ 40,020,177 $ 420,716 $ 376,608 $ 450,848 $ 401,573 |
ACCUMULATED OTHER COMPREHENSI36
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the components of accumulated other comprehensive income/ (loss), net of related tax, for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively. Total Other Comprehensive Income/(Loss) Total Accumulated Three-Month Period Ended September 30, 2015 June 30, 2015 September 30, 2015 Pretax Activity Tax Effect Net Activity Beginning Balance Net Activity Ending Balance (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (45,805 ) $ 16,975 $ (28,830 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 1,774 (657 ) 1,117 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (44,031 ) 16,318 (27,713 ) $ (22,161 ) $ (27,713 ) $ (49,874 ) Change in unrealized gains/(losses) on investment securities available-for-sale 135,217 (52,711 ) 82,506 Reclassification adjustment for net losses/(gains) included in net income on non-OTTI securities (2) 1,993 (777 ) 1,216 Net unrealized gains/(losses) on investment securities available-for-sale 137,210 (53,488 ) 83,722 (74,758 ) 83,722 8,964 Pension and post-retirement actuarial gain/(loss) (3) 1,018 (398 ) 620 (28,583 ) 620 (27,963 ) As of September 30, 2015 $ 94,197 $ (37,568 ) $ 56,629 $ (125,502 ) $ 56,629 $ (68,873 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated For the Nine-Month Period December 31, 2014 September 30, 2015 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (67,051 ) $ 25,226 $ (41,825 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 9,957 (3,746 ) 6,211 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (57,094 ) 21,480 (35,614 ) $ (14,260 ) $ (35,614 ) $ (49,874 ) Change in unrealized gains/(losses) on investment securities available-for-sale 119,553 (47,692 ) 71,861 Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (18,363 ) 7,325 (11,038 ) Reclassification adjustment for net losses/(gains) included in net income/(expense) on OTTI securities (3) 1,092 (436 ) 656 Reclassification adjustment for net (gains)/losses included in net income (17,271 ) 6,889 (10,382 ) Net unrealized gains/(losses) on investment securities available-for-sale 102,282 (40,803 ) 61,479 (52,515 ) 61,479 8,964 Pension and post-retirement actuarial gain/(loss) (3) 3,054 (1,382 ) 1,672 (29,635 ) 1,672 (27,963 ) As of September 30, 2015 $ 48,242 $ (20,705 ) $ 27,537 $ (96,410 ) $ 27,537 $ (68,873 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Three-Month Period Ended September 30, 2014 June 30, 2014 September 30, 2014 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated gains/(losses) on cash flow hedge derivative financial instruments $ 13,667 $ (5,018 ) $ 8,649 Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 13,797 (5,065 ) 8,732 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments 27,464 (10,083 ) 17,381 $ (32,782 ) $ 17,381 $ (15,401 ) Change in unrealized (losses).gains on investment securities available-for-sale (28,911 ) 11,294 (17,617 ) Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (131 ) 51 (80 ) Net unrealized (losses)/gains on investment securities available-for-sale (29,042 ) 11,345 (17,697 ) (70,404 ) (17,697 ) (88,101 ) Pension and post-retirement actuarial gain/(loss) (3) 447 (175 ) 272 (14,718 ) 272 (14,446 ) As of September 30, 2014 $ (1,131 ) $ 1,087 $ (44 ) $ (117,904 ) $ (44 ) $ (117,948 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (continued) Total Other Total Accumulated Nine-Month Period Ended September 30, 2014 December 31, 2013 September 30, 2014 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (3,453 ) $ 1,259 $ (2,194 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 41,264 (15,048 ) 26,216 Net unrealized gains/(losses) on cash flow hedge derivative financial instruments 37,811 (13,789 ) 24,022 $ (39,423 ) $ 24,022 $ (15,401 ) Change in unrealized gains/(losses) on investment securities available-for-sale 2,623,062 (1,028,228 ) 1,594,834 Reclassification adjustment for net gains included in net (gains)/losses on non-OTTI securities (2) (2,440,019 ) 956,476 (1,483,543 ) Net unrealized gains/(losses) on investment securities available-for-sale 183,043 (71,752 ) 111,291 (199,392 ) 111,291 (88,101 ) Pension and post-retirement actuarial gain/(loss) (3) 1,341 (234 ) 1,107 (15,553 ) 1,107 (14,446 ) As of September 30, 2014 $ 222,195 $ (85,775 ) $ 136,420 $ (254,368 ) $ 136,420 $ (117,948 ) (1) Net losses reclassified into Interest on borrowings and other debt obligations in the Condensed Consolidated Statement of Operations for settlements of interest rate swap contracts designated as cash flow hedges. (2) Net gains reclassified into Net gain on sale of investment securities sales in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Included in the computation of net periodic pension costs. |
COMMITMENTS, CONTINGENCIES, A37
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments Amount | The following table details the amount of commitments at the dates indicated: Other Commitments September 30, 2015 December 31, 2014 (in thousands) Commitments to extend credit $ 30,570,879 $ 28,792,062 Unsecured revolving lines of credit — 5 Letters of credit 1,890,547 1,789,666 Recourse and credit enhancement exposure on sold loans 71,845 174,902 Commitments to sell loans 60,921 82,791 Total commitments $ 32,594,192 $ 30,839,426 |
Schedule of Commitments to Extend Credit, Expiration Periods | The following table details the amount of commitments to extend credit expiring per period as of the dates indicated: September 30, 2015 December 31, 2014 (in thousands) One year or less $ 5,563,216 $ 5,968,468 Over 1 year to 3 years 5,626,208 5,322,291 Over 3 years to 5 years 12,254,421 10,810,213 Over 5 years (1) 7,127,034 6,691,090 Total $ 30,570,879 $ 28,792,062 (1) Includes certain commitments to extend credit that do not have a contractual maturity date, but are expected to be outstanding greater than 5 years. |
Schedule of Letters of Credit, Expiration Periods | The following table details the amount of letters of credit expiring per period as of the dates indicated: September 30, 2015 December 31, 2014 (in thousands) One year or less $ 1,312,652 $ 1,250,124 Over 1 year to 3 years 246,126 285,108 Over 3 years to 5 years 310,476 248,209 Over 5 years 21,293 6,225 Total $ 1,890,547 $ 1,789,666 |
Schedule of Representation and Warranty Reserve Activity | The table below represents the activity in the representation and warranty reserve for the dates indicated. Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Beginning Balance $ 23,008 $ 40,862 $ 24,266 $ 54,836 Changes in Estimate 655 10,894 935 3,315 Claims (429 ) (794 ) (1,967 ) (7,189 ) Ending Balance $ 23,234 $ 50,962 $ 23,234 $ 50,962 |
FAIR VALUE (As Restated) (Table
FAIR VALUE (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the assets and liabilities that are measured at fair value on a recurring basis by major product category and fair value hierarchy as of September 30, 2015 and December 31, 2014 . Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: US Treasury securities $ — $ 3,209,863 $ — $ 3,209,863 Corporate debt — 1,563,099 — 1,563,099 Asset-backed securities — 321,924 1,622,727 1,944,651 Equity securities 10,528 — — 10,528 State and municipal securities — 761,322 — 761,322 Mortgage backed securities — 13,561,721 — 13,561,721 Total investment securities available-for-sale 10,528 19,417,929 1,622,727 21,051,184 Retail installment contracts held for investment — — 374,158 374,158 Loans held-for-sale — 280,764 — 280,764 Mortgage servicing rights — — 143,535 143,535 Derivatives: Fair value — 3,708 — 3,708 Mortgage banking interest rate lock commitments — — 5,480 5,480 Customer related — 349,053 — 349,053 Foreign exchange — 29,413 — 29,413 Mortgage servicing — 3,684 — 3,684 Interest rate cap agreements — 24,451 — 24,451 Other — 8,620 15 8,635 Total financial assets $ 10,528 $ 20,117,622 $ 2,145,915 $ 22,274,065 Financial liabilities: Derivatives: Fair value $ — $ 6,445 $ — $ 6,445 Cash flow — 71,178 — 71,178 Mortgage banking forward sell commitments — 4,200 — 4,200 Customer related — 313,048 — 313,048 Total return swap — — 282 282 Foreign exchange — 28,743 — 28,743 Mortgage servicing — 2,399 — 2,399 Interest rate swaps — 12,743 — 12,743 Option for interest rate cap — 24,462 — 24,462 Total return settlement — — 53,322 53,322 Other — 11,513 136 11,649 Total financial liabilities $ — $ 474,731 $ 53,740 $ 528,471 NOTE 16. FAIR VALUE (As Restated) (continued) Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: US Treasury securities $ — $ 1,695,767 $ — $ 1,695,767 Corporate debt — 2,182,401 — 2,182,401 Asset-backed securities — 1,452,760 1,267,643 2,720,403 Equity securities 10,343 — — 10,343 State and municipal securities — 1,823,462 — 1,823,462 Mortgage backed securities — 7,475,702 — 7,475,702 Total investment securities available-for-sale 10,343 14,630,092 1,267,643 15,908,078 Trading securities — 833,936 — 833,936 Retail installment contracts held for investment — — 845,911 845,911 Loans held-for-sale — 213,666 — 213,666 Mortgage servicing rights — — 145,047 145,047 Derivatives: Fair value — 2,943 — 2,943 Cash flow — 7,619 — 7,619 Mortgage banking interest rate lock commitments — — 3,063 3,063 Customer related — 289,240 — 289,240 Foreign exchange — 20,033 — 20,033 Mortgage servicing — 7,432 — 7,432 Interest rate swap agreements — 535 — 535 Interest rate cap agreements — 49,762 — 49,762 Other — 6,536 7 6,543 Total financial assets $ 10,343 $ 16,061,794 $ 2,261,671 $ 18,333,808 Financial liabilities: Derivatives: Fair value $ — $ 1,759 $ — $ 1,759 Cash flow — 20,552 — 20,552 Mortgage banking forward sell commitments — 2,424 — 2,424 Customer related — 252,955 — 252,955 Total return swap — 1,736 282 2,018 Foreign exchange — 17,390 — 17,390 Mortgage servicing — 7,448 — 7,448 Interest rate swaps — 12,743 — 12,743 Option for interest rate cap — 49,806 — 49,806 Total return settlement — — 48,893 48,893 Other — 7,823 73 7,896 Total financial liabilities $ — $ 374,636 $ 49,248 $ 423,884 |
Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis that were still held on the balance sheet were as follows: Quoted Prices in Active Significant Other Significant Fair Value (in thousands) September 30, 2015 Impaired loans held for investment $ — $ 89,338 $ 360 $ 89,698 Foreclosed assets — 21,908 — 21,908 Vehicle inventory — 182,069 — 182,069 December 31, 2014 Impaired loans held for investment $ — $ 101,218 $ 67,699 $ 168,917 Foreclosed assets — 45,599 — 45,599 Vehicle inventory — 136,136 — 136,136 Indefinite lived intangibles — — 21,500 21,500 |
Increases and Decreases in Value of Certain Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the increases and decreases in value of certain assets that are measured at fair value on a nonrecurring basis for which a fair value adjustment has been included in the Condensed Consolidated Statements of Operations relating to assets held at period-end: Statement of Operations Three-Month Period Nine-Month Period 2015 2014 2015 2014 (in thousands) Impaired loans held for investment Provision for credit losses $ (2,888 ) $ (12,826 ) $ (1,445 ) $ (17,652 ) Foreclosed assets Other administrative expense (474 ) (167 ) (1,501 ) (519 ) $ (3,362 ) $ (12,993 ) $ (2,946 ) $ (18,171 ) |
Rollforward for Recurring Assets and Liabilities | The tables below present the changes in all Level 3 balances for the three-month and nine-month periods ended September 30, 2015 and 2014 , respectively. Three-Month Period Ended September 30, 2015 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, June 30, 2015 $ 1,539,483 $ 494,651 $ 157,147 $ (57,592 ) $ 2,133,689 (Losses) in other comprehensive income (5,307 ) — — — (5,307 ) Gains/(losses) in earnings — 39,296 (13,472 ) 7,340 33,164 Additions/Issuances 311,540 — 5,795 — 317,335 Settlements (1) (222,989 ) (159,789 ) (5,935 ) 2,007 (386,706 ) Balance, September 30, 2015 $ 1,622,727 $ 374,158 $ 143,535 $ (48,245 ) $ 2,092,175 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2015 $ — $ 39,296 $ (13,472 ) $ 3,745 $ 29,569 Nine-Month Period Ended September 30, 2015 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2014 $ 1,267,643 $ 845,911 $ 145,047 $ (46,178 ) $ 2,212,423 (Losses) in other comprehensive income (8,961 ) — — — (8,961 ) Gains/(losses) in earnings — 219,837 749 (8,130 ) 212,456 Additions/Issuances 910,135 — 17,124 — 927,259 Settlements (1) (546,090 ) (691,590 ) (19,385 ) 6,063 (1,251,002 ) Balance, September 30, 2015 $ 1,622,727 $ 374,158 $ 143,535 $ (48,245 ) $ 2,092,175 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2015 $ — $ 219,837 $ 749 $ (10,547 ) $ 210,039 (1) Settlements include charge-offs, prepayments, pay downs and maturities. NOTE 16. FAIR VALUE (As Restated) (continued) Three-Month Period Ended September 30, 2014 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, June 30, 2014 $ 1,243,872 $ 1,273,072 $ 124,118 $ (43,534 ) $ 2,597,528 (Losses) in other comprehensive income (849 ) — — — (849 ) Gains/(losses) in earnings — 116,177 (2,726 ) (3,408 ) 110,043 Additions/Issuances 69,543 — 16,078 — 85,621 Settlements (1) (138,107 ) (362,737 ) (5,679 ) 2,453 (504,070 ) Balance, September 30, 2014 $ 1,174,459 $ 1,026,512 $ 131,791 $ (44,489 ) $ 2,288,273 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2014 $ — $ 116,177 $ (2,726 ) $ (1,381 ) $ 112,070 Nine-Month Period Ended September 30, 2014 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2013 $ 52,940 $ — $ 141,787 $ (50,221 ) $ 144,506 Gains in other comprehensive income 1,021 — — — 1,021 Gains/(losses) in earnings — 475,607 (14,078 ) (3,235 ) 458,294 Additions/Issuances 171,869 1,870,383 20,081 — 2,062,333 Settlements (1) (222,831 ) (1,319,478 ) (15,999 ) 8,967 (1,549,341 ) Transfers into level 3 1,171,460 — — — 1,171,460 Balance, September 30, 2014 $ 1,174,459 $ 1,026,512 $ 131,791 $ (44,489 ) $ 2,288,273 Changes in unrealized gains (losses) included in earnings related to balances still held at September 30, 2014 $ — $ 475,607 $ (14,078 ) $ (4,753 ) $ 456,776 (1) Settlements include charge-offs, prepayments, pay downs and maturities. |
Quantitative Information on Level 3 Recurring Assets and Liabilities | The following table presents quantitative information about the significant unobservable inputs within significant Level 3 recurring assets and liabilities. Fair Value at September 30, 2015 Valuation Technique Unobservable Inputs Range (in thousands) Financial Assets: Asset-backed securities Financing bonds $ 1,571,741 Discounted Cash Flow Discount Rate (1) 0.79% - 2.01% (1.10%) Sale-leaseback securities $ 50,986 Consensus Pricing (2) Offered quotes (3) 130.15 % Retail installment contracts held for investment $ 374,158 Discounted Cash Flow ABS (4) 0.40 % Prepayment rate (CPR) (5) 11.00 % Discount Rate (6) 5.95% - 12.00% (10.63%) Recovery Rate (7) 25.00% - 43.00% (31.67%) Mortgage servicing rights $ 143,535 Discounted Cash Flow Prepayment rate (CPR) (8) 0.01% - 36.43% (10.38%) Discount Rate (9) 9.90 % Mortgage banking interest rate lock commitments $ 5,480 Discounted Cash Flow Pull through percentage (10) 77.46 % MSR value (11) 0.71% - 1.07% (1.02%) Financial Liabilities: Total return settlement $ 53,322 Discounted Cash Flow Discount Rate (5) 8.72 % (1) Based on the applicable term and discount index. (2) Consensus pricing refers to fair value estimates that are generally developed using information such as dealer quotes or other third-party valuations or comparable asset prices. (3) Based on the nature of the input, a range or weighted average does not exist. For sale-lease back securities, the Company owns one security. (4) Based on the historical default rate and adjustments to reflect voluntary prepayments. (5) Based on the analysis of available data from a comparable market securitization of similar assets. (6) Based on the cost of funding of debt issuance and recent historical equity yields. (7) Based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. (8) Average CPR projected from collateral stratified by loan type, note rate and maturity. (9) Based on the nature of the input, a range or weighted average does not exist. (10) Historical weighted average based on principal balance calculated as the percentage of loans originated for sale divided by total commitments less outstanding commitments. (11) MSR value is the estimated value of the servicing right embedded in the underlying loan, expressed in basis points of outstanding unpaid principal balance. |
Schedule of Fair Value of Financial Instruments | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments are as follows: September 30, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and amounts due from depository institutions $ 4,619,782 $ 4,619,782 $ 4,619,782 $ — $ — Available-for-sale investment securities 21,051,184 21,051,184 10,528 19,417,929 1,622,727 Loans held for investment, net 75,816,054 75,683,065 — 89,338 75,593,727 Loans held-for-sale 2,990,708 3,041,325 — 3,041,325 — Restricted cash 2,431,103 2,431,103 2,431,103 — — Mortgage servicing rights 143,535 143,535 — — 143,535 Derivatives 424,424 424,424 — 418,929 5,495 Financial liabilities: Deposits 55,543,255 55,565,093 47,377,317 8,187,776 — Borrowings and other debt obligations 48,371,320 49,378,230 — 39,499,046 9,879,184 Derivatives 528,471 528,471 — 474,731 53,740 December 31, 2014 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and amounts due from depository institutions $ 2,201,783 $ 2,201,783 $ 2,201,783 $ — $ — Available-for-sale investment securities 15,908,078 15,908,078 10,343 14,630,092 1,267,643 Trading securities 833,936 833,936 — 833,936 — Loans held for investment, net 74,293,865 74,265,569 — 101,218 74,164,351 Loans held-for-sale 260,252 260,251 — 260,251 — Restricted cash 2,024,838 2,024,838 2,024,838 — — Mortgage servicing rights 145,047 145,047 — — 145,047 Derivatives 387,170 387,170 — 384,100 3,070 Financial liabilities: Deposits 52,474,007 52,507,347 45,162,698 7,344,649 — Borrowings and other debt obligations 39,679,382 40,147,937 — 30,355,610 9,792,327 Derivatives 423,884 423,884 — 374,636 49,248 |
Summary of Difference Between Fair Value and Principal Balance of LHFS | The following table summarizes the difference between the fair value and the principal balance of LHFS and retail installment contracts measured at fair value as of September 30, 2015 . Fair Value Aggregate Unpaid Principal Balance Difference (in thousands) Loans held-for-sale $ 280,764 $ 273,846 $ 6,918 Nonaccrual loans — — — Retail installment contracts held for investment $ 374,158 $ 496,200 $ (122,042 ) Nonaccrual loans 46,310 72,279 (25,969 ) |
BUSINESS SEGMENT INFORMATION 39
BUSINESS SEGMENT INFORMATION (As Restated) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present certain information regarding the Company’s segments. For the Three-Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2015 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 214,208 $ 70,445 $ 67,302 $ 54,381 $ (20,594 ) $ 1,176,411 $ 71,620 $ 116 $ 1,633,889 Total non-interest income 167,696 12,431 23,158 19,047 22,852 382,700 101,102 (9,991 ) 718,995 Gain on change in control — — — — — — — — — Provision/(release) for credit losses 7,094 (6,329 ) 9,898 (10,931 ) (18,357 ) 723,921 231,869 — 937,165 Total expenses 442,843 44,993 17,427 26,410 93,197 462,214 15,034 (13,975 ) 1,088,143 (Loss)/Income before income taxes (68,033 ) 44,212 63,135 57,949 (72,582 ) 372,976 (74,181 ) 4,100 327,576 Intersegment revenue/(expense) (1) 238 1,203 368 (2,241 ) 432 — — — — Total assets 21,944,625 15,796,714 15,012,129 12,200,062 30,703,998 35,329,343 — — 130,986,871 For the Nine-Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2015 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 627,152 $ 202,833 $ 202,126 $ 157,555 $ (18,189 ) $ 3,469,970 $ 342,018 $ 260 $ 4,983,725 Total non-interest income 523,337 35,704 39,324 60,437 67,397 1,137,296 184,390 (38,304 ) 2,009,581 Gain on change in control — — — — — — — — — Provision/(release) for credit losses 33,779 1,370 22,694 (5,173 ) 12,706 1,935,147 955,532 — 2,956,055 Total expenses 1,306,508 135,966 54,392 79,310 203,182 1,360,708 43,438 (40,849 ) 3,142,655 (Loss)/Income before income taxes (189,798 ) 101,201 164,364 143,855 (166,680 ) 1,311,411 (472,562 ) 2,805 894,596 Intersegment revenue/(expense) (1) 891 2,961 1,467 (5,886 ) 567 — — — — Total assets 21,944,625 15,796,714 15,012,129 12,200,062 30,703,998 35,329,343 — — 130,986,871 (1) Intersegment revenue/(expense) represents charges or credits for funds used or provided by each of the segments and is included in net interest income. (2) Other is not considered a segment and includes earnings from non-strategic assets, the investment portfolio, interest expense on the Bank’s and Holding Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SCUSA by analyzing the pre-Change in Control results of SCUSA as disclosed in this column. (4) Purchase Price Adjustments represents the impact that SCUSA purchase marks had on the results of SCUSA included within the consolidated operations of SHUSA, while eliminations eliminate intercompany transactions. NOTE 17. BUSINESS SEGMENT INFORMATION (As Restated) (continued) For the Three- Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2014 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 206,182 $ 62,548 $ 65,060 $ 46,536 $ 21,507 $ 1,054,292 $ 159,849 $ 29 $ 1,616,003 Total non-interest income 205,135 11,496 6,791 21,072 38,777 289,209 47,486 (16,220 ) 603,746 Provision/(release) for credit losses 36,083 34,032 (84,235 ) 7,990 6,130 722,159 24,504 — 746,663 Total expenses 405,533 38,671 23,770 26,142 71,486 343,617 15,153 (14,784 ) 909,588 Income/(loss) before income taxes (30,299 ) 1,341 132,316 33,476 (17,332 ) 277,725 167,678 (1,407 ) 563,498 Intersegment revenue/(expense) (1) 257 1,493 62 (1,653 ) (159 ) — — — — Total assets 21,882,105 14,288,909 14,161,237 9,807,122 22,964,250 30,817,353 — — 113,920,976 For the Nine- Month Period Ended SHUSA excluding SCUSA SCUSA (4) September 30, 2014 Consumer & Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SCUSA (3) SCUSA Purchase Price Adjustments Eliminations Total (in thousands) Net interest income $ 615,362 $ 177,879 $ 187,445 $ 131,695 $ 69,304 $ 3,117,685 $ 381,554 $ (332,746 ) $ 4,348,178 Total non-interest income 423,750 35,563 28,013 56,512 95,861 741,125 293,909 (88,886 ) 1,585,847 Gain on Change in Control — — — — — — 2,417,563 — 2,417,563 Provision/(release) for credit losses 54,711 (3,240 ) (95,339 ) 6,228 (2,360 ) 1,829,307 59,633 (215,051 ) 1,633,889 Total expenses 1,131,708 111,574 62,740 72,620 183,024 1,134,571 120,601 (256,464 ) 2,560,374 Income/(loss) before income taxes (147,307 ) 105,108 248,057 109,359 (15,499 ) 894,932 2,912,792 49,883 4,157,325 Intersegment revenue/(expense) (1) 851 3,643 839 (5,451 ) 118 — — — — Total assets 21,882,105 14,288,909 14,161,237 9,807,122 22,964,250 30,817,353 — — 113,920,976 (1) Intersegment revenue/(expense) represents charges or credits for funds used or provided by each of the segments and is included in net interest income. (2) Other is not considered a segment and includes earnings from non-strategic assets, the investment portfolio, interest expense on the Bank’s and Holding Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SCUSA by analyzing the pre-Change in Control results of SCUSA as disclosed in this column. (4) Purchase Price Adjustments represent the impact that SCUSA purchase marks had on the results of SCUSA included within the consolidated operations of SHUSA, while eliminations adjust for the one month that SHUSA accounted for SCUSA as an equity method investment and eliminate intercompany transactions. |
RESTATEMENTS (Tables)
RESTATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Corrections to the Financial Statements | The Company has corrected its accretion methodology and has determined that the various aspects had the following impacts as of each balance sheet date: September 30, 2015 December 31, 2014 (in thousands) Overstatement of loans held for investment $ 79,177 $ 28,647 Overstatement of allowance (TDR impairment) 6,326 817 This error also had the following impacts on the Condensed Consolidated Statements of Operations and Comprehensive Income: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (in thousands) Overstatement of Interest income - Loans $ (49,372 ) $ (9,253 ) $ (115,790 ) $ (38,604 ) Overstatement of Provision for credit losses 45,432 13,667 77,464 15,947 Understatement of Miscellaneous income 2,283 (2,364 ) 7,753 2,358 $ (1,657 ) $ 2,050 $ (30,573 ) $ (20,299 ) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Cash and cash equivalents $ 4,669,373 $ — $ 4,669,373 $ (49,591 ) $ 4,619,782 Loans held-for-investment 78,709,721 (46,329 ) 78,663,392 (80,194 ) 78,583,198 Allowance for loan and lease losses (2,912,346 ) 110,943 (2,801,403 ) 34,259 (2,767,144 ) Net loans held-for-investment 75,797,375 64,614 75,861,989 (45,935 ) 75,816,054 Leased vehicles, net 8,084,712 — 8,084,712 (12,517 ) 8,072,195 Goodwill 8,892,011 — 8,892,011 59,473 8,951,484 Intangible assets, net 686,457 — 686,457 (28,500 ) 657,957 Other assets 1,811,214 — 1,811,214 133,574 1,944,788 Total assets 130,865,753 64,614 130,930,367 56,504 130,986,871 Accrued expenses and payables 1,691,565 — 1,691,565 (166,233 ) 1,525,332 Advance payments by borrowers for taxes and insurance 210,285 — 210,285 (1,764 ) 208,521 Deferred tax liabilities, net 1,217,066 19,106 1,236,172 43,547 1,279,719 Other liabilities 595,527 — 595,527 117,985 713,512 Total liabilities 107,629,018 19,106 107,648,124 (6,465 ) 107,641,659 Common stock and paid-in capital 14,717,564 — 14,717,564 11,942 14,729,506 Retained earnings 4,111,611 27,878 4,139,489 5,242 4,144,731 Total SHUSA stockholder's equity 18,955,747 27,878 18,983,625 17,184 19,000,809 Noncontrolling interest 4,280,988 17,630 4,298,618 45,785 4,344,403 Total stockholder's equity 23,236,735 45,508 23,282,243 62,969 23,345,212 Total liabilities and stockholder's equity $ 130,865,753 $ 64,614 $ 130,930,367 $ 56,504 $ 130,986,871 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of December 31, 2014 . As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Cash and cash equivalents $ 2,234,725 $ — $ 2,234,725 $ (32,942 ) $ 2,201,783 Loans held-for-investment 76,032,562 (8,448 ) 76,024,114 (28,647 ) 75,995,467 Allowance for loan and lease losses (2,108,817 ) 358,174 (1,750,643 ) 49,041 (1,701,602 ) Net loans held-for-investment 73,923,745 349,726 74,273,471 20,394 74,293,865 Leased vehicles, net 6,638,115 — 6,638,115 (14,145 ) 6,623,970 Goodwill 8,892,011 — 8,892,011 59,473 8,951,484 Intangible assets, net 735,488 — 735,488 (28,500 ) 706,988 Other assets 2,860,121 (30,271 ) 2,829,850 39,730 2,869,580 Total assets 118,457,415 319,455 118,776,870 44,010 118,820,880 Accrued expenses and payables 1,902,278 — 1,902,278 (11,043 ) 1,891,235 Borrowings and other debt obligations (3) 39,709,653 (30,271 ) 39,679,382 — 39,679,382 Advance payments by borrowers for taxes and insurance 167,670 — 167,670 (1,526 ) 166,144 Deferred tax liabilities, net 1,025,948 141,133 1,167,081 (7,110 ) 1,159,971 Other liabilities 673,764 — 673,764 48,921 722,685 Total liabilities 95,953,320 110,862 96,064,182 29,242 96,093,424 Stockholder's equity Retained earnings 3,714,642 122,480 3,837,122 9,295 3,846,417 Total SHUSA stockholder's equity 18,543,286 122,480 18,665,766 9,295 18,675,061 Noncontrolling interest 3,960,809 86,113 4,046,922 5,473 4,052,395 Total stockholder's equity 22,504,095 208,593 22,712,688 14,768 22,727,456 Total liabilities and stockholder's equity $ 118,457,415 $ 319,455 $ 118,776,870 $ 44,010 $ 118,820,880 (1) Originally reported amounts included in the Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 18, 2015. (2) Reported amounts included in the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. (3) The changes to borrowings and other debt obligations illustrate the impact of the Company's adoption of ASU 2015-03 which required retrospective adoption and are not the result of a correction of an error. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the nine-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Interest on loans $ 5,690,548 $ — $ 5,690,548 $ (115,790 ) $ 5,574,758 Total interest income 5,975,520 — 5,975,520 (115,790 ) 5,859,730 Net interest income 5,099,515 — 5,099,515 (115,790 ) 4,983,725 Provision for credit losses 2,728,118 285,112 3,013,230 (57,175 ) 2,956,055 Net interest income after provision for credit losses 2,371,397 (285,112 ) 2,086,285 (58,615 ) 2,027,670 Consumer fees 324,119 — 324,119 7,959 332,078 Lease income 1,328,401 (316,636 ) 1,011,765 5,946 1,017,711 Miscellaneous income 376,630 — 376,630 7,754 384,384 Total fees and other income 2,287,287 (316,636 ) 1,970,651 21,659 1,992,310 Total non-interest income 2,304,558 (316,636 ) 1,987,922 21,659 2,009,581 Compensation and benefits 1,012,887 — 1,012,887 (22,221 ) 990,666 Occupancy and equipment expenses 397,769 — 397,769 (122 ) 397,647 Loan expense 296,135 — 296,135 (21,613 ) 274,522 Lease expense 1,068,137 (316,636 ) 751,501 4,444 755,945 Other administrative expenses 257,850 — 257,850 697 258,547 Total general and administrative expenses 3,405,969 (316,636 ) 3,089,333 (38,815 ) 3,050,518 Income/(loss) before income taxes 1,177,849 (285,112 ) 892,737 1,859 894,596 Income tax provision/(benefit) 474,708 (122,027 ) 352,681 10,671 363,352 Net income/(loss) including noncontrolling interest 703,141 (163,085 ) 540,056 (8,812 ) 531,244 Less: net income/(loss) attributable to noncontrolling interest 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Net income/(loss) attributable to SHUSA $ 407,919 $ (94,602 ) $ 313,317 $ (4,053 ) $ 309,264 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the three-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Interest on loans $ 1,884,226 $ — $ 1,884,226 $ (49,373 ) $ 1,834,853 Total interest income 1,982,824 — 1,982,824 (49,373 ) 1,933,451 Net interest income 1,683,262 — 1,683,262 (49,373 ) 1,633,889 Provision for credit losses 854,180 124,424 978,604 (41,439 ) 937,165 Net interest income after provision for credit losses 829,082 (124,424 ) 704,658 (7,934 ) 696,724 Consumer fees 119,902 — 119,902 2,627 122,529 Lease income 486,510 (124,918 ) 361,592 3,042 364,634 Miscellaneous income 138,071 — 138,071 2,283 140,354 Total fees and other income 837,954 (124,918 ) 713,036 7,952 720,988 Total non-interest income 835,961 (124,918 ) 711,043 7,952 718,995 Compensation and benefits 365,071 — 365,071 (21,016 ) 344,055 Occupancy and equipment expenses 128,990 — 128,990 (122 ) 128,868 Loan expense 89,944 — 89,944 (4,226 ) 85,718 Lease expense 384,276 (124,918 ) 259,358 2,310 261,668 Other administrative expenses 93,190 — 93,190 (5,040 ) 88,150 Total general and administrative expenses 1,211,424 (124,918 ) 1,086,506 (28,094 ) 1,058,412 Income/(loss) before income taxes 423,888 (124,424 ) 299,464 28,112 327,576 Income tax provision/(benefit) 241,764 (51,174 ) 190,590 10,779 201,369 Net income/(loss) including noncontrolling interest 182,124 (73,250 ) 108,874 17,333 126,207 Less: net income/(loss) attributable to noncontrolling interest 100,237 (31,346 ) 68,891 6,492 75,383 Net income/(loss) attributable to SHUSA $ 81,887 $ (41,904 ) $ 39,983 $ 10,841 $ 50,824 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the nine-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Loans $ 4,948,106 $ — $ 4,948,106 $ (38,603 ) $ 4,909,503 Available-for-sale 183,158 — 183,158 (834 ) 182,324 Total interest income 5,164,025 — 5,164,025 (39,437 ) 5,124,588 Net interest income 4,387,615 — 4,387,615 (39,437 ) 4,348,178 Provision for credit losses 2,034,721 (343,620 ) 1,691,101 (57,212 ) 1,633,889 Net interest income after provision for credit losses 2,352,894 343,620 2,696,514 17,775 2,714,289 Consumer fees 273,128 — 273,128 2,924 276,052 Equity method investments income/(loss), net 7,607 — 7,607 476 8,083 Lease income 651,458 (126,444 ) 525,014 (8,296 ) 516,718 Miscellaneous income 469,295 — 469,295 2,354 471,649 Total fees and other income 1,703,353 (126,444 ) 1,576,909 (2,542 ) 1,574,367 Gain on Change in Control 2,428,539 — 2,428,539 (10,976 ) 2,417,563 Net gain/(loss) recognized in earnings 2,440,019 — 2,440,019 (10,976 ) 2,429,043 Total non-interest income 4,143,372 (126,444 ) 4,016,928 (13,518 ) 4,003,410 Compensation and benefits 894,051 — 894,051 (1,371 ) 892,680 Lease expense 508,038 (126,444 ) 381,594 3,966 385,560 Other administrative expenses 240,764 — 240,764 (17,138 ) 223,626 Total general and administrative expenses 2,530,262 (126,444 ) 2,403,818 (14,543 ) 2,389,275 Impairment of capitalized software 97,546 — 97,546 (33,000 ) 64,546 Total other expenses 204,099 — 204,099 (33,000 ) 171,099 Income/(loss) before income taxes 3,761,905 343,620 4,105,525 51,800 4,157,325 Income tax provision/(benefit) 1,285,855 138,833 1,424,688 77,687 1,502,375 Net income/(loss) including noncontrolling interest 2,476,050 204,787 2,680,837 (25,887 ) 2,654,950 Less: net income/(loss) attributable to noncontrolling interest 298,633 84,542 383,175 291 383,466 Net income/(loss) attributable to SHUSA $ 2,177,417 $ 120,245 $ 2,297,662 $ (26,178 ) $ 2,271,484 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Operations for the three-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Loans $ 1,822,275 $ — $ 1,822,275 $ (9,252 ) $ 1,813,023 Available-for-sale 61,290 — 61,290 (221 ) 61,069 Total interest income 1,895,020 — 1,895,020 (9,473 ) 1,885,547 Net interest income 1,625,476 — 1,625,476 (9,473 ) 1,616,003 Provision for credit losses 1,013,357 (208,119 ) 805,238 (58,575 ) 746,663 Net interest income after provision for credit losses 612,119 208,119 820,238 49,102 869,340 Consumer fees 93,451 — 93,451 (268 ) 93,183 Equity method investments (loss)/income, net (4,619 ) — (4,619 ) 222 (4,397 ) Lease income 269,966 (38,183 ) 231,783 515 232,298 Miscellaneous income 129,433 — 129,433 (2,366 ) 127,067 Total fees and other income 643,695 (38,184 ) 605,511 (1,896 ) 603,615 Total non-interest income 643,826 (38,184 ) 605,642 (1,896 ) 603,746 Compensation and benefits 290,665 — 290,665 (544 ) 290,121 Loan expense 80,392 — 80,392 576 80,968 Lease expense 208,879 (38,183 ) 170,696 8,117 178,813 Other administrative expenses 111,576 — 111,576 (21,120 ) 90,456 Total general and administrative expenses 919,743 (38,183 ) 881,560 (12,971 ) 868,589 Deposit insurance premiums and other costs 14,967 — 14,967 (9 ) 14,958 Total other expenses 41,008 — 41,008 (9 ) 40,999 Income/(loss) before income taxes 295,194 208,118 503,312 60,186 563,498 Income tax provision/(benefit) 36,102 84,192 120,294 88,009 208,303 Net income/(loss) including noncontrolling interest 259,092 123,926 383,018 (27,823 ) 355,195 Less: net income/(loss) attributable to noncontrolling interest 54,420 51,166 105,586 5,733 111,319 Net income/(loss) attributable to SHUSA $ 204,672 $ 72,760 $ 277,432 $ (33,556 ) $ 243,876 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the t hree-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 703,141 $ (163,085 ) $ 540,056 $ (8,812 ) $ 531,244 Comprehensive income 730,678 (163,085 ) 567,593 (8,812 ) 558,781 Comprehensive income attributable to noncontrolling interest 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Comprehensive income attributable to SHUSA $ 435,456 $ (94,602 ) $ 340,854 $ (4,053 ) $ 336,801 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the nine-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 2,476,050 $ 204,787 $ 2,680,837 $ (25,887 ) $ 2,654,950 Comprehensive income 2,612,470 204,787 2,817,257 (25,887 ) 2,791,370 Comprehensive income attributable to noncontrolling interest 298,633 84,542 383,175 291 383,466 Comprehensive income attributable to SHUSA $ 2,313,837 $ 120,245 $ 2,434,082 $ (26,178 ) $ 2,407,904 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the three-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 182,124 $ (73,250 ) $ 108,874 $ 17,333 $ 126,207 Comprehensive income 238,753 (73,250 ) 165,503 17,333 182,836 Comprehensive income attributable to noncontrolling interest 100,237 (31,346 ) 68,891 6,492 75,383 Comprehensive income attributable to SHUSA $ 138,516 $ (41,904 ) $ 96,612 $ 10,841 $ 107,453 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Comprehensive Income for the three-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 259,092 $ 123,926 $ 383,018 $ (27,823 ) $ 355,195 Comprehensive income 259,048 123,926 382,974 (27,823 ) 355,151 Comprehensive income attributable to noncontrolling interest 54,420 51,166 105,586 5,733 111,319 Comprehensive income attributable to SHUSA $ 204,628 $ 72,760 $ 277,388 $ (33,556 ) $ 243,832 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the t hree-month period September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Stockholder's Equity for the nine-month period ended September 30, 2015 : Common Stock and Paid-in Capital As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Impact of SCUSA Stock Option Activity $ (13,946 ) $ — $ (13,946 ) $ 11,942 $ (2,004 ) Balance, End of period $ 14,717,564 $ — $ 14,717,564 $ 11,942 $ 14,729,506 Retained Earnings As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 3,714,642 $ 122,480 $ 3,837,122 $ 9,295 $ 3,846,417 Comprehensive income attributable to SHUSA 407,919 (94,602 ) 313,317 (4,053 ) 309,264 Balance, End of period $ 4,111,611 $ 27,878 $ 4,139,489 $ 5,242 $ 4,144,731 Non-Controlling Interest As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 3,960,809 $ 86,113 $ 4,046,922 $ 5,473 $ 4,052,395 Comprehensive income attributable to NCI 295,222 $ (68,483 ) 226,739 $ (4,759 ) 221,980 Impact of SCUSA Stock Option Activity 24,957 $ — 24,957 $ 45,071 70,028 Balance, End of period $ 4,280,988 $ 17,630 $ 4,298,618 $ 45,785 $ 4,344,403 Total Stockholder's Equity As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 22,504,095 $ 208,593 $ 22,712,688 $ 14,768 $ 22,727,456 Comprehensive income attributable to SHUSA 435,456 (94,602 ) 340,854 (4,053 ) 336,801 Comprehensive income attributable to NCI 295,222 (68,483 ) 226,739 (4,759 ) 221,980 Impact of SCUSA Stock Option Activity 11,011 — 11,011 57,013 68,024 Balance, End of period $ 23,236,735 $ 45,508 $ 23,282,243 $ 62,969 $ 23,345,212 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Condensed Consolidated Statement of Stockholder's Equity for the nine-month period ended September 30, 2014 : Retained Earnings As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 1,394,090 $ — $ 1,394,090 $ 32,115 $ 1,426,205 Comprehensive income attributable to SHUSA 2,177,417 120,245 2,297,662 (26,178 ) 2,271,484 Balance, End of period $ 3,560,557 $ 120,245 $ 3,680,802 $ 5,937 $ 3,686,739 Non-Controlling Interest As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Comprehensive income attributable to NCI $ — $ 383,175 $ 383,175 $ 291 $ 383,466 SCUSA Change in Control 3,872,370 (402,935 ) 3,469,435 14,010 3,483,445 Dividends paid to NCI — — — (20,667 ) (20,667 ) Impact of SCUSA Stock Option Activity — 104,301 104,301 6,657 110,958 Balance, End of period $ 3,872,370 $ 84,541 $ 3,956,911 $ 291 $ 3,957,202 Total Stockholder's Equity As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Balance, Beginning of period $ 13,544,983 $ — $ 13,544,983 $ 32,115 $ 13,577,098 Comprehensive income attributable to SHUSA 2,313,837 120,245 2,434,082 (26,178 ) 2,407,904 Comprehensive income attributable to NCI — 383,175 383,175 291 383,466 SC Change in Control 3,872,370 (402,935 ) 3,469,435 14,010 3,483,445 Impact of SCUSA Stock Option Activity — 104,301 104,301 6,657 110,958 Dividends paid to NCI — — — (20,667 ) (20,667 ) Balance, End of period $ 22,240,033 $ 204,786 $ 22,444,819 $ 6,228 $ 22,451,047 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended September 30, 2014 filed on November 17, 2014. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Cash Flows for the nine-month period ended September 30, 2015 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 703,141 $ (163,085 ) $ 540,056 $ (8,812 ) $ 531,244 Provision for credit losses 2,728,118 285,112 3,013,230 (57,175 ) 2,956,055 Deferred tax expense 224,417 (122,027 ) 102,390 (46,669 ) 55,721 Depreciation, amortization and accretion 116,205 — 116,205 133,168 249,373 Net gain on sale of loans (102,909 ) — (102,909 ) (24,517 ) (127,426 ) Stock-based compensation 23,156 — 23,156 (3,626 ) 19,530 Net change in other assets and bank-owned life insurance 355,987 — 355,987 (85,556 ) 270,431 Net change in other liabilities 180,929 — 180,929 72,338 253,267 Net cash provided by operating activities 3,728,327 — 3,728,327 (20,849 ) 3,707,478 Proceeds from the sale of leased vehicles 1,750,928 — 1,750,928 7,603 1,758,531 Manufacturer incentives 993,991 — 993,991 (2,665 ) 991,326 Net cash used in investing activities (14,389,842 ) — (14,389,842 ) 4,938 (14,384,904 ) Net change in advance payments by borrowers for taxes and insurance 42,615 — 42,615 (238 ) 42,377 Proceeds from the issuance of common stock 87,713 — 87,713 (500 ) 87,213 Net cash provided by financing activities 13,096,163 — 13,096,163 (738 ) 13,095,425 Net increase in cash and cash equivalents 2,434,648 — 2,434,648 (16,649 ) 2,417,999 Cash and cash equivalents, beginning of period 2,234,725 — 2,234,725 (32,942 ) 2,201,783 Cash and cash equivalents, end of period $ 4,669,373 $ — $ 4,669,373 $ (49,591 ) $ 4,619,782 (1) Originally reported amounts as included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Statement of Cash Flows for the nine-month period ended September 30, 2014 : As Originally Reported (1) Corrections As Reported (2) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 2,476,050 $ 204,787 $ 2,680,837 $ (25,887 ) $ 2,654,950 Gain on SCUSA Change in Control (2,291,003 ) — (2,291,003 ) 10,976 (2,280,027 ) Impairment of capitalized software — — — 64,546 64,546 Provision for credit losses 2,034,721 (343,620 ) 1,691,101 (57,212 ) 1,633,889 Deferred tax expense 890,534 138,833 1,029,367 147,375 1,176,742 Depreciation, amortization and accretion (291,638 ) — (291,638 ) 111,710 (179,928 ) Net gain on sale of loans (190,338 ) — (190,338 ) 54,827 (135,511 ) Equity earnings on equity method investments (7,607 ) — (7,607 ) (476 ) (8,083 ) Proceeds from sales of loans held-for-sale 3,996,244 — 3,996,244 (54,877 ) 3,941,367 Net change in other assets and bank-owned life insurance 238,384 — 238,384 20,331 258,715 Net change in other liabilities 379,165 — 379,165 (231,145 ) 148,020 Net cash provided by operating activities 3,332,291 — 3,332,291 40,218 3,372,509 Purchases of leased vehicles (4,579,833 ) — (4,579,833 ) (262,577 ) (4,842,410 ) Proceeds from the sale of leased vehicles 410,529 — 410,529 (585 ) 409,944 Manufacturer incentives 564,376 — 564,376 203,928 768,304 Net cash used in investing activities (10,628,505 ) — (10,628,505 ) (59,234 ) (10,687,739 ) Net change in short-term borrowings 66,680 — 66,680 15,359 82,039 Net proceeds from long-term borrowings 29,068,188 — 29,068,188 (7,345 ) 29,060,843 Repayments of FHLB advances (with maturities greater than 90 days) (913,635 ) — (913,635 ) (8,311 ) (921,946 ) Net cash provided by financing activities 5,120,496 — 5,120,496 (298 ) 5,120,198 Net decrease in cash and cash equivalents (2,175,718 ) — (2,175,718 ) (19,314 ) (2,195,032 ) Cash and cash equivalents, end of period $ 2,051,229 $ — $ 2,051,229 $ (19,314 ) $ 2,031,915 (1) Originally reported amounts as included in the Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2015 filed on November 13, 2015. (2) Reported amounts included in Part II, Item 9B of the Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016. |
BASIS OF PRESENTATION AND ACC41
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jan. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Jul. 02, 2015 | Dec. 31, 2014 |
Basis of Presentation and Accounting Policies [Line Items] | |||||
Debt issuance costs resulting from adoption of ASU | $ 59 | $ 30.3 | |||
SCUSA | |||||
Basis of Presentation and Accounting Policies [Line Items] | |||||
Ownership percentage before stock transaction | 65.00% | ||||
Number of shares issued | 13,895,243 | ||||
Ownership percentage after sale of stock | 61.00% | ||||
SCUSA | DDFS LLC | |||||
Basis of Presentation and Accounting Policies [Line Items] | |||||
Common stock held by DDFS, ownership percentage | 9.80% | ||||
Call Transaction, basis spread (as a percent) | 1.00% | ||||
SCUSA and Sponsor Holdings | IPO | |||||
Basis of Presentation and Accounting Policies [Line Items] | |||||
Number of shares issued | 85,242,042 |
BUSINESS COMBINATIONS (As Res42
BUSINESS COMBINATIONS (As Restated) (Consolidated Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jan. 28, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Goodwill | $ 5,530,000 | $ 8,951,484 | $ 8,951,484 |
SCUSA | |||
Business Acquisition [Line Items] | |||
Fair value of noncontrolling interest in SCUSA | 3,273,265 | ||
Fair value of SCUSA employee vested stock options | 210,181 | ||
Fair value of SHUSA remaining ownership interest in SCUSA | 5,063,881 | ||
Fair value of equity-related interests in SCUSA | 8,547,327 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 11,075 | ||
Restricted cash | 1,704,906 | ||
Loan receivables - held for sale | 990,137 | ||
Loan receivables - retail installment contracts | 19,870,790 | ||
Loan receivables from dealers | 102,689 | ||
Loan receivables - unsecured | 1,009,896 | ||
Premises and equipment | 74,998 | ||
Leased vehicles, net | 2,486,929 | ||
Intangibles | 768,750 | ||
Miscellaneous receivables and other assets | 1,061,351 | ||
Deferred tax asset | 7,210 | ||
Borrowings and other debt obligations | (24,497,607) | ||
Accounts payable and accrued liabilities | (570,852) | ||
Total identifiable net assets | 3,020,272 | ||
Goodwill | 5,527,055 | ||
Stock options awards outstanding, fair value | 369,300 | ||
Stock compensation expense immediately recognized | 82,600 | ||
SCUSA | Executives | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Stock options awards outstanding, fair value | 12,000 | ||
SCUSA | Stock Compensation Expense | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Stock options awards outstanding, fair value | $ 159,100 |
BUSINESS COMBINATIONS (As Res43
BUSINESS COMBINATIONS (As Restated) (Fair Value of Loans Acquired) (Details) - SCUSA $ in Thousands | Jan. 28, 2014USD ($) |
Business Acquisition [Line Items] | |
Fair value of loan receivables | $ 19,870,790 |
Gross contractual amount of loan receivables | 31,410,699 |
Estimate of contractual cash flows not expected to be collected at acquisition | 4,301,586 |
UPB | 20,343,356 |
UPB - FVO | 2,611,446 |
Total UPB | 22,954,802 |
Purchase Marks | (3,084,012) |
Purchase Marks, FVO | $ 741,100 |
BUSINESS COMBINATIONS (As Res44
BUSINESS COMBINATIONS (As Restated) (Finite-Lived and Indefinite-Lived Intangible Assets Acquired) (Details) - SCUSA $ in Thousands | Jan. 28, 2014USD ($) |
Business Acquisition [Line Items] | |
Total Intangibles | $ 768,750 |
Trade name | |
Business Acquisition [Line Items] | |
Intangibles not subject to amortization | 50,000 |
Dealer networks | |
Business Acquisition [Line Items] | |
Intangibles subject to amortization | $ 580,000 |
Weighted Average Amortization Period | 17 years 6 months |
Dealer networks | Minimum | |
Business Acquisition [Line Items] | |
Weighted Average Amortization Period | 7 years |
Dealer networks | Maximum | |
Business Acquisition [Line Items] | |
Weighted Average Amortization Period | 20 years |
Chrysler relationship | |
Business Acquisition [Line Items] | |
Intangibles subject to amortization | $ 138,750 |
Weighted Average Amortization Period | 9 years 2 months 12 days |
BUSINESS COMBINATIONS (As Res45
BUSINESS COMBINATIONS (As Restated) (Gain in Change in Control) (Details) - USD ($) $ in Thousands | Jan. 28, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||
Gain attributable to the remaining equity interest | $ 0 | $ 2,280,027 | |
SCUSA | |||
Business Acquisition [Line Items] | |||
Gain attributable to SCUSA shares sold | $ 137,536 | ||
Gain attributable to the remaining equity interest | 2,280,027 | ||
Total pre-tax gain | $ 2,417,563 | ||
Number of shares issued | 13,895,243 | ||
Proceeds from sale of SCUSA common stock | $ 320,100 |
BUSINESS COMBINATIONS (As Res46
BUSINESS COMBINATIONS (As Restated) (Pro Forma Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
SCUSA Amounts Included in Results for the | ||||
Total Revenue, Net of Total Interest Expense | $ 1,633,889 | $ 1,616,003 | $ 4,983,725 | $ 4,348,178 |
SCUSA | ||||
SCUSA Amounts Included in Results for the | ||||
Total Revenue, Net of Total Interest Expense | 1,534,644 | 4,112,641 | ||
Net Income including Noncontrolling Interest | 280,138 | 925,556 | ||
Supplemental Pro Forma Combined | ||||
Total Revenue, Net of Total Interest Expense | 2,232,312 | 6,239,871 | ||
Net Income including Noncontrolling Interest | $ 289,417 | $ 655,055 |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | $ 21,028,749 | $ 21,028,749 | $ 15,992,659 | |||
Gross Unrealized Gains | 145,680 | 145,680 | 100,798 | |||
Gross Unrealized Loss | (123,245) | (123,245) | (185,379) | |||
Fair Value | 21,051,184 | 21,051,184 | 15,908,078 | |||
Proceeds from the sales of available-for-sale securities | 497,182 | $ 21,138 | 2,751,790 | $ 311,019 | ||
FHLMC | Mortgage banking income | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Gain on sale of mortgage-backed debt securities | $ 9,800 | |||||
US Treasury securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 3,191,564 | 3,191,564 | 1,692,838 | |||
Gross Unrealized Gains | 18,299 | 18,299 | 2,985 | |||
Gross Unrealized Loss | 0 | 0 | (56) | |||
Fair Value | 3,209,863 | 3,209,863 | 1,695,767 | |||
Corporate debt securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 1,554,216 | 1,554,216 | 2,159,681 | |||
Gross Unrealized Gains | 17,224 | 17,224 | 29,630 | |||
Gross Unrealized Loss | (8,341) | (8,341) | (6,910) | |||
Fair Value | 1,563,099 | 1,563,099 | 2,182,401 | |||
Asset-backed securities (ABS) | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 1,938,581 | 1,938,581 | 2,707,207 | |||
Gross Unrealized Gains | 7,111 | 7,111 | 17,787 | |||
Gross Unrealized Loss | (1,041) | (1,041) | (4,591) | |||
Fair Value | 1,944,651 | 1,944,651 | 2,720,403 | |||
Equity securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 10,826 | 10,826 | 10,619 | |||
Gross Unrealized Gains | 3 | 3 | 3 | |||
Gross Unrealized Loss | (301) | (301) | (279) | |||
Fair Value | 10,528 | 10,528 | 10,343 | |||
State and municipal securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 750,946 | 750,946 | 1,790,776 | |||
Gross Unrealized Gains | 12,524 | 12,524 | 35,071 | |||
Gross Unrealized Loss | (2,148) | (2,148) | (2,385) | |||
Fair Value | 761,322 | 761,322 | 1,823,462 | |||
U.S. government agencies - Residential | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 4,077,361 | 4,077,361 | 2,151,111 | |||
Gross Unrealized Gains | 31,836 | 31,836 | 1,626 | |||
Gross Unrealized Loss | (16,724) | (16,724) | (33,811) | |||
Fair Value | 4,092,473 | 4,092,473 | 2,118,926 | |||
U.S. government agencies - Commercial | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 986,989 | 986,989 | 472,611 | |||
Gross Unrealized Gains | 10,283 | 10,283 | 183 | |||
Gross Unrealized Loss | (5,109) | (5,109) | (7,186) | |||
Fair Value | 992,163 | 992,163 | 465,608 | |||
FHLMC and FNMA - Residential debt securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 8,379,831 | 8,379,831 | 4,971,045 | |||
Gross Unrealized Gains | 46,998 | 46,998 | 12,817 | |||
Gross Unrealized Loss | (89,154) | (89,154) | (129,990) | |||
Fair Value | 8,337,675 | 8,337,675 | 4,853,872 | |||
FHLMC and FNMA - Residential debt securities | FHLMC | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
MBS issued by the FHLMC | 243,900 | |||||
FHLMC and FNMA - Commercial debt securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 138,383 | 138,383 | 23,929 | |||
Gross Unrealized Gains | 1,402 | 1,402 | 157 | |||
Gross Unrealized Loss | (427) | (427) | (171) | |||
Fair Value | 139,358 | 139,358 | 23,915 | |||
Non-agency securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 52 | 52 | 12,842 | |||
Gross Unrealized Gains | 0 | 0 | 539 | |||
Gross Unrealized Loss | 0 | 0 | 0 | |||
Fair Value | $ 52 | $ 52 | $ 13,381 | |||
Residential mortgages | FHLMC | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Proceeds from the sales of available-for-sale securities | $ 234,500 |
INVESTMENT SECURITIES (Securiti
INVESTMENT SECURITIES (Securities Pledged as Collateral) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 4,100 | $ 3,500 |
Public fund deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | 3,500 | 2,600 |
Repurchase agreements, hedging activities and recourse on loan sales | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | 122.6 | 301.6 |
Overnight customer deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 450.6 | $ 560.6 |
INVESTMENT SECURITIES (Concentr
INVESTMENT SECURITIES (Concentration Risk) (Details) - Geographic concentration risk - Total available-for-sale securities | 9 Months Ended |
Sep. 30, 2015 | |
Washington | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 21.40% |
Massachusetts | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 14.50% |
Connecticut | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.20% |
Other states | Maximum | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
INVESTMENT SECURITIES (Contract
INVESTMENT SECURITIES (Contractual Maturity of Debt Securities) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Amortized Cost | |
Due within one year | $ 676,336 |
Due after 1 year but within 5 years | 5,847,161 |
Due after 5 years but within 10 years | 361,297 |
Due after 10 years | 14,133,129 |
Total | 21,017,923 |
Fair Value | |
Due within one year | 674,564 |
Due after 1 year but within 5 years | 5,883,134 |
Due after 5 years but within 10 years | 363,618 |
Due after 10 years | 14,119,340 |
Total | $ 21,040,656 |
INVESTMENT SECURITIES (Gross Un
INVESTMENT SECURITIES (Gross Unrealized Loss and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than 12 months | $ 2,726,258 | $ 2,622,575 |
12 months or longer | 3,507,119 | 4,934,027 |
Total | 6,233,377 | 7,556,602 |
Unrealized Losses | ||
Less than 12 months | (16,480) | (12,187) |
12 months or longer | (106,765) | (173,192) |
Total | (123,245) | (185,379) |
US Treasury securities | ||
Fair Value | ||
Less than 12 months | 298,914 | |
12 months or longer | 0 | |
Total | 298,914 | |
Unrealized Losses | ||
Less than 12 months | (56) | |
12 months or longer | 0 | |
Total | 0 | (56) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 500,998 | 538,108 |
12 months or longer | 136,932 | 214,852 |
Total | 637,930 | 752,960 |
Unrealized Losses | ||
Less than 12 months | (6,427) | (3,262) |
12 months or longer | (1,914) | (3,648) |
Total | (8,341) | (6,910) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 143,150 | 632,936 |
12 months or longer | 0 | 424,333 |
Total | 143,150 | 1,057,269 |
Unrealized Losses | ||
Less than 12 months | (1,041) | (1,437) |
12 months or longer | 0 | (3,154) |
Total | (1,041) | (4,591) |
Equity securities | ||
Fair Value | ||
Less than 12 months | 376 | 55 |
12 months or longer | 9,850 | 9,879 |
Total | 10,226 | 9,934 |
Unrealized Losses | ||
Less than 12 months | (2) | 0 |
12 months or longer | (299) | (279) |
Total | (301) | (279) |
State and municipal securities | ||
Fair Value | ||
Less than 12 months | 203,170 | 45,128 |
12 months or longer | 25,430 | 192,091 |
Total | 228,600 | 237,219 |
Unrealized Losses | ||
Less than 12 months | (1,217) | (90) |
12 months or longer | (931) | (2,295) |
Total | (2,148) | (2,385) |
U.S. government agencies - Residential | ||
Fair Value | ||
Less than 12 months | 400,513 | 415,731 |
12 months or longer | 972,042 | 1,348,908 |
Total | 1,372,555 | 1,764,639 |
Unrealized Losses | ||
Less than 12 months | (735) | (2,693) |
12 months or longer | (15,989) | (31,118) |
Total | (16,724) | (33,811) |
U.S. government agencies - Commercial | ||
Fair Value | ||
Less than 12 months | 216,806 | 281,258 |
12 months or longer | 116,893 | 136,269 |
Total | 333,699 | 417,527 |
Unrealized Losses | ||
Less than 12 months | (2,551) | (2,459) |
12 months or longer | (2,558) | (4,727) |
Total | (5,109) | (7,186) |
FHLMC and FNMA - Residential | ||
Fair Value | ||
Less than 12 months | 1,219,050 | 399,176 |
12 months or longer | 2,245,972 | 2,607,695 |
Total | 3,465,022 | 3,006,871 |
Unrealized Losses | ||
Less than 12 months | (4,080) | (2,019) |
12 months or longer | (85,074) | (127,971) |
Total | (89,154) | (129,990) |
FHLMC and FNMA - Commercial | ||
Fair Value | ||
Less than 12 months | 42,195 | 11,269 |
12 months or longer | 0 | 0 |
Total | 42,195 | 11,269 |
Unrealized Losses | ||
Less than 12 months | (427) | (171) |
12 months or longer | 0 | 0 |
Total | $ (427) | $ (171) |
INVESTMENT SECURITIES (Other-Th
INVESTMENT SECURITIES (Other-Than-Temporary Impairment) (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)security | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($)security | Sep. 30, 2015USD ($)security | Sep. 30, 2014USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||||
OTTI | $ 0 | $ 0 | $ 0 | $ 1,100,000 | $ 1,092,000 | $ 0 |
Number of securities in unrealized loss position, not yet sold | security | 9 | |||||
Book value of securities in unrealized loss position, not yet sold | $ 377,000,000 | |||||
Loss on securities sold | $ 1,000,000 | |||||
Number of securities in unrealized loss position | security | 277 | 277 |
INVESTMENT SECURITIES (Gains (L
INVESTMENT SECURITIES (Gains (Losses) and Proceeds on Sale of Securities) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||||||
Proceeds from the sales of available-for-sale securities | $ 497,182,000 | $ 21,138,000 | $ 2,751,790,000 | $ 311,019,000 | ||
Gross realized gains | 533,000 | 131,000 | 23,592,000 | 11,547,000 | ||
Gross realized losses | (2,526,000) | 0 | (5,229,000) | (67,000) | ||
OTTI | 0 | $ 0 | 0 | $ (1,100,000) | (1,092,000) | 0 |
Net realized (losses)/gains | (1,993,000) | 131,000 | 17,271,000 | 11,480,000 | ||
Corporate debt securities | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||||||
Investment securities sold during the period | 63,700,000 | 88,400,000 | 517,600,000 | 434,800,000 | ||
Realized investment gain (loss) | 400,000 | $ 100,000 | 7,000,000 | 4,700,000 | ||
Asset-backed securities | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||||||
Investment securities sold during the period | 419,600,000 | 683,900,000 | ||||
Realized investment gain (loss) | $ (1,400,000) | (200,000) | ||||
State and municipal securities | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||||||
Investment securities sold during the period | 421,500,000 | 89,000,000 | ||||
Realized investment gain (loss) | $ 12,100,000 | 5,200,000 | ||||
Mortgage backed securities | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||||||
Investment securities sold during the period | 21,600,000 | |||||
Realized investment gain (loss) | $ 1,300,000 |
INVESTMENT SECURITIES (Trading
INVESTMENT SECURITIES (Trading Securities) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Trading securities at fair value | $ 0 | $ 0 | $ 833,936,000 | ||
Trading securities pledged as collateral | 0 | $ 33,000,000 | 0 | $ 33,000,000 | |
Mortgage banking income | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Net gains recognized during the period on trading securities | 0 | 1,899,000 | 6,391,000 | 3,386,000 | |
Less: Net gains recognized during the period on trading securities sold during the period | 0 | 2,047,000 | 6,391,000 | 3,782,000 | |
Unrealized losses during the reporting period on trading securities still held at the reporting date | $ 0 | $ (148,000) | $ 0 | $ (396,000) |
INVESTMENT SECURITIES (Other In
INVESTMENT SECURITIES (Other Investments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Accrued investment income receivable | $ 64,500,000 | $ 64,500,000 | $ 67,300,000 |
Other investments | 999,232,000 | 999,232,000 | 816,991,000 |
Stock of FHLB of Pittsburgh and the Federal Reserve Bank | $ 975,600,000 | $ 975,600,000 | $ 817,000,000 |
FHLB Stock, par value (in usd per share) | $ 100 | $ 100 | |
Purchases of FHLB stock | $ 208,000,000 | $ 447,900,000 | |
FHLB stock redeemed | 105,400,000 | 344,600,000 | |
Purchases of FRB stock at par | 0 | 3,700,000 | |
Low income housing tax credit investment | $ 23,600,000 | $ 23,600,000 |
LOANS AND ALLOWANCE FOR CREDI56
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($)business_line | Dec. 31, 2014USD ($) | ||
Loans Receivable [Line Items] | ||||
Loans pledged as collateral | $ 58,600,000 | $ 58,600,000 | $ 51,700,000 | |
Loans held-for-sale | [1] | 2,990,708 | 2,990,708 | 260,252 |
Accrued interest receivable | [2] | 586,350 | 586,350 | 559,962 |
Troubled debt restructurings | 3,950,830 | $ 3,950,830 | 2,385,175 | |
TDRs, number of days past due after modification considered to have subsequently defaulted | 90 days | |||
Performing | ||||
Loans Receivable [Line Items] | ||||
Interest income | $ 187,900 | 115,500 | ||
Troubled debt restructurings | 3,428,202 | 3,428,202 | 2,041,653 | |
Loans receivable | ||||
Loans Receivable [Line Items] | ||||
Accrued interest receivable | 521,900 | 521,900 | $ 492,700 | |
Multi-family loans | FNMA | ||||
Loans Receivable [Line Items] | ||||
Performing multi-family loans purchased from FNMA | 1,400,000 | $ 1,400,000 | ||
Commercial real estate loans | Commercial | ||||
Loans Receivable [Line Items] | ||||
Number of business lines | business_line | 3 | |||
Personal unsecured loans | ||||
Loans Receivable [Line Items] | ||||
Transfer of loans to held-for-sale | $ 1,900,000 | |||
Retail installment contracts | ||||
Loans Receivable [Line Items] | ||||
TDRs, number of days past due after modification considered to have subsequently defaulted | 120 days | |||
[1] | Recorded at the fair value option ("FVO") or lower of cost or fair value. | |||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI57
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Loan and Lease Portfolio Composition) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Loans Receivable [Line Items] | |||
Total commercial loans | $ 39,825,473 | $ 36,641,277 | |
Total loans held for investment | [1],[2] | 78,583,198 | 75,995,467 |
Loans held for investment with fixed rate of interest | 46,704,335 | 45,109,343 | |
Loans held for investment with variable rate of interest | $ 31,878,863 | $ 30,886,124 | |
Loans held for investment, percent of total loans | 100.00% | 100.00% | |
Loans held for investment with fixed rate of interest, percent of total loans | 59.40% | 59.40% | |
Loans held for investment with variable rate of interest, percent of total loans | 40.60% | 40.60% | |
Net decrease in loan balances | $ 269,900 | $ 1,500,000 | |
Commercial | |||
Loans Receivable [Line Items] | |||
Total commercial loans | $ 39,825,473 | $ 36,622,183 | |
Loans held for investment, percent of total loans | 50.60% | 48.20% | |
Commercial | Commercial real estate loans | |||
Loans Receivable [Line Items] | |||
Total commercial loans | $ 8,495,182 | $ 8,739,233 | |
Loans held for investment, percent of total loans | 10.80% | 11.50% | |
Commercial | Commercial and industrial loans | |||
Loans Receivable [Line Items] | |||
Total commercial loans | $ 19,363,022 | $ 17,092,828 | |
Loans held for investment, percent of total loans | 24.60% | 22.50% | |
Commercial | Multi-family loans | |||
Loans Receivable [Line Items] | |||
Total commercial loans | $ 9,600,527 | $ 8,705,890 | |
Loans held for investment, percent of total loans | 12.20% | 11.50% | |
Commercial | Other commercial | |||
Loans Receivable [Line Items] | |||
Total commercial loans | $ 2,366,742 | $ 2,084,232 | |
Loans held for investment, percent of total loans | 3.00% | 2.70% | |
Consumer | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 38,757,725 | $ 39,373,284 | |
Loans held for investment, percent of total loans | 49.40% | 51.80% | |
Consumer loans secured by real estate | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 12,567,700 | $ 12,984,873 | |
Loans held for investment, percent of total loans | 16.00% | 17.10% | |
Consumer loans secured by real estate | Residential mortgages | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 6,408,164 | $ 6,773,575 | |
Loans held for investment, percent of total loans | 8.20% | 8.90% | |
Consumer loans secured by real estate | Home equity loans and lines of credit | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 6,159,536 | $ 6,211,298 | |
Loans held for investment, percent of total loans | 7.80% | 8.20% | |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, originated | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 17,573,943 | $ 9,935,503 | |
Loans held for investment, percent of total loans | 22.40% | 13.10% | |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, purchased | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 6,888,523 | $ 12,449,526 | |
Loans held for investment, percent of total loans | 8.80% | 16.40% | |
Consumer loans not secured by real estate | Personal unsecured loans | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 644,548 | $ 2,696,820 | |
Loans held for investment, percent of total loans | 0.80% | 3.50% | |
Consumer loans not secured by real estate | Other consumer | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 1,083,011 | $ 1,306,562 | |
Loans held for investment, percent of total loans | 1.40% | 1.70% | |
[1] | Loans held for investment includes $374.2 million and $845.9 million of loans recorded at fair value at September 30, 2015 and December 31, 2014, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI58
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Portfolio Segments and Classes) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Loans Receivable [Line Items] | ||
Total commercial loans | $ 39,825,473,000 | $ 36,641,277,000 |
Corporate Banking | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 2,967,780,000 | 3,218,150,000 |
Middle Markets Real Estate | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 3,965,173,000 | 3,743,099,000 |
Santander Real Estate Capital | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 1,562,229,000 | 1,777,984,000 |
Consumer loans secured by real estate | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 12,567,700,000 | 12,984,873,000 |
Consumer loans secured by real estate | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,408,164,000 | 6,773,575,000 |
Consumer loans secured by real estate | Home equity loans and lines of credit | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,159,536,000 | 6,211,298,000 |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, originated | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 17,573,943,000 | 9,935,503,000 |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, purchased | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,888,523,000 | 12,449,526,000 |
Consumer loans not secured by real estate | Personal unsecured loans | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 644,548,000 | 2,696,820,000 |
Consumer loans not secured by real estate | Other consumer | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 1,083,011,000 | 1,306,562,000 |
Commercial | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 39,825,473,000 | 36,622,183,000 |
Commercial | Commercial real estate | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 8,495,182,000 | 8,739,233,000 |
Commercial | Commercial and industrial loans | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 19,363,022,000 | 17,092,828,000 |
Loans held-for-sale | 0 | 19,100,000 |
Commercial | Multi-family loans | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 9,600,527,000 | 8,705,890,000 |
Commercial | Other commercial | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 2,366,742,000 | 2,084,232,000 |
Commercial | Corporate Banking | Commercial real estate | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 2,967,780,000 | 3,218,150,000 |
Commercial | Middle Markets Real Estate | Commercial real estate | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 3,965,173,000 | 3,743,099,000 |
Commercial | Santander Real Estate Capital | Commercial real estate | ||
Loans Receivable [Line Items] | ||
Total commercial loans | 1,562,229,000 | 1,777,984,000 |
Consumer | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 38,757,725,000 | 39,373,284,000 |
Consumer | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 280,800,000 | 195,700,000 |
Consumer | Retail installment contracts and auto loans | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 825,800,000 | 45,400,000 |
Consumer | Personal unsecured loans | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 1,900,000,000 | 0 |
Consumer | Consumer loans secured by real estate | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 12,567,700,000 | 12,984,873,000 |
Consumer | Consumer loans secured by real estate | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,408,164,000 | 6,773,575,000 |
Consumer | Consumer loans secured by real estate | Home equity loans and lines of credit | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,159,536,000 | 6,211,298,000 |
Consumer | Consumer loans not secured by real estate | Retail installment contracts and auto loans, originated | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 9,935,503,000 | |
Consumer | Consumer loans not secured by real estate | Retail installment contracts and auto loans, purchased | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,888,523,000 | 12,449,526,000 |
Consumer | Consumer loans not secured by real estate | Retail installment contracts and auto loans | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 17,573,943,000 | |
Consumer | Consumer loans not secured by real estate | Personal unsecured loans | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 644,548,000 | 2,696,820,000 |
Consumer | Consumer loans not secured by real estate | Other consumer | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | $ 1,083,011,000 | $ 1,306,562,000 |
LOANS AND ALLOWANCE FOR CREDI59
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Retail Installment Contracts and Auto Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Loans Receivable [Line Items] | |||
Total loans held for investment | [1],[2] | $ 78,583,198 | $ 75,995,467 |
RICs - Purchased | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
UPB | 7,577,731 | 13,366,188 | |
UPB - FVO | 195,909 | 716,923 | |
Total UPB | 7,773,640 | 14,083,111 | |
Purchase Marks | (885,117) | (1,633,585) | |
Total loans held for investment | 6,888,523 | 12,449,526 | |
Purchase Marks, FVO | 42,300 | 130,200 | |
RICs - Originated | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total UPB | 18,110,589 | 10,273,931 | |
Total loans held for investment | 17,554,637 | 9,906,562 | |
Net discount | (555,952) | (367,369) | |
Auto loan | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | 19,306 | 28,941 | |
Total RICs originated post-change in control | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | 17,573,943 | 9,935,503 | |
Retail installment contracts and auto loans | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | $ 24,462,466 | $ 22,385,029 | |
[1] | Loans held for investment includes $374.2 million and $845.9 million of loans recorded at fair value at September 30, 2015 and December 31, 2014, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI60
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | $ 2,834,653 | $ 1,297,655 | $ 1,701,602 | $ 834,337 | |
Provision for/ (Recovery of) loan losses | 937,165 | 766,663 | 2,951,055 | 1,698,889 | |
Other | (61,220) | (27,117) | (61,220) | ||
Charge-offs | (1,526,112) | (1,001,970) | (3,399,574) | (1,811,074) | |
Recoveries | 521,438 | 417,598 | 1,541,178 | 757,794 | |
Charge-offs, net of recoveries | (1,004,674) | (584,372) | (1,858,396) | (1,053,280) | |
Allowance for loan losses, end of period | 2,767,144 | 1,418,726 | 2,767,144 | 1,418,726 | |
Reserve for unfunded lending commitments, beginning of period | 137,641 | 170,274 | 132,641 | 220,000 | |
Provision for unfunded lending commitments | 0 | (20,000) | 5,000 | (65,000) | |
Loss on unfunded lending commitments | 0 | (633) | 0 | (5,359) | |
Reserve for unfunded lending commitments, end of period | 137,641 | 149,641 | 137,641 | 149,641 | |
Total allowance for credit losses, end of period | 2,904,785 | 1,568,367 | 2,904,785 | 1,568,367 | |
Ending balance, individually evaluated for impairment | 803,188 | 106,587 | 803,188 | 106,587 | |
Ending balance, collectively evaluated for impairment | 1,963,956 | 1,312,139 | 1,963,956 | 1,312,139 | |
Financing receivables: | |||||
Ending balance | 81,573,906 | 74,777,082 | 81,573,906 | 74,777,082 | |
Ending balance, evaluated under the fair value option or lower of cost or fair value | 3,364,866 | 1,303,570 | 3,364,866 | 1,303,570 | |
Ending balance, individually evaluated for impairment | 4,139,286 | 1,579,005 | 4,139,286 | 1,579,005 | |
Ending balance, collectively evaluated for impairment | 74,069,754 | 71,894,507 | 74,069,754 | 71,894,507 | |
Sale of TDRs and NPLs classified as held-for-sale | 484,000 | ||||
Commercial | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 402,695 | 369,893 | 401,553 | 443,074 | |
Provision for/ (Recovery of) loan losses | 26,337 | 25,317 | 64,491 | (5,095) | |
Other | 0 | 0 | 0 | ||
Charge-offs | (45,467) | (28,686) | (96,652) | (81,163) | |
Recoveries | 25,091 | 8,844 | 39,264 | 18,552 | |
Charge-offs, net of recoveries | (20,376) | (19,842) | (57,388) | (62,611) | |
Allowance for loan losses, end of period | 408,656 | 375,368 | 408,656 | 375,368 | |
Reserve for unfunded lending commitments, beginning of period | 137,641 | 170,274 | 132,641 | 220,000 | |
Provision for unfunded lending commitments | 0 | (20,000) | 5,000 | (65,000) | |
Loss on unfunded lending commitments | 0 | (633) | 0 | (5,359) | |
Reserve for unfunded lending commitments, end of period | 137,641 | 149,641 | 137,641 | 149,641 | |
Total allowance for credit losses, end of period | 546,297 | 525,009 | 546,297 | 525,009 | |
Ending balance, individually evaluated for impairment | 57,517 | 73,074 | 57,517 | 73,074 | |
Ending balance, collectively evaluated for impairment | 351,139 | 302,294 | 351,139 | 302,294 | |
Financing receivables: | |||||
Ending balance | 39,825,473 | 35,683,463 | 39,825,473 | 35,683,463 | |
Ending balance, evaluated under the fair value option or lower of cost or fair value | 0 | 19,167 | 0 | 19,167 | |
Ending balance, individually evaluated for impairment | 367,865 | 503,098 | 367,865 | 503,098 | |
Ending balance, collectively evaluated for impairment | 39,457,608 | 35,161,198 | 39,457,608 | 35,161,198 | |
Consumer | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 2,360,366 | 888,761 | 1,267,025 | 363,647 | |
Provision for/ (Recovery of) loan losses | 937,086 | 751,850 | 2,874,254 | 1,703,103 | |
Other | (61,220) | (27,117) | (61,220) | ||
Charge-offs | (1,480,645) | (973,284) | (3,302,922) | (1,729,911) | |
Recoveries | 496,347 | 408,754 | 1,501,914 | 739,242 | |
Charge-offs, net of recoveries | (984,298) | (564,530) | (1,801,008) | (990,669) | |
Allowance for loan losses, end of period | 2,313,154 | 1,014,861 | 2,313,154 | 1,014,861 | |
Total allowance for credit losses, end of period | 2,313,154 | 1,014,861 | 2,313,154 | 1,014,861 | |
Ending balance, individually evaluated for impairment | 745,671 | 33,513 | 745,671 | 33,513 | |
Ending balance, collectively evaluated for impairment | 1,567,483 | 981,348 | 1,567,483 | 981,348 | |
Financing receivables: | |||||
Ending balance | 41,748,433 | 39,093,619 | 41,748,433 | 39,093,619 | |
Ending balance, evaluated under the fair value option or lower of cost or fair value | 3,364,866 | 1,284,403 | 3,364,866 | 1,284,403 | |
Ending balance, individually evaluated for impairment | 3,771,421 | 1,075,907 | 3,771,421 | 1,075,907 | |
Ending balance, collectively evaluated for impairment | 34,612,146 | 36,733,309 | 34,612,146 | 36,733,309 | |
Consumer | Retail installment contracts and auto loans | |||||
Financing receivables: | |||||
Loans held-for-sale | $ 1,000,000 | ||||
Unallocated | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 71,592 | 39,001 | 33,024 | 27,616 | |
Provision for/ (Recovery of) loan losses | (26,258) | (10,504) | 12,310 | 881 | |
Other | 0 | ||||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Charge-offs, net of recoveries | 0 | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 45,334 | 28,497 | 45,334 | 28,497 | |
Total allowance for credit losses, end of period | 45,334 | 28,497 | 45,334 | 28,497 | |
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 45,334 | 28,497 | 45,334 | 28,497 | |
Financing receivables: | |||||
Ending balance | 0 | 0 | 0 | 0 | |
Ending balance, evaluated under the fair value option or lower of cost or fair value | 0 | 0 | 0 | 0 | |
Ending balance, individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending balance, collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Retail installment contracts and auto loans | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 1,761,843 | 394,736 | 709,987 | 0 | |
Provision for/ (Recovery of) loan losses | 815,672 | 527,400 | 2,479,658 | 1,238,013 | |
Other | 0 | (9,887) | (27,117) | (9,887) | |
Charge-offs | (940,942) | (726,003) | (2,484,560) | (1,339,083) | |
Recoveries | 470,710 | 372,983 | 1,429,315 | 670,186 | |
Charge-offs, net of recoveries | (470,232) | (353,020) | (1,055,245) | (668,897) | |
Allowance for loan losses, end of period | 2,107,283 | 559,229 | 2,107,283 | 559,229 | |
Retail installment contracts and auto loans, purchased | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 542,709 | 0 | 963 | 0 | |
Provision for/ (Recovery of) loan losses | 129,109 | 240,616 | 958,738 | 540,855 | |
Other | 0 | (9,887) | (27,117) | (9,887) | |
Charge-offs | (328,624) | (557,995) | (1,216,036) | (1,149,494) | |
Recoveries | 218,962 | 327,267 | 845,608 | 618,527 | |
Charge-offs, net of recoveries | (109,662) | (230,728) | (370,428) | (530,967) | |
Allowance for loan losses, end of period | 562,156 | 1 | 562,156 | 1 | |
Retail installment contracts and auto loans, originated | |||||
Allowance for Loan Losses [Roll Forward] | |||||
Allowance for loan losses, beginning of period | 1,219,134 | 394,736 | 709,024 | 0 | |
Provision for/ (Recovery of) loan losses | 686,563 | 286,784 | 1,520,920 | 697,158 | |
Other | 0 | 0 | 0 | 0 | |
Charge-offs | (612,318) | (168,008) | (1,268,524) | (189,589) | |
Recoveries | 251,748 | 45,716 | 583,707 | 51,659 | |
Charge-offs, net of recoveries | (360,570) | (122,292) | (684,817) | (137,930) | |
Allowance for loan losses, end of period | $ 1,545,127 | $ 559,228 | $ 1,545,127 | $ 559,228 |
LOANS AND ALLOWANCE FOR CREDI61
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 1,486,630 | $ 1,628,288 |
Foreclosed and other repossessed assets | 154,434 | 136,305 |
Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Other real estate owned (OREO) | 40,692 | 65,051 |
Repossessed vehicles | 154,057 | 126,309 |
Foreclosed and other repossessed assets | 377 | 11,375 |
Total OREO and other repossessed assets | 195,126 | 202,735 |
Total non-performing assets | 1,681,756 | 1,831,023 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 180,145 | 236,122 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,306,485 | 1,392,166 |
Corporate banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 60,450 | 90,579 |
Middle market commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 38,605 | 71,398 |
Santander real estate capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 3,505 | 5,803 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 65,901 | 54,567 |
Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,319 | 9,639 |
Other commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 4,365 | 4,136 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 184,828 | 231,316 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 126,628 | 142,026 |
Retail installment contracts and auto loans, originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 538,929 | 227,132 |
Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 412,175 | 755,590 |
Personal unsecured loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 12,683 | 14,007 |
Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 31,242 | $ 22,095 |
LOANS AND ALLOWANCE FOR CREDI62
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Age Analysis of Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 4,093,782 | $ 4,355,762 |
Current | 77,480,124 | 71,899,957 |
Total Financing Receivables | 81,573,906 | 76,255,719 |
Recorded Investment Greater than 90 Days and Accruing | 77,528 | 93,152 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,364,860 | 3,552,323 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 728,922 | 803,439 |
Corporate banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45,804 | 56,071 |
Current | 2,921,976 | 3,162,079 |
Total Financing Receivables | 2,967,780 | 3,218,150 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Corporate banking | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 23,789 | 18,363 |
Corporate banking | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,015 | 37,708 |
Middle market commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25,154 | 36,783 |
Current | 3,940,019 | 3,706,316 |
Total Financing Receivables | 3,965,173 | 3,743,099 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Middle market commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,964 | 3,179 |
Middle market commercial real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21,190 | 33,604 |
Santander real estate capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 659 | 6,444 |
Current | 1,561,570 | 1,771,540 |
Total Financing Receivables | 1,562,229 | 1,777,984 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Santander real estate capital | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 659 | 4,329 |
Santander real estate capital | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 2,115 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 67,179 | 50,212 |
Current | 19,295,843 | 17,061,710 |
Total Financing Receivables | 19,363,022 | 17,111,922 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial and industrial loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28,408 | 26,778 |
Commercial and industrial loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38,771 | 23,434 |
Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,465 | 19,322 |
Current | 9,578,062 | 8,686,568 |
Total Financing Receivables | 9,600,527 | 8,705,890 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Multi-family | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21,830 | 13,810 |
Multi-family | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 635 | 5,512 |
Other commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,152 | 6,299 |
Current | 2,355,590 | 2,077,933 |
Total Financing Receivables | 2,366,742 | 2,084,232 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Other commercial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,656 | 5,054 |
Other commercial | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,496 | 1,245 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 300,179 | 366,088 |
Current | 6,388,749 | 6,603,221 |
Total Financing Receivables | 6,688,928 | 6,969,309 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Residential mortgages | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 144,232 | 165,270 |
Residential mortgages | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 155,947 | 200,818 |
Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 111,375 | 122,823 |
Current | 6,048,161 | 6,088,475 |
Total Financing Receivables | 6,159,536 | 6,211,298 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Home equity loans and lines of credit | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 31,268 | 36,074 |
Home equity loans and lines of credit | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 80,107 | 86,749 |
Retail installment contracts and auto loans, originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,872,883 | 877,615 |
Current | 16,526,813 | 9,103,311 |
Total Financing Receivables | 18,399,696 | 9,980,926 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Retail installment contracts and auto loans, originated | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,704,700 | 811,912 |
Retail installment contracts and auto loans, originated | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 168,183 | 65,703 |
Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,376,650 | 2,520,830 |
Current | 5,511,873 | 9,928,697 |
Total Financing Receivables | 6,888,523 | 12,449,527 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Retail installment contracts and auto loans, purchased | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,264,913 | 2,317,941 |
Retail installment contracts and auto loans, purchased | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 111,737 | 202,889 |
Personal unsecured loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 179,704 | 204,822 |
Current | 2,349,035 | 2,491,998 |
Total Financing Receivables | 2,528,739 | 2,696,820 |
Recorded Investment Greater than 90 Days and Accruing | 77,528 | 93,152 |
Personal unsecured loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 92,965 | 92,905 |
Personal unsecured loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 86,739 | 111,917 |
Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 80,578 | 88,453 |
Current | 1,002,433 | 1,218,109 |
Total Financing Receivables | 1,083,011 | 1,306,562 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Other consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40,476 | 56,708 |
Other consumer | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 40,102 | $ 31,745 |
LOANS AND ALLOWANCE FOR CREDI63
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Impaired Loans) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Minimum amount for commercial non-accrual loans | $ 1,000,000 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 4,062,699,000 | $ 2,519,217,000 |
Impaired financing receivable, unpaid principal balance | 4,550,177,000 | 2,898,294,000 |
Impaired financing receivable, related specific reserves | 803,188,000 | 136,100,000 |
Impaired financing receivables, average recorded investment | 3,290,962,000 | 1,876,193,000 |
Corporate banking | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 40,866,000 | 37,735,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 33,744,000 | 59,950,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 43,717,000 | 40,453,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 42,396,000 | 66,328,000 |
Impaired financing receivable, related specific reserves | 10,664,000 | 25,322,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 39,301,000 | 40,610,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 46,847,000 | 56,856,000 |
Middle market commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 79,320,000 | 127,792,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 36,936,000 | 60,098,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 124,268,000 | 172,766,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 42,635,000 | 66,024,000 |
Impaired financing receivable, related specific reserves | 10,656,000 | 17,004,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 103,556,000 | 114,465,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 48,517,000 | 89,472,000 |
Santander real estate capital | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 2,860,000 | 2,982,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 0 | 3,878,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 2,860,000 | 2,982,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 0 | 6,356,000 |
Impaired financing receivable, related specific reserves | 0 | 364,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 2,921,000 | 1,867,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 1,939,000 | 6,630,000 |
Commercial and industrial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 2,721,000 | 7,925,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 80,420,000 | 64,183,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 4,144,000 | 17,732,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 89,708,000 | 72,488,000 |
Impaired financing receivable, related specific reserves | 35,285,000 | 35,848,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 5,323,000 | 10,529,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 72,302,000 | 82,204,000 |
Multi-family loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 4,834,000 | 22,492,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 5,762,000 | 5,979,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 5,864,000 | 22,492,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 5,767,000 | 7,076,000 |
Impaired financing receivable, related specific reserves | 463,000 | 1,475,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 13,663,000 | 24,762,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 5,871,000 | 8,699,000 |
Other commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 2,604,000 | 88,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 2,429,000 | 1,932,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 2,622,000 | 88,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 2,527,000 | 1,995,000 |
Impaired financing receivable, related specific reserves | 449,000 | 688,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 1,346,000 | 44,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 2,181,000 | 1,055,000 |
Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 20,040,000 | 23,408,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 139,279,000 | 130,813,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 20,040,000 | 23,408,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 164,278,000 | 156,669,000 |
Impaired financing receivable, related specific reserves | 28,812,000 | 23,628,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 21,724,000 | 57,776,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 135,046,000 | 339,071,000 |
Home equity loans and lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 22,999,000 | 27,230,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 62,328,000 | 60,132,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 22,999,000 | 27,230,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 73,254,000 | 69,374,000 |
Impaired financing receivable, related specific reserves | 4,832,000 | 5,002,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 25,115,000 | 29,152,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 61,230,000 | 57,516,000 |
Retail installment contracts and auto loans, originated | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 0 | 0 |
Impaired financing receivable with related allowance recorded, recorded investment | 916,385,000 | 56,513,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 0 | 0 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 941,146,000 | 58,229,000 |
Impaired financing receivable, related specific reserves | 293,459,000 | 16,997,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 0 | 0 |
Impaired financing receivable with related allowance recorded, average recorded investment | 486,449,000 | 28,258,000 |
Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 92,073,000 | 1,787,124,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 2,471,369,000 | 0 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 115,026,000 | 2,040,785,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 2,793,045,000 | 0 |
Impaired financing receivable, related specific reserves | 414,352,000 | 0 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 939,599,000 | 893,563,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 1,235,685,000 | 0 |
Personal unsecured loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 14,635,000 | 592,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 1,660,000 | 16,476,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 14,635,000 | 592,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 1,950,000 | 16,815,000 |
Impaired financing receivable, related specific reserves | 496,000 | 6,508,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 7,614,000 | 296,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 9,068,000 | 9,506,000 |
Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 13,558,000 | 5,600,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 15,877,000 | 16,295,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 16,657,000 | 5,600,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 20,639,000 | 22,812,000 |
Impaired financing receivable, related specific reserves | 3,720,000 | 3,264,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 9,579,000 | 6,973,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 16,086,000 | 16,889,000 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 292,496,000 | 395,034,000 |
Impaired financing receivable, unpaid principal balance | 366,508,000 | 476,780,000 |
Impaired financing receivable, related specific reserves | 57,517,000 | 80,701,000 |
Impaired financing receivables, average recorded investment | 343,767,000 | 437,193,000 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 3,770,203,000 | 2,124,183,000 |
Impaired financing receivable, unpaid principal balance | 4,183,669,000 | 2,421,514,000 |
Impaired financing receivable, related specific reserves | 745,671,000 | 55,399,000 |
Impaired financing receivables, average recorded investment | $ 2,947,195,000 | $ 1,439,000,000 |
LOANS AND ALLOWANCE FOR CREDI64
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Lending Asset Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | $ 39,825,473 | $ 36,641,277 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 37,965,056 | 35,042,598 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 888,927 | 655,721 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 907,675 | 853,473 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 63,815 | 89,485 |
Corporate banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,967,780 | 3,218,150 |
Corporate banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,623,982 | 2,910,957 |
Corporate banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 118,536 | 83,122 |
Corporate banking | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 215,912 | 192,911 |
Corporate banking | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 9,350 | 31,160 |
Middle market commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 3,965,173 | 3,743,099 |
Middle market commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 3,765,920 | 3,472,448 |
Middle market commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 48,842 | 61,166 |
Middle market commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 127,213 | 174,882 |
Middle market commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 23,198 | 34,603 |
Santander real estate capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,562,229 | 1,777,984 |
Santander real estate capital | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,392,754 | 1,564,983 |
Santander real estate capital | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 121,441 | 133,950 |
Santander real estate capital | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 47,375 | 76,232 |
Santander real estate capital | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 659 | 2,819 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 19,363,022 | 17,111,922 |
Commercial and industrial loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 18,529,081 | 16,495,836 |
Commercial and industrial loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 374,448 | 237,331 |
Commercial and industrial loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 429,623 | 358,782 |
Commercial and industrial loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 29,870 | 19,973 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 9,600,527 | 8,705,890 |
Multi-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 9,333,083 | 8,533,427 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 195,710 | 131,677 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 71,301 | 40,355 |
Multi-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 433 | 431 |
Remaining commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,366,742 | 2,084,232 |
Remaining commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,320,236 | 2,064,947 |
Remaining commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 29,950 | 8,475 |
Remaining commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 16,251 | 10,311 |
Remaining commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | $ 305 | $ 499 |
LOANS AND ALLOWANCE FOR CREDI65
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Consumer Lending Asset Quality Indicators - Credit Score) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | |
Loans Receivable [Line Items] | |||
Financing receivable | [1],[2] | $ 78,583,198,000 | $ 75,995,467,000 |
Consumer | Personal unsecured loans | |||
Loans Receivable [Line Items] | |||
Loans held-for-sale | 1,900,000,000 | 0 | |
Consumer | Retail installment contracts and auto loans | |||
Loans Receivable [Line Items] | |||
Loans held-for-sale | 825,800,000 | 45,400,000 | |
Retail installment contracts and auto loans | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 25,288,219,000 | $ 22,430,453,000 | |
Percentage of total loans, Retail installment contracts and auto loans | 100.00% | 100.00% | |
Retail installment contracts and auto loans | FICO Score Less than 600 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 12,961,005,000 | $ 11,669,878,000 | |
Percentage of total loans, Retail installment contracts and auto loans | 51.30% | 52.00% | |
Retail installment contracts and auto loans | FICO Score of 600 to 639 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 4,105,660,000 | $ 4,046,452,000 | |
Percentage of total loans, Retail installment contracts and auto loans | 16.20% | 18.00% | |
Retail installment contracts and auto loans | FICO Score of 640 to 679 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 3,059,119,000 | $ 4,046,452,000 | |
Percentage of total loans, Retail installment contracts and auto loans | 12.10% | 18.00% | |
Retail installment contracts and auto loans | FICO Score of 680 to 719 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 0 | ||
Percentage of total loans, Retail installment contracts and auto loans | 0.00% | ||
Retail installment contracts and auto loans | FICO Score of 720 to 759 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 0 | ||
Percentage of total loans, Retail installment contracts and auto loans | 0.00% | ||
Retail installment contracts and auto loans | FICO Score Equal to or Greater than 760 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 0 | ||
Percentage of total loans, Retail installment contracts and auto loans | 0.00% | ||
Retail installment contracts and auto loans | FICO score not applicable | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 5,162,435,000 | $ 2,667,671,000 | |
Percentage of total loans, Retail installment contracts and auto loans | 20.40% | 12.00% | |
Personal unsecured loans | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 2,528,739,000 | $ 2,696,820,000 | |
Percentage of total loans, Personal unsecured loans balance | 100.00% | 100.00% | |
Personal unsecured loans | FICO Score Less than 600 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 405,059,000 | $ 491,984,000 | |
Percentage of total loans, Personal unsecured loans balance | 16.00% | 18.20% | |
Personal unsecured loans | FICO Score of 600 to 639 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 406,943,000 | $ 446,995,000 | |
Percentage of total loans, Personal unsecured loans balance | 16.10% | 16.60% | |
Personal unsecured loans | FICO Score of 640 to 679 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 1,071,993,000 | $ 1,163,203,000 | |
Percentage of total loans, Personal unsecured loans balance | 42.40% | 43.10% | |
Personal unsecured loans | FICO Score of 680 to 719 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 64,610,000 | ||
Percentage of total loans, Personal unsecured loans balance | 2.40% | ||
Personal unsecured loans | FICO Score of 720 to 759 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 72,235,000 | ||
Percentage of total loans, Personal unsecured loans balance | 2.70% | ||
Personal unsecured loans | FICO Score Equal to or Greater than 760 | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 78,234,000 | ||
Percentage of total loans, Personal unsecured loans balance | 2.90% | ||
Personal unsecured loans | FICO score not applicable | |||
Loans Receivable [Line Items] | |||
Financing receivable | $ 644,744,000 | $ 379,559,000 | |
Percentage of total loans, Personal unsecured loans balance | 25.50% | 14.10% | |
[1] | Loans held for investment includes $374.2 million and $845.9 million of loans recorded at fair value at September 30, 2015 and December 31, 2014, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI66
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Consumer Lending Asset Quality Indicators - FICO and CLTV Range) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | $ 6,688,928 | $ 6,969,309 |
Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 6,159,536 | 6,211,298 |
LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 512,755 | 437,972 |
LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 288,147 | 324,204 |
LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,979,919 | 4,368,075 |
LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,178,007 | 3,493,788 |
LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,439,804 | 1,294,983 |
LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,115,483 | 1,843,574 |
LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 355,043 | 396,356 |
LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 221,746 | 215,803 |
LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 354,057 | 333,198 |
LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 72,477 | 90,395 |
LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 107,184 | 165,725 |
LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 223,842 | 216,534 |
FICO score not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 526,312 | 476,269 |
FICO score not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 201,407 | 221,219 |
FICO score not applicable | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 511,932 | 437,215 |
FICO score not applicable | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 199,048 | 217,607 |
FICO score not applicable | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 12,469 | 14,801 |
FICO score not applicable | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,388 | 2,265 |
FICO score not applicable | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,911 | 643 |
FICO score not applicable | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 909 | 863 |
FICO score not applicable | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 8,676 |
FICO score not applicable | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 14,934 |
FICO score not applicable | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 62 | 336 |
FICO score not applicable | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 0 |
FICO score not applicable | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 0 |
FICO score not applicable | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 148 |
FICO Score Less than 600 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 380,939 | 460,284 |
FICO Score Less than 600 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 289,921 | 286,694 |
FICO Score Less than 600 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 133 | 94 |
FICO Score Less than 600 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 11,964 | 13,543 |
FICO Score Less than 600 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 235,909 | 279,197 |
FICO Score Less than 600 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 149,242 | 158,712 |
FICO Score Less than 600 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 74,340 | 91,037 |
FICO Score Less than 600 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 80,251 | 69,381 |
FICO Score Less than 600 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 32,482 | 41,341 |
FICO Score Less than 600 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 17,798 | 17,271 |
FICO Score Less than 600 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 25,356 | 24,069 |
FICO Score Less than 600 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,463 | 15,017 |
FICO Score Less than 600 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 9,814 | 16,327 |
FICO Score Less than 600 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 23,108 | 20,989 |
FICO Score of 600 to 639 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 266,014 | 263,857 |
FICO Score of 600 to 639 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 271,110 | 278,594 |
FICO Score of 600 to 639 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1 | 200 |
FICO Score of 600 to 639 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 9,447 | 9,748 |
FICO Score of 600 to 639 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 163,673 | 154,557 |
FICO Score of 600 to 639 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 140,744 | 154,887 |
FICO Score of 600 to 639 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 47,512 | 50,238 |
FICO Score of 600 to 639 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 81,919 | 76,431 |
FICO Score of 600 to 639 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 24,478 | 25,861 |
FICO Score of 600 to 639 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 16,017 | 13,218 |
FICO Score of 600 to 639 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 20,422 | 23,410 |
FICO Score of 600 to 639 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 5,629 | 6,337 |
FICO Score of 600 to 639 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 8,704 | 13,446 |
FICO Score of 600 to 639 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 18,578 | 14,118 |
FICO Score of 640 to 679 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 433,055 | 488,841 |
FICO Score of 640 to 679 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 492,771 | 514,502 |
FICO Score of 640 to 679 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 237 | 0 |
FICO Score of 640 to 679 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 11,194 | 14,717 |
FICO Score of 640 to 679 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 259,330 | 303,319 |
FICO Score of 640 to 679 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 246,235 | 279,397 |
FICO Score of 640 to 679 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 84,767 | 87,055 |
FICO Score of 640 to 679 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 173,486 | 157,214 |
FICO Score of 640 to 679 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 35,774 | 40,863 |
FICO Score of 640 to 679 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 29,088 | 26,618 |
FICO Score of 640 to 679 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 35,345 | 38,057 |
FICO Score of 640 to 679 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,259 | 11,456 |
FICO Score of 640 to 679 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 13,600 | 19,530 |
FICO Score of 640 to 679 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 26,511 | 25,117 |
FICO Score of 680 to 719 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 820,095 | 843,357 |
FICO Score of 680 to 719 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 854,350 | 867,323 |
FICO Score of 680 to 719 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 21 | 25 |
FICO Score of 680 to 719 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 13,692 | 15,984 |
FICO Score of 680 to 719 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 487,624 | 528,979 |
FICO Score of 680 to 719 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 430,783 | 488,982 |
FICO Score of 680 to 719 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 183,363 | 161,023 |
FICO Score of 680 to 719 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 323,493 | 272,083 |
FICO Score of 680 to 719 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 65,314 | 66,898 |
FICO Score of 680 to 719 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 45,454 | 40,456 |
FICO Score of 680 to 719 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 54,890 | 56,560 |
FICO Score of 680 to 719 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 11,277 | 11,503 |
FICO Score of 680 to 719 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 27,042 | 34,473 |
FICO Score of 680 to 719 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 31,492 | 33,714 |
FICO Score of 720 to 759 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,198,601 | 1,209,832 |
FICO Score of 720 to 759 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,177,793 | 1,181,245 |
FICO Score of 720 to 759 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 344 | 314 |
FICO Score of 720 to 759 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 13,473 | 15,643 |
FICO Score of 720 to 759 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 711,855 | 758,315 |
FICO Score of 720 to 759 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 606,189 | 672,971 |
FICO Score of 720 to 759 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 322,421 | 271,983 |
FICO Score of 720 to 759 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 436,434 | 381,828 |
FICO Score of 720 to 759 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 76,584 | 80,077 |
FICO Score of 720 to 759 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 52,347 | 42,872 |
FICO Score of 720 to 759 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 75,449 | 64,993 |
FICO Score of 720 to 759 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 12,440 | 16,344 |
FICO Score of 720 to 759 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 22,610 | 39,927 |
FICO Score of 720 to 759 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 46,248 | 45,810 |
FICO Score Equal to or Greater than 760 | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,063,912 | 3,226,869 |
FICO Score Equal to or Greater than 760 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,872,184 | 2,861,721 |
FICO Score Equal to or Greater than 760 | LTV not applicable | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 87 | 124 |
FICO Score Equal to or Greater than 760 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 29,329 | 36,962 |
FICO Score Equal to or Greater than 760 | LTV less than or equal to 70% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,109,059 | 2,328,907 |
FICO Score Equal to or Greater than 760 | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,603,426 | 1,736,574 |
FICO Score Equal to or Greater than 760 | LTV of 70.01% to 80% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 725,490 | 633,004 |
FICO Score Equal to or Greater than 760 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,018,991 | 885,774 |
FICO Score Equal to or Greater than 760 | LTV of 80.01% to 90% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 120,411 | 132,640 |
FICO Score Equal to or Greater than 760 | LTV of 90.01% to 100% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 61,042 | 60,434 |
FICO Score Equal to or Greater than 760 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 142,533 | 125,773 |
FICO Score Equal to or Greater than 760 | LTV of 100.01% to 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 22,409 | 29,738 |
FICO Score Equal to or Greater than 760 | LTV greater than 110% | Residential Mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 25,414 | 42,022 |
FICO Score Equal to or Greater than 760 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | $ 77,905 | $ 76,638 |
LOANS AND ALLOWANCE FOR CREDI67
LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (Troubled Debt Restructuring Activity) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)Contractcontract | Sep. 30, 2014USD ($)Contractcontract | Sep. 30, 2015USD ($)Contractcontract | Sep. 30, 2014USD ($)Contractcontract | Dec. 31, 2014USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings | $ 3,950,830 | $ 3,950,830 | $ 2,385,175 | ||
Number of Contracts | contract | 61,489 | 46,433 | 217,069 | 76,686 | |
Pre-Modification Outstanding Recorded Investment | $ 912,105 | $ 620,591 | $ 3,168,083 | $ 1,010,000 | |
Post-Modification Outstanding Recorded Investment | $ 911,585 | $ 618,297 | $ 3,163,451 | $ 998,405 | |
Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 16,302 | 2,350 | 40,737 | 3,133 | |
Recorded Investment | $ 244,534 | $ 20,961 | $ 577,696 | $ 29,641 | |
Corporate banking | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 0 | 2 | 12 | 23 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 16,739 | $ 11,673 | $ 70,017 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 16,615 | $ 13,227 | $ 68,656 | |
Middle market commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | Contract | 0 | ||||
Pre-Modification Outstanding Recorded Investment | $ 0 | ||||
Post-Modification Outstanding Recorded Investment | $ 0 | ||||
Middle market commercial real estate | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 2 | 1 | 5 | ||
Pre-Modification Outstanding Recorded Investment | $ 19,024 | $ 14,439 | $ 28,963 | ||
Post-Modification Outstanding Recorded Investment | $ 19,024 | $ 14,439 | $ 25,851 | ||
Santander Real Estate Capital | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | Contract | 0 | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Commercial and industrial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | Contract | 26 | 35 | |||
Pre-Modification Outstanding Recorded Investment | $ 769 | $ 988 | |||
Post-Modification Outstanding Recorded Investment | $ 769 | $ 988 | |||
Commercial and industrial | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 210 | 418 | |||
Pre-Modification Outstanding Recorded Investment | $ 6,818 | $ 21,941 | |||
Post-Modification Outstanding Recorded Investment | $ 6,816 | $ 19,226 | |||
Number of Contracts | contract | 10 | 0 | 32 | 0 | |
Recorded Investment | $ 357 | $ 0 | $ 1,043 | $ 0 | |
Multi-family loans | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | Contract | 0 | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Other commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | Contract | 0 | 0 | |||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |||
Other commercial | Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 2 | 5 | |||
Pre-Modification Outstanding Recorded Investment | $ 1,456 | $ 2,503 | |||
Post-Modification Outstanding Recorded Investment | $ 1,445 | $ 2,472 | |||
Residential mortgages | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 25 | 65 | 114 | 222 | |
Pre-Modification Outstanding Recorded Investment | $ 3,758 | $ 13,096 | $ 17,929 | $ 41,830 | |
Post-Modification Outstanding Recorded Investment | $ 4,028 | $ 13,444 | $ 18,765 | $ 42,510 | |
Number of Contracts | contract | 2 | 1 | 15 | 22 | |
Recorded Investment | $ 486 | $ 298 | $ 2,307 | $ 2,993 | |
Home equity loans and lines of credit | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 31 | 32 | 92 | 86 | |
Pre-Modification Outstanding Recorded Investment | $ 2,581 | $ 2,813 | $ 7,274 | $ 7,991 | |
Post-Modification Outstanding Recorded Investment | $ 2,992 | $ 2,813 | $ 8,281 | $ 7,991 | |
Number of Contracts | contract | 3 | 1 | 14 | 3 | |
Recorded Investment | $ 728 | $ 65 | $ 1,665 | $ 377 | |
Retail installment contracts and auto loans | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 15,416 | 1,528 | 37,252 | 2,018 | |
Recorded Investment | $ 241,952 | $ 19,737 | $ 568,756 | $ 25,105 | |
Retail installment contracts and auto loans, originated | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 23,726 | 318 | 50,252 | 346 | |
Pre-Modification Outstanding Recorded Investment | $ 447,622 | $ 6,102 | $ 957,309 | $ 6,698 | |
Post-Modification Outstanding Recorded Investment | $ 447,362 | $ 6,063 | $ 956,871 | $ 6,655 | |
Retail installment contracts and auto loans, purchased | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 33,436 | 40,331 | 152,943 | 65,415 | |
Pre-Modification Outstanding Recorded Investment | $ 446,122 | $ 554,184 | $ 2,120,303 | $ 838,856 | |
Post-Modification Outstanding Recorded Investment | $ 445,189 | $ 551,689 | $ 2,115,473 | $ 831,288 | |
Personal unsecured loans | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 4,058 | 5,653 | 13,217 | 10,542 | |
Pre-Modification Outstanding Recorded Investment | $ 4,894 | $ 6,284 | $ 15,774 | $ 11,618 | |
Post-Modification Outstanding Recorded Investment | $ 4,870 | $ 6,311 | $ 15,685 | $ 11,457 | |
Number of Contracts | contract | 871 | 820 | 3,422 | 1,089 | |
Recorded Investment | $ 1,011 | $ 861 | $ 3,681 | $ 1,139 | |
Other consumer | Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | contract | 3 | 2 | 20 | 7 | |
Pre-Modification Outstanding Recorded Investment | $ 310 | $ 124 | $ 1,441 | $ 536 | |
Post-Modification Outstanding Recorded Investment | $ 328 | $ 124 | $ 1,484 | $ 537 | |
Number of Contracts | contract | 0 | 0 | 2 | 1 | |
Recorded Investment | $ 0 | $ 0 | $ 244 | $ 27 | |
Performing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings | 3,428,202 | 3,428,202 | 2,041,653 | ||
Non-performing | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings | $ 522,628 | $ 522,628 | $ 343,522 |
LEASED VEHICLES, NET (As Rest68
LEASED VEHICLES, NET (As Restated) (Components of Leased Vehicles, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Leased vehicles | $ 10,645,278 | $ 8,255,912 | |
Origination fees and other costs | 30,740 | 20,628 | |
Manufacturer subvention payments | (1,046,555) | (834,669) | |
Total leased vehicles | 9,629,463 | 7,441,871 | |
Less: accumulated depreciation | (1,557,268) | (817,901) | |
Total Leased Vehicles, net | [1],[2] | $ 8,072,195 | $ 6,623,970 |
[1] | Net of accumulated depreciation of $1.6 billion and $817.9 million at September 30, 2015 and December 31, 2014, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
LEASED VEHICLES, NET (As Rest69
LEASED VEHICLES, NET (As Restated) (Future Minimum Rental Receivables) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Leases [Abstract] | |
Remainder of 2015 | $ 363,333 |
2,016 | 1,319,342 |
2,017 | 800,873 |
2,018 | 183,908 |
2,019 | 840 |
Thereafter | 0 |
Total | $ 2,668,296 |
LEASED VEHICLES, NET (As Rest70
LEASED VEHICLES, NET (As Restated) (Narrative) (Details) - Chrysler Group - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Operating Leased Assets [Line Items] | ||
Private label financing agreement, term | 10 years | |
Sale of leases originated, depreciated net capitalized costs | $ 0 | $ 1,300,000,000 |
Sale of leases, net book value | $ 1,200,000,000 |
VARIABLE INTEREST ENTITIES (A71
VARIABLE INTEREST ENTITIES (As Restated) (Assets and Liabilities of VIEs) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Variable Interest Entity [Line Items] | ||||
Restricted cash | [1] | $ 2,431,103 | $ 2,024,838 | |
Leased vehicles, net | [1],[2] | 8,072,195 | 6,623,970 | |
Various other assets | [1],[3] | 1,944,788 | 2,869,580 | |
TOTAL ASSETS | 130,986,871 | 118,820,880 | $ 113,920,976 | |
Various other liabilities | [1] | 713,512 | 722,685 | |
TOTAL LIABILITIES | 107,641,659 | 96,093,424 | ||
VIEs, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash | 1,756,312 | 1,626,257 | ||
Loans | 23,354,692 | 20,557,168 | ||
Leased vehicles, net | 6,062,106 | 4,848,593 | ||
Various other assets | 587,590 | 555,108 | ||
TOTAL ASSETS | 31,760,700 | 27,587,126 | ||
Notes payable | 30,461,521 | 27,892,669 | ||
Various other liabilities | 83,815 | 55,795 | ||
TOTAL LIABILITIES | 30,545,336 | $ 27,948,464 | ||
VIEs, Primary Beneficiary | Retail installment contracts held for sale | ||||
Variable Interest Entity [Line Items] | ||||
Loans | $ 1,600,000 | |||
[1] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. | |||
[2] | Net of accumulated depreciation of $1.6 billion and $817.9 million at September 30, 2015 and December 31, 2014, respectively. | |||
[3] | Includes mortgage servicing rights ("MSRs") of $143.5 million and 145.0 million at September 30, 2015 and December 31, 2014, respectively, for which the Company has elected the FVO. See Note 9 to these Condensed Consolidated Financial Statements for additional information. |
VARIABLE INTEREST ENTITIES (A72
VARIABLE INTEREST ENTITIES (As Restated) (Cash Flow Summary) (Details) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | |
VIE, Primary Beneficiary | Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Receivables securitized | $ 4,761,341 | $ 3,166,785 | $ 10,499,489 | $ 14,828,478 |
Net proceeds from new securitizations | 3,840,369 | 2,592,845 | 8,814,810 | 11,816,224 |
Cash received for servicing fees | 182,960 | 164,325 | 417,838 | 518,563 |
Cash received upon release from reserved and restricted cash accounts | 0 | 0 | 0 | 0 |
Net distributions from Trusts | 486,377 | 468,207 | 1,315,164 | 1,558,772 |
Total cash received from securitization trusts | 4,509,706 | 3,225,377 | 10,547,812 | 13,893,559 |
VIE, Not Primary Beneficiary | Off-balance Securitization Trusts | ||||
Variable Interest Entity [Line Items] | ||||
Receivables securitized | 0 | 1,028,278 | 1,802,461 | 768,561 |
Net proceeds from new securitizations | 0 | 1,078,202 | 1,894,052 | 785,983 |
Cash received for servicing fees | 5,955 | 3,925 | 10,897 | 17,578 |
Total cash received from securitization trusts | $ 5,955 | $ 1,082,127 | $ 1,904,949 | $ 803,561 |
VARIABLE INTEREST ENTITIES (A73
VARIABLE INTEREST ENTITIES (As Restated) (Narrative) (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||||
Proceeds from sale of residual interests and retained bonds | $ 661,700,000 | ||||
Investments in notes issued by SDART trusts, carrying value | 5,600,000 | $ 5,600,000 | |||
Derecognized assets | 1,900,000,000 | 1,900,000,000 | |||
Derecognized notes payable and other liabilities | 1,200,000,000 | 1,200,000,000 | |||
Servicing Fees | 5,900,000 | ||||
Trusts | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Gross retail installment contracts transferred to consolidated Trusts | 26,900,000,000 | 26,900,000,000 | $ 23,200,000,000 | ||
Off-balance Securitization Trusts | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from securitization of retail installment contracts | 0 | $ 1,000,000,000 | $ 1,800,000,000 | 768,600,000 | |
Gain from securitization of financial assets | 39,100,000 | 71,600,000 | |||
Chrysler Capital Securitizations | VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Gross retail installment contracts sold in off-balance sheet securitizations | $ 2,200,000,000 | $ 2,400,000,000 | $ 2,400,000,000 | $ 2,200,000,000 | $ 2,200,000,000 |
GOODWILL AND OTHER INTANGIBLE74
GOODWILL AND OTHER INTANGIBLES (As Restated) (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | $ 8,951,484 |
Disposals during the period | 0 |
Additions during the period | 0 |
Re-allocations during the period | 0 |
Goodwill, Ending balance | 8,951,484 |
Consumer & Business Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 1,815,729 |
Disposals during the period | 0 |
Additions during the period | 0 |
Re-allocations during the period | (265,553) |
Goodwill, Ending balance | 1,550,176 |
Commercial Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 71,522 |
Disposals during the period | 0 |
Additions during the period | 0 |
Re-allocations during the period | 374,546 |
Goodwill, Ending balance | 446,068 |
Commercial Real Estate | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 1,406,048 |
Disposals during the period | 0 |
Additions during the period | 0 |
Re-allocations during the period | (108,993) |
Goodwill, Ending balance | 1,297,055 |
Global Corporate Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 131,130 |
Disposals during the period | 0 |
Additions during the period | 0 |
Re-allocations during the period | 0 |
Goodwill, Ending balance | 131,130 |
SCUSA | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 5,527,055 |
Disposals during the period | |
Additions during the period | 0 |
Re-allocations during the period | 0 |
Goodwill, Ending balance | 5,527,055 |
Corrections | SCUSA | Increased Value of the SC Business at Acquisition | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | $ 59,500 |
GOODWILL AND OTHER INTANGIBLE75
GOODWILL AND OTHER INTANGIBLES (As Restated) (Finite-lived and Indefinite-lived Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Carrying Amount | |||||
Intangibles subject to amortization | $ 636,457 | $ 685,488 | $ 636,457 | ||
Total Intangibles | 657,957 | 706,988 | 657,957 | ||
Accumulated Amortization | (408,044) | (359,012) | (408,044) | ||
Amortization of intangibles | 15,887 | $ 17,730 | 49,031 | $ 50,670 | |
Trade name | |||||
Net Carrying Amount | |||||
Intangibles not subject to amortization | 21,500 | 21,500 | 21,500 | ||
Dealer networks | |||||
Net Carrying Amount | |||||
Intangibles subject to amortization | 514,643 | 544,054 | 514,643 | ||
Accumulated Amortization | (65,357) | (35,946) | (65,357) | ||
Chrysler relationship | |||||
Net Carrying Amount | |||||
Intangibles subject to amortization | 113,750 | 125,000 | 113,750 | ||
Accumulated Amortization | (25,000) | (13,750) | (25,000) | ||
Core deposit intangibles | |||||
Net Carrying Amount | |||||
Intangibles subject to amortization | 1,830 | 7,779 | 1,830 | ||
Accumulated Amortization | (294,012) | (288,063) | (294,012) | ||
Other intangibles | |||||
Net Carrying Amount | |||||
Intangibles subject to amortization | 6,234 | 8,655 | 6,234 | ||
Accumulated Amortization | $ (23,675) | (21,253) | $ (23,675) | ||
Corrections | Trade name | |||||
Net Carrying Amount | |||||
Impairment of intangible assets | $ 28,500 |
GOODWILL AND OTHER INTANGIBLE76
GOODWILL AND OTHER INTANGIBLES (As Restated) (Future Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2015, Calendar Year Amount | $ 64,432 | $ 64,432 | ||
2015, Recorded To Date | 15,887 | $ 17,730 | 49,031 | $ 50,670 |
2015, Remaining Amount To Record | 15,401 | 15,401 | ||
2,016 | 57,162 | 57,162 | ||
2,017 | 55,055 | 55,055 | ||
2,018 | 54,702 | 54,702 | ||
2,019 | 54,501 | 54,501 | ||
Thereafter | $ 399,636 | $ 399,636 |
OTHER ASSETS (As Restated) (Oth
OTHER ASSETS (As Restated) (Other Assets Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Income tax receivables | $ 604,929 | $ 938,222 | |
Derivative assets at fair value | 415,409 | 366,061 | |
Other repossessed assets | 154,434 | 136,305 | |
MSRs, at fair value | 143,535 | 145,047 | |
Prepaid expenses | 151,017 | 159,198 | |
OREO | 40,692 | 65,051 | |
Miscellaneous assets and receivables | 434,772 | 1,059,696 | |
Total other assets | [1],[2] | $ 1,944,788 | $ 2,869,580 |
[1] | Includes mortgage servicing rights ("MSRs") of $143.5 million and 145.0 million at September 30, 2015 and December 31, 2014, respectively, for which the Company has elected the FVO. See Note 9 to these Condensed Consolidated Financial Statements for additional information. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
OTHER ASSETS (As Restated) (Ser
OTHER ASSETS (As Restated) (Servicing Assets Rollforward) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at beginning of period | $ 145,047 | |
Fair value at end of period | 143,535 | |
Residential MSRs | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at beginning of period | 145,047 | $ 141,787 |
Mortgage servicing assets recognized | 17,124 | 20,081 |
Principal reductions | (19,385) | (15,999) |
Change in fair value due to valuation assumptions | 749 | (14,078) |
Fair value at end of period | $ 143,535 | $ 131,791 |
OTHER ASSETS (As Restated) (Nar
OTHER ASSETS (As Restated) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets [Line Items] | ||||||
Mortgage servicing rights | $ 143,535 | $ 143,535 | $ 145,047 | |||
Mortgage servicing fee income | 11,100 | $ 10,500 | 33,600 | $ 31,700 | ||
Gains (losses) on sale of mortgage loans | 5,200 | 90,900 | 28,700 | 104,700 | ||
Residential mortgages | ||||||
Servicing Assets [Line Items] | ||||||
Principal balance of loans serviced for others | 15,900,000 | 15,900,000 | 15,900,000 | |||
Mortgage servicing rights | 143,535 | 131,791 | 143,535 | 131,791 | 145,047 | $ 141,787 |
Net changes in the fair value of MSRs | (13,500) | $ (2,700) | 700 | $ (14,100) | ||
Loans sold with recourse and credit enhancement features | Residential mortgages | ||||||
Servicing Assets [Line Items] | ||||||
Loans sold with recourse, unpaid principal balance | 54,500 | 54,500 | 55,800 | |||
Loans sold with recourse and credit enhancement features | Multi-family loans | FNMA | ||||||
Servicing Assets [Line Items] | ||||||
Loans sold with recourse, unpaid principal balance | $ 589,700 | $ 589,700 | $ 2,600,000 |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) - USD ($) | Sep. 30, 2015 | Jul. 17, 2015 | Apr. 17, 2015 | Jan. 12, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | |||||||
Total borrowings and other debt obligations | [1] | $ 48,371,320,000 | $ 39,679,382,000 | ||||
Borrowings repurchase | $ 0 | $ 600,000 | |||||
Senior Notes | 2.00% senior notes, due January 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 750,000,000 | ||||||
Stated interest rate | 2.00% | ||||||
Senior Notes | Senior Floating Rate Notes Due January 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 250,000,000 | ||||||
Senior Notes | 2.65% senior notes, due April 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||
Stated interest rate | 2.65% | ||||||
Senior Notes | 4.50% senior notes, due July 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,100,000,000 | ||||||
Stated interest rate | 4.50% | ||||||
[1] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS (SHUSA) (Details)
BORROWINGS (SHUSA) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total borrowings and other debt obligations | [1] | $ 48,371,320 | $ 39,679,382 |
SHUSA | |||
Debt Instrument [Line Items] | |||
Total borrowings and other debt obligations | $ 3,292,911 | $ 1,804,297 | |
Effective Rate | 3.91% | 3.89% | |
SHUSA | 3.00% senior notes, due September 2015 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 0 | $ 598,788 | |
Effective Rate | 0.00% | 3.28% | |
Stated Rate | 3.00% | ||
SHUSA | 4.625% senior notes, due April 2016 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 475,467 | $ 474,718 | |
Effective Rate | 4.85% | 4.85% | |
Stated Rate | 4.625% | ||
SHUSA | 3.45% senior notes, due August 2018 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 497,604 | $ 497,025 | |
Effective Rate | 3.62% | 3.62% | |
Stated Rate | 3.45% | ||
SHUSA | 2.65% senior notes, due April 2020 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 992,211 | $ 0 | |
Effective Rate | 2.83% | 0.00% | |
Stated Rate | 2.65% | ||
SHUSA | 4.50% senior notes, due July 2025 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 1,093,824 | $ 0 | |
Effective Rate | 4.57% | 0.00% | |
Stated Rate | 4.50% | ||
SHUSA | Junior subordinated debentures - Capital Trust VI, due June 2036 | |||
Debt Instrument [Line Items] | |||
Subordinated debentures, Balance | $ 69,768 | $ 69,751 | |
Effective Rate | 7.91% | 7.91% | |
SHUSA | Common securities - Capital Trust VI | |||
Debt Instrument [Line Items] | |||
Common securities, Balance | $ 10,000 | $ 10,000 | |
Effective Rate | 7.91% | 7.91% | |
SHUSA | Junior subordinated debentures - Capital Trust IX, due July 2036 | |||
Debt Instrument [Line Items] | |||
Subordinated debentures, Balance | $ 149,397 | $ 149,375 | |
Effective Rate | 2.09% | 2.04% | |
SHUSA | Common securities - Capital Trust IX | |||
Debt Instrument [Line Items] | |||
Common securities, Balance | $ 4,640 | $ 4,640 | |
Effective Rate | 2.09% | 2.04% | |
[1] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS (Santander Bank) (De
BORROWINGS (Santander Bank) (Details) - Santander Bank - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Total borrowings and other debt obligations | $ 15,143,775 | $ 10,276,555 |
Effective Rate | 1.83% | 2.64% |
2.00% senior notes, due January 2018 | ||
Debt Instrument [Line Items] | ||
Senior notes, Balance | $ 745,485 | $ 0 |
Effective Rate | 2.27% | 0.00% |
Stated Rate | 2.00% | |
Senior Notes Due January 2018 | ||
Debt Instrument [Line Items] | ||
Senior notes, Balance | $ 249,187 | $ 0 |
Effective Rate | 1.31% | 0.00% |
Basis spread on LIBOR | 0.93% | |
8.750% subordinated debentures, due May 2018 | ||
Debt Instrument [Line Items] | ||
Subordinated debentures, Balance | $ 498,008 | $ 497,530 |
Effective Rate | 8.92% | 8.92% |
Stated Rate | 8.75% | |
FHLB advances, maturing through August 2018 | ||
Debt Instrument [Line Items] | ||
FHLB advances, maturing through August 2018, Balance | $ 13,335,000 | $ 9,455,000 |
Effective Rate | 1.36% | 2.06% |
Subordinated term loan, due February 2019 | ||
Debt Instrument [Line Items] | ||
Subordinated term loan, Balance | $ 130,678 | $ 139,180 |
Effective Rate | 6.15% | 6.00% |
REIT preferred, due May 2020 | ||
Debt Instrument [Line Items] | ||
REIT preferred, due May 2020, Balance | $ 154,550 | $ 153,417 |
Effective Rate | 13.54% | 13.64% |
Subordinated term loan, due August 2022 | ||
Debt Instrument [Line Items] | ||
Subordinated term loan, Balance | $ 30,867 | $ 31,428 |
Effective Rate | 7.89% | 7.77% |
BORROWINGS (SCUSA) (Details)
BORROWINGS (SCUSA) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Balance | $ 102,900,000 | $ 58,800,000 |
SCUSA | ||
Debt Instrument [Line Items] | ||
Balance | 34,038,521,000 | 35,182,041,000 |
Restricted Cash Pledged | $ 1,562,497,000 | $ 1,465,085,000 |
SCUSA | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Rate | 0.88% | 0.89% |
SCUSA | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.29% | 2.80% |
SCUSA | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Balance | $ 9,879,184,000 | $ 9,792,327,000 |
Effective Rate | 1.76% | 1.68% |
Assets Pledged | $ 7,614,933,000 | $ 6,968,449,000 |
Restricted Cash Pledged | 231,827,000 | 197,854,000 |
SCUSA | Revolving Credit Facility | Warehouse line, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 698,715,000 | $ 397,452,000 |
Effective Rate | 1.26% | 1.26% |
Assets Pledged | $ 1,001,601,000 | $ 589,529,000 |
Restricted Cash Pledged | 39,046,000 | 20,661,000 |
SCUSA | Revolving Credit Facility | Warehouse line, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,087,977,000 | |
Effective Rate | 1.36% | |
Assets Pledged | $ 1,565,626,000 | |
Restricted Cash Pledged | 55,126,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due March 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 250,594,000 | |
Effective Rate | 0.98% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | 0 | |
SCUSA | Revolving Credit Facility | Warehouse line, due June 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 243,736,000 | |
Effective Rate | 1.17% | |
Assets Pledged | $ 344,822,000 | |
Restricted Cash Pledged | 0 | |
SCUSA | Revolving Credit Facility | Warehouse line, due September 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 199,980,000 | |
Effective Rate | 1.96% | |
Assets Pledged | $ 351,755,000 | |
Restricted Cash Pledged | 13,169,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due October 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 199,680,000 | |
Effective Rate | 2.10% | |
Assets Pledged | $ 261,042,000 | |
Restricted Cash Pledged | 9,433,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due December 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 468,565,000 | |
Effective Rate | 0.93% | |
Assets Pledged | $ 641,709,000 | |
Restricted Cash Pledged | 16,467,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due June 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 397,021,000 | $ 1,051,777,000 |
Effective Rate | 1.18% | 1.06% |
Assets Pledged | $ 544,546,000 | $ 1,481,135,000 |
Restricted Cash Pledged | 0 | 28,316,000 |
SCUSA | Revolving Credit Facility | Warehouse line, due June 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 2,201,511,000 | |
Effective Rate | 0.98% | |
Assets Pledged | $ 3,249,263,000 | |
Restricted Cash Pledged | 65,414,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due October 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 240,487,000 | |
Effective Rate | 2.02% | |
Assets Pledged | $ 299,195,000 | |
Restricted Cash Pledged | 17,143,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due November 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 175,000,000 | $ 175,000,000 |
Effective Rate | 1.76% | 1.71% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SCUSA | Revolving Credit Facility | Warehouse line, due November 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 250,000,000 | $ 250,000,000 |
Effective Rate | 1.76% | 1.71% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 2,501,000 | 2,500,000 |
SCUSA | Revolving Credit Facility | Warehouse line, due March 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 510,899,000 | |
Effective Rate | 0.94% | |
Assets Pledged | $ 752,083,000 | |
Restricted Cash Pledged | 22,528,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due July 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 874,320,000 | |
Effective Rate | 1.18% | |
Assets Pledged | $ 1,006,388,000 | |
Restricted Cash Pledged | 34,531,000 | |
SCUSA | Revolving Credit Facility | Warehouse line, due July 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,608,643,000 | |
Effective Rate | 1.17% | |
Assets Pledged | $ 2,481,681,000 | |
Restricted Cash Pledged | 30,818,000 | |
SCUSA | Revolving Credit Facility | Repurchase facility, due December 2015 | ||
Debt Instrument [Line Items] | ||
Balance | $ 851,929,000 | |
Effective Rate | 1.87% | |
Assets Pledged | $ 1,966,000 | |
Restricted Cash Pledged | $ 37,844,000 | |
SCUSA | Revolving Credit Facility | Repurchase facility, due December 2015 | Minimum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 30 days | |
SCUSA | Revolving Credit Facility | Repurchase facility, due December 2015 | Maximum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 90 days | |
SCUSA | Revolving Credit Facility | Repurchase facility, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 923,225,000 | |
Effective Rate | 1.63% | |
Assets Pledged | $ 0 | |
Restricted Cash Pledged | $ 34,184,000 | |
SCUSA | Revolving Credit Facility | Repurchase facility, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 30 days | |
SCUSA | Revolving Credit Facility | Repurchase facility, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 90 days | |
SCUSA | Revolving Credit Facility | Line of credit with related party, due December 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 500,000,000 | $ 500,000,000 |
Effective Rate | 2.51% | 2.46% |
Assets Pledged | $ 0 | $ 1,340,000 |
Restricted Cash Pledged | 0 | 0 |
SCUSA | Revolving Credit Facility | Line of credit with related party, due December 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,750,000,000 | $ 1,750,000,000 |
Effective Rate | 2.48% | 2.33% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SCUSA | Revolving Credit Facility | Line of credit with related party, due December 2018 | ||
Debt Instrument [Line Items] | ||
Balance | $ 975,000,000 | $ 1,140,000,000 |
Effective Rate | 2.89% | 2.85% |
Assets Pledged | $ 0 | $ 9,701,000 |
Restricted Cash Pledged | 0 | 0 |
SCUSA | Revolving Credit Facility | Warehouse Line due December 2016 | ||
Debt Instrument [Line Items] | ||
Commitment amount | 500,000,000 | |
SCUSA | Revolving Credit Facility | Warehouse Line due on Various Dates - June 2017 | ||
Debt Instrument [Line Items] | ||
Remaining commitment amount | 2,000,000,000 | |
SCUSA | Revolving Credit Facility | Line of credit with related party | ||
Debt Instrument [Line Items] | ||
Unsecured debt | $ 2,500,000,000 | $ 2,200,000,000 |
BORROWINGS (Secured Structured
BORROWINGS (Secured Structured Financings) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Initial Note Amounts Issued | $ 102,900 | $ 58,800 |
SCUSA | ||
Debt Instrument [Line Items] | ||
Balance | 20,055,450 | 17,806,203 |
Initial Note Amounts Issued | 34,038,521 | 35,182,041 |
Collateral | 26,683,832 | 23,460,239 |
Restricted Cash | $ 1,562,497 | $ 1,465,085 |
SCUSA | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.88% | 0.89% |
SCUSA | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 2.29% | 2.80% |
SCUSA | SCUSA public securitizations, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 13,377,986 | $ 11,523,729 |
Initial Note Amounts Issued | 23,863,842 | 26,682,930 |
Collateral | 16,852,670 | 14,345,242 |
Restricted Cash | $ 1,194,363 | $ 1,184,047 |
SCUSA | SCUSA public securitizations, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.89% | 0.89% |
SCUSA | SCUSA public securitizations, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 2.29% | 2.80% |
SCUSA | SCUSA privately issued amortizing notes, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 6,677,464 | $ 6,282,474 |
Initial Note Amounts Issued | 10,174,679 | 8,499,111 |
Collateral | 9,831,162 | 9,114,997 |
Restricted Cash | $ 368,134 | $ 281,038 |
SCUSA | SCUSA privately issued amortizing notes, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.88% | 1.05% |
SCUSA | SCUSA privately issued amortizing notes, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 1.62% | 1.85% |
DERIVATIVES (As Restated) (Narr
DERIVATIVES (As Restated) (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Credit Risk Contingent Features | ||
Fair value of derivatives with credit risk contingent feature associated with credit ratings | $ 32,500,000 | |
Fair value of derivatives with credit risk contingent features | 145,200,000 | $ 133,200,000 |
Collateral posted | 120,600,000 | $ 127,600,000 |
Cash Flow Hedges | ||
Cash flow hedge gain (loss) to be reclassified within next twelve months | (1,400,000) | |
One notch downgrade | ||
Credit Risk Contingent Features | ||
Additional collateral required | 3,500,000 | |
Two notch downgrade | ||
Credit Risk Contingent Features | ||
Additional collateral required | $ 5,500,000 |
DERIVATIVES (As Restated) (Deri
DERIVATIVES (As Restated) (Derivatives Designated in Hedge Relationships) (Details) - Designated as hedging instrument - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Notional Amount | $ 11,085,813 | $ 10,361,333 |
Asset, Total | 3,708 | 10,562 |
Liability, Total | $ 77,623 | $ 22,311 |
Weighted Average Receive Rate | 0.23% | 0.19% |
Weighted Average Pay Rate | 1.13% | 1.14% |
Weighted Average Life (Years) | 3 years 1 month 17 days | 3 years 18 days |
Fair value hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 16,757 | $ 18,230 |
Asset, Cross-currency swaps | 3,555 | 2,711 |
Liability, Cross-currency swaps | $ 309 | $ 980 |
Weighted Average Receive Rate | 4.76% | 4.76% |
Weighted Average Pay Rate | 4.75% | 4.75% |
Weighted Average Life (Years) | 4 months 8 days | 1 year 1 month 9 days |
Fair value hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 318,000 | $ 257,000 |
Asset, Interest rate swaps | 153 | 232 |
Liability, Interest rate swaps | $ 6,136 | $ 779 |
Weighted Average Receive Rate | 1.00% | 0.90% |
Weighted Average Pay Rate | 2.29% | 2.38% |
Weighted Average Life (Years) | 3 years 9 months | 4 years 3 months 29 days |
Cash flow hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,751,056 | $ 10,086,103 |
Asset, Pay fixed — receive floating interest rate swaps | 0 | 7,619 |
Liability, Pay fixed — receive floating interest rate swaps | $ 71,178 | $ 20,552 |
Weighted Average Receive Rate | 0.20% | 0.17% |
Weighted Average Pay Rate | 1.09% | 1.11% |
Weighted Average Life (Years) | 3 years 1 month 15 days | 3 years 8 days |
DERIVATIVES (As Restated) (Othe
DERIVATIVES (As Restated) (Other Derivatives) (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Fair value of warrants | $ 425,537,000 | $ 402,775,000 | |
Warrant | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Fair value of warrants | 0 | ||
Total return settlement | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 1,404,726,000 | 1,404,726,000 | |
Asset derivatives Fair value | 0 | 0 | |
Liability derivatives Fair value | 53,322,000 | 48,893,000 | |
Not designated as hedging instrument | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 47,141,515,000 | 40,020,177,000 | |
Asset derivatives Fair value | 420,716,000 | 376,608,000 | |
Liability derivatives Fair value | 450,848,000 | 401,573,000 | |
Not designated as hedging instrument | Other | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 822,534,000 | 646,321,000 | |
Asset derivatives Fair value | 8,635,000 | 6,543,000 | |
Liability derivatives Fair value | 11,931,000 | 9,914,000 | |
Not designated as hedging instrument | Foreign exchange contracts | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 2,136,160,000 | 1,152,125,000 | |
Asset derivatives Fair value | 29,413,000 | 20,033,000 | |
Liability derivatives Fair value | 28,743,000 | 17,390,000 | |
Not designated as hedging instrument | Interest rate swap agreements | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 2,833,000,000 | 3,231,000,000 | |
Asset derivatives Fair value | 0 | 535,000 | |
Liability derivatives Fair value | 12,743,000 | 12,743,000 | |
Not designated as hedging instrument | Interest rate cap agreements | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 9,211,000,000 | 7,541,385,000 | |
Asset derivatives Fair value | 24,451,000 | 49,762,000 | |
Liability derivatives Fair value | 0 | 0 | |
Not designated as hedging instrument | Options for interest rate cap agreements | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 9,211,000,000 | 7,541,385,000 | |
Asset derivatives Fair value | 0 | 0 | |
Liability derivatives Fair value | 24,462,000 | 49,806,000 | |
Not designated as hedging instrument | Mortgage banking derivatives | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 1,165,582,000 | 960,770,000 | |
Asset derivatives Fair value | 9,164,000 | 10,495,000 | |
Liability derivatives Fair value | 6,599,000 | 9,872,000 | |
Not designated as hedging instrument | Mortgage banking derivatives | Forward commitments to sell loans | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 482,207,000 | 328,757,000 | |
Asset derivatives Fair value | 0 | 0 | |
Liability derivatives Fair value | 4,200,000 | 2,424,000 | |
Not designated as hedging instrument | Mortgage banking derivatives | Interest rate lock commitments | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 248,375,000 | 163,013,000 | |
Asset derivatives Fair value | 5,480,000 | 3,063,000 | |
Liability derivatives Fair value | 0 | 0 | |
Not designated as hedging instrument | Mortgage banking derivatives | Mortgage servicing | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 435,000,000 | 469,000,000 | |
Asset derivatives Fair value | 3,684,000 | 7,432,000 | |
Liability derivatives Fair value | 2,399,000 | 7,448,000 | |
Not designated as hedging instrument | Customer related derivatives | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 20,357,513,000 | 17,542,465,000 | |
Asset derivatives Fair value | 349,053,000 | 289,240,000 | |
Liability derivatives Fair value | 313,048,000 | 252,955,000 | |
Not designated as hedging instrument | Customer related derivatives | Swaps receive fixed | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 8,624,004,000 | 7,927,522,000 | |
Asset derivatives Fair value | 300,848,000 | 213,415,000 | |
Liability derivatives Fair value | 1,194,000 | 4,343,000 | |
Not designated as hedging instrument | Customer related derivatives | Swaps pay fixed | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 8,749,748,000 | 7,944,247,000 | |
Asset derivatives Fair value | 3,306,000 | 13,361,000 | |
Liability derivatives Fair value | 267,923,000 | 186,732,000 | |
Not designated as hedging instrument | Customer related derivatives | Other | |||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | |||
Notional | 2,983,761,000 | 1,670,696,000 | |
Asset derivatives Fair value | 44,899,000 | 62,464,000 | |
Liability derivatives Fair value | $ 43,931,000 | $ 61,880,000 | |
SCUSA | Third party | |||
Derivative [Line Items] | |||
Proceeds from issuance of debt pledged with certain bonds | $ 251,000,000 |
DERIVATIVES (As Restated) (Inco
DERIVATIVES (As Restated) (Income Statement Effect) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cross-currency swaps | Miscellaneous income | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | $ 110 | $ 774 | ||
Interest rate swaps | Miscellaneous income | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | $ (3,985) | $ 1,731 | (5,437) | 978 |
Interest rate swaps | Net interest income | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | (1,775) | (13,469) | (9,957) | (40,936) |
Forward commitments to sell loans | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | (10,711) | 2,490 | (1,776) | (2,762) |
Interest rate lock commitments | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | 3,595 | (2,027) | 2,417 | 1,518 |
Mortgage servicing | Mortgage banking income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | 11,736 | 1,032 | 1,302 | (4,100) |
Customer related derivatives | Miscellaneous income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | (1,251) | 3,280 | (179) | 6,941 |
Foreign exchange | Miscellaneous income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | (109) | 1,794 | (1,973) | 1,302 |
SCUSA derivatives | Miscellaneous income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | (3,746) | 9,130 | 711 | 27,269 |
SCUSA derivatives | Net interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | 21,093 | (971) | 58,453 | (4,951) |
SCUSA derivatives | Other administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | 3,836 | (1,290) | (10,197) | (4,447) |
Other | Miscellaneous income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on all derivatives | $ (1,649) | $ 580 | $ (2,107) | $ (729) |
DERIVATIVES (As Restated) (Offs
DERIVATIVES (As Restated) (Offsetting of Financial Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 418,944 | $ 384,107 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 9,015 | 21,109 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 409,929 | 362,998 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 8,027 | 10,020 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 45,306 | 5,940 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 356,596 | 347,038 |
Total derivatives not subject to a master netting arrangement or similar arrangement(2) | 5,480 | 3,063 |
Gross Amounts of Recognized Assets, Total Derivative Assets | 424,424 | 387,170 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet, Total Derivative Assets | 415,409 | 366,061 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Net Amount, Total Derivative Assets | 362,076 | 350,101 |
Gross Amounts of Recognized Assets, Total Financial Assets | 424,424 | 387,170 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Financial Assets | 9,015 | 21,109 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet, Total Financial Assets | 415,409 | 366,061 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments, Total Financial Assets | 8,027 | 10,020 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received, Total Financial Assets | 45,306 | 5,940 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Net Amount, Total Financial Assets | 362,076 | 350,101 |
Other derivative activities | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 415,236 | 373,545 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 9,015 | 21,109 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 406,221 | 352,436 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 8,027 | 10,020 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 45,306 | 5,940 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 352,888 | 336,476 |
Fair value hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 3,708 | 2,943 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 3,708 | 2,943 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 3,708 | 2,943 |
Cash flow hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 0 | 7,619 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 0 | 7,619 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 0 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | $ 0 | $ 7,619 |
DERIVATIVES (As Restated) (Of90
DERIVATIVES (As Restated) (Offsetting of Financial Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 474,781 | $ 373,174 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 102,934 | 21,109 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 371,847 | 352,065 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 8,130 | 56,724 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 311,046 | 220,489 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 52,671 | 74,852 |
Gross Amounts of Recognized Liabilities, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 53,690 | 50,710 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 53,690 | 50,710 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 0 | 1,736 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 53,690 | 48,974 |
Gross Amounts of Recognized Liabilities, Total Derivative Liabilities | 528,471 | 423,884 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Derivative Liabilities | 102,934 | 21,109 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet, Total Derivative Liabilities | 425,537 | 402,775 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 311,046 | 222,225 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Derivatives Liabilities | 106,361 | 123,826 |
Gross Amounts of Recognized Liabilities, Total Financial Liabilities | 528,471 | 423,884 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Financial Liabilities | 102,934 | 21,109 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet, Total Financial Liabilities | 425,537 | 402,775 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments, Total Financial Liabilities | 8,130 | 56,724 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Pledged, Total Financial Liabilities | 311,046 | 222,225 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Financial Liabilities | 106,361 | 123,826 |
Other derivative activities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 397,158 | 350,863 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 102,934 | 21,109 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 294,224 | 329,754 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 8,016 | 49,318 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 218,906 | 198,103 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 67,302 | 82,333 |
Fair value hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 6,445 | 1,759 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 6,445 | 1,759 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 114 | 65 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 12,703 | 5,589 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | (6,372) | (3,895) |
Cash flow hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 71,178 | 20,552 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 71,178 | 20,552 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 0 | 7,341 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 79,437 | 16,797 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | $ (8,259) | $ (3,586) |
INCOME TAXES (As Restated) (Det
INCOME TAXES (As Restated) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 60 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2007USD ($)transaction | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 201,369 | $ 208,303 | $ 363,352 | $ 1,502,375 | |
Effective tax rate | 61.50% | 37.00% | 40.60% | 36.10% | |
Number of financing transactions related to lawsuit | transaction | 2 | ||||
Transaction amount related to lawsuit seeking refund of taxes paid | $ 1,200,000 | ||||
Foreign taxes paid | 264,000 | ||||
Disallowed interest expense and transaction costs deductions | 74,600 | ||||
Penalties and interest expense | $ 92,500 | ||||
Tax reserve | $ 230,100 | $ 230,100 | |||
Increase in reserve position | 104,200 | ||||
Reasonably possible decrease in reserve for uncertain tax positions | 230,100 | 230,100 | |||
Reasonably possible increase in reserve for uncertain tax positions | $ 201,900 | $ 201,900 |
ACCUMULATED OTHER COMPREHENSI92
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Net of Tax [Roll Forward] | ||||
Change in accumulated gains (losses) on cash flow hedge derivative financial instruments, pretax activity | $ (45,805) | $ 13,667 | $ (67,051) | $ (3,453) |
Change in accumulated gains (losses) on cash flow hedge derivative financial instruments, tax effect | 16,975 | (5,018) | 25,226 | 1,259 |
Change in accumulated gains (losses) on cash flow hedge derivative financial instruments, net activity | (28,830) | 8,649 | (41,825) | (2,194) |
Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments, pretax activity | 1,774 | 13,797 | 9,957 | 41,264 |
Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments, tax effect | (657) | (5,065) | (3,746) | (15,048) |
Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments, net activity | 1,117 | 8,732 | 6,211 | 26,216 |
Net unrealized gains (losses) on cash flow hedge derivative financial instruments, pretax activity | (44,031) | 27,464 | (57,094) | 37,811 |
Net unrealized gains (losses) on cash flow hedge derivative financial instruments, tax effect | 16,318 | (10,083) | 21,480 | (13,789) |
Net unrealized gains (losses) on cash flow hedge derivative financial instruments, net activity | (27,713) | 17,381 | (35,614) | 24,022 |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax [Roll Forward] | ||||
Total accumulated other comprehensive income/(loss), net unrealized gains/(losses) on investment securities available-for-sale, beginning balance | (74,758) | (70,404) | (52,515) | (199,392) |
Change in unrealized gains/(losses) on investment securities available-for-sale, pretax activity | 135,217 | (28,911) | 119,553 | 2,623,062 |
Change in unrealized gains/(losses) on investment securities available-for-sale, tax effect | (52,711) | 11,294 | (47,692) | (1,028,228) |
Change in unrealized gains/(losses) on investment securities available-for-sale, net activity | 82,506 | (17,617) | 71,861 | 1,594,834 |
Reclassification adjustment for net gains (losses) included in net income on non-OTTI securities, pretax activity | 1,993 | (131) | (18,363) | (2,440,019) |
Reclassification adjustment for net gains (losses) included in net income on non-OTTI securities, tax effect | (777) | 51 | 7,325 | 956,476 |
Reclassification adjustment for net gains (losses) included in net income on non-OTTI securities, net activity | 1,216 | (80) | (11,038) | (1,483,543) |
Reclassification adjustment for net gains included in net income/(expense) on OTTI securities, pretax activity | 1,092 | |||
Reclassification adjustment for net gains included in net income/(expense) on OTTI securities, tax effect | (436) | |||
Reclassification adjustment for net gains included in net income/(expense) on OTTI securities, net activity | 656 | |||
Reclassification adjustment for net (gains)/losses included in net income, Pretax activity | 17,271 | |||
Reclassification adjustment for net (gains)/losses included in net income, Tax | 6,889 | |||
Reclassification adjustment for net (gains)/losses included in net income, Net Activity | 10,382 | |||
Net unrealized gains/(losses) on investment securities available-for-sale, pretax activity | 137,210 | (29,042) | 102,282 | 183,043 |
Net unrealized gains/(losses) on investment securities available-for-sale, tax effect | (53,488) | 11,345 | (40,803) | (71,752) |
Net unrealized gains/(losses) on investment securities available-for-sale, net activity | 83,722 | (17,697) | 61,479 | 111,291 |
Total accumulated other comprehensive income/(loss), net unrealized gains/(losses) on investment securities available-for-sale, ending balance | 8,964 | (88,101) | 8,964 | (88,101) |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ||||
Pension and post-retirement actuarial gain/(loss), pretax activity | 1,018 | 447 | 3,054 | 1,341 |
Pension and post-retirement actuarial gain/(loss), tax effect | (398) | (175) | (1,382) | (234) |
Pension and post-retirement actuarial gain/(loss), net activity | 620 | 272 | 1,672 | 1,107 |
Total accumulated other comprehensive income/(loss), beginning balance | (125,502) | (117,904) | (96,410) | (254,368) |
Total other comprehensive income/(loss), pretax activity | 94,197 | (1,131) | 48,242 | 222,195 |
Total other comprehensive income/(loss), tax effect | (37,568) | 1,087 | (20,705) | (85,775) |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | 56,629 | (44) | 27,537 | 136,420 |
Total accumulated other comprehensive income/(loss), ending balance | (68,873) | (117,948) | (68,873) | (117,948) |
Net unrealized (losses)/gains on cash flow hedge derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ||||
Total accumulated other comprehensive income/(loss), beginning balance | (22,161) | (32,782) | (14,260) | (39,423) |
Total accumulated other comprehensive income/(loss), ending balance | (49,874) | (15,401) | (49,874) | (15,401) |
Pension and post-retirement actuarial gain/(loss) | ||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax [Roll Forward] | ||||
Total accumulated other comprehensive income/(loss), beginning balance | (28,583) | (14,718) | (29,635) | (15,553) |
Total accumulated other comprehensive income/(loss), ending balance | $ (27,963) | $ (14,446) | $ (27,963) | $ (14,446) |
COMMITMENTS, CONTINGENCIES, A93
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Other Commitments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | ||
Total commitments | $ 32,594,192 | $ 30,839,426 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other commitments | 30,570,879 | 28,792,062 |
Unsecured revolving lines of credit | ||
Other Commitments [Line Items] | ||
Other commitments | 0 | 5 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Other commitments | 1,890,547 | 1,789,666 |
Letters of credit | 1,890,547 | 1,789,666 |
Recourse and credit enhancement exposure on sold loans | ||
Other Commitments [Line Items] | ||
Other commitments | 71,845 | 174,902 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Other commitments | $ 60,921 | $ 82,791 |
COMMITMENTS, CONTINGENCIES, A94
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Commitments to Extend Credit) (Details) - Commitments to extend credit - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | ||
One year or less | $ 5,563,216 | $ 5,968,468 |
Over 1 year to 3 years | 5,626,208 | 5,322,291 |
Over 3 years to 5 years | 12,254,421 | 10,810,213 |
Over 5 years | 7,127,034 | 6,691,090 |
Total | $ 30,570,879 | $ 28,792,062 |
COMMITMENTS, CONTINGENCIES, A95
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Letters of Credit) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Other Commitments [Line Items] | ||||||
Reserve for unfunded lending commitments | $ 137,641 | $ 137,641 | $ 132,641 | $ 149,641 | $ 170,274 | $ 220,000 |
Lines of credit outstanding | $ 102,900 | 58,800 | ||||
Letters of credit | ||||||
Other Commitments [Line Items] | ||||||
Commitments, weighted average term | 1 year 2 months 24 days | |||||
Reserve for unfunded lending commitments | $ 34,700 | 73,900 | ||||
One year or less | 1,312,652 | 1,250,124 | ||||
Over 1 year to 3 years | 246,126 | 285,108 | ||||
Over 3 years to 5 years | 310,476 | 248,209 | ||||
Over 5 years | 21,293 | 6,225 | ||||
Total | $ 1,890,547 | $ 1,789,666 |
COMMITMENTS, CONTINGENCIES, A96
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Loans Sold with Recourse and Commitments to Sell Loans) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | ||
Collateral posted | $ 120.6 | $ 127.6 |
Recourse and credit enhancement exposure on sold loans | ||
Other Commitments [Line Items] | ||
Retained credit risk, multifamily servicing | 8.1 | 40.7 |
Collateral posted | 0.9 | 0.9 |
Recourse and credit enhancement exposure on sold loans | Residential mortgages | ||
Other Commitments [Line Items] | ||
Loans sold with recourse, unpaid principal balance | 54.5 | 55.8 |
Loans sold with recourse, maximum exposure | 20.1 | 22.1 |
Recourse and credit enhancement exposure on sold loans | FNMA | Multi-family loans | ||
Other Commitments [Line Items] | ||
Loans sold with recourse, unpaid principal balance | $ 589.7 | 2,600 |
Loans sold with recourse, portion of first credit loss position retained, percent | 100.00% | |
Value of underlying collateral | $ 34.4 | $ 152.8 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Forward contracts maturity period (less than one year) | 1 year |
COMMITMENTS, CONTINGENCIES, A97
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Representation and Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Representation and Warranty Reserve [Roll Forward] | ||||
Beginning Balance | $ 23,008 | $ 40,862 | $ 24,266 | $ 54,836 |
Changes in Estimate | 655 | 10,894 | 935 | 3,315 |
Claims | (429) | (794) | (1,967) | (7,189) |
Ending Balance | $ 23,234 | $ 50,962 | $ 23,234 | $ 50,962 |
COMMITMENTS, CONTINGENCIES, A98
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (SC Commitments) (Details) - USD ($) | Feb. 25, 2015 | Sep. 30, 2015 | Aug. 01, 2015 | Jul. 31, 2015 | Jun. 29, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Long-term Purchase Commitment [Line Items] | |||||||
Purchase commitment, repurchase rate (up to) (as a percent) | 9.99% | ||||||
Purchase commitment, exercise of repurchase rights, retainer rate (up to) (as a percent) | 20.00% | ||||||
Loan commitment, termination notice period | 120 days | ||||||
Loan purchase commitment, contract termination, effective period | 90 days | ||||||
Guarantees, fair value | $ 3,900,000 | ||||||
Minimum sales commitment, charged off loan receivables | $ 275,000,000 | $ 200,000,000 | |||||
Minimum sales commitment, loans receivable, written off, remaining | 203,400,000 | ||||||
Mr. Dundon | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Contingent liability | $ 115,100,000 | ||||||
Civil fine | Violation of service members civil relief act | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Civil fine, amount | $ 55,000 | ||||||
Lost equity for each repossession | Violation of service members civil relief act | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Civil fine, amount | 10,000 | ||||||
Sought to collect repossession-related fees | Violation of service members civil relief act | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Civil fine, amount | 5,000 | ||||||
Minimum | Civil fine to affected service members | Violation of service members civil relief act | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Civil fine, amount | $ 9,400,000 | ||||||
Maximum | Citizens Bank of Pennsylvania | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Loss-sharing payment percentage | 0.50% | ||||||
Maximum | SC | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Total commitments | $ 350,000,000 | ||||||
Loan purchase commitments | SC | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Loan purchase commitment, cancellation period | 90 days | ||||||
Loan purchase commitments | Minimum | Citizens Bank of Pennsylvania | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Loan purchase commitment amount (lesser of) | $ 50,000,000 | $ 250,000,000 | |||||
Loan purchase commitments | Minimum | SC | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Loan purchase commitment amount (lesser of) | $ 30,000,000 | ||||||
Loan purchase commitment, as a percentage of lending entity's near-prime originations | 50.00% | ||||||
Loan purchase commitments | Maximum | Citizens Bank of Pennsylvania | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Loan purchase commitment amount (lesser of) | $ 200,000,000 | $ 600,000,000 | |||||
Forward commitments to sell loans | Obligation to repurchase receivables sold | SC | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Total commitments | $ 15,700,000 | $ 7,700,000 | |||||
Forward commitments to sell loans | Maximum | SC | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Total commitments | $ 300,000,000 |
COMMITMENTS, CONTINGENCIES, A99
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (As Restated) (Other Regulatory and Governmental Matters) (Details) $ in Millions | Apr. 17, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2013USD ($) | Jun. 16, 2015actionable_item | Feb. 28, 2013mortgage_servicer | Jan. 24, 2013mortgage_servicer | Jan. 07, 2013mortgage_servicer | Apr. 13, 2011mortgage_servicer |
Foreclosure matters | ||||||||
Loss Contingencies [Line Items] | ||||||||
Consent order, number of mortgage servicers | mortgage_servicer | 14 | |||||||
Number of mortgage servicing companies | mortgage_servicer | 10 | 12 | 9 | |||||
Remediation fund amount | $ 6.2 | |||||||
Remediation fund engaging period | 2 years | |||||||
Principal engaging in mortgage modifications | $ 9.9 | |||||||
Mortgage loan amount submitted for credit from OCC | $ 74.1 | |||||||
Litigation settlement incurred by the Bank as percentage of total settlement amount | 0.17% | |||||||
Litigation settlement amount accumulated by different banks | $ 9,300 | |||||||
Litigation settlement gross amount | 16.1 | |||||||
Number of actionable items | actionable_item | 9 | |||||||
Identity theft protection product matter | ||||||||
Loss Contingencies [Line Items] | ||||||||
Identity theft protection payments returned to customers | $ 6 | (37.6) | ||||||
Pending gain (loss) related to litigation settlement | $ (4.7) |
FAIR VALUE (As Restated) (Gener
FAIR VALUE (As Restated) (General) (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 22,274,065 | $ 18,333,808 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 10,528 | 10,343 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 20,117,622 | 16,061,794 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 2,145,915 | $ 2,261,671 |
Percentage of level 3 assets to total assets held at fair value | 9.60% | |
Percentage of level 3 assets to total assets | 1.60% |
FAIR VALUE (As Restated) (Fair
FAIR VALUE (As Restated) (Fair Value Measurements, Recurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Available-for-sale investment securities | $ 21,051,184 | $ 15,908,078 |
Trading securities | 0 | 833,936 |
Retail installment contracts held for investment | 374,200 | 845,900 |
Mortgage servicing rights | 143,535 | 145,047 |
Derivatives | 415,409 | 366,061 |
Financial liabilities: | ||
Derivatives | 425,537 | 402,775 |
US Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 3,209,863 | 1,695,767 |
Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,563,099 | 2,182,401 |
Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 1,944,651 | 2,720,403 |
Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 10,528 | 10,343 |
State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 761,322 | 1,823,462 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Available-for-sale investment securities | 10,528 | 10,343 |
Trading securities | 0 | |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Available-for-sale investment securities | 19,417,929 | 14,630,092 |
Trading securities | 833,936 | |
Loans held-for-sale | 3,041,325 | 260,251 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 418,929 | 384,100 |
Financial liabilities: | ||
Derivatives | 474,731 | 374,636 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Available-for-sale investment securities | 1,622,727 | 1,267,643 |
Trading securities | 0 | |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 143,535 | 145,047 |
Derivatives | 5,495 | 3,070 |
Financial liabilities: | ||
Derivatives | 53,740 | 49,248 |
Recurring | ||
Financial assets: | ||
Available-for-sale investment securities | 21,051,184 | 15,908,078 |
Trading securities | 833,936 | |
Retail installment contracts held for investment | 374,158 | 845,911 |
Loans held-for-sale | 280,764 | 213,666 |
Mortgage servicing rights | 143,535 | 145,047 |
Total financial assets | 22,274,065 | 18,333,808 |
Financial liabilities: | ||
Total financial liabilities | 528,471 | 423,884 |
Recurring | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 5,480 | 3,063 |
Recurring | Mortgage banking forward sell commitments | ||
Financial liabilities: | ||
Derivatives | 4,200 | 2,424 |
Recurring | Customer related | ||
Financial assets: | ||
Derivatives | 349,053 | 289,240 |
Financial liabilities: | ||
Derivatives | 313,048 | 252,955 |
Recurring | Total return swap | ||
Financial liabilities: | ||
Derivatives | 282 | 2,018 |
Recurring | Foreign exchange | ||
Financial assets: | ||
Derivatives | 29,413 | 20,033 |
Financial liabilities: | ||
Derivatives | 28,743 | 17,390 |
Recurring | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 3,684 | 7,432 |
Financial liabilities: | ||
Derivatives | 2,399 | 7,448 |
Recurring | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 535 | |
Financial liabilities: | ||
Derivatives | 12,743 | 12,743 |
Recurring | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 24,451 | 49,762 |
Recurring | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 24,462 | 49,806 |
Recurring | Total return settlement | ||
Financial liabilities: | ||
Derivatives | 53,322 | 48,893 |
Recurring | Other | ||
Financial assets: | ||
Derivatives | 8,635 | 6,543 |
Financial liabilities: | ||
Derivatives | 11,649 | 7,896 |
Recurring | Fair value | ||
Financial assets: | ||
Derivatives | 3,708 | 2,943 |
Financial liabilities: | ||
Derivatives | 6,445 | 1,759 |
Recurring | Cash flow | ||
Financial assets: | ||
Derivatives | 7,619 | |
Financial liabilities: | ||
Derivatives | 71,178 | 20,552 |
Recurring | US Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 3,209,863 | 1,695,767 |
Recurring | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,563,099 | 2,182,401 |
Recurring | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 1,944,651 | 2,720,403 |
Recurring | Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 10,528 | 10,343 |
Recurring | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 761,322 | 1,823,462 |
Recurring | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 13,561,721 | 7,475,702 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Available-for-sale investment securities | 10,528 | 10,343 |
Trading securities | 0 | |
Retail installment contracts held for investment | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Total financial assets | 10,528 | 10,343 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage banking forward sell commitments | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Customer related | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total return swap | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total return settlement | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash flow | ||
Financial assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 10,528 | 10,343 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Available-for-sale investment securities | 19,417,929 | 14,630,092 |
Trading securities | 833,936 | |
Retail installment contracts held for investment | 0 | 0 |
Loans held-for-sale | 280,764 | 213,666 |
Mortgage servicing rights | 0 | 0 |
Total financial assets | 20,117,622 | 16,061,794 |
Financial liabilities: | ||
Total financial liabilities | 474,731 | 374,636 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage banking forward sell commitments | ||
Financial liabilities: | ||
Derivatives | 4,200 | 2,424 |
Recurring | Significant Other Observable Inputs (Level 2) | Customer related | ||
Financial assets: | ||
Derivatives | 349,053 | 289,240 |
Financial liabilities: | ||
Derivatives | 313,048 | 252,955 |
Recurring | Significant Other Observable Inputs (Level 2) | Total return swap | ||
Financial liabilities: | ||
Derivatives | 0 | 1,736 |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange | ||
Financial assets: | ||
Derivatives | 29,413 | 20,033 |
Financial liabilities: | ||
Derivatives | 28,743 | 17,390 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 3,684 | 7,432 |
Financial liabilities: | ||
Derivatives | 2,399 | 7,448 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 535 | |
Financial liabilities: | ||
Derivatives | 12,743 | 12,743 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 24,451 | 49,762 |
Recurring | Significant Other Observable Inputs (Level 2) | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 24,462 | 49,806 |
Recurring | Significant Other Observable Inputs (Level 2) | Total return settlement | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Other | ||
Financial assets: | ||
Derivatives | 8,620 | 6,536 |
Financial liabilities: | ||
Derivatives | 11,513 | 7,823 |
Recurring | Significant Other Observable Inputs (Level 2) | Fair value | ||
Financial assets: | ||
Derivatives | 3,708 | 2,943 |
Financial liabilities: | ||
Derivatives | 6,445 | 1,759 |
Recurring | Significant Other Observable Inputs (Level 2) | Cash flow | ||
Financial assets: | ||
Derivatives | 7,619 | |
Financial liabilities: | ||
Derivatives | 71,178 | 20,552 |
Recurring | Significant Other Observable Inputs (Level 2) | US Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 3,209,863 | 1,695,767 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,563,099 | 2,182,401 |
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 321,924 | 1,452,760 |
Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 761,322 | 1,823,462 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 13,561,721 | 7,475,702 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Available-for-sale investment securities | 1,622,727 | 1,267,643 |
Trading securities | 0 | |
Retail installment contracts held for investment | 374,158 | 845,911 |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 143,535 | 145,047 |
Total financial assets | 2,145,915 | 2,261,671 |
Financial liabilities: | ||
Total financial liabilities | 53,740 | 49,248 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 5,480 | 3,063 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage banking forward sell commitments | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Customer related | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Total return swap | ||
Financial liabilities: | ||
Derivatives | 282 | 282 |
Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Total return settlement | ||
Financial liabilities: | ||
Derivatives | 53,322 | 48,893 |
Recurring | Significant Unobservable Inputs (Level 3) | Other | ||
Financial assets: | ||
Derivatives | 15 | 7 |
Financial liabilities: | ||
Derivatives | 136 | 73 |
Recurring | Significant Unobservable Inputs (Level 3) | Fair value | ||
Financial assets: | ||
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Cash flow | ||
Financial assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | US Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 1,622,727 | 1,267,643 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | $ 0 | $ 0 |
FAIR VALUE (As Restated) (Fa102
FAIR VALUE (As Restated) (Fair Value Measurements, Non-recurring) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held for investment | $ 374,200 | $ 374,200 | $ 845,900 | ||
Total carrying value of the loans | 4,062,699 | 4,062,699 | 2,519,217 | ||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreclosed assets | 21,908 | 21,908 | 45,599 | ||
Vehicle inventory | 182,069 | 182,069 | 136,136 | ||
Fair value adjustment | (3,362) | $ (12,993) | (2,946) | $ (18,171) | |
Indefinite lived intangibles | 21,500 | ||||
Nonrecurring | Impaired loans held for investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held for investment | 89,698 | 89,698 | 168,917 | ||
Total carrying value of the loans | 54,300 | 54,300 | 100,200 | ||
Nonrecurring | Impaired loans held for investment | Provision for credit losses | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value adjustment | (2,888) | (12,826) | (1,445) | (17,652) | |
Nonrecurring | Foreclosed assets | Other administrative expense | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value adjustment | (474) | $ (167) | (1,501) | $ (519) | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreclosed assets | 0 | 0 | 0 | ||
Vehicle inventory | 0 | 0 | 0 | ||
Indefinite lived intangibles | 0 | ||||
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans held for investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held for investment | 0 | 0 | 0 | ||
Nonrecurring | Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreclosed assets | 21,908 | 21,908 | 45,599 | ||
Vehicle inventory | 182,069 | 182,069 | 136,136 | ||
Indefinite lived intangibles | 0 | ||||
Nonrecurring | Significant Other Observable Inputs (Level 2) | Impaired loans held for investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held for investment | 89,338 | 89,338 | 101,218 | ||
Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreclosed assets | 0 | 0 | 0 | ||
Vehicle inventory | 0 | 0 | 0 | ||
Indefinite lived intangibles | 21,500 | ||||
Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans held for investment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held for investment | $ 360 | $ 360 | $ 67,699 |
FAIR VALUE (As Restated) (Recon
FAIR VALUE (As Restated) (Reconciliation of Assets and Liabilities Using Level 3 Inputs) (Details) - Level 3 - Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 2,133,689 | $ 2,597,528 | $ 2,212,423 | $ 144,506 |
Gains (Losses) in other comprehensive income | (5,307) | (849) | (8,961) | 1,021 |
Gains/(losses) in earnings | 33,164 | 110,043 | 212,456 | 458,294 |
Additions/Issuances | 317,335 | 85,621 | 927,259 | 2,062,333 |
Settlements | (386,706) | (504,070) | (1,251,002) | (1,549,341) |
Transfers into level 3 | 1,171,460 | |||
Balance at end of period | 2,092,175 | 2,288,273 | 2,092,175 | 2,288,273 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 29,569 | 112,070 | 210,039 | 456,776 |
Investments Available-for-Sale | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 1,539,483 | 1,243,872 | 1,267,643 | 52,940 |
Gains (Losses) in other comprehensive income | (5,307) | (849) | (8,961) | 1,021 |
Gains/(losses) in earnings | 0 | 0 | 0 | 0 |
Additions/Issuances | 311,540 | 69,543 | 910,135 | 171,869 |
Settlements | (222,989) | (138,107) | (546,090) | (222,831) |
Transfers into level 3 | 1,171,460 | |||
Balance at end of period | 1,622,727 | 1,174,459 | 1,622,727 | 1,174,459 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 0 | 0 | 0 | 0 |
Retail Installment Contracts Held for Investment | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 494,651 | 1,273,072 | 845,911 | 0 |
Gains (Losses) in other comprehensive income | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | 39,296 | 116,177 | 219,837 | 475,607 |
Additions/Issuances | 0 | 0 | 0 | 1,870,383 |
Settlements | (159,789) | (362,737) | (691,590) | (1,319,478) |
Transfers into level 3 | 0 | |||
Balance at end of period | 374,158 | 1,026,512 | 374,158 | 1,026,512 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 39,296 | 116,177 | 219,837 | 475,607 |
MSRs | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 157,147 | 124,118 | 145,047 | 141,787 |
Gains (Losses) in other comprehensive income | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | (13,472) | (2,726) | 749 | (14,078) |
Additions/Issuances | 5,795 | 16,078 | 17,124 | 20,081 |
Settlements | (5,935) | (5,679) | (19,385) | (15,999) |
Transfers into level 3 | 0 | |||
Balance at end of period | 143,535 | 131,791 | 143,535 | 131,791 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | (13,472) | (2,726) | 749 | (14,078) |
Derivatives | ||||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | (57,592) | (43,534) | (46,178) | (50,221) |
Gains (Losses) in other comprehensive income | 0 | 0 | 0 | 0 |
Gains/(losses) in earnings | 7,340 | (3,408) | (8,130) | (3,235) |
Additions/Issuances | 0 | 0 | 0 | 0 |
Settlements | 2,007 | 2,453 | 6,063 | 8,967 |
Transfers into level 3 | 0 | |||
Balance at end of period | (48,245) | (44,489) | (48,245) | (44,489) |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | $ 3,745 | $ (1,381) | $ (10,547) | $ (4,753) |
FAIR VALUE (As Restated) (Sensi
FAIR VALUE (As Restated) (Sensitivity Analysis of Fair Value, Mortgage Servicing Rights) (Details) - MSRs $ in Millions | Sep. 30, 2015USD ($) |
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] | |
Sensitivity analysis of fair value, impact of 10 percent adverse change in prepayment speed | $ (5.3) |
Sensitivity analysis of fair value, impact of 20 percent adverse change in prepayment speed | (10.1) |
Sensitivity analysis of fair value, impact of 10 percent adverse change in discount rate | (5) |
Sensitivity analysis of fair value, impact of 20 percent adverse change in discount rate | $ (9.5) |
FAIR VALUE (As Restated) (Quant
FAIR VALUE (As Restated) (Quantitative Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Financial Assets: | ||
Available-for-sale at fair value | $ 21,051,184 | $ 15,908,078 |
Retail installment contracts held for investment | 374,200 | 845,900 |
Mortgage servicing rights | 143,535 | 145,047 |
Derivative assets at fair value | 415,409 | 366,061 |
Unobservable Inputs | ||
Derivatives | 425,537 | 402,775 |
Level 3 | ||
Financial Assets: | ||
Available-for-sale at fair value | 1,622,727 | 1,267,643 |
Mortgage servicing rights | 143,535 | 145,047 |
Derivative assets at fair value | 5,495 | 3,070 |
Unobservable Inputs | ||
Derivatives | 53,740 | 49,248 |
Recurring | ||
Financial Assets: | ||
Available-for-sale at fair value | 21,051,184 | 15,908,078 |
Retail installment contracts held for investment | 374,158 | 845,911 |
Mortgage servicing rights | 143,535 | 145,047 |
Recurring | Mortgage banking interest rate lock commitments | ||
Financial Assets: | ||
Derivative assets at fair value | 5,480 | 3,063 |
Recurring | Total return settlement | ||
Unobservable Inputs | ||
Derivatives | 53,322 | 48,893 |
Recurring | Level 3 | ||
Financial Assets: | ||
Available-for-sale at fair value | 1,622,727 | 1,267,643 |
Retail installment contracts held for investment | 374,158 | 845,911 |
Mortgage servicing rights | 143,535 | 145,047 |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | ||
Financial Assets: | ||
Derivative assets at fair value | 5,480 | 3,063 |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | ||
Financial Assets: | ||
Derivative assets at fair value | $ 5,480 | |
Unobservable Inputs | ||
Pull through percentage | 77.46% | |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
MSR value | 0.71% | |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
MSR value | 1.07% | |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
MSR value | 1.02% | |
Recurring | Level 3 | Total return settlement | ||
Unobservable Inputs | ||
Derivatives | $ 53,322 | $ 48,893 |
Recurring | Level 3 | Total return settlement | Discounted Cash Flow | ||
Unobservable Inputs | ||
Discount Rate | 8.72% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | ||
Financial Assets: | ||
Available-for-sale at fair value | $ 1,571,741 | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Discount Rate | 0.79% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Discount Rate | 2.01% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Discount Rate | 1.10% | |
Recurring | Level 3 | Sale-leaseback securities | Consensus Pricing | ||
Financial Assets: | ||
Available-for-sale at fair value | $ 50,986 | |
Unobservable Inputs | ||
Offered quotes | 130.15% | |
Recurring | Level 3 | Retail installment contracts held for investment | Discounted Cash Flow | ||
Financial Assets: | ||
Retail installment contracts held for investment | $ 374,158 | |
Unobservable Inputs | ||
ABS | 0.40% | |
Prepayment rate (CPR) | 11.00% | |
Recurring | Level 3 | Retail installment contracts held for investment | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Discount Rate | 5.95% | |
Recovery Rate | 25.00% | |
Recurring | Level 3 | Retail installment contracts held for investment | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Discount Rate | 12.00% | |
Recovery Rate | 43.00% | |
Recurring | Level 3 | Retail installment contracts held for investment | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Discount Rate | 10.63% | |
Recovery Rate | 31.67% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | ||
Financial Assets: | ||
Mortgage servicing rights | $ 143,535 | |
Unobservable Inputs | ||
Discount Rate | 9.90% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 0.01% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 36.43% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 10.38% |
FAIR VALUE (As Restated) (Fa106
FAIR VALUE (As Restated) (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Financial assets: | |||
Available-for-sale investment securities | $ 21,051,184 | $ 15,908,078 | |
Trading securities at fair value | 0 | 833,936 | |
Loans held for investment, net | 75,816,054 | 74,293,865 | |
Mortgage servicing rights | 143,535 | 145,047 | |
Derivatives | 415,409 | 366,061 | |
Financial liabilities: | |||
Derivatives | 425,537 | 402,775 | |
Restricted cash | [1] | 2,431,103 | 2,024,838 |
Level 1 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 4,619,782 | 2,201,783 | |
Available-for-sale investment securities | 10,528 | 10,343 | |
Trading securities at fair value | 0 | ||
Loans held for investment, net | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Restricted cash | 2,431,103 | 2,024,838 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 0 | 0 | |
Financial liabilities: | |||
Deposits | 47,377,317 | 45,162,698 | |
Borrowings and other debt obligations | 0 | 0 | |
Derivatives | 0 | 0 | |
Level 2 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 0 | 0 | |
Available-for-sale investment securities | 19,417,929 | 14,630,092 | |
Trading securities at fair value | 833,936 | ||
Loans held for investment, net | 89,338 | 101,218 | |
Loans held-for-sale | 3,041,325 | 260,251 | |
Restricted cash | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 418,929 | 384,100 | |
Financial liabilities: | |||
Deposits | 8,187,776 | 7,344,649 | |
Borrowings and other debt obligations | 39,499,046 | 30,355,610 | |
Derivatives | 474,731 | 374,636 | |
Level 3 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 0 | 0 | |
Available-for-sale investment securities | 1,622,727 | 1,267,643 | |
Trading securities at fair value | 0 | ||
Loans held for investment, net | 75,593,727 | 74,164,351 | |
Loans held-for-sale | 0 | 0 | |
Restricted cash | 0 | 0 | |
Mortgage servicing rights | 143,535 | 145,047 | |
Derivatives | 5,495 | 3,070 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Borrowings and other debt obligations | 9,879,184 | 9,792,327 | |
Derivatives | 53,740 | 49,248 | |
Carrying Value | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 4,619,782 | 2,201,783 | |
Available-for-sale investment securities | 21,051,184 | 15,908,078 | |
Trading securities at fair value | 833,936 | ||
Loans held for investment, net | 75,816,054 | 74,293,865 | |
Loans held-for-sale | 2,990,708 | 260,252 | |
Restricted cash | 2,431,103 | 2,024,838 | |
Mortgage servicing rights | 143,535 | 145,047 | |
Derivatives | 424,424 | 387,170 | |
Financial liabilities: | |||
Deposits | 55,543,255 | 52,474,007 | |
Borrowings and other debt obligations | 48,371,320 | 39,679,382 | |
Derivatives | 528,471 | 423,884 | |
Fair Value | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 4,619,782 | 2,201,783 | |
Available-for-sale investment securities | 21,051,184 | 15,908,078 | |
Trading securities at fair value | 833,936 | ||
Loans held for investment, net | 75,683,065 | 74,265,569 | |
Loans held-for-sale | 3,041,325 | 260,251 | |
Restricted cash | 2,431,103 | 2,024,838 | |
Mortgage servicing rights | 143,535 | 145,047 | |
Derivatives | 424,424 | 387,170 | |
Financial liabilities: | |||
Deposits | 55,565,093 | 52,507,347 | |
Borrowings and other debt obligations | 49,378,230 | 40,147,937 | |
Derivatives | $ 528,471 | $ 423,884 | |
[1] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. |
FAIR VALUE (As Restated) (Fa107
FAIR VALUE (As Restated) (Fair Value Option for Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 28, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | $ 143,535 | $ 143,535 | $ 145,047 | ||||
Residential MSRs | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | 143,535 | $ 131,791 | 143,535 | $ 131,791 | $ 145,047 | $ 141,787 | |
Change in fair value due to valuation assumptions | (13,500) | $ (2,700) | 700 | $ (14,100) | |||
Residential MSRs | MSRs | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Mortgage servicing rights | 143,500 | $ 143,500 | |||||
Loans held-for-sale | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Threshold period for discontinuing and reversing accrual of interest (more than) | 90 days | ||||||
Fair Value | |||||||
Loans held-for-sale | 280,764 | $ 280,764 | |||||
Nonaccrual loans | 0 | 0 | |||||
Aggregate Unpaid Principal Balance | |||||||
Loans held-for-sale | 273,846 | 273,846 | |||||
Nonaccrual loans | 0 | 0 | |||||
Difference | |||||||
Loans held-for-sale | 6,918 | 6,918 | |||||
Nonaccrual loans | 0 | 0 | |||||
Retail installment contracts held for investment | |||||||
Fair Value | |||||||
Retail installment contracts held for investment | 374,158 | 374,158 | |||||
Nonaccrual loans | 46,310 | 46,310 | |||||
Aggregate Unpaid Principal Balance | |||||||
Retail installment contracts held for investment | 496,200 | 496,200 | |||||
Nonaccrual loans | 72,279 | 72,279 | |||||
Difference | |||||||
Retail installment contracts held for investment | (122,042) | (122,042) | |||||
Nonaccrual loans | $ (25,969) | $ (25,969) | |||||
SCUSA | Retail installment contracts held for investment | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Threshold period for discontinuing and reversing accrual of interest (more than) | 60 days | 60 days | |||||
Fair Value | |||||||
Retail installment contracts held for investment | $ 1,900,000 | ||||||
Aggregate Unpaid Principal Balance | |||||||
Retail installment contracts held for investment | $ 2,600,000 |
BUSINESS SEGMENT INFORMATION108
BUSINESS SEGMENT INFORMATION (As Restated) (Details) - USD ($) | May 01, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||||||
Net interest income | $ 1,633,889,000 | $ 1,616,003,000 | $ 4,983,725,000 | $ 4,348,178,000 | |||
Total non-interest income | 718,995,000 | 603,746,000 | 2,009,581,000 | 1,585,847,000 | |||
Gain on change in control | 0 | 0 | 0 | 2,417,563,000 | |||
Provision for credit losses | 937,165,000 | 746,663,000 | 2,956,055,000 | 1,633,889,000 | |||
Total expenses | 1,088,143,000 | 909,588,000 | 3,142,655,000 | 2,560,374,000 | |||
(Loss)/Income before income taxes | 327,576,000 | 563,498,000 | 894,596,000 | 4,157,325,000 | |||
Intersegment (expense)/revenue | 0 | 0 | 0 | 0 | |||
Assets | 130,986,871,000 | 113,920,976,000 | 130,986,871,000 | 113,920,976,000 | $ 118,820,880,000 | ||
Global Corporate Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Minimum annual revenue to service corporations | 500,000,000 | 500,000,000 | |||||
Operating Segments | Consumer & Business Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 214,208,000 | 206,182,000 | 627,152,000 | 615,362,000 | |||
Total non-interest income | 167,696,000 | 205,135,000 | 523,337,000 | 423,750,000 | |||
Provision for credit losses | 7,094,000 | 36,083,000 | 33,779,000 | 54,711,000 | |||
Total expenses | 442,843,000 | 405,533,000 | 1,306,508,000 | 1,131,708,000 | |||
(Loss)/Income before income taxes | (68,033,000) | (30,299,000) | (189,798,000) | (147,307,000) | |||
Intersegment (expense)/revenue | 238,000 | 257,000 | 891,000 | 851,000 | |||
Assets | 21,944,625,000 | 21,882,105,000 | 21,944,625,000 | 21,882,105,000 | |||
Operating Segments | Commercial Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 70,445,000 | 62,548,000 | 202,833,000 | 177,879,000 | |||
Total non-interest income | 12,431,000 | 11,496,000 | 35,704,000 | 35,563,000 | |||
Provision for credit losses | (6,329,000) | 34,032,000 | 1,370,000 | (3,240,000) | |||
Total expenses | 44,993,000 | 38,671,000 | 135,966,000 | 111,574,000 | |||
(Loss)/Income before income taxes | 44,212,000 | 1,341,000 | 101,201,000 | 105,108,000 | |||
Intersegment (expense)/revenue | 1,203,000 | 1,493,000 | 2,961,000 | 3,643,000 | |||
Assets | 15,796,714,000 | 14,288,909,000 | 15,796,714,000 | 14,288,909,000 | |||
Operating Segments | Commercial Real Estate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 67,302,000 | 65,060,000 | 202,126,000 | 187,445,000 | |||
Total non-interest income | 23,158,000 | 6,791,000 | 39,324,000 | 28,013,000 | |||
Provision for credit losses | 9,898,000 | (84,235,000) | 22,694,000 | (95,339,000) | |||
Total expenses | 17,427,000 | 23,770,000 | 54,392,000 | 62,740,000 | |||
(Loss)/Income before income taxes | 63,135,000 | 132,316,000 | 164,364,000 | 248,057,000 | |||
Intersegment (expense)/revenue | 368,000 | 62,000 | 1,467,000 | 839,000 | |||
Assets | 15,012,129,000 | 14,161,237,000 | 15,012,129,000 | 14,161,237,000 | |||
Operating Segments | Global Corporate Banking | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 54,381,000 | 46,536,000 | 157,555,000 | 131,695,000 | |||
Total non-interest income | 19,047,000 | 21,072,000 | 60,437,000 | 56,512,000 | |||
Provision for credit losses | (10,931,000) | 7,990,000 | (5,173,000) | 6,228,000 | |||
Total expenses | 26,410,000 | 26,142,000 | 79,310,000 | 72,620,000 | |||
(Loss)/Income before income taxes | 57,949,000 | 33,476,000 | 143,855,000 | 109,359,000 | |||
Intersegment (expense)/revenue | (2,241,000) | (1,653,000) | (5,886,000) | (5,451,000) | |||
Assets | 12,200,062,000 | 9,807,122,000 | 12,200,062,000 | 9,807,122,000 | |||
Operating Segments | SCUSA | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 1,176,411,000 | 1,054,292,000 | 3,469,970,000 | 3,117,685,000 | |||
Total non-interest income | 382,700,000 | 289,209,000 | 1,137,296,000 | 741,125,000 | |||
Provision for credit losses | 723,921,000 | 722,159,000 | 1,935,147,000 | 1,829,307,000 | |||
Total expenses | 462,214,000 | 343,617,000 | 1,360,708,000 | 1,134,571,000 | |||
(Loss)/Income before income taxes | 372,976,000 | 277,725,000 | 1,311,411,000 | 894,932,000 | |||
Intersegment (expense)/revenue | 0 | 0 | 0 | 0 | |||
Assets | 35,329,343,000 | 30,817,353,000 | 35,329,343,000 | 30,817,353,000 | |||
Corporate, Non-Segment | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | (20,594,000) | 21,507,000 | (18,189,000) | 69,304,000 | |||
Total non-interest income | 22,852,000 | 38,777,000 | 67,397,000 | 95,861,000 | |||
Provision for credit losses | (18,357,000) | 6,130,000 | 12,706,000 | (2,360,000) | |||
Total expenses | 93,197,000 | 71,486,000 | 203,182,000 | 183,024,000 | |||
(Loss)/Income before income taxes | (72,582,000) | (17,332,000) | (166,680,000) | (15,499,000) | |||
Intersegment (expense)/revenue | 432,000 | (159,000) | 567,000 | 118,000 | |||
Assets | 30,703,998,000 | 22,964,250,000 | 30,703,998,000 | 22,964,250,000 | |||
Purchase Price Adjustments | |||||||
Segment Reporting Information [Line Items] | |||||||
Gain on change in control | 0 | ||||||
Purchase Price Adjustments | SCUSA | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 71,620,000 | 159,849,000 | 342,018,000 | 381,554,000 | |||
Total non-interest income | 101,102,000 | 47,486,000 | 184,390,000 | 293,909,000 | |||
Gain on change in control | $ 0 | 2,417,563,000 | |||||
Provision for credit losses | 231,869,000 | 24,504,000 | 955,532,000 | 59,633,000 | |||
Total expenses | 15,034,000 | 15,153,000 | 43,438,000 | 120,601,000 | |||
(Loss)/Income before income taxes | (74,181,000) | 167,678,000 | (472,562,000) | 2,912,792,000 | |||
Intersegment (expense)/revenue | 0 | 0 | 0 | 0 | |||
Assets | 0 | 0 | 0 | 0 | |||
Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income | 116,000 | 29,000 | 260,000 | (332,746,000) | |||
Total non-interest income | (9,991,000) | (16,220,000) | (38,304,000) | (88,886,000) | |||
Gain on change in control | $ 0 | 0 | |||||
Provision for credit losses | 0 | 0 | 0 | (215,051,000) | |||
Total expenses | (13,975,000) | (14,784,000) | (40,849,000) | (256,464,000) | |||
(Loss)/Income before income taxes | 4,100,000 | (1,407,000) | 2,805,000 | 49,883,000 | |||
Intersegment (expense)/revenue | 0 | 0 | 0 | 0 | |||
Assets | $ 0 | $ 0 | $ 0 | $ 0 | |||
Chrysler Group | |||||||
Segment Reporting Information [Line Items] | |||||||
Private label financing agreement, term | 10 years |
RESTATEMENTS (Additional Inform
RESTATEMENTS (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Jan. 28, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Allowance for credit losses | $ 2,767,144 | $ 1,701,602 | $ 1,418,726 | $ 1,297,655 | $ 834,337 | $ 2,767,144 | $ 1,418,726 | $ 1,701,602 | $ 2,834,653 | |||||
Loans held for investment, net | 75,816,054 | 74,293,865 | 75,816,054 | 74,293,865 | ||||||||||
Interest income - Loans | 1,834,853 | 1,813,023 | 5,574,758 | 4,909,503 | ||||||||||
Provision for credit losses | 937,165 | 746,663 | 2,956,055 | 1,633,889 | ||||||||||
Miscellaneous income | 140,354 | 127,067 | 384,384 | 471,649 | ||||||||||
NET INCOME ATTRIBUTABLE TO SHUSA | 50,824 | 243,876 | 309,264 | 2,271,484 | ||||||||||
Gain on Change in Control | 0 | 0 | 0 | 2,417,563 | ||||||||||
Goodwill | 8,951,484 | 8,951,484 | 8,951,484 | 8,951,484 | $ 5,530,000 | |||||||||
Impairment of long-lived assets | 0 | 0 | $ 3,300 | $ 33,300 | 0 | 64,546 | ||||||||
Overstatement due to Methodology for Estimating the Credit Loss Allowance for Retail Installment Contracts [Member] | Corrections | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Allowance for credit losses | 110,900 | 358,200 | 110,900 | 358,200 | ||||||||||
Overstatement (Understatement) due to Incorrect Accretion Methodology [Member] | Corrections | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Loans held for investment, net | 79,177 | 28,647 | 79,177 | 28,647 | ||||||||||
TDR impairment | 6,326 | 817 | 6,326 | 817 | ||||||||||
Interest income - Loans | (49,372) | (9,253) | (115,790) | (38,604) | ||||||||||
Provision for credit losses | 45,432 | 13,667 | 77,464 | 15,947 | ||||||||||
Miscellaneous income | 2,283 | (2,364) | 7,753 | 2,358 | ||||||||||
NET INCOME ATTRIBUTABLE TO SHUSA | (1,657) | $ 2,050 | (30,573) | $ (20,299) | ||||||||||
Retail installment contracts, held for investment | 81,700 | 49,200 | 81,700 | 49,200 | ||||||||||
Corrections at SC that Impacted the Carrying Value of Assets and Liabilities Acquired by SHUSA at the Change in Control | As Reported | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Gain on Change in Control | 2,430,000 | |||||||||||||
Goodwill | $ 5,470,000 | |||||||||||||
Correction to Impairment of Indefinite Lived Intangible | Trade name | Corrections | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Impairment of intangible assets | 28,500 | |||||||||||||
Correction of Impairment to Capitalized Software | As Reported | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Impairment of long-lived assets | $ 97,500 | |||||||||||||
Subsequent Event | Correction to Impairment of Indefinite Lived Intangible | As Reported | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Increase in indefinite-lived intangible assets | $ 50,000 | |||||||||||||
Subsequent Event | Correction to Impairment of Indefinite Lived Intangible | Trade name | As Reported | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Impairment of intangible assets | $ 20,300 | 11,700 | ||||||||||||
Subsequent Event | Separation Agreement | Former CEO of SC | Overstatement due to Incorrect Accounting of Payments and Benefits due to CEO of SC | As Reported | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Severance-related expenses | $ 12,300 | |||||||||||||
Stock compensation expense | 9,900 | |||||||||||||
Compensation liability | $ 115,100 | $ 115,100 | ||||||||||||
Retail Installment Contracts [Member] | Understatement due to Incorrect Discount Rate Used in the Determination of TDR Impairment [Member] | Corrections | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Allowance for credit losses | 53,800 | 1,000 | 53,800 | 1,000 | ||||||||||
Retail Installment Contracts [Member] | Overstatement due to Incorrect Discount Rate Used in the Determination of TDR Impairment [Member] | Corrections | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Loans held for investment, net | $ 53,800 | $ 1,000 | $ 53,800 | $ 1,000 |
RESTATEMENTS (Consolidated Bala
RESTATEMENTS (Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jan. 28, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | $ 4,619,782 | $ 2,201,783 | $ 2,031,915 | $ 4,226,947 | ||
Loans held for investment | [1],[2] | 78,583,198 | 75,995,467 | |||
Allowance for loan losses | [2] | (2,767,144) | (1,701,602) | |||
Net loans held for investment | 75,816,054 | 74,293,865 | ||||
Leased vehicles, net | [2],[3] | 8,072,195 | 6,623,970 | |||
Goodwill | 8,951,484 | 8,951,484 | $ 5,530,000 | |||
Intangible assets | 657,957 | 706,988 | ||||
Other assets | [2],[4] | 1,944,788 | 2,869,580 | |||
Total assets | 130,986,871 | 118,820,880 | 113,920,976 | |||
Accrued expenses and payables | 1,525,332 | 1,891,235 | ||||
Borrowings and other debt obligations | [2] | 48,371,320 | 39,679,382 | |||
Advance payments by borrowers for taxes and insurance | 208,521 | 166,144 | ||||
Deferred tax liabilities, net | 1,279,719 | 1,159,971 | ||||
Other liabilities | [2] | 713,512 | 722,685 | |||
TOTAL LIABILITIES | 107,641,659 | 96,093,424 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 14,729,506 | 14,729,609 | ||||
Retained earnings | 4,144,731 | 3,846,417 | ||||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 19,000,809 | 18,675,061 | ||||
Noncontrolling interest | 4,344,403 | 4,052,395 | ||||
TOTAL STOCKHOLDER'S EQUITY | 23,345,212 | 22,727,456 | 22,451,047 | 13,577,098 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 130,986,871 | 118,820,880 | ||||
First Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 4,669,373 | 2,234,725 | 2,051,229 | |||
Loans held for investment | 78,709,721 | 76,032,562 | ||||
Allowance for loan losses | (2,912,346) | (2,108,817) | ||||
Net loans held for investment | 75,797,375 | 73,923,745 | ||||
Leased vehicles, net | 8,084,712 | 6,638,115 | ||||
Goodwill | 8,892,011 | 8,892,011 | ||||
Intangible assets | 686,457 | 735,488 | ||||
Other assets | 1,811,214 | 2,860,121 | ||||
Total assets | 130,865,753 | 118,457,415 | ||||
Accrued expenses and payables | 1,691,565 | 1,902,278 | ||||
Borrowings and other debt obligations | 39,709,653 | |||||
Advance payments by borrowers for taxes and insurance | 210,285 | 167,670 | ||||
Deferred tax liabilities, net | 1,217,066 | 1,025,948 | ||||
Other liabilities | 595,527 | 673,764 | ||||
TOTAL LIABILITIES | 107,629,018 | 95,953,320 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 14,717,564 | |||||
Retained earnings | 4,111,611 | 3,714,642 | ||||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 18,955,747 | 18,543,286 | ||||
Noncontrolling interest | 4,280,988 | 3,960,809 | ||||
TOTAL STOCKHOLDER'S EQUITY | 23,236,735 | 22,504,095 | 22,240,033 | 13,544,983 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 130,865,753 | 118,457,415 | ||||
First Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Loans held for investment | (46,329) | (8,448) | ||||
Allowance for loan losses | 110,943 | 358,174 | ||||
Net loans held for investment | 64,614 | 349,726 | ||||
Leased vehicles, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Other assets | 0 | (30,271) | ||||
Total assets | 64,614 | 319,455 | ||||
Accrued expenses and payables | 0 | 0 | ||||
Borrowings and other debt obligations | (30,271) | |||||
Advance payments by borrowers for taxes and insurance | 0 | 0 | ||||
Deferred tax liabilities, net | 19,106 | 141,133 | ||||
Other liabilities | 0 | 0 | ||||
TOTAL LIABILITIES | 19,106 | 110,862 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 0 | |||||
Retained earnings | 27,878 | 122,480 | ||||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 27,878 | 122,480 | ||||
Noncontrolling interest | 17,630 | 86,113 | ||||
TOTAL STOCKHOLDER'S EQUITY | 45,508 | 208,593 | 204,786 | 0 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 64,614 | 319,455 | ||||
Second Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 4,669,373 | 2,234,725 | 2,051,229 | |||
Loans held for investment | 78,663,392 | 76,024,114 | ||||
Allowance for loan losses | (2,801,403) | (1,750,643) | ||||
Net loans held for investment | 75,861,989 | 74,273,471 | ||||
Leased vehicles, net | 8,084,712 | 6,638,115 | ||||
Goodwill | 8,892,011 | 8,892,011 | ||||
Intangible assets | 686,457 | 735,488 | ||||
Other assets | 1,811,214 | 2,829,850 | ||||
Total assets | 130,930,367 | 118,776,870 | ||||
Accrued expenses and payables | 1,691,565 | 1,902,278 | ||||
Borrowings and other debt obligations | 39,679,382 | |||||
Advance payments by borrowers for taxes and insurance | 210,285 | 167,670 | ||||
Deferred tax liabilities, net | 1,236,172 | 1,167,081 | ||||
Other liabilities | 595,527 | 673,764 | ||||
TOTAL LIABILITIES | 107,648,124 | 96,064,182 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 14,717,564 | |||||
Retained earnings | 4,139,489 | 3,837,122 | ||||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 18,983,625 | 18,665,766 | ||||
Noncontrolling interest | 4,298,618 | 4,046,922 | ||||
TOTAL STOCKHOLDER'S EQUITY | 23,282,243 | 22,712,688 | 22,444,819 | 13,544,983 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 130,930,367 | 118,776,870 | ||||
Second Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | (49,591) | (32,942) | (19,314) | |||
Loans held for investment | (80,194) | (28,647) | ||||
Allowance for loan losses | 34,259 | 49,041 | ||||
Net loans held for investment | (45,935) | 20,394 | ||||
Leased vehicles, net | (12,517) | (14,145) | ||||
Goodwill | 59,473 | 59,473 | ||||
Intangible assets | (28,500) | (28,500) | ||||
Other assets | 133,574 | 39,730 | ||||
Total assets | 56,504 | 44,010 | ||||
Accrued expenses and payables | (166,233) | (11,043) | ||||
Borrowings and other debt obligations | 0 | |||||
Advance payments by borrowers for taxes and insurance | (1,764) | (1,526) | ||||
Deferred tax liabilities, net | 43,547 | (7,110) | ||||
Other liabilities | 117,985 | 48,921 | ||||
TOTAL LIABILITIES | (6,465) | 29,242 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 and 530,391,043 shares outstanding at September 30, 2015 and at December 31, 2014, respectively) | 11,942 | |||||
Retained earnings | 5,242 | 9,295 | ||||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 17,184 | 9,295 | ||||
Noncontrolling interest | 45,785 | 5,473 | ||||
TOTAL STOCKHOLDER'S EQUITY | 62,969 | 14,768 | $ 6,228 | $ 32,115 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 56,504 | $ 44,010 | ||||
[1] | Loans held for investment includes $374.2 million and $845.9 million of loans recorded at fair value at September 30, 2015 and December 31, 2014, respectively. | |||||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 7 to these Condensed Consolidated Financial Statements for additional information. | |||||
[3] | Net of accumulated depreciation of $1.6 billion and $817.9 million at September 30, 2015 and December 31, 2014, respectively. | |||||
[4] | Includes mortgage servicing rights ("MSRs") of $143.5 million and 145.0 million at September 30, 2015 and December 31, 2014, respectively, for which the Company has elected the FVO. See Note 9 to these Condensed Consolidated Financial Statements for additional information. |
RESTATEMENTS (Consolidated Stat
RESTATEMENTS (Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest income - Loans | $ 1,834,853 | $ 1,813,023 | $ 5,574,758 | $ 4,909,503 | ||
Available-for-sale | 85,293 | 61,069 | 239,755 | 182,324 | ||
TOTAL INTEREST INCOME | 1,933,451 | 1,885,547 | 5,859,730 | 5,124,588 | ||
Net interest income | 1,633,889 | 1,616,003 | 4,983,725 | 4,348,178 | ||
Provision for credit losses | 937,165 | 746,663 | 2,956,055 | 1,633,889 | ||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 696,724 | 869,340 | 2,027,670 | 2,714,289 | ||
Consumer fees | 122,529 | 93,183 | 332,078 | 276,052 | ||
Equity method investments income/(loss), net | 1,624 | (4,397) | (5,543) | 8,083 | ||
Lease income | 364,634 | 232,298 | 1,017,711 | 516,718 | ||
Miscellaneous income | 140,354 | 127,067 | 384,384 | 471,649 | ||
TOTAL FEES AND OTHER INCOME | 720,988 | 603,615 | 1,992,310 | 1,574,367 | ||
Gain on Change in Control | 0 | 0 | 0 | 2,417,563 | ||
Net gain recognized in earnings | (1,993) | 131 | 17,271 | 2,429,043 | ||
TOTAL NON-INTEREST INCOME | 718,995 | 603,746 | 2,009,581 | 4,003,410 | ||
Compensation and benefits | 344,055 | 290,121 | 990,666 | 892,680 | ||
Occupancy and equipment expenses | 128,868 | 117,697 | 397,647 | 350,788 | ||
Loan expense | 85,718 | 80,968 | 274,522 | 237,691 | ||
Lease expense | 261,668 | 178,813 | 755,945 | 385,560 | ||
Other administrative expenses | 88,150 | 90,456 | 258,547 | 223,626 | ||
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,058,412 | 868,589 | 3,050,518 | 2,389,275 | ||
Deposit insurance premiums and other expenses | 13,809 | 14,958 | 42,987 | 43,937 | ||
Impairment of long-lived assets | 0 | 0 | $ 3,300 | $ 33,300 | 0 | 64,546 |
TOTAL OTHER EXPENSES | 29,731 | 40,999 | 92,137 | 171,099 | ||
INCOME BEFORE INCOME TAXES | 327,576 | 563,498 | 894,596 | 4,157,325 | ||
Income tax provision | 201,369 | 208,303 | 363,352 | 1,502,375 | ||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 126,207 | 355,195 | 531,244 | 2,654,950 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 75,383 | 111,319 | 221,980 | 383,466 | ||
NET INCOME ATTRIBUTABLE TO SHUSA | 50,824 | 243,876 | 309,264 | 2,271,484 | ||
First Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest income - Loans | 1,884,226 | 1,822,275 | 5,690,548 | 4,948,106 | ||
Available-for-sale | 61,290 | 183,158 | ||||
TOTAL INTEREST INCOME | 1,982,824 | 1,895,020 | 5,975,520 | 5,164,025 | ||
Net interest income | 1,683,262 | 1,625,476 | 5,099,515 | 4,387,615 | ||
Provision for credit losses | 854,180 | 1,013,357 | 2,728,118 | 2,034,721 | ||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 829,082 | 612,119 | 2,371,397 | 2,352,894 | ||
Consumer fees | 119,902 | 93,451 | 324,119 | 273,128 | ||
Equity method investments income/(loss), net | (4,619) | 7,607 | ||||
Lease income | 486,510 | 269,966 | 1,328,401 | 651,458 | ||
Miscellaneous income | 138,071 | 129,433 | 376,630 | 469,295 | ||
TOTAL FEES AND OTHER INCOME | 837,954 | 643,695 | 2,287,287 | 1,703,353 | ||
Gain on Change in Control | 2,428,539 | |||||
Net gain recognized in earnings | 2,440,019 | |||||
TOTAL NON-INTEREST INCOME | 835,961 | 643,826 | 2,304,558 | 4,143,372 | ||
Compensation and benefits | 365,071 | 290,665 | 1,012,887 | 894,051 | ||
Occupancy and equipment expenses | 128,990 | 397,769 | ||||
Loan expense | 89,944 | 80,392 | 296,135 | |||
Lease expense | 384,276 | 208,879 | 1,068,137 | 508,038 | ||
Other administrative expenses | 93,190 | 111,576 | 257,850 | 240,764 | ||
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,211,424 | 919,743 | 3,405,969 | 2,530,262 | ||
Deposit insurance premiums and other expenses | 14,967 | |||||
Impairment of long-lived assets | 97,546 | |||||
TOTAL OTHER EXPENSES | 41,008 | 204,099 | ||||
INCOME BEFORE INCOME TAXES | 423,888 | 295,194 | 1,177,849 | 3,761,905 | ||
Income tax provision | 241,764 | 36,102 | 474,708 | 1,285,855 | ||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 182,124 | 259,092 | 703,141 | 2,476,050 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 100,237 | 54,420 | 295,222 | 298,633 | ||
NET INCOME ATTRIBUTABLE TO SHUSA | 81,887 | 204,672 | 407,919 | 2,177,417 | ||
First Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest income - Loans | 0 | 0 | 0 | 0 | ||
Available-for-sale | 0 | 0 | ||||
TOTAL INTEREST INCOME | 0 | 0 | 0 | 0 | ||
Net interest income | 0 | 0 | 0 | 0 | ||
Provision for credit losses | 124,424 | (208,119) | 285,112 | (343,620) | ||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | (124,424) | 208,119 | (285,112) | 343,620 | ||
Consumer fees | 0 | 0 | 0 | 0 | ||
Equity method investments income/(loss), net | 0 | 0 | ||||
Lease income | (124,918) | (38,183) | (316,636) | (126,444) | ||
Miscellaneous income | 0 | 0 | 0 | 0 | ||
TOTAL FEES AND OTHER INCOME | (124,918) | (38,184) | (316,636) | (126,444) | ||
Gain on Change in Control | 0 | |||||
Net gain recognized in earnings | 0 | |||||
TOTAL NON-INTEREST INCOME | (124,918) | (38,184) | (316,636) | (126,444) | ||
Compensation and benefits | 0 | 0 | 0 | 0 | ||
Occupancy and equipment expenses | 0 | 0 | ||||
Loan expense | 0 | 0 | 0 | |||
Lease expense | (124,918) | (38,183) | (316,636) | (126,444) | ||
Other administrative expenses | 0 | 0 | 0 | 0 | ||
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | (124,918) | (38,183) | (316,636) | (126,444) | ||
Deposit insurance premiums and other expenses | 0 | |||||
Impairment of long-lived assets | 0 | |||||
TOTAL OTHER EXPENSES | 0 | 0 | ||||
INCOME BEFORE INCOME TAXES | (124,424) | 208,118 | (285,112) | 343,620 | ||
Income tax provision | (51,174) | 84,192 | (122,027) | 138,833 | ||
NET INCOME INCLUDING NONCONTROLLING INTEREST | (73,250) | 123,926 | (163,085) | 204,787 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (31,346) | 51,166 | (68,483) | 84,542 | ||
NET INCOME ATTRIBUTABLE TO SHUSA | (41,904) | 72,760 | (94,602) | 120,245 | ||
Second Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest income - Loans | 1,884,226 | 1,822,275 | 5,690,548 | 4,948,106 | ||
Available-for-sale | 61,290 | 183,158 | ||||
TOTAL INTEREST INCOME | 1,982,824 | 1,895,020 | 5,975,520 | 5,164,025 | ||
Net interest income | 1,683,262 | 1,625,476 | 5,099,515 | 4,387,615 | ||
Provision for credit losses | 978,604 | 805,238 | 3,013,230 | 1,691,101 | ||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 704,658 | 820,238 | 2,086,285 | 2,696,514 | ||
Consumer fees | 119,902 | 93,451 | 324,119 | 273,128 | ||
Equity method investments income/(loss), net | (4,619) | 7,607 | ||||
Lease income | 361,592 | 231,783 | 1,011,765 | 525,014 | ||
Miscellaneous income | 138,071 | 129,433 | 376,630 | 469,295 | ||
TOTAL FEES AND OTHER INCOME | 713,036 | 605,511 | 1,970,651 | 1,576,909 | ||
Gain on Change in Control | 2,428,539 | |||||
Net gain recognized in earnings | 2,440,019 | |||||
TOTAL NON-INTEREST INCOME | 711,043 | 605,642 | 1,987,922 | 4,016,928 | ||
Compensation and benefits | 365,071 | 290,665 | 1,012,887 | 894,051 | ||
Occupancy and equipment expenses | 128,990 | 397,769 | ||||
Loan expense | 89,944 | 80,392 | 296,135 | |||
Lease expense | 259,358 | 170,696 | 751,501 | 381,594 | ||
Other administrative expenses | 93,190 | 111,576 | 257,850 | 240,764 | ||
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,086,506 | 881,560 | 3,089,333 | 2,403,818 | ||
Deposit insurance premiums and other expenses | 14,967 | |||||
Impairment of long-lived assets | 97,546 | |||||
TOTAL OTHER EXPENSES | 41,008 | 204,099 | ||||
INCOME BEFORE INCOME TAXES | 299,464 | 503,312 | 892,737 | 4,105,525 | ||
Income tax provision | 190,590 | 120,294 | 352,681 | 1,424,688 | ||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 108,874 | 383,018 | 540,056 | 2,680,837 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 68,891 | 105,586 | 226,739 | 383,175 | ||
NET INCOME ATTRIBUTABLE TO SHUSA | 39,983 | 277,432 | 313,317 | 2,297,662 | ||
Second Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Interest income - Loans | (49,373) | (9,252) | (115,790) | (38,603) | ||
Available-for-sale | (221) | (834) | ||||
TOTAL INTEREST INCOME | (49,373) | (9,473) | (115,790) | (39,437) | ||
Net interest income | (49,373) | (9,473) | (115,790) | (39,437) | ||
Provision for credit losses | (41,439) | (58,575) | (57,175) | (57,212) | ||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | (7,934) | 49,102 | (58,615) | 17,775 | ||
Consumer fees | 2,627 | (268) | 7,959 | 2,924 | ||
Equity method investments income/(loss), net | 222 | 476 | ||||
Lease income | 3,042 | 515 | 5,946 | (8,296) | ||
Miscellaneous income | 2,283 | (2,366) | 7,754 | 2,354 | ||
TOTAL FEES AND OTHER INCOME | 7,952 | (1,896) | 21,659 | (2,542) | ||
Gain on Change in Control | (10,976) | |||||
Net gain recognized in earnings | (10,976) | |||||
TOTAL NON-INTEREST INCOME | 7,952 | (1,896) | 21,659 | (13,518) | ||
Compensation and benefits | (21,016) | (544) | (22,221) | (1,371) | ||
Occupancy and equipment expenses | (122) | (122) | ||||
Loan expense | (4,226) | 576 | (21,613) | |||
Lease expense | 2,310 | 8,117 | 4,444 | 3,966 | ||
Other administrative expenses | (5,040) | (21,120) | 697 | (17,138) | ||
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | (28,094) | (12,971) | (38,815) | (14,543) | ||
Deposit insurance premiums and other expenses | (9) | |||||
Impairment of long-lived assets | (33,000) | |||||
TOTAL OTHER EXPENSES | (9) | (33,000) | ||||
INCOME BEFORE INCOME TAXES | 28,112 | 60,186 | 1,859 | 51,800 | ||
Income tax provision | 10,779 | 88,009 | 10,671 | 77,687 | ||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 17,333 | (27,823) | (8,812) | (25,887) | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 6,492 | 5,733 | (4,759) | 291 | ||
NET INCOME ATTRIBUTABLE TO SHUSA | $ 10,841 | $ (33,556) | $ (4,053) | $ (26,178) |
RESTATEMENTS (Consolidated S112
RESTATEMENTS (Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | $ 126,207 | $ 355,195 | $ 531,244 | $ 2,654,950 |
Net unrealized gains/(losses) on cash flow hedge derivative financial instruments | (27,713) | 17,381 | (35,614) | 24,022 |
Net unrealized gains/(losses) on investment securities | 83,722 | (17,697) | 61,479 | 111,291 |
Amortization of defined benefit plans | 620 | 272 | 1,672 | 1,107 |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | 56,629 | (44) | 27,537 | 136,420 |
COMPREHENSIVE INCOME | 182,836 | 355,151 | 558,781 | 2,791,370 |
Comprehensive Income Attributable to Noncontrolling Interest | 75,383 | 111,319 | 221,980 | 383,466 |
Comprehensive income | 107,453 | 243,832 | 336,801 | 2,407,904 |
First Error Correction | As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 182,124 | 259,092 | 703,141 | 2,476,050 |
COMPREHENSIVE INCOME | 238,753 | 259,048 | 730,678 | 2,612,470 |
Comprehensive Income Attributable to Noncontrolling Interest | 100,237 | 54,420 | 295,222 | 298,633 |
Comprehensive income | 138,516 | 204,628 | 435,456 | 2,313,837 |
First Error Correction | Corrections | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | (73,250) | 123,926 | (163,085) | 204,787 |
COMPREHENSIVE INCOME | (73,250) | 123,926 | (163,085) | 204,787 |
Comprehensive Income Attributable to Noncontrolling Interest | (31,346) | 51,166 | (68,483) | 84,542 |
Comprehensive income | (41,904) | 72,760 | (94,602) | 120,245 |
Second Error Correction | As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 108,874 | 383,018 | 540,056 | 2,680,837 |
COMPREHENSIVE INCOME | 165,503 | 382,974 | 567,593 | 2,817,257 |
Comprehensive Income Attributable to Noncontrolling Interest | 68,891 | 105,586 | 226,739 | 383,175 |
Comprehensive income | 96,612 | 277,388 | 340,854 | 2,434,082 |
Second Error Correction | Corrections | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 17,333 | (27,823) | (8,812) | (25,887) |
COMPREHENSIVE INCOME | 17,333 | (27,823) | (8,812) | (25,887) |
Comprehensive Income Attributable to Noncontrolling Interest | 6,492 | 5,733 | (4,759) | 291 |
Comprehensive income | $ 10,841 | $ (33,556) | $ (4,053) | $ (26,178) |
RESTATEMENTS (Consolidated S113
RESTATEMENTS (Consolidated Statement of Stockholder's Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 22,727,456 | $ 13,577,098 | |||
Comprehensive income | $ 107,453 | $ 243,832 | 336,801 | 2,407,904 | |
Comprehensive Income Attributable to Noncontrolling Interest | 221,980 | 383,466 | |||
SCUSA Change in Control | [1] | 3,483,445 | |||
Impact of SCUSA Stock Option Activity | 68,024 | 110,958 | |||
Dividends paid on Noncontrolling Interest | (20,667) | ||||
Stock issued in connection with employee benefit and incentive compensation plans | 1,901 | (1,207) | |||
Dividends paid on preferred stock | (10,950) | (10,950) | |||
Ending balance | 23,345,212 | 22,451,047 | 23,345,212 | 22,451,047 | |
First Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 22,504,095 | 13,544,983 | |||
Comprehensive income | 138,516 | 204,628 | 435,456 | 2,313,837 | |
Comprehensive Income Attributable to Noncontrolling Interest | 295,222 | 0 | |||
SCUSA Change in Control | 3,872,370 | ||||
Impact of SCUSA Stock Option Activity | 11,011 | 0 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 23,236,735 | 22,240,033 | 23,236,735 | 22,240,033 | |
First Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 208,593 | 0 | |||
Comprehensive income | (41,904) | 72,760 | (94,602) | 120,245 | |
Comprehensive Income Attributable to Noncontrolling Interest | (68,483) | 383,175 | |||
SCUSA Change in Control | (402,935) | ||||
Impact of SCUSA Stock Option Activity | 0 | 104,301 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 45,508 | 204,786 | 45,508 | 204,786 | |
Second Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 22,712,688 | 13,544,983 | |||
Comprehensive income | 96,612 | 277,388 | 340,854 | 2,434,082 | |
Comprehensive Income Attributable to Noncontrolling Interest | 226,739 | 383,175 | |||
SCUSA Change in Control | 3,469,435 | ||||
Impact of SCUSA Stock Option Activity | 11,011 | 104,301 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 23,282,243 | 22,444,819 | 23,282,243 | 22,444,819 | |
Second Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 14,768 | 32,115 | |||
Comprehensive income | 10,841 | (33,556) | (4,053) | (26,178) | |
Comprehensive Income Attributable to Noncontrolling Interest | (4,759) | 291 | |||
SCUSA Change in Control | 14,010 | ||||
Impact of SCUSA Stock Option Activity | 57,013 | 6,657 | |||
Dividends paid on Noncontrolling Interest | (20,667) | ||||
Ending balance | 62,969 | 6,228 | 62,969 | 6,228 | |
Common Stock and Paid-in Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 14,729,609 | 12,209,816 | |||
Impact of SCUSA Stock Option Activity | (2,004) | ||||
Stock issued in connection with employee benefit and incentive compensation plans | 1,901 | (1,207) | |||
Ending balance | 14,729,506 | 14,729,609 | 14,729,506 | 14,729,609 | |
Common Stock and Paid-in Capital | First Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Impact of SCUSA Stock Option Activity | (13,946) | ||||
Ending balance | 14,717,564 | 14,717,564 | |||
Common Stock and Paid-in Capital | First Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Impact of SCUSA Stock Option Activity | 0 | ||||
Ending balance | 0 | 0 | |||
Common Stock and Paid-in Capital | Second Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Impact of SCUSA Stock Option Activity | (13,946) | ||||
Ending balance | 14,717,564 | 14,717,564 | |||
Common Stock and Paid-in Capital | Second Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Impact of SCUSA Stock Option Activity | 11,942 | ||||
Ending balance | 11,942 | 11,942 | |||
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 3,846,417 | 1,426,205 | |||
Comprehensive income | 309,264 | 2,271,484 | |||
Dividends paid on preferred stock | (10,950) | (10,950) | |||
Ending balance | 4,144,731 | 3,686,739 | 4,144,731 | 3,686,739 | |
Retained Earnings | First Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 3,714,642 | 1,394,090 | |||
Comprehensive income | 407,919 | 2,177,417 | |||
Ending balance | 4,111,611 | 3,560,557 | 4,111,611 | 3,560,557 | |
Retained Earnings | First Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 122,480 | 0 | |||
Comprehensive income | (94,602) | 120,245 | |||
Ending balance | 27,878 | 120,245 | 27,878 | 120,245 | |
Retained Earnings | Second Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 3,837,122 | 1,394,090 | |||
Comprehensive income | 313,317 | 2,297,662 | |||
Ending balance | 4,139,489 | 3,680,802 | 4,139,489 | 3,680,802 | |
Retained Earnings | Second Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 9,295 | 32,115 | |||
Comprehensive income | (4,053) | (26,178) | |||
Ending balance | 5,242 | 5,937 | 5,242 | 5,937 | |
Noncontrolling Interest | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 4,052,395 | 0 | |||
Comprehensive Income Attributable to Noncontrolling Interest | 221,980 | 383,466 | |||
SCUSA Change in Control | [1] | 3,483,445 | |||
Impact of SCUSA Stock Option Activity | 70,028 | 110,958 | |||
Dividends paid on Noncontrolling Interest | (20,667) | ||||
Ending balance | 4,344,403 | 3,957,202 | 4,344,403 | 3,957,202 | |
Noncontrolling Interest | First Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 3,960,809 | ||||
Comprehensive Income Attributable to Noncontrolling Interest | 295,222 | 0 | |||
SCUSA Change in Control | 3,872,370 | ||||
Impact of SCUSA Stock Option Activity | 24,957 | 0 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 4,280,988 | 3,872,370 | 4,280,988 | 3,872,370 | |
Noncontrolling Interest | First Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 86,113 | ||||
Comprehensive Income Attributable to Noncontrolling Interest | (68,483) | 383,175 | |||
SCUSA Change in Control | (402,935) | ||||
Impact of SCUSA Stock Option Activity | 0 | 104,301 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 17,630 | 84,541 | 17,630 | 84,541 | |
Noncontrolling Interest | Second Error Correction | As Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 4,046,922 | ||||
Comprehensive Income Attributable to Noncontrolling Interest | 226,739 | 383,175 | |||
SCUSA Change in Control | 3,469,435 | ||||
Impact of SCUSA Stock Option Activity | 24,957 | 104,301 | |||
Dividends paid on Noncontrolling Interest | 0 | ||||
Ending balance | 4,298,618 | 3,956,911 | 4,298,618 | 3,956,911 | |
Noncontrolling Interest | Second Error Correction | Corrections | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 5,473 | ||||
Comprehensive Income Attributable to Noncontrolling Interest | (4,759) | 291 | |||
SCUSA Change in Control | 14,010 | ||||
Impact of SCUSA Stock Option Activity | 45,071 | 6,657 | |||
Dividends paid on Noncontrolling Interest | (20,667) | ||||
Ending balance | $ 45,785 | $ 291 | $ 45,785 | $ 291 | |
[1] | Refer to Note 3 to the Condensed Consolidated Financial Statements for further discussion. |
RESTATEMENTS (Consolidated S114
RESTATEMENTS (Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income including noncontrolling interest | $ 126,207 | $ 355,195 | $ 531,244 | $ 2,654,950 | ||
Noncash or Part Noncash, Gain (Loss) from Change in Control | 0 | (2,280,027) | ||||
Impairment of Long-Lived Assets Held-for-use, Other | 64,546 | |||||
Impairment of long-lived assets | 0 | 0 | $ 3,300 | $ 33,300 | 0 | 64,546 |
Provision for credit losses | 937,165 | 746,663 | 2,956,055 | 1,633,889 | ||
Deferred tax expense | 55,721 | 1,176,742 | ||||
Depreciation, amortization and accretion | 249,373 | (179,928) | ||||
Net gain on sale of loans | (127,426) | (135,511) | ||||
Equity loss/(earnings) on equity method investments | (1,624) | 4,397 | 5,543 | (8,083) | ||
Proceeds from sales of loans held-for-sale | 4,674,352 | 3,941,367 | ||||
Stock-based compensation | 19,530 | 3,312 | ||||
Other assets and bank-owned life insurance | 270,431 | 258,715 | ||||
Other liabilities | 253,267 | 148,020 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,707,478 | 3,372,509 | ||||
Proceeds from the sale of leased vehicles | 1,758,531 | 409,944 | ||||
Purchases of leased vehicles | (4,738,987) | (4,842,410) | ||||
Manufacturer incentives | 991,326 | 768,304 | ||||
NET CASH USED IN INVESTING ACTIVITIES | (14,384,904) | (10,687,739) | ||||
Net change in advance payments by borrowers for taxes and insurance | 42,377 | 20,678 | ||||
Net change in short-term borrowings | (5,450,000) | 82,039 | ||||
Net proceeds from long-term borrowings | 41,022,868 | 29,060,843 | ||||
Repayments of FHLB advances (with maturities greater than 90 days) | (4,870,000) | (921,946) | ||||
Cash dividends paid to preferred stockholders | (10,950) | (10,950) | ||||
Proceeds from the issuance of common stock | 87,213 | 1,787,285 | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 13,095,425 | 5,120,198 | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 2,417,999 | (2,195,032) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $ 4,226,947 | 2,201,783 | 4,226,947 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,619,782 | 2,031,915 | $ 4,226,947 | 4,619,782 | 2,031,915 | |
First Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income including noncontrolling interest | 182,124 | 259,092 | 703,141 | 2,476,050 | ||
Noncash or Part Noncash, Gain (Loss) from Change in Control | (2,291,003) | |||||
Impairment of Long-Lived Assets Held-for-use, Other | 0 | |||||
Impairment of long-lived assets | 97,546 | |||||
Provision for credit losses | 854,180 | 1,013,357 | 2,728,118 | 2,034,721 | ||
Deferred tax expense | 224,417 | 890,534 | ||||
Depreciation, amortization and accretion | 116,205 | (291,638) | ||||
Net gain on sale of loans | (102,909) | (190,338) | ||||
Equity loss/(earnings) on equity method investments | 4,619 | (7,607) | ||||
Proceeds from sales of loans held-for-sale | 3,996,244 | |||||
Stock-based compensation | 23,156 | |||||
Other assets and bank-owned life insurance | 355,987 | 238,384 | ||||
Other liabilities | 180,929 | 379,165 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,728,327 | 3,332,291 | ||||
Proceeds from the sale of leased vehicles | 1,750,928 | 410,529 | ||||
Purchases of leased vehicles | (4,579,833) | |||||
Manufacturer incentives | 993,991 | 564,376 | ||||
NET CASH USED IN INVESTING ACTIVITIES | (14,389,842) | (10,628,505) | ||||
Net change in advance payments by borrowers for taxes and insurance | 42,615 | |||||
Net change in short-term borrowings | 66,680 | |||||
Net proceeds from long-term borrowings | 29,068,188 | |||||
Repayments of FHLB advances (with maturities greater than 90 days) | (913,635) | |||||
Proceeds from the issuance of common stock | 87,713 | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 13,096,163 | 5,120,496 | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 2,434,648 | (2,175,718) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,234,725 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,669,373 | 2,051,229 | 4,669,373 | 2,051,229 | ||
First Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income including noncontrolling interest | (73,250) | 123,926 | (163,085) | 204,787 | ||
Noncash or Part Noncash, Gain (Loss) from Change in Control | 0 | |||||
Impairment of Long-Lived Assets Held-for-use, Other | 0 | |||||
Impairment of long-lived assets | 0 | |||||
Provision for credit losses | 124,424 | (208,119) | 285,112 | (343,620) | ||
Deferred tax expense | (122,027) | 138,833 | ||||
Depreciation, amortization and accretion | 0 | 0 | ||||
Net gain on sale of loans | 0 | 0 | ||||
Equity loss/(earnings) on equity method investments | 0 | 0 | ||||
Proceeds from sales of loans held-for-sale | 0 | |||||
Stock-based compensation | 0 | |||||
Other assets and bank-owned life insurance | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 0 | 0 | ||||
Proceeds from the sale of leased vehicles | 0 | 0 | ||||
Purchases of leased vehicles | 0 | |||||
Manufacturer incentives | 0 | 0 | ||||
NET CASH USED IN INVESTING ACTIVITIES | 0 | 0 | ||||
Net change in advance payments by borrowers for taxes and insurance | 0 | |||||
Net change in short-term borrowings | 0 | |||||
Net proceeds from long-term borrowings | 0 | |||||
Repayments of FHLB advances (with maturities greater than 90 days) | 0 | |||||
Proceeds from the issuance of common stock | 0 | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 0 | 0 | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | 0 | 0 | ||
Second Error Correction | As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income including noncontrolling interest | 108,874 | 383,018 | 540,056 | 2,680,837 | ||
Noncash or Part Noncash, Gain (Loss) from Change in Control | (2,291,003) | |||||
Impairment of Long-Lived Assets Held-for-use, Other | 0 | |||||
Impairment of long-lived assets | 97,546 | |||||
Provision for credit losses | 978,604 | 805,238 | 3,013,230 | 1,691,101 | ||
Deferred tax expense | 102,390 | 1,029,367 | ||||
Depreciation, amortization and accretion | 116,205 | (291,638) | ||||
Net gain on sale of loans | (102,909) | (190,338) | ||||
Equity loss/(earnings) on equity method investments | 4,619 | (7,607) | ||||
Proceeds from sales of loans held-for-sale | 3,996,244 | |||||
Stock-based compensation | 23,156 | |||||
Other assets and bank-owned life insurance | 355,987 | 238,384 | ||||
Other liabilities | 180,929 | 379,165 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 3,728,327 | 3,332,291 | ||||
Proceeds from the sale of leased vehicles | 1,750,928 | 410,529 | ||||
Purchases of leased vehicles | (4,579,833) | |||||
Manufacturer incentives | 993,991 | 564,376 | ||||
NET CASH USED IN INVESTING ACTIVITIES | (14,389,842) | (10,628,505) | ||||
Net change in advance payments by borrowers for taxes and insurance | 42,615 | |||||
Net change in short-term borrowings | 66,680 | |||||
Net proceeds from long-term borrowings | 29,068,188 | |||||
Repayments of FHLB advances (with maturities greater than 90 days) | (913,635) | |||||
Proceeds from the issuance of common stock | 87,713 | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 13,096,163 | 5,120,496 | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 2,434,648 | (2,175,718) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,234,725 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,669,373 | 2,051,229 | 4,669,373 | 2,051,229 | ||
Second Error Correction | Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income including noncontrolling interest | 17,333 | (27,823) | (8,812) | (25,887) | ||
Noncash or Part Noncash, Gain (Loss) from Change in Control | 10,976 | |||||
Impairment of Long-Lived Assets Held-for-use, Other | 64,546 | |||||
Impairment of long-lived assets | (33,000) | |||||
Provision for credit losses | (41,439) | (58,575) | (57,175) | (57,212) | ||
Deferred tax expense | (46,669) | 147,375 | ||||
Depreciation, amortization and accretion | 133,168 | 111,710 | ||||
Net gain on sale of loans | (24,517) | 54,827 | ||||
Equity loss/(earnings) on equity method investments | (222) | (476) | ||||
Proceeds from sales of loans held-for-sale | (54,877) | |||||
Stock-based compensation | (3,626) | |||||
Other assets and bank-owned life insurance | (85,556) | 20,331 | ||||
Other liabilities | 72,338 | (231,145) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | (20,849) | 40,218 | ||||
Proceeds from the sale of leased vehicles | 7,603 | (585) | ||||
Purchases of leased vehicles | (262,577) | |||||
Manufacturer incentives | (2,665) | 203,928 | ||||
NET CASH USED IN INVESTING ACTIVITIES | 4,938 | (59,234) | ||||
Net change in advance payments by borrowers for taxes and insurance | (238) | |||||
Net change in short-term borrowings | 15,359 | |||||
Net proceeds from long-term borrowings | (7,345) | |||||
Repayments of FHLB advances (with maturities greater than 90 days) | (8,311) | |||||
Proceeds from the issuance of common stock | (500) | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | (738) | (298) | ||||
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (16,649) | (19,314) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | (32,942) | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ (49,591) | $ (19,314) | $ (49,591) | $ (19,314) |