Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
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 | Mar. 31, 2016 | |
Amendment Flag | true | |
Amendment Description | This Form 10-Q/A amends the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, as originally filed with the Securities and Exchange Commission (the "SEC") on May 13, 2016 (the "Original Filing"). This Form 10-Q/A is being filed to restate our unaudited Condensed Consolidated Financial Statements for the three months ended March 31, 2016 and 2015 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 ("ACLs") for the non-troubled debt restructurings ("TDRs") portfolio of RICs held for investment, (iii) error in our methodology for accreting / amortizing dealer discounts, subvention payments from manufacturers, and capitalized origination costs on retail installment contracts held for investment, and (iv) an error 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 March 31, 2016 and 2015. | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End | --12-31 | |
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 | Mar. 31, 2016 | Dec. 31, 2015 | ||
ASSETS | ||||
Cash and cash equivalents | $ 6,603,448 | $ 4,992,042 | ||
Investment securities: | ||||
Available-for-sale at fair value | 20,533,116 | 20,851,495 | ||
Other investments | 978,470 | 1,024,259 | ||
Loans held-for-investment | 81,094,242 | [1],[2] | 79,373,792 | |
Allowance for loan and lease losses | [2] | (3,480,603) | (3,160,711) | |
Net loans held-for-investment | 77,613,639 | 76,213,081 | ||
Loans held-for-sale | 2,543,341 | [3] | 3,183,282 | |
Premises and equipment, net | [4] | 946,138 | 942,372 | |
Leased vehicles, net | [2],[5] | 8,959,228 | 8,377,835 | |
Accrued interest receivable | 556,384 | [2] | 586,263 | |
Equity method investments | 260,089 | 266,569 | ||
Goodwill | 4,444,389 | 4,444,389 | ||
Intangible assets, net | 624,117 | 639,055 | ||
Bank-owned life insurance | 1,733,940 | 1,727,096 | ||
Restricted cash | [2] | 2,923,603 | 2,429,729 | |
Other assets | [2],[6] | 2,304,725 | 1,893,815 | |
TOTAL ASSETS | 131,024,627 | 127,571,282 | ||
LIABILITIES | ||||
Accrued expenses and payables | 1,516,199 | 1,666,286 | ||
Deposits and other customer accounts | 57,464,250 | 56,114,232 | ||
Borrowings and other debt obligations | [2] | 50,756,501 | 49,086,103 | |
Advance payments by borrowers for taxes and insurance | 231,107 | 171,137 | ||
Deferred tax liabilities, net | 472,572 | 353,369 | ||
Other liabilities | 817,889 | [2] | 598,380 | |
TOTAL LIABILITIES | 111,258,518 | 107,989,507 | ||
STOCKHOLDER'S EQUITY | ||||
Preferred stock (no par value; $25,000 liquidation preference; 8,000,000 shares authorized and outstanding at both March 31, 2016 and December 31, 2015) | 195,445 | 195,445 | ||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 shares outstanding at both March 31, 2016 and December 31, 2015) | 14,716,851 | 14,729,566 | ||
Accumulated other comprehensive loss | (26,679) | (139,641) | ||
Retained earnings | 2,361,562 | 2,351,435 | ||
TOTAL SHUSA STOCKHOLDER'S EQUITY | 17,247,179 | 17,136,805 | ||
Noncontrolling interest | 2,518,930 | 2,444,970 | ||
TOTAL STOCKHOLDER'S EQUITY | 19,766,109 | 19,581,775 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 131,024,627 | $ 127,571,282 | ||
[1] | Loans held-for-investment includes $285.8 million and $328.7 million of loans recorded at fair value at March 31, 2016 and December 31, 2015, 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 6 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 $914.1 million and $844.5 million at March 31, 2016 and December 31, 2015, respectively. | |||
[5] | Net of accumulated depreciation of $2.2 billion and $1.9 billion at March 31, 2016 and December 31, 2015, respectively. | |||
[6] | Includes mortgage servicing rights ("MSRs") of $130.7 million and $147.2 million at March 31, 2016 and December 31, 2015, respectively, for which Santander Holdings USA, Inc. (the "Company") has elected the FVO. See Note 8 to these Condensed Consolidated Financial Statements for additional information. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Loans held for investment, fair value | $ 285,800,000 | $ 328,700,000 |
Accumulated depreciation | 914,100,000 | 844,500,000 |
Leased vehicles, accumulated depreciation | $ 2,172,677,000 | $ 1,901,004,000 |
STOCKHOLDER'S EQUITY | ||
Preferred Stock, no par value (in usd per share) | ||
Preferred Stock, liquidation preference | $ 25,000 | $ 25,000 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
INTEREST INCOME: | ||
Loans | $ 1,859,053 | $ 1,803,678 |
Interest-earning deposits | 8,725 | 1,762 |
Investment securities: | ||
Available-for-sale | 92,653 | 77,417 |
Other investments | 9,073 | 19,068 |
TOTAL INTEREST INCOME | 1,969,504 | 1,901,925 |
INTEREST EXPENSE: | ||
Deposits and other customer accounts | 68,800 | 63,393 |
Borrowings and other debt obligations | 284,652 | 215,475 |
TOTAL INTEREST EXPENSE | 353,452 | 278,868 |
NET INTEREST INCOME | 1,616,052 | 1,623,057 |
Provision for credit losses | 882,278 | 1,053,639 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 733,774 | 569,418 |
NON-INTEREST INCOME: | ||
Consumer fees | 124,467 | 100,704 |
Commercial fees | 41,294 | 42,685 |
Mortgage banking income, net | 16,344 | 17,863 |
Equity method investments loss, net | (4,192) | (7,133) |
Bank-owned life insurance | 13,728 | 12,956 |
Lease income | 421,520 | 313,331 |
Miscellaneous (loss)/income | (41,881) | 96,540 |
TOTAL FEES AND OTHER INCOME | 571,280 | 576,946 |
Other-than-temporary impairment recognized in earnings | (10) | 0 |
Net gain on sale of investment securities | 26,431 | 9,557 |
Net gain recognized in earnings | 26,421 | 9,557 |
TOTAL NON-INTEREST INCOME | 597,701 | 586,503 |
GENERAL AND ADMINISTRATIVE EXPENSES: | ||
Compensation and benefits | 368,119 | 319,101 |
Occupancy and equipment expenses | 133,673 | 129,166 |
Technology expense | 44,816 | 42,089 |
Outside services | 70,220 | 48,399 |
Marketing expense | 19,282 | 14,341 |
Loan expense | 98,645 | 93,797 |
Lease expense | 292,882 | 240,948 |
Other administrative expenses | 81,637 | 71,666 |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,109,274 | 959,507 |
OTHER EXPENSES: | ||
Amortization of intangibles | 14,938 | 16,806 |
Deposit insurance premiums and other expenses | 23,858 | 15,809 |
Loss on debt extinguishment | 32,872 | 0 |
Investment expense on qualified affordable housing projects | 85 | 49 |
TOTAL OTHER EXPENSES | 71,753 | 32,664 |
INCOME BEFORE INCOME TAX PROVISION | 150,448 | 163,750 |
Income tax provision | 65,396 | 36,909 |
NET INCOME INCLUDING NONCONTROLLING INTEREST | 85,052 | 126,841 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 71,275 | 41,425 |
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | $ 13,777 | $ 85,416 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||
NET INCOME INCLUDING NONCONTROLLING INTEREST | $ 85,052 | $ 126,841 | |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX | |||
Net unrealized losses on cash flow hedge derivative financial instruments, net of tax | [1] | (32,527) | (15,115) |
Net unrealized gains on available-for-sale investment securities, net of tax | 144,924 | 65,990 | |
Pension and post-retirement actuarial gains, net of tax | 565 | 615 | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | 112,962 | 51,490 | |
COMPREHENSIVE INCOME | 198,014 | 178,331 | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 71,275 | 41,425 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHUSA | $ 126,739 | $ 136,906 | |
[1] | Excludes $(15.7) million of other comprehensive income attributable to NCI for the three-month period ended March 31, 2016. There was no material other comprehensive income attributable to NCI for the three-month period ended March 31, 2015 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Other comprehensive income attributable to NCI | $ (15,680) |
CONDENSED CONSOLIDATED STATEME7
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 | SC | SCCommon Stock and Paid-in Capital | SCNoncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2014 | 530,391,000 | |||||||||
Equity, 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 attributable to Santander Holdings USA, Inc. | 136,906 | 51,490 | 85,416 | |||||||
Comprehensive income attributable to noncontrolling interest | 41,425 | 41,425 | ||||||||
Impact of Santander Consumer USA Holdings Inc. stock option activity | $ 14,811 | $ 14,811 | ||||||||
Stock issued in connection with employee benefit and incentive compensation plans | 547 | 547 | ||||||||
Dividends paid on preferred stock | (3,650) | (3,650) | ||||||||
Ending balance (in shares) at Mar. 31, 2015 | 530,391,000 | |||||||||
Equity, Ending balance at Mar. 31, 2015 | $ 22,917,495 | 195,445 | 14,730,156 | (44,920) | 3,928,183 | 4,108,631 | ||||
Beginning balance (in shares) at Dec. 31, 2015 | 530,391,043 | 530,391,000 | ||||||||
Equity, Beginning balance at Dec. 31, 2015 | $ 19,581,775 | 195,445 | 14,729,566 | (139,641) | 2,351,435 | 2,444,970 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income attributable to Santander Holdings USA, Inc. | 126,739 | 112,962 | 13,777 | |||||||
Other comprehensive income attributable to noncontrolling interest | (15,680) | (15,680) | ||||||||
Comprehensive income attributable to noncontrolling interest | 71,275 | 71,275 | ||||||||
Impact of Santander Consumer USA Holdings Inc. stock option activity | $ 5,254 | $ (13,111) | $ 18,365 | |||||||
Stock issued in connection with employee benefit and incentive compensation plans | 396 | 396 | ||||||||
Dividends paid on preferred stock | $ (3,650) | (3,650) | ||||||||
Ending balance (in shares) at Mar. 31, 2016 | 530,391,043 | 530,391,000 | ||||||||
Equity, Ending balance at Mar. 31, 2016 | $ 19,766,109 | $ 195,445 | $ 14,716,851 | $ (26,679) | $ 2,361,562 | $ 2,518,930 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income including noncontrolling interest | $ 85,052 | $ 126,841 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 882,278 | 1,053,639 |
Deferred tax expense/(benefit) | 53,858 | (71,514) |
Depreciation, amortization and accretion | 212,830 | 100,151 |
Net loss/(gain) on sale of loans | 69,905 | (14,501) |
Net gain on sale of investment securities | (26,431) | (9,557) |
Net loss/(gain) on sale of leased vehicles | 63 | (10,847) |
Other-than-temporary impairment (OTTI) recognized in earnings | 10 | 0 |
Loss on debt extinguishment | 32,872 | 0 |
Net loss on real estate owned and premises and equipment | 1,530 | 364 |
Stock-based compensation | 18,607 | 5,778 |
Equity loss on equity method investments | 4,192 | 7,133 |
Originations of loans held-for-sale, net of repayments | (1,602,886) | (1,190,069) |
Proceeds from sales of loans held-for-sale | 1,263,128 | 905,354 |
Purchases of trading securities | 0 | (390,192) |
Proceeds from sales of trading securities | 0 | 823,801 |
Net change in: | ||
Loans held for sale | (129,330) | 0 |
Other assets and bank-owned life insurance | (181,005) | 330,671 |
Other liabilities | 65,021 | 54,312 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 749,694 | 1,721,364 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sales of available-for-sale investment securities | 3,435,844 | 1,010,515 |
Proceeds from prepayments and maturities of available-for-sale investment securities | 1,034,434 | 827,886 |
Purchases of available-for-sale investment securities | (4,088,989) | (3,940,818) |
Proceeds from sales of other investments | 120,198 | 140,949 |
Purchases of other investments | (74,916) | (153,034) |
Net change in restricted cash | (498,444) | (776,589) |
Proceeds from sales of loans held-for-investment | 934,227 | 410,930 |
Proceeds from the sales of equity method investments | 0 | 14,988 |
Distributions from equity method investments | 1,799 | 1,050 |
Contributions to equity method and other investments | (1,686) | 0 |
Purchases of loans held-for-investment | (39,652) | (57,886) |
Net change in loans other than purchases and sales | (2,119,006) | (3,917,765) |
Purchases of leased vehicles | (1,622,199) | (1,531,304) |
Proceeds from the sale and termination of leased vehicles | 480,604 | 586,664 |
Manufacturer incentives | 335,008 | 308,636 |
Proceeds from sales of real estate owned and premises and equipment | 16,632 | 23,188 |
Purchases of premises and equipment | (97,735) | (39,957) |
NET CASH USED IN INVESTING ACTIVITIES | (2,183,881) | (7,092,547) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in deposits and other customer accounts | 1,350,018 | 1,894,925 |
Net change in short-term borrowings | 500,000 | (3,400,000) |
Net proceeds from long-term borrowings | 13,373,270 | 11,935,538 |
Repayments of long-term borrowings | (10,751,400) | (9,051,010) |
Proceeds from FHLB advances (with terms greater than 3 months) | 2,100,000 | 3,750,000 |
Repayments of FHLB advances (with terms greater than 3 months) | (3,582,872) | (135,000) |
Net change in advance payments by borrowers for taxes and insurance | 59,970 | 54,943 |
Cash dividends paid to preferred stockholders | (3,650) | (3,650) |
Proceeds from the issuance of common stock | 257 | 9,161 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 3,045,593 | 5,054,907 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 1,611,406 | (316,276) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,992,042 | 2,201,783 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 6,603,448 | 1,885,507 |
SUPPLEMENTAL DISCLOSURES | ||
Income taxes paid/(received), net | 23,149 | (237,980) |
Interest paid | 347,289 | 281,952 |
NON-CASH TRANSACTIONS | ||
Loans transferred to other real estate owned | 28,666 | 9,628 |
Loans transferred to repossessed vehicles | 0 | 18,170 |
Loans transferred from held-for-investment to held-for-sale, net | 417,283 | 848,137 |
Unsettled sales of investment securities | $ 176,862 | $ 0 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Introduction Santander Holdings USA, Inc. ("SHUSA") is the parent company (the "Parent Company") of Santander Bank, National Association, (the "Bank" or "SBNA"), a national banking association, and Santander Consumer USA Holdings Inc. (together with its subsidiaries, "SC"), 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, multifamily 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. SC wholly owns Santander Consumer USA Inc., which is headquartered in Dallas, Texas, and is a specialized consumer finance company focused on vehicle finance and third-party servicing. Common shares of SC ("SC Common Stock") are listed for trading on the New York Stock Exchange (the "NYSE") under the trading symbol "SC." Basis of Presentation The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). These Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries, including the Bank, SC, 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 unaudited Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to Securities and Exchange Commission ("SEC") regulations. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. 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 Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Stockholder's Equity and Condensed Consolidated Statements of Cash Flows for the periods indicated, and contain adequate disclosure for a fair presentation of this interim financial information. Significant Accounting Policies Management identified accounting for consolidation, business combinations, the allowance for loan and lease losses and the reserve for unfunded lending commitments, goodwill, derivatives and hedge activities, and income taxes as the Company's critical accounting policies and estimates, in that they are important to the presentation of the Company's financial condition and results of operations and 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/A for the year ended December 31, 2015 . As of March 31, 2016 , with the exception of the items noted in the section "Recently Adopted AccountingPolicies" below, there have been no significant changes to the Company's accounting policies as disclosed in the Annual Report on Form 10-K/A for the year ended December 31, 2015 . NOTE 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES (continued) Recently Adopted Accounting Policies During the first quarter of 2016, the Company adopted the following Financial Accounting Standards Board ("FASB") Accounting Standards Updates ("ASUs"), none of which had a material impact to the Company's Consolidated Financial Statements: • The Company adopted 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) on a prospective basis. This ASU was issued by the FASB in June 2014 and 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 Accounting Standards Codification ("ASC") 718 as it relates to awards with performance conditions that affect vesting should continue to be used to account for such awards. • The Company also adopted ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items on a prospective basis . This ASU was issued by FASB in January 2015 and eliminates the concept of extraordinary items from GAAP, which previously required the separate classification, presentation, and disclosure of extraordinary events and transactions. • The Company also adopted ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis, which the FASB issued in February 2015. This ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, this ASU modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities (VOEs); eliminates the presumption that a general partner should consolidate a limited partnership; potentially changes the consolidation conclusions of reporting entities that are involved with VIEs, in particular those that have fee arrangements and related party arrangements; and provides a scope exception for reporting entities with interests held in certain money market funds and similar unregistered money market funds. As the adoption did not result in any significant impact to the Company’s consolidated financial statements, it did not result in a retrospective or modified retrospective application. • The Company also adopted ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) on a retrospective basis . 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. • The Company also adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments on a prospective basis . This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. 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. Subsequent Events The Company evaluated events from the date of the Condensed Consolidated Financial Statements on March 31, 2016 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 three-month period ended March 31, 2016 other than the transactions disclosed within Note 10 and Note 14 of these Condensed Consolidated Financial Statements . |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | 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 beginning after December 15, 2017. In March 2016, the FASB also issued ASU 2016-08, an amendment to the guidance in ASU 2014-09 which revises the structure of the indicators to provide indicators of when the entity is the principal or agent in a revenue transaction, and eliminated two of the indicators (“the entity’s consideration is in the form of a commission” and “the entity is not exposed to credit risk”) in making that determination. This amendment also clarifies that each indicator may be more or less relevant to the assessment depending on the terms and conditions of the contract. In April 2016, the FASB also issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity's promise to grant a license with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The amendments, collectively, 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 ASU 2014-09 and the related updates to it 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 its 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 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments, except those accounted for under the equity method of accounting or which result in consolidation of the investee, be measured at fair value with changes in the fair value being recorded in net income. However, equity investments that do not have readily determinable fair values will be measured at cost less impairment, if any, plus the effect of changes resulting from observable price transactions in orderly transactions or for the identical or similar investment of the same issuer. The amendment also simplifies the impairment assessment of equity instruments that do not have readily determinable fair values, eliminates the requirement to disclose methods and assumptions used to estimate fair value of instruments measured at their amortized cost on the balance sheet, requires that the disclosed fair values of financial instruments represent "exit price," requires entities to separately present in other comprehensive income the portion of the total change in fair value of a liability resulting from instrument-specific credit risk when the FVO has been elected for that liability, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes, and clarifies that an entity should evaluate the need for a valuation allowance on its deferred tax asset related to its available-for-sale securities in combination with its other deferred tax assets. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2017, with earlier adoption permitted by public entities on a limited basis. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Company is in the process of evaluating the impacts of the adoption of this ASU. NOTE 2. RECENT ACCOUNTING DEVELOPMENTS (continued) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in this update supersedes the current lease accounting guidance for both the lessees and lessors under ASC 840, Leases. The new guidance requires lessees to evaluate whether a lease is a finance lease using criteria that are similar to what lessees use today to determine whether they have a capital lease. Leases not classified as finance leases are classified as operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to today’s guidance for operating leases. The new guidance will require lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2018, with earlier adoption permitted. Adoption of the amendment must be applied on a modified retrospective approach. The Company is in the process of evaluating the impacts of the adoption of this ASU. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The new guidance clarifies that a change in the counterparties to a derivative contract, i.e., a novation, in and of itself, does not require the de-designation of a hedging relationship. An entity will, however, still need to evaluate whether it is probable that the counterparty will perform under the contract as part of its ongoing effectiveness assessment for hedge accounting. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Adoption of the new guidance can be applied on a modified retrospective or prospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. Also in March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments . The new guidance clarifies that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis of hybrid financial instruments. In other words, a contingent put or call option embedded in a debt instrument would be evaluated for possible separate accounting as a derivative instrument without regard to the nature of the exercise contingency. However, as required under existing guidance, companies will still need to evaluate other relevant embedded derivative guidance, such as whether the payoff from the contingent put or call option is adjusted based on changes in an index other than interest rates or credit risk, and whether the debt involves a substantial premium or discount. The new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. The new guidance is required to be adopted on a modified retrospective basis to all existing and future debt instruments. The Company is in the process of evaluating the impacts of the adoption of this ASU. Additionally, in March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323) . The new guidance eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Instead, the equity method of accounting should be applied prospectively from the date significant influence is obtained. Investors should add the cost of acquiring the additional interest in the investee (if any) to the current basis of their previously held interest. The new standard also provides specific guidance for available-for-sale securities that become eligible for the equity method of accounting. In those cases, any unrealized gain or loss recorded within accumulated other comprehensive income should be recognized in earnings at the date the investment initially qualifies for the use of the equity method of accounting. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Adoption of the new guidance can be applied only a prospective basis for investments those qualify for the equity method of accounting after the effective date. The Company is in the process of evaluating the impacts of the adoption of this ASU. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . The new guidance simplifies certain aspects related to income taxes, SCF, and forfeitures when accounting for share-based payment transactions. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Certain of the amendments related to timing of the recognition of tax benefits and tax withholding requirements should be applied using a modified retrospective transition method. Amendments related to the presentation of the SCF should be applied retrospectively. All other provisions may be applied on a prospective or modified retrospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 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: March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 349,274 $ 468 $ — $ 349,742 Corporate debt securities 1,417,264 15,972 (3,646 ) 1,429,590 Asset-backed securities ("ABS") 2,038,606 9,621 (1,648 ) 2,046,579 Equity securities 10,964 5 (282 ) 10,687 State and municipal securities 21,278 349 — 21,627 Mortgage-backed securities ("MBS"): U.S. government agencies - Residential 5,871,610 51,967 (18,121 ) 5,905,456 U.S. government agencies - Commercial 1,094,751 16,994 (1,992 ) 1,109,753 FHLMC and FNMA - Residential debt securities (1) 9,498,678 80,842 (60,101 ) 9,519,419 FHLMC and FNMA - Commercial debt securities 137,804 2,749 (327 ) 140,226 Non-agency securities 37 — — 37 Total investment securities available-for-sale $ 20,440,266 $ 178,967 $ (86,117 ) $ 20,533,116 (1) Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 3,192,411 $ 1,658 $ (5,681 ) $ 3,188,388 Corporate debt securities 1,476,801 10,021 (11,248 ) 1,475,574 Asset-backed securities 1,763,178 7,826 (1,494 ) 1,769,510 Equity securities 10,894 1 (408 ) 10,487 State and municipal securities 748,696 19,616 (432 ) 767,880 Mortgage-backed securities: U.S. government agencies - Residential 4,033,041 10,225 (36,513 ) 4,006,753 U.S. government agencies - Commercial 1,006,161 3,347 (7,153 ) 1,002,355 FHLMC and FNMA - Residential debt securities 8,636,745 10,556 (153,128 ) 8,494,173 FHLMC and FNMA - Commercial debt securities 138,094 723 (2,487 ) 136,330 Non-agency securities 45 — — 45 Total investment securities available-for-sale $ 21,006,066 $ 63,973 $ (218,544 ) $ 20,851,495 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. As of March 31, 2016 and December 31, 2015 , the Company had investment securities available-for-sale with an estimated fair value of $7.5 billion and $3.5 billion , respectively, pledged as collateral, which was comprised of the following: $4.3 billion and $2.9 billion , respectively, were pledged to secure public fund deposits; $2.7 billion and $117.6 million , respectively, were pledged at various independent parties ("Brokers") to secure repurchase agreements, support hedging relationships, and for recourse on loan sales; and $459.0 million and $395.8 million , respectively, were pledged to secure the Company's customer overnight sweep product. NOTE 3. INVESTMENT SECURITIES (continued) At March 31, 2016 and December 31, 2015 , the Company had $54.9 million and $65.1 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. In March 2016, the Company decided to sell a significant portion of the municipal bond portfolio to reduce non-high quality liquid assets (non-HQLA), reduce investments to coincide with lower deposit balances and take gains to help cover the early terminations charges taken on FHLB advances. Contractual Maturity of Debt Securities Contractual maturities of the Company’s debt securities available-for-sale at March 31, 2016 are as follows: Amortized Cost Fair Value (in thousands) Due within one year $ 545,999 $ 547,001 Due after 1 year but within 5 years 3,073,546 3,094,514 Due after 5 years but within 10 years 318,364 320,688 Due after 10 years 16,491,393 16,560,226 Total $ 20,429,302 $ 20,522,429 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 March 31, 2016 and December 31, 2015 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: March 31, 2016 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 $ 261,839 $ (1,900 ) $ 174,222 $ (1,746 ) $ 436,061 $ (3,646 ) Asset-backed securities 260,657 (1,037 ) 67,243 (611 ) 327,900 (1,648 ) Equity securities 293 (2 ) 9,900 (280 ) 10,193 (282 ) Mortgage-backed securities: U.S. government agencies - Residential 762,829 (9,966 ) 733,921 (8,155 ) 1,496,750 (18,121 ) U.S. government agencies - Commercial 6,109 (28 ) 113,681 (1,964 ) 119,790 (1,992 ) FHLMC and FNMA - Residential debt securities 814,228 (3,550 ) 2,075,785 (56,551 ) 2,890,013 (60,101 ) FHLMC and FNMA - Commercial debt securities 23,855 (327 ) — — 23,855 (327 ) Total $ 2,129,810 $ (16,810 ) $ 3,174,752 $ (69,307 ) $ 5,304,562 $ (86,117 ) NOTE 3. INVESTMENT SECURITIES (continued) December 31, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities $ 2,243,343 $ (5,681 ) $ — $ — $ 2,243,343 $ (5,681 ) Corporate debt securities 775,366 (5,269 ) 152,486 (5,979 ) 927,852 (11,248 ) Asset-backed securities 300,869 (1,083 ) 35,126 (411 ) 335,995 (1,494 ) Equity securities 596 (7 ) 9,748 (401 ) 10,344 (408 ) State and municipal securities 15,665 (119 ) 26,024 (313 ) 41,689 (432 ) Mortgage-backed securities: U.S. government agencies - Residential 1,670,150 (11,164 ) 954,916 (25,349 ) 2,625,066 (36,513 ) U.S. government agencies - Commercial 367,706 (3,382 ) 114,038 (3,771 ) 481,744 (7,153 ) FHLMC and FNMA - Residential debt securities 4,650,327 (38,013 ) 2,127,962 (115,115 ) 6,778,289 (153,128 ) FHLMC and FNMA - Commercial debt securities 115,347 (2,487 ) — — 115,347 (2,487 ) Total $ 10,139,369 $ (67,205 ) $ 3,420,300 $ (151,339 ) $ 13,559,669 $ (218,544 ) OTTI Management evaluates all investment securities 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 ("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. The Company did not record any material OTTI in earnings related to its investment securities in the three-month periods ended March 31, 2016 or March 31, 2015 . Management has concluded that the unrealized losses on its debt and equity securities for which it has not recognized OTTI (which were comprised of 230 individual securities at March 31, 2016 ) 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 for the Company's debt securities, may be at maturity. Accordingly, the Company has concluded that the impairment on these securities is not other-than-temporary. NOTE 3. INVESTMENT SECURITIES (continued) 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 2016 2015 (in thousands) Proceeds from the sales of available-for-sale securities $ 3,435,844 $ 1,010,515 Gross realized gains $ 26,707 $ 10,782 Gross realized (losses) (276 ) (1,225 ) OTTI (10 ) — Net realized gains $ 26,421 $ 9,557 The Company uses the specific identification method to determine the cost of the securities sold and the gain or loss recognized. The Company recognized $26.4 million and $9.6 million for the three-month periods ended March 31, 2016 and March 31, 2015 , respectively, in net gains on sale of investment securities as a result of overall balance sheet and interest rate risk management. The net gain realized for the three-month period ended March 31, 2016 was primarily comprised of the sale of state and municipal securities with a book value of $726.8 million for a gain of $19.5 million and the sale of U.S. Treasury securities with a book value of $2.8 billion for a gain of $6.7 million . The net gain realized for the three-month period ended March 31, 2015 was primarily comprised of the sale of state and municipal securities with a book value of $305.4 million for a gain of $9.2 million . Other Investments Other investments primarily include the Company's investment in the stock of the FHLB of Pittsburgh and the Federal Reserve Bank (the "FRB") with aggregate carrying amounts of $952.6 million and $997.9 million as of March 31, 2016 and December 31, 2015 , 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 period ended March 31, 2016 , the Company purchased $74.9 million of FHLB stock at par, and redeemed $120.2 million of FHLB stock at par. There was no gain or loss associated with these redemptions. Other investments also include $25.9 million and $26.4 million of low income housing tax credit ("LIHTC") investments as of March 31, 2016 and December 31, 2015 , respectively. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | =640 3,170,551 11.9 % 3,004,854 11.8 % Total $ 26,727,331 100.0 % $ 25,553,507 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RIC and auto loans include $1.3 billion and $905.7 million of LHFS at March 31, 2016 and December 31, 2015 , respectively that do not have an allowance. Consumer Lending Asset Quality Indicators-FICO ® and Loan-to-Value ("LTV") For both residential and home equity loans, loss severity assumptions are incorporated in the loan and lease loss reserve models to estimate loan balances that will ultimately charge-off. These assumptions are based on recent loss experience within various current LTV bands within these portfolios. LTVs are refreshed quarterly by applying Federal Housing Finance Agency Home Price Index changes at a state-by-state level to the last known appraised value of the property to estimate the current LTV. The Company's ALLL incorporates the refreshed LTV information to update the distribution of defaulted loans by LTV as well as the associated loss given default for each LTV band. Reappraisals on a recurring basis at the individual property level are not considered cost-effective or necessary; however, reappraisals are performed on certain higher risk accounts to support line management activities, default servicing decisions, or when other situations arise for which the Company believes the additional expense is warranted. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Residential mortgage and home equity financing receivables by LTV and FICO ® range are summarized as follows: Residential Mortgages (1)(3) March 31, 2016 N/A (2) LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (2) $ 434,206 $ 13,447 $ 1,273 $ — $ — $ — $ — $ 448,926 <600 124 221,524 61,470 26,279 19,021 9,100 10,509 348,027 600-639 53 150,320 40,977 22,786 13,105 4,091 6,845 238,177 640-679 66 257,146 97,181 39,952 39,929 8,262 10,465 453,001 680-719 84 464,194 167,379 62,961 48,935 7,942 18,479 769,974 720-759 108 673,413 336,181 65,824 54,597 10,846 19,882 1,160,851 >=760 345 2,061,656 750,250 111,211 57,432 18,473 20,795 3,020,162 Grand Total $ 434,986 $ 3,841,700 $ 1,454,711 $ 329,013 $ 233,019 $ 58,714 $ 86,975 $ 6,439,118 (1) Includes LHFS. (2) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (3) Allowance model considers LTV for financing receivables in first lien position for the Company and combined LTV ("CLTV") for financing receivables in second lien position for the Company. Home Equity Loans and Lines of Credit (2) March 31, 2016 N/A (1) LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (1) $ 189,921 $ 553 $ 919 $ — $ — $ 191,393 <600 10,979 150,526 75,867 21,222 20,745 279,339 600-639 8,447 138,913 83,320 20,173 12,142 262,995 640-679 11,587 252,008 175,327 31,474 25,246 495,642 680-719 11,691 430,595 322,550 55,127 30,885 850,848 720-759 10,456 613,886 428,576 62,879 39," id="sjs-B4" xml:space="preserve"> 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 $54.5 billion at March 31, 2016 and $59.3 billion at December 31, 2015 . NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Loans that the Company intends to sell are classified as loans held-for-sale ("LHFS"). The LHFS portfolio balance at March 31, 2016 was $2.5 billion , compared to $3.2 billion at December 31, 2015 . LHFS in the 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 . During the third quarter of 2015, the Company determined that it no longer intended to hold certain personal lending assets at SC for investment. The Company adjusted the ACL associated with SC'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 SC’s personal lending platform will also be classified as held for sale. As of March 31, 2016 , the carrying value of the personal unsecured held-for-sale portfolio was $978.8 million . On February 1, 2016 , SC completed the sale of assets from the personal unsecured held-for-sale portfolio to a third party for an immaterial gain to unpaid principal balance. The balance of the loans associated with this sale was $869.3 million . 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 March 31, 2016 and December 31, 2015 , accrued interest receivable on the Company's loans was $501.5 million and $521.1 million , respectively. Loan and Lease Portfolio Composition The following table presents the composition of the gross loans and leases held-for-investment by type of loan and by fixed and variable rates at the dates indicated: March 31, 2016 December 31, 2015 Amount Percent Amount Percent (in thousands) Commercial loans held-for-investment: Commercial real estate loans $ 9,315,291 11.5 % $ 8,722,917 11.0 % Commercial and industrial loans 20,336,828 25.1 % 19,787,834 24.9 % Multifamily loans 9,330,482 11.5 % 9,438,463 11.9 % Other commercial (2) 2,739,515 3.4 % 2,676,506 3.4 % Total commercial loans held-for-investment 41,722,116 51.5 % 40,625,720 51.2 % Consumer loans secured by real estate: Residential mortgages 6,219,967 7.7 % 6,230,995 7.8 % Home equity loans and lines of credit 6,103,844 7.5 % 6,151,232 7.7 % Total consumer loans secured by real estate 12,323,811 15.2 % 12,382,227 15.5 % Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated 20,088,220 24.8 % 18,539,588 23.4 % Retail installment contracts and auto loans - purchased 5,293,741 6.4 % 6,108,210 7.7 % Personal unsecured loans 693,328 0.9 % 685,467 0.9 % Other consumer (3) 973,026 1.2 % 1,032,580 1.3 % Total consumer loans 39,372,126 48.5 % 38,748,072 48.8 % Total loans held-for-investment (1) $ 81,094,242 100.0 % $ 79,373,792 100.0 % Total loans held-for-investment: Fixed rate $ 47,394,655 58.4 % $ 46,721,562 58.9 % Variable rate 33,699,587 41.6 % 32,652,230 41.1 % Total loans held-for-investment (1) $ 81,094,242 100.0 % $ 79,373,792 100.0 % (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 increase in the loan balances of $252.1 million and $26.3 million as of March 31, 2016 and December 31, 2015 , 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. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) 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. The Company utilizes an alternate categorization, compared to the financial statement categorization of loans, 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. 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 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" includes non-real estate-related commercial and industrial loans. "Multifamily" represents loans for multifamily residential housing units. “Other commercial” primarily represents the CEVF business. The following table reconciles the Company's recorded investment classified by its major portfolio classifications to its commercial loan classifications utilized in its determination of the allowance for loan and lease losses ("ALLL") and other credit quality disclosures at March 31, 2016 and December 31, 2015 , respectively: Commercial Portfolio Segment (2) Major Loan Classifications (1) March 31, 2016 December 31, 2015 (in thousands) Commercial loans held for investment: Commercial real estate: Corporate Banking $ 2,959,176 $ 2,949,089 Middle Market Real Estate 4,855,085 4,223,359 Santander Real Estate Capital 1,501,030 1,550,469 Total commercial real estate 9,315,291 8,722,917 Commercial and industrial (3) 20,336,828 19,787,834 Multifamily 9,330,482 9,438,463 Other commercial 2,739,515 2,676,506 Total commercial loans held-for-investment $ 41,722,116 $ 40,625,720 (1) These represent the Company's loan categories based on the Securities and Exchange Commission (the "SEC's") Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its ALLL. (3) Commercial and industrial loans had no LHFS at March 31, 2016 and excluded $86.4 million of LHFS at December 31, 2015 . 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. "RIC and auto loans" includes the Company's direct automobile loan portfolios, but excludes RV and marine RICs. "Personal unsecured loans" includes personal revolving loans and credit cards. “Other consumer” includes an acquired portfolio of marine RICs 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 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Portfolio Segment (2) Major Loan Classifications (1) March 31, 2016 December 31, 2015 (in thousands) Consumer loans secured by real estate: Residential mortgages (3) $ 6,219,967 $ 6,230,995 Home equity loans and lines of credit 6,103,844 6,151,232 Total consumer loans secured by real estate 12,323,811 12,382,227 Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated (4) 20,088,220 18,539,588 Retail installment contracts and auto loans - purchased (4) 5,293,741 6,108,210 Personal unsecured loans (5) 693,328 685,467 Other consumer 973,026 1,032,580 Total consumer loans held-for-investment $ 39,372,126 $ 38,748,072 (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 ALLL. (3) Residential mortgages exclude $219.2 million and $236.8 million of LHFS at March 31, 2016 and December 31, 2015 , respectively. (4) RIC and auto loans exclude $1.3 billion and $905.7 million of LHFS at March 31, 2016 and December 31, 2015 , respectively. (5) Personal unsecured loans exclude $1.0 billion and $2.0 billion of LHFS at March 31, 2016 and December 31, 2015 , respectively. 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: March 31, 2016 December 31, 2015 (in thousands) RICs - Purchased: UPB (1) $ 5,808,885 $ 6,709,748 UPB - FVO (2) 100,588 140,995 Total UPB 5,909,473 6,850,743 Purchase Marks (3) (615,732 ) (742,533 ) Total RICs - Purchased 5,293,741 6,108,210 RICs - Originated: UPB (1) 20,615,741 19,069,801 Net discount (545,071 ) (548,057 ) Total RICs - Originated 20,070,670 18,521,744 SBNA auto loans 17,550 17,844 Total RICs originated post-change in control 20,088,220 18,539,588 Total RICs and auto loans $ 25,381,961 $ 24,647,798 (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 $22.7 million and $33.1 million as of March 31, 2016 and December 31, 2015, respectively, related to purchased loan portfolios on which we elected to apply the FVO. NOTE 4. 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 periods ended March 31, 2016 and 2015 was as follows: Three-Month Period Ended March 31, 2016 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 435,717 $ 2,679,666 $ 45,328 $ 3,160,711 Provision for loan and lease losses 111,034 746,633 — 857,667 Charge-offs (40,315 ) (1,129,413 ) — (1,169,728 ) Recoveries 25,414 606,539 — 631,953 Charge-offs, net of recoveries (14,901 ) (522,874 ) — (537,775 ) Allowance for loan and lease losses, end of period $ 531,850 $ 2,903,425 $ 45,328 $ 3,480,603 Reserve for unfunded lending commitments, beginning of period $ 147,397 $ — $ — $ 147,397 Provision for unfunded lending commitments 24,611 — — 24,611 Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 172,008 — — 172,008 Total allowance for credit losses, end of period $ 703,858 $ 2,903,425 $ 45,328 $ 3,652,611 Ending balance, individually evaluated for impairment (1) $ 129,399 $ 1,009,528 $ — $ 1,138,927 Ending balance, collectively evaluated for impairment 402,451 1,893,896 45,328 2,341,675 Financing receivables: Ending balance $ 41,722,116 $ 41,915,467 $ — $ 83,637,583 Ending balance, evaluated under the fair value option or lower of cost or fair value (2) — 2,829,151 — 2,829,151 Ending balance, individually evaluated for impairment (1) 638,617 4,435,725 — 5,074,342 Ending balance, collectively evaluated for impairment 41,083,499 34,650,591 — 75,734,090 (1) Consists primarily of loans in TDR status (2) Represents LHFS and those loans for which the Company has elected the FVO. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three-Month Period Ended March 31, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 401,553 $ 1,267,025 $ 33,024 $ 1,701,602 Provision for loan and lease losses 24,801 995,563 38,275 1,058,639 Other (1) — (27,117 ) — (27,117 ) Charge-offs (19,339 ) (942,975 ) — (962,314 ) Recoveries 5,999 504,478 — 510,477 Charge-offs, net of recoveries (13,340 ) (438,497 ) — (451,837 ) Allowance for loan and lease losses, end of period $ 413,014 $ 1,796,974 $ 71,299 $ 2,281,287 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 127,641 — — 127,641 Total allowance for credit losses, end of period $ 540,655 $ 1,796,974 $ 71,299 $ 2,408,928 Ending balance, individually evaluated for impairment (2) $ 78,665 $ 286,453 $ — $ 365,118 Ending balance, collectively evaluated for impairment 334,349 1,510,521 71,299 1,916,169 Financing receivables: Ending balance $ 38,335,323 $ 41,465,532 $ — $ 79,800,855 Ending balance, evaluated under the fair value option or lower of cost or fair value (3) 44,325 1,993,666 — 2,037,991 Ending balance, individually evaluated for impairment (2) 478,179 3,020,216 — 3,498,395 Ending balance, collectively evaluated for impairment 37,812,819 36,451,650 — 74,264,469 (1) The "Other" amount represents the impact on the ALLL in connection with SC classifying approximately $1.0 billion of RICs as held-for-sale during the first quarter of 2015. (2) Consists primarily of loans in TDR status. (3) Represents LHFS and those loans for which the Company has elected the FVO. 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 March 31, 2016 Purchased Originated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 590,807 $ 1,891,989 $ 2,482,796 Provision for / (Release of) loan and lease losses 73,635 674,420 748,055 Other — — — Charge-offs (264,792 ) (825,080 ) (1,089,872 ) Recoveries 189,457 395,941 585,398 Charge-offs, net of recoveries (75,335 ) (429,139 ) (504,474 ) Allowance for loan and lease losses, end of period $ 589,107 $ 2,137,270 $ 2,726,377 NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three Month Period Ended March 31, 2015 Purchased Originated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 963 $ 709,024 $ 709,987 Provision for / (Release of) loan and lease losses 498,905 380,138 879,043 Other (27,117 ) — (27,117 ) Charge-offs (487,624 ) (319,002 ) (806,626 ) Recoveries 334,104 149,993 484,097 Charge-offs, net of recoveries (153,520 ) (169,009 ) (322,529 ) Allowance for loan and lease losses, end of period $ 319,231 $ 920,153 $ 1,239,384 Non-accrual loans by Class of Financing Receivable The recorded investment in non-accrual loans disaggregated by class of financing receivables and other non-performing assets is summarized as follows: March 31, 2016 December 31, 2015 (in thousands) Non-accrual loans: Commercial: Commercial real estate: Corporate banking $ 86,397 $ 71,979 Middle market commercial real estate 69,249 37,745 Santander real estate capital 2,754 3,454 Commercial and industrial 249,463 85,745 Multifamily 4,855 9,162 Other commercial 2,959 2,982 Total commercial loans 415,677 211,067 Consumer: Residential mortgages 168,212 173,780 Home equity loans and lines of credit 123,883 127,171 Retail installment contracts and auto loans - originated 541,565 701,785 Retail installment contracts and auto loans - purchased 262,233 417,276 Personal unsecured loans 400 895 Other consumer 16,474 23,125 Total consumer loans 1,112,767 1,444,032 Total non-accrual loans 1,528,444 1,655,099 Other real estate owned ("OREO") 36,981 38,959 Repossessed vehicles 188,744 172,375 Foreclosed and other repossessed assets 1,821 374 Total OREO and other repossessed assets 227,546 211,708 Total non-performing assets $ 1,755,990 $ 1,866,807 NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Age Analysis of Past Due Loans For reporting of past due loans, a payment of 90% or more of the amount due will be considered to meet the contractual requirements. For the majority of RICs, the Company considers 50% of a single payment due sufficient to qualify as a payment for past due classification purposes. The Company aggregates partial payments in determination of whether a full payment has been missed in computing past due status. 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 March 31, 2016 30-89 Greater Total Current Total (1) Recorded Investment (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,862 $ 31,754 $ 50,616 $ 2,908,560 $ 2,959,176 $ — Middle market commercial real estate 39,964 18,014 57,978 4,797,107 4,855,085 — Santander real estate capital 10,240 — 10,240 1,490,790 1,501,030 — Commercial and industrial 54,518 38,407 92,925 20,243,903 20,336,828 — Multifamily 2,117 284 2,401 9,328,081 9,330,482 — Other commercial 7,185 982 8,167 2,731,348 2,739,515 — Consumer: Residential mortgages 122,560 138,503 261,063 6,178,055 6,439,118 — Home equity loans and lines of credit 28,548 77,532 106,080 5,997,764 6,103,844 — Retail installment contracts and auto loans - originated 1,773,921 158,701 1,932,622 19,500,968 21,433,590 — Retail installment contracts and auto loans - purchased 887,473 64,310 951,783 4,341,958 5,293,741 — Personal unsecured loans 79,949 77,102 157,051 1,515,097 1,672,148 72,878 Other consumer 33,103 25,231 58,334 914,692 973,026 — Total $ 3,058,440 $ 630,820 $ 3,689,260 $ 79,948,323 $ 83,637,583 $ 72,878 (1) Financing receivables include LHFS. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) As of December 31, 2015 30-89 Greater Total Current Total (1) Recorded (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,085 $ 30,000 $ 48,085 $ 2,901,004 $ 2,949,089 $ — Middle market commercial real estate 575 21,063 21,638 4,201,721 4,223,359 — Santander real estate capital — 654 654 1,549,815 1,550,469 — Commercial and industrial 31,067 44,032 75,099 19,799,134 19,874,233 — Multifamily 2,951 4,537 7,488 9,430,975 9,438,463 — Other commercial 3,968 2,079 6,047 2,670,459 2,676,506 — Consumer: Residential mortgages 140,323 142,510 282,833 6,184,922 6,467,755 — Home equity loans and lines of credit 28,166 79,715 107,881 6,043,351 6,151,232 — Retail installment contracts and auto loans - originated 2,149,480 212,569 2,362,049 17,083,248 19,445,297 — Retail installment contracts and auto loans - purchased 1,242,545 109,258 1,351,803 4,756,407 6,108,210 — Personal unsecured loans 78,741 83,686 162,427 2,477,454 2,639,881 79,729 Other consumer 41,667 32,573 74,240 958,340 1,032,580 — Total $ 3,737,568 $ 762,676 $ 4,500,244 $ 78,056,830 $ 82,557,074 $ 79,729 (1) Financing receivables include LHFS. NOTE 4. 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: March 31, 2016 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 34,657 $ 37,396 $ — $ 37,750 Middle market commercial real estate 77,307 122,255 — 77,816 Santander real estate capital 2,754 2,754 — 2,785 Commercial and industrial 5,360 6,636 — 4,498 Multifamily 13,525 14,537 — 11,496 Other commercial 193 193 — 216 Consumer: Residential mortgages 68,860 68,860 — 47,834 Home equity loans and lines of credit 52,211 52,211 — 41,646 Retail installment contracts and auto loans - originated 12 12 — 14 Retail installment contracts and auto loans - purchased 61,649 78,831 — 68,674 Personal unsecured loans (2) 19,775 19,775 — 16,320 Other consumer 19,800 24,026 — 16,148 With an allowance recorded: Commercial: Commercial real estate: Corporate banking 41,908 43,172 7,814 36,642 Middle market commercial real estate 73,054 83,875 13,100 55,550 Santander real estate capital — — — 327 Commercial and industrial 310,338 315,312 108,141 211,848 Multifamily 4,285 4,290 233 4,969 Other commercial 624 1,077 111 1,920 Consumer: Residential mortgages 131,665 159,330 25,157 151,965 Home equity loans and lines of credit 51,512 66,348 4,242 61,680 Retail installment contracts and auto loans - originated 1,687,960 1,727,498 509,735 1,506,968 Retail installment contracts and auto loans - purchased 2,324,690 2,627,273 466,941 2,389,399 Personal unsecured loans 1,607 2,838 421 1,723 Other consumer 14,567 18,996 3,032 16,615 Total: Commercial $ 564,005 $ 631,497 $ 129,399 $ 445,817 Consumer 4,434,308 4,845,998 1,009,528 4,318,986 Total $ 4,998,313 $ 5,477,495 $ 1,138,927 $ 4,764,803 (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 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) The Company recognized interest income, not including the impact of purchase accounting adjustments, of $176.5 million for the three-month period ended March 31, 2016 on approximately $4.2 billion of TDRs that were returned to performing status as of March 31, 2016 . December 31, 2015 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 40,843 $ 43,582 $ — $ 39,289 Middle market commercial real estate 78,325 123,495 — 103,059 Santander real estate capital 2,815 2,815 — 2,899 Commercial and industrial 3,635 5,046 — 5,780 Multifamily 9,467 10,488 — 15,980 Other commercial 239 239 — 164 Consumer: Residential mortgages 26,808 26,808 — 25,108 Home equity loans and lines of credit 31,080 31,080 — 29,155 Retail installment contracts and auto loans - originated 15 15 — 8 Retail installment contracts and auto loans - purchased 75,698 96,768 — 931,411 Personal unsecured loans 12,865 12,865 — 6,729 Other consumer 12,495 16,002 — 9,048 With an allowance recorded: Commercial: Corporate banking 31,376 32,650 6,413 45,663 Middle market commercial real estate 38,046 43,745 5,624 49,072 Santander real estate capital 654 782 98 2,266 Commercial and industrial 113,358 142,308 35,184 88,771 Multifamily 5,653 5,658 443 5,816 Other commercial 3,216 4,465 749 2,574 Consumer: Residential mortgages 172,265 200,176 25,034 151,539 Home equity loans and lines of credit 71,847 86,355 3,757 65,990 Retail installment contracts and auto loans - originated 1,325,975 1,359,585 408,208 691,244 Retail installment contracts and auto loans - purchased 2,454,108 2,773,536 454,926 1,227,054 Personal unsecured loans 1,839 2,226 430 9,158 Other consumer 18,663 23,790 3,225 17,479 Total: Commercial $ 327,627 $ 415,273 $ 48,511 $ 361,333 Consumer 4,203,658 4,629,206 895,580 3,163,923 Total $ 4,531,285 $ 5,044,479 $ 944,091 $ 3,525,256 (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 $439.6 million for the year ended December 31, 2015 on approximately $3.8 billion of TDRs that were returned to performing status as of December 31, 2015 . NOTE 4. 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 Company 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 March 31, 2016 Corporate Middle Santander Commercial and industrial Multifamily Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,675,141 $ 4,621,615 $ 1,401,131 $ 18,884,555 $ 9,094,426 $ 2,702,806 $ 39,379,674 Special Mention 80,161 80,253 71,246 587,511 169,933 12,441 1,001,545 Substandard 190,974 98,361 28,652 833,213 65,717 23,698 1,240,615 Doubtful 12,901 54,856 — 31,549 406 570 100,282 Total commercial loans $ 2,959,177 $ 4,855,085 $ 1,501,029 $ 20,336,828 $ 9,330,482 $ 2,739,515 $ 41,722,116 (1) Financing receivables include LHFS. Commercial Real Estate December 31, 2015 Corporate Middle Santander Commercial and industrial Multifamily Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,627,159 $ 4,055,623 $ 1,363,031 $ 18,881,150 $ 9,114,466 $ 2,631,935 $ 38,673,364 Special Mention 99,090 29,620 144,597 492,128 249,165 28,686 1,043,286 Substandard 208,785 117,571 42,187 467,983 74,410 15,601 926,537 Doubtful 14,055 20,545 654 32,972 422 284 68,932 Total commercial loans $ 2,949,089 $ 4,223,359 $ 1,550,469 $ 19,874,233 $ 9,438,463 $ 2,676,506 $ 40,712,119 (1) Financing receivables include LHFS. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Consumer Lending Asset Quality Indicators-Credit Score In early 2015 , the Company increased its origination volume of RICs to borrowers with limited credit bureau attributes, such as less than 36 months of history or less than four trade lines. For these borrowers, many of whom do not have a FICO ® score, other factors, such as the LexisNexis risk view score, LTV ratio, and payment-to-income ratio, are utilized to assign an internal credit score. Origination volume of these RICs was $944.0 million for the three-month period ended March 31, 2016 . The Company's credit loss allowance forecasting models are not calibrated for this higher concentration of RICs with limited bureau attributes and, accordingly, as of March 31, 2016 , the Company recorded a qualitative adjustment of $193.3 million , increasing the allowance ratio on individually acquired RICs by 0.7% of unpaid principal balance. This adjustment was necessary to increase the ACL for additional charge-offs expected on this portfolio, based on loss performance information available to date, which evidences higher losses in the first months after origination for these RICs in comparison to RICs with standard credit bureau attributes. Consumer financing receivables for which either an internal or external credit score is a core component of the allowance model are summarized by credit score as follows: March 31, 2016 December 31, 2015 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Retail installment contracts and auto loans (3) Percent (in thousands) No FICO ®(1) $ 4,660,293 17.4 % $ 4,913,606 19.2 % <600 14,356,257 53.7 % 13,374,065 52.3 % 600-639 4,540,230 17.0 % 4,260,982 16.7 % >=640 3,170,551 11.9 % 3,004,854 11.8 % Total $ 26,727,331 100.0 % $ 25,553,507 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RIC and auto loans include $1.3 billion and $905.7 million of LHFS at March 31, 2016 and December 31, 2015 , respectively that do not have an allowance. Consumer Lending Asset Quality Indicators-FICO ® and Loan-to-Value ("LTV") For both residential and home equity loans, loss severity assumptions are incorporated in the loan and lease loss reserve models to estimate loan balances that will ultimately charge-off. These assumptions are based on recent loss experience within various current LTV bands within these portfolios. LTVs are refreshed quarterly by applying Federal Housing Finance Agency Home Price Index changes at a state-by-state level to the last known appraised value of the property to estimate the current LTV. The Company's ALLL incorporates the refreshed LTV information to update the distribution of defaulted loans by LTV as well as the associated loss given default for each LTV band. Reappraisals on a recurring basis at the individual property level are not considered cost-effective or necessary; however, reappraisals are performed on certain higher risk accounts to support line management activities, default servicing decisions, or when other situations arise for which the Company believes the additional expense is warranted. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Residential mortgage and home equity financing receivables by LTV and FICO ® range are summarized as follows: Residential Mortgages (1)(3) March 31, 2016 N/A (2) LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (2) $ 434,206 $ 13,447 $ 1,273 $ — $ — $ — $ — $ 448,926 <600 124 221,524 61,470 26,279 19,021 9,100 10,509 348,027 600-639 53 150,320 40,977 22,786 13,105 4,091 6,845 238,177 640-679 66 257,146 97,181 39,952 39,929 8,262 10,465 453,001 680-719 84 464,194 167,379 62,961 48,935 7,942 18,479 769,974 720-759 108 673,413 336,181 65,824 54,597 10,846 19,882 1,160,851 >=760 345 2,061,656 750,250 111,211 57,432 18,473 20,795 3,020,162 Grand Total $ 434,986 $ 3,841,700 $ 1,454,711 $ 329,013 $ 233,019 $ 58,714 $ 86,975 $ 6,439,118 (1) Includes LHFS. (2) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (3) Allowance model considers LTV for financing receivables in first lien position for the Company and combined LTV ("CLTV") for financing receivables in second lien position for the Company. Home Equity Loans and Lines of Credit (2) March 31, 2016 N/A (1) LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (1) $ 189,921 $ 553 $ 919 $ — $ — $ 191,393 <600 10,979 150,526 75,867 21,222 20,745 279,339 600-639 8,447 138,913 83,320 20,173 12,142 262,995 640-679 11,587 252,008 175,327 31,474 25,246 495,642 680-719 11,691 430,595 322,550 55,127 30,885 850,848 720-759 10,456 613,886 428,576 62,879 39, |
LEASED VEHICLES, NET
LEASED VEHICLES, NET | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
LEASED VEHICLES, NET | LEASED VEHICLES, NET (As Restated) The Company has operating leases which 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 the Company with Fiat Chrysler Automobiles US LLC ("FCA"), formerly Chrysler Group LLC, to be a preferred lender (the "Chrysler Agreement"). Under the Chrysler Agreement, the Company had the first right to review and approve all prime Chrysler Capital consumer vehicle lease applications. SC provides servicing on all leases originated under this agreement. Leased vehicles, net consisted of the following as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (in thousands) Leased vehicles $ 12,255,737 $ 11,297,752 Origination fees and other costs 30,127 29,800 Manufacturer subvention payments, net of accretion (1,153,959 ) (1,048,713 ) Leased vehicles, gross 11,131,905 10,278,839 Less: accumulated depreciation (2,172,677 ) (1,901,004 ) Leased vehicles, net $ 8,959,228 $ 8,377,835 During the first quarter of 2016 , the Company did not execute any bulk sales of leases originated under the Chrysler Capital program ("Chrysler Capital"), the trade name used in providing services under the Chrysler Agreement. During the first quarter of 2015 , the Company executed a bulk sale of leases originated under the Chrysler Capital program with depreciated net capitalized costs of $561.3 million and a net book value of $488.9 million to a third party. The bulk sales agreement included certain provisions under which SC agreed to share in residual losses for lease terminations with losses over a specific percentage threshold. SC retained servicing on the leases sold. Due to the accelerated depreciation permitted for tax purposes, this sale generated large taxable gain that SC deferred through a qualified like-kind exchange program. An immaterial amount of taxable gain that did not qualify for deferral was 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 March 31, 2016 (in thousands): Remainder of 2016 $ 1,280,280 2017 1,140,764 2018 445,015 2019 24,175 2020 50 Total $ 2,890,284 Lease income and expense for the three-month period ended March 31, 2016 were $421.5 million and $292.9 million , respectively, compared to $313.3 million and $240.9 million , respectively, for the three-month period ended March 31, 2015 . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity and Securitizations [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES (As Restated) VIEs The Company transfers RICs and leases into newly-formed securitization trusts ("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 RIC. 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 RICs and leased vehicles and interest expense on the debt, and records a provision for loan and lease 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. The Company 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 VIEs 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: March 31, 2016 December 31, 2015 (in thousands) Assets Restricted cash $ 1,982,611 $ 1,842,877 Loans (1) 23,213,909 23,494,541 Leased vehicles, net 7,277,220 6,497,310 Various other assets 589,279 630,017 Total Assets $ 33,063,019 $ 32,464,745 Liabilities Notes payable $ 30,515,797 $ 30,628,837 Various other liabilities 85,111 85,844 Total Liabilities $ 30,600,908 $ 30,714,681 (1) Includes $1.3 billion and $1.5 billion of RICs held for sale at March 31, 2016 and December 31, 2015 , respectively. 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 March 31, 2016 and December 31, 2015 , the Company was servicing $27.9 billion and $ 27.3 billion , respectively, of RICs that have been transferred to consolidated Trusts. The remainder of the Company’s RICs remains unpledged. NOTE 6. VARIABLE INTEREST ENTITIES (As Restated) (continued) Below is a summary of the cash flows received from the Trusts for the period indicated: Three-Month Period 2016 2015 (in thousands) Assets securitized $ 3,657,955 $ 3,981,855 Net proceeds from new securitizations (1) 2,702,004 3,056,950 Cash received for servicing fees (2) 194,365 161,962 Net distributions from Trusts (2) 629,726 456,053 Total cash received from securitization trusts $ 3,526,095 $ 3,674,965 (1) Includes additional advances on existing securitizations. (2) These amounts are not reflected in the accompanying Condensed Consolidated Statements of Cash Flows because the cash flows are between the VIEs and other entities included in the consolidation. Off-balance sheet VIEs 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, and may reacquire assets from the Trusts through the exercise of an optional clean-up call, as permitted through the respective servicing agreements. 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 period ended March 31, 2016 , the Company executed no off-balance sheet securitizations with VIEs in which it has continuing involvement. As of March 31, 2016 and December 31, 2015 , the Company was servicing $3.4 billion and $3.9 billion , respectively, of gross RICs in off-balance sheet 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 sheet Trusts for the periods indicated is as follows: Three-Month Period 2016 2015 (in thousands) Assets securitized $ — $ — Net proceeds from new securitizations $ — $ — Cash received for servicing fees 15,701 5,304 Total cash received from securitization trusts $ 15,701 $ 5,304 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES (As Restated) Goodwill The following table presents activity in the Company's goodwill by its reportable segments for the three-month period ended March 31, 2016 : Consumer and Business Banking (1) Auto Finance & Business Banking Commercial Real Estate (2) Commercial Banking (2) Global Corporate Banking SC Total (in thousands) Goodwill at December 31, 2015 $ 1,550,321 $ 445,923 $ — $ 1,297,055 $ 131,130 $ 1,019,960 $ 4,444,389 Disposals during the period — — — — — — — Additions during the period — — — — — — — Impairment during the period — — — — — — — Re-allocations during the period 329,983 (445,923 ) 870,411 (754,471 ) — — — Goodwill at March 31, 2016 $ 1,880,304 $ — $ 870,411 $ 542,584 $ 131,130 $ 1,019,960 $ 4,444,389 (1) Consumer and Business Banking was formerly designated as the Retail Banking segment and was renamed during the first quarter of 2016. (2) Commercial Real Estate and Commercial Banking were formerly disclosed as the combined Real Estate and Commercial Banking segment. As more fully described in Note 17 to the Condensed Consolidated Financial Statements , during the first quarter of 2016, certain management and line of business 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 and reporting units 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 combined impact of these organizational changes resulted in the re-allocation of $330.0 million of goodwill from Auto Finance & Business Banking to Consumer and Business Banking. • The Real Estate and Commercial Banking reportable segment was split into the Commercial Real Estate reportable segment and the Commercial Banking reportable segment, resulting in the re-allocation of $870.4 million of goodwill from Commercial Banking to Commercial Real Estate. • The commercial equipment vehicle financing 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, resulting in the re-allocation of $115.9 million of goodwill from Auto Finance & Business Banking to Commercial Banking. NOTE 7. GOODWILL AND OTHER INTANGIBLES (As Restated) (continued) The Company conducted its annual goodwill impairment test as of October 1, 2015 using generally accepted valuation methods. After conducting an analysis of the fair value of each reporting unit as of October 1, 2015 , the Company determined that there was no impairment of goodwill identified as a result of the annual impairment analysis. During the fourth quarter of 2015, due to a decline in SC's share price, the Company concluded that the fair value of our SC reporting unit was more likely than not less than its carrying value including goodwill. As a result, the Company performed an interim goodwill impairment analysis as of December 31, 2015 , the results of which required the Company to record an impairment of $4.5 billion . During the first quarter of 2016 , the Company continued to evaluate SC's share price. The Company performed an interim goodwill impairment analysis as of March 31, 2016 , the results of which determined that there was no impairment to goodwill. Other Intangible Assets The following table details amounts related to the Company's finite-lived and indefinite-lived intangible assets for the dates indicated. March 31, 2016 December 31, 2015 Net Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization (in thousands) Intangibles subject to amortization: Dealer networks $ 495,036 $ (84,964 ) $ 504,839 $ (75,161 ) Chrysler relationship 106,250 (32,500 ) 110,000 (28,750 ) Core deposit intangibles 152 (295,690 ) 763 (295,079 ) Other intangibles 4,679 (25,230 ) 5,453 (24,455 ) Total intangibles subject to amortization 606,117 (438,384 ) 621,055 (423,445 ) Intangibles not subject to amortization: Trade name 18,000 — 18,000 — Total Intangibles $ 624,117 $ (438,384 ) $ 639,055 $ (423,445 ) Amortization expense on intangible assets for the three-month periods ended March 31, 2016 and March 31, 2015 was $14.9 million and $16.8 million , respectively. NOTE 7. GOODWILL AND OTHER INTANGIBLES (As Restated) (continued) The estimated aggregate amortization expense related to intangibles, excluding any impairment charges, 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) 2016 $ 57,162 $ 14,938 $ 42,224 2017 55,055 — 55,055 2018 54,702 — 54,702 2019 54,501 — 54,501 2020 54,441 — 54,441 Thereafter 345,194 — 345,194 |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS (As Restated) The following is a detail of items that comprise other assets at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (in thousands) Income tax receivables $ 606,460 $ 613,339 Derivative assets at fair value 481,733 355,169 Other repossessed assets 190,565 172,749 MSRs, at fair value 130,742 147,233 Prepaid expenses 176,733 162,879 OREO 36,981 38,959 Miscellaneous assets and receivables 681,511 403,487 Total other assets $ 2,304,725 $ 1,893,815 Refer to Note 12 to the Condensed Consolidated Financial Statements for further details about income tax receivables and Note 11 to the Condensed Consolidated Financial Statements for further details about derivative assets. Other repossessed assets primarily consist of SC'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 Residential real estate The Company maintains an MSR asset for sold residential real estate loans serviced for others. At March 31, 2016 and December 31, 2015 , the balance of these loans serviced for others was $15.8 billion , and $15.9 billion , respectively. The Company accounts for residential MSRs using the FVO. Changes in fair value are recorded through the Mortgage banking income, net line of the Condensed Consolidated Statements of Operations . The fair value of the MSRs at March 31, 2016 and December 31, 2015 were $130.7 million and $147.2 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 MBS. See further discussion on these derivative activities in Note 11 to these Condensed Consolidated Financial Statements . NOTE 8. OTHER ASSETS (As Restated) (continued) For the three-month periods ended March 31, 2016 and March 31, 2015 , the Company recorded net changes in the fair value of MSRs due to valuation totaling $(14.4) million and $(7.0) million , respectively. 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 Sheets . Three-Month Period Ended March 31, 2016 March 31, 2015 (in thousands) Fair value at beginning of period $ 147,233 $ 145,047 Mortgage servicing assets recognized 3,591 3,526 Principal reductions (5,726 ) (6,131 ) Change in fair value due to valuation assumptions (14,356 ) (6,990 ) Fair value at end of period $ 130,742 $ 135,452 Fee income and gain/loss on sale of mortgage loans Included in Mortgage banking income, net on the Condensed Consolidated Statements of Operations was mortgage servicing fee income of $10.8 million for the three-month period ended March 31, 2016 , compared to $11.2 million for the corresponding period in 2015 . The Company had gains on sales of mortgage loans included in Mortgage banking income, net on the Condensed Consolidated Statements of Operations of $3.1 million and $6.2 million for the three-month periods ended March 31, 2016 and March 31, 2015 , respectively. |
DEPOSITS AND OTHER CUSTOMER ACC
DEPOSITS AND OTHER CUSTOMER ACCOUNTS | 3 Months Ended |
Mar. 31, 2016 | |
Deposits [Abstract] | |
DEPOSITS AND OTHER CUSTOMER ACCOUNTS | DEPOSITS AND OTHER CUSTOMER ACCOUNTS Deposits and other customer accounts are summarized as follows: March 31, 2016 December 31, 2015 Balance Percent of total deposits Balance Percent of total deposits (in thousands) Interest-bearing demand deposits $ 9,804,755 17.1 % $ 10,253,948 18.3 % Non-interest-bearing demand deposits 8,565,569 14.9 % 8,240,023 14.7 % Savings 4,149,767 7.2 % 3,956,165 7.0 % Customer repurchase accounts 879,411 1.5 % 896,736 1.6 % Money market 24,589,904 42.8 % 24,254,357 43.2 % Certificates of deposit 9,474,844 16.5 % 8,513,003 15.2 % Total Deposits (1) $ 57,464,250 100 % $ 56,114,232 100 % (1) Includes foreign deposits of $474.3 million and $495.9 million at March 31, 2016 and December 31, 2015 , respectively. Deposits collateralized by investment securities, loans, and other financial instruments totaled $4.3 billion and $2.9 billion at March 31, 2016 and December 31, 2015 , respectively. Demand deposit overdrafts that have been reclassified as loan balances were $37.5 million and $25.2 million at March 31, 2016 and December 31, 2015 , respectively. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Total borrowings and other debt obligations at March 31, 2016 was $50.8 billion , compared to $49.1 billion at December 31, 2015 . The Company's debt agreements impose certain limitations on dividends, 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 three-month period ended March 31, 2016 or March 31, 2015 . On February 22, 2016, the Company issued $1.5 billion of Senior Unsecured Floating Rate Notes to Santander. The notes have a floating rate equal to three-month LIBOR plus 218 basis points with a maturity of August 22, 2017. The proceeds of the notes will be used for general corporate purposes. The Company has the ability to call these notes at par with no prepayment penalty. During the first quarter of 2016, the Company terminated $1.3 billion of FHLB advances. As a consequence, the Company incurred costs of $32.9 million through the loss on debt extinguishment. On April 18, 2016, the Company terminated $125.0 million in FHLB advances with prepayment fees of $4.8 million . On May 10, 2016, the Company terminated $250.0 million in FHLB advances with prepayment fees of $7.5 million . Parent Company Borrowings and Debt Obligations The following table presents information regarding the Parent Company borrowings and other debt obligations at the dates indicated: March 31, 2016 December 31, 2015 Balance Effective Rate Balance Effective Rate (dollars in thousands) 4.625% senior notes, due April 2016 $ 475,982 4.85 % $ 475,723 4.85 % Senior notes with related party, due August 2017 (1) 1,500,000 2.80 % — — % 3.45% senior notes, due August 2018 497,999 3.62 % 497,800 3.62 % 2.65% senior notes, due April 2020 993,527 2.82 % 993,151 2.82 % 4.50% senior notes, due July 2025 1,094,599 4.56 % 1,094,483 4.56 % Junior subordinated debentures - Capital Trust VI, due June 2036 69,781 7.91 % 69,775 7.91 % Common securities - Capital Trust VI 10,000 7.91 % 10,000 7.91 % Junior subordinated debentures - Capital Trust IX, due July 2036 149,411 2.43 % 149,404 2.18 % Common securities - Capital Trust IX 4,640 2.43 % 4,640 2.18 % Total Parent Company borrowings and other debt obligations $ 4,795,939 3.57 % $ 3,294,976 3.91 % (1) These notes will bear interest at a rate equal to three-month LIBOR plus 218 basis points per annum. NOTE 10. BORROWINGS (continued) Bank Borrowings and Debt Obligations The following table presents information regarding the Bank's borrowings and other debt obligations at the dates indicated: March 31, 2016 December 31, 2015 Balance Effective Rate Balance Effective Rate (dollars in thousands) 2.00% senior notes, due January 2018 $ 746,818 2.24 % $ 746,381 2.24 % Senior notes, due January 2018 (1) 249,486 1.72 % 249,415 1.31 % Overnight federal funds purchased 100,000 0.35 % — — % 8.750% subordinated debentures, due May 2018 498,346 8.92 % 498,175 8.92 % Subordinated term loan, due February 2019 124,979 6.53 % 130,899 6.15 % FHLB advances, maturing through July 2019 12,835,000 1.24 % 13,885,000 1.40 % REIT preferred, due May 2020 155,310 13.48 % 154,930 13.66 % Subordinated term loan, due August 2022 30,445 8.28 % 30,344 7.89 % Total Bank borrowings and other debt obligations $ 14,740,384 1.74 % $ 15,695,144 1.85 % (1) These notes will bear interest at a rate equal to three-month LIBOR plus 93 basis points per annum. Revolving Credit Facilities The following tables present information regarding SC's credit facilities as of March 31, 2016 and December 31, 2015 : March 31, 2016 Balance Effective Rate Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 898,785 1.65 % $ 1,268,593 $ 33,876 Warehouse line, due June 2016 328,484 1.53 % 470,935 — Warehouse line, due November 2016 (2) 175,000 1.99 % — — Warehouse line, due November 2016 (2) 250,000 1.99 % — 2,502 Warehouse line, due July 2017 (3) 1,136,620 1.26 % 1,327,405 39,890 Warehouse line, due July 2017 (4) 2,151,543 1.37 % 3,301,792 59,169 Warehouse line, due December 2017 1,342,277 1.59 % 1,903,553 45,797 Warehouse line, due January 2018 73,000 3.13 % 102,309 — Warehouse line, due March 2018 (5) 886,199 1.26 % 1,287,618 28,733 Repurchase facility, due December 2016 (6) 1,147,361 2.51 % — 44,767 Line of credit with related party, due December 2016 (7) 500,000 2.74 % — — Line of credit with related party, due December 2016 (7) 1,000,000 2.70 % — — Line of credit with related party, due December 2018 (7) 975,000 2.94 % — — Total SC revolving credit facilities $ 10,864,269 1.89 % $ 9,662,205 $ 254,734 (1) As of March 31, 2016 , half of the outstanding balance on this facility matures in March 2017 and half matures in March 2018. (2) These lines are collateralized by residuals retained by SC. (3) This line is held exclusively for financing Chrysler Capital Loans. (4) This line is held exclusively for financing Chrysler Capital Leases. (5) As of December 31, 2015 this warehouse line was due at September 2017. (6) This repurchase facility is collateralized by securitization notes payable retained by SC. 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 SC. As of March 31, 2016 , $1.6 billion of the aggregate outstanding balances on these credit facilities was unsecured. NOTE 10. BORROWINGS (continued) December 31, 2015 Balance Effective Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 808,135 1.29 % $ 1,137,257 $ 24,942 Warehouse line, due June 2016 378,301 1.48 % 535,737 — Warehouse line, due November 2016 (2) 175,000 1.90 % — — Warehouse line, due November 2016 (2) 250,000 1.90 % — 2,501 Warehouse line, due July 2017 (3) 682,720 1.35 % 809,185 20,852 Warehouse line, due July 2017 (4) 2,247,443 1.41 % 3,412,321 48,589 Warehouse line, due September 2017 565,399 1.20 % 824,327 15,759 Warehouse line, due December 2017 (5) 944,877 1.56 % 1,345,051 32,038 Repurchase facility, due December 2016 (6) 850,904 2.07 % — 34,166 Line of credit with related party, due December 2016 (7) 500,000 2.65 % — — Line of credit with related party, due December 2016 (7) 1,000,000 2.61 % — — Line of credit with related party, due December 2018 (7) 800,000 2.84 % — — Total SC revolving credit facilities $ 9,202,779 1.81 % $ 8,063,878 $ 178,847 (1) As of December 31, 2015 , half of the outstanding balance on this facility matured in March 2016 and half matured in March 2017. On March 29, 2016, the facility was amended to, among other changes, extend the maturity for half of the balance to March 2017 and half to March 2018. (2) These lines are collateralized by residuals retained by SC. (3) This line is held exclusively for financing Chrysler Capital Loans. (4) This line is held exclusively for financing Chrysler Capital Leases. (5) In December 2015, the commitment on this warehouse line was amended to extend the commitment termination date to December 2017. (6) This repurchase facility is collateralized by securitization notes payable retained by SC. 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 SC. As of December 31, 2015 , $1.4 billion of the aggregate outstanding balances on these credit facilities was unsecured. Secured Structured Financings The following tables present information regarding SC's secured structured financings as of March 31, 2016 and December 31, 2015 : March 31, 2016 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SC public securitizations, maturing on various dates (1) $ 12,565,678 $ 26,563,082 0.89% - 2.44% $ 16,452,180 $ 1,396,275 SC privately issued amortizing notes, maturing on various dates (1) 7,790,231 11,535,991 0.88% - 2.81% 11,029,245 498,836 Total SC secured structured financings $ 20,355,909 $ 38,099,073 0.88% - 2.81% $ 27,481,425 $ 1,895,111 (1) SC 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 RICs, and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheets . The maturity of this debt is based on the timing of repayments from the securitized assets. NOTE 10. BORROWINGS (continued) December 31, 2015 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SC public securitizations, maturing on various dates (1) $ 12,679,987 $ 24,923,292 0.89% - 2.29% $ 16,256,067 $ 1,242,857 SC privately issued amortizing notes, maturing on various dates (1) 8,213,217 11,729,171 0.88% - 2.81% 11,495,352 457,840 Total SC secured structured financings $ 20,893,204 $ 36,652,463 0.88% - 2.81% $ 27,751,419 $ 1,700,697 (1) SC 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 RICs, and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheets . The maturity of this debt is based on the timing of repayments from the securitized assets. Most of the SC'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 RICs or vehicle leases. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 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 rate ("OIS") or LIBOR), security price, credit spread or other index. Derivative balances are presented on a gross basis taking into consideration the effects of legally enforceable master netting agreements. The Company’s capital markets and mortgage banking activities are 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. 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 March 31, 2016 , derivatives in this category had a fair value of $1.0 million . The credit ratings of the Company and Bank are currently considered investment grade. The Company estimates as of March 31, 2016 that a further 1 - or 2 - notch downgrade by either Standard & Poor's ("S&P") or Moody's would require the Company to post up to an additional $2.8 million or $3.2 million of collateral, respectively, to comply with existing derivative agreements. As of March 31, 2016 and December 31, 2015 , 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 $126.3 million and $128.1 million , respectively. The Company had $127.6 million and $128.8 million in cash and securities collateral posted to cover those positions as of March 31, 2016 and December 31, 2015 , 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 periods ended March 31, 2016 and 2015 . 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 periods ended March 31, 2016 and 2015 . As of March 31, 2016 , the Company expects no gross losses recorded in accumulated other comprehensive loss 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 March 31, 2016 and December 31, 2015 included: Notional Amount Asset Liability Weighted Average Receive Rate Weighted Average Pay Rate Weighted Average Life (Years) (dollars in thousands) March 31, 2016 Fair value hedges: Interest rate swaps $ 351,000 $ 804 $ 7,247 1.38 % 2.22 % 3.22 Cash flow hedges: Pay fixed — receive floating interest rate swaps 11,926,299 189 94,576 0.46 % 1.12 % 2.92 Total $ 12,277,299 $ 993 $ 101,823 0.49 % 1.15 % 2.93 December 31, 2015 Fair Value hedges: Cross-currency swaps $ 16,390 $ 3,695 $ 92 4.76 % 4.75 % 0.11 Interest rate swaps 318,000 47 2,006 1.07 % 2.31 % 3.50 Cash flow hedges: Pay fixed — receive floating interest rate swaps 11,030,431 7,295 23,047 0.32 % 1.13 % 3.00 Total $ 11,364,821 $ 11,037 $ 25,145 0.35 % 1.17 % 3.01 See Note 13 for detail of the amounts included in accumulated other comprehensive income related to derivatives activity. Cross-currency swaps designated as hedges matured during the first quarter of 2016. 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, as well as derivatives to hedge interest rate risk on SC secured structured financings and the borrowings under its revolving credit facilities. SC uses both interest rate swaps and interest rate caps to satisfy these requirements and to hedge the variability of cash flows on securities issued by securitization trusts and borrowings under its warehouse facilities. 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 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 Company 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. NOTE 11. DERIVATIVES (As Restated) (continued) 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. 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. 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. Derivatives Not Designated in Hedge Relationships – Notional and Fair Values Other derivative activities at March 31, 2016 and December 31, 2015 included: Notional Asset derivatives Fair value Liability derivatives Fair value March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (in thousands) Mortgage banking derivatives: Forward commitments to sell loans $ 506,374 $ 396,518 $ — $ 542 $ 3,371 $ — Interest rate lock commitments 349,468 187,930 6,992 2,540 — — Mortgage servicing 435,000 435,000 14,916 679 2,669 3,502 Total mortgage banking risk management 1,290,842 1,019,448 21,908 3,761 6,040 3,502 Customer related derivatives: Swaps receive fixed 9,067,978 9,060,134 351,336 205,397 114 6,023 Swaps pay fixed 9,291,483 9,273,627 316 16,183 311,595 177,114 Other 2,852,757 3,035,085 50,076 53,418 49,148 52,502 Total customer related derivatives 21,212,218 21,368,846 401,728 274,998 360,857 235,639 Other derivative activities: Foreign exchange contracts 2,619,226 2,513,305 33,604 30,262 33,263 30,144 Interest rate swap agreements 1,984,000 2,399,000 — 1,176 6,580 2,481 Interest rate cap agreements 9,159,361 10,013,912 13,716 32,950 — — Options for interest rate cap agreements 9,159,361 10,013,912 — — 13,785 32,977 Total return settlement 1,404,726 1,404,726 — — 53,793 53,432 Other 1,009,210 899,394 16,565 11,146 19,423 14,553 Total $ 47,838,944 $ 49,632,543 $ 487,521 $ 354,293 $ 493,741 $ 372,728 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 periods ended March 31, 2016 and 2015 : Three-Month Period Derivative Activity (1) Line Item 2016 2015 (in thousands) Fair value hedges: Cross-currency swaps Miscellaneous income $ 174 $ (36 ) Interest rate swaps Miscellaneous income (4,484 ) (2,993 ) Cash flow hedges: Pay fixed-receive variable interest rate swaps Net interest income (2,663 ) (4,451 ) Other derivative activities: Forward commitments to sell loans Mortgage banking income (3,912 ) (187 ) Interest rate lock commitments Mortgage banking income 4,452 3,937 Mortgage servicing Mortgage banking income 15,070 (1,219 ) Customer related derivatives Miscellaneous income 1,510 418 Foreign exchange Miscellaneous income 223 (874 ) SC non-hedging derivatives Miscellaneous income (5,499 ) (2,397 ) Net interest income 15,139 18,044 Other administrative expenses (1,316 ) (11,955 ) Other Miscellaneous income (1,131 ) (1,445 ) (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 . The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable master netting ISDA agreements for all trades executed after April 1, 2013. Collateral that is received or pledged for these transactions is disclosed within the “Gross amounts not offset in the Condensed Consolidated Balance Sheet ” section of the tables below. Prior to April 1, 2013, the Company had elected to net all caps, floors, and interest rate swaps when it had an ISDA agreement with the counterparty. The collateral received or pledged in connection with these transactions is disclosed within the “Gross amounts offset in the Condensed Consolidated Balance Sheet " section of the tables below. 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 March 31, 2016 and December 31, 2015 , 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) March 31, 2016 Fair value hedges $ 804 $ — $ 804 $ — $ — $ 804 Cash flow hedges 189 — 189 — — 189 Other derivative activities (1) 480,529 6,781 473,748 8,024 2,786 462,938 Total derivatives subject to a master netting arrangement or similar arrangement 481,522 6,781 474,741 8,024 2,786 463,931 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 6,992 — 6,992 — — 6,992 Total Derivative Assets $ 488,514 $ 6,781 $ 481,733 $ 8,024 $ 2,786 $ 470,923 Total Financial Assets $ 488,514 $ 6,781 $ 481,733 $ 8,024 $ 2,786 $ 470,923 December 31, 2015 Fair value hedges $ 3,742 $ — $ 3,742 $ — $ — $ 3,742 Cash flow hedges 7,295 — 7,295 — — 7,295 Other derivative activities (1) 351,761 10,161 341,600 8,008 16,424 317,168 Total derivatives subject to a master netting arrangement or similar arrangement 362,798 10,161 352,637 8,008 16,424 328,205 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 2,532 — 2,532 — — 2,532 Total Derivative Assets $ 365,330 $ 10,161 $ 355,169 $ 8,008 $ 16,424 $ 330,737 Total Financial Assets $ 365,330 $ 10,161 $ 355,169 $ 8,008 $ 16,424 $ 330,737 (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) March 31, 2016 Fair value hedges $ 7,247 $ — $ 7,247 $ 111 $ 11,732 $ (4,596 ) Cash flow hedges 94,576 — 94,576 — 104,392 (9,816 ) Other derivative activities (1) 439,268 96,925 342,343 3,054 271,819 67,470 Total derivatives subject to a master netting arrangement or similar arrangement 541,091 96,925 444,166 3,165 387,943 53,058 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 54,473 — 54,473 — — 54,473 Total Derivative Liabilities $ 595,564 $ 96,925 $ 498,639 $ 3,165 $ 387,943 $ 107,531 Total Financial Liabilities $ 595,564 $ 96,925 $ 498,639 $ 3,165 $ 387,943 $ 107,531 December 31, 2015 Fair value hedges $ 2,098 $ — $ 2,098 $ 87 $ 10,602 $ (8,591 ) Cash flow hedges 23,047 23,047 — 39,388 (16,341 ) Other derivative activities (1) 319,296 77,734 241,562 4,265 208,305 28,992 Total derivatives subject to a master netting arrangement or similar arrangement 344,441 77,734 266,707 4,352 258,295 4,060 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 53,432 — 53,432 — — 53,432 Total Derivative Liabilities $ 397,873 $ 77,734 $ 320,139 $ 4,352 $ 258,295 $ 57,492 Total Financial Liabilities $ 397,873 $ 77,734 $ 320,139 $ 4,352 $ 258,295 $ 57,492 (1) Includes customer-related and other derivatives (2) Includes mortgage banking derivatives |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES (As Restated) An income tax provision of $65.4 million was recorded for the three-month period ended March 31, 2016 , compared to $36.9 million for the corresponding period in 2015 . This resulted in an effective tax rate of 43.5% for the three-month period ended March 31, 2016 , compared to 22.5% for the corresponding period in 2015 . The Company recognized a discrete income tax provision of $3.1 million for the three-month period ended March 31, 2016 and a discrete income tax benefit of $22.0 million for the three-month period ended March 31, 2015 , which resulted in the higher effective tax rate for the three-month period ended March 31, 2016 . NOTE 12. INCOME TAXES (As Restated) (continued) 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. Actual income taxes paid may vary from estimates depending upon changes in income tax laws, actual results of operations, and the final audit of tax returns by taxing authorities. Tax assessments may arise several years after tax returns have been filed. The Company reviews the tax balances quarterly and, as new information becomes available, the balances are adjusted as appropriate. The Company is subject to ongoing tax examinations and assessments in various jurisdictions. 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 the Company is entitled to a refund 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 March 31, 2016 . On November 13, 2015, the Federal District Court issued a written opinion in favor of the Company on all contested issues, and in a judgment issued on January 13, 2016, ordered amounts assessed by the IRS for years 2003 through 2005 to be refunded to the Company. On March 11, 2016, the IRS filed a notice of appeal. The appeal was heard in the First Circuit on November 9, 2016. 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. On March 7, 2016, the U.S. Supreme Court denied BB&T's and BNY Mellon's petitions. The Company has not changed its reserve position as of March 31, 2016 , and remains confident in the legal merits of its position 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 . With few exceptions, the Company is no longer subject to federal, state and non-US income tax examinations by tax authorities for years prior to 2003. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (As Restated) The following table presents the components of accumulated other comprehensive income/(loss), net of related tax, for the three-month periods ended March 31, 2016 , and 2015 , respectively. Total Other Comprehensive Income/(Loss) Total Accumulated Other Comprehensive Income/(Loss) Three-Month Period Ended March 31, 2016 December 31, 2015 March 31, 2016 Pretax Activity Tax Effect Net Activity Beginning Balance Net Activity Ending Balance As Restated As Restated (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (64,195 ) $ 30,260 $ (33,935 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 2,663 (1,255 ) 1,408 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (61,532 ) 29,005 (32,527 ) $ (16,582 ) $ (32,527 ) $ (49,109 ) Change in unrealized gains/(losses) on investment securities available-for-sale 265,175 (104,213 ) 160,962 Reclassification adjustment for net(gains)/losses included in net income on non-OTTI securities (2) (26,431 ) 10,387 (16,044 ) Reclassification adjustment for net losses/(gains) included in net income on OTTI securities (3) 10 (4 ) 6 Reclassification adjustment for net (gains)/losses included in net income (26,421 ) 10,383 (16,038 ) Net unrealized gains/(losses) on investment securities available-for-sale 238,754 (93,830 ) 144,924 (96,026 ) 144,924 48,898 Pension and post-retirement actuarial gain/(loss) (4) 929 (364 ) 565 (27,033 ) 565 (26,468 ) As of March 31, 2016 $ 178,151 $ (65,189 ) $ 112,962 $ (139,641 ) $ 112,962 $ (26,679 ) (1) Net gains 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 in Note 11 to the Condensed Consolidated Financial Statements . (2) Net gains reclassified into Net gain on sale of investment securities in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Unrealized losses previously recognized in accumulated other comprehensive income on securities for which OTTI was recognized during the period. See further discussion in Note 3 to the Condensed Consolidated Financial Statements . (4) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (As Restated) (continued) Total Other Total Accumulated Three-Month Period Ended March 31, 2015 December 31, 2014 March 31, 2015 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (29,009 ) $ 11,154 $ (17,855 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 4,451 (1,711 ) 2,740 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (24,558 ) 9,443 (15,115 ) $ (14,260 ) $ (15,115 ) $ (29,375 ) Change in unrealized gains/(losses) on investment securities available-for-sale 117,781 (45,964 ) 71,817 Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (9,557 ) 3,730 (5,827 ) Net unrealized gains/(losses) on investment securities available-for-sale 108,224 (42,234 ) 65,990 (52,515 ) 65,990 13,475 Pension and post-retirement actuarial gain/(loss) (3) 1,018 (403 ) 615 (29,635 ) 615 (29,020 ) As of March 31, 2015 $ 84,684 $ (33,194 ) $ 51,490 $ (96,410 ) $ 51,490 $ (44,920 ) (1) Net gains 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 in Note 11 . (2) Net gains reclassified into Net gains 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 | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES 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 March 31, 2016 December 31, 2015 (in thousands) Commitments to extend credit (1) $ 28,277,773 $ 31,379,039 Letters of credit 1,846,310 1,832,884 Recourse exposure on sold loans 73,286 70,394 Commitments to sell loans 53,237 56,982 Total commitments $ 30,250,606 $ 33,339,299 (1) Commitments to extend credit excludes commitments that can be canceled by the Company without notice. 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. During the quarter ended March 31, 2016 , SBNA transferred and settled $2.3 billion of unfunded commitments to extend credit to an unconsolidated related party for a loss on sale of $6.3 million . Subsequent to March 31, 2016 but prior to the issuance of the financial statements, SBNA transferred and settled an additional $1.3 billion of unfunded commitments to extend credit to an unconsolidated related party. The following table details the amount of commitments to extend credit expiring per period as of the dates indicated: March 31, 2016 December 31, 2015 (in thousands) 1 year or less $ 5,746,695 $ 6,451,239 Over 1 year to 3 years 4,981,342 5,250,512 Over 3 years to 5 years 9,920,170 12,136,625 Over 5 years (1) 7,629,566 7,540,663 Total $ 28,277,773 $ 31,379,039 (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, included in the Commitments to extend credit line above, 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. NOTE 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES (continued) 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 15.0 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 requested draw by the beneficiary that complies with the terms of the letter 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 March 31, 2016 was $1.8 billion . The fees related to letters of credit are deferred and amortized over the life of the respective commitments and were immaterial to the Company’s financial statements at March 31, 2016 . 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 March 31, 2016 and December 31, 2015 , the liability related to these letters of credit was $22.2 million and $29.9 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 March 31, 2016 and December 31, 2015 were lines of credit outstanding of $149.8 million and $117.5 million , respectively. The following table details the amount of letters of credit expiring per period as of the dates indicated: March 31, 2016 December 31, 2015 (in thousands) 1 year or less $ 1,215,499 $ 1,230,424 Over 1 year to 3 years 522,750 308,634 Over 3 years to 5 years 52,816 268,946 Over 5 years 55,245 24,880 Total $ 1,846,310 $ 1,832,884 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 multifamily 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 $543.7 million as of March 31, 2016 and $552.1 million as of December 31, 2015 . As a result of its agreement with FNMA, the Company retained a 100% first loss position on each multifamily loan sold to FNMA until the earlier to occur of (i) the aggregate approved losses on multifamily loans sold to FNMA reaching the maximum loss exposure for the portfolio as a whole of $34.4 million as of March 31, 2016 and $34.4 million as of December 31, 2015 , or (ii) the time when such loans sold to FNMA under this program are 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 March 31, 2016 and December 31, 2015 , the Company had $6.4 million and $6.8 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. NOTE 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES (continued) 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 . SC Commitments SC is obligated to make purchase price hold-back payments to a third party originator of auto loans that it has purchased, when losses are lower than originally expected. SC is also obligated to make total return settlement payments to this third party originator beginning in June 2016 if returns on the purchased loan are greater than originally expected. These obligations are accounted for as derivatives. Refer to Note 11 to the Condensed Consolidated Financial Statements for more information. Under terms of agreements with LendingClub, SC was previously committed to purchase a portion of "near-prime" (as that term is defined in the agreements) originations through July 2017. On October 9, 2015, SC sent a notice of termination to LendingClub, and, accordingly, ceased originations on this platform on January 7, 2016. On February 1, 2016 , SC completed the sale of substantially all of its LendingClub loans to a third-party buyer at an immaterial premium to par value. The portfolio comprised personal installment loans with an unpaid principal balance of approximately $869.3 million as of the date of the sale. 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 March 31, 2016 and December 31, 2015 , SC was obligated to purchase $11.6 million and $12.5 million , respectively, in receivables that had been originated by the retailer but not yet purchased by SC. SC is also required to make a profit-sharing payment to the retailer each month if performance exceeds a specified return threshold. The retailer also has 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, has 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 pays the OEM a referral fee, comprised of a volume bonus fee and a loss betterment bonus fee. The loss betterment bonus fee is 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 RICs through securitizations and other sales, SC has made standard representations and warranties customary in the consumer finance industry. Breaches 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 March 31, 2016 , SC had no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for SC's asset-backed securities or other sales. In the opinion of 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. 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. NOTE 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES (continued) Under terms of the Chrysler Agreement, SC must make revenue-sharing payments to FCA and also must make gain-sharing payments when residual gains on leased vehicles exceed a specified threshold. SC had accrued $10.7 million and $12.1 million at March 31, 2016 and December 31, 2015 , respectively, related to this obligation. SC has a flow agreement with Bank of America whereby SC is committed to sell up to a specified amount of eligible loans to Bank of America each month through May 2018 . Prior to October 1, 2015, the amount of this monthly commitment was $300.0 million . On October 1, 2015 , SC and Bank of America amended the flow agreement to increase the maximum commitment to sell to $350.0 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 time of sale. SC had accrued $8.0 million and $6.3 million at March 31, 2016 and December 31, 2015 , respectively, related to this obligation. 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 $600.0 million and a minimum of $250.0 million per quarter to a maximum of $200.0 million and a minimum of $50.0 million per quarter, as may be adjusted according to the agreement. In January 2016, the Company executed an amendment to the servicing agreement with CBP that decreased the servicing fee the Company receives on loans sold to CBP by the Company under the flow agreement. SC had accrued $3.4 million at March 31, 2016 and December 31, 2015 related to the loss-sharing obligation. As of March 31, 2016 , SC is party to 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 $350.0 million in proceeds. Any sale after the total sales have reached $275.0 million is subject to a market price check. As of March 31, 2016 and December 31, 2015 , the remaining aggregate commitment was $195.7 million and $200.7 million , respectively. In connection with the bulk sales of Chrysler Capital leases to a third party, 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 $1.9 million and $2.9 million , net, as of March 31, 2016 and December 31, 2015 , respectively. Pursuant to the terms of a Separation Agreement among former SC CEO Thomas G. Dundon, SC, DDFS LLC, SHUSA and Santander, upon satisfaction of applicable conditions, including receipt of required regulatory approvals, the Company will owe Mr. Dundon a cash payment of up to $115.1 million . 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 that 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 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/or its subsidiaries. In the ordinary course of business, the Company and its subsidiaries also are subject to regulatory examinations, inspections, information-gathering requests, inquiries and investigations, including by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the Office of the Comptroller of the Currency (the “OCC”), the Consumer Financial Protection Bureau (the “CFPB”), the Federal Deposit Insurance Corporation (the “FDIC”), the Department of Justice (the “DOJ”), the SEC, state attorneys general, and other state and federal 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 losses, fines or penalties, if any, related to the respective matters. 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 its counsel, including 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 or adjusted 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. Management currently estimates that it is reasonably possible that the Company could incur losses in an aggregate amount of up to approximately $12.0 million in excess of the accrued liability, if any, with it also being reasonably possible that the Company could incur no such losses in these matters. This estimated range of reasonably possible losses represents the estimate of possible losses over the life of such legal matters, which may span an indeterminable number of years, and is based on information available as of March 31, 2016 . 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 Financing 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 June 16, 2015, the Bank entered into a consent order with the OCC amending the consent order issued by the Office of Thrift Supervision ("OTS") in 2011 (the "Order") as well as the 2013 amendment to the Order (the "2015 Amendment"). The 2015 Amendment provided that the Bank had not fully complied with the terms of the Order as amended and that nine actionable items remained. The 2015 Amendment imposed certain supervisory restrictions on the Bank's mortgage origination and servicing business. These restrictions required the Bank to obtain prior supervisory non objection from the OCC before engaging in certain new or broader mortgage origination and servicing activities or appointing new senior mortgage servicing officers, although the Bank was able to generally operate its current mortgage origination and servicing business in the ordinary course. The 2015 Amendment confirmed that the Bank has fulfilled its obligations to pay $6.2 million into a remediation fund and to engage in foreclosure avoidance activities in an aggregate principal amount of at least $9.9 million , both of which were required by the 2013 amendment to the Order executed by the Bank in February of 2013 that ended the independent file review required by the Order. The Bank addressed the nine actionable items delineated in the 2015 Amendment and on February 8, 2016, the OCC terminated the Order in its entirety and assessed a civil monetary penalty of $3.4 million , which has been paid by the Bank. Identity Theft Protection Product Matter The Bank had been in discussions to address concerns that some customers may have paid for but did not receive certain benefits of an identity theft protection product from the Bank's third-party vendor. In response to those concerns, as of December 31, 2014 , the Bank had made $37.6 million in total remediation payments to customers. Notwithstanding those payments, on March 26, 2015, the Bank received a Consent Cease and Desist Order ("Consent Order") from the OCC regarding identified deficiencies in SBNA's billing practices with regard to an identity protection product. Pursuant to the Consent Order, the Bank paid a civil monetary penalty of $6.0 million and agreed to remediate customers who paid for but may not have received certain benefits of the identity theft protection product. As indicated above, as of the end of 2014, all customers had been mailed a refund representing the amount paid for product enrollment. Subsequently, the Bank commenced a further review in order to remediate checking account customers who may have been charged an overdraft fee and credit card customers who may have been charged an over limit fee and/or finance charge related to the identity theft protection product fees. The amount of additional remediation paid by the Bank related to these charges was approximately $5.2 million . In response to the Consent Order, the Bank presented Reimbursement and Action Plans which received non-objection from the OCC on December 21, 2015. Since that time, the actions set forth in the Plans are underway as is ongoing reporting to the OCC. We continue to make progress in addressing these requirements, but the Consent Order remains in place and we are unable to predict when it may be terminated. Marketing of Overdraft Coverage On April 1, 2014 , the Bank received a civil investigative demand (“CID”) from the CFPB requesting information and documents in connection with the Bank’s marketing to consumers of overdraft coverage for automated teller machine ("ATM") and/or onetime debit card transactions. The bank received a second CFPB CID related to the same overdraft coverage program on February 10, 2015 . Pursuant to the terms of the CIDs, the information obtained by the CFPB will be used to determine whether the Bank is in compliance with laws administered by the CFPB. The Bank is cooperating with the investigation; however, there can be no assurance that claims or litigation will not arise from this matter. The Company's practice is to cooperate fully with regulatory and governmental investigations, audits and other inquiries, including those described above. NOTE 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES (continued) SC matters 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 purported securities class action lawsuit was filed in the United States District Court, Southern District of New York, captioned Steck v. Santander Consumer USA Holdings Inc. et al., No. 1:14-cv-06942 (the "Deka Lawsuit"). On October 6, 2014 , another purported securities class action lawsuit was filed in the District Court of Dallas County, State of Texas, captioned Kumar v. Santander Consumer USA Holdings, et al., No. DC-14-11783, which was subsequently removed to the United States District Court, Northern District of Texas and re-captioned Kumar v. Santander Consumer USA Holdings, et al., No. 3:14-CV-3746 (the "Kumar Lawsuit"). Both the Deka Lawsuit and the Kumar Lawsuit were brought against SC, certain of its current and former directors and executive officers and certain institutions that served as underwriters in SC's IPO on behalf of a class consisting of those who purchased or otherwise acquired securities between January 23, 2014 and June 12, 2014. In February 2015, the Kumar Lawsuit was voluntarily dismissed with prejudice. In June 2015, the venue of the Deka Lawsuit was transferred to the United States District Court, Northern District of Texas. In September 2015, the court granted a motion to appoint lead plaintiffs and lead counsel, and the Deka Lawsuit is now captioned Deka Investment GmbH et al. v. Santander Consumer USA Holdings Inc. et al., No. 3:15-cv-2129-K. The amended class action complaint in the Deka Lawsuit alleges that that SC's registration statement and prospectus and certain subsequent public disclosures contained misleading statements concerning SC’s ability to pay dividends and the adequacy of SC’s compliance systems and oversight. The amended complaint asserts claims under Sections 11, 12(a) and 15 of the Securities Act of 1933 and under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, and seeks damages and other relief. On December 18, 2015, SC and the individual defendants moved to dismiss the amended class action complaint. 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 "Feldman Lawsuit"). The Feldman Lawsuit names as defendants current and former members of SC’s Board, 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. On December 29, 2015, the Feldman Lawsuit was stayed pending the resolution of the Deka Lawsuit. On March 18, 2016, a purported securities class action lawsuit was filed in the United States District Court, Northern District of Texas, captioned Parmelee v. Santander Consumer USA Holdings Inc. et al., No. 3:16-cv-783 (the "Parmelee Lawsuit"). On April 4, 2016, another purported securities class action lawsuit was filed in the United States District Court, Northern District of Texas, captioned Benson v. Santander Consumer USA Holdings Inc. et al., No. 3:16-cv-919 (the "Benson Lawsuit"). Both the Parmelee Lawsuit and the Benson Lawsuit were filed against SC and certain of its current and former directors and executive officers on behalf of a class consisting of all those who purchased or otherwise acquired SC's securities between February 3, 2015 and March 15, 2016. The complaints in the Parmelee Lawsuit and Benson Lawsuit allege that SC made false or misleading statements, as well as failed to disclose material adverse facts as disclosed in prior annual and quarterly reports filed under the Exchange Act and certain other public disclosures, in connection with SC's change in its methodology for estimating its ACL and correction of such allowance for prior periods in SC’s Annual Report on Form 10-K/A for the year ended December 31, 2015. The complaints assert claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, and seek damages and other relief. NOTE 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES (continued) Further, SC is party to, or is periodically otherwise involved in reviews, investigations, and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the Federal Reserve, the CFPB, the DOJ, the SEC, the FTC and various state regulatory agencies. Currently, such proceedings include a civil subpoena from the DOJ, under the FIRREA, 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 the requests for information and document preservation. On November 4, 2015, SC entered into an Assurance of Discontinuance ("AOD") with the Office of Attorney General of the Commonwealth of Massachusetts (the "Massachusetts AG"). The Massachusetts AG alleged that SC violated the maximum permissible interest rates allowed under Massachusetts law due to the inclusion of GAP charges in the calculation of finance charges. Among other things, the AOD requires SC, with respect to any loan that exceeded the maximum rates, to issue refunds of all finance charges paid to date and to waive all future finance charges. The AOD also requires SC to undertake certain remedial measures, including ensuring that interest rates on its loans do not exceed maximum rates (when GAP charges are included) in the future, and provides that SC pay one hundred fifty thousand dollars to the Massachusetts AG to reimburse its costs of implementing the AOD. On February 25, 2015 , SC entered into a |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS (As Restated) The Company has various debt agreements with Santander. For a listing of these debt agreements, see Note 12 to the Condensed Consolidated Financial Statements of the Company's Annual Report on Form 10-K/A for the year ended December 31, 2015 . During the first quarter ended March 31, 2016 , SBNA transferred and settled $2.3 billion of unfunded commitments to extend credit to an unconsolidated related party for a loss on sale of $6.3 million , see Note 14. 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/A for the year ended December 31, 2015 . NOTE 15. RELATED PARTY TRANSACTIONS (As Restated) (continued) On July 2, 2015, the Company announced that it had entered into an agreement with former SC Chief Executive Officer Thomas G. Dundon (Mr. Dundon), Dundon DFS LLC ("DDFS"), and Santander related to Mr. Dundon's departure from SC (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 SC 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 SC Common Stock held by DDFS (the "DDFS Shares") represented approximately 9.7% of SC Common Stock. Also, in connection with and pursuant to the Separation Agreement, on July 2, 2015, Mr. Dundon, the Company, DDFS, SC and Santander entered into an amendment to the Shareholders Agreement (the "Second Amendment"). The Second Amendment amended, for purposes of calculating the price per share to be paid in the event that a put or call option was exercised with respect to the shares of SC Common Stock owned by DDFS, the definition of the term “Average Stock Price” to mean $26.83 . 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. 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. Because the Call Transaction was not completed before the Call End Date, interest began accruing 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 SC Common Stock ultimately sold in the Call Transaction. The Amended and Restated Loan Agreement provides for a $300.0 million revolving loan which as of March 31, 2016 and December 31, 2015 had an unpaid principal balance of approximately $290.0 million . Pursuant to the Loan Agreement, 29,598,506 shares of the SC’s Common Stock owned by DDFS are pledged as collateral under a related pledge agreement. If consummated , the Company would pay DDFS approximately $928.3 million plus interest that accrued since the Call End Date. To date, the Call Transaction has not been consummated and remains subject to the receipt of the applicable regulatory approvals. The Company’s delivery of its irrevocable notice to consummate the Call Transaction created a contingent forward purchase of all of DDFS equity shares in accordance with ASC 480, Distinguishing Liabilities from Equity. Under this guidance the Company will recognize either a contingent forward asset or liability at fair value based on the movement of SC’s stock price in the market as compared to the proposed fixed settlement price of $26.83 per share. Since July 2, 2015 through March 31, 2016, SC’s stock price is lower than $26.83 which would indicate a potential recognition of a contingent forward purchase obligation. The Company’s estimate of the fair value of the contingent forward purchase obligation, based on its assessment of the likelihood of obtaining the required regulatory approvals and its estimate of the accrued interest, was not material to its consolidated financial statements for the prior periods presented as well as to the current quarter. If regulatory approval is obtained, or if the probability of obtaining the regulatory approvals increases, the Company may have to recognize a material charge to earnings to recognize the change in the fair value of the contingent forward purchase contract. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE (As Restated) General As of March 31, 2016 , $21.6 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. None of these financial instruments were measured using quoted market prices for identical instruments or Level 1 inputs. Approximately $19.6 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 9.5% 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, discounted cash flow ("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 periods ended March 31, 2016 and March 31, 2015 for any assets or liabilities valued at fair value on a recurring basis. 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 March 31, 2016 and December 31, 2015 . Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: U.S. Treasury securities $ — $ 349,742 $ — $ 349,742 Corporate debt — 1,429,590 — 1,429,590 Asset-backed securities — 406,156 1,640,423 2,046,579 State and municipal securities — 21,627 — 21,627 Mortgage backed securities — 16,674,891 — 16,674,891 Total investment securities available-for-sale (1) — 18,882,006 1,640,423 20,522,429 Retail installment contracts held-for-investment — — 285,811 285,811 Loans held-for-sale (2) — 219,151 — 219,151 Mortgage servicing rights — — 130,742 130,742 Derivatives: Fair value — 804 — 804 Cash flow — 189 — 189 Mortgage banking interest rate lock commitments — — 6,992 6,992 Customer related — 401,728 — 401,728 Foreign exchange — 33,604 — 33,604 Mortgage servicing — 14,916 — 14,916 Interest rate cap agreements — 13,716 — 13,716 Other — 16,557 8 16,565 Total financial assets $ — $ 19,582,671 $ 2,063,976 $ 21,646,647 Financial liabilities: Derivatives: Fair value $ — $ 7,247 $ — $ 7,247 Cash flow — 94,576 — 94,576 Mortgage banking forward sell commitments — 3,371 — 3,371 Customer related — 360,857 — 360,857 Total return swap — — 282 282 Foreign exchange — 33,263 — 33,263 Mortgage servicing — 2,669 — 2,669 Interest rate swaps — 6,580 — 6,580 Option for interest rate cap — 13,785 — 13,785 Total return settlement — — 53,793 53,793 Other — 18,993 148 19,141 Total financial liabilities $ — $ 541,341 $ 54,223 $ 595,564 (1) Investment securities available-for-sale disclosed on the Condensed Consolidated Balance Sheet at March 31, 2016 includes $10.7 million of equity securities that are not presented within this table in accordance with the adoption of ASU 2015-07. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. (2) LHFS disclosed on the Condensed Consolidated Balance Sheet also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. NOTE 16. FAIR VALUE (As Restated) (continued) Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: U.S. Treasury securities $ — $ 3,188,388 $ — $ 3,188,388 Corporate debt — 1,475,574 — 1,475,574 Asset-backed securities — 409,270 1,360,240 1,769,510 State and municipal securities — 767,880 — 767,880 Mortgage backed securities — 13,639,656 — 13,639,656 Total investment securities available-for-sale (1) — 19,480,768 1,360,240 20,841,008 Retail installment contracts held-for-investment — — 328,655 328,655 Loans held-for-sale (2) — 236,760 — 236,760 Mortgage servicing rights — — 147,233 147,233 Derivatives: Fair value — 3,742 — 3,742 Cash flow — 7,295 — 7,295 Mortgage banking interest rate lock commitments — — 2,540 2,540 Mortgage banking forward sell commitments — 542 — 542 Customer related — 274,998 — 274,998 Foreign exchange — 30,262 — 30,262 Mortgage servicing — 679 — 679 Interest rate swap agreements — 1,176 — 1,176 Interest rate cap agreements — 32,950 — 32,950 Other — 11,136 10 11,146 Total financial assets $ — $ 20,080,308 $ 1,838,678 $ 21,918,986 Financial liabilities: Derivatives: Fair value $ — $ 2,098 $ — $ 2,098 Cash flow — 23,047 — 23,047 Customer related — 235,639 — 235,639 Total return swap — — 282 282 Foreign exchange — 30,144 — 30,144 Mortgage servicing — 3,502 — 3,502 Interest rate swaps — 2,481 — 2,481 Option for interest rate cap — 32,977 — 32,977 Total return settlement — — 53,432 53,432 Other — 14,149 122 14,271 Total financial liabilities $ — $ 344,037 $ 53,836 $ 397,873 (1) Investment securities available-for-sale disclosed on the Condensed Consolidated Balance Sheet at December 31, 2015 includes $10.5 million of equity securities that are not presented within this table in accordance with the adoption of ASU 2015-07. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. (2) LHFS disclosed on the Condensed Consolidated Balance Sheet also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. 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 Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value (in thousands) March 31, 2016 Impaired loans held-for-investment $ — $ 279,069 $ 41,118 $ 320,187 Foreclosed assets — 15,242 — 15,242 Vehicle inventory — 251,926 — 251,926 Loans held for sale — — 978,819 978,819 December 31, 2015 Impaired loans held-for-investment $ — $ 122,792 $ 326 $ 123,118 Foreclosed assets — 27,574 — 27,574 Vehicle inventory — 204,120 — 204,120 Loans held for sale — — 2,040,813 2,040,813 Goodwill — — 1,019,960 1,019,960 Indefinite lived intangibles — — 18,000 18,000 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 ALLL. 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 and are considered Level 2 inputs. Loans where 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 may 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 $218.7 million and $91.3 million at March 31, 2016 and December 31, 2015 , 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 market 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 values of used cars. NOTE 16. FAIR VALUE (As Restated) (continued) The Company's LHFS portfolios that are measured at fair value on a nonrecurring basis consist of personal and commercial LHFS. The estimated fair value for the personal and commercial LHFS is calculated based on a combination of estimated market rates for similar loans with similar credit risks and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect voluntary prepayments, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations. The estimated fair value of goodwill and intangible assets are valued using unobservable inputs and are classified as Level 3. Fair value is calculated using a DCF model. On a quarterly basis, the Company assesses whether or not impairment indicators are present. For information on the Company's goodwill impairment test and the results of the most recent goodwill impairment test, see Note 1 and Note 7 for a description of the Company's goodwill valuation methodology. 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 2016 2015 (in thousands) Impaired loans held-for-investment Provision for credit losses $ (88,311 ) $ (570 ) Foreclosed assets Miscellaneous income (1) (1,812 ) (611 ) Loans held for sale Miscellaneous income (1) (64,213 ) — $ (154,336 ) $ (1,181 ) (1) These amounts reduce Miscellaneous income. Level 3 Rollforward for Recurring Assets and Liabilities The tables below present the changes in all Level 3 balances for the three-month periods ended March 31, 2016 and 2015 , respectively. Three-Month Period Ended March 31, 2016 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2015 $ 1,360,240 $ 328,655 $ 147,233 $ (51,286 ) $ 1,784,842 Gains in other comprehensive income 1,585 — — — 1,585 Gains/(losses) in earnings — 26,749 (14,356 ) 3,010 15,403 Additions/Issuances 278,686 — 3,591 — 282,277 Settlements (1) (88 ) (69,593 ) (5,726 ) 1,053 (74,354 ) Balance, March 31, 2016 $ 1,640,423 $ 285,811 $ 130,742 $ (47,223 ) $ 2,009,753 Changes in unrealized gains/(losses) included in earnings related to balances still held at March 31, 2016 $ — $ 26,749 $ (14,356 ) $ (1,442 ) $ 10,951 (1) Settlements include charge-offs, prepayments, pay downs and maturities. NOTE 16. FAIR VALUE (As Restated) (continued) Three-Month Period Ended March 31, 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 Gains in other comprehensive income 4,779 — — — 4,779 Gains/(losses) in earnings — 86,492 (6,990 ) (8,129 ) 71,373 Additions/Issuances 253,973 — 3,526 — 257,499 Settlements (1) (11,878 ) (256,306 ) (6,131 ) 1,356 (272,959 ) Balance, March 31, 2015 $ 1,514,517 $ 676,097 $ 135,452 $ (52,951 ) $ 2,273,115 Changes in unrealized gains/(losses) included in earnings related to balances still held at March 31, 2015 $ — $ 86,492 $ (6,990 ) $ (12,065 ) $ 67,437 (1) Settlements include charge-offs, prepayments, pay downs and maturities. For the three-month periods ended March 31, 2016 and 2015 , the Company recognized $26.7 million and $86.5 million , respectively, of gains in earnings related to the RICs held for investment for which the Company elected the FVO. The gains are driven by three primary factors: 1) the recognition of interest income 2) recoveries of previously charged-off RICs and 3) actual performance of the portfolio since the Change in Control. Recoveries from RICs that were charged-off at the Change in Control dates are a direct increase to the gain recognized within the portfolio. In accordance with ASC 805, Business Combinations , the Company did not ascribe a fair value to the portfolio of sub-prime charged-off RICs at the Change in Control date. Recoveries of previously charged off loans are usually recorded as a reduction to charge-offs in the period the recovery is made, however, in instances where the FVO is elected, it will flow through the fair value mark. At the Change in Control date, the unpaid principal balance of the previously charged-off RIC portfolio was approximately $3.0 billion . 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 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 by 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 and government agency 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 when pricing these securities that incorporate relevant observable 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. NOTE 16. FAIR VALUE (As Restated) (continued) Certain ABS are valued using DCF models. The DCF models are obtained from a third-party pricing vendor who uses observable market data and therefore are classified as 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, which are comprised primarily of shares of registered mutual funds, are priced using net asset value per share practical expedient, which is validated with a sufficient level of observable activity. In accordance with the implementation of ASU 2015-07, these equity securities are not presented within the fair value hierarchy. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. Gains and losses on investments are recognized in the Condensed Consolidated Statements of Operations through Net gain on sale of investment securities . RICs held-for-investment For certain RICs held-for-investment, the Company has elected the FVO. The fair values of RICs 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, recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, RICs held-for-investment for which the Company has elected FVO are classified as Level 3. LHFS The Company's LHFS portfolios that are measured at fair value on a recurring basis consists primarily of residential mortgage LHFS. The fair values of LHFS are estimated using published forward agency prices to agency buyers such as FNMA and 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 as well as the specific characteristics of certain loans that are priced based on the pricing of similar loans. These adjustments represent unobservable inputs to the valuation and, are not 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. Gains and losses on residential mortgage LHFS are recognized on the Condensed Consolidated Statements of Operations through Miscellaneous income. See further discussion below in the section captioned "FVO for Financial Assets and Financial Liabilities." NOTE 16. FAIR VALUE (As Restated) (continued) 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. Gains and losses on MSRs are recognized on the Condensed Consolidated Statements of Operations through Mortgage banking income, net . See further discussion on MSRs in Note 8 . 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 $10.3 million , respectively, at March 31, 2016 . • A 10% and 20% increase in the discount rate would decrease the fair value of the residential servicing asset by $4.4 million and $8.5 million , respectively, at March 31, 2016 . 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 the Company 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. NOTE 16. FAIR VALUE (As Restated) (continued) 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. 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 March 31, 2016 Valuation Technique Unobservable Inputs Range (in thousands) Financial Assets: Asset-backed securities Financing bonds $ 1,589,828 Discounted Cash Flow Discount Rate (1) 0.92% - 1.82% (1.21%) Sale-leaseback securities $ 50,595 Consensus Pricing (2) Offered quotes (3) 128.84 % Retail installment contracts held-for-investment $ 285,811 Discounted Cash Flow Prepayment rate (CPR) (4) 9.50 % Discount Rate (5) 9.50% - 14.50% (10.50%) Recovery Rate (6) 25.00% - 43.00% (29.50%) Mortgage servicing rights $ 130,742 Discounted Cash Flow Prepayment rate (CPR) (7) 0.20% - 29.51% (11.33%) Discount Rate (8) 9.90 % Mortgage banking interest rate lock commitments $ 6,992 Discounted Cash Flow Pull through percentage (9) 76.97 % MSR value (10) 0.73% - 1.07% (1.01%) Financial Liabilities: Total return settlement $ 53,793 Discounted Cash Flow Discount Rate (4) 8.32 % (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-leaseback securities, the Company owns one security. (4) Based on the analysis of available data from a comparable market securitization of similar assets. (5) Based on the cost of funding of debt issuance and recent historical equity yields. (6) Based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. (7) Average CPR projected from collateral stratified by loan type, note rate and maturity. (8) Based on the nature of the input, a range or weighted average does not exist. (9) Historical weighted average based on principal balance calculated as the percentage of loans originated for sale divided by total commitments less outstanding commitments. (10) 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 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | 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 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 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. • SC is a specialized consumer finance company focused on vehicle finance and third-party servicing. SC’s primary business is the indirect origination of RICs, 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 FCA that became effective May 1, 2013, SC offers a full spectrum of auto financing products and services to FCA customers and dealers under the Chrysler Capital brand. These products and services include consumer RICs and leases, as well as dealer loans for inventory, construction, real estate, working capital and revolving lines of credit. SC also originates vehicle loans through a Web-based direct lending program, purchases vehicle RICs from other lenders, and services automobile, recreational and marine vehicle portfolios for other lenders. Additionally, SC has several relationships through which it provides personal loans, private label credit cards and other consumer finance products. During 2015, SC announced its intention to exit the personal lending business. SC has entered into a number of intercompany agreements with the Bank as described above as part of the Other segment. All intercompany revenue and fees between the Bank and SC 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, SC continues to be managed as a separate business unit. The Company’s segment results, excluding SC, 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 ("FTP") 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. The Chief Operating Decision Maker ("CODM"), as described by ASC 280, Segment Reporting, manages SC on a historical basis by reviewing the results of SC on a pre-Change in Control basis. The Results of Segments table discloses SC's operating information on the same basis that it is reviewed by SHUSA's CODM to reconcile to SC's GAAP results, purchase price adjustments and accounting for SC as an equity method investment. All prior period results have been recast to conform to the new composition of the reportable segments. Certain segments previously deemed quantitatively significant no longer met the threshold and have been combined with the Other category as of March 31, 2016 . Prior period results have been recast to conform to the new composition of the reportable segment. Results of Segments The following tables present certain information regarding the Company’s segments. For the Three-Month Period Ended SHUSA Reportable Segments March 31, 2016 Consumer and Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SC (3) SC Purchase Price Adjustments (4) Eliminations (4) Total (in thousands) Net interest income $ 218,389 $ 77,183 $ 64,757 $ 60,317 $ (21,406 ) $ 1,163,578 $ 51,773 $ 1,461 $ 1,616,052 Total non-interest income 174,165 12,602 2,062 17,267 35,869 353,191 13,782 (11,237 ) 597,701 Provision/(release) for credit losses (6,504 ) 61,661 12,680 47,795 4,313 660,170 102,163 — 882,278 Total expenses 403,065 44,595 19,599 34,952 149,363 527,657 14,733 (12,937 ) 1,181,027 Income/(loss) before income taxes (4,007 ) (16,471 ) 34,540 (5,163 ) (139,213 ) 328,942 (51,341 ) 3,161 150,448 Intersegment (expense)/revenue (1) 548 990 500 (2,109 ) 71 — — — — Total assets 21,293,161 11,734,670 15,552,072 12,555,445 33,091,504 36,797,775 — — 131,024,627 (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 Parent Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SC by analyzing the pre-Change in Control results of SC as disclosed in this column. (4) Purchase Price Adjustments represents the impact that SC purchase marks had on the results of SC 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 Reportable Segments March 31, 2015 Consumer and Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SC (3) SC Purchase Price Adjustments (4) Eliminations (4) Total (in thousands) Net interest income $ 204,714 $ 64,238 $ 65,320 $ 49,090 $ 15,714 $ 1,109,958 $ 113,936 $ 87 $ 1,623,057 Total non-interest income 156,268 11,658 7,835 15,971 23,713 327,479 59,303 (15,724 ) 586,503 Provision/(release) for credit losses 697 1,614 10,838 2,751 31,100 631,847 374,792 — 1,053,639 Total expenses 420,991 44,593 17,673 24,974 43,551 440,322 13,743 (13,676 ) 992,171 Income/(loss) before income taxes (60,706 ) 29,689 44,644 37,336 (35,224 ) 365,268 (215,296 ) (1,961 ) 163,750 Intersegment revenue/(expense) (1) 363 976 359 (2,325 ) 627 — — — — Total assets 22,394,925 15,497,925 14,037,580 11,763,672 25,602,484 34,119,945 — — 123,416,531 (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 Parent Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SC by analyzing the pre-Change in Control results of SC as disclosed in this column. (4) Purchase Price Adjustments represent the impact that SC purchase marks had on the results of SC included within the consolidated operations of SHUSA, while eliminations eliminate intercompany transactions. |
RESTATEMENTS
RESTATEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENTS | RESTATEMENTS Subsequent to the issuance of the Company's March 31, 2016 Consolidated Financial Statements, the Company identified errors in its historical financial statements, including for the three months ended March 31, 2016. Accordingly, the Company has restated the unaudited interim Condensed Consolidated Financial Statements as of and for the three-months ended March 31, 2016 to reflect the error corrections. The most significant errors originate from SC, a significant subsidiary of the Company. Correction of Errors • The Company determined that its historical methodology for estimating its credit loss allowance for RICs held for investment was in error as it utilized the original contractual interest rate rather than the original effective 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 $72.8 million as of March 31, 2016 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 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 the that absence of segmentation into pools of homogeneous loans was in error. (iv) The Company previously had recorded charge offs based on unpaid principal balance. 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 the 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 March 31, 2016: March 31, 2016 (in thousands) Overstatement of loans held for investment $ 143,909 (Under)/Overstatement of allowance (TDR impairment) $ 31,100 This error also had the following impacts on the condensed consolidated statements of operations and comprehensive (loss)/income: March 31, 2016 (in thousands) Overstatement of Interest income - Loans $ (40,132 ) Overstatement of Provision for credit losses 48,362 Understatement of Miscellaneous income 737 $ 8,967 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. ASC 310, Receivables, refers to the recorded investment in the loan as the appropriate accounting basis. 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 $94.9 million as of March 31, 2016, 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 recorded an $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 . In addition, during the fourth quarter of 2015, the Company recorded an additional $3.5 million relating to the trade name. The impairments in 2014 and 2015 were recorded within amortization expense of intangible assets. In addition to the restatement of the Company's 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 4 Loans and Allowance for Credit Losses • Note 5 Leased Vehicles • Note 6 Variable Interest Entities • Note 7 Goodwill and Other Intangibles • Note 8 Other Assets • Note 11 Derivatives • Note 12 Income Taxes • Note 13 Accumulated Other Comprehensive Income/(Loss) • Note 15 Related Party Transactions • Note 16 Fair Value • Note 17 Business Segment Information NOTE 18. RESTATEMENTS (continued) The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Cash and cash equivalents $ 6,647,408 $ (43,960 ) $ 6,603,448 Loans held-for-investment 81,213,607 (119,365 ) 81,094,242 Allowance for loan and lease losses (3,533,940 ) 53,337 (3,480,603 ) Net loans held-for-investment 77,679,667 (66,028 ) 77,613,639 Leased vehicles, net 8,980,530 (21,302 ) 8,959,228 Restricted cash 3,002,322 (78,719 ) 2,923,603 Other assets 2,168,999 135,726 2,304,725 Total assets 131,098,910 (74,283 ) 131,024,627 Accrued expenses and payables 1,686,311 (170,112 ) 1,516,199 Advance payments by borrowers for taxes and insurance 232,925 (1,818 ) 231,107 Deferred tax liabilities, net 443,082 29,490 472,572 Other liabilities 773,872 44,017 817,889 Total liabilities 111,356,941 (98,423 ) 111,258,518 Stockholder's equity Common stock and paid-in-capital 14,704,909 11,942 14,716,851 Accumulated other comprehensive (loss)/ income (42,359 ) 15,680 (26,679 ) Retained earnings 2,376,115 (14,553 ) 2,361,562 Total SHUSA stockholder's equity 17,234,110 13,069 17,247,179 Noncontrolling interest 2,507,859 11,071 2,518,930 Total stockholder's equity 19,741,969 24,140 19,766,109 Total liabilities and stockholder's equity $ 131,098,910 $ (74,283 ) $ 131,024,627 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 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 March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Interest on loans $ 1,899,185 $ (40,132 ) $ 1,859,053 Total interest income 2,009,636 (40,132 ) 1,969,504 Net interest income 1,656,184 (40,132 ) 1,616,052 Provision for credit losses 920,439 (38,161 ) 882,278 Net interest income after provision for credit losses 735,745 (1,971 ) 733,774 Consumer fees 123,682 785 124,467 Lease income 434,652 (13,132 ) 421,520 Miscellaneous income/expense (50,294 ) 8,413 (41,881 ) Total fees and other income 575,214 (3,934 ) 571,280 Total non-interest income 601,635 (3,934 ) 597,701 Compensation and benefits 366,119 2,000 368,119 Loan expense 99,995 (1,350 ) 98,645 Lease expense 293,779 (897 ) 292,882 Other administrative expenses 80,321 1,316 81,637 Total general and administrative expenses 1,108,205 1,069 1,109,274 Amortization of intangibles 35,238 (20,300 ) 14,938 Deposit insurance premiums and other expenses 22,235 1,623 23,858 Total other expenses 90,430 (18,677 ) 71,753 Income/(loss) before income taxes 138,745 11,703 150,448 Income tax provision/(benefit) 65,010 386 65,396 Net income/(loss) including noncontrolling interest 73,735 11,317 85,052 Less: net income/(loss) attributable to noncontrolling interest 61,895 9,380 71,275 Net income/(loss) attributable to SHUSA $ 11,840 $ 1,937 $ 13,777 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Consolidated Statement of Comprehensive Income for the three-month period ended March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 73,735 $ 11,317 $ 85,052 Net unrealized (losses) on cash flow hedge derivative financial instruments, net of tax (48,207 ) 15,680 (32,527 ) Total other comprehensive income, net of tax 97,282 15,680 112,962 Comprehensive income 171,017 26,997 198,014 Net income attributable to noncontrolling interest 61,895 9,380 71,275 Comprehensive income attributable to SHUSA $ 109,122 $ 17,617 $ 126,739 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. 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 three-month period ended March 31, 2016 : Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity As Reported (1) Corrections As Restated (in thousands) Balance, Beginning of period $ 14,717,625 $ (139,641 ) $ 2,367,925 $ 2,427,599 $ 19,568,953 $ 11,941 $ — $ (16,490 ) $ 17,371 $ 12,822 $ 14,729,566 $ (139,641 ) $ 2,351,435 $ 2,444,970 $ 19,581,775 Comprehensive loss attributable to SHUSA — 97,282 11,840 15,680 109,122 — 15,680 1,937 (31,360 ) 17,617 — 112,962 13,777 (15,680 ) 126,739 Comprehensive income attributable to NCI — — — 61,895 61,895 — — — 9,380 9,380 — — — 71,275 71,275 Impact of SC Stock Option (13,112 ) — — 2,685 (10,427 ) 1 — — 15,680 15,681 (13,111 ) — — 18,365 5,254 Balance, End of period $ 14,704,909 $ (42,359 ) $ 2,376,115 $ 2,507,859 $ 19,741,969 $ 11,942 $ 15,680 $ (14,553 ) $ 11,071 $ 24,140 $ 14,716,851 $ (26,679 ) $ 2,361,562 $ 2,518,930 $ 19,766,109 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 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 three-month period ended March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 73,735 $ 11,317 $ 85,052 Provision for credit losses 920,439 (38,161 ) 882,278 Deferred tax expense 53,474 384 53,858 Depreciation, amortization and accretion 186,238 26,592 212,830 Net loss/(gain) on sale of loans 74,000 (4,095 ) 69,905 Stock-based compensation 4,723 13,884 18,607 Net change in other assets and bank-owned life insurance (122,411 ) (58,594 ) (181,005 ) Net change in other liabilities 102,639 (37,618 ) 65,021 Net cash provided by operating activities 835,985 (86,291 ) 749,694 Net change in restricted cash (577,163 ) 78,719 (498,444 ) Proceeds from the sale and termination of leased vehicles 483,353 (2,749 ) 480,604 Net cash used in investing activities (2,259,851 ) 75,970 (2,183,881 ) Net proceeds from long-term borrowings 13,305,671 67,599 13,373,270 Repayments of long-term borrowings (10,683,801 ) (67,599 ) (10,751,400 ) Net change in advance payments by borrowers for taxes and insurance 59,995 (25 ) 59,970 Proceeds from the issuance of common stock 765 (508 ) 257 Net cash provided by financing activities 3,046,126 (533 ) 3,045,593 Net change in cash and cash equivalents 1,622,260 (10,854 ) 1,611,406 Cash and cash equivalents, beginning of period 5,025,148 (33,106 ) 4,992,042 Cash and cash equivalents, end of period $ 6,647,408 $ (43,960 ) $ 6,603,448 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. |
BASIS OF PRESENTATION AND ACC27
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). These Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries, including the Bank, SC, 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 unaudited Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to Securities and Exchange Commission ("SEC") regulations. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. 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 Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Stockholder's Equity and Condensed Consolidated Statements of Cash Flows for the periods indicated, and contain adequate disclosure for a fair presentation of this interim financial information. |
Recently Adopted Accounting Policies and Recent Accounting Developments | Recently Adopted Accounting Policies During the first quarter of 2016, the Company adopted the following Financial Accounting Standards Board ("FASB") Accounting Standards Updates ("ASUs"), none of which had a material impact to the Company's Consolidated Financial Statements: • The Company adopted 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) on a prospective basis. This ASU was issued by the FASB in June 2014 and 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 Accounting Standards Codification ("ASC") 718 as it relates to awards with performance conditions that affect vesting should continue to be used to account for such awards. • The Company also adopted ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items on a prospective basis . This ASU was issued by FASB in January 2015 and eliminates the concept of extraordinary items from GAAP, which previously required the separate classification, presentation, and disclosure of extraordinary events and transactions. • The Company also adopted ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis, which the FASB issued in February 2015. This ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, this ASU modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities (VOEs); eliminates the presumption that a general partner should consolidate a limited partnership; potentially changes the consolidation conclusions of reporting entities that are involved with VIEs, in particular those that have fee arrangements and related party arrangements; and provides a scope exception for reporting entities with interests held in certain money market funds and similar unregistered money market funds. As the adoption did not result in any significant impact to the Company’s consolidated financial statements, it did not result in a retrospective or modified retrospective application. • The Company also adopted ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) on a retrospective basis . 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. • The Company also adopted ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments on a prospective basis . This amendment eliminates the requirement to account for adjustments to provisional amounts recognized in a business combination retrospectively. 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. 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 beginning after December 15, 2017. In March 2016, the FASB also issued ASU 2016-08, an amendment to the guidance in ASU 2014-09 which revises the structure of the indicators to provide indicators of when the entity is the principal or agent in a revenue transaction, and eliminated two of the indicators (“the entity’s consideration is in the form of a commission” and “the entity is not exposed to credit risk”) in making that determination. This amendment also clarifies that each indicator may be more or less relevant to the assessment depending on the terms and conditions of the contract. In April 2016, the FASB also issued ASU 2016-10, which clarifies the implementation guidance on identifying promised goods or services and on determining whether an entity's promise to grant a license with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The amendments, collectively, 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 ASU 2014-09 and the related updates to it 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 its 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 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments, except those accounted for under the equity method of accounting or which result in consolidation of the investee, be measured at fair value with changes in the fair value being recorded in net income. However, equity investments that do not have readily determinable fair values will be measured at cost less impairment, if any, plus the effect of changes resulting from observable price transactions in orderly transactions or for the identical or similar investment of the same issuer. The amendment also simplifies the impairment assessment of equity instruments that do not have readily determinable fair values, eliminates the requirement to disclose methods and assumptions used to estimate fair value of instruments measured at their amortized cost on the balance sheet, requires that the disclosed fair values of financial instruments represent "exit price," requires entities to separately present in other comprehensive income the portion of the total change in fair value of a liability resulting from instrument-specific credit risk when the FVO has been elected for that liability, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes, and clarifies that an entity should evaluate the need for a valuation allowance on its deferred tax asset related to its available-for-sale securities in combination with its other deferred tax assets. This amendment will be effective for the Company for the first reporting period beginning after December 15, 2017, with earlier adoption permitted by public entities on a limited basis. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Company is in the process of evaluating the impacts of the adoption of this ASU. NOTE 2. RECENT ACCOUNTING DEVELOPMENTS (continued) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The guidance in this update supersedes the current lease accounting guidance for both the lessees and lessors under ASC 840, Leases. The new guidance requires lessees to evaluate whether a lease is a finance lease using criteria that are similar to what lessees use today to determine whether they have a capital lease. Leases not classified as finance leases are classified as operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to today’s guidance for operating leases. The new guidance will require lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2018, with earlier adoption permitted. Adoption of the amendment must be applied on a modified retrospective approach. The Company is in the process of evaluating the impacts of the adoption of this ASU. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The new guidance clarifies that a change in the counterparties to a derivative contract, i.e., a novation, in and of itself, does not require the de-designation of a hedging relationship. An entity will, however, still need to evaluate whether it is probable that the counterparty will perform under the contract as part of its ongoing effectiveness assessment for hedge accounting. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Adoption of the new guidance can be applied on a modified retrospective or prospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. Also in March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments . The new guidance clarifies that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis of hybrid financial instruments. In other words, a contingent put or call option embedded in a debt instrument would be evaluated for possible separate accounting as a derivative instrument without regard to the nature of the exercise contingency. However, as required under existing guidance, companies will still need to evaluate other relevant embedded derivative guidance, such as whether the payoff from the contingent put or call option is adjusted based on changes in an index other than interest rates or credit risk, and whether the debt involves a substantial premium or discount. The new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. The new guidance is required to be adopted on a modified retrospective basis to all existing and future debt instruments. The Company is in the process of evaluating the impacts of the adoption of this ASU. Additionally, in March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323) . The new guidance eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. Instead, the equity method of accounting should be applied prospectively from the date significant influence is obtained. Investors should add the cost of acquiring the additional interest in the investee (if any) to the current basis of their previously held interest. The new standard also provides specific guidance for available-for-sale securities that become eligible for the equity method of accounting. In those cases, any unrealized gain or loss recorded within accumulated other comprehensive income should be recognized in earnings at the date the investment initially qualifies for the use of the equity method of accounting. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Adoption of the new guidance can be applied only a prospective basis for investments those qualify for the equity method of accounting after the effective date. The Company is in the process of evaluating the impacts of the adoption of this ASU. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) . The new guidance simplifies certain aspects related to income taxes, SCF, and forfeitures when accounting for share-based payment transactions. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2016, with earlier adoption permitted. Certain of the amendments related to timing of the recognition of tax benefits and tax withholding requirements should be applied using a modified retrospective transition method. Amendments related to the presentation of the SCF should be applied retrospectively. All other provisions may be applied on a prospective or modified retrospective basis. The Company is in the process of evaluating the impacts of the adoption of this ASU. |
Subsequent Events | Subsequent Events The Company evaluated events from the date of the Condensed Consolidated Financial Statements on March 31, 2016 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 three-month period ended March 31, 2016 other than the transactions disclosed within Note 10 and Note 14 of these Condensed Consolidated Financial Statements |
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 Company 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. |
Troubled Debt Restructuring | Commercial Loan TDRs All of the Company’s commercial loan modifications are based on the circumstances of the individual customer, including specific customers' complete relationships with the Company. Loan terms are modified to meet each borrower’s specific circumstances at a point in time and may allow for modifications such as term extensions, interest rate reductions, etc. 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. Commercial 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). 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 4. 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 RICs and auto loans, 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 or principal forgiveness. Consumer TDRs excluding RICs 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 implemented. After modification, RICs are classified as current and continue to accrue interest as long as they remain less than 60 days past due. 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 proceedings to be considered TDRs and collateral-dependent, regardless of delinquency status. TDRs that are collateral-dependent loans must be written down to fair market value and classified as non-accrual/non-performing for the remaining life of the loan. TDR Impact to Allowance for Loan and Lease Losses The ALLL 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 status, 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 original effective interest rate or fair value of collateral, less costs to sell. The amount of the required ALLL 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 estimated cost to sell. Accordingly, upon TDR modification or if a TDR modification subsequently defaults, the allowance methodology remains unchanged. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 349,274 $ 468 $ — $ 349,742 Corporate debt securities 1,417,264 15,972 (3,646 ) 1,429,590 Asset-backed securities ("ABS") 2,038,606 9,621 (1,648 ) 2,046,579 Equity securities 10,964 5 (282 ) 10,687 State and municipal securities 21,278 349 — 21,627 Mortgage-backed securities ("MBS"): U.S. government agencies - Residential 5,871,610 51,967 (18,121 ) 5,905,456 U.S. government agencies - Commercial 1,094,751 16,994 (1,992 ) 1,109,753 FHLMC and FNMA - Residential debt securities (1) 9,498,678 80,842 (60,101 ) 9,519,419 FHLMC and FNMA - Commercial debt securities 137,804 2,749 (327 ) 140,226 Non-agency securities 37 — — 37 Total investment securities available-for-sale $ 20,440,266 $ 178,967 $ (86,117 ) $ 20,533,116 (1) Federal Home Loan Mortgage Corporation ("FHLMC") and Federal National Mortgage Association ("FNMA") December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value (in thousands) U.S. Treasury securities $ 3,192,411 $ 1,658 $ (5,681 ) $ 3,188,388 Corporate debt securities 1,476,801 10,021 (11,248 ) 1,475,574 Asset-backed securities 1,763,178 7,826 (1,494 ) 1,769,510 Equity securities 10,894 1 (408 ) 10,487 State and municipal securities 748,696 19,616 (432 ) 767,880 Mortgage-backed securities: U.S. government agencies - Residential 4,033,041 10,225 (36,513 ) 4,006,753 U.S. government agencies - Commercial 1,006,161 3,347 (7,153 ) 1,002,355 FHLMC and FNMA - Residential debt securities 8,636,745 10,556 (153,128 ) 8,494,173 FHLMC and FNMA - Commercial debt securities 138,094 723 (2,487 ) 136,330 Non-agency securities 45 — — 45 Total investment securities available-for-sale $ 21,006,066 $ 63,973 $ (218,544 ) $ 20,851,495 |
Investments Classified by Contractual Maturity Date | Contractual maturities of the Company’s debt securities available-for-sale at March 31, 2016 are as follows: Amortized Cost Fair Value (in thousands) Due within one year $ 545,999 $ 547,001 Due after 1 year but within 5 years 3,073,546 3,094,514 Due after 5 years but within 10 years 318,364 320,688 Due after 10 years 16,491,393 16,560,226 Total $ 20,429,302 $ 20,522,429 |
Gross Unrealized Loss and Fair Value of Securities Available-for-Sale | The following tables present the aggregate amount of unrealized losses as of March 31, 2016 and December 31, 2015 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: March 31, 2016 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 $ 261,839 $ (1,900 ) $ 174,222 $ (1,746 ) $ 436,061 $ (3,646 ) Asset-backed securities 260,657 (1,037 ) 67,243 (611 ) 327,900 (1,648 ) Equity securities 293 (2 ) 9,900 (280 ) 10,193 (282 ) Mortgage-backed securities: U.S. government agencies - Residential 762,829 (9,966 ) 733,921 (8,155 ) 1,496,750 (18,121 ) U.S. government agencies - Commercial 6,109 (28 ) 113,681 (1,964 ) 119,790 (1,992 ) FHLMC and FNMA - Residential debt securities 814,228 (3,550 ) 2,075,785 (56,551 ) 2,890,013 (60,101 ) FHLMC and FNMA - Commercial debt securities 23,855 (327 ) — — 23,855 (327 ) Total $ 2,129,810 $ (16,810 ) $ 3,174,752 $ (69,307 ) $ 5,304,562 $ (86,117 ) NOTE 3. INVESTMENT SECURITIES (continued) December 31, 2015 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities $ 2,243,343 $ (5,681 ) $ — $ — $ 2,243,343 $ (5,681 ) Corporate debt securities 775,366 (5,269 ) 152,486 (5,979 ) 927,852 (11,248 ) Asset-backed securities 300,869 (1,083 ) 35,126 (411 ) 335,995 (1,494 ) Equity securities 596 (7 ) 9,748 (401 ) 10,344 (408 ) State and municipal securities 15,665 (119 ) 26,024 (313 ) 41,689 (432 ) Mortgage-backed securities: U.S. government agencies - Residential 1,670,150 (11,164 ) 954,916 (25,349 ) 2,625,066 (36,513 ) U.S. government agencies - Commercial 367,706 (3,382 ) 114,038 (3,771 ) 481,744 (7,153 ) FHLMC and FNMA - Residential debt securities 4,650,327 (38,013 ) 2,127,962 (115,115 ) 6,778,289 (153,128 ) FHLMC and FNMA - Commercial debt securities 115,347 (2,487 ) — — 115,347 (2,487 ) Total $ 10,139,369 $ (67,205 ) $ 3,420,300 $ (151,339 ) $ 13,559,669 $ (218,544 ) |
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 2016 2015 (in thousands) Proceeds from the sales of available-for-sale securities $ 3,435,844 $ 1,010,515 Gross realized gains $ 26,707 $ 10,782 Gross realized (losses) (276 ) (1,225 ) OTTI (10 ) — Net realized gains $ 26,421 $ 9,557 |
LOANS AND ALLOWANCE FOR CREDI29
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Loans Receivable | The following table presents the composition of the gross loans and leases held-for-investment by type of loan and by fixed and variable rates at the dates indicated: March 31, 2016 December 31, 2015 Amount Percent Amount Percent (in thousands) Commercial loans held-for-investment: Commercial real estate loans $ 9,315,291 11.5 % $ 8,722,917 11.0 % Commercial and industrial loans 20,336,828 25.1 % 19,787,834 24.9 % Multifamily loans 9,330,482 11.5 % 9,438,463 11.9 % Other commercial (2) 2,739,515 3.4 % 2,676,506 3.4 % Total commercial loans held-for-investment 41,722,116 51.5 % 40,625,720 51.2 % Consumer loans secured by real estate: Residential mortgages 6,219,967 7.7 % 6,230,995 7.8 % Home equity loans and lines of credit 6,103,844 7.5 % 6,151,232 7.7 % Total consumer loans secured by real estate 12,323,811 15.2 % 12,382,227 15.5 % Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated 20,088,220 24.8 % 18,539,588 23.4 % Retail installment contracts and auto loans - purchased 5,293,741 6.4 % 6,108,210 7.7 % Personal unsecured loans 693,328 0.9 % 685,467 0.9 % Other consumer (3) 973,026 1.2 % 1,032,580 1.3 % Total consumer loans 39,372,126 48.5 % 38,748,072 48.8 % Total loans held-for-investment (1) $ 81,094,242 100.0 % $ 79,373,792 100.0 % Total loans held-for-investment: Fixed rate $ 47,394,655 58.4 % $ 46,721,562 58.9 % Variable rate 33,699,587 41.6 % 32,652,230 41.1 % Total loans held-for-investment (1) $ 81,094,242 100.0 % $ 79,373,792 100.0 % (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 increase in the loan balances of $252.1 million and $26.3 million as of March 31, 2016 and December 31, 2015 , 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. |
Allowance for Credit Losses by Portfolio Segment | The activity in the ACL by portfolio segment for the three-month periods ended March 31, 2016 and 2015 was as follows: Three-Month Period Ended March 31, 2016 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 435,717 $ 2,679,666 $ 45,328 $ 3,160,711 Provision for loan and lease losses 111,034 746,633 — 857,667 Charge-offs (40,315 ) (1,129,413 ) — (1,169,728 ) Recoveries 25,414 606,539 — 631,953 Charge-offs, net of recoveries (14,901 ) (522,874 ) — (537,775 ) Allowance for loan and lease losses, end of period $ 531,850 $ 2,903,425 $ 45,328 $ 3,480,603 Reserve for unfunded lending commitments, beginning of period $ 147,397 $ — $ — $ 147,397 Provision for unfunded lending commitments 24,611 — — 24,611 Loss on unfunded lending commitments — — — — Reserve for unfunded lending commitments, end of period 172,008 — — 172,008 Total allowance for credit losses, end of period $ 703,858 $ 2,903,425 $ 45,328 $ 3,652,611 Ending balance, individually evaluated for impairment (1) $ 129,399 $ 1,009,528 $ — $ 1,138,927 Ending balance, collectively evaluated for impairment 402,451 1,893,896 45,328 2,341,675 Financing receivables: Ending balance $ 41,722,116 $ 41,915,467 $ — $ 83,637,583 Ending balance, evaluated under the fair value option or lower of cost or fair value (2) — 2,829,151 — 2,829,151 Ending balance, individually evaluated for impairment (1) 638,617 4,435,725 — 5,074,342 Ending balance, collectively evaluated for impairment 41,083,499 34,650,591 — 75,734,090 (1) Consists primarily of loans in TDR status (2) Represents LHFS and those loans for which the Company has elected the FVO. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three-Month Period Ended March 31, 2015 Commercial Consumer Unallocated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 401,553 $ 1,267,025 $ 33,024 $ 1,701,602 Provision for loan and lease losses 24,801 995,563 38,275 1,058,639 Other (1) — (27,117 ) — (27,117 ) Charge-offs (19,339 ) (942,975 ) — (962,314 ) Recoveries 5,999 504,478 — 510,477 Charge-offs, net of recoveries (13,340 ) (438,497 ) — (451,837 ) Allowance for loan and lease losses, end of period $ 413,014 $ 1,796,974 $ 71,299 $ 2,281,287 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 127,641 — — 127,641 Total allowance for credit losses, end of period $ 540,655 $ 1,796,974 $ 71,299 $ 2,408,928 Ending balance, individually evaluated for impairment (2) $ 78,665 $ 286,453 $ — $ 365,118 Ending balance, collectively evaluated for impairment 334,349 1,510,521 71,299 1,916,169 Financing receivables: Ending balance $ 38,335,323 $ 41,465,532 $ — $ 79,800,855 Ending balance, evaluated under the fair value option or lower of cost or fair value (3) 44,325 1,993,666 — 2,037,991 Ending balance, individually evaluated for impairment (2) 478,179 3,020,216 — 3,498,395 Ending balance, collectively evaluated for impairment 37,812,819 36,451,650 — 74,264,469 (1) The "Other" amount represents the impact on the ALLL in connection with SC classifying approximately $1.0 billion of RICs as held-for-sale during the first quarter of 2015. (2) Consists primarily of loans in TDR status. (3) Represents LHFS and those loans for which the Company has elected the FVO. 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 March 31, 2016 Purchased Originated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 590,807 $ 1,891,989 $ 2,482,796 Provision for / (Release of) loan and lease losses 73,635 674,420 748,055 Other — — — Charge-offs (264,792 ) (825,080 ) (1,089,872 ) Recoveries 189,457 395,941 585,398 Charge-offs, net of recoveries (75,335 ) (429,139 ) (504,474 ) Allowance for loan and lease losses, end of period $ 589,107 $ 2,137,270 $ 2,726,377 NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Three Month Period Ended March 31, 2015 Purchased Originated Total (in thousands) Allowance for loan and lease losses, beginning of period $ 963 $ 709,024 $ 709,987 Provision for / (Release of) loan and lease losses 498,905 380,138 879,043 Other (27,117 ) — (27,117 ) Charge-offs (487,624 ) (319,002 ) (806,626 ) Recoveries 334,104 149,993 484,097 Charge-offs, net of recoveries (153,520 ) (169,009 ) (322,529 ) Allowance for loan and lease losses, end of period $ 319,231 $ 920,153 $ 1,239,384 |
Schedule of Non-accrual Loans | The recorded investment in non-accrual loans disaggregated by class of financing receivables and other non-performing assets is summarized as follows: March 31, 2016 December 31, 2015 (in thousands) Non-accrual loans: Commercial: Commercial real estate: Corporate banking $ 86,397 $ 71,979 Middle market commercial real estate 69,249 37,745 Santander real estate capital 2,754 3,454 Commercial and industrial 249,463 85,745 Multifamily 4,855 9,162 Other commercial 2,959 2,982 Total commercial loans 415,677 211,067 Consumer: Residential mortgages 168,212 173,780 Home equity loans and lines of credit 123,883 127,171 Retail installment contracts and auto loans - originated 541,565 701,785 Retail installment contracts and auto loans - purchased 262,233 417,276 Personal unsecured loans 400 895 Other consumer 16,474 23,125 Total consumer loans 1,112,767 1,444,032 Total non-accrual loans 1,528,444 1,655,099 Other real estate owned ("OREO") 36,981 38,959 Repossessed vehicles 188,744 172,375 Foreclosed and other repossessed assets 1,821 374 Total OREO and other repossessed assets 227,546 211,708 Total non-performing assets $ 1,755,990 $ 1,866,807 |
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 March 31, 2016 30-89 Greater Total Current Total (1) Recorded Investment (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,862 $ 31,754 $ 50,616 $ 2,908,560 $ 2,959,176 $ — Middle market commercial real estate 39,964 18,014 57,978 4,797,107 4,855,085 — Santander real estate capital 10,240 — 10,240 1,490,790 1,501,030 — Commercial and industrial 54,518 38,407 92,925 20,243,903 20,336,828 — Multifamily 2,117 284 2,401 9,328,081 9,330,482 — Other commercial 7,185 982 8,167 2,731,348 2,739,515 — Consumer: Residential mortgages 122,560 138,503 261,063 6,178,055 6,439,118 — Home equity loans and lines of credit 28,548 77,532 106,080 5,997,764 6,103,844 — Retail installment contracts and auto loans - originated 1,773,921 158,701 1,932,622 19,500,968 21,433,590 — Retail installment contracts and auto loans - purchased 887,473 64,310 951,783 4,341,958 5,293,741 — Personal unsecured loans 79,949 77,102 157,051 1,515,097 1,672,148 72,878 Other consumer 33,103 25,231 58,334 914,692 973,026 — Total $ 3,058,440 $ 630,820 $ 3,689,260 $ 79,948,323 $ 83,637,583 $ 72,878 (1) Financing receivables include LHFS. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) As of December 31, 2015 30-89 Greater Total Current Total (1) Recorded (in thousands) Commercial: Commercial real estate: Corporate banking $ 18,085 $ 30,000 $ 48,085 $ 2,901,004 $ 2,949,089 $ — Middle market commercial real estate 575 21,063 21,638 4,201,721 4,223,359 — Santander real estate capital — 654 654 1,549,815 1,550,469 — Commercial and industrial 31,067 44,032 75,099 19,799,134 19,874,233 — Multifamily 2,951 4,537 7,488 9,430,975 9,438,463 — Other commercial 3,968 2,079 6,047 2,670,459 2,676,506 — Consumer: Residential mortgages 140,323 142,510 282,833 6,184,922 6,467,755 — Home equity loans and lines of credit 28,166 79,715 107,881 6,043,351 6,151,232 — Retail installment contracts and auto loans - originated 2,149,480 212,569 2,362,049 17,083,248 19,445,297 — Retail installment contracts and auto loans - purchased 1,242,545 109,258 1,351,803 4,756,407 6,108,210 — Personal unsecured loans 78,741 83,686 162,427 2,477,454 2,639,881 79,729 Other consumer 41,667 32,573 74,240 958,340 1,032,580 — Total $ 3,737,568 $ 762,676 $ 4,500,244 $ 78,056,830 $ 82,557,074 $ 79,729 (1) Financing receivables include LHFS. |
Schedule of Impaired Loans by Class | December 31, 2015 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 40,843 $ 43,582 $ — $ 39,289 Middle market commercial real estate 78,325 123,495 — 103,059 Santander real estate capital 2,815 2,815 — 2,899 Commercial and industrial 3,635 5,046 — 5,780 Multifamily 9,467 10,488 — 15,980 Other commercial 239 239 — 164 Consumer: Residential mortgages 26,808 26,808 — 25,108 Home equity loans and lines of credit 31,080 31,080 — 29,155 Retail installment contracts and auto loans - originated 15 15 — 8 Retail installment contracts and auto loans - purchased 75,698 96,768 — 931,411 Personal unsecured loans 12,865 12,865 — 6,729 Other consumer 12,495 16,002 — 9,048 With an allowance recorded: Commercial: Corporate banking 31,376 32,650 6,413 45,663 Middle market commercial real estate 38,046 43,745 5,624 49,072 Santander real estate capital 654 782 98 2,266 Commercial and industrial 113,358 142,308 35,184 88,771 Multifamily 5,653 5,658 443 5,816 Other commercial 3,216 4,465 749 2,574 Consumer: Residential mortgages 172,265 200,176 25,034 151,539 Home equity loans and lines of credit 71,847 86,355 3,757 65,990 Retail installment contracts and auto loans - originated 1,325,975 1,359,585 408,208 691,244 Retail installment contracts and auto loans - purchased 2,454,108 2,773,536 454,926 1,227,054 Personal unsecured loans 1,839 2,226 430 9,158 Other consumer 18,663 23,790 3,225 17,479 Total: Commercial $ 327,627 $ 415,273 $ 48,511 $ 361,333 Consumer 4,203,658 4,629,206 895,580 3,163,923 Total $ 4,531,285 $ 5,044,479 $ 944,091 $ 3,525,256 (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. Impaired loans disaggregated by class of financing receivables are summarized as follows: March 31, 2016 Recorded Investment (1) Unpaid Related Average (in thousands) With no related allowance recorded: Commercial: Commercial real estate: Corporate banking $ 34,657 $ 37,396 $ — $ 37,750 Middle market commercial real estate 77,307 122,255 — 77,816 Santander real estate capital 2,754 2,754 — 2,785 Commercial and industrial 5,360 6,636 — 4,498 Multifamily 13,525 14,537 — 11,496 Other commercial 193 193 — 216 Consumer: Residential mortgages 68,860 68,860 — 47,834 Home equity loans and lines of credit 52,211 52,211 — 41,646 Retail installment contracts and auto loans - originated 12 12 — 14 Retail installment contracts and auto loans - purchased 61,649 78,831 — 68,674 Personal unsecured loans (2) 19,775 19,775 — 16,320 Other consumer 19,800 24,026 — 16,148 With an allowance recorded: Commercial: Commercial real estate: Corporate banking 41,908 43,172 7,814 36,642 Middle market commercial real estate 73,054 83,875 13,100 55,550 Santander real estate capital — — — 327 Commercial and industrial 310,338 315,312 108,141 211,848 Multifamily 4,285 4,290 233 4,969 Other commercial 624 1,077 111 1,920 Consumer: Residential mortgages 131,665 159,330 25,157 151,965 Home equity loans and lines of credit 51,512 66,348 4,242 61,680 Retail installment contracts and auto loans - originated 1,687,960 1,727,498 509,735 1,506,968 Retail installment contracts and auto loans - purchased 2,324,690 2,627,273 466,941 2,389,399 Personal unsecured loans 1,607 2,838 421 1,723 Other consumer 14,567 18,996 3,032 16,615 Total: Commercial $ 564,005 $ 631,497 $ 129,399 $ 445,817 Consumer 4,434,308 4,845,998 1,009,528 4,318,986 Total $ 4,998,313 $ 5,477,495 $ 1,138,927 $ 4,764,803 (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. |
Schedule of Financing Receivable by LTV | 110% Grand Total FICO ® Score (in thousands) N/A (1) $ 189,921 $ 553 $ 919 $ — $ — $ 191,393 <600 10,979 150,526 75,867 21,222 20,745 279,339 600-639 8,447 138,913 83,320 20,173 12,142 262,995 640-679 11,587 252,008 175,327 31,474 25,246 495,642 680-719 11,691 430,595 322,550 55,127 30,885 850,848 720-759 10,456 613,886 428,576 62,879 39,619 1,155,416 >=760 28,449 1,616,776 1,023,547 130,401 69,038 2,868,211 Grand Total $ 271,530 $ 3,203,257 $ 2,110,106 $ 321,276 $ 197,675 $ 6,103,844 (1) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (2) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company. Residential Mortgages (1)(3) December 31, 2015 N/A (2) LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (2) $ 461,839 $ 12,250 $ 2,769 $ — $ — $ — $ — $ 476,858 <600 128 226,185 69,698 30,491 18,279 8,441 9,602 362,824 600-639 1 158,290 43,002 23,281 15,585 5,238 7,579 252,976 640-679 230 252,727 81,552 35,001 29,125 9,101 12,034 419,770 680-719 19 462,180 183,568 62,670 51,659 9,194 22,770 792,060 720-759 339 681,473 341,934 72,729 55,461 11,024 20,982 1,183,942 >=760 84 2,049,268 717,671 112,721 57,385 21,580 20,616 2,979,325 Grand Total $ 462,640 $ 3,842,373 $ 1,440,194 $ 336,893 $ 227,494 $ 64,578 $ 93,583 $ 6,467,755 (1) Includes LHFS. (2) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO® score is unavailable. (3) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Home Equity Loans and Lines of Credit (2) December 31, 2015 N/A (1) LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (1) $ 192,379 $ 390 $ 305 $ — $ — $ 193,074 <600 11,110 155,306 79,389 22,373 22,261 290,439 600-639 8,871 140,277 83,548 20,766 12,525 265,987 640-679 12,534 254,481 174,223 32,925 26,565 500,728 680-719 14,273 431,818 317,260 56,589 31,722 851,662 720-759 12,673 614,748 425,744 63,840 39,981 1,156,986 >=760 34,579 1,644,168 1,007,561 135,571 70,477 2,892,356 Grand Total $ 286,419 $ 3,241,188 $ 2,088,030 $ 332,064 $ 203,531 $ 6,151,232 (1) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (2) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company." id="sjs-B9">Residential mortgage and home equity financing receivables by LTV and FICO ® range are summarized as follows: Residential Mortgages (1)(3) March 31, 2016 N/A (2) LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (2) $ 434,206 $ 13,447 $ 1,273 $ — $ — $ — $ — $ 448,926 <600 124 221,524 61,470 26,279 19,021 9,100 10,509 348,027 600-639 53 150,320 40,977 22,786 13,105 4,091 6,845 238,177 640-679 66 257,146 97,181 39,952 39,929 8,262 10,465 453,001 680-719 84 464,194 167,379 62,961 48,935 7,942 18,479 769,974 720-759 108 673,413 336,181 65,824 54,597 10,846 19,882 1,160,851 >=760 345 2,061,656 750,250 111,211 57,432 18,473 20,795 3,020,162 Grand Total $ 434,986 $ 3,841,700 $ 1,454,711 $ 329,013 $ 233,019 $ 58,714 $ 86,975 $ 6,439,118 (1) Includes LHFS. (2) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (3) Allowance model considers LTV for financing receivables in first lien position for the Company and combined LTV ("CLTV") for financing receivables in second lien position for the Company. Home Equity Loans and Lines of Credit (2) March 31, 2016 N/A (1) LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (1) $ 189,921 $ 553 $ 919 $ — $ — $ 191,393 <600 10,979 150,526 75,867 21,222 20,745 279,339 600-639 8,447 138,913 83,320 20,173 12,142 262,995 640-679 11,587 252,008 175,327 31,474 25,246 495,642 680-719 11,691 430,595 322,550 55,127 30,885 850,848 720-759 10,456 613,886 428,576 62,879 39,619 1,155,416 >=760 28,449 1,616,776 1,023,547 130,401 69,038 2,868,211 Grand Total $ 271,530 $ 3,203,257 $ 2,110,106 $ 321,276 $ 197,675 $ 6,103,844 (1) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (2) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company. Residential Mortgages (1)(3) December 31, 2015 N/A (2) LTV<=70% 70.01-80% 80.01-90% 90.01-100% 100.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (2) $ 461,839 $ 12,250 $ 2,769 $ — $ — $ — $ — $ 476,858 <600 128 226,185 69,698 30,491 18,279 8,441 9,602 362,824 600-639 1 158,290 43,002 23,281 15,585 5,238 7,579 252,976 640-679 230 252,727 81,552 35,001 29,125 9,101 12,034 419,770 680-719 19 462,180 183,568 62,670 51,659 9,194 22,770 792,060 720-759 339 681,473 341,934 72,729 55,461 11,024 20,982 1,183,942 >=760 84 2,049,268 717,671 112,721 57,385 21,580 20,616 2,979,325 Grand Total $ 462,640 $ 3,842,373 $ 1,440,194 $ 336,893 $ 227,494 $ 64,578 $ 93,583 $ 6,467,755 (1) Includes LHFS. (2) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO® score is unavailable. (3) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company. NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES (As Restated) (continued) Home Equity Loans and Lines of Credit (2) December 31, 2015 N/A (1) LTV<=70% 70.01-90% 90.01-110% LTV>110% Grand Total FICO ® Score (in thousands) N/A (1) $ 192,379 $ 390 $ 305 $ — $ — $ 193,074 <600 11,110 155,306 79,389 22,373 22,261 290,439 600-639 8,871 140,277 83,548 20,766 12,525 265,987 640-679 12,534 254,481 174,223 32,925 26,565 500,728 680-719 14,273 431,818 317,260 56,589 31,722 851,662 720-759 12,673 614,748 425,744 63,840 39,981 1,156,986 >=760 34,579 1,644,168 1,007,561 135,571 70,477 2,892,356 Grand Total $ 286,419 $ 3,241,188 $ 2,088,030 $ 332,064 $ 203,531 $ 6,151,232 (1) Residential mortgages and home equity loans and lines of credit in the "N/A" range for LTV or FICO ® score primarily represent loans serviced by others, in run-off portfolios or for which a current LTV or FICO ® score is unavailable. (2) Allowance model considers LTV for financing receivables in first lien position for the Company and CLTV for financing receivables in second lien position for the Company. |
Summary of Performing and Non-performing TDRs | The following table summarizes the Company’s performing and non-performing TDRs at the dates indicated: March 31, 2016 December 31, 2015 (in thousands) Performing $ 4,178,248 $ 3,797,231 Non-performing 509,592 602,315 Total $ 4,687,840 $ 4,399,546 |
Schedule of Troubled Debt Restructurings | The following tables detail the activity of TDRs for the three-month periods ended March 31, 2016 and March 31, 2015 , respectively: Three-Month Period Ended March 31, 2016 Number of Pre-TDR Recorded (1) Term Extension Principal Forbearance Other (4) Post-TDR Recorded Investment (2) (in thousands) Commercial: Commercial real estate: Corporate Banking 9 $ 47,776 $ (16 ) $ (10,583 ) $ (11 ) $ 37,166 Middle market 3 10,454 — — (69 ) 10,385 Commercial and industrial 223 7,230 (1 ) — — 7,229 Consumer: Residential mortgages (3) 49 6,648 (1 ) — 205 6,852 Home equity loans and lines of credit 67 4,539 132 — (237 ) 4,434 Retail installment contracts and auto loans - originated 27,695 514,066 (83 ) — (61 ) 513,922 Retail installment contracts and auto loans - purchased 14,344 175,968 (598 ) — (59 ) 175,311 Personal unsecured loans 17,055 21,345 — — (129 ) 21,216 Other consumer 26 923 — — (178 ) 745 Total 59,471 $ 788,949 $ (567 ) $ (10,583 ) $ (539 ) $ 777,260 (1) Pre-TDR modification outstanding recorded investment amount is the month-end balance prior to the month the modification occurred. (2) Post-TDR modification outstanding recorded investment amount is the month-end balance for the month that the modification occurred. (3) The post-TDR modification outstanding recorded investment amounts for residential mortgages exclude interest reserves. (4) Other modifications may include modifications such as interest rate reductions, fee waivers, or capitalization of fees. Three-Month Period Ended March 31, 2015 Number of Pre-TDR Recorded (1) Term Extension Principal Forbearance Other (4) Post-TDR Recorded Investment (2) (in thousands) Commercial: Commercial real estate: Corporate Banking 2 $ 1,448 $ — $ — $ (9 ) $ 1,439 Middle Market 1 14,439 — — — 14,439 Commercial and industrial 81 10,872 (34 ) (2,679 ) — 8,159 Consumer: Residential mortgages (3) 46 7,866 — (25 ) (253 ) 7,588 Home equity loans and lines of credit 40 3,671 — — — 3,671 Retail installment contracts and auto loans - originated 7,031 137,751 (14 ) — (58 ) 137,679 Retail installment contracts and auto loans - purchased 68,458 973,931 (1,781 ) — (407 ) 971,743 Personal unsecured loans 4,468 5,394 — — (38 ) 5,356 Other consumer 15 920 — — (8 ) 912 Total 80,142 $ 1,156,292 $ (1,829 ) $ (2,704 ) $ (773 ) $ 1,150,986 (1) Pre-TDR modification outstanding recorded investment amount is the month-end balance prior to the month the modification occurred. (2) Post-TDR modification outstanding recorded investment amount is the month-end balance for the month that the modification occurred. (3) The post-TDR modification outstanding recorded investment amounts for residential mortgages exclude interest reserves. (4) Other modifications may include modifications such as interest rate reductions, fee waivers, or capitalization of fees. |
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 periods ended March 31, 2016 and March 31, 2015 , respectively. Three-Month Period Ended March 31, 2016 2015 Number of Recorded Investment (1) Number of Recorded Investment (1) (in thousands) Commercial Commercial and industrial 55 $ 2,000 10 $ 276 Consumer: Residential mortgages 11 1,812 8 931 Home equity loans and lines of credit 5 341 5 262 RIC and auto loans 13,124 214,702 9,693 142,534 Unsecured loans 1,599 1,827 64 58 Other consumer 2 24 2 244 Total 14,796 $ 220,706 9,782 $ 144,305 (1) The recorded investment represents the period-end balance at March 31, 2016 and 2015 . Does not include Chapter 7 bankruptcy TDRs. |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | Consumer financing receivables for which either an internal or external credit score is a core component of the allowance model are summarized by credit score as follows: March 31, 2016 December 31, 2015 Credit Score Range (2) Retail installment contracts and auto loans (3) Percent Retail installment contracts and auto loans (3) Percent (in thousands) No FICO ®(1) $ 4,660,293 17.4 % $ 4,913,606 19.2 % <600 14,356,257 53.7 % 13,374,065 52.3 % 600-639 4,540,230 17.0 % 4,260,982 16.7 % >=640 3,170,551 11.9 % 3,004,854 11.8 % Total $ 26,727,331 100.0 % $ 25,553,507 100.0 % (1) Consists primarily of loans for which credit scores are not considered in the ALLL model. (2) Credit scores updated quarterly. (3) RIC and auto loans include $1.3 billion and $905.7 million of LHFS at March 31, 2016 and December 31, 2015 , respectively that do not have an allowance. |
Commercial | |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | Commercial loan credit quality indicators by class of financing receivables are summarized as follows: Commercial Real Estate March 31, 2016 Corporate Middle Santander Commercial and industrial Multifamily Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,675,141 $ 4,621,615 $ 1,401,131 $ 18,884,555 $ 9,094,426 $ 2,702,806 $ 39,379,674 Special Mention 80,161 80,253 71,246 587,511 169,933 12,441 1,001,545 Substandard 190,974 98,361 28,652 833,213 65,717 23,698 1,240,615 Doubtful 12,901 54,856 — 31,549 406 570 100,282 Total commercial loans $ 2,959,177 $ 4,855,085 $ 1,501,029 $ 20,336,828 $ 9,330,482 $ 2,739,515 $ 41,722,116 (1) Financing receivables include LHFS. Commercial Real Estate December 31, 2015 Corporate Middle Santander Commercial and industrial Multifamily Remaining Total (1) (in thousands) Regulatory Rating: Pass $ 2,627,159 $ 4,055,623 $ 1,363,031 $ 18,881,150 $ 9,114,466 $ 2,631,935 $ 38,673,364 Special Mention 99,090 29,620 144,597 492,128 249,165 28,686 1,043,286 Substandard 208,785 117,571 42,187 467,983 74,410 15,601 926,537 Doubtful 14,055 20,545 654 32,972 422 284 68,932 Total commercial loans $ 2,949,089 $ 4,223,359 $ 1,550,469 $ 19,874,233 $ 9,438,463 $ 2,676,506 $ 40,712,119 (1) Financing receivables include LHFS. The following table reconciles the Company's recorded investment classified by its major portfolio classifications to its commercial loan classifications utilized in its determination of the allowance for loan and lease losses ("ALLL") and other credit quality disclosures at March 31, 2016 and December 31, 2015 , respectively: Commercial Portfolio Segment (2) Major Loan Classifications (1) March 31, 2016 December 31, 2015 (in thousands) Commercial loans held for investment: Commercial real estate: Corporate Banking $ 2,959,176 $ 2,949,089 Middle Market Real Estate 4,855,085 4,223,359 Santander Real Estate Capital 1,501,030 1,550,469 Total commercial real estate 9,315,291 8,722,917 Commercial and industrial (3) 20,336,828 19,787,834 Multifamily 9,330,482 9,438,463 Other commercial 2,739,515 2,676,506 Total commercial loans held-for-investment $ 41,722,116 $ 40,625,720 (1) These represent the Company's loan categories based on the Securities and Exchange Commission (the "SEC's") Regulation S-X, Article 9. (2) These represent the Company's loan classes used to determine its ALLL. (3) Commercial and industrial loans had no LHFS at March 31, 2016 and excluded $86.4 million of LHFS at December 31, 2015 . |
Consumer | |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule of Loans by Credit Quality Indicators | Consumer Portfolio Segment (2) Major Loan Classifications (1) March 31, 2016 December 31, 2015 (in thousands) Consumer loans secured by real estate: Residential mortgages (3) $ 6,219,967 $ 6,230,995 Home equity loans and lines of credit 6,103,844 6,151,232 Total consumer loans secured by real estate 12,323,811 12,382,227 Consumer loans not secured by real estate: Retail installment contracts and auto loans - originated (4) 20,088,220 18,539,588 Retail installment contracts and auto loans - purchased (4) 5,293,741 6,108,210 Personal unsecured loans (5) 693,328 685,467 Other consumer 973,026 1,032,580 Total consumer loans held-for-investment $ 39,372,126 $ 38,748,072 (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 ALLL. (3) Residential mortgages exclude $219.2 million and $236.8 million of LHFS at March 31, 2016 and December 31, 2015 , respectively. (4) RIC and auto loans exclude $1.3 billion and $905.7 million of LHFS at March 31, 2016 and December 31, 2015 , respectively. (5) Personal unsecured loans exclude $1.0 billion and $2.0 billion of LHFS at March 31, 2016 and December 31, 2015 , respectively. 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: March 31, 2016 December 31, 2015 (in thousands) RICs - Purchased: UPB (1) $ 5,808,885 $ 6,709,748 UPB - FVO (2) 100,588 140,995 Total UPB 5,909,473 6,850,743 Purchase Marks (3) (615,732 ) (742,533 ) Total RICs - Purchased 5,293,741 6,108,210 RICs - Originated: UPB (1) 20,615,741 19,069,801 Net discount (545,071 ) (548,057 ) Total RICs - Originated 20,070,670 18,521,744 SBNA auto loans 17,550 17,844 Total RICs originated post-change in control 20,088,220 18,539,588 Total RICs and auto loans $ 25,381,961 $ 24,647,798 (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 $22.7 million and $33.1 million as of March 31, 2016 and December 31, 2015, respectively, related to purchased loan portfolios on which we elected to apply the FVO. |
LEASED VEHICLES, NET (Tables)
LEASED VEHICLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Schedule of Leased Vehicles, Net | Leased vehicles, net consisted of the following as of March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (in thousands) Leased vehicles $ 12,255,737 $ 11,297,752 Origination fees and other costs 30,127 29,800 Manufacturer subvention payments, net of accretion (1,153,959 ) (1,048,713 ) Leased vehicles, gross 11,131,905 10,278,839 Less: accumulated depreciation (2,172,677 ) (1,901,004 ) Leased vehicles, net $ 8,959,228 $ 8,377,835 |
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 March 31, 2016 (in thousands): Remainder of 2016 $ 1,280,280 2017 1,140,764 2018 445,015 2019 24,175 2020 50 Total $ 2,890,284 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 (in thousands) Assets Restricted cash $ 1,982,611 $ 1,842,877 Loans (1) 23,213,909 23,494,541 Leased vehicles, net 7,277,220 6,497,310 Various other assets 589,279 630,017 Total Assets $ 33,063,019 $ 32,464,745 Liabilities Notes payable $ 30,515,797 $ 30,628,837 Various other liabilities 85,111 85,844 Total Liabilities $ 30,600,908 $ 30,714,681 (1) Includes $1.3 billion and $1.5 billion of RICs held for sale at March 31, 2016 and December 31, 2015 , respectively. |
Summary of Cash Flows Received | A summary of the cash flows received from the off-balance sheet Trusts for the periods indicated is as follows: Three-Month Period 2016 2015 (in thousands) Assets securitized $ — $ — Net proceeds from new securitizations $ — $ — Cash received for servicing fees 15,701 5,304 Total cash received from securitization trusts $ 15,701 $ 5,304 Below is a summary of the cash flows received from the Trusts for the period indicated: Three-Month Period 2016 2015 (in thousands) Assets securitized $ 3,657,955 $ 3,981,855 Net proceeds from new securitizations (1) 2,702,004 3,056,950 Cash received for servicing fees (2) 194,365 161,962 Net distributions from Trusts (2) 629,726 456,053 Total cash received from securitization trusts $ 3,526,095 $ 3,674,965 (1) Includes additional advances on existing securitizations. (2) These amounts are not reflected in the accompanying Condensed Consolidated Statements of Cash Flows because the cash flows are between the VIEs and other entities included in the consolidation |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three-month period ended March 31, 2016 : Consumer and Business Banking (1) Auto Finance & Business Banking Commercial Real Estate (2) Commercial Banking (2) Global Corporate Banking SC Total (in thousands) Goodwill at December 31, 2015 $ 1,550,321 $ 445,923 $ — $ 1,297,055 $ 131,130 $ 1,019,960 $ 4,444,389 Disposals during the period — — — — — — — Additions during the period — — — — — — — Impairment during the period — — — — — — — Re-allocations during the period 329,983 (445,923 ) 870,411 (754,471 ) — — — Goodwill at March 31, 2016 $ 1,880,304 $ — $ 870,411 $ 542,584 $ 131,130 $ 1,019,960 $ 4,444,389 (1) Consumer and Business Banking was formerly designated as the Retail Banking segment and was renamed during the first quarter of 2016. (2) Commercial Real Estate and Commercial Banking were formerly disclosed as the combined Real Estate and Commercial Banking segment. |
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. March 31, 2016 December 31, 2015 Net Carrying Amount Accumulated Amortization Net Carrying Amount Accumulated Amortization (in thousands) Intangibles subject to amortization: Dealer networks $ 495,036 $ (84,964 ) $ 504,839 $ (75,161 ) Chrysler relationship 106,250 (32,500 ) 110,000 (28,750 ) Core deposit intangibles 152 (295,690 ) 763 (295,079 ) Other intangibles 4,679 (25,230 ) 5,453 (24,455 ) Total intangibles subject to amortization 606,117 (438,384 ) 621,055 (423,445 ) Intangibles not subject to amortization: Trade name 18,000 — 18,000 — Total Intangibles $ 624,117 $ (438,384 ) $ 639,055 $ (423,445 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense related to intangibles, excluding any impairment charges, 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) 2016 $ 57,162 $ 14,938 $ 42,224 2017 55,055 — 55,055 2018 54,702 — 54,702 2019 54,501 — 54,501 2020 54,441 — 54,441 Thereafter 345,194 — 345,194 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 (in thousands) Income tax receivables $ 606,460 $ 613,339 Derivative assets at fair value 481,733 355,169 Other repossessed assets 190,565 172,749 MSRs, at fair value 130,742 147,233 Prepaid expenses 176,733 162,879 OREO 36,981 38,959 Miscellaneous assets and receivables 681,511 403,487 Total other assets $ 2,304,725 $ 1,893,815 |
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 Sheets . Three-Month Period Ended March 31, 2016 March 31, 2015 (in thousands) Fair value at beginning of period $ 147,233 $ 145,047 Mortgage servicing assets recognized 3,591 3,526 Principal reductions (5,726 ) (6,131 ) Change in fair value due to valuation assumptions (14,356 ) (6,990 ) Fair value at end of period $ 130,742 $ 135,452 |
DEPOSITS AND OTHER CUSTOMER A34
DEPOSITS AND OTHER CUSTOMER ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deposits [Abstract] | |
Summary of Deposits and Other Customer Accounts | Deposits and other customer accounts are summarized as follows: March 31, 2016 December 31, 2015 Balance Percent of total deposits Balance Percent of total deposits (in thousands) Interest-bearing demand deposits $ 9,804,755 17.1 % $ 10,253,948 18.3 % Non-interest-bearing demand deposits 8,565,569 14.9 % 8,240,023 14.7 % Savings 4,149,767 7.2 % 3,956,165 7.0 % Customer repurchase accounts 879,411 1.5 % 896,736 1.6 % Money market 24,589,904 42.8 % 24,254,357 43.2 % Certificates of deposit 9,474,844 16.5 % 8,513,003 15.2 % Total Deposits (1) $ 57,464,250 100 % $ 56,114,232 100 % (1) Includes foreign deposits of $474.3 million and $495.9 million at March 31, 2016 and December 31, 2015 , respectively. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SHUSA | |
Debt Instrument [Line Items] | |
Schedule of Borrowings and Other Debt Obligation | The following table presents information regarding the Parent Company borrowings and other debt obligations at the dates indicated: March 31, 2016 December 31, 2015 Balance Effective Rate Balance Effective Rate (dollars in thousands) 4.625% senior notes, due April 2016 $ 475,982 4.85 % $ 475,723 4.85 % Senior notes with related party, due August 2017 (1) 1,500,000 2.80 % — — % 3.45% senior notes, due August 2018 497,999 3.62 % 497,800 3.62 % 2.65% senior notes, due April 2020 993,527 2.82 % 993,151 2.82 % 4.50% senior notes, due July 2025 1,094,599 4.56 % 1,094,483 4.56 % Junior subordinated debentures - Capital Trust VI, due June 2036 69,781 7.91 % 69,775 7.91 % Common securities - Capital Trust VI 10,000 7.91 % 10,000 7.91 % Junior subordinated debentures - Capital Trust IX, due July 2036 149,411 2.43 % 149,404 2.18 % Common securities - Capital Trust IX 4,640 2.43 % 4,640 2.18 % Total Parent Company borrowings and other debt obligations $ 4,795,939 3.57 % $ 3,294,976 3.91 % (1) These notes will bear interest at a rate equal to three-month LIBOR plus 218 basis points per annum. |
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: March 31, 2016 December 31, 2015 Balance Effective Rate Balance Effective Rate (dollars in thousands) 2.00% senior notes, due January 2018 $ 746,818 2.24 % $ 746,381 2.24 % Senior notes, due January 2018 (1) 249,486 1.72 % 249,415 1.31 % Overnight federal funds purchased 100,000 0.35 % — — % 8.750% subordinated debentures, due May 2018 498,346 8.92 % 498,175 8.92 % Subordinated term loan, due February 2019 124,979 6.53 % 130,899 6.15 % FHLB advances, maturing through July 2019 12,835,000 1.24 % 13,885,000 1.40 % REIT preferred, due May 2020 155,310 13.48 % 154,930 13.66 % Subordinated term loan, due August 2022 30,445 8.28 % 30,344 7.89 % Total Bank borrowings and other debt obligations $ 14,740,384 1.74 % $ 15,695,144 1.85 % (1) These notes will bear interest at a rate equal to three-month LIBOR plus 93 basis points per annum. |
SC | |
Debt Instrument [Line Items] | |
Schedule of Borrowings and Other Debt Obligation | The following tables present information regarding SC's credit facilities as of March 31, 2016 and December 31, 2015 : March 31, 2016 Balance Effective Rate Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 898,785 1.65 % $ 1,268,593 $ 33,876 Warehouse line, due June 2016 328,484 1.53 % 470,935 — Warehouse line, due November 2016 (2) 175,000 1.99 % — — Warehouse line, due November 2016 (2) 250,000 1.99 % — 2,502 Warehouse line, due July 2017 (3) 1,136,620 1.26 % 1,327,405 39,890 Warehouse line, due July 2017 (4) 2,151,543 1.37 % 3,301,792 59,169 Warehouse line, due December 2017 1,342,277 1.59 % 1,903,553 45,797 Warehouse line, due January 2018 73,000 3.13 % 102,309 — Warehouse line, due March 2018 (5) 886,199 1.26 % 1,287,618 28,733 Repurchase facility, due December 2016 (6) 1,147,361 2.51 % — 44,767 Line of credit with related party, due December 2016 (7) 500,000 2.74 % — — Line of credit with related party, due December 2016 (7) 1,000,000 2.70 % — — Line of credit with related party, due December 2018 (7) 975,000 2.94 % — — Total SC revolving credit facilities $ 10,864,269 1.89 % $ 9,662,205 $ 254,734 (1) As of March 31, 2016 , half of the outstanding balance on this facility matures in March 2017 and half matures in March 2018. (2) These lines are collateralized by residuals retained by SC. (3) This line is held exclusively for financing Chrysler Capital Loans. (4) This line is held exclusively for financing Chrysler Capital Leases. (5) As of December 31, 2015 this warehouse line was due at September 2017. (6) This repurchase facility is collateralized by securitization notes payable retained by SC. 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 SC. As of March 31, 2016 , $1.6 billion of the aggregate outstanding balances on these credit facilities was unsecured. NOTE 10. BORROWINGS (continued) December 31, 2015 Balance Effective Assets Pledged Restricted Cash Pledged (dollars in thousands) Warehouse line, maturing on various dates (1) $ 808,135 1.29 % $ 1,137,257 $ 24,942 Warehouse line, due June 2016 378,301 1.48 % 535,737 — Warehouse line, due November 2016 (2) 175,000 1.90 % — — Warehouse line, due November 2016 (2) 250,000 1.90 % — 2,501 Warehouse line, due July 2017 (3) 682,720 1.35 % 809,185 20,852 Warehouse line, due July 2017 (4) 2,247,443 1.41 % 3,412,321 48,589 Warehouse line, due September 2017 565,399 1.20 % 824,327 15,759 Warehouse line, due December 2017 (5) 944,877 1.56 % 1,345,051 32,038 Repurchase facility, due December 2016 (6) 850,904 2.07 % — 34,166 Line of credit with related party, due December 2016 (7) 500,000 2.65 % — — Line of credit with related party, due December 2016 (7) 1,000,000 2.61 % — — Line of credit with related party, due December 2018 (7) 800,000 2.84 % — — Total SC revolving credit facilities $ 9,202,779 1.81 % $ 8,063,878 $ 178,847 (1) As of December 31, 2015 , half of the outstanding balance on this facility matured in March 2016 and half matured in March 2017. On March 29, 2016, the facility was amended to, among other changes, extend the maturity for half of the balance to March 2017 and half to March 2018. (2) These lines are collateralized by residuals retained by SC. (3) This line is held exclusively for financing Chrysler Capital Loans. (4) This line is held exclusively for financing Chrysler Capital Leases. (5) In December 2015, the commitment on this warehouse line was amended to extend the commitment termination date to December 2017. (6) This repurchase facility is collateralized by securitization notes payable retained by SC. 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 SC. As of December 31, 2015 , $1.4 billion of the aggregate outstanding balances on these credit facilities was unsecured. The following tables present information regarding SC's secured structured financings as of March 31, 2016 and December 31, 2015 : March 31, 2016 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SC public securitizations, maturing on various dates (1) $ 12,565,678 $ 26,563,082 0.89% - 2.44% $ 16,452,180 $ 1,396,275 SC privately issued amortizing notes, maturing on various dates (1) 7,790,231 11,535,991 0.88% - 2.81% 11,029,245 498,836 Total SC secured structured financings $ 20,355,909 $ 38,099,073 0.88% - 2.81% $ 27,481,425 $ 1,895,111 (1) SC 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 RICs, and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheets . The maturity of this debt is based on the timing of repayments from the securitized assets. NOTE 10. BORROWINGS (continued) December 31, 2015 Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Range Collateral Restricted Cash (dollars in thousands) SC public securitizations, maturing on various dates (1) $ 12,679,987 $ 24,923,292 0.89% - 2.29% $ 16,256,067 $ 1,242,857 SC privately issued amortizing notes, maturing on various dates (1) 8,213,217 11,729,171 0.88% - 2.81% 11,495,352 457,840 Total SC secured structured financings $ 20,893,204 $ 36,652,463 0.88% - 2.81% $ 27,751,419 $ 1,700,697 (1) SC 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 RICs, and the related securitization debt issued by SPEs, remain on the Condensed Consolidated Balance Sheets . The maturity of this debt is based on the timing of repayments from the securitized assets. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 periods ended March 31, 2016 and 2015 : Three-Month Period Derivative Activity (1) Line Item 2016 2015 (in thousands) Fair value hedges: Cross-currency swaps Miscellaneous income $ 174 $ (36 ) Interest rate swaps Miscellaneous income (4,484 ) (2,993 ) Cash flow hedges: Pay fixed-receive variable interest rate swaps Net interest income (2,663 ) (4,451 ) Other derivative activities: Forward commitments to sell loans Mortgage banking income (3,912 ) (187 ) Interest rate lock commitments Mortgage banking income 4,452 3,937 Mortgage servicing Mortgage banking income 15,070 (1,219 ) Customer related derivatives Miscellaneous income 1,510 418 Foreign exchange Miscellaneous income 223 (874 ) SC non-hedging derivatives Miscellaneous income (5,499 ) (2,397 ) Net interest income 15,139 18,044 Other administrative expenses (1,316 ) (11,955 ) Other Miscellaneous income (1,131 ) (1,445 ) (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 March 31, 2016 and December 31, 2015 , 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) March 31, 2016 Fair value hedges $ 804 $ — $ 804 $ — $ — $ 804 Cash flow hedges 189 — 189 — — 189 Other derivative activities (1) 480,529 6,781 473,748 8,024 2,786 462,938 Total derivatives subject to a master netting arrangement or similar arrangement 481,522 6,781 474,741 8,024 2,786 463,931 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 6,992 — 6,992 — — 6,992 Total Derivative Assets $ 488,514 $ 6,781 $ 481,733 $ 8,024 $ 2,786 $ 470,923 Total Financial Assets $ 488,514 $ 6,781 $ 481,733 $ 8,024 $ 2,786 $ 470,923 December 31, 2015 Fair value hedges $ 3,742 $ — $ 3,742 $ — $ — $ 3,742 Cash flow hedges 7,295 — 7,295 — — 7,295 Other derivative activities (1) 351,761 10,161 341,600 8,008 16,424 317,168 Total derivatives subject to a master netting arrangement or similar arrangement 362,798 10,161 352,637 8,008 16,424 328,205 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 2,532 — 2,532 — — 2,532 Total Derivative Assets $ 365,330 $ 10,161 $ 355,169 $ 8,008 $ 16,424 $ 330,737 Total Financial Assets $ 365,330 $ 10,161 $ 355,169 $ 8,008 $ 16,424 $ 330,737 (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) March 31, 2016 Fair value hedges $ 7,247 $ — $ 7,247 $ 111 $ 11,732 $ (4,596 ) Cash flow hedges 94,576 — 94,576 — 104,392 (9,816 ) Other derivative activities (1) 439,268 96,925 342,343 3,054 271,819 67,470 Total derivatives subject to a master netting arrangement or similar arrangement 541,091 96,925 444,166 3,165 387,943 53,058 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 54,473 — 54,473 — — 54,473 Total Derivative Liabilities $ 595,564 $ 96,925 $ 498,639 $ 3,165 $ 387,943 $ 107,531 Total Financial Liabilities $ 595,564 $ 96,925 $ 498,639 $ 3,165 $ 387,943 $ 107,531 December 31, 2015 Fair value hedges $ 2,098 $ — $ 2,098 $ 87 $ 10,602 $ (8,591 ) Cash flow hedges 23,047 23,047 — 39,388 (16,341 ) Other derivative activities (1) 319,296 77,734 241,562 4,265 208,305 28,992 Total derivatives subject to a master netting arrangement or similar arrangement 344,441 77,734 266,707 4,352 258,295 4,060 Total derivatives not subject to a master netting arrangement or similar arrangement (2) 53,432 — 53,432 — — 53,432 Total Derivative Liabilities $ 397,873 $ 77,734 $ 320,139 $ 4,352 $ 258,295 $ 57,492 Total Financial Liabilities $ 397,873 $ 77,734 $ 320,139 $ 4,352 $ 258,295 $ 57,492 (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 March 31, 2016 and December 31, 2015 included: Notional Amount Asset Liability Weighted Average Receive Rate Weighted Average Pay Rate Weighted Average Life (Years) (dollars in thousands) March 31, 2016 Fair value hedges: Interest rate swaps $ 351,000 $ 804 $ 7,247 1.38 % 2.22 % 3.22 Cash flow hedges: Pay fixed — receive floating interest rate swaps 11,926,299 189 94,576 0.46 % 1.12 % 2.92 Total $ 12,277,299 $ 993 $ 101,823 0.49 % 1.15 % 2.93 December 31, 2015 Fair Value hedges: Cross-currency swaps $ 16,390 $ 3,695 $ 92 4.76 % 4.75 % 0.11 Interest rate swaps 318,000 47 2,006 1.07 % 2.31 % 3.50 Cash flow hedges: Pay fixed — receive floating interest rate swaps 11,030,431 7,295 23,047 0.32 % 1.13 % 3.00 Total $ 11,364,821 $ 11,037 $ 25,145 0.35 % 1.17 % 3.01 |
Not designated as hedging instrument | |
Derivative [Line Items] | |
Schedule of Other Derivative Activities | Other derivative activities at March 31, 2016 and December 31, 2015 included: Notional Asset derivatives Fair value Liability derivatives Fair value March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (in thousands) Mortgage banking derivatives: Forward commitments to sell loans $ 506,374 $ 396,518 $ — $ 542 $ 3,371 $ — Interest rate lock commitments 349,468 187,930 6,992 2,540 — — Mortgage servicing 435,000 435,000 14,916 679 2,669 3,502 Total mortgage banking risk management 1,290,842 1,019,448 21,908 3,761 6,040 3,502 Customer related derivatives: Swaps receive fixed 9,067,978 9,060,134 351,336 205,397 114 6,023 Swaps pay fixed 9,291,483 9,273,627 316 16,183 311,595 177,114 Other 2,852,757 3,035,085 50,076 53,418 49,148 52,502 Total customer related derivatives 21,212,218 21,368,846 401,728 274,998 360,857 235,639 Other derivative activities: Foreign exchange contracts 2,619,226 2,513,305 33,604 30,262 33,263 30,144 Interest rate swap agreements 1,984,000 2,399,000 — 1,176 6,580 2,481 Interest rate cap agreements 9,159,361 10,013,912 13,716 32,950 — — Options for interest rate cap agreements 9,159,361 10,013,912 — — 13,785 32,977 Total return settlement 1,404,726 1,404,726 — — 53,793 53,432 Other 1,009,210 899,394 16,565 11,146 19,423 14,553 Total $ 47,838,944 $ 49,632,543 $ 487,521 $ 354,293 $ 493,741 $ 372,728 |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 periods ended March 31, 2016 , and 2015 , respectively. Total Other Comprehensive Income/(Loss) Total Accumulated Other Comprehensive Income/(Loss) Three-Month Period Ended March 31, 2016 December 31, 2015 March 31, 2016 Pretax Activity Tax Effect Net Activity Beginning Balance Net Activity Ending Balance As Restated As Restated (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (64,195 ) $ 30,260 $ (33,935 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 2,663 (1,255 ) 1,408 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (61,532 ) 29,005 (32,527 ) $ (16,582 ) $ (32,527 ) $ (49,109 ) Change in unrealized gains/(losses) on investment securities available-for-sale 265,175 (104,213 ) 160,962 Reclassification adjustment for net(gains)/losses included in net income on non-OTTI securities (2) (26,431 ) 10,387 (16,044 ) Reclassification adjustment for net losses/(gains) included in net income on OTTI securities (3) 10 (4 ) 6 Reclassification adjustment for net (gains)/losses included in net income (26,421 ) 10,383 (16,038 ) Net unrealized gains/(losses) on investment securities available-for-sale 238,754 (93,830 ) 144,924 (96,026 ) 144,924 48,898 Pension and post-retirement actuarial gain/(loss) (4) 929 (364 ) 565 (27,033 ) 565 (26,468 ) As of March 31, 2016 $ 178,151 $ (65,189 ) $ 112,962 $ (139,641 ) $ 112,962 $ (26,679 ) (1) Net gains 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 in Note 11 to the Condensed Consolidated Financial Statements . (2) Net gains reclassified into Net gain on sale of investment securities in the Condensed Consolidated Statement of Operations for the sale of available-for-sale securities. (3) Unrealized losses previously recognized in accumulated other comprehensive income on securities for which OTTI was recognized during the period. See further discussion in Note 3 to the Condensed Consolidated Financial Statements . (4) Included in the computation of net periodic pension costs. NOTE 13. ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (As Restated) (continued) Total Other Total Accumulated Three-Month Period Ended March 31, 2015 December 31, 2014 March 31, 2015 Pretax Tax Net Activity Beginning Net Ending (in thousands) Change in accumulated (losses)/gains on cash flow hedge derivative financial instruments $ (29,009 ) $ 11,154 $ (17,855 ) Reclassification adjustment for net gains/(losses) on cash flow hedge derivative financial instruments (1) 4,451 (1,711 ) 2,740 Net unrealized (losses)/gains on cash flow hedge derivative financial instruments (24,558 ) 9,443 (15,115 ) $ (14,260 ) $ (15,115 ) $ (29,375 ) Change in unrealized gains/(losses) on investment securities available-for-sale 117,781 (45,964 ) 71,817 Reclassification adjustment for net (gains)/losses included in net income on non-OTTI securities (2) (9,557 ) 3,730 (5,827 ) Net unrealized gains/(losses) on investment securities available-for-sale 108,224 (42,234 ) 65,990 (52,515 ) 65,990 13,475 Pension and post-retirement actuarial gain/(loss) (3) 1,018 (403 ) 615 (29,635 ) 615 (29,020 ) As of March 31, 2015 $ 84,684 $ (33,194 ) $ 51,490 $ (96,410 ) $ 51,490 $ (44,920 ) (1) Net gains 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 in Note 11 . (2) Net gains reclassified into Net gains 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 AN38
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments Amount | The following table details the amount of commitments at the dates indicated: Other Commitments March 31, 2016 December 31, 2015 (in thousands) Commitments to extend credit (1) $ 28,277,773 $ 31,379,039 Letters of credit 1,846,310 1,832,884 Recourse exposure on sold loans 73,286 70,394 Commitments to sell loans 53,237 56,982 Total commitments $ 30,250,606 $ 33,339,299 (1) Commitments to extend credit excludes commitments that can be canceled by the Company without notice. |
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: March 31, 2016 December 31, 2015 (in thousands) 1 year or less $ 5,746,695 $ 6,451,239 Over 1 year to 3 years 4,981,342 5,250,512 Over 3 years to 5 years 9,920,170 12,136,625 Over 5 years (1) 7,629,566 7,540,663 Total $ 28,277,773 $ 31,379,039 (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: March 31, 2016 December 31, 2015 (in thousands) 1 year or less $ 1,215,499 $ 1,230,424 Over 1 year to 3 years 522,750 308,634 Over 3 years to 5 years 52,816 268,946 Over 5 years 55,245 24,880 Total $ 1,846,310 $ 1,832,884 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 . Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: U.S. Treasury securities $ — $ 349,742 $ — $ 349,742 Corporate debt — 1,429,590 — 1,429,590 Asset-backed securities — 406,156 1,640,423 2,046,579 State and municipal securities — 21,627 — 21,627 Mortgage backed securities — 16,674,891 — 16,674,891 Total investment securities available-for-sale (1) — 18,882,006 1,640,423 20,522,429 Retail installment contracts held-for-investment — — 285,811 285,811 Loans held-for-sale (2) — 219,151 — 219,151 Mortgage servicing rights — — 130,742 130,742 Derivatives: Fair value — 804 — 804 Cash flow — 189 — 189 Mortgage banking interest rate lock commitments — — 6,992 6,992 Customer related — 401,728 — 401,728 Foreign exchange — 33,604 — 33,604 Mortgage servicing — 14,916 — 14,916 Interest rate cap agreements — 13,716 — 13,716 Other — 16,557 8 16,565 Total financial assets $ — $ 19,582,671 $ 2,063,976 $ 21,646,647 Financial liabilities: Derivatives: Fair value $ — $ 7,247 $ — $ 7,247 Cash flow — 94,576 — 94,576 Mortgage banking forward sell commitments — 3,371 — 3,371 Customer related — 360,857 — 360,857 Total return swap — — 282 282 Foreign exchange — 33,263 — 33,263 Mortgage servicing — 2,669 — 2,669 Interest rate swaps — 6,580 — 6,580 Option for interest rate cap — 13,785 — 13,785 Total return settlement — — 53,793 53,793 Other — 18,993 148 19,141 Total financial liabilities $ — $ 541,341 $ 54,223 $ 595,564 (1) Investment securities available-for-sale disclosed on the Condensed Consolidated Balance Sheet at March 31, 2016 includes $10.7 million of equity securities that are not presented within this table in accordance with the adoption of ASU 2015-07. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. (2) LHFS disclosed on the Condensed Consolidated Balance Sheet also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. NOTE 16. FAIR VALUE (As Restated) (continued) Quoted Prices in Active Significant Other Significant Balance at (in thousands) Financial assets: U.S. Treasury securities $ — $ 3,188,388 $ — $ 3,188,388 Corporate debt — 1,475,574 — 1,475,574 Asset-backed securities — 409,270 1,360,240 1,769,510 State and municipal securities — 767,880 — 767,880 Mortgage backed securities — 13,639,656 — 13,639,656 Total investment securities available-for-sale (1) — 19,480,768 1,360,240 20,841,008 Retail installment contracts held-for-investment — — 328,655 328,655 Loans held-for-sale (2) — 236,760 — 236,760 Mortgage servicing rights — — 147,233 147,233 Derivatives: Fair value — 3,742 — 3,742 Cash flow — 7,295 — 7,295 Mortgage banking interest rate lock commitments — — 2,540 2,540 Mortgage banking forward sell commitments — 542 — 542 Customer related — 274,998 — 274,998 Foreign exchange — 30,262 — 30,262 Mortgage servicing — 679 — 679 Interest rate swap agreements — 1,176 — 1,176 Interest rate cap agreements — 32,950 — 32,950 Other — 11,136 10 11,146 Total financial assets $ — $ 20,080,308 $ 1,838,678 $ 21,918,986 Financial liabilities: Derivatives: Fair value $ — $ 2,098 $ — $ 2,098 Cash flow — 23,047 — 23,047 Customer related — 235,639 — 235,639 Total return swap — — 282 282 Foreign exchange — 30,144 — 30,144 Mortgage servicing — 3,502 — 3,502 Interest rate swaps — 2,481 — 2,481 Option for interest rate cap — 32,977 — 32,977 Total return settlement — — 53,432 53,432 Other — 14,149 122 14,271 Total financial liabilities $ — $ 344,037 $ 53,836 $ 397,873 (1) Investment securities available-for-sale disclosed on the Condensed Consolidated Balance Sheet at December 31, 2015 includes $10.5 million of equity securities that are not presented within this table in accordance with the adoption of ASU 2015-07. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. (2) LHFS disclosed on the Condensed Consolidated Balance Sheet also includes LHFS that are held at the lower of cost or fair value and are not presented within this table. |
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 Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value (in thousands) March 31, 2016 Impaired loans held-for-investment $ — $ 279,069 $ 41,118 $ 320,187 Foreclosed assets — 15,242 — 15,242 Vehicle inventory — 251,926 — 251,926 Loans held for sale — — 978,819 978,819 December 31, 2015 Impaired loans held-for-investment $ — $ 122,792 $ 326 $ 123,118 Foreclosed assets — 27,574 — 27,574 Vehicle inventory — 204,120 — 204,120 Loans held for sale — — 2,040,813 2,040,813 Goodwill — — 1,019,960 1,019,960 Indefinite lived intangibles — — 18,000 18,000 |
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 2016 2015 (in thousands) Impaired loans held-for-investment Provision for credit losses $ (88,311 ) $ (570 ) Foreclosed assets Miscellaneous income (1) (1,812 ) (611 ) Loans held for sale Miscellaneous income (1) (64,213 ) — $ (154,336 ) $ (1,181 ) (1) These amounts reduce Miscellaneous income. |
Rollforward for Recurring Assets and Liabilities | The tables below present the changes in all Level 3 balances for the three-month periods ended March 31, 2016 and 2015 , respectively. Three-Month Period Ended March 31, 2016 Investments Retail Installment Contracts Held for Investment MSRs Derivatives Total (in thousands) Balance, December 31, 2015 $ 1,360,240 $ 328,655 $ 147,233 $ (51,286 ) $ 1,784,842 Gains in other comprehensive income 1,585 — — — 1,585 Gains/(losses) in earnings — 26,749 (14,356 ) 3,010 15,403 Additions/Issuances 278,686 — 3,591 — 282,277 Settlements (1) (88 ) (69,593 ) (5,726 ) 1,053 (74,354 ) Balance, March 31, 2016 $ 1,640,423 $ 285,811 $ 130,742 $ (47,223 ) $ 2,009,753 Changes in unrealized gains/(losses) included in earnings related to balances still held at March 31, 2016 $ — $ 26,749 $ (14,356 ) $ (1,442 ) $ 10,951 (1) Settlements include charge-offs, prepayments, pay downs and maturities. NOTE 16. FAIR VALUE (As Restated) (continued) Three-Month Period Ended March 31, 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 Gains in other comprehensive income 4,779 — — — 4,779 Gains/(losses) in earnings — 86,492 (6,990 ) (8,129 ) 71,373 Additions/Issuances 253,973 — 3,526 — 257,499 Settlements (1) (11,878 ) (256,306 ) (6,131 ) 1,356 (272,959 ) Balance, March 31, 2015 $ 1,514,517 $ 676,097 $ 135,452 $ (52,951 ) $ 2,273,115 Changes in unrealized gains/(losses) included in earnings related to balances still held at March 31, 2015 $ — $ 86,492 $ (6,990 ) $ (12,065 ) $ 67,437 (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 March 31, 2016 Valuation Technique Unobservable Inputs Range (in thousands) Financial Assets: Asset-backed securities Financing bonds $ 1,589,828 Discounted Cash Flow Discount Rate (1) 0.92% - 1.82% (1.21%) Sale-leaseback securities $ 50,595 Consensus Pricing (2) Offered quotes (3) 128.84 % Retail installment contracts held-for-investment $ 285,811 Discounted Cash Flow Prepayment rate (CPR) (4) 9.50 % Discount Rate (5) 9.50% - 14.50% (10.50%) Recovery Rate (6) 25.00% - 43.00% (29.50%) Mortgage servicing rights $ 130,742 Discounted Cash Flow Prepayment rate (CPR) (7) 0.20% - 29.51% (11.33%) Discount Rate (8) 9.90 % Mortgage banking interest rate lock commitments $ 6,992 Discounted Cash Flow Pull through percentage (9) 76.97 % MSR value (10) 0.73% - 1.07% (1.01%) Financial Liabilities: Total return settlement $ 53,793 Discounted Cash Flow Discount Rate (4) 8.32 % (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-leaseback securities, the Company owns one security. (4) Based on the analysis of available data from a comparable market securitization of similar assets. (5) Based on the cost of funding of debt issuance and recent historical equity yields. (6) Based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. (7) Average CPR projected from collateral stratified by loan type, note rate and maturity. (8) Based on the nature of the input, a range or weighted average does not exist. (9) Historical weighted average based on principal balance calculated as the percentage of loans originated for sale divided by total commitments less outstanding commitments. (10) 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: March 31, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and amounts due from depository institutions $ 6,603,448 $ 6,603,448 $ 6,603,448 $ — $ — Available-for-sale investment securities (1) 20,522,429 20,522,429 — 18,882,006 1,640,423 Loans held-for-investment, net 77,613,639 78,677,855 — 279,069 78,398,786 Loans held-for-sale 2,543,341 2,554,038 — 219,151 2,334,887 Restricted cash 2,923,603 2,923,603 2,923,603 — — Mortgage servicing rights 130,742 130,742 — — 130,742 Derivatives 488,514 488,514 — 481,514 7,000 Financial liabilities: Deposits 57,464,250 57,484,122 47,989,406 9,494,716 — Borrowings and other debt obligations 50,756,501 51,106,200 — 40,241,931 10,864,269 Derivatives 595,564 595,564 — 541,341 54,223 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and amounts due from depository institutions $ 4,992,042 $ 4,992,042 $ 4,992,042 $ — $ — Available-for-sale investment securities (1) 20,841,008 20,841,008 — 19,480,768 1,360,240 Loans held-for-investment, net 76,213,081 76,290,862 — 122,792 76,168,070 Loans held-for-sale 3,183,282 3,195,513 — 236,760 2,958,753 Restricted cash 2,429,729 2,429,729 2,429,729 — — Mortgage servicing rights 147,233 147,233 — — 147,233 Derivatives 365,330 365,330 — 362,780 2,550 Financial liabilities: Deposits 56,114,232 56,121,954 47,601,229 8,520,725 — Borrowings and other debt obligations 49,086,103 49,320,778 — 40,117,999 9,202,779 Derivatives 397,873 397,873 — 344,037 53,836 (1) Investment securities available-for-sale disclosed on the Condensed Consolidated Balance Sheet at March 31, 2016 and December 31, 2015 includes $10.7 million and $10.5 million , respectively, of equity securities that are not presented within these tables in accordance with the adoption of ASU 2015-07. Refer to Note 1 to the Condensed Consolidated Financial Statements for additional details related to this ASU implementation. |
Summary of Difference Between Fair Value and Principal Balance of LHFS | The following table summarizes the differences between the fair value and the principal balance of LHFS and RICs measured at fair value as of March 31, 2016 . Fair Value Aggregate Unpaid Principal Balance Difference (in thousands) March 31, 2016 Loans held-for-sale (1) $ 219,151 $ 213,250 $ 5,901 Nonaccrual loans — — — Retail installment contracts held-for-investment $ 285,811 $ 367,312 $ (81,501 ) Nonaccrual loans 23,832 38,415 (14,583 ) (1) LHFS disclosed on the Condensed Consolidated Balance Sheet also includes LHFS that are held at the lower of cost or fair value that are not presented within this table. |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present certain information regarding the Company’s segments. For the Three-Month Period Ended SHUSA Reportable Segments March 31, 2016 Consumer and Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SC (3) SC Purchase Price Adjustments (4) Eliminations (4) Total (in thousands) Net interest income $ 218,389 $ 77,183 $ 64,757 $ 60,317 $ (21,406 ) $ 1,163,578 $ 51,773 $ 1,461 $ 1,616,052 Total non-interest income 174,165 12,602 2,062 17,267 35,869 353,191 13,782 (11,237 ) 597,701 Provision/(release) for credit losses (6,504 ) 61,661 12,680 47,795 4,313 660,170 102,163 — 882,278 Total expenses 403,065 44,595 19,599 34,952 149,363 527,657 14,733 (12,937 ) 1,181,027 Income/(loss) before income taxes (4,007 ) (16,471 ) 34,540 (5,163 ) (139,213 ) 328,942 (51,341 ) 3,161 150,448 Intersegment (expense)/revenue (1) 548 990 500 (2,109 ) 71 — — — — Total assets 21,293,161 11,734,670 15,552,072 12,555,445 33,091,504 36,797,775 — — 131,024,627 (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 Parent Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SC by analyzing the pre-Change in Control results of SC as disclosed in this column. (4) Purchase Price Adjustments represents the impact that SC purchase marks had on the results of SC 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 Reportable Segments March 31, 2015 Consumer and Business Banking Commercial Banking Commercial Real Estate Global Corporate Banking Other (2) SC (3) SC Purchase Price Adjustments (4) Eliminations (4) Total (in thousands) Net interest income $ 204,714 $ 64,238 $ 65,320 $ 49,090 $ 15,714 $ 1,109,958 $ 113,936 $ 87 $ 1,623,057 Total non-interest income 156,268 11,658 7,835 15,971 23,713 327,479 59,303 (15,724 ) 586,503 Provision/(release) for credit losses 697 1,614 10,838 2,751 31,100 631,847 374,792 — 1,053,639 Total expenses 420,991 44,593 17,673 24,974 43,551 440,322 13,743 (13,676 ) 992,171 Income/(loss) before income taxes (60,706 ) 29,689 44,644 37,336 (35,224 ) 365,268 (215,296 ) (1,961 ) 163,750 Intersegment revenue/(expense) (1) 363 976 359 (2,325 ) 627 — — — — Total assets 22,394,925 15,497,925 14,037,580 11,763,672 25,602,484 34,119,945 — — 123,416,531 (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 Parent Company's borrowings and other debt obligations, amortization of intangible assets and certain unallocated corporate income and indirect expenses. (3) Management of SHUSA manages SC by analyzing the pre-Change in Control results of SC as disclosed in this column. (4) Purchase Price Adjustments represent the impact that SC purchase marks had on the results of SC included within the consolidated operations of SHUSA, while eliminations eliminate intercompany transactions. |
RESTATEMENTS (Tables)
RESTATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016: March 31, 2016 (in thousands) Overstatement of loans held for investment $ 143,909 (Under)/Overstatement of allowance (TDR impairment) $ 31,100 This error also had the following impacts on the condensed consolidated statements of operations and comprehensive (loss)/income: March 31, 2016 (in thousands) Overstatement of Interest income - Loans $ (40,132 ) Overstatement of Provision for credit losses 48,362 Understatement of Miscellaneous income 737 $ 8,967 The following table summarizes the impact of the corrections on the Company's Condensed Consolidated Balance Sheet as of March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Cash and cash equivalents $ 6,647,408 $ (43,960 ) $ 6,603,448 Loans held-for-investment 81,213,607 (119,365 ) 81,094,242 Allowance for loan and lease losses (3,533,940 ) 53,337 (3,480,603 ) Net loans held-for-investment 77,679,667 (66,028 ) 77,613,639 Leased vehicles, net 8,980,530 (21,302 ) 8,959,228 Restricted cash 3,002,322 (78,719 ) 2,923,603 Other assets 2,168,999 135,726 2,304,725 Total assets 131,098,910 (74,283 ) 131,024,627 Accrued expenses and payables 1,686,311 (170,112 ) 1,516,199 Advance payments by borrowers for taxes and insurance 232,925 (1,818 ) 231,107 Deferred tax liabilities, net 443,082 29,490 472,572 Other liabilities 773,872 44,017 817,889 Total liabilities 111,356,941 (98,423 ) 111,258,518 Stockholder's equity Common stock and paid-in-capital 14,704,909 11,942 14,716,851 Accumulated other comprehensive (loss)/ income (42,359 ) 15,680 (26,679 ) Retained earnings 2,376,115 (14,553 ) 2,361,562 Total SHUSA stockholder's equity 17,234,110 13,069 17,247,179 Noncontrolling interest 2,507,859 11,071 2,518,930 Total stockholder's equity 19,741,969 24,140 19,766,109 Total liabilities and stockholder's equity $ 131,098,910 $ (74,283 ) $ 131,024,627 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 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 March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Interest on loans $ 1,899,185 $ (40,132 ) $ 1,859,053 Total interest income 2,009,636 (40,132 ) 1,969,504 Net interest income 1,656,184 (40,132 ) 1,616,052 Provision for credit losses 920,439 (38,161 ) 882,278 Net interest income after provision for credit losses 735,745 (1,971 ) 733,774 Consumer fees 123,682 785 124,467 Lease income 434,652 (13,132 ) 421,520 Miscellaneous income/expense (50,294 ) 8,413 (41,881 ) Total fees and other income 575,214 (3,934 ) 571,280 Total non-interest income 601,635 (3,934 ) 597,701 Compensation and benefits 366,119 2,000 368,119 Loan expense 99,995 (1,350 ) 98,645 Lease expense 293,779 (897 ) 292,882 Other administrative expenses 80,321 1,316 81,637 Total general and administrative expenses 1,108,205 1,069 1,109,274 Amortization of intangibles 35,238 (20,300 ) 14,938 Deposit insurance premiums and other expenses 22,235 1,623 23,858 Total other expenses 90,430 (18,677 ) 71,753 Income/(loss) before income taxes 138,745 11,703 150,448 Income tax provision/(benefit) 65,010 386 65,396 Net income/(loss) including noncontrolling interest 73,735 11,317 85,052 Less: net income/(loss) attributable to noncontrolling interest 61,895 9,380 71,275 Net income/(loss) attributable to SHUSA $ 11,840 $ 1,937 $ 13,777 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. NOTE 18. RESTATEMENTS (continued) The following table reflects a summary of the impact of the corrections on the Company's Consolidated Statement of Comprehensive Income for the three-month period ended March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 73,735 $ 11,317 $ 85,052 Net unrealized (losses) on cash flow hedge derivative financial instruments, net of tax (48,207 ) 15,680 (32,527 ) Total other comprehensive income, net of tax 97,282 15,680 112,962 Comprehensive income 171,017 26,997 198,014 Net income attributable to noncontrolling interest 61,895 9,380 71,275 Comprehensive income attributable to SHUSA $ 109,122 $ 17,617 $ 126,739 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. 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 three-month period ended March 31, 2016 : Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity Common Stock and Paid-in Capital Accumulated Other Comprehensive (Loss)/Income Retained Earnings Non-controlling Interest Total Stockholder's Equity As Reported (1) Corrections As Restated (in thousands) Balance, Beginning of period $ 14,717,625 $ (139,641 ) $ 2,367,925 $ 2,427,599 $ 19,568,953 $ 11,941 $ — $ (16,490 ) $ 17,371 $ 12,822 $ 14,729,566 $ (139,641 ) $ 2,351,435 $ 2,444,970 $ 19,581,775 Comprehensive loss attributable to SHUSA — 97,282 11,840 15,680 109,122 — 15,680 1,937 (31,360 ) 17,617 — 112,962 13,777 (15,680 ) 126,739 Comprehensive income attributable to NCI — — — 61,895 61,895 — — — 9,380 9,380 — — — 71,275 71,275 Impact of SC Stock Option (13,112 ) — — 2,685 (10,427 ) 1 — — 15,680 15,681 (13,111 ) — — 18,365 5,254 Balance, End of period $ 14,704,909 $ (42,359 ) $ 2,376,115 $ 2,507,859 $ 19,741,969 $ 11,942 $ 15,680 $ (14,553 ) $ 11,071 $ 24,140 $ 14,716,851 $ (26,679 ) $ 2,361,562 $ 2,518,930 $ 19,766,109 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 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 three-month period ended March 31, 2016 : As Reported (1) Corrections As Restated (in thousands) Net income including noncontrolling interest $ 73,735 $ 11,317 $ 85,052 Provision for credit losses 920,439 (38,161 ) 882,278 Deferred tax expense 53,474 384 53,858 Depreciation, amortization and accretion 186,238 26,592 212,830 Net loss/(gain) on sale of loans 74,000 (4,095 ) 69,905 Stock-based compensation 4,723 13,884 18,607 Net change in other assets and bank-owned life insurance (122,411 ) (58,594 ) (181,005 ) Net change in other liabilities 102,639 (37,618 ) 65,021 Net cash provided by operating activities 835,985 (86,291 ) 749,694 Net change in restricted cash (577,163 ) 78,719 (498,444 ) Proceeds from the sale and termination of leased vehicles 483,353 (2,749 ) 480,604 Net cash used in investing activities (2,259,851 ) 75,970 (2,183,881 ) Net proceeds from long-term borrowings 13,305,671 67,599 13,373,270 Repayments of long-term borrowings (10,683,801 ) (67,599 ) (10,751,400 ) Net change in advance payments by borrowers for taxes and insurance 59,995 (25 ) 59,970 Proceeds from the issuance of common stock 765 (508 ) 257 Net cash provided by financing activities 3,046,126 (533 ) 3,045,593 Net change in cash and cash equivalents 1,622,260 (10,854 ) 1,611,406 Cash and cash equivalents, beginning of period 5,025,148 (33,106 ) 4,992,042 Cash and cash equivalents, end of period $ 6,647,408 $ (43,960 ) $ 6,603,448 (1) Originally reported amounts included in the Quarterly Report on Form 10-Q for the three-month period ended March 31, 2016 filed on May 13, 2016. |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 20,440,266 | $ 21,006,066 |
Gross Unrealized Gains | 178,967 | 63,973 |
Gross Unrealized Loss | (86,117) | (218,544) |
Fair Value | 20,533,116 | 20,851,495 |
Accrued investment income receivable | 54,900 | 65,100 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 349,274 | 3,192,411 |
Gross Unrealized Gains | 468 | 1,658 |
Gross Unrealized Loss | 0 | (5,681) |
Fair Value | 349,742 | 3,188,388 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,417,264 | 1,476,801 |
Gross Unrealized Gains | 15,972 | 10,021 |
Gross Unrealized Loss | (3,646) | (11,248) |
Fair Value | 1,429,590 | 1,475,574 |
Asset-backed securities (ABS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,038,606 | 1,763,178 |
Gross Unrealized Gains | 9,621 | 7,826 |
Gross Unrealized Loss | (1,648) | (1,494) |
Fair Value | 2,046,579 | 1,769,510 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,964 | 10,894 |
Gross Unrealized Gains | 5 | 1 |
Gross Unrealized Loss | (282) | (408) |
Fair Value | 10,687 | 10,487 |
State and municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,278 | 748,696 |
Gross Unrealized Gains | 349 | 19,616 |
Gross Unrealized Loss | 0 | (432) |
Fair Value | 21,627 | 767,880 |
U.S. government agencies - Residential | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,871,610 | 4,033,041 |
Gross Unrealized Gains | 51,967 | 10,225 |
Gross Unrealized Loss | (18,121) | (36,513) |
Fair Value | 5,905,456 | 4,006,753 |
U.S. government agencies - Commercial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,094,751 | 1,006,161 |
Gross Unrealized Gains | 16,994 | 3,347 |
Gross Unrealized Loss | (1,992) | (7,153) |
Fair Value | 1,109,753 | 1,002,355 |
FHLMC and FNMA - Residential debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,498,678 | 8,636,745 |
Gross Unrealized Gains | 80,842 | 10,556 |
Gross Unrealized Loss | (60,101) | (153,128) |
Fair Value | 9,519,419 | 8,494,173 |
FHLMC and FNMA - Commercial debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 137,804 | 138,094 |
Gross Unrealized Gains | 2,749 | 723 |
Gross Unrealized Loss | (327) | (2,487) |
Fair Value | 140,226 | 136,330 |
Non-agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 37 | 45 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 37 | $ 45 |
INVESTMENT SECURITIES (Securiti
INVESTMENT SECURITIES (Securities Pledged as Collateral) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 7,500 | $ 3,500 |
Public fund deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | 4,300 | 2,900 |
Repurchase agreements, hedging activities and recourse on loan sales | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | 2,700 | 117.6 |
Overnight customer deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 459 | $ 395.8 |
INVESTMENT SECURITIES (Contract
INVESTMENT SECURITIES (Contractual Maturity of Debt Securities) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Amortized Cost | |
Due within one year | $ 545,999 |
Due after 1 year but within 5 years | 3,073,546 |
Due after 5 years but within 10 years | 318,364 |
Due After 10 Years/No Maturity | 16,491,393 |
Total | 20,429,302 |
Fair Value | |
Due within one year | 547,001 |
Due after 1 year but within 5 years | 3,094,514 |
Due after 5 years but within 10 years | 320,688 |
Due After 10 Years/No Maturity | 16,560,226 |
Total | $ 20,522,429 |
INVESTMENT SECURITIES (Gross Un
INVESTMENT SECURITIES (Gross Unrealized Loss and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Less than 12 months | $ 2,129,810 | $ 10,139,369 |
12 months or longer | 3,174,752 | 3,420,300 |
Total | 5,304,562 | 13,559,669 |
Unrealized Losses | ||
Less than 12 months | (16,810) | (67,205) |
12 months or longer | (69,307) | (151,339) |
Total | (86,117) | (218,544) |
U.S. Treasury securities | ||
Fair Value | ||
Less than 12 months | 2,243,343 | |
12 months or longer | 0 | |
Total | 2,243,343 | |
Unrealized Losses | ||
Less than 12 months | (5,681) | |
12 months or longer | 0 | |
Total | 0 | (5,681) |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 261,839 | 775,366 |
12 months or longer | 174,222 | 152,486 |
Total | 436,061 | 927,852 |
Unrealized Losses | ||
Less than 12 months | (1,900) | (5,269) |
12 months or longer | (1,746) | (5,979) |
Total | (3,646) | (11,248) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 260,657 | 300,869 |
12 months or longer | 67,243 | 35,126 |
Total | 327,900 | 335,995 |
Unrealized Losses | ||
Less than 12 months | (1,037) | (1,083) |
12 months or longer | (611) | (411) |
Total | (1,648) | (1,494) |
Equity securities | ||
Fair Value | ||
Less than 12 months | 293 | 596 |
12 months or longer | 9,900 | 9,748 |
Total | 10,193 | 10,344 |
Unrealized Losses | ||
Less than 12 months | (2) | (7) |
12 months or longer | (280) | (401) |
Total | (282) | (408) |
State and municipal securities | ||
Fair Value | ||
Less than 12 months | 15,665 | |
12 months or longer | 26,024 | |
Total | 41,689 | |
Unrealized Losses | ||
Less than 12 months | (119) | |
12 months or longer | (313) | |
Total | 0 | (432) |
U.S. government agencies - Residential | ||
Fair Value | ||
Less than 12 months | 762,829 | 1,670,150 |
12 months or longer | 733,921 | 954,916 |
Total | 1,496,750 | 2,625,066 |
Unrealized Losses | ||
Less than 12 months | (9,966) | (11,164) |
12 months or longer | (8,155) | (25,349) |
Total | (18,121) | (36,513) |
U.S. government agencies - Commercial | ||
Fair Value | ||
Less than 12 months | 6,109 | 367,706 |
12 months or longer | 113,681 | 114,038 |
Total | 119,790 | 481,744 |
Unrealized Losses | ||
Less than 12 months | (28) | (3,382) |
12 months or longer | (1,964) | (3,771) |
Total | (1,992) | (7,153) |
FHLMC and FNMA - Residential debt securities | ||
Fair Value | ||
Less than 12 months | 814,228 | 4,650,327 |
12 months or longer | 2,075,785 | 2,127,962 |
Total | 2,890,013 | 6,778,289 |
Unrealized Losses | ||
Less than 12 months | (3,550) | (38,013) |
12 months or longer | (56,551) | (115,115) |
Total | (60,101) | (153,128) |
FHLMC and FNMA - Commercial debt securities | ||
Fair Value | ||
Less than 12 months | 23,855 | 115,347 |
12 months or longer | 0 | 0 |
Total | 23,855 | 115,347 |
Unrealized Losses | ||
Less than 12 months | (327) | (2,487) |
12 months or longer | 0 | 0 |
Total | $ (327) | $ (2,487) |
INVESTMENT SECURITIES (Other-Th
INVESTMENT SECURITIES (Other-Than-Temporary Impairment) (Details) | Mar. 31, 2016security |
Investments, Debt and Equity Securities [Abstract] | |
Number of securities in unrealized loss position | 230 |
INVESTMENT SECURITIES (Gains (L
INVESTMENT SECURITIES (Gains (Losses) and Proceeds on Sale of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||
Proceeds from the sales of available-for-sale securities | $ 3,435,844 | $ 1,010,515 |
Gross realized gains | 26,707 | 10,782 |
Gross realized (losses) | (276) | (1,225) |
OTTI | (10) | 0 |
Net realized gains | 26,421 | 9,557 |
Gain (loss) on sale of investment securities | 26,421 | 9,557 |
U.S. Treasury securities | ||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||
Investment securities sold during the period | 2,800,000 | |
Realized investment gain (loss) | 6,700 | |
State and municipal securities | ||
Available-for-sale Securities, Gross Realized Gain (Loss), Disclosures [Abstract] | ||
Investment securities sold during the period | 726,800 | 305,400 |
Realized investment gain (loss) | $ 19,500 | $ 9,200 |
INVESTMENT SECURITIES (Other In
INVESTMENT SECURITIES (Other Investments) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Stock of FHLB of Pittsburgh and the Federal Reserve Bank | $ 952.6 | $ 997.9 |
FHLB Stock, par value (in usd per share) | $ 100 | |
Purchases of FHLB stock | $ 74.9 | |
FHLB stock redeemed | 120.2 | |
Low income housing tax credit investment | $ 25.9 | $ 26.4 |
LOANS AND ALLOWANCE FOR CREDI49
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)business_line | Dec. 31, 2015USD ($) | ||
Loans Receivable [Line Items] | |||
Loans pledged as collateral | $ 54,500,000 | $ 59,300,000 | |
Loans held-for-sale | 2,543,341 | [1] | 3,183,282 |
Accrued interest receivable | 556,384 | [2] | 586,263 |
Troubled debt restructurings | $ 4,687,840 | 4,399,546 | |
TDR, threshold period of sustained repayment performance | 6 months | ||
TDRs, number of days past due after modification considered to have subsequently defaulted | 90 days | ||
TDR, threshold period loan needed to remain current prior to modification to remain on accrual status | 6 months | ||
Performing | |||
Loans Receivable [Line Items] | |||
Interest income | $ 176,500 | 439,600 | |
Troubled debt restructurings | 4,178,248 | 3,797,231 | |
Loans receivable | |||
Loans Receivable [Line Items] | |||
Accrued interest receivable | 501,500 | 521,100 | |
Personal unsecured loans | Consumer | |||
Loans Receivable [Line Items] | |||
Loans held-for-sale | $ 978,800 | $ 2,000,000 | |
Commercial real estate loans | Commercial | |||
Loans Receivable [Line Items] | |||
Number of business lines | business_line | 3 | ||
Retail Installment Contracts | |||
Loans Receivable [Line Items] | |||
TDRs, number of days past due after modification considered to have subsequently defaulted | 120 days | ||
Retail Installment Contracts | Consumer | |||
Loans Receivable [Line Items] | |||
Loans held-for-sale | $ 1,300,000 | ||
[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 6 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI50
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Loan and Lease Portfolio Composition) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans Receivable [Line Items] | |||
Total loans held for investment | $ 81,094,242 | [1],[2] | $ 79,373,792 |
Loans held for investment with fixed rate of interest | 47,394,655 | 46,721,562 | |
Loans held for investment with variable rate of interest | $ 33,699,587 | $ 32,652,230 | |
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 | 58.40% | 58.90% | |
Loans held for investment with variable rate of interest, percent of total loans | 41.60% | 41.10% | |
Increase (decrease) in loan balances | $ 252,100 | $ 26,300 | |
Commercial | |||
Loans Receivable [Line Items] | |||
Commercial loans held for investment | $ 41,722,116 | $ 40,625,720 | |
Loans held for investment, percent of total loans | 51.50% | 51.20% | |
Commercial | Commercial real estate loans | |||
Loans Receivable [Line Items] | |||
Commercial loans held for investment | $ 9,315,291 | $ 8,722,917 | |
Loans held for investment, percent of total loans | 11.50% | 11.00% | |
Commercial | Commercial and industrial loans | |||
Loans Receivable [Line Items] | |||
Commercial loans held for investment | $ 20,336,828 | $ 19,787,834 | |
Loans held for investment, percent of total loans | 25.10% | 24.90% | |
Commercial | Multifamily loans | |||
Loans Receivable [Line Items] | |||
Commercial loans held for investment | $ 9,330,482 | $ 9,438,463 | |
Loans held for investment, percent of total loans | 11.50% | 11.90% | |
Commercial | Other commercial | |||
Loans Receivable [Line Items] | |||
Commercial loans held for investment | $ 2,739,515 | $ 2,676,506 | |
Loans held for investment, percent of total loans | 3.40% | 3.40% | |
Consumer | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 39,372,126 | $ 38,748,072 | |
Loans held for investment, percent of total loans | 48.50% | 48.80% | |
Consumer loans secured by real estate | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 12,323,811 | $ 12,382,227 | |
Loans held for investment, percent of total loans | 15.20% | 15.50% | |
Consumer loans secured by real estate | Residential mortgages | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 6,219,967 | $ 6,230,995 | |
Loans held for investment, percent of total loans | 7.70% | 7.80% | |
Consumer loans secured by real estate | Home equity loans and lines of credit | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 6,103,844 | $ 6,151,232 | |
Loans held for investment, percent of total loans | 7.50% | 7.70% | |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, originated | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 20,088,220 | $ 18,539,588 | |
Loans held for investment, percent of total loans | 24.80% | 23.40% | |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, purchased | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 5,293,741 | $ 6,108,210 | |
Loans held for investment, percent of total loans | 6.40% | 7.70% | |
Consumer loans not secured by real estate | Personal unsecured loans | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 693,328 | $ 685,467 | |
Loans held for investment, percent of total loans | 0.90% | 0.90% | |
Consumer loans not secured by real estate | Other consumer | |||
Loans Receivable [Line Items] | |||
Consumer loans held for investment | $ 973,026 | $ 1,032,580 | |
Loans held for investment, percent of total loans | 1.20% | 1.30% | |
[1] | Loans held-for-investment includes $285.8 million and $328.7 million of loans recorded at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 6 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI51
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Portfolio Segments and Classes) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Commercial | ||
Loans Receivable [Line Items] | ||
Commercial loans | $ 41,722,116,000 | $ 40,625,720,000 |
Commercial | Corporate banking | ||
Loans Receivable [Line Items] | ||
Commercial loans | 2,959,176,000 | 2,949,089,000 |
Commercial | Middle market commercial real estate | ||
Loans Receivable [Line Items] | ||
Commercial loans | 4,855,085,000 | 4,223,359,000 |
Commercial | Santander real estate capital | ||
Loans Receivable [Line Items] | ||
Commercial loans | 1,501,030,000 | 1,550,469,000 |
Commercial | Commercial real estate loans | ||
Loans Receivable [Line Items] | ||
Commercial loans | 9,315,291,000 | 8,722,917,000 |
Commercial | Commercial and industrial loans | ||
Loans Receivable [Line Items] | ||
Commercial loans | 20,336,828,000 | 19,787,834,000 |
Loans held-for-sale | 0 | 86,400,000 |
Commercial | Multifamily loans | ||
Loans Receivable [Line Items] | ||
Commercial loans | 9,330,482,000 | 9,438,463,000 |
Commercial | Other commercial | ||
Loans Receivable [Line Items] | ||
Commercial loans | 2,739,515,000 | 2,676,506,000 |
Consumer | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 39,372,126,000 | 38,748,072,000 |
Consumer | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 219,200,000 | 236,800,000 |
Consumer | Retail installment contracts and auto loans | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 905,700,000 | |
Consumer | Personal unsecured loans | ||
Loans Receivable [Line Items] | ||
Loans held-for-sale | 978,800,000 | 2,000,000,000 |
Consumer loans secured by real estate | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 12,323,811,000 | 12,382,227,000 |
Consumer loans secured by real estate | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,219,967,000 | 6,230,995,000 |
Consumer loans secured by real estate | Home equity loans and lines of credit | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 6,103,844,000 | 6,151,232,000 |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, originated | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 20,088,220,000 | 18,539,588,000 |
Consumer loans not secured by real estate | Retail installment contracts and auto loans, purchased | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 5,293,741,000 | 6,108,210,000 |
Consumer loans not secured by real estate | Personal unsecured loans | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | 693,328,000 | 685,467,000 |
Consumer loans not secured by real estate | Other consumer | ||
Loans Receivable [Line Items] | ||
Consumer loans held for investment | $ 973,026,000 | $ 1,032,580,000 |
LOANS AND ALLOWANCE FOR CREDI52
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Retail Installment Contracts and Auto Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans Receivable [Line Items] | |||
Total loans held for investment | $ 81,094,242 | [1],[2] | $ 79,373,792 |
Retail installment contracts and auto loans | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | 25,381,961 | 24,647,798 | |
Retail installment contracts, purchased | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
UPB | 5,808,885 | 6,709,748 | |
UPB - FVO | 100,588 | 140,995 | |
Total UPB | 5,909,473 | 6,850,743 | |
Purchase Marks | (615,732) | (742,533) | |
Total loans held for investment | 5,293,741 | 6,108,210 | |
Purchase Marks, FVO | 22,700 | 33,100 | |
Retail installment contracts, originated | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total UPB | 20,615,741 | 19,069,801 | |
Total loans held for investment | 20,070,670 | 18,521,744 | |
Net Discounts | (545,071) | (548,057) | |
Auto loans | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | 17,550 | 17,844 | |
Retail installment contract, originated, post-change in control | Consumer | Consumer loans not secured by real estate | |||
Loans Receivable [Line Items] | |||
Total loans held for investment | $ 20,088,220 | $ 18,539,588 | |
[1] | Loans held-for-investment includes $285.8 million and $328.7 million of loans recorded at fair value at March 31, 2016 and December 31, 2015, respectively. | ||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 6 to these Condensed Consolidated Financial Statements for additional information. |
LOANS AND ALLOWANCE FOR CREDI53
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Rollforward of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | $ 3,160,711 | $ 1,701,602 |
Provision for loan and lease losses | 857,667 | 1,058,639 |
Other | (27,117) | |
Charge-offs | (1,169,728) | (962,314) |
Recoveries | 631,953 | 510,477 |
Charge-offs, net of recoveries | (537,775) | (451,837) |
Allowance for loan and lease losses, end of period | 3,480,603 | 2,281,287 |
Reserve for unfunded lending commitments, beginning of period | 147,397 | 132,641 |
Provision for unfunded lending commitments | 24,611 | (5,000) |
Loss on unfunded lending commitments | 0 | 0 |
Reserve for unfunded lending commitments, end of period | 172,008 | 127,641 |
Total allowance for credit losses, end of period | 3,652,611 | 2,408,928 |
Ending balance, individually evaluated for impairment | 1,138,927 | 365,118 |
Ending balance, collectively evaluated for impairment | 2,341,675 | 1,916,169 |
Financing receivables: | ||
Ending balance | 83,637,583 | 79,800,855 |
Ending balance, evaluated under the fair value option or lower of cost or fair value(2) | 2,829,151 | 2,037,991 |
Ending balance, individually evaluated for impairment | 5,074,342 | 3,498,395 |
Ending balance, collectively evaluated for impairment | 75,734,090 | 74,264,469 |
Sale of TDRs and NPLs classified as held-for-sale | 1,000,000 | |
Commercial | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 435,717 | 401,553 |
Provision for loan and lease losses | 111,034 | 24,801 |
Charge-offs | (40,315) | (19,339) |
Recoveries | 25,414 | 5,999 |
Charge-offs, net of recoveries | (14,901) | (13,340) |
Allowance for loan and lease losses, end of period | 531,850 | 413,014 |
Reserve for unfunded lending commitments, beginning of period | 147,397 | 132,641 |
Provision for unfunded lending commitments | 24,611 | (5,000) |
Loss on unfunded lending commitments | 0 | 0 |
Reserve for unfunded lending commitments, end of period | 172,008 | 127,641 |
Total allowance for credit losses, end of period | 703,858 | 540,655 |
Ending balance, individually evaluated for impairment | 129,399 | 78,665 |
Ending balance, collectively evaluated for impairment | 402,451 | 334,349 |
Financing receivables: | ||
Ending balance | 41,722,116 | 38,335,323 |
Ending balance, evaluated under the fair value option or lower of cost or fair value(2) | 0 | 44,325 |
Ending balance, individually evaluated for impairment | 638,617 | 478,179 |
Ending balance, collectively evaluated for impairment | 41,083,499 | 37,812,819 |
Consumer | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 2,679,666 | 1,267,025 |
Provision for loan and lease losses | 746,633 | 995,563 |
Other | (27,117) | |
Charge-offs | (1,129,413) | (942,975) |
Recoveries | 606,539 | 504,478 |
Charge-offs, net of recoveries | (522,874) | (438,497) |
Allowance for loan and lease losses, end of period | 2,903,425 | 1,796,974 |
Reserve for unfunded lending commitments, beginning of period | 0 | 0 |
Provision for unfunded lending commitments | 0 | 0 |
Loss on unfunded lending commitments | 0 | 0 |
Reserve for unfunded lending commitments, end of period | 0 | 0 |
Total allowance for credit losses, end of period | 2,903,425 | 1,796,974 |
Ending balance, individually evaluated for impairment | 1,009,528 | 286,453 |
Ending balance, collectively evaluated for impairment | 1,893,896 | 1,510,521 |
Financing receivables: | ||
Ending balance | 41,915,467 | 41,465,532 |
Ending balance, evaluated under the fair value option or lower of cost or fair value(2) | 2,829,151 | 1,993,666 |
Ending balance, individually evaluated for impairment | 4,435,725 | 3,020,216 |
Ending balance, collectively evaluated for impairment | 34,650,591 | 36,451,650 |
Unallocated | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 45,328 | 33,024 |
Provision for loan and lease losses | 0 | 38,275 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Allowance for loan and lease losses, end of period | 45,328 | 71,299 |
Reserve for unfunded lending commitments, beginning of period | 0 | 0 |
Provision for unfunded lending commitments | 0 | 0 |
Loss on unfunded lending commitments | 0 | 0 |
Reserve for unfunded lending commitments, end of period | 0 | 0 |
Total allowance for credit losses, end of period | 45,328 | 71,299 |
Ending balance, individually evaluated for impairment | 0 | 0 |
Ending balance, collectively evaluated for impairment | 45,328 | 71,299 |
Financing receivables: | ||
Ending balance | 0 | 0 |
Ending balance, evaluated under the fair value option or lower of cost or fair value(2) | 0 | 0 |
Ending balance, individually evaluated for impairment | 0 | 0 |
Ending balance, collectively evaluated for impairment | 0 | 0 |
Retail installment contracts and auto loans, purchased | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 590,807 | 963 |
Provision for loan and lease losses | 73,635 | 498,905 |
Other | 0 | (27,117) |
Charge-offs | (264,792) | (487,624) |
Recoveries | 189,457 | 334,104 |
Charge-offs, net of recoveries | (75,335) | (153,520) |
Allowance for loan and lease losses, end of period | 589,107 | 319,231 |
Retail installment contracts and auto loans, originated | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 1,891,989 | 709,024 |
Provision for loan and lease losses | 674,420 | 380,138 |
Other | 0 | 0 |
Charge-offs | (825,080) | (319,002) |
Recoveries | 395,941 | 149,993 |
Charge-offs, net of recoveries | (429,139) | (169,009) |
Allowance for loan and lease losses, end of period | 2,137,270 | 920,153 |
Retail installment contracts and auto loans | ||
Allowance for Loan Losses [Roll Forward] | ||
Allowance for loan and lease losses, beginning of period | 2,482,796 | 709,987 |
Provision for loan and lease losses | 748,055 | 879,043 |
Other | 0 | (27,117) |
Charge-offs | (1,089,872) | (806,626) |
Recoveries | 585,398 | 484,097 |
Charge-offs, net of recoveries | (504,474) | (322,529) |
Allowance for loan and lease losses, end of period | $ 2,726,377 | $ 1,239,384 |
LOANS AND ALLOWANCE FOR CREDI54
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 1,528,444 | $ 1,655,099 |
Foreclosed and other repossessed assets | 190,565 | 172,749 |
Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Other real estate owned (OREO) | 36,981 | 38,959 |
Repossessed vehicles | 188,744 | 172,375 |
Foreclosed and other repossessed assets | 1,821 | 374 |
Total OREO and other repossessed assets | 227,546 | 211,708 |
Total non-performing assets | 1,755,990 | 1,866,807 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 415,677 | 211,067 |
Commercial | Corporate banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 86,397 | 71,979 |
Commercial | Middle market commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 69,249 | 37,745 |
Commercial | Santander real estate capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,754 | 3,454 |
Commercial | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 249,463 | 85,745 |
Commercial | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 4,855 | 9,162 |
Commercial | Other commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,959 | 2,982 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,112,767 | 1,444,032 |
Consumer | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 168,212 | 173,780 |
Consumer | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 123,883 | 127,171 |
Consumer | Retail installment contracts and auto loans, originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 541,565 | 701,785 |
Consumer | Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 262,233 | 417,276 |
Consumer | Personal unsecured loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 400 | 895 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 16,474 | $ 23,125 |
LOANS AND ALLOWANCE FOR CREDI55
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Age Analysis of Past Due Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Percentage of payment needed on past due loans for qualification | 90.00% | |
Total Past Due | $ 3,689,260 | $ 4,500,244 |
Current | 79,948,323 | 78,056,830 |
Total Financing Receivables | 83,637,583 | 82,557,074 |
Recorded Investment Greater than 90 Days and Accruing | 72,878 | 79,729 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,058,440 | 3,737,568 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 630,820 | 762,676 |
Retail installment contracts and auto loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Percentage of payment needed on past due loans for qualification | 50.00% | |
Commercial | Corporate banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 50,616 | 48,085 |
Current | 2,908,560 | 2,901,004 |
Total Financing Receivables | 2,959,176 | 2,949,089 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Corporate banking | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,862 | 18,085 |
Commercial | Corporate banking | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 31,754 | 30,000 |
Commercial | Middle market commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 57,978 | 21,638 |
Current | 4,797,107 | 4,201,721 |
Total Financing Receivables | 4,855,085 | 4,223,359 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Middle market commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 39,964 | 575 |
Commercial | Middle market commercial real estate | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,014 | 21,063 |
Commercial | Santander real estate capital | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,240 | 654 |
Current | 1,490,790 | 1,549,815 |
Total Financing Receivables | 1,501,030 | 1,550,469 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Santander real estate capital | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,240 | 0 |
Commercial | Santander real estate capital | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 654 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 92,925 | 75,099 |
Current | 20,243,903 | 19,799,134 |
Total Financing Receivables | 20,336,828 | 19,874,233 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Commercial and industrial loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 54,518 | 31,067 |
Commercial | Commercial and industrial loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 38,407 | 44,032 |
Commercial | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,401 | 7,488 |
Current | 9,328,081 | 9,430,975 |
Total Financing Receivables | 9,330,482 | 9,438,463 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Multifamily | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,117 | 2,951 |
Commercial | Multifamily | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 284 | 4,537 |
Commercial | Other commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,167 | 6,047 |
Current | 2,731,348 | 2,670,459 |
Total Financing Receivables | 2,739,515 | 2,676,506 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Commercial | Other commercial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,185 | 3,968 |
Commercial | Other commercial | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 982 | 2,079 |
Consumer | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 261,063 | 282,833 |
Current | 6,178,055 | 6,184,922 |
Total Financing Receivables | 6,439,118 | 6,467,755 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Residential mortgages | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 122,560 | 140,323 |
Consumer | Residential mortgages | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 138,503 | 142,510 |
Consumer | Home equity loans and lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 106,080 | 107,881 |
Current | 5,997,764 | 6,043,351 |
Total Financing Receivables | 6,103,844 | 6,151,232 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Home equity loans and lines of credit | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28,548 | 28,166 |
Consumer | Home equity loans and lines of credit | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 77,532 | 79,715 |
Consumer | Retail installment contracts and auto loans, originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,932,622 | 2,362,049 |
Current | 19,500,968 | 17,083,248 |
Total Financing Receivables | 21,433,590 | 19,445,297 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Retail installment contracts and auto loans, originated | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,773,921 | 2,149,480 |
Consumer | Retail installment contracts and auto loans, originated | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 158,701 | 212,569 |
Consumer | Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 951,783 | 1,351,803 |
Current | 4,341,958 | 4,756,407 |
Total Financing Receivables | 5,293,741 | 6,108,210 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Retail installment contracts and auto loans, purchased | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 887,473 | 1,242,545 |
Consumer | Retail installment contracts and auto loans, purchased | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 64,310 | 109,258 |
Consumer | Personal unsecured loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 157,051 | 162,427 |
Current | 1,515,097 | 2,477,454 |
Total Financing Receivables | 1,672,148 | 2,639,881 |
Recorded Investment Greater than 90 Days and Accruing | 72,878 | 79,729 |
Consumer | Personal unsecured loans | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 79,949 | 78,741 |
Consumer | Personal unsecured loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 77,102 | 83,686 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 58,334 | 74,240 |
Current | 914,692 | 958,340 |
Total Financing Receivables | 973,026 | 1,032,580 |
Recorded Investment Greater than 90 Days and Accruing | 0 | 0 |
Consumer | Other consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 33,103 | 41,667 |
Consumer | Other consumer | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 25,231 | $ 32,573 |
LOANS AND ALLOWANCE FOR CREDI56
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Impaired Loans) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Minimum amount for commercial non-accrual loans (in excess of) | $ 1,000,000 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 4,998,313,000 | $ 4,531,285,000 |
Impaired financing receivable, unpaid principal balance | 5,477,495,000 | 5,044,479,000 |
Impaired financing receivable, related specific reserves | 1,138,927,000 | 944,091,000 |
Impaired financing receivables, average recorded investment | 4,764,803,000 | 3,525,256,000 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 564,005,000 | 327,627,000 |
Impaired financing receivable, unpaid principal balance | 631,497,000 | 415,273,000 |
Impaired financing receivable, related specific reserves | 129,399,000 | 48,511,000 |
Impaired financing receivables, average recorded investment | 445,817,000 | 361,333,000 |
Commercial | Corporate banking | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 34,657,000 | 40,843,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 41,908,000 | 31,376,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 37,396,000 | 43,582,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 43,172,000 | 32,650,000 |
Impaired financing receivable, related specific reserves | 7,814,000 | 6,413,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 37,750,000 | 39,289,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 36,642,000 | 45,663,000 |
Commercial | Middle market commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 77,307,000 | 78,325,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 73,054,000 | 38,046,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 122,255,000 | 123,495,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 83,875,000 | 43,745,000 |
Impaired financing receivable, related specific reserves | 13,100,000 | 5,624,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 77,816,000 | 103,059,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 55,550,000 | 49,072,000 |
Commercial | Santander real estate capital | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 2,754,000 | 2,815,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 0 | 654,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 2,754,000 | 2,815,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 0 | 782,000 |
Impaired financing receivable, related specific reserves | 0 | 98,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 2,785,000 | 2,899,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 327,000 | 2,266,000 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 5,360,000 | 3,635,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 310,338,000 | 113,358,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 6,636,000 | 5,046,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 315,312,000 | 142,308,000 |
Impaired financing receivable, related specific reserves | 108,141,000 | 35,184,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 4,498,000 | 5,780,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 211,848,000 | 88,771,000 |
Commercial | Multifamily loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 13,525,000 | 9,467,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 4,285,000 | 5,653,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 14,537,000 | 10,488,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 4,290,000 | 5,658,000 |
Impaired financing receivable, related specific reserves | 233,000 | 443,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 11,496,000 | 15,980,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 4,969,000 | 5,816,000 |
Commercial | Other commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 193,000 | 239,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 624,000 | 3,216,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 193,000 | 239,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 1,077,000 | 4,465,000 |
Impaired financing receivable, related specific reserves | 111,000 | 749,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 216,000 | 164,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 1,920,000 | 2,574,000 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, recorded investment | 4,434,308,000 | 4,203,658,000 |
Impaired financing receivable, unpaid principal balance | 4,845,998,000 | 4,629,206,000 |
Impaired financing receivable, related specific reserves | 1,009,528,000 | 895,580,000 |
Impaired financing receivables, average recorded investment | 4,318,986,000 | 3,163,923,000 |
Consumer | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 68,860,000 | 26,808,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 131,665,000 | 172,265,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 68,860,000 | 26,808,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 159,330,000 | 200,176,000 |
Impaired financing receivable, related specific reserves | 25,157,000 | 25,034,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 47,834,000 | 25,108,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 151,965,000 | 151,539,000 |
Consumer | Home equity loans and lines of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 52,211,000 | 31,080,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 51,512,000 | 71,847,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 52,211,000 | 31,080,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 66,348,000 | 86,355,000 |
Impaired financing receivable, related specific reserves | 4,242,000 | 3,757,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 41,646,000 | 29,155,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 61,680,000 | 65,990,000 |
Consumer | Retail installment contracts and auto loans, originated | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 12,000 | 15,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 1,687,960,000 | 1,325,975,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 12,000 | 15,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 1,727,498,000 | 1,359,585,000 |
Impaired financing receivable, related specific reserves | 509,735,000 | 408,208,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 14,000 | 8,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 1,506,968,000 | 691,244,000 |
Consumer | Retail installment contracts and auto loans, purchased | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 61,649,000 | 75,698,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 2,324,690,000 | 2,454,108,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 78,831,000 | 96,768,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 2,627,273,000 | 2,773,536,000 |
Impaired financing receivable, related specific reserves | 466,941,000 | 454,926,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 68,674,000 | 931,411,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 2,389,399,000 | 1,227,054,000 |
Consumer | Personal unsecured loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 19,775,000 | 12,865,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 1,607,000 | 1,839,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 19,775,000 | 12,865,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 2,838,000 | 2,226,000 |
Impaired financing receivable, related specific reserves | 421,000 | 430,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 16,320,000 | 6,729,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | 1,723,000 | 9,158,000 |
Consumer | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable with no related allowance recorded, recorded investment | 19,800,000 | 12,495,000 |
Impaired financing receivable with related allowance recorded, recorded investment | 14,567,000 | 18,663,000 |
Impaired financing receivable with no related allowance recorded, unpaid principal balance | 24,026,000 | 16,002,000 |
Impaired financing receivable with related allowance recorded, unpaid principal balance | 18,996,000 | 23,790,000 |
Impaired financing receivable, related specific reserves | 3,032,000 | 3,225,000 |
Impaired financing receivable with no related allowance recorded, average recorded investment | 16,148,000 | 9,048,000 |
Impaired financing receivable with related allowance recorded, average recorded investment | $ 16,615,000 | $ 17,479,000 |
LOANS AND ALLOWANCE FOR CREDI57
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Lending Asset Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | $ 41,722,116 | $ 40,712,119 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 39,379,674 | 38,673,364 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,001,545 | 1,043,286 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,240,615 | 926,537 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 100,282 | 68,932 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 20,336,828 | 19,874,233 |
Commercial and industrial loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 18,884,555 | 18,881,150 |
Commercial and industrial loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 587,511 | 492,128 |
Commercial and industrial loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 833,213 | 467,983 |
Commercial and industrial loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 31,549 | 32,972 |
Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 9,330,482 | 9,438,463 |
Multifamily | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 9,094,426 | 9,114,466 |
Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 169,933 | 249,165 |
Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 65,717 | 74,410 |
Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 406 | 422 |
Remaining commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,739,515 | 2,676,506 |
Remaining commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,702,806 | 2,631,935 |
Remaining commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 12,441 | 28,686 |
Remaining commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 23,698 | 15,601 |
Remaining commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 570 | 284 |
Commercial | Corporate banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,959,177 | 2,949,089 |
Commercial | Corporate banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 2,675,141 | 2,627,159 |
Commercial | Corporate banking | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 80,161 | 99,090 |
Commercial | Corporate banking | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 190,974 | 208,785 |
Commercial | Corporate banking | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 12,901 | 14,055 |
Commercial | Middle market commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 4,855,085 | 4,223,359 |
Commercial | Middle market commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 4,621,615 | 4,055,623 |
Commercial | Middle market commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 80,253 | 29,620 |
Commercial | Middle market commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 98,361 | 117,571 |
Commercial | Middle market commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 54,856 | 20,545 |
Commercial | Santander real estate capital | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,501,029 | 1,550,469 |
Commercial | Santander real estate capital | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 1,401,131 | 1,363,031 |
Commercial | Santander real estate capital | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 71,246 | 144,597 |
Commercial | Santander real estate capital | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | 28,652 | 42,187 |
Commercial | Santander real estate capital | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial loans | $ 0 | $ 654 |
LOANS AND ALLOWANCE FOR CREDI58
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Consumer Lending Asset Quality Indicators - Credit Score) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)trade_line | Dec. 31, 2015USD ($) | |
Loans Receivable [Line Items] | ||
Financing receivable, origination volume | $ 83,637,583 | $ 82,557,074 |
Financing receivable | 77,613,639 | 76,213,081 |
Personal unsecured loans | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable, origination volume | 1,672,148 | 2,639,881 |
Loans held-for-sale | 978,800 | 2,000,000 |
Retail installment contracts and auto loans | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable | $ 26,727,331 | $ 25,553,507 |
Percentage of total loans, Retail installment contracts and auto loans | 100.00% | 100.00% |
Retail installment contracts and auto loans | FICO score not applicable | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable | $ 4,660,293 | $ 4,913,606 |
Percentage of total loans, Retail installment contracts and auto loans | 17.40% | 19.20% |
Retail installment contracts and auto loans | FICO score less than 600 | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable | $ 14,356,257 | $ 13,374,065 |
Percentage of total loans, Retail installment contracts and auto loans | 53.70% | 52.30% |
Retail installment contracts and auto loans | FICO score of 600 to 639 | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable | $ 4,540,230 | $ 4,260,982 |
Percentage of total loans, Retail installment contracts and auto loans | 17.00% | 16.70% |
Retail installment contracts and auto loans | FICO score of 640 or greater | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable | $ 3,170,551 | $ 3,004,854 |
Percentage of total loans, Retail installment contracts and auto loans | 11.90% | 11.80% |
Limited Bureau Attributes | Unfunded Loan Commitment | Consumer | ||
Loans Receivable [Line Items] | ||
Financing receivable, credit history | 36 months | |
Financing receivable, number of trade lines on credit report (less than) | trade_line | 4 | |
Financing receivable, origination volume | $ 944,000 | |
Allowance for credit losses, increase | $ 193,300 | |
Allowance for credit losses, ratio to unpaid principal balance, increase | 0.70% |
LOANS AND ALLOWANCE FOR CREDI59
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Consumer Lending Asset Quality Indicators - FICO and CLTV Range) (Details) - Consumer - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | $ 6,439,118 | $ 6,467,755 |
Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 6,103,844 | 6,151,232 |
LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 434,986 | 462,640 |
LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 271,530 | 286,419 |
LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,841,700 | 3,842,373 |
LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,203,257 | 3,241,188 |
LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,454,711 | 1,440,194 |
LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,110,106 | 2,088,030 |
LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 329,013 | 336,893 |
LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 233,019 | 227,494 |
LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 321,276 | 332,064 |
LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 58,714 | 64,578 |
LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 86,975 | 93,583 |
LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 197,675 | 203,531 |
FICO score not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 448,926 | 476,858 |
FICO score not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 191,393 | 193,074 |
FICO score not applicable | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 434,206 | 461,839 |
FICO score not applicable | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 189,921 | 192,379 |
FICO score not applicable | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 13,447 | 12,250 |
FICO score not applicable | LTV less than or equal to 70% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 553 | 390 |
FICO score not applicable | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,273 | 2,769 |
FICO score not applicable | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 919 | 305 |
FICO score not applicable | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 0 |
FICO score not applicable | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 0 |
FICO score not applicable | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 0 | 0 |
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 | 0 |
FICO score less than 600 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 348,027 | 362,824 |
FICO score less than 600 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 279,339 | 290,439 |
FICO score less than 600 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 124 | 128 |
FICO score less than 600 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,979 | 11,110 |
FICO score less than 600 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 221,524 | 226,185 |
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 | 150,526 | 155,306 |
FICO score less than 600 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 61,470 | 69,698 |
FICO score less than 600 | LTV of 70.01% to 90% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 75,867 | 79,389 |
FICO score less than 600 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 26,279 | 30,491 |
FICO score less than 600 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 19,021 | 18,279 |
FICO score less than 600 | LTV of 90.01% to 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 21,222 | 22,373 |
FICO score less than 600 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 9,100 | 8,441 |
FICO score less than 600 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,509 | 9,602 |
FICO score less than 600 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 20,745 | 22,261 |
FICO score of 600 to 639 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 238,177 | 252,976 |
FICO score of 600 to 639 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 262,995 | 265,987 |
FICO score of 600 to 639 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 53 | 1 |
FICO score of 600 to 639 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 8,447 | 8,871 |
FICO score of 600 to 639 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 150,320 | 158,290 |
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 | 138,913 | 140,277 |
FICO score of 600 to 639 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 40,977 | 43,002 |
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 | 83,320 | 83,548 |
FICO score of 600 to 639 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 22,786 | 23,281 |
FICO score of 600 to 639 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 13,105 | 15,585 |
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 | 20,173 | 20,766 |
FICO score of 600 to 639 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 4,091 | 5,238 |
FICO score of 600 to 639 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 6,845 | 7,579 |
FICO score of 600 to 639 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 12,142 | 12,525 |
FICO Score of 640 to 679 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 453,001 | 419,770 |
FICO Score of 640 to 679 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 495,642 | 500,728 |
FICO Score of 640 to 679 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 66 | 230 |
FICO Score of 640 to 679 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 11,587 | 12,534 |
FICO Score of 640 to 679 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 257,146 | 252,727 |
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 | 252,008 | 254,481 |
FICO Score of 640 to 679 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 97,181 | 81,552 |
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 | 175,327 | 174,223 |
FICO Score of 640 to 679 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 39,952 | 35,001 |
FICO Score of 640 to 679 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 39,929 | 29,125 |
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 | 31,474 | 32,925 |
FICO Score of 640 to 679 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 8,262 | 9,101 |
FICO Score of 640 to 679 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,465 | 12,034 |
FICO Score of 640 to 679 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 25,246 | 26,565 |
FICO Score of 680 to 719 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 769,974 | 792,060 |
FICO Score of 680 to 719 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 850,848 | 851,662 |
FICO Score of 680 to 719 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 84 | 19 |
FICO Score of 680 to 719 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 11,691 | 14,273 |
FICO Score of 680 to 719 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 464,194 | 462,180 |
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 | 430,595 | 431,818 |
FICO Score of 680 to 719 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 167,379 | 183,568 |
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 | 322,550 | 317,260 |
FICO Score of 680 to 719 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 62,961 | 62,670 |
FICO Score of 680 to 719 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 48,935 | 51,659 |
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 | 55,127 | 56,589 |
FICO Score of 680 to 719 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 7,942 | 9,194 |
FICO Score of 680 to 719 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 18,479 | 22,770 |
FICO Score of 680 to 719 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 30,885 | 31,722 |
FICO Score of 720 to 759 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,160,851 | 1,183,942 |
FICO Score of 720 to 759 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 1,155,416 | 1,156,986 |
FICO Score of 720 to 759 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 108 | 339 |
FICO Score of 720 to 759 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,456 | 12,673 |
FICO Score of 720 to 759 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 673,413 | 681,473 |
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 | 613,886 | 614,748 |
FICO Score of 720 to 759 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 336,181 | 341,934 |
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 | 428,576 | 425,744 |
FICO Score of 720 to 759 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 65,824 | 72,729 |
FICO Score of 720 to 759 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 54,597 | 55,461 |
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 | 62,879 | 63,840 |
FICO Score of 720 to 759 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 10,846 | 11,024 |
FICO Score of 720 to 759 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 19,882 | 20,982 |
FICO Score of 720 to 759 | LTV greater than 110% | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 39,619 | 39,981 |
FICO Score Equal to or Greater than 760 | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 3,020,162 | 2,979,325 |
FICO Score Equal to or Greater than 760 | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,868,211 | 2,892,356 |
FICO Score Equal to or Greater than 760 | LTV not applicable | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 345 | 84 |
FICO Score Equal to or Greater than 760 | LTV not applicable | Home Equity Loans and Lines of Credit | ||
Loans Receivable [Line Items] | ||
Financing receivables | 28,449 | 34,579 |
FICO Score Equal to or Greater than 760 | LTV less than or equal to 70% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 2,061,656 | 2,049,268 |
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 | 1,616,776 | 1,644,168 |
FICO Score Equal to or Greater than 760 | LTV of 70.01% to 80% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 750,250 | 717,671 |
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 | 1,023,547 | 1,007,561 |
FICO Score Equal to or Greater than 760 | LTV of 80.01% to 90% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 111,211 | 112,721 |
FICO Score Equal to or Greater than 760 | LTV of 90.01% to 100% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 57,432 | 57,385 |
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 | 130,401 | 135,571 |
FICO Score Equal to or Greater than 760 | LTV of 100.01% to 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 18,473 | 21,580 |
FICO Score Equal to or Greater than 760 | LTV greater than 110% | Residential mortgages | ||
Loans Receivable [Line Items] | ||
Financing receivables | 20,795 | 20,616 |
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 | $ 69,038 | $ 70,477 |
LOANS AND ALLOWANCE FOR CREDI60
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Troubled Debt Restructuring Activity) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)contract | Mar. 31, 2015USD ($)contractContract | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ 4,687,840 | $ 4,399,546 | |
Number of Contracts | contract | 59,471 | 80,142 | |
Pre-TDR Recorded Investment | $ 788,949 | $ 1,156,292 | |
Post-TDR Recorded Investment | (777,260) | $ (1,150,986) | |
Performing | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | 4,178,248 | 3,797,231 | |
Non-performing | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ 509,592 | $ 602,315 | |
Commercial | Corporate banking | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 9 | 2 | |
Pre-TDR Recorded Investment | $ 47,776 | $ 1,448 | |
Post-TDR Recorded Investment | $ (37,166) | $ (1,439) | |
Commercial | Middle market commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 3 | 1 | |
Pre-TDR Recorded Investment | $ 10,454 | $ 14,439 | |
Post-TDR Recorded Investment | $ (10,385) | $ (14,439) | |
Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 223 | 81 | |
Pre-TDR Recorded Investment | $ 7,230 | $ 10,872 | |
Post-TDR Recorded Investment | $ (7,229) | $ (8,159) | |
Number of Contracts | contract | 55 | 10 | |
Recorded Investment | $ 2,000 | $ 276 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 14,796 | 9,782 | |
Recorded Investment | $ 220,706 | $ 144,305 | |
Consumer | Residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 49 | 46 | |
Pre-TDR Recorded Investment | $ 6,648 | $ 7,866 | |
Post-TDR Recorded Investment | $ (6,852) | $ (7,588) | |
Number of Contracts | contract | 11 | 8 | |
Recorded Investment | $ 1,812 | $ 931 | |
Consumer | Home equity loans and lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 67 | 40 | |
Pre-TDR Recorded Investment | $ 4,539 | $ 3,671 | |
Post-TDR Recorded Investment | $ (4,434) | $ (3,671) | |
Number of Contracts | contract | 5 | 5 | |
Recorded Investment | $ 341 | $ 262 | |
Consumer | Retail installment contracts and auto loans, originated | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 27,695 | 7,031 | |
Pre-TDR Recorded Investment | $ 514,066 | $ 137,751 | |
Post-TDR Recorded Investment | $ (513,922) | $ (137,679) | |
Consumer | Retail installment contracts and auto loans, purchased | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 14,344 | 68,458 | |
Pre-TDR Recorded Investment | $ 175,968 | $ 973,931 | |
Post-TDR Recorded Investment | $ (175,311) | $ (971,743) | |
Consumer | Retail installment contracts and auto loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 13,124 | 9,693 | |
Recorded Investment | $ 214,702 | $ 142,534 | |
Consumer | Personal unsecured loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 17,055 | 4,468 | |
Pre-TDR Recorded Investment | $ 21,345 | $ 5,394 | |
Post-TDR Recorded Investment | $ (21,216) | $ (5,356) | |
Number of Contracts | contract | 1,599 | 64 | |
Recorded Investment | $ 1,827 | $ 58 | |
Consumer | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 26 | 15 | |
Pre-TDR Recorded Investment | $ 923 | $ 920 | |
Post-TDR Recorded Investment | $ (745) | $ (912) | |
Number of Contracts | contract | 2 | 2 | |
Recorded Investment | $ 24 | $ 244 | |
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (567) | (1,829) | |
Term Extension | Commercial | Corporate banking | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (16) | 0 | |
Term Extension | Commercial | Middle market commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Term Extension | Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (1) | (34) | |
Term Extension | Consumer | Residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (1) | 0 | |
Term Extension | Consumer | Home equity loans and lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 132 | 0 | |
Term Extension | Consumer | Retail installment contracts and auto loans, originated | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (14) | ||
Term Extension | Consumer | Retail installment contracts and auto loans, purchased | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 598 | (1,781) | |
Term Extension | Consumer | Retail installment contracts and auto loans | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (83) | ||
Term Extension | Consumer | Personal unsecured loans | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Term Extension | Consumer | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (10,583) | (2,704) | |
Principal Forbearance | Commercial | Corporate banking | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (10,583) | 0 | |
Principal Forbearance | Commercial | Middle market commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | (2,679) | |
Principal Forbearance | Consumer | Residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | (25) | |
Principal Forbearance | Consumer | Home equity loans and lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | Consumer | Retail installment contracts and auto loans, originated | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | Consumer | Retail installment contracts and auto loans, purchased | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | Consumer | Personal unsecured loans | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Principal Forbearance | Consumer | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (539) | (773) | |
Other | Commercial | Corporate banking | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (11) | (9) | |
Other | Commercial | Middle market commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (69) | 0 | |
Other | Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 0 | 0 | |
Other | Consumer | Residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | 205 | (253) | |
Other | Consumer | Home equity loans and lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (237) | 0 | |
Other | Consumer | Retail installment contracts and auto loans, originated | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (61) | (58) | |
Other | Consumer | Retail installment contracts and auto loans, purchased | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (59) | (407) | |
Other | Consumer | Personal unsecured loans | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | (129) | (38) | |
Other | Consumer | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Post-TDR Recorded Investment | $ (178) | $ (8) |
LEASED VEHICLES, NET (Narrative
LEASED VEHICLES, NET (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Leased Assets [Line Items] | ||
Lease income | $ 421,520 | $ 313,331 |
Lease expense | $ 292,882 | 240,948 |
FCA | ||
Operating Leased Assets [Line Items] | ||
Private label financing agreement, term | 10 years | |
Sale of leases originated, depreciated net capitalized costs | 561,300 | |
Sale of leases, net book value | $ 488,900 |
LEASED VEHICLES, NET (Component
LEASED VEHICLES, NET (Components of Leased Vehicles, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Leased vehicles | $ 12,255,737 | $ 11,297,752 | |
Origination fees and other costs | 30,127 | 29,800 | |
Manufacturer subvention payments, net of accretion | (1,153,959) | (1,048,713) | |
Leased vehicles, gross | 11,131,905 | 10,278,839 | |
Less: accumulated depreciation | (2,172,677) | (1,901,004) | |
Leased vehicles, net | [1],[2] | $ 8,959,228 | $ 8,377,835 |
[1] | Net of accumulated depreciation of $2.2 billion and $1.9 billion at March 31, 2016 and December 31, 2015, 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 6 to these Condensed Consolidated Financial Statements for additional information. |
LEASED VEHICLES, NET (Future Mi
LEASED VEHICLES, NET (Future Minimum Rental Receivables) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
Remainder of 2016 | $ 1,280,280 |
2,017 | 1,140,764 |
2,018 | 445,015 |
2,019 | 24,175 |
2,020 | 50 |
Total | $ 2,890,284 |
VARIABLE INTEREST ENTITIES (Nar
VARIABLE INTEREST ENTITIES (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Trusts | VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Gross retail installment contracts transferred to consolidated Trusts | $ 27.9 | $ 27.3 |
Off-balance Securitization Trusts | ||
Variable Interest Entity [Line Items] | ||
Proceeds from securitization of retail installment contracts | $ 3.4 | $ 3.9 |
VARIABLE INTEREST ENTITIES (Ass
VARIABLE INTEREST ENTITIES (Assets and Liabilities of VIEs) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | ||
Variable Interest Entity [Line Items] | |||||
Restricted cash | [1] | $ 2,923,603 | $ 2,429,729 | ||
Leased vehicles, net | [1],[2] | 8,959,228 | 8,377,835 | ||
Various other assets | [1],[3] | 2,304,725 | 1,893,815 | ||
Total assets | 131,024,627 | 127,571,282 | $ 123,416,531 | ||
Various other liabilities | 817,889 | [1] | 598,380 | ||
Total Liabilities | 111,258,518 | 107,989,507 | |||
VIEs, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Restricted cash | 1,982,611 | 1,842,877 | |||
Loans | 23,213,909 | 23,494,541 | |||
Leased vehicles, net | 7,277,220 | 6,497,310 | |||
Various other assets | 589,279 | 630,017 | |||
Total assets | 33,063,019 | 32,464,745 | |||
Notes payable | 30,515,797 | 30,628,837 | |||
Various other liabilities | 85,111 | 85,844 | |||
Total Liabilities | 30,600,908 | 30,714,681 | |||
VIEs, Primary Beneficiary | Retail installment contracts held for sale | |||||
Variable Interest Entity [Line Items] | |||||
Loans | $ 1,300,000 | $ 1,500,000 | |||
[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 6 to these Condensed Consolidated Financial Statements for additional information. | ||||
[2] | Net of accumulated depreciation of $2.2 billion and $1.9 billion at March 31, 2016 and December 31, 2015, respectively. | ||||
[3] | Includes mortgage servicing rights ("MSRs") of $130.7 million and $147.2 million at March 31, 2016 and December 31, 2015, respectively, for which Santander Holdings USA, Inc. (the "Company") has elected the FVO. See Note 8 to these Condensed Consolidated Financial Statements for additional information. |
VARIABLE INTEREST ENTITIES (Cas
VARIABLE INTEREST ENTITIES (Cash Flow Summary) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
VIE, Primary Beneficiary | Trusts | ||
Variable Interest Entity [Line Items] | ||
Assets securitized | $ 3,657,955 | $ 3,981,855 |
Net proceeds from new securitizations | 2,702,004 | 3,056,950 |
Cash received for servicing fees | 194,365 | 161,962 |
Net distributions from Trusts | 629,726 | 456,053 |
Total cash received from securitization trusts | 3,526,095 | 3,674,965 |
VIE, Not Primary Beneficiary | Off-balance Securitization Trusts | ||
Variable Interest Entity [Line Items] | ||
Assets securitized | 0 | 0 |
Net proceeds from new securitizations | 0 | 0 |
Cash received for servicing fees | 15,701 | 5,304 |
Total cash received from securitization trusts | $ 15,701 | $ 5,304 |
GOODWILL AND OTHER INTANGIBLE67
GOODWILL AND OTHER INTANGIBLES (Goodwill) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 4,444,389,000 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | |
Re-allocations during the period | 0 | |
Goodwill, Ending balance | 4,444,389,000 | $ 4,444,389,000 |
Consumer and Business Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 1,550,321,000 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | |
Re-allocations during the period | 329,983,000 | |
Goodwill, Ending balance | 1,880,304,000 | 1,550,321,000 |
Auto Finance & Business Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 445,923,000 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | |
Re-allocations during the period | (445,923,000) | |
Goodwill, Ending balance | 0 | 445,923,000 |
Commercial Real Estate | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 0 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | |
Re-allocations during the period | 870,411,000 | |
Goodwill, Ending balance | 870,411,000 | 0 |
Commercial Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 1,297,055,000 | |
Re-allocations during the period | (754,471,000) | |
Goodwill, Ending balance | 542,584,000 | 1,297,055,000 |
Global Corporate Banking | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 131,130,000 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | |
Re-allocations during the period | 0 | |
Goodwill, Ending balance | 131,130,000 | 131,130,000 |
SC | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 1,019,960,000 | |
Disposals during the period | 0 | |
Additions during the period | 0 | |
Impairment during the period | 0 | (4,500,000,000) |
Re-allocations during the period | 0 | |
Goodwill, Ending balance | $ 1,019,960,000 | $ 1,019,960,000 |
GOODWILL AND OTHER INTANGIBLE68
GOODWILL AND OTHER INTANGIBLES (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Goodwill [Line Items] | |||
Impairment of goodwill | $ 0 | ||
Amortization of intangibles | 14,938,000 | $ 16,806,000 | |
Consumer and Business Banking | |||
Goodwill [Line Items] | |||
Goodwill reallocated | 330,000,000 | ||
Impairment of goodwill | 0 | ||
Commercial Real Estate Banking | |||
Goodwill [Line Items] | |||
Goodwill reallocated | 870,400,000 | ||
Commercial Banking | |||
Goodwill [Line Items] | |||
Goodwill reallocated | 115,900,000 | ||
SC | |||
Goodwill [Line Items] | |||
Impairment of goodwill | $ 0 | $ 4,500,000,000 |
GOODWILL AND OTHER INTANGIBLE69
GOODWILL AND OTHER INTANGIBLES (Finite-lived and Indefinite-lived Intangibles) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Net Carrying Amount | ||
Intangibles subject to amortization | $ 606,117 | $ 621,055 |
Total Intangibles | 624,117 | 639,055 |
Accumulated Amortization | (438,384) | (423,445) |
Trade name | ||
Net Carrying Amount | ||
Intangibles not subject to amortization | 18,000 | 18,000 |
Dealer networks | ||
Net Carrying Amount | ||
Intangibles subject to amortization | 495,036 | 504,839 |
Accumulated Amortization | (84,964) | (75,161) |
Chrysler relationship | ||
Net Carrying Amount | ||
Intangibles subject to amortization | 106,250 | 110,000 |
Accumulated Amortization | (32,500) | (28,750) |
Core deposit intangibles | ||
Net Carrying Amount | ||
Intangibles subject to amortization | 152 | 763 |
Accumulated Amortization | (295,690) | (295,079) |
Other intangibles | ||
Net Carrying Amount | ||
Intangibles subject to amortization | 4,679 | 5,453 |
Accumulated Amortization | $ (25,230) | $ (24,455) |
GOODWILL AND OTHER INTANGIBLE70
GOODWILL AND OTHER INTANGIBLES (Future Amortization Expense) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016, Calendar year amount | $ 57,162 |
Amortization of intangibles | 14,938 |
2016, Remaining amount to record | 42,224 |
2,017 | 55,055 |
2,018 | 54,702 |
2,019 | 54,501 |
2,020 | 54,441 |
Thereafter | $ 345,194 |
OTHER ASSETS (Narrative) (Detai
OTHER ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets [Line Items] | ||||
Mortgage servicing fee income | $ 10,800 | $ 11,200 | ||
Gains (losses) on sale of mortgage loans | 3,100 | 6,200 | ||
Residential mortgages | ||||
Servicing Assets [Line Items] | ||||
Principal balance of loans serviced for others | 15,800,000 | $ 15,900,000 | ||
Mortgage servicing rights | 130,742 | 135,452 | $ 147,233 | $ 145,047 |
Net changes in the fair value of MSRs | $ (14,400) | $ (7,000) |
OTHER ASSETS (Other Assets Sche
OTHER ASSETS (Other Assets Schedule) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets [Line Items] | |||||
Income tax receivables | $ 606,460 | $ 613,339 | |||
Derivative assets at fair value | 481,733 | 355,169 | |||
Other repossessed assets | 190,565 | 172,749 | |||
Prepaid expenses | 176,733 | 162,879 | |||
OREO | 36,981 | 38,959 | |||
Miscellaneous assets and receivables | 681,511 | 403,487 | |||
Other assets | [1],[2] | 2,304,725 | 1,893,815 | ||
Residential MSRs | |||||
Servicing Assets [Line Items] | |||||
MSRs, at fair value | $ 130,742 | $ 147,233 | $ 135,452 | $ 145,047 | |
[1] | Includes mortgage servicing rights ("MSRs") of $130.7 million and $147.2 million at March 31, 2016 and December 31, 2015, respectively, for which Santander Holdings USA, Inc. (the "Company") has elected the FVO. See Note 8 to these Condensed Consolidated Financial Statements for additional information. | ||||
[2] | The Company has interests in certain securitization trusts ("Trusts") that are considered variable interest entities ("VIEs") for accounting purposes. The Company consolidates VIEs where it is deemed the primary beneficiary. See Note 6 to these Condensed Consolidated Financial Statements for additional information. |
OTHER ASSETS (Servicing Assets
OTHER ASSETS (Servicing Assets Rollforward) (Details) - Residential MSRs - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at beginning of period | $ 147,233 | $ 145,047 |
Mortgage servicing assets recognized | 3,591 | 3,526 |
Principal reductions | (5,726) | (6,131) |
Change in fair value due to valuation assumptions | (14,356) | (6,990) |
Fair value at end of period | $ 130,742 | $ 135,452 |
DEPOSITS AND OTHER CUSTOMER A74
DEPOSITS AND OTHER CUSTOMER ACCOUNTS (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 7,500 | $ 3,500 |
Demand deposit overdrafts that have been reclassified as loan balances | 37.5 | 25.2 |
Public fund deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral, fair value | $ 4,300 | $ 2,900 |
DEPOSITS AND OTHER CUSTOMER A75
DEPOSITS AND OTHER CUSTOMER ACCOUNTS (Summary of Deposits and Other Customer Accounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Interest-bearing demand deposits | $ 9,804,755 | $ 10,253,948 |
Interest-bearing demand deposits (as a percent) | 17.10% | 18.30% |
Non-interest-bearing demand deposits | $ 8,565,569 | $ 8,240,023 |
Non-interest-bearing demand deposits (as a percent) | 14.90% | 14.70% |
Savings | $ 4,149,767 | $ 3,956,165 |
Savings (as a percent) | 7.20% | 7.00% |
Customer repurchase accounts | $ 879,411 | $ 896,736 |
Customer repurchase accounts (as a percent) | 1.50% | 1.60% |
Money market | $ 24,589,904 | $ 24,254,357 |
Money market (as a percent) | 42.80% | 43.20% |
Certificates of deposit | $ 9,474,844 | $ 8,513,003 |
Certificates of deposit (as a percent) | 16.50% | 15.20% |
Total Deposits | $ 57,464,250 | $ 56,114,232 |
Total Deposits (as a percent) | 100.00% | 100.00% |
Foreign deposits | $ 474,300 | $ 495,900 |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) - USD ($) | May 10, 2016 | Apr. 18, 2016 | Feb. 22, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||
Total borrowings and other debt obligations | [1] | $ 50,756,501,000 | $ 49,086,103,000 | ||||
Borrowings repurchase | 0 | $ 0 | |||||
Loss on debt extinguishment | $ 32,872,000 | $ 0 | |||||
Senior notes with related party, due August 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on LIBOR | 2.18% | ||||||
FHLB Advances | |||||||
Debt Instrument [Line Items] | |||||||
Debt terminated | $ 1,300,000,000 | ||||||
Loss on debt extinguishment | $ 32,900,000 | ||||||
Subsequent Event | FHLB Advances | |||||||
Debt Instrument [Line Items] | |||||||
Debt terminated | $ 250,000,000 | $ 125,000,000 | |||||
Prepayment fees | $ 7,500,000 | $ 4,800,000 | |||||
Santander Bank | Senior Notes | Senior notes with related party, due August 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||
Basis spread on LIBOR | 2.18% | ||||||
[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 6 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS (SHUSA) (Details)
BORROWINGS (SHUSA) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Total borrowings and other debt obligations | [1] | $ 50,756,501 | $ 49,086,103 |
Senior notes with related party, due August 2017 | |||
Debt Instrument [Line Items] | |||
Basis spread on LIBOR | 2.18% | ||
SHUSA | |||
Debt Instrument [Line Items] | |||
Total borrowings and other debt obligations | $ 4,795,939 | $ 3,294,976 | |
Effective Rate | 3.57% | 3.91% | |
SHUSA | 4.625% senior notes, due April 2016 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 475,982 | $ 475,723 | |
Effective Rate | 4.85% | 4.85% | |
Stated interest rate | 4.625% | ||
SHUSA | 3.45% senior notes, due August 2018 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 497,999 | $ 497,800 | |
Effective Rate | 3.62% | 3.62% | |
Stated interest rate | 3.45% | ||
SHUSA | 2.65% senior notes, due April 2020 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 993,527 | $ 993,151 | |
Effective Rate | 2.82% | 2.82% | |
Stated interest rate | 2.65% | ||
SHUSA | 4.50% senior notes, due July 2025 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 1,094,599 | $ 1,094,483 | |
Effective Rate | 4.56% | 4.56% | |
Stated interest rate | 4.50% | ||
SHUSA | Junior subordinated debentures - Capital Trust VI, due June 2036 | |||
Debt Instrument [Line Items] | |||
Subordinated debentures, Balance | $ 69,781 | $ 69,775 | |
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 | $ 149,411 | $ 149,404 | |
Effective Rate | 2.43% | 2.18% | |
SHUSA | Common securities - Capital Trust IX | |||
Debt Instrument [Line Items] | |||
Common securities, Balance | $ 4,640 | $ 4,640 | |
Effective Rate | 2.43% | 2.18% | |
SHUSA | Santander Bank | Senior notes with related party, due August 2017 | |||
Debt Instrument [Line Items] | |||
Senior notes, Balance | $ 1,500,000 | $ 0 | |
Effective Rate | 2.80% | 0.00% | |
[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 6 to these Condensed Consolidated Financial Statements for additional information. |
BORROWINGS (Santander Bank) (De
BORROWINGS (Santander Bank) (Details) - Santander Bank - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Total borrowings and other debt obligations | $ 14,740,384 | $ 15,695,144 |
Effective Rate | 1.74% | 1.85% |
2.00% senior notes, due January 2018 | ||
Debt Instrument [Line Items] | ||
Senior notes, Balance | $ 746,818 | $ 746,381 |
Effective Rate | 2.24% | 2.24% |
Stated interest rate | 2.00% | |
Senior Notes Due January 2018 | ||
Debt Instrument [Line Items] | ||
Senior notes, Balance | $ 249,486 | $ 249,415 |
Effective Rate | 1.72% | 1.31% |
Basis spread on LIBOR | 0.93% | |
8.750% subordinated debentures, due May 2018 | ||
Debt Instrument [Line Items] | ||
Subordinated debentures, Balance | $ 498,346 | $ 498,175 |
Effective Rate | 8.92% | 8.92% |
Stated interest rate | 8.75% | |
Subordinated term loan, due February 2019 | ||
Debt Instrument [Line Items] | ||
Subordinated term loan, Balance | $ 124,979 | $ 130,899 |
Effective Rate | 6.53% | 6.15% |
FHLB advances, maturing through July 2019 | ||
Debt Instrument [Line Items] | ||
FHLB advances, Balance | $ 12,835,000 | $ 13,885,000 |
Effective Rate | 1.24% | 1.40% |
REIT preferred, due May 2020 | ||
Debt Instrument [Line Items] | ||
REIT preferred, due May 2020, Balance | $ 155,310 | $ 154,930 |
Effective Rate | 13.48% | 13.66% |
Subordinated term loan, due August 2022 | ||
Debt Instrument [Line Items] | ||
Subordinated term loan, Balance | $ 30,445 | $ 30,344 |
Effective Rate | 8.28% | 7.89% |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Short-term debt, Balance | $ 100,000 | $ 0 |
Effective Rate | 0.35% | 0.00% |
BORROWINGS (SC) (Details)
BORROWINGS (SC) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Balance | $ 149,800 | $ 117,500 |
SC | ||
Debt Instrument [Line Items] | ||
Balance | 38,099,073 | 36,652,463 |
Restricted Cash Pledged | $ 1,895,111 | $ 1,700,697 |
SC | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Rate | 0.88% | 0.88% |
SC | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Rate | 2.81% | 2.81% |
SC | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Balance | $ 10,864,269 | $ 9,202,779 |
Effective Rate | 1.89% | 1.81% |
Assets Pledged | $ 9,662,205 | $ 8,063,878 |
Restricted Cash Pledged | 254,734 | 178,847 |
SC | Revolving Credit Facility | Warehouse line, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 898,785 | $ 808,135 |
Effective Rate | 1.65% | 1.29% |
Assets Pledged | $ 1,268,593 | $ 1,137,257 |
Restricted Cash Pledged | 33,876 | 24,942 |
SC | Revolving Credit Facility | Warehouse line, due June 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 328,484 | $ 378,301 |
Effective Rate | 1.53% | 1.48% |
Assets Pledged | $ 470,935 | $ 535,737 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility | Warehouse line, due November 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 175,000 | $ 175,000 |
Effective Rate | 1.99% | 1.90% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility | Warehouse line, due November 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 250,000 | $ 250,000 |
Effective Rate | 1.99% | 1.90% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 2,502 | 2,501 |
SC | Revolving Credit Facility | Warehouse line, due July 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,136,620 | $ 682,720 |
Effective Rate | 1.26% | 1.35% |
Assets Pledged | $ 1,327,405 | $ 809,185 |
Restricted Cash Pledged | 39,890 | 20,852 |
SC | Revolving Credit Facility | Warehouse line, due July 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 2,151,543 | $ 2,247,443 |
Effective Rate | 1.37% | 1.41% |
Assets Pledged | $ 3,301,792 | $ 3,412,321 |
Restricted Cash Pledged | 59,169 | 48,589 |
SC | Revolving Credit Facility | Warehouse line, due September 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 565,399 | |
Effective Rate | 1.20% | |
Assets Pledged | $ 824,327 | |
Restricted Cash Pledged | 15,759 | |
SC | Revolving Credit Facility | Warehouse line, due December 2017 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,342,277 | $ 944,877 |
Effective Rate | 1.59% | 1.56% |
Assets Pledged | $ 1,903,553 | $ 1,345,051 |
Restricted Cash Pledged | 45,797 | 32,038 |
SC | Revolving Credit Facility | Warehouse line, due January 2018 | ||
Debt Instrument [Line Items] | ||
Balance | $ 73,000 | |
Effective Rate | 3.13% | |
Assets Pledged | $ 102,309 | |
Restricted Cash Pledged | 0 | |
SC | Revolving Credit Facility | Warehouse line, due March 2018(5) | ||
Debt Instrument [Line Items] | ||
Balance | $ 886,199 | |
Effective Rate | 1.26% | |
Assets Pledged | $ 1,287,618 | |
Restricted Cash Pledged | 28,733 | |
SC | Revolving Credit Facility | Repurchase facility, due December 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,147,361 | $ 850,904 |
Effective Rate | 2.51% | 2.07% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | $ 44,767 | 34,166 |
SC | Revolving Credit Facility | Repurchase facility, due December 2016 | Minimum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 30 days | |
SC | Revolving Credit Facility | Repurchase facility, due December 2016 | Maximum | ||
Debt Instrument [Line Items] | ||
Facility rolling maturity period | 90 days | |
SC | Revolving Credit Facility | Line of credit with related party, due December 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 500,000 | $ 500,000 |
Effective Rate | 2.74% | 2.65% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility | Line of credit with related party, due December 2016 | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,000,000 | $ 1,000,000 |
Effective Rate | 2.70% | 2.61% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility | Line of credit with related party, due December 2018 | ||
Debt Instrument [Line Items] | ||
Balance | $ 975,000 | $ 800,000 |
Effective Rate | 2.94% | 2.84% |
Assets Pledged | $ 0 | $ 0 |
Restricted Cash Pledged | 0 | 0 |
SC | Revolving Credit Facility | Line of credit with related party | ||
Debt Instrument [Line Items] | ||
Unsecured debt | $ 1,600,000 | $ 1,400,000 |
BORROWINGS (Secured Structured
BORROWINGS (Secured Structured Financings) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Initial Note Amounts Issued | $ 149,800 | $ 117,500 |
SC | ||
Debt Instrument [Line Items] | ||
Balance | 20,355,909 | 20,893,204 |
Initial Note Amounts Issued | 38,099,073 | 36,652,463 |
Collateral | 27,481,425 | 27,751,419 |
Restricted Cash | $ 1,895,111 | $ 1,700,697 |
SC | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.88% | 0.88% |
SC | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 2.81% | 2.81% |
SC | SC public securitizations, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 12,565,678 | $ 12,679,987 |
Initial Note Amounts Issued | 26,563,082 | 24,923,292 |
Collateral | 16,452,180 | 16,256,067 |
Restricted Cash | $ 1,396,275 | $ 1,242,857 |
SC | SC public securitizations, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.89% | 0.89% |
SC | SC public securitizations, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 2.44% | 2.29% |
SC | SC privately issued amortizing notes, maturing on various dates | ||
Debt Instrument [Line Items] | ||
Balance | $ 7,790,231 | $ 8,213,217 |
Initial Note Amounts Issued | 11,535,991 | 11,729,171 |
Collateral | 11,029,245 | 11,495,352 |
Restricted Cash | $ 498,836 | $ 457,840 |
SC | SC privately issued amortizing notes, maturing on various dates | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 0.88% | 0.88% |
SC | SC privately issued amortizing notes, maturing on various dates | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate Range | 2.81% | 2.81% |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Credit Risk Contingent Features | ||
Fair value of derivatives with credit risk contingent feature associated with credit ratings | $ 1,000,000 | |
Fair value of derivatives with credit risk contingent features | 126,300,000 | $ 128,100,000 |
Collateral posted | 127,600,000 | $ 128,800,000 |
Cash Flow Hedges | ||
Cash flow hedge gain (loss) to be reclassified within next twelve months | 0 | |
One notch downgrade | ||
Credit Risk Contingent Features | ||
Additional collateral required (up to) | 2,781,000 | |
Two notch downgrade | ||
Credit Risk Contingent Features | ||
Additional collateral required (up to) | $ 3,229,000 |
DERIVATIVES (Derivatives Design
DERIVATIVES (Derivatives Designated in Hedge Relationships) (Details) - Designated as hedging instrument - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Notional Amount | $ 12,277,299 | $ 11,364,821 |
Asset, Total | 993 | 11,037 |
Liability, Total | $ 101,823 | $ 25,145 |
Weighted Average Receive Rate | 0.49% | 0.35% |
Weighted Average Pay Rate | 1.15% | 1.17% |
Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 2 years 11 months 5 days | 3 years 2 days |
Fair value hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 16,390 | |
Asset, Cross-currency swaps | 3,695 | |
Liability, Cross-currency swaps | $ 92 | |
Weighted Average Receive Rate | 4.76% | |
Weighted Average Pay Rate | 4.75% | |
Fair value hedges | Cross-currency swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 1 month 8 days | |
Fair value hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 351,000 | $ 318,000 |
Asset, Interest rate swaps | 804 | 47 |
Liability, Interest rate swaps | $ 7,247 | $ 2,006 |
Weighted Average Receive Rate | 1.38% | 1.07% |
Weighted Average Pay Rate | 2.22% | 2.31% |
Fair value hedges | Interest rate swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 3 years 2 months 20 days | 3 years 6 months |
Cash flow hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 11,926,299 | $ 11,030,431 |
Asset, Pay fixed — receive floating interest rate swaps | 189 | 7,295 |
Liability, Pay fixed — receive floating interest rate swaps | $ 94,576 | $ 23,047 |
Weighted Average Receive Rate | 0.46% | 0.32% |
Weighted Average Pay Rate | 1.12% | 1.13% |
Cash flow hedges | Interest rate swaps | Weighted Average | ||
Derivative [Line Items] | ||
Weighted Average Life (Years) | 2 years 11 months | 3 years |
DERIVATIVES (Other Derivatives)
DERIVATIVES (Other Derivatives) (Details) - Not designated as hedging instrument - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | $ 47,838,944 | $ 49,632,543 |
Asset derivatives Fair value | 487,521 | 354,293 |
Liability derivatives Fair value | 493,741 | 372,728 |
Other | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 1,009,210 | 899,394 |
Asset derivatives Fair value | 16,565 | 11,146 |
Liability derivatives Fair value | 19,423 | 14,553 |
Foreign exchange contracts | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 2,619,226 | 2,513,305 |
Asset derivatives Fair value | 33,604 | 30,262 |
Liability derivatives Fair value | 33,263 | 30,144 |
Interest rate swap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 1,984,000 | 2,399,000 |
Asset derivatives Fair value | 0 | 1,176 |
Liability derivatives Fair value | 6,580 | 2,481 |
Interest rate cap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 9,159,361 | 10,013,912 |
Asset derivatives Fair value | 13,716 | 32,950 |
Liability derivatives Fair value | 0 | 0 |
Options for interest rate cap agreements | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 9,159,361 | 10,013,912 |
Asset derivatives Fair value | 0 | 0 |
Liability derivatives Fair value | 13,785 | 32,977 |
Total return settlement | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 1,404,726 | 1,404,726 |
Asset derivatives Fair value | 0 | 0 |
Liability derivatives Fair value | 53,793 | 53,432 |
Mortgage banking derivatives | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 1,290,842 | 1,019,448 |
Asset derivatives Fair value | 21,908 | 3,761 |
Liability derivatives Fair value | 6,040 | 3,502 |
Mortgage banking derivatives | Forward commitments to sell loans | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 506,374 | 396,518 |
Asset derivatives Fair value | 0 | 542 |
Liability derivatives Fair value | 3,371 | 0 |
Mortgage banking derivatives | Interest rate lock commitments | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 349,468 | 187,930 |
Asset derivatives Fair value | 6,992 | 2,540 |
Liability derivatives Fair value | 0 | 0 |
Mortgage banking derivatives | Mortgage servicing | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 435,000 | 435,000 |
Asset derivatives Fair value | 14,916 | 679 |
Liability derivatives Fair value | 2,669 | 3,502 |
Customer related derivatives | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 21,212,218 | 21,368,846 |
Asset derivatives Fair value | 401,728 | 274,998 |
Liability derivatives Fair value | 360,857 | 235,639 |
Customer related derivatives | Swaps receive fixed | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 9,067,978 | 9,060,134 |
Asset derivatives Fair value | 351,336 | 205,397 |
Liability derivatives Fair value | 114 | 6,023 |
Customer related derivatives | Swaps pay fixed | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 9,291,483 | 9,273,627 |
Asset derivatives Fair value | 316 | 16,183 |
Liability derivatives Fair value | 311,595 | 177,114 |
Customer related derivatives | Other | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Notional | 2,852,757 | 3,035,085 |
Asset derivatives Fair value | 50,076 | 53,418 |
Liability derivatives Fair value | $ 49,148 | $ 52,502 |
DERIVATIVES (Income Statement E
DERIVATIVES (Income Statement Effect) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cross-currency swaps | Miscellaneous income | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | $ 174 | $ (36) |
Interest rate swaps | Miscellaneous income | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | (4,484) | (2,993) |
Interest rate swaps | Net interest income | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | (2,663) | (4,451) |
Forward commitments to sell loans | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | (3,912) | (187) |
Interest rate lock commitments | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | 4,452 | 3,937 |
Mortgage servicing | Mortgage banking income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | 15,070 | (1,219) |
Customer related derivatives | Miscellaneous income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | 1,510 | 418 |
Foreign exchange | Miscellaneous income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | 223 | (874) |
SC non-hedging derivatives | Miscellaneous income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | (5,499) | (2,397) |
SC non-hedging derivatives | Net interest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | 15,139 | 18,044 |
SC non-hedging derivatives | Other administrative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | (1,316) | (11,955) |
Other | Miscellaneous income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on all derivatives | $ (1,131) | $ (1,445) |
DERIVATIVES (Offsetting of Fina
DERIVATIVES (Offsetting of Financial Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | $ 481,522 | $ 362,798 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 6,781 | 10,161 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 474,741 | 352,637 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 8,024 | 8,008 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 2,786 | 16,424 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 463,931 | 328,205 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 6,992 | 2,532 |
Gross Amounts of Recognized Assets, Total Derivative Assets | 488,514 | 365,330 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet, Total Derivative Assets | 481,733 | 355,169 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Net Amount, Total Derivative Assets | 470,923 | 330,737 |
Gross Amounts of Recognized Assets, Total Financial Assets | 488,514 | 365,330 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Financial Assets | 6,781 | 10,161 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet, Total Financial Assets | 481,733 | 355,169 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments, Total Financial Assets | 8,024 | 8,008 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received, Total Financial Assets | 2,786 | 16,424 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Net Amount, Total Financial Assets | 470,923 | 330,737 |
Other derivative activities | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 480,529 | 351,761 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 6,781 | 10,161 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 473,748 | 341,600 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments | 8,024 | 8,008 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Received | 2,786 | 16,424 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 462,938 | 317,168 |
Fair value hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 804 | 3,742 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 804 | 3,742 |
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 | 804 | 3,742 |
Cash flow hedges | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 189 | 7,295 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | 189 | 7,295 |
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 | $ 189 | $ 7,295 |
DERIVATIVES (Offsetting of Fi86
DERIVATIVES (Offsetting of Financial Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 541,091 | $ 344,441 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 96,925 | 77,734 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 444,166 | 266,707 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 3,165 | 4,352 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 387,943 | 258,295 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 53,058 | 4,060 |
Gross Amounts of Recognized Liabilities, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 54,473 | 53,432 |
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 | 54,473 | 53,432 |
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 | 0 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Derivatives Not Subject to a Master Netting Arrangement or Similar Arrangement | 54,473 | 53,432 |
Gross Amounts of Recognized Liabilities, Total Derivative Liabilities | 595,564 | 397,873 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Derivative Liabilities | 96,925 | 77,734 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet, Total Derivative Liabilities | 498,639 | 320,139 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 387,943 | 258,295 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Derivatives Liabilities | 107,531 | 57,492 |
Gross Amounts of Recognized Liabilities, Total Financial Liabilities | 595,564 | 397,873 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet, Total Financial Liabilities | 96,925 | 77,734 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet, Total Financial Liabilities | 498,639 | 320,139 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Financial Instruments, Total Financial Liabilities | 3,165 | 4,352 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet - Cash Collateral Pledged, Total Financial Liabilities | 387,943 | 258,295 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total Financial Liabilities | 107,531 | 57,492 |
Other derivative activities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 439,268 | 319,296 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 96,925 | 77,734 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 342,343 | 241,562 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 3,054 | 4,265 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 271,819 | 208,305 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | 67,470 | 28,992 |
Fair value hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 7,247 | 2,098 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 7,247 | 2,098 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Financial Instruments | 111 | 87 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged | 11,732 | 10,602 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | (4,596) | (8,591) |
Cash flow hedges | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 94,576 | 23,047 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet | 94,576 | 23,047 |
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 Pledged | 104,392 | 39,388 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount | $ (9,816) | $ (16,341) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 60 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2009USD ($)transaction | Dec. 31, 2007USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 65,396 | $ 36,909 | ||
Effective tax rate | 43.50% | 22.50% | ||
Discrete income tax provision (benefit) | $ 3,100 | $ (22,000) | ||
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 | |||
Reasonably possible decrease in reserve for uncertain tax positions | 230,100 | |||
Reasonably possible increase in reserve for uncertain tax positions | $ 201,900 |
ACCUMULATED OTHER COMPREHENSI88
ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | $ 112,962 | $ 51,490 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 17,136,805 | |
Net Activity | 112,962 | 51,490 |
Ending Balance | 17,247,179 | |
Net unrealized (losses)/gains on cash flow hedge derivative financial instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss), pretax activity | (64,195) | (29,009) |
Other comprehensive income/(loss), tax effect | (30,260) | (11,154) |
Other comprehensive income/(loss), net activity | (33,935) | (17,855) |
Reclassification adjustment, pretax activity | (2,663) | (4,451) |
Reclassification adjustment, tax effect | (1,255) | (1,711) |
Reclassification adjustment, net activity | (1,408) | (2,740) |
Total other comprehensive income/(loss), pretax activity | (61,532) | (24,558) |
Total other comprehensive income/(loss), tax effect | 29,005 | 9,443 |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | (32,527) | (15,115) |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (16,582) | (14,260) |
Net Activity | (32,527) | (15,115) |
Ending Balance | (49,109) | (29,375) |
Net unrealized gains/(losses) on investment securities available-for-sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income/(loss), pretax activity | 265,175 | 117,781 |
Other comprehensive income/(loss), tax effect | 104,213 | 45,964 |
Other comprehensive income/(loss), net activity | 160,962 | 71,817 |
Reclassification adjustment, pretax activity | 26,421 | 9,557 |
Reclassification adjustment, tax effect | 10,383 | 3,730 |
Reclassification adjustment, net activity | 16,038 | 5,827 |
Total other comprehensive income/(loss), pretax activity | 238,754 | 108,224 |
Total other comprehensive income/(loss), tax effect | (93,830) | (42,234) |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | 144,924 | 65,990 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (96,026) | (52,515) |
Net Activity | 144,924 | 65,990 |
Ending Balance | 48,898 | 13,475 |
Reclassification adjustment for net(gains)/losses included in net income on non-OTTI securities (2) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, pretax activity | 26,431 | |
Reclassification adjustment, tax effect | 10,387 | |
Reclassification adjustment, net activity | 16,044 | |
Reclassification adjustment for net losses/(gains) included in net income on OTTI securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, pretax activity | 10 | |
Reclassification adjustment, tax effect | 4 | |
Reclassification adjustment, net activity | 6 | |
Pension and post-retirement actuarial gain/(loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income/(loss), pretax activity | 929 | 1,018 |
Total other comprehensive income/(loss), tax effect | (364) | (403) |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | 565 | 615 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (27,033) | (29,635) |
Net Activity | 565 | 615 |
Ending Balance | (26,468) | (29,020) |
Accumulated Other Comprehensive (Loss)/Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income/(loss), pretax activity | 178,151 | 84,684 |
Total other comprehensive income/(loss), tax effect | (65,189) | (33,194) |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAX | 112,962 | 51,490 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (139,641) | (96,410) |
Net Activity | 112,962 | 51,490 |
Ending Balance | $ (26,679) | $ (44,920) |
COMMITMENTS, CONTINGENCIES AN89
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Other Commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Total commitments | $ 30,250,606 | $ 33,339,299 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Other commitments | 28,277,773 | 31,379,039 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Other commitments | 1,846,310 | 1,832,884 |
Letters of credit | 1,846,310 | 1,832,884 |
Recourse exposure on sold loans | ||
Other Commitments [Line Items] | ||
Other commitments | 73,286 | 70,394 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Other commitments | $ 53,237 | $ 56,982 |
COMMITMENTS, CONTINGENCIES AN90
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Commitments to Extend Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 07, 2016 | Dec. 31, 2015 | |
Other Commitments [Line Items] | |||
Financing receivable, net | $ 83,637,583 | $ 82,557,074 | |
Commitments to extend credit | |||
Other Commitments [Line Items] | |||
1 year or less | $ 5,746,695 | 6,451,239 | |
Commitment period | 5 years | ||
Over 1 year to 3 years | $ 4,981,342 | 5,250,512 | |
Over 3 years to 5 years | 9,920,170 | 12,136,625 | |
Over 5 years | 7,629,566 | 7,540,663 | |
Total | 28,277,773 | $ 31,379,039 | |
Commitments to extend credit | Unfunded Loan Commitment | Affiliated Entity | Transfer of Unfunded Commitment to Extend Credit | |||
Other Commitments [Line Items] | |||
Financing receivable, net | 2,300,000 | ||
Loss on sale of unfunded commitments to extend credit | $ 6,300 | ||
Subsequent Event | Commitments to extend credit | Unfunded Loan Commitment | Affiliated Entity | Transfer of Unfunded Commitment to Extend Credit | |||
Other Commitments [Line Items] | |||
Financing receivable, net | $ 1,300,000 |
COMMITMENTS, CONTINGENCIES AN91
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Letters of Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Other Commitments [Line Items] | ||||
Reserve for unfunded lending commitments | $ 172,008 | $ 147,397 | $ 127,641 | $ 132,641 |
Lines of credit outstanding | $ 149,800 | 117,500 | ||
Letters of credit | ||||
Other Commitments [Line Items] | ||||
Commitments, weighted average term | 15 months | |||
Reserve for unfunded lending commitments | $ 22,200 | 29,900 | ||
1 year or less | 1,215,499 | 1,230,424 | ||
Over 1 year to 3 years | 522,750 | 308,634 | ||
Over 3 years to 5 years | 52,816 | 268,946 | ||
Over 5 years | 55,245 | 24,880 | ||
Total | $ 1,846,310 | $ 1,832,884 |
COMMITMENTS, CONTINGENCIES AN92
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Loans Sold with Recourse and Commitments to Sell Loans) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Recourse exposure on sold loans | ||
Other Commitments [Line Items] | ||
Retained credit risk, multifamily servicing | $ 6.4 | $ 6.8 |
Recourse exposure on sold loans | FNMA | Multifamily loans | ||
Other Commitments [Line Items] | ||
Loans sold with recourse, portion of first credit loss position retained, percent | 100.00% | |
Value of underlying collateral | $ 34.4 | 34.4 |
Commitments to sell loans | ||
Other Commitments [Line Items] | ||
Forward contracts maturity period (less than) | 1 year | |
Multifamily loans | Recourse exposure on sold loans | FNMA | ||
Other Commitments [Line Items] | ||
Loans sold with recourse, unpaid principal balance | $ 543.7 | $ 552.1 |
COMMITMENTS, CONTINGENCIES AN93
COMMITMENTS, CONTINGENCIES AND GUARANTEES (SC Commitments and SC Matters) (Details) - USD ($) | Nov. 04, 2015 | Oct. 01, 2015 | Feb. 25, 2015 | Mar. 31, 2016 | Feb. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Aug. 01, 2015 | Jul. 31, 2015 |
Long-term Purchase Commitment [Line Items] | |||||||||
Financing receivable, net | $ 83,637,583,000 | $ 82,557,074,000 | |||||||
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 | ||||||||
Minimum sales commitment, charged off loan receivables | $ 350,000,000 | ||||||||
Threshold for sales subject to market price check (over) | 275,000,000 | ||||||||
Minimum sales commitment, loans receivable, written off, remaining | 195,700,000 | 200,700,000 | |||||||
Guarantees, fair value | $ 1,900,000 | 2,900,000 | |||||||
Maximum | CBP | |||||||||
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 | ||||||||
Forward commitments to sell loans | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Payment obligation | $ 53,237,000 | 56,982,000 | |||||||
Forward commitments to sell loans | Obligation to repurchase receivables sold | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Total commitments | 11,600,000 | 12,500,000 | |||||||
Forward commitments to sell loans | Maximum | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Total commitments | $ 300,000,000 | ||||||||
Loan purchase commitments | Minimum | CBP | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Loan purchase commitment amount (lesser of) | $ 50,000,000 | $ 250,000,000 | |||||||
Loan purchase commitments | Maximum | CBP | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Loan purchase commitment amount (lesser of) | $ 200,000,000 | $ 600,000,000 | |||||||
Personal unsecured loans | Consumer | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Financing receivable, net | 1,672,148,000 | 2,639,881,000 | |||||||
Personal unsecured loans | Consumer | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Loans receivable held-for-sale | $ 869,300,000 | ||||||||
FCA | Revenue Sharing Payments and Gain-Sharing Payments to FCA | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Payment obligation | 10,700,000 | 12,100,000 | |||||||
Bank of America | Servicer Performance Payment | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Payment obligation | 8,000,000 | 6,300,000 | |||||||
CBP | Loss Sharing Payment | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Payment obligation | 3,400,000 | $ 3,400,000 | |||||||
Assurance of Discontinuance | Unfavorable Regulatory Action | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Damages sought | $ 150,000 | ||||||||
Violation of Service Members Civil Relief Act | Civil Fine | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Damages sought | $ 55,000 | ||||||||
Violation of Service Members Civil Relief Act | Lost Equity for Each Repossession | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Damages sought | 10,000 | ||||||||
Violation of Service Members Civil Relief Act | Sought to Collect Repossession-related Fees | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Damages sought | 5,000 | ||||||||
Violation of Service Members Civil Relief Act | Minimum | Civil Fine to Affected Service Members | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Damages sought | $ 9,400,000 | ||||||||
Separation Agreement | Former CEO of SC | SC | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Employee Benefits and Sharebased Compensation Contingent Liability | $ 115,100,000 |
COMMITMENTS, CONTINGENCIES AN94
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Litigation) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Range of possible loss in excess of accrued liability (up to) | $ 12 |
COMMITMENTS, CONTINGENCIES AN95
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Other Regulatory and Governmental Matters) (Details) $ in Millions | Feb. 08, 2016USD ($) | Mar. 26, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Jun. 16, 2015actionable_item |
Loss Contingencies [Line Items] | |||||
Pending gain (loss) related to litigation settlement | $ 5.2 | ||||
Foreclosure matters | |||||
Loss Contingencies [Line Items] | |||||
Number of actionable items | actionable_item | 9 | ||||
Remediation fund amount | 6.2 | ||||
Principal engaging in mortgage modifications | $ 9.9 | ||||
Identity theft protection product matter | |||||
Loss Contingencies [Line Items] | |||||
Identity theft protection payments returned to customers | $ 3.4 | $ 6 | $ 37.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Oct. 15, 2015 | Jul. 02, 2015 | Jul. 16, 2014 | |
Related Party Transaction [Line Items] | |||||
Financing receivable, net | $ 83,637,583,000 | $ 82,557,074,000 | |||
Commitments to extend credit | Unfunded Loan Commitment | Affiliated Entity | Transfer of Unfunded Commitment to Extend Credit | |||||
Related Party Transaction [Line Items] | |||||
Financing receivable, net | 2,300,000,000 | ||||
Loss on sale of unfunded commitments to extend credit | 6,300,000 | ||||
DDFS LLC | Affiliated Entity | Call Transaction | |||||
Related Party Transaction [Line Items] | |||||
Proceeds payable upon consummation of transaction | $ 928,300,000 | ||||
SC | DDFS LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 9.70% | ||||
SC | Affiliated Entity | DDFS LLC | |||||
Related Party Transaction [Line Items] | |||||
Call transaction, basis spread on variable rate | 1.00% | ||||
SC | DDFS LLC | Shareholders Agreement | |||||
Related Party Transaction [Line Items] | |||||
Average share price (USD per share) | $ 26.83 | ||||
Settlement price (USD per share) | $ 26.83 | ||||
SC | DDFS LLC | Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Common stock pledged as collateral (shares) | 29,598,506 | ||||
Line of Credit | SC | Revolving Credit Facility | DDFS LLC | Loan Agreement | |||||
Related Party Transaction [Line Items] | |||||
Maximum borrowing capacity | $ 300,000,000 | ||||
Outstanding debt | $ 290,000,000 | $ 290,000,000 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 21,646,647 | $ 21,918,986 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 19,582,671 | 20,080,308 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 2,063,976 | $ 1,838,678 |
Percentage of level 3 assets to total assets held at fair value | 9.50% | |
Percentage of level 3 assets to total assets | 1.60% |
FAIR VALUE (Fair Value Measurem
FAIR VALUE (Fair Value Measurements, Recurring) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Available-for-sale investment securities | $ 20,533,116 | $ 20,851,495 |
Retail installment contracts held-for-investment | 285,800 | 328,700 |
Derivatives | 481,733 | 355,169 |
Financial liabilities: | ||
Derivatives | 498,639 | 320,139 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 349,742 | 3,188,388 |
Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,429,590 | 1,475,574 |
Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 2,046,579 | 1,769,510 |
State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 21,627 | 767,880 |
Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 10,687 | 10,487 |
Recurring | ||
Financial assets: | ||
Available-for-sale investment securities | 20,522,429 | 20,841,008 |
Retail installment contracts held-for-investment | 285,811 | 328,655 |
Loans held-for-sale | 219,151 | 236,760 |
Mortgage servicing rights | 130,742 | 147,233 |
Total financial assets | 21,646,647 | 21,918,986 |
Financial liabilities: | ||
Total financial liabilities | 595,564 | 397,873 |
Recurring | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 6,992 | 2,540 |
Recurring | Mortgage banking forward sell commitments | ||
Financial assets: | ||
Derivatives | 542 | |
Financial liabilities: | ||
Derivatives | 3,371 | |
Recurring | Customer related | ||
Financial assets: | ||
Derivatives | 401,728 | 274,998 |
Financial liabilities: | ||
Derivatives | 360,857 | 235,639 |
Recurring | Total return swap | ||
Financial liabilities: | ||
Derivatives | 282 | 282 |
Recurring | Foreign exchange | ||
Financial assets: | ||
Derivatives | 33,604 | 30,262 |
Financial liabilities: | ||
Derivatives | 33,263 | 30,144 |
Recurring | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 14,916 | 679 |
Financial liabilities: | ||
Derivatives | 2,669 | 3,502 |
Recurring | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 1,176 | |
Financial liabilities: | ||
Derivatives | 6,580 | 2,481 |
Recurring | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 13,716 | 32,950 |
Recurring | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 13,785 | 32,977 |
Recurring | Total return settlement | ||
Financial liabilities: | ||
Derivatives | 53,793 | 53,432 |
Recurring | Other | ||
Financial assets: | ||
Derivatives | 16,565 | 11,146 |
Financial liabilities: | ||
Derivatives | 19,141 | 14,271 |
Recurring | Fair value | ||
Financial assets: | ||
Derivatives | 804 | 3,742 |
Financial liabilities: | ||
Derivatives | 7,247 | 2,098 |
Recurring | Cash flow | ||
Financial assets: | ||
Derivatives | 189 | 7,295 |
Financial liabilities: | ||
Derivatives | 94,576 | 23,047 |
Recurring | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 349,742 | 3,188,388 |
Recurring | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,429,590 | 1,475,574 |
Recurring | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 2,046,579 | 1,769,510 |
Recurring | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 21,627 | 767,880 |
Recurring | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 16,674,891 | 13,639,656 |
Recurring | Equity securities | ||
Financial assets: | ||
Available-for-sale investment securities | 10,700 | 10,500 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Available-for-sale investment securities | 0 | 0 |
Retail installment contracts held-for-investment | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Total financial assets | 0 | 0 |
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 assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 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 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. 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) | 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 | 18,882,006 | 19,480,768 |
Retail installment contracts held-for-investment | 0 | 0 |
Loans held-for-sale | 219,151 | 236,760 |
Mortgage servicing rights | 0 | 0 |
Total financial assets | 19,582,671 | 20,080,308 |
Financial liabilities: | ||
Total financial liabilities | 541,341 | 344,037 |
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 assets: | ||
Derivatives | 542 | |
Financial liabilities: | ||
Derivatives | 3,371 | |
Recurring | Significant Other Observable Inputs (Level 2) | Customer related | ||
Financial assets: | ||
Derivatives | 401,728 | 274,998 |
Financial liabilities: | ||
Derivatives | 360,857 | 235,639 |
Recurring | Significant Other Observable Inputs (Level 2) | Total return swap | ||
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange | ||
Financial assets: | ||
Derivatives | 33,604 | 30,262 |
Financial liabilities: | ||
Derivatives | 33,263 | 30,144 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage servicing | ||
Financial assets: | ||
Derivatives | 14,916 | 679 |
Financial liabilities: | ||
Derivatives | 2,669 | 3,502 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Financial assets: | ||
Derivatives | 1,176 | |
Financial liabilities: | ||
Derivatives | 6,580 | 2,481 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate cap agreements | ||
Financial assets: | ||
Derivatives | 13,716 | 32,950 |
Recurring | Significant Other Observable Inputs (Level 2) | Option for interest rate cap | ||
Financial liabilities: | ||
Derivatives | 13,785 | 32,977 |
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 | 16,557 | 11,136 |
Financial liabilities: | ||
Derivatives | 18,993 | 14,149 |
Recurring | Significant Other Observable Inputs (Level 2) | Fair value | ||
Financial assets: | ||
Derivatives | 804 | 3,742 |
Financial liabilities: | ||
Derivatives | 7,247 | 2,098 |
Recurring | Significant Other Observable Inputs (Level 2) | Cash flow | ||
Financial assets: | ||
Derivatives | 189 | 7,295 |
Financial liabilities: | ||
Derivatives | 94,576 | 23,047 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale investment securities | 349,742 | 3,188,388 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt | ||
Financial assets: | ||
Available-for-sale investment securities | 1,429,590 | 1,475,574 |
Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 406,156 | 409,270 |
Recurring | Significant Other Observable Inputs (Level 2) | State and municipal securities | ||
Financial assets: | ||
Available-for-sale investment securities | 21,627 | 767,880 |
Recurring | Significant Other Observable Inputs (Level 2) | Mortgage backed securities | ||
Financial assets: | ||
Available-for-sale investment securities | 16,674,891 | 13,639,656 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Available-for-sale investment securities | 1,640,423 | 1,360,240 |
Retail installment contracts held-for-investment | 285,811 | 328,655 |
Loans held-for-sale | 0 | 0 |
Mortgage servicing rights | 130,742 | 147,233 |
Total financial assets | 2,063,976 | 1,838,678 |
Financial liabilities: | ||
Total financial liabilities | 54,223 | 53,836 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage banking interest rate lock commitments | ||
Financial assets: | ||
Derivatives | 6,992 | 2,540 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage banking forward sell commitments | ||
Financial assets: | ||
Derivatives | 0 | |
Financial liabilities: | ||
Derivatives | 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 | 53,793 | 53,432 |
Recurring | Significant Unobservable Inputs (Level 3) | Other | ||
Financial assets: | ||
Derivatives | 8 | 10 |
Financial liabilities: | ||
Derivatives | 148 | 122 |
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 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. 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 | 1,640,423 | 1,360,240 |
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 (Fair Value Measur99
FAIR VALUE (Fair Value Measurements, Non-recurring) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans held-for-investment | $ 285,800 | $ 328,700 | |
Total carrying value of the loans | 4,998,313 | 4,531,285 | |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 15,242 | 27,574 | |
Vehicle inventory | 251,926 | 204,120 | |
Loans held-for-sale | 978,819 | 2,040,813 | |
Goodwill | 1,019,960 | ||
Indefinite lived intangibles | 18,000 | ||
Fair value adjustment | (154,336) | $ (1,181) | |
Nonrecurring | Impaired loans held-for-investment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans held-for-investment | 320,187 | 123,118 | |
Total carrying value of the loans | 218,700 | 91,300 | |
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 | (88,311) | (570) | |
Nonrecurring | Foreclosed assets | Miscellaneous income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value adjustment | (1,812) | (611) | |
Nonrecurring | Loans held for sale | Miscellaneous income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value adjustment | (64,213) | $ 0 | |
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 | |
Vehicle inventory | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Goodwill | 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 | |
Nonrecurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 15,242 | 27,574 | |
Vehicle inventory | 251,926 | 204,120 | |
Loans held-for-sale | 0 | 0 | |
Goodwill | 0 | ||
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 | 279,069 | 122,792 | |
Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreclosed assets | 0 | 0 | |
Vehicle inventory | 0 | 0 | |
Loans held-for-sale | 978,819 | 2,040,813 | |
Goodwill | 1,019,960 | ||
Indefinite lived intangibles | 18,000 | ||
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 | $ 41,118 | $ 326 |
FAIR VALUE (Reconciliation of A
FAIR VALUE (Reconciliation of Assets and Liabilities Using Level 3 Inputs) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)factor | Mar. 31, 2015USD ($) | |
Retail Installment Contracts Held for Investment | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Unpaid principal balance on previously charged-off RIC portfolio | $ 3,000,000 | |
Retail Installment Contracts Held for Investment | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Number of primary factors driving gains | factor | 3 | |
Level 3 | Recurring | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 1,784,842 | $ 2,212,423 |
Gains in other comprehensive income | 1,585 | 4,779 |
Gains/(losses) in earnings | 15,403 | 71,373 |
Additions/Issuances | 282,277 | 257,499 |
Settlements | (74,354) | (272,959) |
Balance at end of period | 2,009,753 | 2,273,115 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 10,951 | 67,437 |
Level 3 | Recurring | Investments Available-for-Sale | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 1,360,240 | 1,267,643 |
Gains in other comprehensive income | 1,585 | 4,779 |
Gains/(losses) in earnings | 0 | 0 |
Additions/Issuances | 278,686 | 253,973 |
Settlements | (88) | (11,878) |
Balance at end of period | 1,640,423 | 1,514,517 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 0 | 0 |
Level 3 | Recurring | Retail Installment Contracts Held for Investment | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 328,655 | 845,911 |
Gains in other comprehensive income | 0 | 0 |
Gains/(losses) in earnings | 26,749 | 86,492 |
Additions/Issuances | 0 | 0 |
Settlements | (69,593) | (256,306) |
Balance at end of period | 285,811 | 676,097 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | 26,749 | 86,492 |
Level 3 | Recurring | MSRs | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 147,233 | 145,047 |
Gains in other comprehensive income | 0 | 0 |
Gains/(losses) in earnings | (14,356) | (6,990) |
Additions/Issuances | 3,591 | 3,526 |
Settlements | (5,726) | (6,131) |
Balance at end of period | 130,742 | 135,452 |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | (14,356) | (6,990) |
Level 3 | Recurring | Derivatives | ||
Fair Value, Assets, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | (51,286) | (46,178) |
Gains in other comprehensive income | 0 | 0 |
Gains/(losses) in earnings | 3,010 | (8,129) |
Additions/Issuances | 0 | 0 |
Settlements | 1,053 | 1,356 |
Balance at end of period | (47,223) | (52,951) |
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period | $ (1,442) | $ (12,065) |
FAIR VALUE (Sensitivity Analysi
FAIR VALUE (Sensitivity Analysis of Fair Value, Mortgage Servicing Rights) (Details) - MSRs $ in Millions | Mar. 31, 2016USD ($) |
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 | (10.3) |
Sensitivity analysis of fair value, impact of 10 percent adverse change in discount rate | (4.4) |
Sensitivity analysis of fair value, impact of 20 percent adverse change in discount rate | $ (8.5) |
FAIR VALUE (Quantitative Inform
FAIR VALUE (Quantitative Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Financial Assets: | ||
Available-for-sale at fair value | $ 20,533,116 | $ 20,851,495 |
Retail installment contracts held-for-investment | 285,800 | 328,700 |
Derivative assets at fair value | 481,733 | 355,169 |
Financial Liabilities | 498,639 | 320,139 |
Recurring | ||
Financial Assets: | ||
Available-for-sale at fair value | 20,522,429 | 20,841,008 |
Retail installment contracts held-for-investment | 285,811 | 328,655 |
Mortgage servicing rights | 130,742 | 147,233 |
Recurring | Mortgage banking interest rate lock commitments | ||
Financial Assets: | ||
Derivative assets at fair value | 6,992 | 2,540 |
Recurring | Total return settlement | ||
Financial Assets: | ||
Financial Liabilities | 53,793 | 53,432 |
Recurring | Level 3 | ||
Financial Assets: | ||
Available-for-sale at fair value | 1,640,423 | 1,360,240 |
Retail installment contracts held-for-investment | 285,811 | 328,655 |
Mortgage servicing rights | 130,742 | 147,233 |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | ||
Financial Assets: | ||
Derivative assets at fair value | 6,992 | 2,540 |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | ||
Financial Assets: | ||
Derivative assets at fair value | $ 6,992 | |
Unobservable Inputs | ||
Pull through percentage | 76.97% | |
Recurring | Level 3 | Mortgage banking interest rate lock commitments | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
MSR value | 0.73% | |
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 | 1.01% | |
Recurring | Level 3 | Total return settlement | ||
Financial Assets: | ||
Financial Liabilities | $ 53,793 | $ 53,432 |
Recurring | Level 3 | Total return settlement | Discounted Cash Flow | ||
Unobservable Inputs | ||
Discount Rate | 8.32% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | ||
Financial Assets: | ||
Available-for-sale at fair value | $ 1,589,828 | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Discount Rate | 0.92% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Discount Rate | 1.82% | |
Recurring | Level 3 | Financing bonds | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Discount Rate | 1.21% | |
Recurring | Level 3 | Sale-leaseback securities | Consensus Pricing | ||
Financial Assets: | ||
Available-for-sale at fair value | $ 50,595 | |
Unobservable Inputs | ||
Offered quotes | 128.84% | |
Recurring | Level 3 | Retail installment contracts held-for-investment | Discounted Cash Flow | ||
Financial Assets: | ||
Retail installment contracts held-for-investment | $ 285,811 | |
Unobservable Inputs | ||
Prepayment rate (CPR) | 9.50% | |
Recurring | Level 3 | Retail installment contracts held-for-investment | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Discount Rate | 9.50% | |
Recovery Rate | 25.00% | |
Recurring | Level 3 | Retail installment contracts held-for-investment | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Discount Rate | 14.50% | |
Recovery Rate | 43.00% | |
Recurring | Level 3 | Retail installment contracts held-for-investment | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Discount Rate | 10.50% | |
Recovery Rate | 29.50% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | ||
Financial Assets: | ||
Mortgage servicing rights | $ 130,742 | |
Unobservable Inputs | ||
Discount Rate | 9.90% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Minimum | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 0.20% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Maximum | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 29.51% | |
Recurring | Level 3 | Mortgage servicing rights | Discounted Cash Flow | Weighted Average | ||
Unobservable Inputs | ||
Prepayment rate (CPR) | 11.33% |
FAIR VALUE (Fair Value of Finan
FAIR VALUE (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial assets: | |||
Available-for-sale investment securities | $ 20,533,116 | $ 20,851,495 | |
Loans held-for-investment, net | 77,613,639 | 76,213,081 | |
Derivatives | 481,733 | 355,169 | |
Financial liabilities: | |||
Derivatives | 498,639 | 320,139 | |
Restricted cash | [1] | 2,923,603 | 2,429,729 |
Carrying Value | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 6,603,448 | 4,992,042 | |
Available-for-sale investment securities | 20,522,429 | 20,841,008 | |
Loans held-for-investment, net | 77,613,639 | 76,213,081 | |
Loans held-for-sale | 2,543,341 | 3,183,282 | |
Restricted cash | 2,923,603 | 2,429,729 | |
Mortgage servicing rights | 130,742 | 147,233 | |
Derivatives | 488,514 | 365,330 | |
Financial liabilities: | |||
Deposits | 57,464,250 | 56,114,232 | |
Borrowings and other debt obligations | 50,756,501 | 49,086,103 | |
Derivatives | 595,564 | 397,873 | |
Fair Value | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 6,603,448 | 4,992,042 | |
Available-for-sale investment securities | 20,522,429 | 20,841,008 | |
Loans held-for-investment, net | 78,677,855 | 76,290,862 | |
Loans held-for-sale | 2,554,038 | 3,195,513 | |
Restricted cash | 2,923,603 | 2,429,729 | |
Mortgage servicing rights | 130,742 | 147,233 | |
Derivatives | 488,514 | 365,330 | |
Financial liabilities: | |||
Deposits | 57,484,122 | 56,121,954 | |
Borrowings and other debt obligations | 51,106,200 | 49,320,778 | |
Derivatives | 595,564 | 397,873 | |
Fair Value | Level 1 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 6,603,448 | 4,992,042 | |
Available-for-sale investment securities | 0 | 0 | |
Loans held-for-investment, net | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Restricted cash | 2,923,603 | 2,429,729 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 0 | 0 | |
Financial liabilities: | |||
Deposits | 47,989,406 | 47,601,229 | |
Borrowings and other debt obligations | 0 | 0 | |
Derivatives | 0 | 0 | |
Fair Value | Level 2 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 0 | 0 | |
Available-for-sale investment securities | 18,882,006 | 19,480,768 | |
Loans held-for-investment, net | 279,069 | 122,792 | |
Loans held-for-sale | 219,151 | 236,760 | |
Restricted cash | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 481,514 | 362,780 | |
Financial liabilities: | |||
Deposits | 9,494,716 | 8,520,725 | |
Borrowings and other debt obligations | 40,241,931 | 40,117,999 | |
Derivatives | 541,341 | 344,037 | |
Fair Value | Level 3 | |||
Financial assets: | |||
Cash and amounts due from depository institutions | 0 | 0 | |
Available-for-sale investment securities | 1,640,423 | 1,360,240 | |
Loans held-for-investment, net | 78,398,786 | 76,168,070 | |
Loans held-for-sale | 2,334,887 | 2,958,753 | |
Restricted cash | 0 | 0 | |
Mortgage servicing rights | 130,742 | 147,233 | |
Derivatives | 7,000 | 2,550 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Borrowings and other debt obligations | 10,864,269 | 9,202,779 | |
Derivatives | $ 54,223 | $ 53,836 | |
[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 6 to these Condensed Consolidated Financial Statements for additional information. |
FAIR VALUE (Fair Value Option f
FAIR VALUE (Fair Value Option for Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 28, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Residential mortgages | MSRs | |||||
Difference | |||||
Mortgage servicing rights | $ 130,700 | ||||
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 | $ 219,151 | ||||
Nonaccrual loans | 0 | ||||
Aggregate Unpaid Principal Balance | |||||
Loans held-for-sale | 213,250 | ||||
Nonaccrual loans | 0 | ||||
Difference | |||||
Loans held-for-sale | 5,901 | ||||
Nonaccrual loans | 0 | ||||
Retail installment contracts held-for-investment | |||||
Fair Value | |||||
Retail installment contracts held-for-investment | 285,811 | ||||
Nonaccrual loans | 23,832 | ||||
Aggregate Unpaid Principal Balance | |||||
Retail installment contracts held-for-investment | 367,312 | ||||
Nonaccrual loans | 38,415 | ||||
Difference | |||||
Retail installment contracts held-for-investment | (81,501) | ||||
Nonaccrual loans | $ (14,583) | ||||
SC | 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 | ||||
Residential mortgages | |||||
Difference | |||||
Mortgage servicing rights | $ 130,742 | $ 135,452 | $ 147,233 | $ 145,047 | |
Change in fair value due to valuation assumptions | $ (14,400) | $ (7,000) |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) - USD ($) | May 01, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||||
Net interest income | $ 1,616,052,000 | $ 1,623,057,000 | ||
Total non-interest income | 597,701,000 | 586,503,000 | ||
Provision/(release) for credit losses | 882,278,000 | 1,053,639,000 | ||
Total expenses | 1,181,027,000 | 992,171,000 | ||
Income/(loss) before income taxes | 150,448,000 | 163,750,000 | ||
Intersegment (expense)/revenue | 0 | 0 | ||
Total assets | 131,024,627,000 | 123,416,531,000 | $ 127,571,282,000 | |
Global Corporate Banking | ||||
Segment Reporting Information [Line Items] | ||||
Minimum annual revenue to service corporations | 500,000,000 | |||
Operating Segments | Consumer and Business Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 218,389,000 | 204,714,000 | ||
Total non-interest income | 174,165,000 | 156,268,000 | ||
Provision/(release) for credit losses | (6,504,000) | 697,000 | ||
Total expenses | 403,065,000 | 420,991,000 | ||
Income/(loss) before income taxes | (4,007,000) | (60,706,000) | ||
Intersegment (expense)/revenue | 548,000 | 363,000 | ||
Total assets | 21,293,161,000 | 22,394,925,000 | ||
Operating Segments | Commercial Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 77,183,000 | 64,238,000 | ||
Total non-interest income | 12,602,000 | 11,658,000 | ||
Provision/(release) for credit losses | 61,661,000 | 1,614,000 | ||
Total expenses | 44,595,000 | 44,593,000 | ||
Income/(loss) before income taxes | (16,471,000) | 29,689,000 | ||
Intersegment (expense)/revenue | 990,000 | 976,000 | ||
Total assets | 11,734,670,000 | 15,497,925,000 | ||
Operating Segments | Commercial Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 64,757,000 | 65,320,000 | ||
Total non-interest income | 2,062,000 | 7,835,000 | ||
Provision/(release) for credit losses | 12,680,000 | 10,838,000 | ||
Total expenses | 19,599,000 | 17,673,000 | ||
Income/(loss) before income taxes | 34,540,000 | 44,644,000 | ||
Intersegment (expense)/revenue | 500,000 | 359,000 | ||
Total assets | 15,552,072,000 | 14,037,580,000 | ||
Operating Segments | Global Corporate Banking | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 60,317,000 | 49,090,000 | ||
Total non-interest income | 17,267,000 | 15,971,000 | ||
Provision/(release) for credit losses | 47,795,000 | 2,751,000 | ||
Total expenses | 34,952,000 | 24,974,000 | ||
Income/(loss) before income taxes | (5,163,000) | 37,336,000 | ||
Intersegment (expense)/revenue | (2,109,000) | (2,325,000) | ||
Total assets | 12,555,445,000 | 11,763,672,000 | ||
Operating Segments | SC | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 1,163,578,000 | 1,109,958,000 | ||
Total non-interest income | 353,191,000 | 327,479,000 | ||
Provision/(release) for credit losses | 660,170,000 | 631,847,000 | ||
Total expenses | 527,657,000 | 440,322,000 | ||
Income/(loss) before income taxes | 328,942,000 | 365,268,000 | ||
Intersegment (expense)/revenue | 0 | 0 | ||
Total assets | 36,797,775,000 | 34,119,945,000 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | (21,406,000) | 15,714,000 | ||
Total non-interest income | 35,869,000 | 23,713,000 | ||
Provision/(release) for credit losses | 4,313,000 | 31,100,000 | ||
Total expenses | 149,363,000 | 43,551,000 | ||
Income/(loss) before income taxes | (139,213,000) | (35,224,000) | ||
Intersegment (expense)/revenue | 71,000 | 627,000 | ||
Total assets | 33,091,504,000 | 25,602,484,000 | ||
SC Purchase Price Adjustments | SC | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 51,773,000 | 113,936,000 | ||
Total non-interest income | 13,782,000 | 59,303,000 | ||
Provision/(release) for credit losses | 102,163,000 | 374,792,000 | ||
Total expenses | 14,733,000 | 13,743,000 | ||
Income/(loss) before income taxes | (51,341,000) | (215,296,000) | ||
Intersegment (expense)/revenue | 0 | 0 | ||
Total assets | 0 | 0 | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net interest income | 1,461,000 | 87,000 | ||
Total non-interest income | (11,237,000) | (15,724,000) | ||
Provision/(release) for credit losses | 0 | 0 | ||
Total expenses | (12,937,000) | (13,676,000) | ||
Income/(loss) before income taxes | 3,161,000 | (1,961,000) | ||
Intersegment (expense)/revenue | 0 | 0 | ||
Total assets | $ 0 | $ 0 | ||
FCA | ||||
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 | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Allowance for credit losses | $ 3,480,603 | $ 3,160,711 | $ 2,281,287 | $ 1,701,602 | $ 3,160,711 |
Loans held-for-investment, net | 77,613,639 | 76,213,081 | 76,213,081 | ||
Overstatement of Interest income - Loans | 1,859,053 | 1,803,678 | |||
Overstatement of Provision for credit losses | (882,278) | (1,053,639) | |||
Understatement of Miscellaneous income | (41,881) | 96,540 | |||
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 13,777 | $ 85,416 | |||
As Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Loans held-for-investment, net | 77,679,667 | ||||
Overstatement of Interest income - Loans | 1,899,185 | ||||
Overstatement of Provision for credit losses | (920,439) | ||||
Understatement of Miscellaneous income | (50,294) | ||||
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 11,840 | ||||
Corrections | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Loans held-for-investment, net | (66,028) | ||||
Overstatement of Interest income - Loans | (40,132) | ||||
Overstatement of Provision for credit losses | 38,161 | ||||
Understatement of Miscellaneous income | 8,413 | ||||
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 1,937 | ||||
Trade name | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Impairment of intangible assets | 3,500 | ||||
Understatement due to Incorrect Discount Rate Used in the Determination of TDR Impairment | Corrections | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Allowance for credit losses | 72,800 | ||||
Overstatement (Understatement) due to Incorrect Accretion Methodology | Corrections | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Loans held-for-investment, net | 143,909 | ||||
TDR impairment | 31,100 | ||||
Overstatement of Interest income - Loans | (40,132) | ||||
Overstatement of Provision for credit losses | 48,362 | ||||
Understatement of Miscellaneous income | 737 | ||||
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 8,967 | ||||
Understatement in retail installment contracts | 94,900 | ||||
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 | ||||
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 | |||
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 | ||||
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 | Overstatement due to Incorrect Discount Rate Used in the Determination of TDR Impairment | Corrections | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Loans held-for-investment, net | $ 72,800 |
RESTATEMENTS (Consolidated Bala
RESTATEMENTS (Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | $ 6,603,448 | $ 4,992,042 | $ 1,885,507 | $ 2,201,783 | ||
Loans held-for-investment | 81,094,242 | [1],[2] | 79,373,792 | |||
Allowance for loan and lease losses | [2] | (3,480,603) | (3,160,711) | |||
Net loans held-for-investment | 77,613,639 | 76,213,081 | ||||
Leased vehicles, net | [2],[3] | 8,959,228 | 8,377,835 | |||
Restricted cash | [2] | 2,923,603 | 2,429,729 | |||
Other assets | [2],[4] | 2,304,725 | 1,893,815 | |||
Total assets | 131,024,627 | 127,571,282 | 123,416,531 | |||
Accrued expenses and payables | 1,516,199 | 1,666,286 | ||||
Advance payments by borrowers for taxes and insurance | 231,107 | 171,137 | ||||
Deferred tax liabilities, net | 472,572 | 353,369 | ||||
Other liabilities | 817,889 | [2] | 598,380 | |||
TOTAL LIABILITIES | 111,258,518 | 107,989,507 | ||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 shares outstanding at both March 31, 2016 and December 31, 2015) | 14,716,851 | 14,729,566 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (26,679) | (139,641) | ||||
Retained earnings | 2,361,562 | 2,351,435 | ||||
Stockholder's equity | 17,247,179 | 17,136,805 | ||||
Noncontrolling interest | 2,518,930 | 2,444,970 | ||||
TOTAL STOCKHOLDER'S EQUITY | 19,766,109 | 19,581,775 | $ 22,917,495 | $ 22,727,456 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 131,024,627 | 127,571,282 | ||||
As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | 6,647,408 | 5,025,148 | ||||
Loans held-for-investment | 81,213,607 | |||||
Allowance for loan and lease losses | (3,533,940) | |||||
Net loans held-for-investment | 77,679,667 | |||||
Leased vehicles, net | 8,980,530 | |||||
Restricted cash | 3,002,322 | |||||
Other assets | 2,168,999 | |||||
Total assets | 131,098,910 | |||||
Accrued expenses and payables | 1,686,311 | |||||
Advance payments by borrowers for taxes and insurance | 232,925 | |||||
Deferred tax liabilities, net | 443,082 | |||||
Other liabilities | 773,872 | |||||
TOTAL LIABILITIES | 111,356,941 | |||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 shares outstanding at both March 31, 2016 and December 31, 2015) | 14,704,909 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (42,359) | |||||
Retained earnings | 2,376,115 | |||||
Stockholder's equity | 17,234,110 | |||||
Noncontrolling interest | 2,507,859 | |||||
TOTAL STOCKHOLDER'S EQUITY | 19,741,969 | 19,568,953 | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 131,098,910 | |||||
Corrections | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cash and cash equivalents | (43,960) | (33,106) | ||||
Loans held-for-investment | (119,365) | |||||
Allowance for loan and lease losses | 53,337 | |||||
Net loans held-for-investment | (66,028) | |||||
Leased vehicles, net | (21,302) | |||||
Restricted cash | (78,719) | |||||
Other assets | 135,726 | |||||
Total assets | (74,283) | |||||
Accrued expenses and payables | (170,112) | |||||
Advance payments by borrowers for taxes and insurance | (1,818) | |||||
Deferred tax liabilities, net | 29,490 | |||||
Other liabilities | 44,017 | |||||
TOTAL LIABILITIES | (98,423) | |||||
Common stock and paid-in capital (no par value; 800,000,000 shares authorized; 530,391,043 shares outstanding at both March 31, 2016 and December 31, 2015) | 11,942 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 15,680 | |||||
Retained earnings | (14,553) | |||||
Stockholder's equity | 13,069 | |||||
Noncontrolling interest | 11,071 | |||||
TOTAL STOCKHOLDER'S EQUITY | 24,140 | $ 12,822 | ||||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ (74,283) | |||||
[1] | Loans held-for-investment includes $285.8 million and $328.7 million of loans recorded at fair value at March 31, 2016 and December 31, 2015, 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 6 to these Condensed Consolidated Financial Statements for additional information. | |||||
[3] | Net of accumulated depreciation of $2.2 billion and $1.9 billion at March 31, 2016 and December 31, 2015, respectively. | |||||
[4] | Includes mortgage servicing rights ("MSRs") of $130.7 million and $147.2 million at March 31, 2016 and December 31, 2015, respectively, for which Santander Holdings USA, Inc. (the "Company") has elected the FVO. See Note 8 to these Condensed Consolidated Financial Statements for additional information. |
RESTATEMENTS (Consolidated Stat
RESTATEMENTS (Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Overstatement of Interest income - Loans | $ 1,859,053 | $ 1,803,678 |
TOTAL INTEREST INCOME | 1,969,504 | 1,901,925 |
Net interest income | 1,616,052 | 1,623,057 |
Provision for credit losses | 882,278 | 1,053,639 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 733,774 | 569,418 |
Consumer fees | 124,467 | 100,704 |
Lease income | 421,520 | 313,331 |
Miscellaneous (loss)/income | (41,881) | 96,540 |
TOTAL FEES AND OTHER INCOME | 571,280 | 576,946 |
TOTAL NON-INTEREST INCOME | 597,701 | 586,503 |
Compensation and benefits | 368,119 | 319,101 |
Loan expense | 98,645 | 93,797 |
Lease expense | 292,882 | 240,948 |
Other administrative expenses | 81,637 | 71,666 |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,109,274 | 959,507 |
Amortization of intangibles | 14,938 | 16,806 |
Deposit insurance premiums and other expenses | 23,858 | 15,809 |
Other expense | 71,753 | 32,664 |
INCOME BEFORE INCOME TAX PROVISION | 150,448 | 163,750 |
Income tax provision | 65,396 | 36,909 |
NET INCOME INCLUDING NONCONTROLLING INTEREST | 85,052 | 126,841 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 71,275 | 41,425 |
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 13,777 | $ 85,416 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Overstatement of Interest income - Loans | 1,899,185 | |
TOTAL INTEREST INCOME | 2,009,636 | |
Net interest income | 1,656,184 | |
Provision for credit losses | 920,439 | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 735,745 | |
Consumer fees | 123,682 | |
Lease income | 434,652 | |
Miscellaneous (loss)/income | (50,294) | |
TOTAL FEES AND OTHER INCOME | 575,214 | |
TOTAL NON-INTEREST INCOME | 601,635 | |
Compensation and benefits | 366,119 | |
Loan expense | 99,995 | |
Lease expense | 293,779 | |
Other administrative expenses | 80,321 | |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,108,205 | |
Amortization of intangibles | 35,238 | |
Deposit insurance premiums and other expenses | 22,235 | |
Other expense | 90,430 | |
INCOME BEFORE INCOME TAX PROVISION | 138,745 | |
Income tax provision | 65,010 | |
NET INCOME INCLUDING NONCONTROLLING INTEREST | 73,735 | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 61,895 | |
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | 11,840 | |
Corrections | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Overstatement of Interest income - Loans | (40,132) | |
TOTAL INTEREST INCOME | (40,132) | |
Net interest income | (40,132) | |
Provision for credit losses | (38,161) | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | (1,971) | |
Consumer fees | 785 | |
Lease income | (13,132) | |
Miscellaneous (loss)/income | 8,413 | |
TOTAL FEES AND OTHER INCOME | (3,934) | |
TOTAL NON-INTEREST INCOME | (3,934) | |
Compensation and benefits | 2,000 | |
Loan expense | (1,350) | |
Lease expense | (897) | |
Other administrative expenses | 1,316 | |
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | 1,069 | |
Amortization of intangibles | (20,300) | |
Deposit insurance premiums and other expenses | 1,623 | |
Other expense | (18,677) | |
INCOME BEFORE INCOME TAX PROVISION | 11,703 | |
Income tax provision | 386 | |
NET INCOME INCLUDING NONCONTROLLING INTEREST | 11,317 | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 9,380 | |
NET INCOME ATTRIBUTABLE TO SANTANDER HOLDINGS USA, INC. | $ 1,937 |
RESTATEMENTS (Consolidated S109
RESTATEMENTS (Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
NET INCOME INCLUDING NONCONTROLLING INTEREST | $ 85,052 | $ 126,841 | |
Net unrealized gains/(losses) on cash flow hedge derivative financial instruments | [1] | (32,527) | (15,115) |
TOTAL OTHER COMPREHENSIVE (LOSS)/INCOME, NET OF TAX | 112,962 | 51,490 | |
COMPREHENSIVE INCOME | 198,014 | 178,331 | |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 71,275 | 41,425 | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 126,739 | $ 136,906 | |
As Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 73,735 | ||
Net unrealized gains/(losses) on cash flow hedge derivative financial instruments | (48,207) | ||
TOTAL OTHER COMPREHENSIVE (LOSS)/INCOME, NET OF TAX | 97,282 | ||
COMPREHENSIVE INCOME | 171,017 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 61,895 | ||
Comprehensive income attributable to Santander Holdings USA, Inc. | 109,122 | ||
Corrections | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
NET INCOME INCLUDING NONCONTROLLING INTEREST | 11,317 | ||
Net unrealized gains/(losses) on cash flow hedge derivative financial instruments | 15,680 | ||
TOTAL OTHER COMPREHENSIVE (LOSS)/INCOME, NET OF TAX | 15,680 | ||
COMPREHENSIVE INCOME | 26,997 | ||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 9,380 | ||
Comprehensive income attributable to Santander Holdings USA, Inc. | $ 17,617 | ||
[1] | Excludes $(15.7) million of other comprehensive income attributable to NCI for the three-month period ended March 31, 2016. There was no material other comprehensive income attributable to NCI for the three-month period ended March 31, 2015 |
RESTATEMENTS (Consolidated S110
RESTATEMENTS (Consolidated Statement of Stockholder's Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | $ 19,581,775 | $ 22,727,456 |
Comprehensive income attributable to Santander Holdings USA, Inc. | 126,739 | 136,906 |
Other comprehensive income attributable to NCI | (15,680) | |
Comprehensive income attributable to noncontrolling interest | 71,275 | 41,425 |
Equity, Ending balance | 19,766,109 | 22,917,495 |
As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 19,568,953 | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 109,122 | |
Comprehensive income attributable to noncontrolling interest | 61,895 | |
Equity, Ending balance | 19,741,969 | |
Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 12,822 | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 17,617 | |
Comprehensive income attributable to noncontrolling interest | 9,380 | |
Equity, Ending balance | 24,140 | |
Common Stock and Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 14,729,566 | 14,729,609 |
Equity, Ending balance | 14,716,851 | 14,730,156 |
Common Stock and Paid-in Capital | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 14,717,625 | |
Equity, Ending balance | 14,704,909 | |
Common Stock and Paid-in Capital | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 11,941 | |
Equity, Ending balance | 11,942 | |
Accumulated Other Comprehensive (Loss)/Income | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | (139,641) | (96,410) |
Comprehensive income attributable to Santander Holdings USA, Inc. | 112,962 | 51,490 |
Equity, Ending balance | (26,679) | (44,920) |
Accumulated Other Comprehensive (Loss)/Income | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | (139,641) | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 97,282 | |
Equity, Ending balance | (42,359) | |
Accumulated Other Comprehensive (Loss)/Income | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 0 | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 15,680 | |
Equity, Ending balance | 15,680 | |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 2,351,435 | 3,846,417 |
Comprehensive income attributable to Santander Holdings USA, Inc. | 13,777 | 85,416 |
Equity, Ending balance | 2,361,562 | 3,928,183 |
Retained Earnings | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 2,367,925 | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 11,840 | |
Equity, Ending balance | 2,376,115 | |
Retained Earnings | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | (16,490) | |
Comprehensive income attributable to Santander Holdings USA, Inc. | 1,937 | |
Equity, Ending balance | (14,553) | |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 2,444,970 | 4,052,395 |
Other comprehensive income attributable to NCI | (15,680) | |
Comprehensive income attributable to noncontrolling interest | 71,275 | 41,425 |
Equity, Ending balance | 2,518,930 | 4,108,631 |
Noncontrolling Interest | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 2,427,599 | |
Other comprehensive income attributable to NCI | 15,680 | |
Comprehensive income attributable to noncontrolling interest | 61,895 | |
Equity, Ending balance | 2,507,859 | |
Noncontrolling Interest | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Equity, Beginning balance | 17,371 | |
Other comprehensive income attributable to NCI | (31,360) | |
Comprehensive income attributable to noncontrolling interest | 9,380 | |
Equity, Ending balance | 11,071 | |
SC | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | 5,254 | 14,811 |
SC | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | (10,427) | |
SC | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | 15,681 | |
SC | Common Stock and Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | (13,111) | |
SC | Common Stock and Paid-in Capital | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | (13,112) | |
SC | Common Stock and Paid-in Capital | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | 1 | |
SC | Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | 18,365 | $ 14,811 |
SC | Noncontrolling Interest | As Reported | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | 2,685 | |
SC | Noncontrolling Interest | Corrections | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Impact of Santander Consumer USA Holdings Inc. stock option activity | $ 15,680 |
RESTATEMENTS (Consolidated S111
RESTATEMENTS (Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income including noncontrolling interest | $ 85,052 | $ 126,841 |
Provision for credit losses | 882,278 | 1,053,639 |
Deferred tax expense/(benefit) | 53,858 | (71,514) |
Depreciation, amortization and accretion | 212,830 | 100,151 |
Net loss/(gain) on sale of loans | 69,905 | (14,501) |
Stock-based compensation | 18,607 | 5,778 |
Other assets and bank-owned life insurance | (181,005) | 330,671 |
Other liabilities | 65,021 | 54,312 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 749,694 | 1,721,364 |
Net change in restricted cash | (498,444) | (776,589) |
Proceeds from the sale and termination of leased vehicles | 480,604 | 586,664 |
NET CASH USED IN INVESTING ACTIVITIES | (2,183,881) | (7,092,547) |
Proceeds from Issuance of Long-term Debt | 13,373,270 | 11,935,538 |
Repayments of Long-term Debt | (10,751,400) | (9,051,010) |
Net change in advance payments by borrowers for taxes and insurance | 59,970 | 54,943 |
Proceeds from the issuance of common stock | 257 | 9,161 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 3,045,593 | 5,054,907 |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 1,611,406 | (316,276) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,992,042 | 2,201,783 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 6,603,448 | $ 1,885,507 |
As Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income including noncontrolling interest | 73,735 | |
Provision for credit losses | 920,439 | |
Deferred tax expense/(benefit) | 53,474 | |
Depreciation, amortization and accretion | 186,238 | |
Net loss/(gain) on sale of loans | 74,000 | |
Stock-based compensation | 4,723 | |
Other assets and bank-owned life insurance | (122,411) | |
Other liabilities | 102,639 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 835,985 | |
Net change in restricted cash | (577,163) | |
Proceeds from the sale and termination of leased vehicles | 483,353 | |
NET CASH USED IN INVESTING ACTIVITIES | (2,259,851) | |
Proceeds from Issuance of Long-term Debt | 13,305,671 | |
Repayments of Long-term Debt | (10,683,801) | |
Net change in advance payments by borrowers for taxes and insurance | 59,995 | |
Proceeds from the issuance of common stock | 765 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 3,046,126 | |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 1,622,260 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 5,025,148 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 6,647,408 | |
Corrections | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Net income including noncontrolling interest | 11,317 | |
Provision for credit losses | (38,161) | |
Deferred tax expense/(benefit) | 384 | |
Depreciation, amortization and accretion | 26,592 | |
Net loss/(gain) on sale of loans | (4,095) | |
Stock-based compensation | 13,884 | |
Other assets and bank-owned life insurance | (58,594) | |
Other liabilities | (37,618) | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | (86,291) | |
Net change in restricted cash | 78,719 | |
Proceeds from the sale and termination of leased vehicles | (2,749) | |
NET CASH USED IN INVESTING ACTIVITIES | 75,970 | |
Proceeds from Issuance of Long-term Debt | 67,599 | |
Repayments of Long-term Debt | (67,599) | |
Net change in advance payments by borrowers for taxes and insurance | (25) | |
Proceeds from the issuance of common stock | (508) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (533) | |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (10,854) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | (33,106) | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ (43,960) |