Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | COF | |
Entity Registrant Name | CAPITAL ONE FINANCIAL CORP | |
Entity Central Index Key | 927628 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 546,424,370 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income: | ||
Loans, including loans held for sale | $4,540 | $4,307 |
Investment securities | 406 | 416 |
Other | 28 | 30 |
Total interest income | 4,974 | 4,753 |
Interest expense: | ||
Deposits | 271 | 276 |
Securitized debt obligations | 33 | 38 |
Senior and subordinated notes | 79 | 77 |
Other borrowings | 15 | 12 |
Total interest expense | 398 | 403 |
Net interest income | 4,576 | 4,350 |
Provision for credit losses | 935 | 735 |
Net interest income after provision for credit losses | 3,641 | 3,615 |
Non-interest income: | ||
Service charges and other customer-related fees | 437 | 474 |
Interchange fees, net | 496 | 440 |
Total other-than-temporary impairment | -9 | -3 |
Less: Portion of other-than-temporary impairment recorded in AOCI | -6 | -2 |
Net other-than-temporary impairment recognized in earnings | -15 | -5 |
Other | 153 | 111 |
Total non-interest income | 1,071 | 1,020 |
Non-interest expense: | ||
Salaries and associate benefits | 1,211 | 1,161 |
Occupancy and equipment | 435 | 405 |
Marketing | 375 | 325 |
Professional services | 296 | 287 |
Communications and data processing | 202 | 196 |
Amortization of intangibles | 110 | 143 |
Other | 420 | 415 |
Total non-interest expense | 3,049 | 2,932 |
Income from continuing operations before income taxes | 1,663 | 1,703 |
Income tax provision | 529 | 579 |
Income from continuing operations, net of tax | 1,134 | 1,124 |
Income from discontinued operations, net of tax | 19 | 30 |
Net income | 1,153 | 1,154 |
Dividends and undistributed earnings allocated to participating securities | -6 | -5 |
Preferred stock dividends | -32 | -13 |
Net income available to common stockholders | $1,115 | $1,136 |
Basic earnings per common share: | ||
Net income from continuing operations (in dollars per share) | $2 | $1.94 |
Income (loss) from discontinued operations (in dollars per share) | $0.03 | $0.05 |
Net income per basic common share (in dollars per share) | $2.03 | $1.99 |
Diluted earnings per common share: | ||
Net income from continuing operations (in dollars per share) | $1.97 | $1.91 |
Income (loss) from discontinued operations (in dollars per share) | $0.03 | $0.05 |
Net income per diluted common share (in dollars per share) | $2 | $1.96 |
Dividends paid per common share (in dollars per share) | $0.30 | $0.30 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $1,153 | $1,154 |
Other comprehensive income (loss) before taxes: | ||
Net unrealized gains on securities available for sale | 190 | 229 |
Net changes in securities held to maturity | 33 | 28 |
Net unrealized gains on cash flow hedges | 258 | 30 |
Foreign currency translation adjustments | -41 | -13 |
Other | -4 | -1 |
Other comprehensive income before taxes | 436 | 273 |
Income tax provision related to other comprehensive income | 218 | 111 |
Other comprehensive income, net of tax | 218 | 162 |
Comprehensive income | $1,371 | $1,316 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Cash and cash equivalents: | ||
Cash and due from banks | $2,853 | $3,147 |
Interest-bearing deposits with banks | 6,038 | 4,095 |
Total cash and cash equivalents | 8,891 | 7,242 |
Restricted cash for securitization investors | 234 | 234 |
Securities available for sale, at fair value | 39,321 | 39,508 |
Securities held to maturity, at carrying value | 23,241 | 22,500 |
Loans held for investment: | ||
Total loans held for investment | 203,978 | 208,316 |
Allowance for loan and lease losses | -4,405 | -4,383 |
Net loans held for investment | 199,573 | 203,933 |
Loans held for sale, at lower of cost or fair value | 1,331 | 626 |
Premises and equipment, net | 3,684 | 3,685 |
Interest receivable | 1,078 | 1,079 |
Goodwill | 13,978 | 13,978 |
Other assets | 14,893 | 15,382 |
Total assets | 306,224 | 308,167 |
Liabilities: | ||
Interest payable | 195 | 254 |
Deposits: | ||
Non-interest bearing deposits | 25,232 | 25,081 |
Interest-bearing deposits | 185,208 | 180,467 |
Total deposits | 210,440 | 205,548 |
Securitized debt obligations | 12,717 | 11,624 |
Other debt: | ||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 880 |
Senior and subordinated notes | 20,559 | 18,684 |
Other borrowings | 6,820 | 17,269 |
Total other debt | 28,312 | 36,833 |
Other liabilities | 8,830 | 8,855 |
Total liabilities | 260,494 | 263,114 |
Commitments and Contingencies and Guarantees | ||
Stockholders’ equity: | ||
Preferred stock (par value $.01 per share; 50,000,000 shares authorized; 1,875,000 shares issued and outstanding both as of March 31, 2015 and December 31, 2014) | 0 | 0 |
Common stock (par value $.01 per share; 1,000,000,000 shares authorized; 645,336,323 and 643,557,048 shares issued as of March 31, 2015 and December 31, 2014, respectively, and 548,003,155 and 553,391,311 shares outstanding as of March 31, 2015 and December 31, 2014, respectively) | 6 | 6 |
Additional paid-in capital, net | 27,939 | 27,869 |
Retained earnings | 24,925 | 23,973 |
Accumulated other comprehensive loss | -212 | -430 |
Treasury stock at cost (par value $.01 per share; 97,333,168 and 90,165,737 shares as of March 31, 2015 and December 31, 2014, respectively) | -6,928 | -6,365 |
Total stockholders’ equity | 45,730 | 45,053 |
Total liabilities and stockholders’ equity | 306,224 | 308,167 |
Unsecuritized loans held for investment | ||
Loans held for investment: | ||
Total loans held for investment | 170,040 | 171,771 |
Restricted loans for securitization investors | ||
Loans held for investment: | ||
Total loans held for investment | $33,938 | $36,545 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 1,875,000 | 1,875,000 |
Preferred stock, shares outstanding | 1,875,000 | 1,875,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 645,336,323 | 643,557,048 |
Common stock, shares outstanding | 548,003,155 | 553,391,311 |
Treasury stock, at cost; shares | 97,333,168 | 90,165,737 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Millions, except Share data, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2014 | $45,053 | $0 | $6 | $27,869 | $23,973 | ($430) | ($6,365) |
Beginning balance (shares) at Dec. 31, 2014 | 1,875,000 | 643,557,048 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income | 1,371 | 1,153 | 218 | ||||
Common Stock Dividends, Shares | 29,455 | ||||||
Dividends, Common Stock | -167 | 0 | -2 | -169 | |||
Cash dividends - preferred series | -32 | -32 | |||||
Purchases of treasury stock | -563 | -563 | |||||
Issuances of common stock and restricted stock, net of forfeitures | 1,497,059 | ||||||
Issuances of common stock and restricted stock, net of forfeitures | 24 | 0 | 24 | ||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting | 252,761 | ||||||
Exercise of stock options and warrants, tax effects of exercises and restricted stock vesting | 10 | 0 | 10 | ||||
Compensation expense for restricted stock awards and stock options | 34 | 34 | |||||
Ending balance at Mar. 31, 2015 | $45,730 | $0 | $6 | $27,939 | $24,925 | ($212) | ($6,928) |
Ending balance (shares) at Mar. 31, 2015 | 1,875,000 | 645,336,323 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash dividends-common stock (in dollars per share) | $0.30 | $0.30 |
Series B Preferred Stock | ||
Non-cumulative Fixed Dividend Rate per Annum (as percent) | 6.00% | |
Series C Preferred Stock | ||
Non-cumulative Fixed Dividend Rate per Annum (as percent) | 6.25% |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Income from continuing operations, net of tax | $1,134 | $1,124 |
Income from discontinued operations, net of tax | 19 | 30 |
Net income | 1,153 | 1,154 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for credit losses | 935 | 735 |
Depreciation and amortization, net | 483 | 514 |
Net gain on sales of securities available for sale | -2 | -13 |
Impairment losses on securities available for sale | 15 | 5 |
Gain on sales of loans held for sale | -34 | -7 |
Stock plan compensation expense | 50 | 84 |
Loans held for sale: | ||
Originations and purchases | -1,916 | -695 |
Proceeds from sales and paydowns | 1,234 | 667 |
Changes in operating assets and liabilities: | ||
Decrease in interest receivable | 1 | 5 |
Decrease in other assets | 187 | 1,406 |
Decrease in interest payable | -59 | -50 |
Decrease in other liabilities | -8 | -597 |
Net cash used by discontinued operations | -46 | -49 |
Net cash provided by operating activities | 1,993 | 3,159 |
Securities available for sale: | ||
Purchases | -2,883 | -3,443 |
Proceeds from paydowns and maturities | 1,891 | 1,776 |
Proceeds from sales | 1,342 | 2,976 |
Securities held to maturity: | ||
Purchases | -1,193 | -1,269 |
Proceeds from paydowns and maturities | 453 | 254 |
Loans: | ||
Net decrease in loans held for investment | 3,143 | 2,817 |
Principal recoveries of loans previously charged off | 403 | 404 |
Purchases of premises and equipment | -153 | -129 |
Net cash provided by other investing activities | 68 | 0 |
Net cash provided by investing activities | 3,071 | 3,386 |
Financing activities: | ||
Decrease restricted cash for securitization investors | 0 | 324 |
Net increase in deposits | 4,890 | 3,799 |
Issuance of securitized debt obligations | 1,247 | 948 |
Maturities and paydowns of securitized debt obligations | -175 | -1,470 |
Issuance of senior and subordinated notes and junior subordinated debentures | 2,988 | 1,994 |
Maturities and redemptions of senior and subordinate notes | -1,250 | -275 |
Net decrease in other borrowings | -10,396 | -11,787 |
Common stock: | ||
Net proceeds from issuances | 24 | 27 |
Dividends paid | -167 | -174 |
Preferred stock: | ||
Dividends paid | -32 | -13 |
Purchases of treasury stock | -563 | -39 |
Proceeds from share-based payment activities | 19 | 12 |
Net cash used by financing activities | -3,415 | -6,654 |
Increase (decrease) in cash and cash equivalents | 1,649 | -109 |
Cash and cash equivalents at beginning of the period | 7,242 | 6,291 |
Cash and cash equivalents at end of the period | 8,891 | 6,182 |
Non-cash items: | ||
Net transfers from loans held for investment to loans held for sale | 3 | 8 |
Interest paid | 457 | 451 |
Income tax refund | ($87) | ($19) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | ||
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
The Company | ||
Capital One Financial Corporation, a Delaware Corporation established in 1994 and headquartered in McLean, Virginia, is a diversified financial services holding company with banking and non-banking subsidiaries. Capital One Financial Corporation and its subsidiaries (the “Company”) offers a broad array of financial products and services to consumers, small businesses and commercial clients through branches, the internet and other distribution channels. As of March 31, 2015, our principal subsidiaries included: | ||
• | Capital One Bank (USA), National Association (“COBNA”), which offers credit and debit card products, other lending products and deposit products; and | |
• | Capital One, National Association (“CONA”), which offers a broad spectrum of banking products and financial services to consumers, small businesses and commercial clients. | |
The Company and its subsidiaries are hereafter collectively referred to as “we,” “us” or “our.” COBNA and CONA are collectively referred to as the “Banks.” | ||
We also offer products outside of the United States of America (“U.S.”) principally through Capital One (Europe) plc (“COEP”), an indirect subsidiary of COBNA organized and located in the United Kingdom (“U.K.”), and through a branch of COBNA in Canada. COEP has authority, among other things, to provide credit card loans. Our branch of COBNA in Canada also has the authority to provide credit card loans. | ||
Our principal operations are currently organized for management reporting purposes into three major business segments, which are defined based on the products and services provided or the type of customer served: Credit Card, Consumer Banking and Commercial Banking. We provide details on our business segments, the integration of recent acquisitions into our business segments, and the allocation methodologies and accounting policies used to derive our business segment results in “Note 13—Business Segments.” | ||
Basis of Presentation and Use of Estimates | ||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. Certain prior period amounts have been reclassified to conform to the current period presentation. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Capital One Financial Corporation and all other entities in which we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a Variable Interest Entity (“VIE”). All significant intercompany account balances and transactions have been eliminated. | ||
Change in Accounting Principle | ||
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable), for instruments executed with the same counterparty where a right of setoff exists. This newly adopted policy is preferable as it more accurately reflects the Company’s counterparty credit risk as well as our contractual rights and obligations under these arrangements. Further, this change will align our presentation with that of the majority of our peer institutions. | ||
We retrospectively adopted this change in accounting principle and our consolidated balance sheet has been recast for all prior periods presented. As a result, our interest receivable, other assets and total assets as of December 31, 2014 were reduced by $356 million, $331 million and $687 million, respectively. Interest payable, other liabilities and total liabilities decreased as of December 31, 2014 by $63 million, $624 million and $687 million, respectively. There was no impact to operating activities in the consolidated statement of cash flows or any line item within the consolidated statements of income. See “Note 9—Derivative Instruments and Hedging Activities” for additional detail on the accounting for derivative instruments. | ||
New Accounting Standards Adopted | ||
Accounting for Repurchase Transactions | ||
In June 2014, the FASB issued guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings rather than sales. New disclosures will also be required for certain transactions accounted for as secured borrowings and transfers accounted for as sales when the transferor retains substantially all of the exposure to the economic return on the transferred financial assets. Our adoption of the accounting guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is consistent with our current practice. As required by the new guidance, the new disclosures will be effective and provided beginning in the second quarter of 2015. | ||
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | ||
In June 2014, the FASB issued guidance clarifying that a performance target contained within a share-based payment award that affects vesting and can be achieved after the requisite service period has been completed is to be accounted for as a performance condition. Accordingly, the grantor of such awards should recognize compensation cost in the period in which it becomes probable that the performance target will be achieved. The amount of the compensation cost recognized should represent the cost attributable to the requisite service period fulfilled. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. Our adoption of this guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is consistent with our current practice. | ||
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
In April 2014, the FASB issued guidance raising the threshold for a disposal to qualify as a discontinued operation. Under the new guidance, a component of an entity or group of components that has been disposed by sale, disposed of other than by sale or is classified as held for sale and that represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results should be reported as discontinued operations. The guidance should be applied prospectively for disposals or classifications as held for sale of components of an entity that occur within annual and interim periods beginning after December 15, 2014, with early adoption permitted in certain circumstances. Our adoption of this guidance in the first quarter of 2015 did not have a material effect on our consolidated financial statements due to the prospective transition provisions. | ||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure | ||
In January 2014, the FASB issued guidance clarifying when an entity should reclassify a consumer mortgage loan collateralized by residential real estate to foreclosed property. Reclassification should occur when the creditor obtains legal title to the residential real estate property or when the borrower conveys all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. An entity should not wait until a redemption period, if any, has expired to reclassify a consumer mortgage loan to foreclosed property. The guidance was effective for annual and interim periods beginning after December 15, 2014. Our adoption of this guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is materially consistent with our current practice. | ||
Recently Issued but Not Yet Adopted Accounting Standards | ||
Simplifying the presentation of debt issuance costs | ||
In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs. Under the new guidance, the debt issuance costs related to a recognized debt liability will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance should be applied retrospectively and is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the potential impact from the new guidance on the consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Discontinued Operations | |||||||||
NOTE 2—DISCONTINUED OPERATIONS | |||||||||
Shutdown of Mortgage Origination Operations of our Wholesale Mortgage Banking Unit | |||||||||
In the third quarter of 2007, we closed the mortgage origination operations of our wholesale mortgage banking unit, GreenPoint, which we acquired in December 2006 as part of the North Fork Bancorporation, Inc. (“North Fork”) acquisition. The results of the wholesale banking unit have been accounted for as a discontinued operation and are therefore not included in our results from continuing operations for the three months ended March 31, 2015 and 2014. We have no significant continuing involvement in these operations. | |||||||||
The following table summarizes the results from discontinued operations related to the closure of the mortgage origination operations of our wholesale mortgage banking unit: | |||||||||
Table 2.1: Results of Discontinued Operations | |||||||||
Three Months Ended March 31, | |||||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Non-interest income, net | $ | 30 | $ | 47 | |||||
Income from discontinued operations before income taxes | 30 | 47 | |||||||
Income tax provision | 11 | 17 | |||||||
Income from discontinued operations, net of tax | $ | 19 | $ | 30 | |||||
The discontinued mortgage origination operations of our wholesale mortgage banking unit had remaining assets which primarily consisted of the deferred tax asset related to the reserve for representations and warranties; and liabilities which primarily consisted of reserves for representations and warranties on loans previously sold to third parties. See “Note 14—Commitments, Contingencies, Guarantees and Others” for information related to reserves we have established for our mortgage representation and warranty exposure. |
Investment_Securities
Investment Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||
NOTE 3—INVESTMENT SECURITIES | |||||||||||||||||||||||||
Our investment portfolio consists primarily of the following: U.S. Treasury securities; corporate debt securities guaranteed by U.S. government agencies; U.S. government-sponsored enterprise or agency (“Agency”) and non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”); other asset-backed securities (“ABS”); and other investments. The carrying value of our investments in U.S. Treasury, Agency securities and other securities guaranteed by the U.S. government or U.S. government agencies represented 87% and 86% of our total investment securities as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||
Our investment portfolio includes securities available for sale and securities held to maturity. We classify securities as available for sale or held to maturity based on our investment strategy and management’s assessment of our intent and ability to hold the securities until maturity. | |||||||||||||||||||||||||
The table below presents the overview of our investment portfolio at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 3.1: Overview of Investment Portfolio | |||||||||||||||||||||||||
(Dollars in millions) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Securities available for sale, at fair value | $ | 39,321 | $ | 39,508 | |||||||||||||||||||||
Securities held to maturity, at carrying value | 23,241 | 22,500 | |||||||||||||||||||||||
Total investments | $ | 62,562 | $ | 62,008 | |||||||||||||||||||||
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 3.2: Investment Securities Available for Sale | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses(1) | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,411 | $ | 29 | $ | 0 | $ | 4,440 | |||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 600 | 3 | (5 | ) | 598 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency(2) | 22,344 | 327 | (64 | ) | 22,607 | ||||||||||||||||||||
Non-agency | 2,943 | 503 | (5 | ) | 3,441 | ||||||||||||||||||||
Total RMBS | 25,287 | 830 | (69 | ) | 26,048 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency(2) | 3,672 | 47 | (43 | ) | 3,676 | ||||||||||||||||||||
Non-agency | 1,711 | 46 | (4 | ) | 1,753 | ||||||||||||||||||||
Total CMBS | 5,383 | 93 | (47 | ) | 5,429 | ||||||||||||||||||||
Other ABS(3) | 2,025 | 6 | (3 | ) | 2,028 | ||||||||||||||||||||
Other securities(4) | 775 | 7 | (4 | ) | 778 | ||||||||||||||||||||
Total investment securities available for sale | $ | 38,481 | $ | 968 | $ | (128 | ) | $ | 39,321 | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses(1) | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,114 | $ | 5 | $ | (1 | ) | $ | 4,118 | ||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 819 | 1 | (20 | ) | 800 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency(2) | 21,804 | 296 | (105 | ) | 21,995 | ||||||||||||||||||||
Non-agency | 2,938 | 461 | (13 | ) | 3,386 | ||||||||||||||||||||
Total RMBS | 24,742 | 757 | (118 | ) | 25,381 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency(2) | 3,751 | 32 | (60 | ) | 3,723 | ||||||||||||||||||||
Non-agency | 1,780 | 31 | (15 | ) | 1,796 | ||||||||||||||||||||
Total CMBS | 5,531 | 63 | (75 | ) | 5,519 | ||||||||||||||||||||
Other ABS(3) | 2,618 | 54 | (10 | ) | 2,662 | ||||||||||||||||||||
Other securities(4) | 1,035 | 6 | (13 | ) | 1,028 | ||||||||||||||||||||
Total investment securities available for sale | $ | 38,859 | $ | 886 | $ | (237 | ) | $ | 39,508 | ||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Includes non-credit related other-than-temporary impairment (“OTTI”) that remains in accumulated other comprehensive income (“AOCI”) of $5 million and $8 million as of March 31, 2015 and December 31, 2014, respectively. Substantially all of this entire amount is related to non-agency RMBS. | ||||||||||||||||||||||||
(2) | Agency includes Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), and Government National Mortgage Association (“Ginnie Mae”). | ||||||||||||||||||||||||
(3) | ABS collateralized by credit card loans constituted approximately 59% and 56% of the other ABS portfolio as of March 31, 2015 and December 31, 2014, respectively, and ABS collateralized by auto dealer floor plan inventory loans and leases constituted approximately 18% and 16% of the other ABS portfolio as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
(4) | Includes foreign government bonds, corporate bonds, municipal securities and equity investments primarily related to activities under the Community Reinvestment Act (“CRA”). | ||||||||||||||||||||||||
The table below presents the carrying value, gross unrealized gains and losses, and fair value of securities held to maturity at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 3.3: Investment Securities Held to Maturity | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized Losses Recorded in AOCI(1) | Carrying Value | Gross | Gross | Fair | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 198 | $ | 0 | $ | 198 | $ | 1 | $ | 0 | $ | 199 | |||||||||||||
Agency RMBS | 21,639 | $ | (1,155 | ) | 20,484 | 1,282 | (3 | ) | 21,763 | ||||||||||||||||
Agency CMBS | 2,675 | (116 | ) | 2,559 | 132 | 0 | 2,691 | ||||||||||||||||||
Total investment securities held to maturity | $ | 24,512 | $ | (1,271 | ) | $ | 23,241 | $ | 1,415 | $ | (3 | ) | $ | 24,653 | |||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized | Carrying Value | Gross | Gross | Fair | |||||||||||||||||||
Cost | Losses Recorded in AOCI(1) | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Agency RMBS | 21,347 | $ | (1,184 | ) | 20,163 | 1,047 | 0 | 21,210 | |||||||||||||||||
Agency CMBS | 2,457 | (120 | ) | 2,337 | 93 | (6 | ) | 2,424 | |||||||||||||||||
Total investment securities held to maturity | $ | 23,804 | $ | (1,304 | ) | $ | 22,500 | $ | 1,140 | $ | (6 | ) | $ | 23,634 | |||||||||||
__________ | |||||||||||||||||||||||||
(1) | Represents the unrealized holding gain or loss at the date of transfer from available for sale to held to maturity, net of any subsequent accretion. Any bonds purchased into the securities held for maturity portfolio rather than transferred will not have unrealized losses recognized in AOCI. | ||||||||||||||||||||||||
Investment Securities in a Gross Unrealized Loss Position | |||||||||||||||||||||||||
The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 3.4: Securities in Unrealized Loss Position | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(Dollars in millions) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 201 | $ | 0 | $ | 0 | $ | 0 | $ | 201 | $ | 0 | |||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 155 | (1 | ) | 307 | (4 | ) | 462 | (5 | ) | ||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 4,288 | (14 | ) | 3,549 | (50 | ) | 7,837 | (64 | ) | ||||||||||||||||
Non-agency | 145 | (2 | ) | 62 | (3 | ) | 207 | (5 | ) | ||||||||||||||||
Total RMBS | 4,433 | (16 | ) | 3,611 | (53 | ) | 8,044 | (69 | ) | ||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 158 | 0 | 1,669 | (43 | ) | 1,827 | (43 | ) | |||||||||||||||||
Non-agency | 153 | (1 | ) | 312 | (3 | ) | 465 | (4 | ) | ||||||||||||||||
Total CMBS | 311 | (1 | ) | 1,981 | (46 | ) | 2,292 | (47 | ) | ||||||||||||||||
Other ABS | 376 | 0 | 474 | (3 | ) | 850 | (3 | ) | |||||||||||||||||
Other securities | 160 | (2 | ) | 184 | (2 | ) | 344 | (4 | ) | ||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 5,636 | $ | (20 | ) | $ | 6,557 | $ | (108 | ) | $ | 12,193 | $ | (128 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(Dollars in millions) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 1,499 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1,499 | $ | (1 | ) | |||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 113 | (2 | ) | 557 | (18 | ) | 670 | (20 | ) | ||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 3,917 | (15 | ) | 4,413 | (90 | ) | 8,330 | (105 | ) | ||||||||||||||||
Non-agency | 412 | (9 | ) | 90 | (4 | ) | 502 | (13 | ) | ||||||||||||||||
Total RMBS | 4,329 | (24 | ) | 4,503 | (94 | ) | 8,832 | (118 | ) | ||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 294 | (2 | ) | 1,993 | (58 | ) | 2,287 | (60 | ) | ||||||||||||||||
Non-agency | 258 | (1 | ) | 681 | (14 | ) | 939 | (15 | ) | ||||||||||||||||
Total CMBS | 552 | (3 | ) | 2,674 | (72 | ) | 3,226 | (75 | ) | ||||||||||||||||
Other ABS | 783 | (1 | ) | 586 | (9 | ) | 1,369 | (10 | ) | ||||||||||||||||
Other securities | 106 | 0 | 551 | (13 | ) | 657 | (13 | ) | |||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 7,382 | $ | (31 | ) | $ | 8,871 | $ | (206 | ) | $ | 16,253 | $ | (237 | ) | ||||||||||
As of March 31, 2015, the amortized cost of approximately 400 securities available for sale exceeded their fair value by $128 million, of which $108 million related to investment securities that had been in a loss position for 12 months or longer. As of March 31, 2015, our investments in non-agency RMBS and CMBS, other ABS, and other securities accounted for $16 million, or 13%, of total gross unrealized losses on securities available for sale. As of March 31, 2015, the carrying value of approximately 10 securities classified as held to maturity exceeded their fair value by $3 million. | |||||||||||||||||||||||||
Gross unrealized losses on our investment securities have generally decreased since December 31, 2014. The unrealized losses related to investment securities for which we have not recognized credit impairment are primarily attributable to changes in market interest rates. As discussed in more detail below, we conduct periodic reviews of all investment securities with unrealized losses to assess whether impairment is other-than-temporary. We believe the securities with an unrealized loss in AOCI are not other-than-temporarily impaired as of March 31, 2015. | |||||||||||||||||||||||||
Maturities and Yields of Investment Securities | |||||||||||||||||||||||||
The following tables summarize the remaining scheduled contractual maturities, assuming no prepayments, of our investment securities as of March 31, 2015. | |||||||||||||||||||||||||
Table 3.5: Contractual Maturities of Securities Available for Sale | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 662 | $ | 662 | |||||||||||||||||||||
Due after 1 year through 5 years | 6,526 | 6,571 | |||||||||||||||||||||||
Due after 5 years through 10 years | 2,509 | 2,554 | |||||||||||||||||||||||
Due after 10 years(1) | 28,784 | 29,534 | |||||||||||||||||||||||
Total | $ | 38,481 | $ | 39,321 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Investments with no stated maturities, which consist of equity securities, are included with contractual maturities due after 10 years. | ||||||||||||||||||||||||
Table 3.6: Contractual Maturities of Securities Held to Maturity | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Fair Value | |||||||||||||||||||||||
Due after 1 year through 5 years | $ | 198 | $ | 199 | |||||||||||||||||||||
Due after 5 years through 10 years | 1,146 | 1,244 | |||||||||||||||||||||||
Due after 10 years | 21,897 | 23,210 | |||||||||||||||||||||||
Total | $ | 23,241 | $ | 24,653 | |||||||||||||||||||||
Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented above. The table below summarizes, by major security type, the expected maturities and weighted average yields of our investment securities as of March 31, 2015. | |||||||||||||||||||||||||
Table 3.7: Expected Maturities and Weighted Average Yields of Securities | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Due in | Due > 1 Year | Due > 5 Years | Due > 10 Years | Total | ||||||||||||||||||||
1 Year or Less | through | through | |||||||||||||||||||||||
5 Years | 10 Years | ||||||||||||||||||||||||
Fair value of securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 251 | $ | 4,189 | $ | 0 | $ | 0 | $ | 4,440 | |||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 434 | 151 | 13 | 598 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 369 | 15,422 | 6,816 | 0 | 22,607 | ||||||||||||||||||||
Non-agency | 10 | 931 | 1,688 | 812 | 3,441 | ||||||||||||||||||||
Total RMBS | 379 | 16,353 | 8,504 | 812 | 26,048 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 129 | 2,005 | 1,523 | 19 | 3,676 | ||||||||||||||||||||
Non-agency | 135 | 424 | 1,194 | 0 | 1,753 | ||||||||||||||||||||
Total CMBS | 264 | 2,429 | 2,717 | 19 | 5,429 | ||||||||||||||||||||
Other ABS | 656 | 1,177 | 195 | 0 | 2,028 | ||||||||||||||||||||
Other securities | 99 | 188 | 401 | 90 | 778 | ||||||||||||||||||||
Total securities available for sale | $ | 1,649 | $ | 24,770 | $ | 11,968 | $ | 934 | $ | 39,321 | |||||||||||||||
Amortized cost of securities available for sale | $ | 1,651 | $ | 24,431 | $ | 11,581 | $ | 818 | $ | 38,481 | |||||||||||||||
Weighted average yield for securities available for sale(1) | 0.97 | % | 2.17 | % | 3.25 | % | 9.36 | % | 2.6 | % | |||||||||||||||
Carrying value of securities held to maturity: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 198 | $ | 0 | $ | 0 | $ | 198 | |||||||||||||||
Agency RMBS | 29 | 2,097 | 16,003 | 2,355 | 20,484 | ||||||||||||||||||||
Agency CMBS | 0 | 65 | 2,304 | 190 | 2,559 | ||||||||||||||||||||
Total securities held for maturity | $ | 29 | $ | 2,360 | $ | 18,307 | $ | 2,545 | $ | 23,241 | |||||||||||||||
Fair value of securities held to maturity | $ | 29 | $ | 2,446 | $ | 19,385 | $ | 2,793 | $ | 24,653 | |||||||||||||||
Weighted average yield for securities held to maturity(1) | 4.59 | % | 2.59 | % | 2.64 | % | 3.52 | % | 2.73 | % | |||||||||||||||
__________ | |||||||||||||||||||||||||
-1 | Average yield represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. | ||||||||||||||||||||||||
Other-Than-Temporary Impairment | |||||||||||||||||||||||||
We evaluate all securities in an unrealized loss position at least on a quarterly basis, and more often as market conditions require, to assess whether the impairment is other-than-temporary. Our OTTI assessment is based on a discounted cash flow analysis which requires careful use of judgments and assumptions. A number of qualitative and quantitative criteria may be considered in our assessment as applicable, including the size and the nature of the portfolio; historical and projected performance such as prepayment, default and loss severity for the RMBS portfolio; recent credit events specific to the issuer and/or industry to which the issuer belongs; the payment structure of the security; external credit ratings of the issuer and any failure or delay of the issuer to make scheduled interest or principal payments; the value of underlying collateral; our intent and ability to hold the security; and current and projected market and macro-economic conditions. | |||||||||||||||||||||||||
If we intend to sell a security in an unrealized loss position or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, the entire difference between the amortized cost basis of the security and its fair value is recognized in earnings. As of March 31, 2015, we do not intend to sell any securities with unrealized losses recorded in AOCI nor believe that we will be required to sell any securities prior to recovery of their amortized cost. | |||||||||||||||||||||||||
For those securities that we do not intend to sell nor expect to be required to sell, an analysis is performed to determine if any of the impairment is due to credit-related factors or whether it is due to other factors, such as interest rates. Credit-related impairment is recognized in earnings, with the remaining unrealized non-credit related impairment recorded in AOCI. We determine the credit component based on the difference between the security’s amortized cost basis and the present value of its expected cash flows, discounted based on the effective yield. | |||||||||||||||||||||||||
The table below presents a rollforward of the credit related OTTI recognized in earnings for the three months ended March 31, 2015 and 2014 on investment securities for which we had no intent to sell. | |||||||||||||||||||||||||
Table 3.8: Credit Impairment Rollforward | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Credit loss component, beginning of period | $ | 175 | $ | 160 | |||||||||||||||||||||
Additions: | |||||||||||||||||||||||||
Initial credit impairment | 5 | 1 | |||||||||||||||||||||||
Subsequent credit impairment | 10 | 4 | |||||||||||||||||||||||
Total additions | 15 | 5 | |||||||||||||||||||||||
Credit loss component, end of period | $ | 190 | $ | 165 | |||||||||||||||||||||
Realized Gains and Losses on Securities and OTTI Recognized in Earnings | |||||||||||||||||||||||||
The following table presents the gross realized gains and losses on the sale and redemption of securities available for sale, and the OTTI losses recognized in earnings for the three months ended March 31, 2015 and 2014. We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are held to maturity. | |||||||||||||||||||||||||
Table 3.9: Realized Gains and Losses and OTTI Recognized in Earnings | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||
Gross realized gains | $ | 9 | $ | 32 | |||||||||||||||||||||
Gross realized losses | (7 | ) | (19 | ) | |||||||||||||||||||||
Net realized gains | 2 | 13 | |||||||||||||||||||||||
Credit-related OTTI recognized in earnings | (15 | ) | (5 | ) | |||||||||||||||||||||
Total OTTI recognized in earnings | (15 | ) | (5 | ) | |||||||||||||||||||||
Net securities (losses) gains | $ | (13 | ) | $ | 8 | ||||||||||||||||||||
Total proceeds from sales | $ | 1,342 | $ | 2,976 | |||||||||||||||||||||
Securities Pledged and Received | |||||||||||||||||||||||||
As part of our liquidity management strategy, we pledge securities to secure borrowings from counterparties including the Federal Home Loan Banks and the Federal Reserve. We also pledge securities to secure trust and public deposits and for other purposes as required or permitted by law. We pledged securities available for sale with a fair value of $3.0 billion and $3.5 billion as of March 31, 2015 and December 31, 2014, respectively. We pledged securities held to maturity with a carrying value of $9.1 billion and $9.0 billion as of March 31, 2015 and December 31, 2014, respectively. Of the total securities pledged as collateral, we have encumbered $11.0 billion and $10.6 billion as of March 31, 2015 and December 31, 2014, respectively, primarily related to Public Fund deposits and our derivative transactions. We accepted pledges of securities with a fair value of $137 million and $91 million as of March 31, 2015 and December 31, 2014, respectively, primarily related to our derivative transactions. | |||||||||||||||||||||||||
Acquired Securities | |||||||||||||||||||||||||
The table below presents the outstanding balance, carrying value and amortized cost of the acquired credit-impaired debt securities as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 3.10: Outstanding Balance and Carrying Value of Acquired Securities | |||||||||||||||||||||||||
(Dollars in millions) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Outstanding balance | $ | 4,076 | $ | 4,259 | |||||||||||||||||||||
Carrying value | 2,787 | 2,839 | |||||||||||||||||||||||
Amortized cost | 2,307 | 2,354 | |||||||||||||||||||||||
Changes in Accretable Yield of Acquired Securities | |||||||||||||||||||||||||
The following table presents changes in the accretable yield related to the acquired credit-impaired debt securities: | |||||||||||||||||||||||||
Table 3.11: Changes in Accretable Yield of Acquired Securities | |||||||||||||||||||||||||
(Dollars in millions) | Acquired | ||||||||||||||||||||||||
Credit-Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Accretable yield as of December 31, 2014 | $ | 1,250 | |||||||||||||||||||||||
Accretion recognized in earnings | (61 | ) | |||||||||||||||||||||||
Reduction due to payoffs, disposals, transfers and other | (1 | ) | |||||||||||||||||||||||
Net reclassifications from (to) nonaccretable difference | (17 | ) | |||||||||||||||||||||||
Accretable yield as of March 31, 2015 | $ | 1,171 | |||||||||||||||||||||||
Loans
Loans | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
NOTE 4—LOANS | |||||||||||||||||||||||||||||
Loan Portfolio Composition | |||||||||||||||||||||||||||||
Our loan portfolio consists of loans held for investment, including restricted loans underlying our consolidated securitization trusts, and loans held for sale, and is divided into three portfolio segments: credit card, consumer banking and commercial banking loans. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto, home and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate, commercial and industrial and small-ticket commercial real estate loans. | |||||||||||||||||||||||||||||
Our portfolio of loans held for investment also includes loans acquired in the ING Direct, CCB and 2012 U.S. card acquisitions. These loans were recorded at fair value at the date of each acquisition and are referred to as Acquired Loans. The substantial majority of the loans purchased in the 2012 U.S. card acquisition had existing revolving privileges; therefore, they were excluded from the Acquired Loans and accounted for based on contractual cash flows at acquisition. See “Note 1—Summary of Significant Accounting Policies” in our 2014 Form 10-K for additional information on accounting guidance for these loans. | |||||||||||||||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||
We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk. Trends in delinquency ratios are an indicator, among other considerations, of credit risk within our loan portfolio. The level of nonperforming loans represents another indicator of the potential for future credit losses. Accordingly, key metrics we track and use in evaluating the credit quality of our loan portfolio include delinquency and nonperforming loan rates, as well as net charge-off rates and our internal risk ratings of larger balance commercial loans. The table below presents the composition and an aging analysis of our loans held for investment portfolio, which includes restricted loans for securitization investors, as of March 31, 2015 and December 31, 2014. The delinquency aging includes all past due loans, both performing and nonperforming. | |||||||||||||||||||||||||||||
Table 4.1: Loan Portfolio Composition and Aging Analysis | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 | 60-89 | > 90 | Total | Acquired | Total | ||||||||||||||||||||||
Days | Days | Days | Delinquent | Loans | Loans | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card(1) | $ | 71,947 | $ | 637 | $ | 456 | $ | 1,070 | $ | 2,163 | $ | 21 | $ | 74,131 | |||||||||||||||
International credit card | 7,361 | 102 | 61 | 99 | 262 | 0 | 7,623 | ||||||||||||||||||||||
Total credit card | 79,308 | 739 | 517 | 1,169 | 2,425 | 21 | 81,754 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 36,788 | 1,514 | 515 | 120 | 2,149 | 0 | 38,937 | ||||||||||||||||||||||
Home loan | 6,509 | 49 | 25 | 208 | 282 | 22,114 | 28,905 | ||||||||||||||||||||||
Retail banking | 3,458 | 17 | 9 | 14 | 40 | 39 | 3,537 | ||||||||||||||||||||||
Total consumer banking | 46,755 | 1,580 | 549 | 342 | 2,471 | 22,153 | 71,379 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 22,695 | 43 | 5 | 51 | 99 | 37 | 22,831 | ||||||||||||||||||||||
Commercial and industrial | 26,800 | 14 | 120 | 115 | 249 | 123 | 27,172 | ||||||||||||||||||||||
Total commercial lending | 49,495 | 57 | 125 | 166 | 348 | 160 | 50,003 | ||||||||||||||||||||||
Small-ticket commercial real estate | 725 | 4 | 4 | 5 | 13 | 0 | 738 | ||||||||||||||||||||||
Total commercial banking | 50,220 | 61 | 129 | 171 | 361 | 160 | 50,741 | ||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 91 | 4 | 1 | 8 | 13 | 0 | 104 | ||||||||||||||||||||||
Total loans(2) | $ | 176,374 | $ | 2,384 | $ | 1,196 | $ | 1,690 | $ | 5,270 | $ | 22,334 | $ | 203,978 | |||||||||||||||
% of Total loans | 86.47 | % | 1.17 | % | 0.58 | % | 0.83 | % | 2.58 | % | 10.95 | % | 100 | % | |||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 | 60-89 | > 90 | Total | Acquired | Total | ||||||||||||||||||||||
Days | Days | Days | Delinquent | Loans | Loans | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card(1) | $ | 75,143 | $ | 790 | $ | 567 | $ | 1,181 | $ | 2,538 | $ | 23 | $ | 77,704 | |||||||||||||||
International credit card | 7,878 | 114 | 69 | 111 | 294 | 0 | 8,172 | ||||||||||||||||||||||
Total credit card | 83,021 | 904 | 636 | 1,292 | 2,832 | 23 | 85,876 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 35,142 | 1,751 | 734 | 197 | 2,682 | 0 | 37,824 | ||||||||||||||||||||||
Home loan | 6,492 | 57 | 27 | 218 | 302 | 23,241 | 30,035 | ||||||||||||||||||||||
Retail banking | 3,496 | 17 | 7 | 16 | 40 | 44 | 3,580 | ||||||||||||||||||||||
Total consumer banking | 45,130 | 1,825 | 768 | 431 | 3,024 | 23,285 | 71,439 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 22,974 | 74 | 7 | 36 | 117 | 46 | 23,137 | ||||||||||||||||||||||
Commercial and industrial | 26,753 | 29 | 10 | 34 | 73 | 146 | 26,972 | ||||||||||||||||||||||
Total commercial lending | 49,727 | 103 | 17 | 70 | 190 | 192 | 50,109 | ||||||||||||||||||||||
Small-ticket commercial real estate | 771 | 6 | 1 | 3 | 10 | 0 | 781 | ||||||||||||||||||||||
Total commercial banking | 50,498 | 109 | 18 | 73 | 200 | 192 | 50,890 | ||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 97 | 3 | 2 | 9 | 14 | 0 | 111 | ||||||||||||||||||||||
Total loans(2) | $ | 178,746 | $ | 2,841 | $ | 1,424 | $ | 1,805 | $ | 6,070 | $ | 23,500 | $ | 208,316 | |||||||||||||||
% of Total loans | 85.81 | % | 1.36 | % | 0.68 | % | 0.87 | % | 2.91 | % | 11.28 | % | 100 | % | |||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Includes installment loans of $123 million and $144 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||
(2) | Loans as presented are net of unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs totaling $1.0 billion and $1.1 billion as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||
We had total loans held for sale of $1.3 billion and $626 million as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||
Table 4.2 presents loans 90 days or more past due that continue to accrue interest and loans classified as nonperforming as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||
Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans(1) | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | > 90 Days and Accruing | Nonperforming | > 90 Days and Accruing | Nonperforming | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 1,070 | $ | 0 | $ | 1,181 | $ | 0 | |||||||||||||||||||||
International credit card | 64 | 64 | 73 | 70 | |||||||||||||||||||||||||
Total credit card | 1,134 | 64 | 1,254 | 70 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 0 | 120 | 0 | 197 | |||||||||||||||||||||||||
Home loan | 0 | 336 | 0 | 330 | |||||||||||||||||||||||||
Retail banking | 1 | 25 | 1 | 22 | |||||||||||||||||||||||||
Total consumer banking | 1 | 481 | 1 | 549 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 24 | 40 | 7 | 62 | |||||||||||||||||||||||||
Commercial and industrial | 60 | 106 | 1 | 106 | |||||||||||||||||||||||||
Total commercial lending | 84 | 146 | 8 | 168 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 12 | 0 | 7 | |||||||||||||||||||||||||
Total commercial banking | 84 | 158 | 8 | 175 | |||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 0 | 14 | 0 | 15 | |||||||||||||||||||||||||
Total | $ | 1,219 | $ | 717 | $ | 1,263 | $ | 809 | |||||||||||||||||||||
% of Total loans | 0.6 | % | 0.35 | % | 0.61 | % | 0.39 | % | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Nonperforming loans generally include loans that have been placed on nonaccrual status. Acquired Loans are excluded from loans reported as 90 days and accruing interest as well as nonperforming loans. | ||||||||||||||||||||||||||||
Credit Card | |||||||||||||||||||||||||||||
Our credit card loan portfolio is generally highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk on a portfolio basis. The risk in our credit card portfolio correlates to broad economic trends, such as unemployment rates, gross domestic product (“GDP”), and home values, as well as customer liquidity, which can have a material effect on credit performance. The primary factors we assess in monitoring the credit quality and risk of our credit card portfolio are delinquency and charge-off trends, including an analysis of the migration of loans between delinquency categories over time. | |||||||||||||||||||||||||||||
The table below displays the geographic profile of our credit card loan portfolio and delinquency statistics as of March 31, 2015 and December 31, 2014. We also present comparative net charge-offs for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||
Table 4.3: Credit Card: Risk Profile by Geographic Region and Delinquency Status | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | |||||||||||||||||||||||||
Total(1) | Total(1) | ||||||||||||||||||||||||||||
Domestic credit card: | |||||||||||||||||||||||||||||
California | $ | 8,326 | 10.2 | % | $ | 8,574 | 10 | % | |||||||||||||||||||||
New York | 5,339 | 6.5 | 5,610 | 6.5 | |||||||||||||||||||||||||
Texas | 5,190 | 6.4 | 5,382 | 6.3 | |||||||||||||||||||||||||
Florida | 4,635 | 5.7 | 4,794 | 5.6 | |||||||||||||||||||||||||
Illinois | 3,525 | 4.3 | 3,747 | 4.4 | |||||||||||||||||||||||||
Pennsylvania | 3,349 | 4.1 | 3,581 | 4.2 | |||||||||||||||||||||||||
Ohio | 2,882 | 3.5 | 3,075 | 3.6 | |||||||||||||||||||||||||
New Jersey | 2,714 | 3.3 | 2,868 | 3.3 | |||||||||||||||||||||||||
Michigan | 2,516 | 3.1 | 2,681 | 3.1 | |||||||||||||||||||||||||
Other | 35,655 | 43.6 | 37,392 | 43.5 | |||||||||||||||||||||||||
Total domestic credit card | 74,131 | 90.7 | 77,704 | 90.5 | |||||||||||||||||||||||||
International credit card: | |||||||||||||||||||||||||||||
Canada | 4,443 | 5.4 | 4,747 | 5.5 | |||||||||||||||||||||||||
United Kingdom | 3,180 | 3.9 | 3,425 | 4 | |||||||||||||||||||||||||
Total international credit card | 7,623 | 9.3 | 8,172 | 9.5 | |||||||||||||||||||||||||
Total credit card | $ | 81,754 | 100 | % | $ | 85,876 | 100 | % | |||||||||||||||||||||
Selected credit metrics(2): | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,425 | 2.97 | % | $ | 2,832 | 3.3 | % | |||||||||||||||||||||
90+ day delinquencies | 1,169 | 1.43 | 1,292 | 1.5 | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages by geographic region within the domestic and international credit card portfolios are calculated based on the total held for investment credit card loans as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Calculated by dividing delinquent credit card loans by the total balance of credit card loans held for investment as of the end of the reported period. | ||||||||||||||||||||||||||||
Table 4.4: Credit Card: Net Charge-offs | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 664 | 3.55 | % | $ | 700 | 4.01 | % | |||||||||||||||||||||
International credit card | 55 | 2.8 | 80 | 4.17 | |||||||||||||||||||||||||
Total credit card | $ | 719 | 3.48 | $ | 780 | 4.02 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period. | ||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||
Our consumer banking loan portfolio consists of auto, home loan and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends, such as unemployment rates, GDP, and home values, as well as customer liquidity, all of which can have a material effect on credit performance. Delinquency, nonperforming loans and charge-off trends are key factors we assess in monitoring the credit quality and risk of our consumer banking loan portfolio. | |||||||||||||||||||||||||||||
The table below displays the geographic profile of our consumer banking loan portfolio, including Acquired Loans. We also present the delinquency and nonperforming loan rates of our consumer banking loan portfolio as of March 31, 2015 and December 31, 2014, and net charge-offs for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||
Table 4.5: Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total(1) | Amount | % of | |||||||||||||||||||||||||
Total(1) | |||||||||||||||||||||||||||||
Auto: | |||||||||||||||||||||||||||||
Texas | $ | 5,323 | 7.4 | % | $ | 5,248 | 7.4 | % | |||||||||||||||||||||
California | 4,248 | 6 | 4,081 | 5.7 | |||||||||||||||||||||||||
Florida | 2,919 | 4.1 | 2,737 | 3.8 | |||||||||||||||||||||||||
Georgia | 2,124 | 3 | 2,066 | 2.9 | |||||||||||||||||||||||||
Louisiana | 1,820 | 2.5 | 1,773 | 2.5 | |||||||||||||||||||||||||
Illinois | 1,722 | 2.4 | 1,676 | 2.4 | |||||||||||||||||||||||||
Ohio | 1,607 | 2.2 | 1,566 | 2.2 | |||||||||||||||||||||||||
Other | 19,174 | 26.9 | 18,677 | 26.1 | |||||||||||||||||||||||||
Total auto | 38,937 | 54.5 | 37,824 | 53 | |||||||||||||||||||||||||
Home loan: | |||||||||||||||||||||||||||||
California | 6,696 | 9.4 | 6,943 | 9.7 | |||||||||||||||||||||||||
New York | 2,387 | 3.3 | 2,452 | 3.4 | |||||||||||||||||||||||||
Illinois | 1,792 | 2.5 | 1,873 | 2.6 | |||||||||||||||||||||||||
Maryland | 1,674 | 2.3 | 1,720 | 2.4 | |||||||||||||||||||||||||
Virginia | 1,500 | 2.1 | 1,538 | 2.2 | |||||||||||||||||||||||||
New Jersey | 1,471 | 2.1 | 1,529 | 2.1 | |||||||||||||||||||||||||
Florida | 1,317 | 1.8 | 1,375 | 1.9 | |||||||||||||||||||||||||
Other | 12,068 | 17 | 12,605 | 17.7 | |||||||||||||||||||||||||
Total home loan | 28,905 | 40.5 | 30,035 | 42 | |||||||||||||||||||||||||
Retail banking: | |||||||||||||||||||||||||||||
Louisiana | 1,098 | 1.6 | 1,120 | 1.5 | |||||||||||||||||||||||||
New York | 873 | 1.2 | 881 | 1.2 | |||||||||||||||||||||||||
Texas | 749 | 1 | 756 | 1.1 | |||||||||||||||||||||||||
New Jersey | 252 | 0.4 | 265 | 0.4 | |||||||||||||||||||||||||
Maryland | 165 | 0.2 | 167 | 0.2 | |||||||||||||||||||||||||
Virginia | 142 | 0.2 | 132 | 0.2 | |||||||||||||||||||||||||
California | 50 | 0.1 | 52 | 0.1 | |||||||||||||||||||||||||
Other | 208 | 0.3 | 207 | 0.3 | |||||||||||||||||||||||||
Total retail banking | 3,537 | 5 | 3,580 | 5 | |||||||||||||||||||||||||
Total consumer banking | $ | 71,379 | 100 | % | $ | 71,439 | 100 | % | |||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Auto | Home Loan | Retail Banking | Total Consumer | ||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate(2) | Amount | Rate | Amount | Rate(2) | |||||||||||||||||||||
Credit performance: | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,149 | 5.52 | % | $ | 282 | 0.97 | % | $ | 40 | 1.12 | % | $ | 2,471 | 3.46 | % | |||||||||||||
90+ day delinquencies | 120 | 0.31 | 208 | 0.72 | 14 | 0.4 | 342 | 0.48 | |||||||||||||||||||||
Nonperforming loans | 120 | 0.31 | 336 | 1.16 | 25 | 0.71 | 481 | 0.67 | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Auto | Home Loan | Retail Banking | Total Consumer | ||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate(2) | Amount | Rate | Amount | Rate(2) | |||||||||||||||||||||
Credit performance: | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,682 | 7.09 | % | $ | 302 | 1.01 | % | $ | 40 | 1.11 | % | $ | 3,024 | 4.23 | % | |||||||||||||
90+ day delinquencies | 197 | 0.52 | 218 | 0.73 | 16 | 0.44 | 431 | 0.6 | |||||||||||||||||||||
Nonperforming loans | 197 | 0.52 | 330 | 1.1 | 22 | 0.61 | 549 | 0.77 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages by geographic region are calculated based on the total held for investment consumer banking loans as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Excluding the impact of Acquired Loans, the 30+ day delinquency rates, 90+ day delinquency rates, and the nonperforming loans rates for home loan portfolio were 4.15%, 3.06% and 4.94% as of March 31, 2015; and 4.45%, 3.21% and 4.86% as of December 31, 2014; and for total Consumer Banking were 5.02%, 0.70% and 0.98% as of March 31, 2015; and 6.28%, 0.89% and 1.14% as of December 31, 2014. | ||||||||||||||||||||||||||||
Table 4.6: Consumer Banking: Net Charge-offs | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||||
Auto | $ | 148 | 1.55 | % | $ | 134 | 1.66 | % | |||||||||||||||||||||
Home loan | 2 | 0.03 | 5 | 0.06 | |||||||||||||||||||||||||
Retail banking | 9 | 0.96 | 9 | 0.95 | |||||||||||||||||||||||||
Total consumer banking | $ | 159 | 0.89 | $ | 148 | 0.84 | |||||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||
(1) | Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period. Excluding the impact of Acquired Loans, the net charge-off rates for our home loan portfolio and total consumer banking were 0.11% and 1.30%, respectively, for the three months ended March 31, 2015, compared to 0.29% and 1.37%, respectively, for the three months ended March 31, 2014. | ||||||||||||||||||||||||||||
Home Loan | |||||||||||||||||||||||||||||
Our home loan portfolio consists of both first-lien and second-lien residential mortgage loans. In evaluating the credit quality and risk of our home loan portfolio, we continually monitor a variety of mortgage loan characteristics that may affect the default experience on our overall home loan portfolio, such as vintage, geographic concentrations, lien priority and product type. Certain loan concentrations have experienced higher delinquency rates as a result of the significant decline in home prices since the peak in 2006 and subsequent rise in unemployment. These loan concentrations include loans originated between 2006 and 2008 in an environment of decreasing home sales, broadly declining home prices and more relaxed underwriting standards. | |||||||||||||||||||||||||||||
The following table presents the distribution of our home loan portfolio as of March 31, 2015 and December 31, 2014, based on selected key risk characteristics. | |||||||||||||||||||||||||||||
Table 4.7: Home Loan: Risk Profile by Vintage, Geography, Lien Priority and Interest Rate Type | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Loans | Acquired Loans | Total Home Loans | |||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||||
Total(1) | Total(1) | Total(1) | |||||||||||||||||||||||||||
Origination year:(2) | |||||||||||||||||||||||||||||
< =006 | $ | 2,706 | 9.4 | % | $ | 5,520 | 19.1 | % | $ | 8,226 | 28.5 | % | |||||||||||||||||
2007 | 309 | 1.1 | 4,648 | 16 | 4,957 | 17.1 | |||||||||||||||||||||||
2008 | 178 | 0.6 | 3,337 | 11.6 | 3,515 | 12.2 | |||||||||||||||||||||||
2009 | 104 | 0.4 | 1,870 | 6.4 | 1,974 | 6.8 | |||||||||||||||||||||||
2010 | 113 | 0.4 | 2,864 | 9.9 | 2,977 | 10.3 | |||||||||||||||||||||||
2011 | 208 | 0.7 | 3,251 | 11.3 | 3,459 | 12 | |||||||||||||||||||||||
2012 | 1,536 | 5.3 | 500 | 1.7 | 2,036 | 7 | |||||||||||||||||||||||
2013 | 633 | 2.2 | 81 | 0.3 | 714 | 2.5 | |||||||||||||||||||||||
2014 | 734 | 2.5 | 35 | 0.1 | 769 | 2.6 | |||||||||||||||||||||||
2015 | 270 | 0.9 | 8 | 0.1 | 278 | 1 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Geographic concentration:(3) | |||||||||||||||||||||||||||||
California | $ | 931 | 3.2 | % | $ | 5,765 | 19.9 | % | $ | 6,696 | 23.1 | % | |||||||||||||||||
New York | 1,363 | 4.7 | 1,024 | 3.5 | 2,387 | 8.2 | |||||||||||||||||||||||
Illinois | 93 | 0.3 | 1,699 | 5.9 | 1,792 | 6.2 | |||||||||||||||||||||||
Maryland | 464 | 1.6 | 1,210 | 4.2 | 1,674 | 5.8 | |||||||||||||||||||||||
Virginia | 395 | 1.3 | 1,105 | 3.9 | 1,500 | 5.2 | |||||||||||||||||||||||
New Jersey | 337 | 1.2 | 1,134 | 3.9 | 1,471 | 5.1 | |||||||||||||||||||||||
Florida | 162 | 0.6 | 1,155 | 4 | 1,317 | 4.6 | |||||||||||||||||||||||
Arizona | 90 | 0.3 | 1,165 | 4 | 1,255 | 4.3 | |||||||||||||||||||||||
Louisiana | 1,171 | 4.1 | 36 | 0.1 | 1,207 | 4.2 | |||||||||||||||||||||||
Washington | 105 | 0.4 | 985 | 3.4 | 1,090 | 3.8 | |||||||||||||||||||||||
Other | 1,680 | 5.8 | 6,836 | 23.7 | 8,516 | 29.5 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Lien type: | |||||||||||||||||||||||||||||
1st lien | $ | 5,776 | 20 | % | $ | 21,766 | 75.3 | % | $ | 27,542 | 95.3 | % | |||||||||||||||||
2nd lien | 1,015 | 3.5 | 348 | 1.2 | 1,363 | 4.7 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Interest rate type: | |||||||||||||||||||||||||||||
Fixed rate | $ | 2,513 | 8.7 | % | $ | 2,702 | 9.3 | % | $ | 5,215 | 18 | % | |||||||||||||||||
Adjustable rate | 4,278 | 14.8 | 19,412 | 67.2 | 23,690 | 82 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Loans | Acquired Loans | Total Home Loans | |||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||||
Total(1) | Total(1) | Total(1) | |||||||||||||||||||||||||||
Origination year:(2) | |||||||||||||||||||||||||||||
< =006 | $ | 2,827 | 9.4 | % | $ | 5,715 | 19.1 | % | $ | 8,542 | 28.5 | % | |||||||||||||||||
2007 | 320 | 1.1 | 4,766 | 15.8 | 5,086 | 16.9 | |||||||||||||||||||||||
2008 | 187 | 0.6 | 3,494 | 11.7 | 3,681 | 12.3 | |||||||||||||||||||||||
2009 | 107 | 0.4 | 1,999 | 6.6 | 2,106 | 7 | |||||||||||||||||||||||
2010 | 120 | 0.4 | 3,108 | 10.3 | 3,228 | 10.7 | |||||||||||||||||||||||
2011 | 221 | 0.7 | 3,507 | 11.7 | 3,728 | 12.4 | |||||||||||||||||||||||
2012 | 1,620 | 5.4 | 533 | 1.8 | 2,153 | 7.2 | |||||||||||||||||||||||
2013 | 661 | 2.2 | 85 | 0.3 | 746 | 2.5 | |||||||||||||||||||||||
2014 | 731 | 2.4 | 34 | 0.1 | 765 | 2.5 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Geographic concentration:(3) | |||||||||||||||||||||||||||||
California | $ | 924 | 3.1 | % | $ | 6,019 | 20 | % | $ | 6,943 | 23.1 | % | |||||||||||||||||
New York | 1,379 | 4.6 | 1,073 | 3.6 | 2,452 | 8.2 | |||||||||||||||||||||||
Illinois | 86 | 0.3 | 1,787 | 5.9 | 1,873 | 6.2 | |||||||||||||||||||||||
Maryland | 457 | 1.5 | 1,263 | 4.2 | 1,720 | 5.7 | |||||||||||||||||||||||
Virginia | 385 | 1.3 | 1,153 | 3.8 | 1,538 | 5.1 | |||||||||||||||||||||||
New Jersey | 341 | 1.1 | 1,188 | 4 | 1,529 | 5.1 | |||||||||||||||||||||||
Florida | 161 | 0.5 | 1,214 | 4.1 | 1,375 | 4.6 | |||||||||||||||||||||||
Arizona | 89 | 0.3 | 1,215 | 4.1 | 1,304 | 4.4 | |||||||||||||||||||||||
Louisiana | 1,205 | 4 | 38 | 0.1 | 1,243 | 4.1 | |||||||||||||||||||||||
Washington | 109 | 0.4 | 1,038 | 3.4 | 1,147 | 3.8 | |||||||||||||||||||||||
Other | 1,658 | 5.5 | 7,253 | 24.2 | 8,911 | 29.7 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Lien type: | |||||||||||||||||||||||||||||
1st lien | $ | 5,756 | 19.2 | % | $ | 22,883 | 76.2 | % | $ | 28,639 | 95.4 | % | |||||||||||||||||
2nd lien | 1,038 | 3.4 | 358 | 1.2 | 1,396 | 4.6 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Interest rate type: | |||||||||||||||||||||||||||||
Fixed rate | $ | 2,446 | 8.1 | % | $ | 2,840 | 9.5 | % | $ | 5,286 | 17.6 | % | |||||||||||||||||
Adjustable rate | 4,348 | 14.5 | 20,401 | 67.9 | 24,749 | 82.4 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages within each risk category are calculated based on total home loans held for investment. | ||||||||||||||||||||||||||||
(2) | The Acquired Loans origination balances in the years subsequent to 2012 are related to refinancing of previously acquired home loans. | ||||||||||||||||||||||||||||
(3) | Represents the ten states in which we have the highest concentration of home loans. | ||||||||||||||||||||||||||||
Our recorded investment in home loans for properties that are in process of foreclosure was $583 million as of March 31, 2015. We commence the foreclosure process on home loans when a borrower becomes at least 120 days delinquent in accordance with Consumer Financial Protection Bureau regulations. Foreclosure procedures and time lines vary according to state law. As of March 31, 2015 and December 31, 2014, the carrying value of the foreclosed residential real estate properties which we hold and report as other assets on our consolidated balance sheet totaled $133 million and $131 million, respectively. | |||||||||||||||||||||||||||||
Commercial Banking | |||||||||||||||||||||||||||||
We evaluate the credit risk of commercial loans individually and use a risk-rating system to determine the credit quality of our commercial loans. We assign internal risk ratings to loans based on relevant information about the ability of borrowers to service their debt. In determining the risk rating of a particular loan, among the factors considered are the borrower’s current financial condition, historical credit performance, projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The ratings scale based on our internal risk-rating system is as follows: | |||||||||||||||||||||||||||||
• | Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans. | ||||||||||||||||||||||||||||
• | Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date. | ||||||||||||||||||||||||||||
• | Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status. | ||||||||||||||||||||||||||||
We use our internal risk-rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for loan and lease losses for commercial loans. Loans of $1 million or more designated as criticized performing and criticized nonperforming are reviewed quarterly by management for further deterioration or improvement to determine if they are appropriately classified/graded and whether impairment exists. Noncriticized loans greater than $1 million are specifically reviewed, at least annually, to determine the appropriate loan grading. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due. | |||||||||||||||||||||||||||||
The following table presents the geographic distribution and internal risk ratings of our commercial loan portfolio as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||
Table 4.8: Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | Commercial | % of | Commercial | % of | Small-ticket | % of | Total | % of | |||||||||||||||||||||
and | Total(1) | and | Total(1) | Commercial | Total(1) | Commercial Banking | Total(1) | ||||||||||||||||||||||
Multifamily | Industrial | Real Estate | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Geographic concentration:(2) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Northeast | $ | 14,677 | 64.3 | % | $ | 6,448 | 23.7 | % | $ | 452 | 61.2 | % | $ | 21,577 | 42.5 | % | |||||||||||||
Mid-Atlantic | 2,578 | 11.3 | 2,138 | 7.9 | 28 | 3.8 | 4,744 | 9.3 | |||||||||||||||||||||
South | 3,375 | 14.8 | 12,133 | 44.7 | 46 | 6.2 | 15,554 | 30.7 | |||||||||||||||||||||
Other | 2,201 | 9.6 | 6,453 | 23.7 | 212 | 28.8 | 8,866 | 17.5 | |||||||||||||||||||||
Total | $ | 22,831 | 100 | % | $ | 27,172 | 100 | % | $ | 738 | 100 | % | $ | 50,741 | 100 | % | |||||||||||||
Internal risk rating:(3) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Noncriticized | $ | 22,283 | 97.6 | % | $ | 25,933 | 95.4 | % | $ | 722 | 97.8 | % | $ | 48,938 | 96.5 | % | |||||||||||||
Criticized performing | 508 | 2.2 | 1,133 | 4.2 | 4 | 0.6 | 1,645 | 3.2 | |||||||||||||||||||||
Criticized nonperforming | 40 | 0.2 | 106 | 0.4 | 12 | 1.6 | 158 | 0.3 | |||||||||||||||||||||
Total | $ | 22,831 | 100 | % | $ | 27,172 | 100 | % | $ | 738 | 100 | % | $ | 50,741 | 100 | % | |||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Commercial | % of | Commercial | % of | Small-ticket | % of | Total | % of | |||||||||||||||||||||
and | Total(1) | and | Total(1) | Commercial | Total(1) | Commercial Banking | Total(1) | ||||||||||||||||||||||
Multifamily | Industrial | Real Estate | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Geographic concentration:(2) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Northeast | $ | 15,135 | 65.4 | % | $ | 6,384 | 23.7 | % | $ | 478 | 61.2 | % | $ | 21,997 | 43.2 | % | |||||||||||||
Mid-Atlantic | 2,491 | 10.8 | 2,121 | 7.9 | 30 | 3.8 | 4,642 | 9.1 | |||||||||||||||||||||
South | 3,070 | 13.3 | 12,310 | 45.6 | 48 | 6.2 | 15,428 | 30.3 | |||||||||||||||||||||
Other | 2,441 | 10.5 | 6,157 | 22.8 | 225 | 28.8 | 8,823 | 17.4 | |||||||||||||||||||||
Total | $ | 23,137 | 100 | % | $ | 26,972 | 100 | % | $ | 781 | 100 | % | $ | 50,890 | 100 | % | |||||||||||||
Internal risk rating:(3) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Noncriticized | $ | 22,535 | 97.4 | % | $ | 25,982 | 96.3 | % | $ | 767 | 98.2 | % | $ | 49,284 | 96.9 | % | |||||||||||||
Criticized performing | 540 | 2.3 | 884 | 3.3 | 7 | 0.9 | 1,431 | 2.8 | |||||||||||||||||||||
Criticized nonperforming | 62 | 0.3 | 106 | 0.4 | 7 | 0.9 | 175 | 0.3 | |||||||||||||||||||||
Total | $ | 23,137 | 100 | % | $ | 26,972 | 100 | % | $ | 781 | 100 | % | $ | 50,890 | 100 | % | |||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages calculated based on total held for investment commercial loans in each respective loan category as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Northeast consists of CT, ME, MA, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DE, DC, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MS, MO, NC, SC, TN and TX. | ||||||||||||||||||||||||||||
(3) | Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by banking regulatory authorities. | ||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
The following table presents information about our impaired loans, excluding the impact of Acquired Loans, which is reported separately as of March 31, 2015 and December 31, 2014, and for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Table 4.9: Impaired Loans(1) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | With an | Without | Total | Related | Net | Unpaid | |||||||||||||||||||||||
Allowance | an | Recorded | Allowance | Recorded | Principal | ||||||||||||||||||||||||
Allowance | Investment | Investment | Balance | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 538 | $ | 0 | $ | 538 | $ | 143 | $ | 395 | $ | 523 | |||||||||||||||||
International credit card | 135 | 0 | 135 | 67 | 68 | 130 | |||||||||||||||||||||||
Total credit card(2) | 673 | 0 | 673 | 210 | 463 | 653 | |||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 249 | 204 | 453 | 22 | 431 | 717 | |||||||||||||||||||||||
Home loan | 219 | 146 | 365 | 16 | 349 | 467 | |||||||||||||||||||||||
Retail banking | 46 | 8 | 54 | 9 | 45 | 57 | |||||||||||||||||||||||
Total consumer banking | 514 | 358 | 872 | 47 | 825 | 1,241 | |||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 107 | 13 | 120 | 19 | 101 | 134 | |||||||||||||||||||||||
Commercial and industrial | 144 | 67 | 211 | 13 | 198 | 231 | |||||||||||||||||||||||
Total commercial lending | 251 | 80 | 331 | 32 | 299 | 365 | |||||||||||||||||||||||
Small-ticket commercial real estate | 4 | 9 | 13 | 0 | 13 | 15 | |||||||||||||||||||||||
Total commercial banking | 255 | 89 | 344 | 32 | 312 | 380 | |||||||||||||||||||||||
Total | $ | 1,442 | $ | 447 | $ | 1,889 | $ | 289 | $ | 1,600 | $ | 2,274 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | With an | Without | Total | Related | Net | Unpaid | |||||||||||||||||||||||
Allowance | an | Recorded | Allowance | Recorded | Principal | ||||||||||||||||||||||||
Allowance | Investment | Investment | Balance | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 546 | $ | 0 | $ | 546 | $ | 145 | $ | 401 | $ | 531 | |||||||||||||||||
International credit card | 146 | 0 | 146 | 74 | 72 | 141 | |||||||||||||||||||||||
Total credit card(2) | 692 | 0 | 692 | 219 | 473 | 672 | |||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 230 | 205 | 435 | 19 | 416 | 694 | |||||||||||||||||||||||
Home loan | 218 | 149 | 367 | 17 | 350 | 472 | |||||||||||||||||||||||
Retail banking | 45 | 5 | 50 | 6 | 44 | 52 | |||||||||||||||||||||||
Total consumer banking | 493 | 359 | 852 | 42 | 810 | 1,218 | |||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 120 | 26 | 146 | 23 | 123 | 163 | |||||||||||||||||||||||
Commercial and industrial | 161 | 55 | 216 | 16 | 200 | 233 | |||||||||||||||||||||||
Total commercial lending | 281 | 81 | 362 | 39 | 323 | 396 | |||||||||||||||||||||||
Small-ticket commercial real estate | 3 | 5 | 8 | 0 | 8 | 10 | |||||||||||||||||||||||
Total commercial banking | 284 | 86 | 370 | 39 | 331 | 406 | |||||||||||||||||||||||
Total | $ | 1,469 | $ | 445 | $ | 1,914 | $ | 300 | $ | 1,614 | $ | 2,296 | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Average | Interest | Average | Interest | |||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 542 | $ | 14 | $ | 596 | $ | 15 | |||||||||||||||||||||
International credit card | 141 | 2 | 169 | 3 | |||||||||||||||||||||||||
Total credit card(2) | 683 | 16 | 765 | 18 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 444 | 21 | 363 | 17 | |||||||||||||||||||||||||
Home loan | 366 | 1 | 402 | 1 | |||||||||||||||||||||||||
Retail banking | 52 | 0 | 83 | 1 | |||||||||||||||||||||||||
Total consumer banking | 862 | 22 | 848 | 19 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 133 | 1 | 169 | 2 | |||||||||||||||||||||||||
Commercial and industrial | 213 | 1 | 179 | 1 | |||||||||||||||||||||||||
Total commercial lending | 346 | 2 | 348 | 3 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 10 | 0 | 7 | 0 | |||||||||||||||||||||||||
Total commercial banking | 356 | 2 | 355 | 3 | |||||||||||||||||||||||||
Total | $ | 1,901 | $ | 40 | $ | 1,968 | $ | 40 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Impaired loans include loans modified in TDRs, all nonperforming commercial loans, and nonperforming home loans with a specific impairment. | ||||||||||||||||||||||||||||
(2) | Credit card loans include finance charges and fees. | ||||||||||||||||||||||||||||
(3) | Although auto loans from loan recovery inventory are not reported in our loans held for investment, they are included as impaired loans above since they are reported as TDRs. | ||||||||||||||||||||||||||||
Loans modified in TDRs accounted for $1.6 billion and $1.7 billion of the impaired loans presented above as of March 31, 2015 and December 31, 2014, respectively. Consumer TDRs classified as performing totaled $1.0 billion as of both March 31, 2015 and December 31, 2014. Commercial TDRs classified as performing totaled $186 million and $194 million as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||
As part of our loan modifications to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following tables present the types, recorded investment amounts and financial effects of loans modified in TDRs during for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Table 4.10: Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Total | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||
Loans | Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||
(Dollars in millions) | Modified(1) | % of | Average | % of | Average | % of | Gross | ||||||||||||||||||||||
TDR | Rate | TDR | Term | TDR | Balance | ||||||||||||||||||||||||
Activity(2)(3) | Reduction(4) | Activity(3)(5) | Extension | Activity(3)(7) | Reduction(8) | ||||||||||||||||||||||||
(Months)(6) | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 72 | 100 | % | 12.13 | % | 0 | % | 0 | 0 | % | $ | 0 | ||||||||||||||||
International credit card | 32 | 100 | 25.79 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total credit card | 104 | 100 | 16.39 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 88 | 41 | 1.71 | 71 | 9 | 28 | 22 | ||||||||||||||||||||||
Home loan | 7 | 67 | 2.85 | 66 | 171 | 0 | 0 | ||||||||||||||||||||||
Retail banking | 5 | 61 | 9.36 | 91 | 4 | 0 | 0 | ||||||||||||||||||||||
Total consumer banking | 100 | 44 | 2.36 | 72 | 20 | 24 | 22 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 3 | 0 | 0 | 100 | 35 | 77 | 1 | ||||||||||||||||||||||
Commercial and industrial | 21 | 0 | 2.02 | 3 | 7 | 0 | 0 | ||||||||||||||||||||||
Total commercial lending | 24 | 0 | 2.02 | 13 | 29 | 8 | 1 | ||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total commercial banking | 24 | 0 | 2.02 | 13 | 29 | 8 | 1 | ||||||||||||||||||||||
Total | $ | 228 | 65 | 12.19 | 33 | 20 | 12 | $ | 23 | ||||||||||||||||||||
Total | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Loans | Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||
(Dollars in millions) | Modified(1) | % of | Average | % of | Average | % of | Gross | ||||||||||||||||||||||
TDR | Rate | TDR | Term | TDR | Balance | ||||||||||||||||||||||||
Activity(2)(3) | Reduction(4) | Activity(3)(5) | Extension | Activity(3)(7) | Reduction(8) | ||||||||||||||||||||||||
(Months)(6) | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 67 | 100 | % | 11.5 | % | 0 | % | 0 | 0 | % | $ | 0 | ||||||||||||||||
International credit card | 43 | 100 | 25.2 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total credit card | 110 | 100 | 16.82 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 77 | 40 | 0.94 | 67 | 9 | 32 | 22 | ||||||||||||||||||||||
Home loan | 8 | 19 | 1.25 | 30 | 138 | 13 | 1 | ||||||||||||||||||||||
Retail banking | 6 | 8 | 4.01 | 59 | 6 | 0 | 0 | ||||||||||||||||||||||
Total consumer banking | 91 | 36 | 1 | 63 | 14 | 29 | 23 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 62 | 33 | 1.37 | 100 | 8 | 0 | 0 | ||||||||||||||||||||||
Commercial and industrial | 1 | 0 | 0 | 64 | 11 | 0 | 0 | ||||||||||||||||||||||
Total commercial lending | 63 | 33 | 1.37 | 99 | 8 | 0 | 0 | ||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total commercial banking | 63 | 33 | 1.37 | 99 | 8 | 0 | 0 | ||||||||||||||||||||||
Total | $ | 264 | 62 | 11.7 | 46 | 11 | 10 | $ | 23 | ||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Represents total loans modified and accounted for as TDRs during the period. Paydowns, net charge-offs and any other changes in the loan carrying value subsequent to the loan entering TDR status are not reflected. | ||||||||||||||||||||||||||||
(2) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted a reduced interest rate. | ||||||||||||||||||||||||||||
(3) | Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types. | ||||||||||||||||||||||||||||
(4) | Represents weighted average interest rate reduction for those loans that received an interest rate concession. | ||||||||||||||||||||||||||||
(5) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted a maturity date extension. | ||||||||||||||||||||||||||||
(6) | Represents weighted average change in maturity date for those loans that received a maturity date extension. | ||||||||||||||||||||||||||||
(7) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted forgiveness or forbearance of a portion of their balance. | ||||||||||||||||||||||||||||
(8) | Total amount represents the gross balance forgiven. For loans modified in bankruptcy, the gross balance reduction represents collateral value write downs associated with the discharge of the borrower’s obligations. | ||||||||||||||||||||||||||||
TDR—Subsequent Defaults of Completed TDR Modifications | |||||||||||||||||||||||||||||
The following table presents the type, number and recorded investment amount of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged-off as of the end of the period presented, or has been reclassified from accrual to nonaccrual status. | |||||||||||||||||||||||||||||
Table 4.11: TDR - Subsequent Defaults | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Number of | Amount | Number of | Amount | |||||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | 9,667 | $ | 16 | 11,061 | $ | 16 | |||||||||||||||||||||||
International credit card(1) | 8,548 | 20 | 10,521 | 30 | |||||||||||||||||||||||||
Total credit card | 18,215 | 36 | 21,582 | 46 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 1,747 | 20 | 1,322 | 13 | |||||||||||||||||||||||||
Home loan | 5 | 0 | 6 | 2 | |||||||||||||||||||||||||
Retail banking | 10 | 1 | 25 | 7 | |||||||||||||||||||||||||
Total consumer banking | 1,762 | 21 | 1,353 | 22 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 0 | 0 | 3 | 6 | |||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 0 | |||||||||||||||||||||||||
Total commercial lending | 0 | 0 | 4 | 6 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 6 | 2 | |||||||||||||||||||||||||
Total commercial banking | 0 | 0 | 10 | 8 | |||||||||||||||||||||||||
Total | 19,977 | $ | 57 | 22,945 | $ | 76 | |||||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||
(1) | The regulatory regime in the U.K. requires U.K. credit card businesses to accept payment plan proposals even when the proposed payments are less than the contractual minimum amount. As a result, loans entering long-term TDR payment programs in the U.K. typically continue to age and ultimately charge-off even when fully in compliance with the TDR program terms. | ||||||||||||||||||||||||||||
Acquired Loans Accounted for Based on Expected Cash Flows | |||||||||||||||||||||||||||||
Outstanding Balance and Carrying Value of Acquired Loans | |||||||||||||||||||||||||||||
The table below presents the outstanding balance and the carrying value of loans from the ING Direct, CCB and 2012 U.S. card acquisitions accounted for based on expected cash flows as of March 31, 2015 and December 31, 2014. The table separately displays loans considered credit-impaired at acquisition and loans not considered credit-impaired at acquisition. | |||||||||||||||||||||||||||||
Table 4.12: Acquired Loans Accounted for Based on Expected Cash Flows | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Total | Impaired | Non-Impaired | Total | Impaired | Non-Impaired | |||||||||||||||||||||||
Loans | Loans | Loans | Loans | ||||||||||||||||||||||||||
Outstanding balance | $ | 24,037 | $ | 4,184 | $ | 19,853 | $ | 25,201 | $ | 4,279 | $ | 20,922 | |||||||||||||||||
Carrying value(1) | 22,343 | 2,808 | 19,535 | 23,519 | 2,882 | 20,637 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Includes $34 million and $27 million of allowance for loan and lease losses for these loans as of March 31, 2015 and December 31, 2014, respectively. We recorded a $7 million provision and $2 million release of allowance for credit losses for the three months ended March 31, 2015 and 2014, respectively, for certain pools of Acquired Loans. | ||||||||||||||||||||||||||||
Changes in Accretable Yield | |||||||||||||||||||||||||||||
The following table presents changes in the accretable yield on loans related to the CCB, ING Direct, and 2012 U.S. card acquisitions: | |||||||||||||||||||||||||||||
Table 4.13: Changes in Accretable Yield on Acquired Loans | |||||||||||||||||||||||||||||
(Dollars in millions) | Total | Impaired | Non-Impaired | ||||||||||||||||||||||||||
Loans | Loans | Loans | |||||||||||||||||||||||||||
Accretable yield as of December 31, 2014 | $ | 4,653 | $ | 1,485 | $ | 3,168 | |||||||||||||||||||||||
Accretion recognized in earnings | (237 | ) | (87 | ) | (150 | ) | |||||||||||||||||||||||
Reclassifications from (to) nonaccretable difference for loans with changing cash flows(1) | 35 | 45 | (10 | ) | |||||||||||||||||||||||||
Changes in accretable yield for non-credit related changes in expected cash flows(2) | 110 | 84 | 26 | ||||||||||||||||||||||||||
Accretable yield as of March 31, 2015 | $ | 4,561 | $ | 1,527 | $ | 3,034 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Represents changes in accretable yield for those loans in pools that are driven primarily by credit performance. | ||||||||||||||||||||||||||||
(2) | Represents changes in accretable yield for those loans in pools that are driven primarily by changes in actual and estimated prepayments. | ||||||||||||||||||||||||||||
Unfunded Lending Commitments | |||||||||||||||||||||||||||||
We manage the potential risk in credit commitments by limiting the total amount of arrangements, both by individual customer and in total, by monitoring the size and maturity structure of these portfolios and by applying the same credit standards for all of our credit activities. Unused credit card lines available to our customers totaled $296.6 billion and $292.9 billion as of March 31, 2015 and December 31, 2014, respectively. While these amounts represented the total available unused credit card lines, we have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. | |||||||||||||||||||||||||||||
In addition to available unused credit card lines, we enter into commitments to extend credit that are legally binding conditional agreements having fixed expirations or termination dates and specified interest rates and purposes. These commitments generally require customers to maintain certain credit standards. Collateral requirements and loan-to-value (“LTV”) ratios are the same as those for funded transactions and are established based on management’s credit assessment of the customer. These commitments may expire without being drawn upon; therefore, the total commitment amount does not necessarily represent future funding requirements. The outstanding unfunded commitments to extend credit, other than credit card lines, were approximately $22.7 billion and $23.6 billion as of March 31, 2015 and December 31, 2014, respectively. |
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loans and Lease Losses | |||||||||||||||||||||||||||||||||||||||||
NOTE 5—ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||||||||||
Our allowance for loan and lease losses represents management’s best estimate of incurred loan and lease losses inherent in our loans held for investment portfolio as of each balance sheet date. In addition to the allowance for loan and lease losses, we also estimate probable losses related to unfunded lending commitments, such as letters of credit, financial guarantees, and binding unfunded loan commitments. The provision for unfunded lending commitments is included in the provision for credit losses in our consolidated statements of income and the related reserve for unfunded lending commitments is included in other liabilities on our consolidated balance sheets. See “Note 1—Summary of Significant Accounting Policies” of our 2014 Form 10-K for further discussion on the methodology and policy for determining our allowance for loan and lease losses for each of our loan portfolio segments. | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses Activity | |||||||||||||||||||||||||||||||||||||||||
The allowance for loan and lease losses is increased through the provision for credit losses and reduced by net charge-offs. The provision for credit losses, which is recorded in earnings, reflects credit losses we believe have been incurred and will eventually be reflected over time in our net charge-offs. Charge-offs of uncollectible amounts are deducted from the allowance for loan and lease losses and subsequent recoveries are included. | |||||||||||||||||||||||||||||||||||||||||
We have certain credit card partnership arrangements in which our partner agrees to share in a portion of the credit losses associated with the partnership. The loss sharing amounts due from our partners resulted in reductions in reported charge-offs of $44 million and $42 million for the three months ended March 31, 2015 and 2014, respectively, and reductions in the provision for loan and lease losses of $57 million and $35 million for the three months ended March 31, 2015 and 2014, respectively. The expected reimbursement from these partners, which is netted against our allowance for loan and lease losses, was approximately $156 million and $143 million as of March 31, 2015 and December 31, 2014, respectively. See “Note 1—Summary of Significant Accounting Policies” of our 2014 Form 10-K for further discussion on our card partnership agreements. | |||||||||||||||||||||||||||||||||||||||||
The table below summarizes changes in the allowance for loan and lease losses, by portfolio segment, for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||||||||||||||
Table 5.1: Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||||||||||||
Credit | Consumer Banking | Commercial Banking | Other(1) | Total | Unfunded | Combined | |||||||||||||||||||||||||||||||||||
Card | Allowance | Lending | Allowance | ||||||||||||||||||||||||||||||||||||||
Commitments | & | ||||||||||||||||||||||||||||||||||||||||
Reserve | Unfunded | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Auto | Home | Retail | Total | Reserve | ||||||||||||||||||||||||||||||||||||
Loan | Banking | Consumer | |||||||||||||||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 3,204 | $ | 661 | $ | 62 | $ | 56 | $ | 779 | $ | 395 | $ | 5 | $ | 4,383 | $ | 113 | $ | 4,496 | |||||||||||||||||||||
Provision for credit losses | 669 | 184 | 8 | 14 | 206 | 52 | 0 | 927 | 8 | 935 | |||||||||||||||||||||||||||||||
Charge-offs | (1,022 | ) | (233 | ) | (4 | ) | (13 | ) | (250 | ) | (9 | ) | (3 | ) | (1,284 | ) | 0 | (1,284 | ) | ||||||||||||||||||||||
Recoveries | 303 | 85 | 2 | 4 | 91 | 6 | 3 | 403 | 0 | 403 | |||||||||||||||||||||||||||||||
Net charge-offs | (719 | ) | (148 | ) | (2 | ) | (9 | ) | (159 | ) | (3 | ) | 0 | (881 | ) | 0 | (881 | ) | |||||||||||||||||||||||
Other changes(2) | (24 | ) | 0 | 0 | 0 | 0 | 0 | 0 | (24 | ) | 0 | (24 | ) | ||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 3,130 | $ | 697 | $ | 68 | $ | 61 | $ | 826 | $ | 444 | $ | 5 | $ | 4,405 | $ | 121 | $ | 4,526 | |||||||||||||||||||||
Credit | Consumer Banking | Commercial Banking | Other(1) | Total | Unfunded | Combined | |||||||||||||||||||||||||||||||||||
Card | Allowance | Lending | Allowance | ||||||||||||||||||||||||||||||||||||||
Commitments | & | ||||||||||||||||||||||||||||||||||||||||
Reserve | Unfunded | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Auto | Home | Retail | Total | Reserve | ||||||||||||||||||||||||||||||||||||
Loan | Banking | Consumer | |||||||||||||||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 3,214 | $ | 606 | $ | 83 | $ | 63 | $ | 752 | $ | 338 | $ | 11 | $ | 4,315 | $ | 87 | $ | 4,402 | |||||||||||||||||||||
Provision (benefit) for credit losses | 558 | 136 | (6 | ) | 10 | 140 | 28 | (3 | ) | 723 | 12 | 735 | |||||||||||||||||||||||||||||
Charge-offs | (1,095 | ) | (205 | ) | (11 | ) | (15 | ) | (231 | ) | (7 | ) | (2 | ) | (1,335 | ) | 0 | (1,335 | ) | ||||||||||||||||||||||
Recoveries | 315 | 71 | 6 | 6 | 83 | 3 | 3 | 404 | 0 | 404 | |||||||||||||||||||||||||||||||
Net charge-offs | (780 | ) | (134 | ) | (5 | ) | (9 | ) | (148 | ) | (4 | ) | 1 | (931 | ) | 0 | (931 | ) | |||||||||||||||||||||||
Other changes(2) | (8 | ) | 0 | 0 | 0 | 0 | 0 | (1 | ) | (9 | ) | 0 | (9 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2014 | $ | 2,984 | $ | 608 | $ | 72 | $ | 64 | $ | 744 | $ | 362 | $ | 8 | $ | 4,098 | $ | 99 | $ | 4,197 | |||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||||||||||||||
(1) | Other consists of our discontinued GreenPoint mortgage operations loan portfolio and our community redevelopment loan portfolio. | ||||||||||||||||||||||||||||||||||||||||
(2) | Represents foreign currency translation adjustments and the net impact of loan transfers and sales. | ||||||||||||||||||||||||||||||||||||||||
Components of Allowance for Loan and Lease Losses by Impairment Methodology | |||||||||||||||||||||||||||||||||||||||||
The table below presents the components of our allowance for loan and lease losses, by portfolio segment and impairment methodology, and the recorded investment of the related loans as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
Table 5.2: Components of Allowance for Loan and Lease Losses by Impairment Methodology | |||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit | Auto | Home | Retail | Total | Commercial Banking | Other | Total | |||||||||||||||||||||||||||||||||
Card | Loan | Banking | Consumer Banking | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 2,920 | $ | 675 | $ | 19 | $ | 52 | $ | 746 | $ | 411 | $ | 5 | $ | 4,082 | |||||||||||||||||||||||||
Asset-specific(2) | 210 | 22 | 16 | 9 | 47 | 32 | 0 | 289 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 0 | 0 | 33 | 0 | 33 | 1 | 0 | 34 | |||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 3,130 | $ | 697 | $ | 68 | $ | 61 | $ | 826 | $ | 444 | $ | 5 | $ | 4,405 | |||||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 81,060 | $ | 38,688 | $ | 6,426 | $ | 3,444 | $ | 48,558 | $ | 50,237 | $ | 104 | $ | 179,959 | |||||||||||||||||||||||||
Asset-specific(2) | 673 | 249 | 365 | 54 | 668 | 344 | 0 | 1,685 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 21 | 0 | 22,114 | 39 | 22,153 | 160 | 0 | 22,334 | |||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 81,754 | $ | 38,937 | $ | 28,905 | $ | 3,537 | $ | 71,379 | $ | 50,741 | $ | 104 | $ | 203,978 | |||||||||||||||||||||||||
Allowance as a percentage of period-end loans held for investment | 3.83 | % | 1.79 | % | 0.23 | % | 1.74 | % | 1.16 | % | 0.87 | % | 4.48 | % | 2.16 | % | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit | Auto | Home | Retail | Total | Commercial Banking | Other | Total | |||||||||||||||||||||||||||||||||
Card | Loan | Banking | Consumer Banking | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 2,985 | $ | 642 | $ | 18 | $ | 50 | $ | 710 | $ | 356 | $ | 5 | $ | 4,056 | |||||||||||||||||||||||||
Asset-specific(2) | 219 | 19 | 17 | 6 | 42 | 39 | 0 | 300 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 0 | 0 | 27 | 0 | 27 | 0 | 0 | 27 | |||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 3,204 | $ | 661 | $ | 62 | $ | 56 | $ | 779 | $ | 395 | $ | 5 | $ | 4,383 | |||||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 85,161 | $ | 37,594 | $ | 6,427 | $ | 3,486 | $ | 47,507 | $ | 50,328 | $ | 111 | $ | 183,107 | |||||||||||||||||||||||||
Asset-specific(2) | 692 | 230 | 367 | 50 | 647 | 370 | 0 | 1,709 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 23 | 0 | 23,241 | 44 | 23,285 | 192 | 0 | 23,500 | |||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 85,876 | $ | 37,824 | $ | 30,035 | $ | 3,580 | $ | 71,439 | $ | 50,890 | $ | 111 | $ | 208,316 | |||||||||||||||||||||||||
Allowance as a percentage of period-end loans held for investment | 3.73 | % | 1.75 | % | 0.21 | % | 1.58 | % | 1.09 | % | 0.78 | % | 4.68 | % | 2.1 | % | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||
(1) | The component of the allowance for loan and lease losses for credit card and other consumer loans that we collectively evaluate for impairment is based on a statistical calculation supplemented by management judgment and interpretation. The component of the allowance for loan and lease losses for commercial loans, which we collectively evaluate for impairment, is based on historical loss experience for loans with similar characteristics and consideration of credit quality supplemented by management judgment and interpretation. | ||||||||||||||||||||||||||||||||||||||||
(2) | The asset-specific component of the allowance for loan and lease losses for smaller-balance impaired loans is calculated on a pool basis using historical loss experience for the respective class of assets. The asset-specific component of the allowance for loan and lease losses for larger-balance commercial loans is individually calculated for each loan. | ||||||||||||||||||||||||||||||||||||||||
(3) | The Acquired Loans component of the allowance for loan and lease losses is accounted for based on expected cash flows. See “Note 1—Summary of Significant Accounting Policies” in our 2014 Form 10-K for details on these loans. |
Variable_Interest_Entities_and
Variable Interest Entities and Securitizations | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Variable Interest Entities and Securitization [Abstract] | |||||||||||||||||||||
Variable Interest Entities and Securitizations | |||||||||||||||||||||
NOTE 6—VARIABLE INTEREST ENTITIES AND SECURITIZATIONS | |||||||||||||||||||||
In the normal course of business, we enter into various types of transactions with entities that are considered to be VIEs. Our primary involvement with VIEs has been related to our securitization transactions in which we transferred assets from our balance sheet to securitization trusts. We have primarily securitized credit card loans and home loans, which have provided a source of funding for us and enabled us to transfer a certain portion of the economic risk of the loans or debt securities to third parties. | |||||||||||||||||||||
The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The majority of the VIEs in which we are involved have been consolidated on our financial statements. | |||||||||||||||||||||
Summary of Consolidated and Unconsolidated VIEs | |||||||||||||||||||||
The table below presents a summary of VIEs, aggregated based on VIEs with similar characteristics, in which we had continuing involvement or held a variable interest as of March 31, 2015 and December 31, 2014. We separately present information for consolidated and unconsolidated VIEs. | |||||||||||||||||||||
For consolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets. The assets of consolidated VIEs primarily consist of cash and loans, which we report on our consolidated balance sheets under restricted cash and restricted loans, respectively, for securitization investors. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs typically do not have recourse to the general credit of the Company. The liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet our maximum remaining funding obligations. | |||||||||||||||||||||
Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs | |||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||
Consolidated | Unconsolidated | ||||||||||||||||||||
(Dollars in millions) | Carrying | Carrying | Carrying | Carrying | Maximum | ||||||||||||||||
Amount | Amount of | Amount | Amount of | Exposure to | |||||||||||||||||
of Assets | Liabilities | of Assets | Liabilities | Loss | |||||||||||||||||
Securitization-related VIEs: | |||||||||||||||||||||
Credit card loan securitizations(1) | $ | 34,172 | $ | 13,425 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Home loan securitizations(2) | 0 | 0 | 223 | 28 | 892 | ||||||||||||||||
Total securitization-related VIEs | 34,172 | 13,425 | 223 | 28 | 892 | ||||||||||||||||
Other VIEs: | |||||||||||||||||||||
Affordable housing entities | 0 | 0 | 3,502 | 463 | 3,502 | ||||||||||||||||
Entities that provide capital to low-income and rural communities | 384 | 100 | 0 | 0 | 0 | ||||||||||||||||
Other | 0 | 0 | 70 | 0 | 70 | ||||||||||||||||
Total other VIEs | 384 | 100 | 3,572 | 463 | 3,572 | ||||||||||||||||
Total VIEs | $ | 34,556 | $ | 13,525 | $ | 3,795 | $ | 491 | $ | 4,464 | |||||||||||
December 31, 2014 | |||||||||||||||||||||
Consolidated | Unconsolidated | ||||||||||||||||||||
(Dollars in millions) | Carrying | Carrying | Carrying | Carrying | Maximum | ||||||||||||||||
Amount | Amount of | Amount | Amount of | Exposure to | |||||||||||||||||
of Assets | Liabilities | of Assets | Liabilities | Loss | |||||||||||||||||
Securitization-related VIEs: | |||||||||||||||||||||
Credit card loan securitizations(1) | $ | 36,779 | $ | 12,350 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Home loan securitizations(2) | 0 | 0 | 221 | 31 | 876 | ||||||||||||||||
Total securitization-related VIEs | 36,779 | 12,350 | 221 | 31 | 876 | ||||||||||||||||
Other VIEs: | |||||||||||||||||||||
Affordable housing entities | 0 | 0 | 3,500 | 488 | 3,500 | ||||||||||||||||
Entities that provide capital to low-income and rural communities | 374 | 99 | 1 | 0 | 1 | ||||||||||||||||
Other | 4 | 0 | 74 | 0 | 74 | ||||||||||||||||
Total other VIEs | 378 | 99 | 3,575 | 488 | 3,575 | ||||||||||||||||
Total VIEs | $ | 37,157 | $ | 12,449 | $ | 3,796 | $ | 519 | $ | 4,451 | |||||||||||
__________ | |||||||||||||||||||||
(1) | Represents the gross amount of assets and liabilities owned by the VIE, which includes seller’s interest and retained and repurchased notes held by other related parties. | ||||||||||||||||||||
(2) | The carrying amount of assets of unconsolidated securitization-related VIEs consists of retained interests associated with the securitization of option-adjustable rate mortgage loans (“option-ARM”) and letters of credit related to manufactured housing securitizations. These are reported on our consolidated balance sheets under other assets. The carrying amount of liabilities of unconsolidated securitization-related VIEs is comprised of obligations on certain swap agreements associated with the securitization of manufactured housing loans and other obligations. These are reported on our consolidated balance sheets under other liabilities. | ||||||||||||||||||||
Securitization-Related VIEs | |||||||||||||||||||||
In a securitization transaction, assets from our balance sheet are transferred to a trust we establish, which typically meets the definition of a VIE. Our continuing involvement in the majority of our securitization transactions consists primarily of holding certain retained interests and acting as the primary servicer. We have the option to repurchase receivables from the trust if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing such receivables. In some cases, we are contractually required to exercise the repurchase option if the primary servicer fails to do so. We also may have exposure associated with contractual obligations to repurchase previously transferred loans due to breaches of representations and warranties. See “Note 14—Commitments, Contingencies, Guarantees and Others” for information related to reserves we have established for our mortgage representation and warranty exposure. | |||||||||||||||||||||
The table below presents the securitization-related VIEs in which we had continuing involvement as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
Table 6.2: Continuing Involvement in Securitization-Related VIEs | |||||||||||||||||||||
Non-Mortgage | Mortgage | ||||||||||||||||||||
(Dollars in millions) | Credit | Option | GreenPoint | GreenPoint | |||||||||||||||||
Card | ARM | HELOCs | Manufactured | ||||||||||||||||||
Housing | |||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||
Securities held by third-party investors | $ | 12,717 | $ | 1,971 | $ | 90 | $ | 862 | |||||||||||||
Receivables in the trust | 33,938 | 2,037 | 84 | 868 | |||||||||||||||||
Cash balance of spread or reserve accounts | 0 | 8 | N/A | 145 | |||||||||||||||||
Retained interests | Yes | Yes | Yes | Yes | |||||||||||||||||
Servicing retained | Yes | Yes | (1) | No | No | (2) | |||||||||||||||
Amortization event(3) | No | No | No | No | |||||||||||||||||
December 31, 2014: | |||||||||||||||||||||
Securities held by third-party investors | $ | 11,624 | $ | 2,026 | $ | 95 | $ | 887 | |||||||||||||
Receivables in the trust | 36,545 | 2,094 | 89 | 893 | |||||||||||||||||
Cash balance of spread or reserve accounts | 0 | 8 | N/A | 143 | |||||||||||||||||
Retained interests | Yes | Yes | Yes | Yes | |||||||||||||||||
Servicing retained | Yes | Yes | (1) | No | (1) | No | (2) | ||||||||||||||
Amortization event(3) | No | No | No | No | |||||||||||||||||
__________ | |||||||||||||||||||||
(1) | We retained servicing of the outstanding balance for a portion of securitized mortgage receivables. | ||||||||||||||||||||
(2) | The core servicing activities for the manufactured housing securitizations are completed by a third party. | ||||||||||||||||||||
(3) | Amortization events vary according to each specific trust agreement but generally are triggered by declines in performance or credit metrics, such as net charge-off rates or delinquency rates, below certain predetermined thresholds. Generally, the occurrence of an amortization event changes the sequencing and amount of trust-related cash flows to the benefit of senior noteholders. | ||||||||||||||||||||
Non-Mortgage Securitizations | |||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, we were deemed to be the primary beneficiary of all of our non-mortgage securitization trusts. Accordingly, all of these trusts have been consolidated in our financial statements. | |||||||||||||||||||||
Mortgage Securitizations | |||||||||||||||||||||
Option-ARM Loans | |||||||||||||||||||||
We had previously securitized option-ARM loans by transferring the mortgage loans to securitization trusts that had issued mortgage-backed securities to investors. The outstanding balance of debt securities held by third-party investors related to our mortgage loan securitization trusts was $2.0 billion as of both March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
We continue to service a portion of the outstanding balance of securitized mortgage receivables. We also retain rights to future cash flows arising from the receivables, the most significant being certificated interest-only bonds issued by the trusts. We generally estimate the fair value of these retained interests based on the estimated present value of expected future cash flows from securitized and sold receivables, using our best estimates of the key assumptions which include credit losses, prepayment speeds and discount rates commensurate with the risks involved. For the trusts that we continue to service, we do not consolidate these entities because we do not have the right to receive benefits nor the obligation to absorb losses that could potentially be significant to the trusts. For the remaining trusts, for which we no longer service the underlying mortgage loans, we do not consolidate these entities since we do not have the power to direct the activities that most significantly impact the economic performance of the trusts. | |||||||||||||||||||||
In connection with the securitization of certain option-ARM loans, a third party is obligated to advance a portion of any “negative amortization” resulting from monthly payments that are less than the interest accrued for that payment period. We have an agreement in place with the third party that mirrors this advance requirement. The amount advanced is tracked through mortgage-backed securities retained as part of the securitization transaction. As advances occur, we record an asset in the form of negative amortization bonds, which are held at fair value in other assets on our consolidated balance sheets. Our maximum exposure is affected by rate caps and monthly payment change caps, but the funding obligation cannot exceed the difference between the original loan balance multiplied by a preset negative amortization cap and the current unpaid principal balance. | |||||||||||||||||||||
We have also entered into certain derivative contracts related to the securitization activities. These are classified as free-standing derivatives, with fair value adjustments recorded in non-interest income in our consolidated statements of income. See “Note 9—Derivative Instruments and Hedging Activities” for further details on these derivatives. | |||||||||||||||||||||
GreenPoint Mortgage Home Equity Lines of Credit (“HELOCs”) | |||||||||||||||||||||
Our discontinued wholesale mortgage banking unit, GreenPoint, previously sold HELOCs in whole loan sales and subsequently acquired residual interests in certain trusts which securitized some of those loans. We do not consolidate these trusts because we either lack the power to direct the activities that most significantly impact the economic performance of the trusts or because we do not have the right to receive benefits or the obligation to absorb losses that could potentially be significant to the trusts. As the residual interest holder, GreenPoint is required to fund advances on the HELOCs when certain performance triggers are met due to deterioration in asset performance. On behalf of GreenPoint, we have funded cumulative advances of $30 million as of both March 31, 2015 and December 31, 2014. These advances are generally expensed as funded due to the low likelihood of recovery. We also have unfunded commitments of $6 million related to those interests for our non-consolidated VIEs as of both March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
GreenPoint Credit Manufactured Housing | |||||||||||||||||||||
We retain the primary obligation for certain provisions of corporate guarantees, recourse sales and clean-up calls related to the discontinued manufactured housing operations of GreenPoint Credit, LLC, which was a subsidiary of GreenPoint and was sold to a third party in 2004. Although we are the primary obligor, recourse obligations related to aforementioned whole loan sales, commitments to exercise mandatory clean-up calls on certain securitization transactions and servicing were transferred to a third party in the sale transaction. We do not consolidate the trusts used for the securitization of manufactured housing loans because we do not have the power to direct the activities that most significantly impact the economic performance of the trusts since we no longer service the loans. | |||||||||||||||||||||
We were required to fund letters of credit in 2004 to cover losses and are obligated to fund future amounts under swap agreements for certain transactions. We have the right to receive any funds remaining in the letters of credit after the securities are released. | |||||||||||||||||||||
The unpaid principal balance of manufactured housing securitization transactions where we are the residual interest holder was $868 million and $893 million as of March 31, 2015 and December 31, 2014, respectively. In the event the third-party servicer does not fulfill its obligation to exercise the clean-up calls on certain transactions, the obligation reverts to us and we would assume approximately $420 million of loans receivable upon our execution of the clean-up call with the requirement to absorb any losses on the loans receivable. | |||||||||||||||||||||
We monitor the underlying assets for trends in delinquencies and related losses and review the purchaser’s financial strength as well as servicing performance. These factors are considered in assessing the adequacy of the liabilities established for these obligations and the valuations of the assets. | |||||||||||||||||||||
Other VIEs | |||||||||||||||||||||
Affordable Housing Entities | |||||||||||||||||||||
As part of our community reinvestment initiatives, we invest in private investment funds that make equity investments in multi-family affordable housing properties. We receive affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. | |||||||||||||||||||||
We account for certain of our investments in qualified affordable housing projects using the proportional amortization method if certain criteria are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of income tax expense attributable to continuing operations. For the three months ended March 31, 2015 and 2014, we recognized amortization of $86 million and $74 million, respectively, and tax credits of $102 million and $90 million, respectively, associated with these investments within income taxes. The carrying value of our investments in these qualified affordable housing projects was $3.2 billion as of both March 31, 2015 and December 31, 2014. We are periodically required to provide additional financial or other support during the period of the investments. We recorded a liability of $1.2 billion for these unfunded commitments as of March 31, 2015, which is expected to be paid from 2015 to 2018. | |||||||||||||||||||||
For those investment funds considered to be VIEs, we are not required to consolidate them if we do not have the power to direct the activities that most significantly impact the economic performance of those entities. We record our interests in these unconsolidated VIEs in loans held for investment, other assets and other liabilities on our consolidated balance sheets. Our interests consisted of assets of approximately $3.5 billion as of both March 31, 2015 and December 31, 2014. Our maximum exposure to these entities is limited to our variable interests in the entities was $3.5 billion as of both March 31, 2015 and December 31, 2014. The creditors of the VIEs have no recourse to our general credit and we do not provide additional financial or other support other than during the period that we are contractually required to provide. The total assets of the unconsolidated VIE investment funds were $10.2 billion as of both March 31, 2015 and December 31, 2014. | |||||||||||||||||||||
Entities that Provide Capital to Low-Income and Rural Communities | |||||||||||||||||||||
We hold variable interests in entities (“Investor Entities”) that invest in community development entities (“CDEs”) that provide debt financing to businesses and non-profit entities in low-income and rural communities. Variable interests in the CDEs held by the consolidated Investor Entities are also our variable interests. The activities of the Investor Entities are financed with a combination of invested equity capital and debt. The activities of the CDEs are financed solely with invested equity capital. We receive federal and state tax credits for these investments. We consolidate the VIEs in which we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits that could be potentially significant to the VIE. We have also consolidated other investments and CDEs that are not considered to be VIEs, but where we hold a controlling financial interest. The assets of the VIEs that we consolidated, which totaled approximately $384 million and $374 million as of March 31, 2015 and December 31, 2014, respectively, are reflected on our consolidated balance sheets in cash, loans held for investment, interest receivable and other assets. The liabilities are reflected in other liabilities. The creditors of the VIEs have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide. | |||||||||||||||||||||
Other | |||||||||||||||||||||
Other VIEs include a variable interest that we hold in a trust that has a royalty interest in certain oil and gas properties. The activities of the trust are financed solely with debt. The total assets of the trust were $149 million and $159 million as of March 31, 2015 and December 31, 2014, respectively. We were not required to consolidate the trust because we do not have the power to direct the activities of the trust that most significantly impact the trust’s economic performance. Our maximum exposure to this entity is limited to our retained interest of $70 million and $74 million as of March 31, 2015 and December 31, 2014, respectively. The creditors of the trust have no recourse to our general credit. We have not provided additional financial or other support other than during the period that we are contractually required to provide. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
NOTE 7—GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||
The table below displays the components of goodwill, intangible assets and MSRs as of March 31, 2015 and December 31, 2014. Goodwill is presented separately on our consolidated balance sheets. Intangible assets and MSRs are included in other assets on our consolidated balance sheets. | |||||||||||||||||||||||||
Table 7.1: Components of Goodwill, Intangible Assets and MSRs | |||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated Amortization(1) | Net | Carrying | Accumulated Amortization(1) | Net | |||||||||||||||||||
Amount of | Carrying | Amount of | Carrying | ||||||||||||||||||||||
Assets(1) | Amount | Assets(1) | Amount | ||||||||||||||||||||||
Goodwill | $ | 13,978 | N/A | $ | 13,978 | $ | 13,978 | N/A | $ | 13,978 | |||||||||||||||
Intangible assets: | |||||||||||||||||||||||||
Purchased credit card relationship (“PCCR”) intangibles | 2,147 | $ | (1,235 | ) | 912 | 2,124 | $ | (1,152 | ) | 972 | |||||||||||||||
Core deposit intangibles | 1,771 | (1,596 | ) | 175 | 1,771 | (1,569 | ) | 202 | |||||||||||||||||
Other(2) | 239 | (114 | ) | 125 | 300 | (158 | ) | 142 | |||||||||||||||||
Total intangible assets | 4,157 | (2,945 | ) | 1,212 | 4,195 | (2,879 | ) | 1,316 | |||||||||||||||||
Total goodwill and intangible assets | $ | 18,135 | $ | (2,945 | ) | $ | 15,190 | $ | 18,173 | $ | (2,879 | ) | $ | 15,294 | |||||||||||
MSRs: | |||||||||||||||||||||||||
Consumer MSRs(3) | $ | 53 | N/A | $ | 53 | $ | 53 | N/A | $ | 53 | |||||||||||||||
Commercial MSRs(4) | 177 | $ | (30 | ) | 147 | 171 | $ | (24 | ) | 147 | |||||||||||||||
Total MSRs | $ | 230 | $ | (30 | ) | $ | 200 | $ | 224 | $ | (24 | ) | $ | 200 | |||||||||||
__________ | |||||||||||||||||||||||||
(1) | Certain intangible assets that were fully amortized in prior periods were removed from our consolidated balance sheets. | ||||||||||||||||||||||||
(2) | Primarily consists of brokerage relationship intangibles, partnership and other contract intangibles and tradename intangibles. Also includes certain indefinite-lived intangibles of $4 million as of both March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(3) | Represents MSRs related to our Consumer Banking business that are carried at fair value on our consolidated balance sheets. | ||||||||||||||||||||||||
(4) | Represents MSRs related to our Commercial Banking business that are subsequently measured under the amortization method and periodically assessed for impairment. None of these MSRs were impaired during the three months ended March 31, 2015 and 2014 and no valuation allowance was recorded as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $110 million and $143 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The following table presents goodwill attributable to each of our business segments as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 7.2: Goodwill Attributable to Business Segments | |||||||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial Banking | Total | |||||||||||||||||||||
Card | Banking | ||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 5,001 | $ | 4,593 | $ | 4,384 | $ | 13,978 | |||||||||||||||||
Acquisitions | 0 | 5 | 0 | 5 | |||||||||||||||||||||
Other adjustments | (5 | ) | 0 | 0 | (5 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | $ | 4,996 | $ | 4,598 | $ | 4,384 | $ | 13,978 | |||||||||||||||||
Deposits_and_Borrowings
Deposits and Borrowings | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Deposits and Borrowings [Abstract] | ||||||||||||||||
Deposits and Borrowings | ||||||||||||||||
NOTE 8—DEPOSITS AND BORROWINGS | ||||||||||||||||
Deposits | ||||||||||||||||
Our deposits, which are our largest source of funding for our operations and asset growth, consist of non-interest bearing and interest-bearing deposits, which include checking accounts, money market deposit accounts, negotiable order of withdrawals, saving deposits, and time deposits. | ||||||||||||||||
Securitized and Unsecured Debt Obligations | ||||||||||||||||
We use a variety of funding sources other than deposits, including short-term borrowings, the issuance of senior and subordinated notes and other borrowings, and securitization transactions. In addition, we utilize FHLB advances, which are secured by certain portions of our loan and investment securities portfolios, for our funding needs. The securitization debt obligations are separately presented on our consolidated balance sheets, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets. | ||||||||||||||||
Securitized Debt Obligations | ||||||||||||||||
Our outstanding borrowings due to securitization investors were $12.7 billion and $11.6 billion as of March 31, 2015 and December 31, 2014, respectively. During the first quarter of 2015, $1.3 billion of new debt was issued to third-party investors from our loan securitization trusts, offset by $175 million of debt maturities. | ||||||||||||||||
Senior and Subordinated Notes | ||||||||||||||||
As of March 31, 2015, we had $20.6 billion of senior and subordinated notes outstanding, net of fair value hedging losses of $303 million. As of December 31, 2014, we had $18.7 billion of senior and subordinated notes outstanding, net of fair value hedging losses of $179 million. During the first quarter of 2015, we issued $3.0 billion of long-term senior unsecured debt, comprised of $400 million of floating rate notes and $2.6 billion of fixed rate notes. During the first quarter of 2015, $1.3 billion of outstanding unsecured notes matured. See “Note 9—Derivative Instruments and Hedging Activities” for information about our fair value hedging activities. | ||||||||||||||||
FHLB Advances and Other | ||||||||||||||||
In addition to the issuance capacity under the registration statement, we also have access to funding through the FHLB system and the Federal Reserve Discount Window. Our FHLB and Federal Reserve memberships require us to hold FHLB and Federal Reserve stock which totaled $1.5 billion and $2.0 billion as of March 31, 2015 and December 31, 2014, respectively, and are included in other assets on our consolidated balance sheets. | ||||||||||||||||
We had outstanding FHLB advances and lines of credit, which were secured by our investment securities, residential home loans, multifamily real estate loans, commercial real estate loans and HELOCs, totaling $6.8 billion and $17.3 billion as of March 31, 2015 and December 31, 2014, respectively. We did not access the Federal Reserve Discount Window for funding during 2015 or 2014. | ||||||||||||||||
Composition of Deposits, Short-Term Borrowings and Long-Term Debt | ||||||||||||||||
The table below summarizes the components of our deposits, short-term borrowings and long-term debt as of March 31, 2015 and December 31, 2014. Our total short-term borrowings consist of federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings with an original contractual maturity of one year or less. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The amounts presented for outstanding borrowings include unamortized debt premiums and discounts, net of fair value hedge accounting adjustments. | ||||||||||||||||
Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt | ||||||||||||||||
(Dollars in millions) | March 31, | December 31, | ||||||||||||||
2015 | 2014 | |||||||||||||||
Deposits: | ||||||||||||||||
Non-interest bearing deposits | $ | 25,232 | $ | 25,081 | ||||||||||||
Interest-bearing deposits | 185,208 | 180,467 | ||||||||||||||
Total deposits | $ | 210,440 | $ | 205,548 | ||||||||||||
Short-term borrowings: | ||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 933 | $ | 880 | ||||||||||||
FHLB advances | 5,750 | 16,200 | ||||||||||||||
Total short-term borrowings | $ | 6,683 | $ | 17,080 | ||||||||||||
March 31, 2015 | ||||||||||||||||
(Dollars in millions) | Maturity | Interest Rate | Weighted | Outstanding Amount | December 31, | |||||||||||
Date | Average | 2014 | ||||||||||||||
Interest Rate | ||||||||||||||||
Long-term debt: | ||||||||||||||||
Securitized debt obligations(1) | 2015 -2025 | 0.21 - 5.75% | 1.35 | % | $ | 12,717 | $ | 11,624 | ||||||||
Senior and subordinated notes:(1) | ||||||||||||||||
Fixed unsecured senior debt | 2015 - 2025 | 1.00 - 6.75% | 2.73 | 16,624 | 15,174 | |||||||||||
Floating unsecured senior debt | 2015 - 2018 | 0.71 - 0.94% | 0.84 | 1,280 | 880 | |||||||||||
Total unsecured senior debt | 2.6 | 17,904 | 16,054 | |||||||||||||
Fixed unsecured subordinated debt | 2016 - 2023 | 3.38 - 8.80% | 4.97 | 2,655 | 2,630 | |||||||||||
Total senior and subordinated notes | 20,559 | 18,684 | ||||||||||||||
Other long-term borrowings: | ||||||||||||||||
FHLB advances | 2015 - 2023 | 0.22 - 6.88% | 0.55 | 1,070 | 1,069 | |||||||||||
Total long-term debt | 34,346 | 31,377 | ||||||||||||||
Total short-term borrowings and long-term debt | $ | 41,029 | $ | 48,457 | ||||||||||||
___________ | ||||||||||||||||
(1) | Outstanding amount includes the impact from hedge accounting. | |||||||||||||||
Components of Interest Expense | ||||||||||||||||
The following table displays interest expense attributable to short-term borrowings and long-term debt for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Table 8.2: Components of Interest Expense on Short-Term Borrowings and Long-Term Debt | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
(Dollars in millions) | 2015 | 2014 | ||||||||||||||
Short-term borrowings: | ||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 0 | $ | 0 | ||||||||||||
FHLB advances | 8 | 6 | ||||||||||||||
Total short-term borrowings | 8 | 6 | ||||||||||||||
Long-term debt: | ||||||||||||||||
Securitized debt obligations(1) | 33 | 38 | ||||||||||||||
Senior and subordinated notes(1) | 79 | 77 | ||||||||||||||
Other long-term borrowings | 7 | 6 | ||||||||||||||
Total long-term debt | 119 | 121 | ||||||||||||||
Total interest expense on short-term borrowings and long-term debt | $ | 127 | $ | 127 | ||||||||||||
__________ | ||||||||||||||||
(1) | Interest expense includes the impact from hedge accounting. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||
NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||||||
Use of Derivatives | |||||||||||||||||||||||||
We manage our asset and liability position and market risk exposure in accordance with prescribed risk management policies and limits established by our Market and Liquidity Risk Policy which is approved by our Board of Directors. Our primary market risk stems from the impact on our earnings and economic value of equity from changes in interest rates and, to a lesser extent, changes in foreign exchange rates. We employ several techniques to manage our interest rate sensitivity, which include changing the duration and re-pricing characteristics of various assets and liabilities by using interest rate derivatives. Our current asset and liability management policy also includes the use of derivatives to hedge foreign currency denominated exposures to limit our earnings and capital ratio exposure to foreign exchange risk. We execute our derivative contracts in both the over-the-counter (“OTC”) and exchange-traded derivative markets. The majority of our derivatives are interest rate swaps. In addition, we may use a variety of other derivative instruments, including caps, floors, options, futures and forward contracts, to manage our interest rate and foreign exchange risk. We offer various derivatives to our customers as part of our Commercial Banking business but usually offset our exposure through derivative transactions with other counterparties. We also enter into interest rate and foreign exchange derivative contracts with our commercial lending customers as a customer accommodation. | |||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
Our derivatives are designated as either qualifying accounting hedges or free-standing derivatives. Free-standing derivatives primarily consist of customer-accommodation derivatives and economic hedges that do not qualify for hedge accounting. Qualifying accounting hedges are designated as fair value hedges, cash flow hedges or net investment hedges. | |||||||||||||||||||||||||
• | Fair Value Hedges: We designate derivatives as fair value hedges to manage our exposure to changes in the fair value of certain financial assets and liabilities, which fluctuate in value as a result of movements in interest rates. Changes in the fair value of derivatives designated as fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any resulting ineffectiveness. Our fair value hedges consist of interest rate swaps that are intended to modify our exposure to interest rate risk on various fixed-rate assets and liabilities. | ||||||||||||||||||||||||
• | Cash Flow Hedges: We designate derivatives as cash flow hedges to manage our exposure to variability in cash flows related to forecasted transactions. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of AOCI, to the extent that the hedge relationships are effective, and amounts are reclassified from AOCI to earnings as the forecasted transactions impact earnings. To the extent that any ineffectiveness exists in the hedge relationships, the amounts are recorded in current period earnings. Our cash flow hedges consist of interest rate swaps that are intended to hedge the variability in interest payments on some of our variable-rate assets through 2020. These hedges have the effect of converting some of our variable-rate assets to a fixed rate. We also have entered into forward foreign currency derivative contracts to hedge our exposure to variability in cash flows related to foreign currency denominated intercompany borrowings. | ||||||||||||||||||||||||
• | Net Investment Hedges: We use net investment hedges to manage the foreign currency exposure related to our net investments in foreign operations that have functional currencies other than the U.S. dollar. Changes in the fair value of net investment hedges are recorded in the translation adjustment component of AOCI, offsetting the translation gain or loss from those foreign operations. During 2014, we executed net investment hedges using foreign exchange forward contracts to hedge the translation exposure of the net investment in our foreign operations. | ||||||||||||||||||||||||
• | Free-Standing Derivatives: We use free-standing derivatives to hedge the risk of changes in the fair value of residential MSRs, mortgage loan origination and purchase commitments and other interests held. We also categorize our customer accommodation derivatives and the related offsetting contracts as free-standing derivatives. Changes in the fair value of free-standing derivatives are recorded in earnings as a component of other non-interest income. | ||||||||||||||||||||||||
Balance Sheet Presentation | |||||||||||||||||||||||||
As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable), for instruments executed with the same counterparty where a right of setoff exists. See additional information in “Note 1—Summary of Significant Accounting Policies.” | |||||||||||||||||||||||||
The following table summarizes the notional and fair values of our derivative instruments on a gross basis as of March 31, 2015 and December 31, 2014, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or paid. | |||||||||||||||||||||||||
Table 9.1: Derivative Assets and Liabilities at Fair Value | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Notional or | Derivative(1) | Notional or | Derivative(1) | ||||||||||||||||||||||
Contractual | Contractual | ||||||||||||||||||||||||
(Dollars in millions) | Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||
Fair value hedges | $ | 26,793 | $ | 577 | $ | 47 | $ | 24,543 | $ | 480 | $ | 39 | |||||||||||||
Cash flow hedges | 25,210 | 437 | 13 | 24,450 | 222 | 18 | |||||||||||||||||||
Total interest rate contracts | 52,003 | 1,014 | 60 | 48,993 | 702 | 57 | |||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||
Cash flow hedges | 5,140 | 340 | 1 | 5,546 | 221 | 2 | |||||||||||||||||||
Net investment hedges | 2,408 | 51 | 0 | 2,476 | 73 | 0 | |||||||||||||||||||
Total foreign exchange contracts | 7,548 | 391 | 1 | 8,022 | 294 | 2 | |||||||||||||||||||
Total derivatives designated as accounting hedges | 59,551 | 1,405 | 61 | 57,015 | 996 | 59 | |||||||||||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||||||||||
Interest rate contracts covering: | |||||||||||||||||||||||||
MSRs(2) | 1,028 | 13 | 5 | 777 | 10 | 3 | |||||||||||||||||||
Customer accommodation | 27,918 | 485 | 329 | 27,646 | 413 | 251 | |||||||||||||||||||
Other interest rate exposures(3) | 2,740 | 36 | 21 | 2,614 | 33 | 21 | |||||||||||||||||||
Total interest rate contracts | 31,686 | 534 | 355 | 31,037 | 456 | 275 | |||||||||||||||||||
Other contracts | 586 | 0 | 6 | 593 | 0 | 5 | |||||||||||||||||||
Total derivatives not designated as accounting hedges | 32,272 | 534 | 361 | 31,630 | 456 | 280 | |||||||||||||||||||
Total derivatives | $ | 91,823 | $ | 1,939 | $ | 422 | $ | 88,645 | $ | 1,452 | $ | 339 | |||||||||||||
Less: netting adjustment(4) | (666 | ) | (165 | ) | (624 | ) | (164 | ) | |||||||||||||||||
Total derivative assets/liabilities | $ | 1,273 | $ | 257 | $ | 828 | $ | 175 | |||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Derivative assets and liabilities include interest accruals. | ||||||||||||||||||||||||
(2) | Includes interest rate swaps and To Be Announced (“TBA”) contracts. | ||||||||||||||||||||||||
(3) | Other interest rate exposures include mortgage related derivatives. | ||||||||||||||||||||||||
(4) | Represents balance sheet netting of derivative assets and liabilities, and related receivables, payables, and cash collateral. See Table 9.2 for further information. | ||||||||||||||||||||||||
Offsetting of Financial Assets and Liabilities | |||||||||||||||||||||||||
We execute the majority of our derivative transactions and repurchase agreements under master netting arrangements. Under our existing enforceable master netting arrangements, we generally have the right to offset exposure with the same counterparty. In addition, either counterparty can generally request the net settlement of all contracts through a single payment upon default on, or termination of, any one contract. As of January 1, 2015, the Company changed its accounting principle to begin offsetting derivative assets and liabilities for purposes of balance sheet presentation where a right of setoff exists. As of March 31, 2015 and December 31, 2014, derivative contracts that are executed bilaterally with a counterparty in the OTC market and then novated to and cleared through a central clearing house, are not subject to offsetting due to current uncertainty about the legal enforceability of our right of setoff with the clearinghouses. | |||||||||||||||||||||||||
The following table presents as of March 31, 2015 and December 31, 2014, the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amount permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged associated with such arrangements. The collateral amounts shown are limited to the extent of the related net derivative fair values or outstanding balances, thus instances of over-collateralization are not shown. | |||||||||||||||||||||||||
Table 9.2: Offsetting of Financial Assets and Financial Liabilities | |||||||||||||||||||||||||
Gross | Gross Amounts Offset in the Balance Sheet | Net Amounts as Recognized | Securities Collateral Held Under Master Netting Agreements | ||||||||||||||||||||||
(Dollars in millions) | Amounts | Financial | Cash Collateral Received | Net | |||||||||||||||||||||
Instruments | Exposure | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Derivatives assets(1) | $ | 1,939 | $ | (70 | ) | $ | (596 | ) | $ | 1,273 | $ | (121 | ) | $ | 1,152 | ||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Derivatives assets(1) | $ | 1,452 | $ | (101 | ) | $ | (523 | ) | $ | 828 | $ | (80 | ) | $ | 748 | ||||||||||
Gross | Gross Amounts Offset in the Balance Sheet | Net Amounts as Recognized | Securities Collateral Pledged Under Master Netting Agreements | ||||||||||||||||||||||
(Dollars in millions) | Amounts | Financial | Cash Collateral Pledged | Net | |||||||||||||||||||||
Instruments | Exposure | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Derivatives liabilities(1) | $ | 422 | $ | (70 | ) | $ | (95 | ) | $ | 257 | $ | 0 | $ | 257 | |||||||||||
Repurchase agreements(2) | 924 | 0 | 0 | 924 | (924 | ) | 0 | ||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Derivatives liabilities(1) | $ | 339 | $ | (101 | ) | $ | (63 | ) | $ | 175 | $ | 0 | $ | 175 | |||||||||||
Repurchase agreements(2) | 869 | 0 | 0 | 869 | (869 | ) | 0 | ||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | The gross balances include derivative assets and derivative liabilities as of March 31, 2015 totaling $650 million and $207 million, respectively, related to the centrally cleared derivative contracts. The comparable amounts as of December 31, 2014 totaled $360 million and $127 million, respectively. These contracts were not subject to offsetting as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(2) | As of March 31, 2015 and December 31, 2014, the Company only had repurchase obligations outstanding and did not have any reverse repurchase receivables. | ||||||||||||||||||||||||
Credit Risk-Related Contingency Features and Collateral | |||||||||||||||||||||||||
Certain of our derivatives contracts include provisions requiring that our debt maintain a credit rating of investment grade or above by each of the major credit rating agencies. In the event of a downgrade of our debt credit rating below investment grade, some of our derivatives counterparties would have the right to terminate the derivative contract and close out the existing positions, or demand immediate and ongoing full overnight collateralization on derivative instruments in a net liability position. Certain of our derivatives contracts may also allow, in the event of a downgrade of our debt credit rating of any kind, our derivatives counterparties to demand additional collateralization on such derivatives instruments in a net liability position. We posted $171 million and $87 million of cash collateral as of March 31, 2015 and December 31, 2014, respectively. If our debt credit rating had fallen below investment grade, we would have been required to post an additional variation margin, which represents the impact of daily position mark-to-market calculations, of less than $1 million as of both March 31, 2015 and December 31, 2014. In addition, we would have been required to post independent margin of $60 million and $65 million as of March 31, 2015 and December 31, 2014, respectively, in compliance with the terms of certain of our swap agreements. The fair value of derivatives instruments with credit-risk-related contingent features in a net liability position was $1 million and less than $1 million as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||
Derivatives Counterparty Credit Risk | |||||||||||||||||||||||||
Derivatives instruments contain an element of credit risk that arises from the potential failure of a counterparty to perform according to the contractual terms of the contract. Our exposure to derivatives counterparty credit risk, at any point in time, is represented by the fair value of derivatives in a gain position, or derivatives assets, assuming no recoveries of underlying collateral. To mitigate the risk of counterparty default, we enter into legally enforceable master netting agreements and maintain collateral agreements with certain derivative counterparties. We generally enter into these agreements on a bilateral basis with our counterparties, however since June 2013 we have begun to clear eligible OTC derivatives through a central clearinghouse in accordance with the requirements of the Dodd-Frank Act. These agreements typically provide for the right to offset exposures and require both parties to maintain collateral in the event the fair values of derivative financial instruments exceed established thresholds. We received cash collateral from derivatives counterparties totaling $994 million and $695 million as of March 31, 2015 and December 31, 2014, respectively. We also received securities from derivatives counterparties totaling $137 million and $91 million as of March 31, 2015 and December 31, 2014, respectively, which we have the ability to re-pledge. | |||||||||||||||||||||||||
We record counterparty credit risk valuation adjustments on our derivative assets to properly reflect the credit quality of the counterparty. We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining the counterparty credit risk valuation adjustment, which may be adjusted in future periods due to changes in the fair value of the derivatives contracts, collateral and creditworthiness of the counterparty. The cumulative counterparty credit risk valuation adjustment recorded on our consolidated balance sheets as a reduction in the derivatives asset balance was $5 million as of both March 31, 2015 and December 31, 2014. We also adjust the fair value of our derivatives liabilities to reflect the impact of our own credit quality. We calculate this adjustment by comparing the spreads on our credit default swaps to the discount benchmark curve. The cumulative credit risk valuation adjustment related to our credit quality recorded on our consolidated balance sheets as a reduction in the derivative liability balance was less than $1 million and $1 million as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||
Income Statement Presentation and AOCI | |||||||||||||||||||||||||
The following tables summarize the impact of derivatives and the related hedged items in our consolidated statements of income and AOCI. | |||||||||||||||||||||||||
Fair Value Hedges and Free-Standing Derivatives | |||||||||||||||||||||||||
The net gains (losses) recognized in earnings related to derivatives in fair value hedging relationships and free-standing derivatives are presented below for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Table 9.3: Gains and Losses on Fair Value Hedges and Free-Standing Derivatives | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as accounting hedges:(1) | |||||||||||||||||||||||||
Fair value interest rate contracts: | |||||||||||||||||||||||||
Gains recognized in earnings on derivatives | $ | 153 | $ | 31 | |||||||||||||||||||||
Losses recognized in earnings on hedged items | (148 | ) | (23 | ) | |||||||||||||||||||||
Net fair value hedge ineffectiveness gains | 5 | 8 | |||||||||||||||||||||||
Derivatives not designated as accounting hedges:(1) | |||||||||||||||||||||||||
Interest rate contracts covering: | |||||||||||||||||||||||||
MSRs | 6 | 7 | |||||||||||||||||||||||
Customer accommodation | 4 | 4 | |||||||||||||||||||||||
Other interest rate exposures | 2 | 5 | |||||||||||||||||||||||
Total interest rate contracts | 12 | 16 | |||||||||||||||||||||||
Other contracts | (2 | ) | (3 | ) | |||||||||||||||||||||
Total gains on derivatives not designated as accounting hedges | 10 | 13 | |||||||||||||||||||||||
Net derivative gains recognized in earnings | $ | 15 | $ | 21 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Amounts are recorded in our consolidated statements of income in other non-interest income. | ||||||||||||||||||||||||
Cash Flow and Net Investment Hedges | |||||||||||||||||||||||||
The table below shows the net gains (losses) related to derivatives designated as cash flow hedges and net investment hedges for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Table 9.4: Gains and Losses on Derivatives Designated as Cash Flow Hedges and Net Investment Hedges | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Gains (losses) recorded in AOCI: | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts | $ | 210 | $ | 45 | |||||||||||||||||||||
Foreign exchange contracts | (5 | ) | (5 | ) | |||||||||||||||||||||
Subtotal | 205 | 40 | |||||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||
Foreign exchange contracts | 75 | 0 | |||||||||||||||||||||||
Net derivatives gains recognized in AOCI | $ | 280 | $ | 40 | |||||||||||||||||||||
Gains (losses) recorded in earnings: | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Gains (losses) reclassified from AOCI into earnings: | |||||||||||||||||||||||||
Interest rate contracts(1) | $ | 47 | $ | 26 | |||||||||||||||||||||
Foreign exchange contracts(2) | (4 | ) | (5 | ) | |||||||||||||||||||||
Subtotal | 43 | 21 | |||||||||||||||||||||||
Gains (losses) recognized in earnings due to ineffectiveness: | |||||||||||||||||||||||||
Interest rate contracts(2) | 2 | 1 | |||||||||||||||||||||||
Net derivative gains recognized in earnings | $ | 45 | $ | 22 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Amounts reclassified are recorded in our consolidated statements of income in interest income or interest expense. | ||||||||||||||||||||||||
(2) | Amounts reclassified are recorded in our consolidated statements of income in other non-interest income. | ||||||||||||||||||||||||
In the next 12 months, we expect to reclassify to earnings net after-tax gains of $155 million currently recorded in AOCI as of March 31, 2015. These amounts will offset the cash flows associated with the hedged forecasted transactions. The maximum length of time over which forecasted transactions were hedged was approximately five years as of March 31, 2015. The amount we expect to reclassify into earnings may change as a result of changes in market conditions and ongoing actions taken as part of our overall risk management strategy. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||||
NOTE 10—STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||
The following table summarizes the Company’s preferred stock issued and outstanding as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
Table 10.1: Preferred Stock Issued and Outstanding | |||||||||||||||||||||||||
Carrying Value (in millions) | |||||||||||||||||||||||||
Series | Issuance Date | Redeemable by Issuer Beginning | Non-cumulative Fixed Dividend Rate per Annum | Redemption Price per Depositary Share | Number of Depositary Shares(1) | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||
Series B | 20-Aug-12 | 1-Sep-17 | 6 | % | $ | 25 | 35,000,000 | $ | 853 | $ | 853 | ||||||||||||||
Series C | 12-Jun-14 | 1-Sep-19 | 6.25 | 25 | 20,000,000 | 484 | 484 | ||||||||||||||||||
Series D | 31-Oct-14 | 1-Dec-19 | 6.7 | 25 | 20,000,000 | 485 | 485 | ||||||||||||||||||
Total | $ | 1,822 | $ | 1,822 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Each depositary share represents a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
The following table presents the changes in AOCI by component for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
Table 10.2: Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
(Dollars in millions) | Securities | Securities Held to Maturity(1) | Cash Flow | Foreign | Other | Total | |||||||||||||||||||
Available | Hedges | Currency | |||||||||||||||||||||||
for Sale | Translation Adjustments(2) | ||||||||||||||||||||||||
AOCI as of December 31, 2014 | $ | 410 | $ | (821 | ) | $ | 10 | $ | (8 | ) | $ | (21 | ) | $ | (430 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 114 | 0 | 205 | (84 | ) | (1 | ) | 234 | |||||||||||||||||
Amounts reclassified from AOCI into earnings | 8 | 20 | (43 | ) | 0 | (1 | ) | (16 | ) | ||||||||||||||||
Net other comprehensive income (loss) | 122 | 20 | 162 | (84 | ) | (2 | ) | 218 | |||||||||||||||||
AOCI as of March 31, 2015 | $ | 532 | $ | (801 | ) | $ | 172 | $ | (92 | ) | $ | (23 | ) | $ | (212 | ) | |||||||||
(Dollars in millions) | Securities | Securities Held to Maturity(1) | Cash Flow | Foreign | Other | Total | |||||||||||||||||||
Available | Hedges | Currency | |||||||||||||||||||||||
for Sale | Translation Adjustments | ||||||||||||||||||||||||
AOCI as of December 31, 2013 | $ | 106 | $ | (897 | ) | $ | (110 | ) | $ | 40 | $ | (11 | ) | $ | (872 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 149 | 0 | 40 | (13 | ) | 0 | 176 | ||||||||||||||||||
Amounts reclassified from AOCI into earnings | (5 | ) | 13 | (21 | ) | 0 | (1 | ) | (14 | ) | |||||||||||||||
Net other comprehensive income (loss) | 144 | 13 | 19 | (13 | ) | (1 | ) | 162 | |||||||||||||||||
AOCI as of March 31, 2014 | $ | 250 | $ | (884 | ) | $ | (91 | ) | $ | 27 | $ | (12 | ) | $ | (710 | ) | |||||||||
__________ | |||||||||||||||||||||||||
(1) | The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created at the date of transfer from the securities available for sale to securities held to maturity, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. | ||||||||||||||||||||||||
(2) | Includes the impact from hedging instruments designated as net investment hedges. | ||||||||||||||||||||||||
The following table presents the impacts on net income of amounts reclassified from each component of AOCI for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||
Table 10.3: Reclassifications from AOCI | |||||||||||||||||||||||||
Amount Reclassified from AOCI | |||||||||||||||||||||||||
(Dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
AOCI Components | Affected Income Statement Line Item | 2015 | 2014 | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Non-interest income - Other | $ | 2 | $ | 13 | |||||||||||||||||||||
Non-interest income - OTTI | (15 | ) | (5 | ) | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (13 | ) | 8 | ||||||||||||||||||||||
Income tax (benefit) provision | (5 | ) | 3 | ||||||||||||||||||||||
Net (loss) income | (8 | ) | 5 | ||||||||||||||||||||||
Securities held to maturity:(1) | |||||||||||||||||||||||||
Non-interest income - Other | (33 | ) | (28 | ) | |||||||||||||||||||||
Income tax benefit | (13 | ) | (15 | ) | |||||||||||||||||||||
Net loss | (20 | ) | (13 | ) | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts: | Interest income - Other | 75 | 42 | ||||||||||||||||||||||
Foreign exchange contracts: | Non-interest income - Other | (7 | ) | (8 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | 68 | 34 | |||||||||||||||||||||||
Income tax provision | 25 | 13 | |||||||||||||||||||||||
Net income | 43 | 21 | |||||||||||||||||||||||
Other: | |||||||||||||||||||||||||
Various (pension and other) | 1 | 1 | |||||||||||||||||||||||
Income tax provision (benefit) | 0 | 0 | |||||||||||||||||||||||
Net income | 1 | 1 | |||||||||||||||||||||||
Total reclassifications | $ | 16 | $ | 14 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created from the transfer into securities held to maturity, which occurred at fair value. | ||||||||||||||||||||||||
The table below summarizes other comprehensive income activity and the related tax impact for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||
Table 10.4: Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(Dollars in millions) | Before | Provision | After | Before | Provision | After | |||||||||||||||||||
Tax | (Benefit) | Tax | Tax | (Benefit) | Tax | ||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
Net unrealized gains on securities available for sale | $ | 190 | $ | 68 | $ | 122 | $ | 229 | $ | 85 | $ | 144 | |||||||||||||
Net changes in securities held to maturity | 33 | 13 | 20 | 28 | 15 | 13 | |||||||||||||||||||
Net unrealized gains on cash flow hedges | 258 | 96 | 162 | 30 | 11 | 19 | |||||||||||||||||||
Foreign currency translation adjustments(1) | (41 | ) | 43 | (84 | ) | (13 | ) | 0 | (13 | ) | |||||||||||||||
Other | (4 | ) | (2 | ) | (2 | ) | (1 | ) | 0 | (1 | ) | ||||||||||||||
Other comprehensive income | $ | 436 | $ | 218 | $ | 218 | $ | 273 | $ | 111 | $ | 162 | |||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Includes the impact from hedging instruments designated as net investment hedges. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Common Share | |||||||||
NOTE 11—EARNINGS PER COMMON SHARE | |||||||||
The following table sets forth the computation of basic and diluted earnings per common share: | |||||||||
Table 11.1: Computation of Basic and Diluted Earnings per Common Share | |||||||||
Three Months Ended March 31, | |||||||||
(Dollars and shares in millions, except per share data) | 2015 | 2014 | |||||||
Basic earnings | |||||||||
Income from continuing operations, net of tax | $ | 1,134 | $ | 1,124 | |||||
Income from discontinued operations, net of tax | 19 | 30 | |||||||
Net income | 1,153 | 1,154 | |||||||
Dividends and undistributed earnings allocated to participating securities(1) | (6 | ) | (5 | ) | |||||
Preferred stock dividends | (32 | ) | (13 | ) | |||||
Net income available to common stockholders | $ | 1,115 | $ | 1,136 | |||||
Net income from continuing operations per share | $ | 2 | $ | 1.94 | |||||
Income from discontinued operations per share | 0.03 | 0.05 | |||||||
Net income per share | $ | 2.03 | $ | 1.99 | |||||
Total weighted-average basic shares outstanding | 550.2 | 571 | |||||||
Diluted earnings(2) | |||||||||
Net income available to common stockholders | $ | 1,115 | $ | 1,136 | |||||
Net income from continuing operations per share | $ | 1.97 | $ | 1.91 | |||||
Income from discontinued operations per share | 0.03 | 0.05 | |||||||
Net income per share | $ | 2 | $ | 1.96 | |||||
Total weighted-average basic shares outstanding | 550.2 | 571 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | 2.6 | 2.4 | |||||||
Other contingently issuable shares | 1.5 | 1.5 | |||||||
Warrants(3) | 2.9 | 5.4 | |||||||
Total effect of dilutive securities | 7 | 9.3 | |||||||
Total weighted-average diluted shares outstanding | 557.2 | 580.3 | |||||||
__________ | |||||||||
(1) | Includes undistributed earnings allocated to participating securities using the two-class method under the accounting guidance for computing earnings per share. | ||||||||
(2) | Excluded from the computation of diluted earnings per share were 2.0 million shares related to options with exercise prices ranging from $70.96 to $88.81, and 4.6 million shares related to options with exercise prices ranging from $70.96 to $88.81 for the three months ended March 31, 2015 and 2014, respectively, because their inclusion would be anti-dilutive. | ||||||||
(3) | Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). As of March 31, 2015, there were 6.3 million warrants to purchase common stock outstanding, which represents approximately half of the warrants issued in the initial offering. |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||||||||||||||||||||||
NOTE 12—FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (also referred to as an exit price). The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below: | |||||||||||||||||||||||||||||||||||||||||||||
Level 1: | Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||
Level 2: | Valuation is based on observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||||||||||||||||||
Level 3: | Valuation is generated from techniques that use significant assumptions not observable in the market. Valuation techniques include pricing models, discounted cash flow methodologies or similar techniques. | ||||||||||||||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The accounting guidance provides for the irrevocable option to elect, on a contract-by-contract basis, to measure certain financial assets and liabilities at fair value at inception of the contract and record any subsequent changes in fair value in earnings. We have not made any material fair value option elections as of or for the periods disclosed herein. | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Governance and Control | |||||||||||||||||||||||||||||||||||||||||||||
We have a governance framework and a number of key controls that are intended to ensure that our fair value measurements are appropriate and reliable. Our governance framework provides for independent oversight and segregation of duties. Our control processes include review and approval of new transaction types, price verification and review of valuation judgments, methods, models, process controls and results. Groups independent from our trading and investing functions, including our Corporate Valuations Group (“CVG”), Fair Value Committee (“FVC”) and Model Validation Group (“MVG”), participate in the review and validation process. The fair valuation governance process is set up in a manner that allows the Chairperson of the FVC to escalate valuation disputes that cannot be resolved by the FVC to a more senior committee called the Valuations Advisory Committee (“VAC”) for resolution. The VAC is chaired by the Chief Financial Officer and includes other members of senior management. The VAC is only required to convene to review escalated valuation disputes and may meet for a general update on the valuation process. | |||||||||||||||||||||||||||||||||||||||||||||
The CVG performs periodic verification of fair value measurements to determine if assigned fair values are reasonable. For example, in cases where we rely on third-party pricing services to obtain fair value measures, we analyze pricing variances among different pricing sources and validate the final price used by comparing the information to additional sources, including dealer pricing indications in transaction results and other internal sources, where necessary. Additional validation procedures performed by the CVG include reviewing (either directly or indirectly through the reasonableness of assigned fair values) valuation inputs and assumptions and monitoring acceptable variances between recommended prices and validation prices. The CVG and the Trade Analytics and Valuation (“TAV”) team perform due diligence reviews of the third-party pricing services by comparing their prices to those from other sources and reviewing other control documentation. Additionally, when necessary, the CVG and TAV challenge prices from third-party vendors to ensure reasonableness of prices through a pricing challenge process. This may include a request for transparency of the assumptions used by the third party. | |||||||||||||||||||||||||||||||||||||||||||||
The FVC, which includes representation from our Risk Management and Finance divisions, is a forum for discussing fair market valuations, inputs, assumptions, methodologies, variance thresholds, valuation control environments and material risks or concerns related to fair market valuations. Additionally, the FVC is empowered to resolve valuation disputes between the primary valuation providers and the CVG, and provides guidance and oversight to ensure an appropriate valuation control environment. The FVC regularly reviews and approves our valuation methodologies to ensure that our methodologies and practices are consistent with industry standards and adhere to regulatory and accounting guidance. The Chief Financial Officer determines when material issues or concerns regarding valuations shall be raised to the Audit Committee or another delegated committee of the Board of Directors. | |||||||||||||||||||||||||||||||||||||||||||||
We have a model policy, established by an independent Model Risk Office, which governs the validation of models and related supporting documentation to ensure the appropriate use of models for pricing. The MVG is part of the Model Risk Office and validates all models and provides ongoing monitoring of their performance, including the validation and monitoring of the performance of all valuation models. | |||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||||||||||||||
The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,440 | $ | 0 | $ | 0 | $ | 4,440 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 426 | 172 | 598 | |||||||||||||||||||||||||||||||||||||||||
RMBS | 0 | 25,493 | 555 | 26,048 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 0 | 5,255 | 174 | 5,429 | |||||||||||||||||||||||||||||||||||||||||
Other ABS | 0 | 2,021 | 7 | 2,028 | |||||||||||||||||||||||||||||||||||||||||
Other securities | 112 | 648 | 18 | 778 | |||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 4,552 | 33,843 | 926 | 39,321 | |||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 0 | 0 | 53 | 53 | |||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 3 | 1,863 | 73 | 1,939 | |||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 0 | 0 | 223 | 223 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,555 | $ | 35,706 | $ | 1,275 | $ | 41,536 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | $ | 3 | $ | 371 | $ | 48 | $ | 422 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 3 | $ | 371 | $ | 48 | $ | 422 | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,117 | $ | 1 | $ | 0 | $ | 4,118 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 467 | 333 | 800 | |||||||||||||||||||||||||||||||||||||||||
RMBS | 0 | 24,820 | 561 | 25,381 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 0 | 5,291 | 228 | 5,519 | |||||||||||||||||||||||||||||||||||||||||
Other ABS | 0 | 2,597 | 65 | 2,662 | |||||||||||||||||||||||||||||||||||||||||
Other securities | 111 | 899 | 18 | 1,028 | |||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 4,228 | 34,075 | 1,205 | 39,508 | |||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 0 | 0 | 53 | 53 | |||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 4 | 1,382 | 66 | 1,452 | |||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 0 | 0 | 221 | 221 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,232 | $ | 35,457 | $ | 1,545 | $ | 41,234 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | $ | 3 | $ | 293 | $ | 43 | $ | 339 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 3 | $ | 293 | $ | 43 | $ | 339 | |||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “Note 1—Summary of Significant Accounting Policies” for additional information. Prior period results have been recast to conform to this presentation. | ||||||||||||||||||||||||||||||||||||||||||||
The balances represent gross derivative amounts and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. The net derivative assets were $1.3 billion and $828 million, and the net derivative liabilities were $257 million and $175 million as of March 31, 2015 and December 31, 2014, respectively. See “Note 9—Derivative Instruments and Hedging Activities” for further information. | |||||||||||||||||||||||||||||||||||||||||||||
(2) | Does not reflect $5 million and $4 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2015 and December 31, 2014, respectively. Non-performance risk is reflected in other assets and liabilities on the consolidated balance sheets and offset through other income in the consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
The determination of the classification of financial instruments in the fair value hierarchy is performed at the end of each reporting period. We consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs. Based upon the specific facts and circumstances of each instrument or instrument category, judgments are made regarding the significance of the unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3. The process for determining fair value using unobservable inputs is generally more subjective and involves a high degree of management judgment and assumptions. During the three months ended March 31, 2015 we had minimal movements between Levels 1 and 2. | |||||||||||||||||||||||||||||||||||||||||||||
Level 3 Recurring Fair Value Rollforward | |||||||||||||||||||||||||||||||||||||||||||||
The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014. When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period. | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.2: Level 3 Recurring Fair Value Rollforward | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
Income Related to Assets and | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities Still Held as of | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | March 31, 2015(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
2015 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 333 | $ | (2 | ) | $ | 5 | $ | 0 | $ | (68 | ) | $ | 0 | $ | (8 | ) | $ | 0 | $ | (88 | ) | $ | 172 | $ | 0 | |||||||||||||||||||
RMBS | 561 | 8 | 8 | 0 | 0 | 0 | (13 | ) | 85 | (94 | ) | 555 | 9 | ||||||||||||||||||||||||||||||||
CMBS | 228 | 0 | 1 | 0 | 0 | 0 | (21 | ) | 0 | (34 | ) | 174 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 65 | 1 | (2 | ) | 0 | (20 | ) | 0 | 0 | 0 | (37 | ) | 7 | 0 | |||||||||||||||||||||||||||||||
Other securities | 18 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 1,205 | 7 | 12 | 0 | (88 | ) | 0 | (42 | ) | 85 | (253 | ) | 926 | 9 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | (3 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 53 | (3 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 66 | 11 | 0 | 0 | 0 | 9 | (12 | ) | 0 | (1 | ) | 73 | 11 | ||||||||||||||||||||||||||||||||
Retained interest in securitizations | 221 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 223 | 2 | ||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 43 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | 7 | $ | (12 | ) | $ | 0 | $ | 0 | $ | 48 | $ | 10 | ||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | Income Related to Assets and Liabilities Still Held as of March 31, 2014(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
2014 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 927 | $ | 0 | $ | 10 | $ | 0 | $ | (112 | ) | $ | 0 | $ | (21 | ) | $ | 64 | $ | (116 | ) | $ | 752 | $ | 0 | ||||||||||||||||||||
RMBS | 1,304 | 20 | 28 | 886 | 0 | 0 | (34 | ) | 57 | (534 | ) | 1,727 | 20 | ||||||||||||||||||||||||||||||||
CMBS | 739 | 0 | 2 | 34 | 0 | 0 | (11 | ) | 38 | (307 | ) | 495 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 343 | 2 | 2 | 0 | 0 | 0 | (1 | ) | 43 | (163 | ) | 226 | 2 | ||||||||||||||||||||||||||||||||
Other securities | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 3,330 | 22 | 42 | 920 | (112 | ) | 0 | (67 | ) | 202 | (1,120 | ) | 3,217 | 22 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 69 | (11 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 61 | (11 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 50 | 0 | 0 | 0 | 0 | 2 | (3 | ) | 0 | (1 | ) | 48 | 0 | ||||||||||||||||||||||||||||||||
Retained interest in securitization | 199 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 197 | (2 | ) | ||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 38 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | (5 | ) | $ | 0 | $ | 0 | $ | 36 | $ | 2 | ||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Gains (Losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | During the three months ended March 31, 2015 and 2014, the transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities, while the transfers out of Level 3 were primarily driven by greater consistency among multiple pricing sources. | ||||||||||||||||||||||||||||||||||||||||||||
(3) | The amount presented for unrealized gains (losses) for assets still held as of the reporting date primarily represents impairments of securities available for sale, accretion on certain fixed maturity securities, changes in fair value of derivative instruments and mortgage servicing rights transactions. Impairment is reported in total other-than-temporary impairment, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(4) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
Significant Level 3 Fair Value Asset and Liability Input Sensitivity | |||||||||||||||||||||||||||||||||||||||||||||
Changes in unobservable inputs may have a significant impact on fair value. Certain of these unobservable inputs will, in isolation, have a directionally consistent impact on the fair value of the instrument for a given change in that input. Alternatively, the fair value of the instrument may move in an opposite direction for a given change in another input. In general, an increase in the discount rate, default rates, loss severity and credit spreads, in isolation, would result in a decrease in the fair value measurement. In addition, an increase in default rates would generally be accompanied by a decrease in recovery rates, slower prepayment rates and an increase in liquidity spreads. | |||||||||||||||||||||||||||||||||||||||||||||
Techniques and Inputs for Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the significant unobservable inputs relied upon to determine the fair values of our recurring Level 3 financial instruments. We utilize multiple third-party pricing services to obtain fair value measures for our securities. Several of our third-party pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other third-party pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain for a majority of our securities. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.3: Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at March 31, | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
2015 | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
Techniques | Inputs | ||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 555 | Discounted cash flows (3rd party pricing) | Yield | 1-22% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-22% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 59% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 174 | Discounted cash flows (3rd party pricing) | Yield | 1-2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 7 | Discounted cash flows (3rd party pricing) | Yield | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0% | 0% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1% | 1% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30% | 30% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 190 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 9-20% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 14% | 14% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1500 bps | 489 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.45 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 73 | Discounted cash flows | Swap rates | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 223 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 24-84 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-11% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-11% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-6% | ||||||||||||||||||||||||||||||||||||||||||||
16-91% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 48 | Discounted cash flows | Swap rates | 2% | 2% | |||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
December 31, | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
2014 | Techniques | Inputs | |||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 561 | Discounted cash flows (3rd party pricing) | Yield | 0-18% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-23% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 55% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 228 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 1% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 65 | Discounted cash flows (3rd party pricing) | Yield | 2-7% | 5% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-3% | 2% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1-10% | 7% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30-88% | 71% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 351 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 12-27% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 12% | 12% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1,500 bps | 478 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.63 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 66 | Discounted cash flows | Swap rates | 2-3% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 221 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 25-72 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-13% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-9% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-8% | ||||||||||||||||||||||||||||||||||||||||||||
19-95% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 43 | Discounted cash flows | Swap rates | 2-3% | 2% | |||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. | ||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||||||||||||||||
We are required to measure and recognize certain other assets at fair value on a nonrecurring basis on the consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, from the application of LOCOM accounting or when we evaluate for impairment). The following table presents the carrying amount of the assets measured at fair value on a nonrecurring basis and still held as of March 31, 2015 and December 31, 2014, and for which a nonrecurring fair value measurement was recorded during the three and twelve months then ended: | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.4: Nonrecurring Fair Value Measurements Related to Assets Still Held at Period End | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 0 | $ | 0 | $ | 63 | $ | 63 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | 15 | 0 | 15 | |||||||||||||||||||||||||||||||||||||||||
Other assets(1) | 0 | 0 | 28 | 28 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 15 | $ | 91 | $ | 106 | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 0 | $ | 0 | $ | 121 | $ | 121 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | 34 | 0 | 34 | |||||||||||||||||||||||||||||||||||||||||
Other assets(1) | 0 | 0 | 65 | 65 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 34 | $ | 186 | $ | 220 | |||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Includes foreclosed property and repossessed assets of $28 million as of March 31, 2015, compared to foreclosed property and repossessed assets of $60 million and long-lived assets held for sale of $5 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||||||
In the above table, loans held for investment primarily include nonperforming loans for which specific reserves or charge-offs have been recognized. These loans are classified as Level 3 as they are valued based in part on the estimated fair value of the underlying collateral and the non-recoverable rate, which is considered to be a significant unobservable input. Collateral fair value sources include the appraisal value obtained from independent appraisers, broker pricing opinions, or other available market information. The non-recoverable rate ranged from 9% to 74%, with a weighted average of 34%, and from 0% to 74%, with a weighted average of 30%, as of March 31, 2015 and December 31, 2014, respectively. The fair value of the other assets classified as Level 3 is determined based on appraisal value or listing price which involves significant judgment; the significant unobservable inputs and related quantitative information are not meaningful to disclose as they vary significantly across properties and collateral. | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at March 31, 2015 and 2014: | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings Related to Assets Still Held at Period End | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | (5 | ) | $ | (9 | ) | |||||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other assets(1) | (4 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | $ | (9 | ) | $ | (13 | ) | |||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Includes losses related to foreclosed property and repossessed assets and long-lived assets held for sale. | ||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
The following table presents the fair value of financial instruments, whether or not recognized on the consolidated balance sheets at fair value, as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||||||
Table 12.6: Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | Estimated Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 8,891 | $ | 8,891 | $ | 8,891 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Restricted cash for securitization investors | 234 | 234 | 234 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale | 39,321 | 39,321 | 4,552 | 33,843 | 926 | ||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | 23,241 | 24,653 | 199 | 24,197 | 257 | ||||||||||||||||||||||||||||||||||||||||
Net loans held for investment | 199,573 | 202,522 | 0 | 0 | 202,522 | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,331 | 1,358 | 0 | 1,358 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest receivable(1) | 1,078 | 1,078 | 0 | 1,078 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 1,939 | 1,939 | 3 | 1,863 | 73 | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 223 | 223 | 0 | 0 | 223 | ||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 25,232 | $ | 25,232 | $ | 25,232 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 185,208 | 180,037 | 0 | 11,253 | 168,784 | ||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 12,717 | 12,826 | 0 | 12,826 | 0 | ||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 20,599 | 20,967 | 0 | 20,967 | 0 | ||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 933 | 933 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 6,820 | 6,823 | 0 | 6,823 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest payable(1) | 195 | 195 | 0 | 195 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | 422 | 422 | 3 | 371 | 48 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Estimated Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 7,242 | $ | 7,242 | $ | 7,242 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Restricted cash for securitization investors | 234 | 234 | 234 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale | 39,508 | 39,508 | 4,228 | 34,075 | 1,205 | ||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | 22,500 | 23,634 | 0 | 23,503 | 131 | ||||||||||||||||||||||||||||||||||||||||
Net loans held for investment | 203,933 | 207,104 | 0 | 0 | 207,104 | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 626 | 650 | 0 | 650 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest receivable(1) | 1,079 | 1,079 | 0 | 1,079 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivatives assets(1)(2) | 1,452 | 1,452 | 4 | 1,382 | 66 | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 221 | 221 | 0 | 0 | 221 | ||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 25,081 | $ | 25,081 | $ | 25,081 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 180,467 | 174,074 | 0 | 11,668 | 162,406 | ||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 11,624 | 11,745 | 0 | 11,745 | 0 | ||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 18,684 | 19,083 | 0 | 19,083 | 0 | ||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 880 | 880 | 880 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 17,269 | 17,275 | 0 | 17,275 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest payable(1) | 254 | 254 | 0 | 254 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivatives liabilities(1)(2) | 339 | 339 | 3 | 293 | 43 | ||||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
-1 | As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. Prior period results have been recast to conform this presentation. See additional information in “Note 1—Summary of Significant Accounting Policies.” | ||||||||||||||||||||||||||||||||||||||||||||
(2) | The balances represent gross derivative amounts and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See additional information in “Note 9—Derivative Instruments and Hedging Activities” for additional information. | ||||||||||||||||||||||||||||||||||||||||||||
The following describes the valuation techniques used in estimating the fair value of our financial instruments as of March 31, 2015 and December 31, 2014. We applied the fair value provisions to the financial instruments not recognized on the consolidated balance sheets at fair value, which include securities held to maturity, loans held for investment, loans held for sale, interest receivable, interest-bearing deposits, securitized debt obligations, other borrowings and senior and subordinated notes. The provisions requiring us to maximize the use of observable inputs and to measure fair value using a notion of exit price were factored into our selection of inputs for our established valuation techniques. | |||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amounts of cash and due from banks, federal funds sold and securities purchased under agreements to resell and interest-bearing deposits with banks approximate fair value. | |||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash for Securitization Investors | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of restricted cash for securitization investors approximates the fair value due to its relatively short-term nature. | |||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||||||||||||||||||
Quoted prices in active markets are used to measure the fair value of U.S. Treasury debt obligations. For other investment categories, we utilize multiple third-party pricing services to obtain fair value measurements for the large majority of our securities. A pricing service may be considered as the primary pricing provider for certain types of securities, and the designation of the primary pricing provider may vary depending on the type of securities. The determination of the primary pricing provider is based on our experience and validation benchmark of the pricing service’s performance in terms of providing fair value measurements for the various types of securities. | |||||||||||||||||||||||||||||||||||||||||||||
Certain securities are classified as Level 2 and 3, the majority of which are collateralized mortgage obligations and mortgage-backed securities. Level 2 and 3 classifications indicate that significant valuation assumptions are not consistently observable in the market. When significant assumptions are not consistently observable, fair values are derived using the best available data. Such data may include quotes provided by a dealer, the use of external pricing services, independent pricing models, or other model-based valuation techniques such as calculation of the present values of future cash flows incorporating assumptions such as benchmark yields, spreads, prepayment speeds, credit ratings and losses. The techniques used by the pricing services utilize observable market data to the extent available. Pricing models may be used, which can vary by asset class and may incorporate available trade, bid and other market information. Across asset classes, information such as trader/dealer input, credit spreads, forward curves and prepayment speeds are used to help determine appropriate valuations. Because many fixed income securities do not trade on a daily basis, the evaluated pricing applications may apply available information through processes such as benchmarking curves, like securities, sector groupings and matrix pricing to prepare valuations. In addition, model processes are used by the pricing services to develop prepayment and interest rate scenarios. | |||||||||||||||||||||||||||||||||||||||||||||
We validate the pricing obtained from the primary pricing providers through comparison of pricing to additional sources, including other pricing services, dealer pricing indications in transaction results and other internal sources. Pricing variances among different pricing sources are analyzed and validated. Additionally, on an on-going basis, we may select a sample of securities and test the third-party valuation by obtaining more detailed information about the pricing methodology, sources of information and assumptions used to value the securities. | |||||||||||||||||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of our residential, asset-backed and commercial securities include yield, prepayment rate, default rate and loss severity in the event of default. Significant increases or decreases in any of those inputs in isolation or combination would result in a significant change in fair value measurement. Generally, an increase in the yield assumption will result in a decrease in fair value measurement; however, an increase or decrease in prepayment rate, default rate or loss severity may have a different impact on the fair value given various characteristics of the security including the capital structure of the deal, credit enhancement for the security or other factors. | |||||||||||||||||||||||||||||||||||||||||||||
Net Loans Held For Investment | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment that are individually impaired are carried at the lower of cost or fair value of the underlying collateral, less the estimated cost to sell. The fair values of credit card loans, installment loans, auto loans, home loans and commercial loans are estimated using a discounted cash flow method, which is a form of the income approach. Discount rates are determined considering rates at which similar portfolios of loans would be made under current conditions and considering liquidity spreads applicable to each loan portfolio based on the secondary market. The fair value of credit card loans excludes any value related to customer account relationships. For those loans held for investment that are recorded at fair value on our consolidated balance sheets on a nonrecurring basis, the fair value is determined using appraisal values that are obtained from independent appraisers, broker pricing opinions or other available market information, adjusted for the estimated costs to transact the sale. | |||||||||||||||||||||||||||||||||||||||||||||
Due to the use of significant unobservable inputs, loans held for investment are classified as Level 3 under the fair value hierarchy. Fair value adjustments for individually impaired collateralized loans held for investment are recorded in provision for credit losses in the consolidated statements of income. | |||||||||||||||||||||||||||||||||||||||||||||
Loans Held For Sale | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale are carried at the lower of aggregate cost, net of deferred fees and deferred origination costs, or fair value. We originate loans with the intent to sell them. Commercial mortgage loans are sold to government-sponsored enterprises as part of a delegated underwriting and servicing (“DUS”) program. For DUS commercial mortgage loans, the fair value is estimated primarily using contractual prices and other observable market-based inputs. For residential mortgage loans classified as held for sale, the fair value is estimated using observable market prices for loans with similar characteristics as the primary component, with the secondary component derived from typical securitization activities and market conditions. Credit card loans held for sale are valued based on other observable market-based inputs. These assets are therefore classified as Level 2. Fair value adjustments to loans held for sale are recorded in other non-interest income in our consolidated statements of income. | |||||||||||||||||||||||||||||||||||||||||||||
Interest Receivable | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of interest receivable approximates the fair value of this asset due to its relatively short-term nature. | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets and Liabilities | |||||||||||||||||||||||||||||||||||||||||||||
We use both exchange-traded derivatives and OTC derivatives to manage our interest rate and foreign currency risk exposure. Quoted market prices are available and used for our exchange-traded derivatives, which we classify as Level 1. However, predominantly all of our derivatives are traded in OTC markets where quoted market prices are not always readily available. Therefore, we value most OTC derivatives using valuation techniques, which include internally-developed models. We primarily rely on market observable inputs for our models, such as interest rate yield curves, credit curves, option volatility and currency rates, that vary depending on the type of derivative and nature of the underlying rate, price or index upon which the derivative’s value is based. Where model inputs can be observed in a liquid market and the model does not require significant judgment, such derivatives are typically classified as Level 2 of the fair value hierarchy. When instruments are traded in less liquid markets and significant inputs are unobservable, such as interest rate swaps whose remaining terms do not correlate with market observable interest rate yield curves, the derivatives are classified as Level 3. The impact of counterparty non-performance risk is considered when measuring the fair value of derivative assets. These derivatives are included in other assets on the consolidated balance sheets. | |||||||||||||||||||||||||||||||||||||||||||||
We validate the pricing obtained from the internal models through comparison of pricing to additional sources, including external valuation agents and other internal sources. Pricing variances among different pricing sources are analyzed and validated. | |||||||||||||||||||||||||||||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||||||||||||||||||||||||||||
We record consumer MSRs at fair value on a recurring basis, while commercial MSRs are subsequently measured at amortized cost with impairment recognized as a reduction in other non-interest income. MSRs do not trade in an active market with readily observable prices. Accordingly, we determine the fair value of MSRs using a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that we believe other market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate/option-adjusted spreads, cost to service, contractual servicing fee income, ancillary income and late fees. Fair value measurements of MSRs use significant unobservable inputs and, accordingly, are classified as Level 3. In the event we enter into an agreement with a third party to sell the MSRs, the valuation is based on the agreed upon sale price which is considered to be the determined exit price for the assets and the MSRs are classified as Level 2. | |||||||||||||||||||||||||||||||||||||||||||||
Retained Interests in Securitizations | |||||||||||||||||||||||||||||||||||||||||||||
We have retained interests in various mortgage securitization deals from previous acquisitions. Our retained interest includes rights to future cash flows arising from the receivables, the most significant being certificated interest-only bonds issued by the trust. We record our interest in these deals at fair value using valuation models to calculate the present value of future income. The model incorporates various assumptions that market participants use in estimating future income including weighted-average life, constant prepayment rate, discount rate, default rate and severity. | |||||||||||||||||||||||||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||||||||||||||||||||||
Included in other assets are foreclosed property, other repossessed assets and long-lived assets held for sale. Foreclosed property and other repossessed assets are carried at the lower of the carrying amount or fair value less costs to sell. The fair value is determined based on the appraisal value or listing price of the property or collateral provided by independent appraisers, and is adjusted for the estimated costs to transact the sale. Due to the use of significant unobservable inputs, foreclosed property is classified as Level 3 under the fair value hierarchy. Fair value adjustments for foreclosed property are recorded in other non-interest expense in the consolidated statements of income. | |||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets held for sale are also subject to fair value measurement on a nonrecurring basis, and carried at the lower of their carrying amount or fair value less costs to sell. The fair value is determined based on the appraisal value or listing price of the property or collateral provided by independent appraisers, and is adjusted for the estimated costs to transact the sale. Due to the use of significant unobservable inputs, long-lived assets held for sale are classified as Level 3 under the fair value hierarchy. Fair value adjustments for long-lived assets are recorded in other non-interest expense in the consolidated statements of income. | |||||||||||||||||||||||||||||||||||||||||||||
Non-Interest Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of non-interest bearing deposits approximates fair value. | |||||||||||||||||||||||||||||||||||||||||||||
Interest-Bearing Deposits | |||||||||||||||||||||||||||||||||||||||||||||
The fair value of interest-bearing deposits is determined based on discounted expected cash flows using discount rates consistent with current market rates for similar products with similar remaining terms. | |||||||||||||||||||||||||||||||||||||||||||||
Securitized Debt Obligations | |||||||||||||||||||||||||||||||||||||||||||||
We utilized multiple third-party pricing services to obtain fair value measurements for the large majority of our securitized debt obligations. The techniques used by the pricing services utilize observable market data to the extent available; and pricing models may be used which incorporate available trade, bid and other market information as described in the above section. We used internal pricing models, discounted cash flow models or similar techniques to estimate the fair value of certain securitization trusts where third-party pricing was not available. | |||||||||||||||||||||||||||||||||||||||||||||
Senior and Subordinated Notes | |||||||||||||||||||||||||||||||||||||||||||||
We engage multiple third-party pricing services in order to estimate the fair value of senior and subordinated notes. The pricing services utilize pricing models that incorporate available trade, bid and other market information. It also incorporates spread assumptions, volatility assumptions and relevant credit information into the pricing models. | |||||||||||||||||||||||||||||||||||||||||||||
Federal Funds Purchased and Securities Loaned or Sold under Agreements to Repurchase and Other Borrowings | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of federal funds purchased and repurchase agreements approximates fair value. The fair value of FHLB advances is determined based on discounted expected cash flows using discount rates consistent with current market rates for FHLB advances with similar remaining terms. | |||||||||||||||||||||||||||||||||||||||||||||
Interest Payable | |||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of interest payable approximates the fair value of this liability due to its relatively short-term nature. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Business Segments | |||||||||||||||||||||
NOTE 13—BUSINESS SEGMENTS | |||||||||||||||||||||
Our principal operations are currently organized into three major business segments, which are defined based on the products and services provided or the type of customer served: Credit Card, Consumer Banking and Commercial Banking. The operations of acquired businesses have been integrated into our existing business segments. Certain activities that are not part of a segment, such as management of our corporate investment portfolio and asset/liability management by our centralized Corporate Treasury group, are included in the Other category. | |||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||
We report the results of each of our business segments on a continuing operations basis. See “Note 2—Discontinued Operations” for a discussion of discontinued operations. The results of our individual businesses reflect the manner in which management evaluates performance and makes decisions about funding our operations and allocating resources. | |||||||||||||||||||||
Business Segment Reporting Methodology | |||||||||||||||||||||
The results of our business segments are intended to reflect each segment as if it were a stand-alone business. Our internal management and reporting process used to derive our segment results employs various allocation methodologies, including funds transfer pricing, to assign certain balance sheet assets, deposits and other liabilities and their related revenue and expenses directly or indirectly attributable to each business segment. Our funds transfer pricing process provides a funds credit for sources of funds, such as deposits generated by our Consumer Banking and Commercial Banking businesses, and a funds charge for the use of funds by each segment. Due to the integrated nature of our business segments, estimates and judgments have been made in allocating certain revenue and expense items. Transactions between segments are based on specific criteria or approximate third-party rates. We regularly assess the assumptions, methodologies and reporting classifications used for segment reporting, which may result in the implementation of refinements or changes in future periods. We provide additional information on the allocation methodologies used to derive our business segment results in “Note 19—Business Segments” in our 2014 Form 10-K. | |||||||||||||||||||||
Segment Results and Reconciliation | |||||||||||||||||||||
We may periodically change our business segments or reclassify business segment results based on modifications to our management reporting methodologies and changes in organizational alignment. The following tables present our business segment results for the three months ended March 31, 2015 and 2014, selected balance sheet data as of March 31, 2015 and 2014, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, assets and deposits. Prior period amounts have been recast to conform to the current period. | |||||||||||||||||||||
Table 13.1: Segment Results and Reconciliation | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial | Other | Consolidated | ||||||||||||||||
Card | Banking | Banking | Total | ||||||||||||||||||
Net interest income | $ | 2,666 | $ | 1,434 | $ | 461 | $ | 15 | $ | 4,576 | |||||||||||
Non-interest income | 816 | 158 | 114 | (17 | ) | 1,071 | |||||||||||||||
Total net revenue (loss) | 3,482 | 1,592 | 575 | (2 | ) | 5,647 | |||||||||||||||
Provision for credit losses | 669 | 206 | 60 | 0 | 935 | ||||||||||||||||
Non-interest expense: | |||||||||||||||||||||
Amortization of intangibles: | |||||||||||||||||||||
PCCR intangible amortization | 84 | 0 | 0 | 0 | 84 | ||||||||||||||||
Core deposit intangible amortization | 0 | 22 | 4 | 0 | 26 | ||||||||||||||||
Total PCCR and core deposit intangible amortization | 84 | 22 | 4 | 0 | 110 | ||||||||||||||||
Other non-interest expense | 1,692 | 948 | 268 | 31 | 2,939 | ||||||||||||||||
Total non-interest expense | 1,776 | 970 | 272 | 31 | 3,049 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,037 | 416 | 243 | (33 | ) | 1,663 | |||||||||||||||
Income tax provision (benefit) | 369 | 150 | 88 | (78 | ) | 529 | |||||||||||||||
Income from continuing operations, net of tax | $ | 668 | $ | 266 | $ | 155 | $ | 45 | $ | 1,134 | |||||||||||
Loans held for investment | $ | 81,754 | $ | 71,379 | $ | 50,741 | $ | 104 | $ | 203,978 | |||||||||||
Deposits | 0 | 172,502 | 32,575 | 5,363 | 210,440 | ||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial | Other | Consolidated | ||||||||||||||||
Card | Banking | Banking | Total | ||||||||||||||||||
Net interest income (expense) | $ | 2,525 | $ | 1,433 | $ | 421 | $ | (29 | ) | $ | 4,350 | ||||||||||
Non-interest income | 785 | 150 | 87 | (2 | ) | 1,020 | |||||||||||||||
Total net revenue (loss) | 3,310 | 1,583 | 508 | (31 | ) | 5,370 | |||||||||||||||
Provision (benefit) for credit losses | 558 | 140 | 40 | (3 | ) | 735 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||||
Amortization of intangibles: | |||||||||||||||||||||
PCCR intangible amortization | 98 | 0 | 0 | 0 | 98 | ||||||||||||||||
Core deposit intangible amortization | 0 | 30 | 6 | 0 | 36 | ||||||||||||||||
Total PCCR and core deposit intangible amortization | 98 | 30 | 6 | 0 | 134 | ||||||||||||||||
Other non-interest expense | 1,628 | 900 | 249 | 21 | 2,798 | ||||||||||||||||
Total non-interest expense | 1,726 | 930 | 255 | 21 | 2,932 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,026 | 513 | 213 | (49 | ) | 1,703 | |||||||||||||||
Income tax provision (benefit) | 358 | 183 | 76 | (38 | ) | 579 | |||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 668 | $ | 330 | $ | 137 | $ | (11 | ) | $ | 1,124 | ||||||||||
Loans held for investment | $ | 75,850 | $ | 70,727 | $ | 46,230 | $ | 134 | $ | 192,941 | |||||||||||
Deposits | 0 | 171,529 | 31,485 | 5,310 | 208,324 | ||||||||||||||||
Commitments_Contingencies_Guar
Commitments, Contingencies, Guarantees, and Others | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Commitments, Contingencies, Guarantees, and Others | |||||||||||||||||||||||||||||
NOTE 14—COMMITMENTS, CONTINGENCIES, GUARANTEES AND OTHERS | |||||||||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||||||||
We have credit exposure on agreements that we entered into to absorb a portion of the risk of loss on certain manufactured housing securitizations issued by GreenPoint Credit, LLC in 2000. Our maximum credit exposure related to these agreements totaled $13 million and $14 million as of March 31, 2015 and December 31, 2014, respectively. These agreements are recorded on our consolidated balance sheets as a component of other liabilities and our obligations under these agreements was $9 million and $12 million as of March 31, 2015 and December 31, 2014, respectively. See “Note 6—Variable Interest Entities and Securitizations” for additional information about our manufactured housing securitization transactions. | |||||||||||||||||||||||||||||
Letters of Credit and Loss Sharing Agreements | |||||||||||||||||||||||||||||
We issue letters of credit (financial standby, performance standby and commercial) to meet the financing needs of our customers. Standby letters of credit are conditional commitments issued by us to guarantee the performance of a customer to a third party in a borrowing arrangement. Commercial letters of credit are short-term commitments issued primarily to facilitate trade finance activities for customers and are generally collateralized by the goods being shipped to the client. These collateral requirements are similar to those for funded transactions and are established based on management’s credit assessment of the customer. Management conducts regular reviews of all outstanding letters of credit and customer acceptances, and the results of these reviews are considered in assessing the adequacy of our allowance for loan and lease losses. | |||||||||||||||||||||||||||||
On November 1, 2013, we acquired Beech Street Capital, a privately-held, DUS lender that originates multifamily commercial real estate loans with the intent to sell them to a government-sponsored enterprise (“GSE”). Beech Street Capital was renamed Capital One Multifamily Finance in 2014. We enter into loss sharing agreements with Fannie Mae upon the sale of the DUS commercial loans. Under these agreements, we share losses on the covered loans with Fannie Mae on a pari-passu basis. At inception, we record a liability representing the fair value of our obligation which is subsequently amortized as we are released from risk of payment under the loss sharing agreement. If payment under the loss sharing agreement becomes probable and estimable, an additional liability may be recorded on the consolidated balance sheets and a non-interest expense may be recognized in the consolidated statements of income. The associated MSRs are also reviewed for impairment annually. | |||||||||||||||||||||||||||||
We had standby letters of credit and commercial letters of credit with contractual amounts of $2.0 billion and $2.1 billion as of March 31, 2015 and December 31, 2014, respectively. The carrying value of outstanding letters of credit, which we include in other liabilities on our consolidated balance sheets, was $3 million as of both March 31, 2015 and December 31, 2014. These financial guarantees had expiration dates ranging from 2015 to 2025 as of March 31, 2015. The amount of liability recognized on our consolidated balance sheets for Fannie Mae and other loss sharing agreements was $37 million and $36 million as of March 31, 2015 and December 31, 2014, respectively. No additional collateral or recourse provisions exist to reduce this exposure. | |||||||||||||||||||||||||||||
U.K. Cross Sell | |||||||||||||||||||||||||||||
In the U.K., we previously sold payment protection insurance (“PPI”) and other ancillary cross sell products. In response to an elevated level of customer complaints across the industry, heightened media coverage and pressure from consumer advocacy groups, the U.K. Financial Conduct Authority (“FCA”) investigated and raised concerns about the way some companies have handled complaints related to the sale of these insurance policies. Management’s best estimate of incurred losses related to U.K. cross sell products, including PPI, totaled $92 million and $116 million as of March 31, 2015 and December 31, 2014, respectively. The decrease to the reserve for the three months ended March 31, 2015 was a combination of utilization of the reserve through customer refund payments and foreign exchange movements. Given the inherent uncertainty involved in this matter, it is possible our ultimate liability may differ from our current estimate. | |||||||||||||||||||||||||||||
Mortgage Representation and Warranty Liabilities | |||||||||||||||||||||||||||||
We acquired three subsidiaries that originated residential mortgage loans and sold these loans to various purchasers, including purchasers who created securitization trusts. These subsidiaries are Capital One Home Loans, LLC, which was acquired in February 2005; GreenPoint, which was acquired in December 2006 as part of the North Fork acquisition; and CCB, which was acquired in February 2009 and subsequently merged into CONA (collectively, the “subsidiaries”). | |||||||||||||||||||||||||||||
In connection with their sales of mortgage loans, the subsidiaries entered into agreements containing varying representations and warranties about, among other things, the ownership of the loan, the validity of the lien securing the loan, the loan’s compliance with any applicable loan criteria established by the purchaser, including underwriting guidelines and the existence of mortgage insurance, and the loan’s compliance with applicable federal, state and local laws. The representations and warranties do not address the credit performance of the mortgage loans, but mortgage loan performance often influences whether a claim for breach of representation and warranty will be asserted and has an effect on the amount of any loss in the event of a breach of a representation or warranty. | |||||||||||||||||||||||||||||
Each of these subsidiaries may be required to repurchase mortgage loans in the event of certain breaches of these representations and warranties. In the event of a repurchase, the subsidiary is typically required to pay the unpaid principal balance of the loan together with interest and certain expenses (including, in certain cases, legal costs incurred by the purchaser and/or others). The subsidiary then recovers the loan or, if the loan has been foreclosed, the underlying collateral. The subsidiary is exposed to any losses on the repurchased loans, taking into account any recoveries on the collateral. In some instances, rather than repurchase the loans, a subsidiary may agree to make cash payments to make an investor whole on losses or to settle repurchase claims, possibly including claims for attorneys’ fees and interest. In addition, our subsidiaries may be required to indemnify certain purchasers and others against losses they incur as a result of certain breaches of representations and warranties. | |||||||||||||||||||||||||||||
These subsidiaries, in total, originated and sold to non-affiliates approximately $111 billion original principal balance of mortgage loans between 2005 and 2008, which are the years (or “vintages”) with respect to which our subsidiaries have received the vast majority of the repurchase requests and other related claims. | |||||||||||||||||||||||||||||
The following table presents the original principal balance of mortgage loan originations, by vintage for 2005 through 2008, for the three general categories of purchasers of mortgage loans and the estimated unpaid principal balance as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
Table 14.1: Unpaid Principal Balance of Mortgage Loans Originated and Sold to Third Parties Based on Category of Purchaser | |||||||||||||||||||||||||||||
Estimated Unpaid Principal Balance | Original Principal Balance | ||||||||||||||||||||||||||||
(Dollars in billions) | March 31, 2015 | December 31, 2014 | Total | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
GSEs | $ | 2 | $ | 3 | $ | 11 | $ | 1 | $ | 4 | $ | 3 | $ | 3 | |||||||||||||||
Insured Securitizations | 4 | 4 | 20 | 0 | 2 | 8 | 10 | ||||||||||||||||||||||
Uninsured Securitizations and Other | 16 | 16 | 80 | 3 | 15 | 30 | 32 | ||||||||||||||||||||||
Total | $ | 22 | $ | 23 | $ | 111 | $ | 4 | $ | 21 | $ | 41 | $ | 45 | |||||||||||||||
Between 2005 and 2008, our subsidiaries sold an aggregate amount of $11 billion in original principal balance mortgage loans to the GSEs. | |||||||||||||||||||||||||||||
Of the $20 billion in original principal balance of mortgage loans sold directly by our subsidiaries to private-label purchasers who placed the loans into securitizations supported by bond insurance (“Insured Securitizations”), approximately 48% of the original principal balance was covered by bond insurance. Further, approximately $16 billion original principal balance was placed in securitizations as to which the monoline bond insurers have made repurchase requests or loan file requests to one of our subsidiaries (“Active Insured Securitizations”) and the remaining approximately $4 billion original principal balance was placed in securitizations as to which the monoline bond insurers have not made repurchase requests or loan file requests to one of our subsidiaries (“Inactive Insured Securitizations”). Insured Securitizations often allow the monoline bond insurer to act independently of the investors. Bond insurers typically have indemnity agreements directly with both the mortgage originators and the securitizers, and they often have super-majority rights within the trust documentation that allow them to direct trustees to pursue mortgage repurchase requests without coordination with other investors. | |||||||||||||||||||||||||||||
Because we do not service most of the loans our subsidiaries sold to others, we do not have complete information about the current ownership of a portion of the $80 billion in original principal balance of mortgage loans not sold directly to GSEs or placed in Insured Securitizations. We have determined based on information obtained from third-party databases that about $48 billion original principal balance of these mortgage loans was placed in private-label publicly issued securitizations not supported by bond insurance (“Uninsured Securitizations”). An additional approximately $22 billion original principal balance of mortgage loans were initially sold to private investors as whole loans. Various known and unknown investors purchased the remaining $10 billion original principal balance of mortgage loans. | |||||||||||||||||||||||||||||
With respect to the $111 billion in original principal balance of mortgage loans originated and sold to others between 2005 and 2008, we estimate that approximately $22 billion in unpaid principal balance remains outstanding as of March 31, 2015, of which approximately $4 billion in unpaid principal balance is at least 90 days delinquent. Approximately $22 billion in losses have been realized by third parties. Because we do not service most of the loans we sold to others, we do not have complete information about the underlying credit performance levels for some of these mortgage loans. These amounts reflect our best estimates, including extrapolations of underlying credit performance where necessary. These estimates could change as we get additional data or refine our analysis. | |||||||||||||||||||||||||||||
The subsidiaries had open repurchase requests relating to approximately $2.5 billion original principal balance of mortgage loans as of March 31, 2015, unchanged from December 31, 2014. Currently, repurchase demands predominantly relate to the 2006 and 2007 vintages. We have received relatively few repurchase demands from the 2008 and 2009 vintages, mostly because GreenPoint ceased originating mortgages in August 2007. | |||||||||||||||||||||||||||||
The following table presents information on pending repurchase requests by counterparty category and timing of initial repurchase request. The amounts presented are based on original loan principal balances. | |||||||||||||||||||||||||||||
Table 14.2: Open Pipeline All Vintages (all entities)(1) | |||||||||||||||||||||||||||||
(Dollars in millions) | GSEs | Insured | Uninsured | Total | |||||||||||||||||||||||||
Securitizations | Securitizations | ||||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Open claims as of December 31, 2013 | $ | 89 | $ | 1,614 | $ | 1,122 | $ | 2,825 | |||||||||||||||||||||
Gross new demands received | 22 | 0 | 742 | 764 | |||||||||||||||||||||||||
Loans repurchased/made whole | (31 | ) | 0 | (5 | ) | (36 | ) | ||||||||||||||||||||||
Demands rescinded | (64 | ) | (965 | ) | (12 | ) | (1,041 | ) | |||||||||||||||||||||
Open claims as of December 31, 2014 | $ | 16 | $ | 649 | $ | 1,847 | $ | 2,512 | |||||||||||||||||||||
Gross new demands received | 6 | 0 | 1 | 7 | |||||||||||||||||||||||||
Loans repurchased/made whole | (3 | ) | 0 | (1 | ) | (4 | ) | ||||||||||||||||||||||
Demands rescinded | (2 | ) | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||||||||
Open claims as of March 31, 2015 | $ | 17 | $ | 648 | $ | 1,839 | $ | 2,504 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | The open pipeline includes all repurchase requests ever received by our subsidiaries where either the requesting party has not formally rescinded the repurchase request and where our subsidiary has not agreed to either repurchase the loan at issue or make the requesting party whole with respect to its losses. Accordingly, repurchase requests denied by our subsidiaries and not pursued by the counterparty remain in the open pipeline, with the exception of certain aged repurchase requests submitted by parties without contractual standing to pursue such requests, which may be removed from the pipeline. Finally, the amounts reflected in this chart are the original principal balance amounts of the mortgage loans at issue and do not correspond to the losses our subsidiary would incur upon the repurchase of these loans. | ||||||||||||||||||||||||||||
The following table summarizes changes in our representation and warranty reserve for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Table 14.3: Changes in Representation and Warranty Reserve(1) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||||||
Representation and warranty reserve, beginning of period | $ | 731 | $ | 1,172 | |||||||||||||||||||||||||
Provision (benefit) for mortgage representation and warranty losses: | |||||||||||||||||||||||||||||
Recorded in continuing operations | 1 | 14 | |||||||||||||||||||||||||||
Recorded in discontinued operations | (19 | ) | (47 | ) | |||||||||||||||||||||||||
Total benefit for mortgage representation and warranty losses | (18 | ) | (33 | ) | |||||||||||||||||||||||||
Net realized losses | (40 | ) | (11 | ) | |||||||||||||||||||||||||
Representation and warranty reserve, end of period | $ | 673 | $ | 1,128 | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Reported on our consolidated balance sheets as a component of other liabilities. | ||||||||||||||||||||||||||||
The following table summarizes the allocation of our representation and warranty reserve as March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Table 14.4: Allocation of Representation and Warranty Reserve | |||||||||||||||||||||||||||||
Reserve Liability | Loans Sold | ||||||||||||||||||||||||||||
(Dollars in millions, except for loans sold) | March 31, 2015 | December 31, 2014 | 2005 to 2008(1) | ||||||||||||||||||||||||||
Selected period-end data: | |||||||||||||||||||||||||||||
GSEs and Active Insured Securitizations | $ | 492 | $ | 499 | $ | 27 | |||||||||||||||||||||||
Inactive Insured Securitizations and Others | 181 | 232 | 84 | ||||||||||||||||||||||||||
Total(2) | $ | 673 | $ | 731 | $ | 111 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Reflects, in billions, the total original principal balance of loans originated by our subsidiaries and sold to third-party investors between 2005 and 2008. | ||||||||||||||||||||||||||||
(2) | The total reserve liability includes an immaterial amount related to loans that were originated after 2008. | ||||||||||||||||||||||||||||
We established reserves for the $11 billion original principal balance of GSE loans, based on open claims and historic repurchase rates. We have entered into and completed repurchase or settlement agreements with respect to the majority of our repurchase exposure within this category. | |||||||||||||||||||||||||||||
Our reserves also could be impacted by any claims which may be brought by governmental agencies under the Financial Institutions Reform, Recovery, and Enforcement Act (“FIRREA”), the False Claims Act, or other federal or state statutes. For example, GreenPoint and Capital One have received requests for information and/or subpoenas from various governmental regulators and law enforcement authorities, including members of the RMBS Working Group, relating to the origination of loans for sale to the GSEs and to RMBS participants. We are cooperating with these regulators and other authorities in responding to such requests. | |||||||||||||||||||||||||||||
For the $16 billion original principal balance in Active Insured Securitizations, our reserving approach is based upon the expected resolution of litigation with the monoline bond insurers. Accordingly, our representation and warranty reserves for this category are litigation reserves. In establishing litigation reserves for this category, we consider the current and future monoline insurer losses inherent within the securitization and apply legal judgment to the developing factual and legal record to estimate the liability for each securitization. We consider as factors within the analysis our own past monoline settlements in addition to publicly available industry monoline settlements. Our reserves with respect to the U.S. Bank Litigation, referenced below, are contained within the Active Insured Securitization reserve category. Further, to the extent we have litigation reserves with respect to indemnification risks from certain representation and warranty lawsuits brought by monoline bond insurers against third-party securitizations sponsors, where one of our subsidiaries provided some or all of the mortgage collateral within the securitization but is not a defendant in the litigation, such reserves are also contained within this category. | |||||||||||||||||||||||||||||
For the $4 billion original principal balance of mortgage loans in the Inactive Insured Securitizations category and the $48 billion original principal balance of mortgage loans in the Uninsured Securitizations category, we establish reserves based on an assessment of probable and estimable legal liability, if any, utilizing both our own experience and publicly available industry settlement information to estimate lifetime liability. In contrast with the bond insurers in the Insured Securitizations, investors in Uninsured Securitizations often face a number of legal and logistical hurdles before they can force a securitization trustee to pursue mortgage repurchases, including the need to coordinate with a certain percentage of investors holding the securities and to indemnify the trustee for any litigation it undertakes. Accordingly, we only reserve for such exposures when a trustee or investor with standing brings claims and it is probable we have incurred a loss. Some Uninsured Securitization investors from this category are currently suing investment banks and securitization sponsors under federal and/or state securities laws. Although we face some indirect indemnity risks from these litigations, we generally have not established reserves with respect to these indemnity risks because we do not consider them to be both probable and reasonably estimable liabilities. In addition, to the extent we have litigation reserves with respect to indemnification risks from certain representation and warranty lawsuits brought by parties who purchased loans from our subsidiaries and subsequently re-sold the loans into securitizations, such reserves are also contained within this category. | |||||||||||||||||||||||||||||
For the $22 billion original principal balance of mortgage loans sold to private investors as whole loans, we establish reserves by relying on our historical and anticipated claims and repurchase rates to estimate lifetime liability. | |||||||||||||||||||||||||||||
The aggregate reserve for all three subsidiaries totaled $673 million as of March 31, 2015, compared to $731 million as of December 31, 2014. We recorded a net benefit for mortgage representation and warranty losses of $18 million (which includes a provision of $1 million before taxes in continuing operations and a benefit of $19 million before taxes in discontinued operations) in the first quarter of 2015. The decrease in the representation and warranty reserve was primarily driven by claims paid and legal developments including settlements. | |||||||||||||||||||||||||||||
As part of our business planning processes, we have considered various outcomes relating to the future representation and warranty liabilities of our subsidiaries that are possible but do not rise to the level of being both probable and reasonably estimable outcomes justifying an incremental accrual under applicable accounting standards. Our current best estimate of reasonably possible future losses from representation and warranty claims beyond what was in our reserve as of March 31, 2015 is approximately $2.1 billion, remains unchanged from our estimate at December 31, 2014. The estimate as of March 31, 2015 covers all reasonably possible losses relating to representation and warranty claim activity, including those relating to the U.S. Bank Litigation, the FHFA Litigation, and the LXS Trust Litigation described below. | |||||||||||||||||||||||||||||
In estimating reasonably possible future losses in excess of our current reserves, we assume a portion of the inactive securitizations become active and for all Insured Securitizations, we assume loss rates on the high end of those observed in monoline settlements or court rulings. For our remaining GSE exposures, Uninsured Securitizations and whole loan exposures, our reasonably possible risk estimates assume lifetime loss rates and claims rates at the highest levels of our past experience and also consider the limited instances of observed settlements. We do not assume claim rates or loss rates for these risk categories will be as high as those assumed for the Active Insured Securitizations, however, based on industry precedent. Should the number of claims or the loss rates on these claims increase significantly, our estimate of reasonably possible risk would increase materially. We also assume that we will resolve any loan repurchase requests relating to loans originated more than six years ago at a discount as compared to those originated within six years of a repurchase claim because of the pending legal arguments in various matters concerning the applicable statute of limitations. | |||||||||||||||||||||||||||||
Notwithstanding our ongoing attempts to estimate a reasonably possible amount of future losses beyond our current accrual levels based on current information, it is possible that actual future losses will exceed both the current accrual level and our current estimate of the amount of reasonably possible losses. Our reserve and reasonably possible estimates involve considerable judgment and reflect that there is still significant uncertainty regarding numerous factors that may impact the ultimate loss levels, including, but not limited to: litigation outcomes; court rulings; governmental enforcement decisions; future repurchase and indemnification claim levels; securitization trustees pursuing mortgage repurchase litigation unilaterally or in coordination with investors; investors successfully pursuing repurchase litigation independently and without the involvement of the trustee as a party; ultimate repurchase and indemnification rates; future mortgage loan performance levels; actual recoveries on the collateral; and macroeconomic conditions (including unemployment levels and housing prices). In light of the significant uncertainty as to the ultimate liability our subsidiaries may incur from these matters, an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period. | |||||||||||||||||||||||||||||
Litigation | |||||||||||||||||||||||||||||
In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation related matters when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. Below we provide a description of potentially material legal proceedings and claims. | |||||||||||||||||||||||||||||
For some of the matters disclosed below, we are able to determine estimates of potential future outcomes that are not probable and reasonably estimable outcomes justifying either the establishment of a reserve or an incremental reserve build, but which are reasonably possible outcomes. For other disclosed matters, such an estimate is not possible at this time. For those matters below where an estimate is possible (excluding the reasonably possible future losses relating to the U.S. Bank Litigation, the FHFA Litigation, and the LXS Trust Litigation, because reasonably possible losses with respect to those litigations are included within the reasonably possible representation and warranty liabilities discussed above) management currently estimates the reasonably possible future losses beyond what was in our reserve as of March 31, 2015 was approximately $200 million. Notwithstanding our attempt to estimate a reasonably possible range of loss beyond our current accrual levels for some litigation matters based on current information, it is possible that actual future losses will exceed both the current accrual level and the range of reasonably possible losses disclosed here. Given the inherent uncertainties involved in these matters, especially those involving governmental actors, and the very large or indeterminate damages sought in some of these matters, there is significant uncertainty as to the ultimate liability we may incur from these litigation matters and an adverse outcome in one or more of these matters could be material to our results of operations or cash flows for any particular reporting period. | |||||||||||||||||||||||||||||
Interchange Litigation | |||||||||||||||||||||||||||||
In 2005, a number of entities, each purporting to represent a class of retail merchants, filed antitrust lawsuits (the “Interchange Lawsuits”) against MasterCard and Visa and several member banks, including our subsidiaries and us, alleging among other things, that the defendants conspired to fix the level of interchange fees. The complaints seek injunctive relief and civil monetary damages, which could be trebled. Separately, a number of large merchants have asserted similar claims against Visa and MasterCard only. In October 2005, the class and merchant Interchange Lawsuits were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes, including discovery. In July 2012, the parties executed and filed with the court a Memorandum of Understanding agreeing to resolve the litigation on certain terms set forth in a settlement agreement attached to the Memorandum. The class settlement provides for, among other things, (i) payments by defendants to the class and individual plaintiffs totaling approximately $6.6 billion; (ii) a distribution to the class merchants of an amount equal to 10 basis points of certain interchange transactions for a period of eight months; and (iii) modifications to certain Visa and MasterCard rules regarding point of sale practices. In December 2013, the court granted final approval of the proposed class settlement, which was appealed to the Second Circuit Court of Appeals in January 2014. Several merchant plaintiffs have also opted out of the class settlement, some of which have sued MasterCard, Visa and various member banks, including Capital One (collectively “the Opt-Out Plaintiffs”). Relatedly, in December 2013, individual consumer plaintiffs also filed a proposed national class action against a number of banks, including Capital One, alleging that because the banks conspired to fix interchange fees, consumers were forced to pay more for the fees than appropriate. The consumer case and virtually all of the opt-out cases were consolidated before the U.S. District Court for the Eastern District of New York for certain purposes, including discovery. In November 2014, the court dismissed the proposed consumer class action. The remaining consolidated cases are in their preliminary stages, and Visa and MasterCard have settled a number of individual opt-out cases, requiring non-material payments from all banks, including Capital One. | |||||||||||||||||||||||||||||
As members of Visa, our subsidiary banks have indemnification obligations to Visa with respect to final judgments and settlements, including the Interchange Lawsuits. In the first quarter of 2008, Visa completed an IPO of its stock. With IPO proceeds, Visa established an escrow account for the benefit of member banks to fund certain litigation settlements and claims, including the Interchange Lawsuits. As a result, in the first quarter of 2008, we reduced our Visa-related indemnification liabilities of $91 million recorded in other liabilities with a corresponding reduction of other non-interest expense. We made an election in accordance with the accounting guidance for fair value option for financial assets and liabilities on the indemnification guarantee to Visa, and the fair value of the guarantee as of March 31, 2015 was zero. Separately, in January 2011, we entered into a MasterCard Settlement and Judgment Sharing Agreement, along with other defendant banks, which apportions between MasterCard and its member banks the costs and liabilities of any judgment or settlement arising from the Interchange Lawsuits. | |||||||||||||||||||||||||||||
In March 2011, a furniture store owner named Mary Watson filed a proposed class action in the Supreme Court of British Columbia against Visa, MasterCard, and several banks, including Capital One (the “Watson Litigation”). The lawsuit asserts, among other things, that the defendants conspired to fix the merchant discount fees that merchants pay on credit card transactions in violation of Section 45 of the Competition Act and seeks unspecified damages and injunctive relief. In addition, Capital One has been named as a defendant in similar proposed class action claims filed in other jurisdictions in Canada. In March 2014, the court granted a partial motion for class certification. Both parties appealed the decision to the Court of Appeal for British Columbia, which heard oral argument in December 2014. In April 2015, the merchant plaintiffs and Capital One agreed to settle all matters filed in Canada as to Capital One, subject to court approval. | |||||||||||||||||||||||||||||
Credit Card Interest Rate Litigation | |||||||||||||||||||||||||||||
The Capital One Bank Credit Card Interest Rate Multi-district Litigation matter was created as a result of a June 2010 transfer order issued by the U.S. Judicial Panel on Multi-district Litigation (“MDL”), which consolidated for pretrial proceedings in the U.S. District Court for the Northern District of Georgia two pending putative class actions against COBNA-Nancy Mancuso, et al. v. Capital One Bank (USA), N.A., et al., (E.D. Virginia); and Kevin S. Barker, et al. v. Capital One Bank (USA), N.A., (N.D. Georgia). A third action, Jennifer L. Kolkowski v. Capital One Bank (USA), N.A., (C.D. California) was subsequently transferred into the MDL. In August 2010, the plaintiffs in the MDL filed a Consolidated Amended Complaint alleging that COBNA breached its contractual obligations, and violated the Truth in Lending Act (“TILA”), the California Consumers Legal Remedies Act, the Unfair Competition Law (“UCL”), the California False Advertising Act, the New Jersey Consumer Fraud Act, and the Kansas Consumer Protection Act when it raised interest rates on certain credit card accounts. As a result of a settlement in another matter, the California-based UCL and TILA claims in the MDL are extinguished. The MDL plaintiffs seek statutory damages, restitution, attorney’s fees and an injunction against future rate increases. In August 2011, after the completion of fact discovery, Capital One filed a motion for summary judgment, which was granted in September 2014. Plaintiffs filed a Notice of Appeal to the Eleventh Circuit Court of Appeals in October 2014. | |||||||||||||||||||||||||||||
Mortgage Repurchase Litigation | |||||||||||||||||||||||||||||
In February 2009, GreenPoint was named as a defendant in a lawsuit commenced in the New York County Supreme Court, by U.S. Bank, N. A., Syncora Guarantee Inc. and CIFG Assurance North America, Inc. (the “U.S. Bank Litigation”). Plaintiffs allege, among other things, that GreenPoint breached certain representations and warranties in two contracts pursuant to which GreenPoint sold approximately 30,000 mortgage loans having an aggregate original principal balance of approximately $1.8 billion to a purchaser that ultimately transferred most of these mortgage loans to a securitization trust. Some of the securities issued by the trust were insured by Syncora and CIFG. Plaintiffs seek unspecified damages and an order compelling GreenPoint to repurchase the entire portfolio of 30,000 mortgage loans based on alleged breaches of representations and warranties relating to a limited sampling of loans in the portfolio, or, alternatively, the repurchase of specific mortgage loans to which the alleged breaches of representations and warranties relate. In March 2010, the court granted GreenPoint’s motion to dismiss with respect to plaintiffs Syncora and CIFG and denied the motion with respect to U.S. Bank. GreenPoint subsequently answered the complaint with respect to U.S. Bank, denying the allegations, and filed a counterclaim against U.S. Bank alleging breach of covenant of good faith and fair dealing. In February 2012, the court denied plaintiffs’ motion for leave to file an amended complaint and dismissed Syncora and CIFG from the case. Syncora and CIFG appealed their dismissal to the New York Supreme Court, Appellate Division, First Department (the “First Department”), which affirmed the dismissal in April 2013. The New York Court of Appeals denied Syncora’s and CIFG’s motion for leave to appeal the First Department’s decision in February 2014. Therefore, the case is now proceeding with U.S. Bank as the sole plaintiff. | |||||||||||||||||||||||||||||
In May, June, and July 2012, FHFA (acting as conservator for Freddie Mac) filed three summonses with notice in the New York state court against GreenPoint, on behalf of the trustees for three RMBS trusts backed by loans originated by GreenPoint with an aggregate original principal balance of $3.4 billion. In January 2013, the plaintiffs filed an amended consolidated complaint in the name of the three trusts, acting by the respective trustees, alleging breaches of contractual representations and warranties regarding compliance with GreenPoint underwriting guidelines relating to certain loans (the “FHFA Litigation”). Plaintiffs seek specific performance of the repurchase obligations with respect to the loans for which they have provided notice of alleged breaches as well as all other allegedly breaching loans, rescissory damages, indemnification, costs and interest. GreenPoint moved to dismiss the case as untimely under New York’s statute of limitations, and the court denied the motion without prejudice to renew it after the completion of relevant discovery. | |||||||||||||||||||||||||||||
In July 2013, Lehman XS Trust, Series 2006-4N, by its trustee U.S. Bank, N.A. filed a lawsuit in the Southern District of New York against GreenPoint alleging breaches of representations and warranties made in certain loan sale agreements, pursuant to which GreenPoint sold mortgage loans with an original principal balance of $915 million to Lehman Brothers for securitization and sale to investors. The lawsuit (“the LXS Trust Litigation”) seeks specific performance of GreenPoint’s obligation to repurchase certain allegedly breaching loans, or in the alternative, the repurchase of all loans in the trust, the award of rescissory damages, costs, fees and interest. In January 2014, the court granted GreenPoint’s motion to dismiss based on the statute of limitations, ruling that New York’s six-year statute of limitations began running no later than the time of the mortgage securitization. The plaintiff has appealed the dismissal of the complaint. | |||||||||||||||||||||||||||||
As noted above in the section entitled Mortgage Representation and Warranty Liabilities, the Company’s subsidiaries establish reserves with respect to representation and warranty litigation matters, where appropriate, within the Company’s overall representation and warranty reserves. Please see above for more details. | |||||||||||||||||||||||||||||
Anti-Money Laundering Investigation | |||||||||||||||||||||||||||||
Capital One has received requests for subpoenas and testimony from the New York District Attorney’s Office (“NYDA”) with respect to certain check casher clients of the Commercial Banking business and Capital One’s anti-money laundering program. In early 2015, we received similar requests from the U.S. Department of Justice (“DOJ”) and the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury. Capital One is cooperating with all agencies involved in the investigation. | |||||||||||||||||||||||||||||
Subprime Auto Loan Investigations | |||||||||||||||||||||||||||||
Capital One has received a subpoena from the NYDA seeking information regarding the Company’s subprime auto finance business. Capital One has also received a subpoena from the DOJ’s New Jersey office requesting information related to subprime auto origination and securitization activities. Capital One is cooperating with both investigations. | |||||||||||||||||||||||||||||
Checking Account Overdraft Litigation | |||||||||||||||||||||||||||||
In May 2010, Capital One Financial Corporation and COBNA were named as defendants in a putative class action named Steen v. Capital One Financial Corporation, et al., filed in the U.S. District Court for the Eastern District of Louisiana. Plaintiff challenges practices relating to fees for overdraft and non-sufficient funds fees on consumer checking accounts. Plaintiff alleges that our methodology for posting transactions to customer accounts was designed to maximize the generation of overdraft fees, supporting claims for breach of contract, breach of the covenant of good faith and fair dealing, unconscionability, conversion, unjust enrichment and violations of state unfair trade practices laws. Plaintiff seeks a range of remedies, including restitution, disgorgement, injunctive relief, punitive damages and attorneys’ fees. In May 2010, the case was transferred to the Southern District of Florida for coordinated pre-trial proceedings as part of a multi-district litigation (“MDL”) involving numerous defendant banks, captioned In re Checking Account Overdraft Litigation. In January 2011, plaintiffs filed a second amended complaint against CONA in the MDL court. In February 2011, CONA filed a motion to dismiss the second amended complaint. In March 2011, the MDL court granted CONA’s motion to dismiss claims of breach of the covenant of good faith and fair dealing under Texas law, but denied the motion to dismiss in all other respects. In June 2012, the MDL court granted plaintiff’s motion for class certification. The parties reached an agreement to resolve the class claims in October 2014, and the court preliminarily approved the proposed settlement in January 2015. | |||||||||||||||||||||||||||||
Intellectual Ventures Corp., et al. | |||||||||||||||||||||||||||||
In June 2013, Intellectual Ventures I, LLC and Intellectual Ventures II, LLC (collectively “IV”) sued Capital One Financial Corp., Capital One Bank (USA), N.A. and Capital One, N.A. (collectively “Capital One”) for patent infringement in the U.S. District Court for the Eastern District of Virginia. In the Complaint, IV alleges infringement of patents related to various business processes across the Capital One enterprise. IV simultaneously filed patent infringement actions against numerous other financial institutions on the same and other patents in several other federal courts. Capital One’s motion to dismiss was denied without prejudice in August 2013. Capital One filed an answer and counterclaim alleging antitrust violations. In December 2013, the court dismissed Capital One’s counterclaim and decided the parties’ arguments on claim construction. IV agreed to dismiss two patents in suit, and following claim construction, asked for a stipulation of non-infringement for one patent with an opportunity to appeal the court’s decision regarding claim construction. In April 2014, the court granted Capital One’s motion for summary judgment and found that the two remaining patents were either unpatentable or indefinite. In May 2014, IV appealed to the Federal Circuit, which will hear oral argument in May 2015. | |||||||||||||||||||||||||||||
In January 2014, IV filed a second suit against Capital One for patent infringement in the U.S. District Court for the District of Maryland. In the complaint, IV again alleges infringement of patents related to various business practices across the Capital One enterprise. IV has voluntarily dismissed one of the patents against Capital One. The parties are currently engaged in discovery and preparing for claim construction on the remaining patents. In March 2015, the court granted Capital One’s motion for leave to add a counterclaim for antitrust violations by IV. | |||||||||||||||||||||||||||||
Telephone Consumer Protection Act Litigation | |||||||||||||||||||||||||||||
In December 2012, the Capital One Telephone Consumer Protection Act (“TCPA”) Litigation Multi-district Litigation matter was created as a result of a transfer order issued by the U.S. Judicial Panel on Multi-district Litigation (“TCPA MDL”), which consolidated for pretrial proceedings in the U.S. District Court for the Northern District of Illinois three pending putative class actions-Bridgett Amadeck, et al. v. Capital One Financial Corporation, et al. (W.D. Washington); Nicholas Martin, et al. v. Capital One Bank (USA), N.A., et al. (N.D. Illinois); and Charles C. Patterson v. Capital One Bank (USA), N.A., et al. (N.D. Illinois) and several individual lawsuits. In February 2013, the putative class action plaintiffs in the TCPA MDL filed a Consolidated Master Class Action Complaint alleging that COBNA and/or entities acting on its behalf violated the TCPA by contacting consumers on their cellular telephones using an automatic telephone dialing system and/or artificial or prerecorded voice without first obtaining prior express consent to do so. The plaintiffs seek statutory damages for alleged negligent and willful violations of the TCPA, attorneys' fees, costs, and injunctive relief. In June 2014, the parties filed a settlement agreement resolving the litigation. The court granted preliminary approval of the class settlement in July 2014, and granted final approval in February 2015. Some class members filed Notices of Appeal to the Seventh Circuit Court of Appeals in February and March 2015. | |||||||||||||||||||||||||||||
Other Pending and Threatened Litigation | |||||||||||||||||||||||||||||
In addition, we are commonly subject to various pending and threatened legal actions relating to the conduct of our normal business activities. In the opinion of management, the ultimate aggregate liability, if any, arising out of all such other pending or threatened legal actions will not be material to our consolidated financial position or our results of operations. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”). |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from these estimates. |
Principles of Consolidation | The consolidated financial statements include the accounts of Capital One Financial Corporation and all other entities in which we have a controlling financial interest. We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a Variable Interest Entity (“VIE”). All significant intercompany account balances and transactions have been eliminated. |
New Accounting Standards | New Accounting Standards Adopted |
Accounting for Repurchase Transactions | |
In June 2014, the FASB issued guidance that requires repurchase-to-maturity transactions to be accounted for as secured borrowings rather than sales. New disclosures will also be required for certain transactions accounted for as secured borrowings and transfers accounted for as sales when the transferor retains substantially all of the exposure to the economic return on the transferred financial assets. Our adoption of the accounting guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is consistent with our current practice. As required by the new guidance, the new disclosures will be effective and provided beginning in the second quarter of 2015. | |
Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period | |
In June 2014, the FASB issued guidance clarifying that a performance target contained within a share-based payment award that affects vesting and can be achieved after the requisite service period has been completed is to be accounted for as a performance condition. Accordingly, the grantor of such awards should recognize compensation cost in the period in which it becomes probable that the performance target will be achieved. The amount of the compensation cost recognized should represent the cost attributable to the requisite service period fulfilled. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. Our adoption of this guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is consistent with our current practice. | |
Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | |
In April 2014, the FASB issued guidance raising the threshold for a disposal to qualify as a discontinued operation. Under the new guidance, a component of an entity or group of components that has been disposed by sale, disposed of other than by sale or is classified as held for sale and that represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results should be reported as discontinued operations. The guidance should be applied prospectively for disposals or classifications as held for sale of components of an entity that occur within annual and interim periods beginning after December 15, 2014, with early adoption permitted in certain circumstances. Our adoption of this guidance in the first quarter of 2015 did not have a material effect on our consolidated financial statements due to the prospective transition provisions. | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure | |
In January 2014, the FASB issued guidance clarifying when an entity should reclassify a consumer mortgage loan collateralized by residential real estate to foreclosed property. Reclassification should occur when the creditor obtains legal title to the residential real estate property or when the borrower conveys all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. An entity should not wait until a redemption period, if any, has expired to reclassify a consumer mortgage loan to foreclosed property. The guidance was effective for annual and interim periods beginning after December 15, 2014. Our adoption of this guidance in the first quarter of 2015 did not have a significant impact on our financial condition, results of operations or liquidity as the guidance is materially consistent with our current practice. | |
Recently Issued but Not Yet Adopted Accounting Standards | |
Simplifying the presentation of debt issuance costs | |
In April 2015, the FASB issued guidance simplifying the presentation of debt issuance costs. Under the new guidance, the debt issuance costs related to a recognized debt liability will be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance should be applied retrospectively and is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the potential impact from the new guidance on the consolidated financial statements. | |
Offsetting of Financial Assets and Liabilities | Offsetting of Financial Assets and Liabilities |
We execute the majority of our derivative transactions and repurchase agreements under master netting arrangements. Under our existing enforceable master netting arrangements, we generally have the right to offset exposure with the same counterparty. In addition, either counterparty can generally request the net settlement of all contracts through a single payment upon default on, or termination of, any one contract. As of January 1, 2015, the Company changed its accounting principle to begin offsetting derivative assets and liabilities for purposes of balance sheet presentation where a right of setoff exists. As of March 31, 2015 and December 31, 2014, derivative contracts that are executed bilaterally with a counterparty in the OTC market and then novated to and cleared through a central clearing house, are not subject to offsetting due to current uncertainty about the legal enforceability of our right of setoff with the clearinghouses. | |
The following table presents as of March 31, 2015 and December 31, 2014, the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amount permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged associated with such arrangements. The collateral amounts shown are limited to the extent of the related net derivative fair values or outstanding balances, thus instances of over-collateralization are not shown |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Summary of Results from Discontinued Operations | The following table summarizes the results from discontinued operations related to the closure of the mortgage origination operations of our wholesale mortgage banking unit: | ||||||||
Table 2.1: Results of Discontinued Operations | |||||||||
Three Months Ended March 31, | |||||||||
(Dollars in millions) | 2015 | 2014 | |||||||
Non-interest income, net | $ | 30 | $ | 47 | |||||
Income from discontinued operations before income taxes | 30 | 47 | |||||||
Income tax provision | 11 | 17 | |||||||
Income from discontinued operations, net of tax | $ | 19 | $ | 30 | |||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Schedule of Investment Portfolio | The table below presents the overview of our investment portfolio at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 3.1: Overview of Investment Portfolio | |||||||||||||||||||||||||
(Dollars in millions) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Securities available for sale, at fair value | $ | 39,321 | $ | 39,508 | |||||||||||||||||||||
Securities held to maturity, at carrying value | 23,241 | 22,500 | |||||||||||||||||||||||
Total investments | $ | 62,562 | $ | 62,008 | |||||||||||||||||||||
Schedule of Available-for-Sale Securities | The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 3.2: Investment Securities Available for Sale | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses(1) | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,411 | $ | 29 | $ | 0 | $ | 4,440 | |||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 600 | 3 | (5 | ) | 598 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency(2) | 22,344 | 327 | (64 | ) | 22,607 | ||||||||||||||||||||
Non-agency | 2,943 | 503 | (5 | ) | 3,441 | ||||||||||||||||||||
Total RMBS | 25,287 | 830 | (69 | ) | 26,048 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency(2) | 3,672 | 47 | (43 | ) | 3,676 | ||||||||||||||||||||
Non-agency | 1,711 | 46 | (4 | ) | 1,753 | ||||||||||||||||||||
Total CMBS | 5,383 | 93 | (47 | ) | 5,429 | ||||||||||||||||||||
Other ABS(3) | 2,025 | 6 | (3 | ) | 2,028 | ||||||||||||||||||||
Other securities(4) | 775 | 7 | (4 | ) | 778 | ||||||||||||||||||||
Total investment securities available for sale | $ | 38,481 | $ | 968 | $ | (128 | ) | $ | 39,321 | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses(1) | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,114 | $ | 5 | $ | (1 | ) | $ | 4,118 | ||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 819 | 1 | (20 | ) | 800 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency(2) | 21,804 | 296 | (105 | ) | 21,995 | ||||||||||||||||||||
Non-agency | 2,938 | 461 | (13 | ) | 3,386 | ||||||||||||||||||||
Total RMBS | 24,742 | 757 | (118 | ) | 25,381 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency(2) | 3,751 | 32 | (60 | ) | 3,723 | ||||||||||||||||||||
Non-agency | 1,780 | 31 | (15 | ) | 1,796 | ||||||||||||||||||||
Total CMBS | 5,531 | 63 | (75 | ) | 5,519 | ||||||||||||||||||||
Other ABS(3) | 2,618 | 54 | (10 | ) | 2,662 | ||||||||||||||||||||
Other securities(4) | 1,035 | 6 | (13 | ) | 1,028 | ||||||||||||||||||||
Total investment securities available for sale | $ | 38,859 | $ | 886 | $ | (237 | ) | $ | 39,508 | ||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Includes non-credit related other-than-temporary impairment (“OTTI”) that remains in accumulated other comprehensive income (“AOCI”) of $5 million and $8 million as of March 31, 2015 and December 31, 2014, respectively. Substantially all of this entire amount is related to non-agency RMBS. | ||||||||||||||||||||||||
(2) | Agency includes Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), and Government National Mortgage Association (“Ginnie Mae”). | ||||||||||||||||||||||||
(3) | ABS collateralized by credit card loans constituted approximately 59% and 56% of the other ABS portfolio as of March 31, 2015 and December 31, 2014, respectively, and ABS collateralized by auto dealer floor plan inventory loans and leases constituted approximately 18% and 16% of the other ABS portfolio as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||
(4) | Includes foreign government bonds, corporate bonds, municipal securities and equity investments primarily related to activities under the Community Reinvestment Act (“CRA”). | ||||||||||||||||||||||||
Investment Securities Held to Maturity | The table below presents the carrying value, gross unrealized gains and losses, and fair value of securities held to maturity at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 3.3: Investment Securities Held to Maturity | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized Losses Recorded in AOCI(1) | Carrying Value | Gross | Gross | Fair | |||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 198 | $ | 0 | $ | 198 | $ | 1 | $ | 0 | $ | 199 | |||||||||||||
Agency RMBS | 21,639 | $ | (1,155 | ) | 20,484 | 1,282 | (3 | ) | 21,763 | ||||||||||||||||
Agency CMBS | 2,675 | (116 | ) | 2,559 | 132 | 0 | 2,691 | ||||||||||||||||||
Total investment securities held to maturity | $ | 24,512 | $ | (1,271 | ) | $ | 23,241 | $ | 1,415 | $ | (3 | ) | $ | 24,653 | |||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized | Unrealized | Carrying Value | Gross | Gross | Fair | |||||||||||||||||||
Cost | Losses Recorded in AOCI(1) | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Agency RMBS | 21,347 | $ | (1,184 | ) | 20,163 | 1,047 | 0 | 21,210 | |||||||||||||||||
Agency CMBS | 2,457 | (120 | ) | 2,337 | 93 | (6 | ) | 2,424 | |||||||||||||||||
Total investment securities held to maturity | $ | 23,804 | $ | (1,304 | ) | $ | 22,500 | $ | 1,140 | $ | (6 | ) | $ | 23,634 | |||||||||||
__________ | |||||||||||||||||||||||||
(1) | Represents the unrealized holding gain or loss at the date of transfer from available for sale to held to maturity, net of any subsequent accretion. Any bonds purchased into the securities held for maturity portfolio rather than transferred will not have unrealized losses recognized in AOCI. | ||||||||||||||||||||||||
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position | The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 3.4: Securities in Unrealized Loss Position | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(Dollars in millions) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 201 | $ | 0 | $ | 0 | $ | 0 | $ | 201 | $ | 0 | |||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 155 | (1 | ) | 307 | (4 | ) | 462 | (5 | ) | ||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 4,288 | (14 | ) | 3,549 | (50 | ) | 7,837 | (64 | ) | ||||||||||||||||
Non-agency | 145 | (2 | ) | 62 | (3 | ) | 207 | (5 | ) | ||||||||||||||||
Total RMBS | 4,433 | (16 | ) | 3,611 | (53 | ) | 8,044 | (69 | ) | ||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 158 | 0 | 1,669 | (43 | ) | 1,827 | (43 | ) | |||||||||||||||||
Non-agency | 153 | (1 | ) | 312 | (3 | ) | 465 | (4 | ) | ||||||||||||||||
Total CMBS | 311 | (1 | ) | 1,981 | (46 | ) | 2,292 | (47 | ) | ||||||||||||||||
Other ABS | 376 | 0 | 474 | (3 | ) | 850 | (3 | ) | |||||||||||||||||
Other securities | 160 | (2 | ) | 184 | (2 | ) | 344 | (4 | ) | ||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 5,636 | $ | (20 | ) | $ | 6,557 | $ | (108 | ) | $ | 12,193 | $ | (128 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(Dollars in millions) | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 1,499 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 1,499 | $ | (1 | ) | |||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 113 | (2 | ) | 557 | (18 | ) | 670 | (20 | ) | ||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 3,917 | (15 | ) | 4,413 | (90 | ) | 8,330 | (105 | ) | ||||||||||||||||
Non-agency | 412 | (9 | ) | 90 | (4 | ) | 502 | (13 | ) | ||||||||||||||||
Total RMBS | 4,329 | (24 | ) | 4,503 | (94 | ) | 8,832 | (118 | ) | ||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 294 | (2 | ) | 1,993 | (58 | ) | 2,287 | (60 | ) | ||||||||||||||||
Non-agency | 258 | (1 | ) | 681 | (14 | ) | 939 | (15 | ) | ||||||||||||||||
Total CMBS | 552 | (3 | ) | 2,674 | (72 | ) | 3,226 | (75 | ) | ||||||||||||||||
Other ABS | 783 | (1 | ) | 586 | (9 | ) | 1,369 | (10 | ) | ||||||||||||||||
Other securities | 106 | 0 | 551 | (13 | ) | 657 | (13 | ) | |||||||||||||||||
Total investment securities available for sale in a gross unrealized loss position | $ | 7,382 | $ | (31 | ) | $ | 8,871 | $ | (206 | ) | $ | 16,253 | $ | (237 | ) | ||||||||||
Schedule of Contractual Maturities for Securities | Table 3.6: Contractual Maturities of Securities Held to Maturity | ||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Fair Value | |||||||||||||||||||||||
Due after 1 year through 5 years | $ | 198 | $ | 199 | |||||||||||||||||||||
Due after 5 years through 10 years | 1,146 | 1,244 | |||||||||||||||||||||||
Due after 10 years | 21,897 | 23,210 | |||||||||||||||||||||||
Total | $ | 23,241 | $ | 24,653 | |||||||||||||||||||||
The following tables summarize the remaining scheduled contractual maturities, assuming no prepayments, of our investment securities as of March 31, 2015. | |||||||||||||||||||||||||
Table 3.5: Contractual Maturities of Securities Available for Sale | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in 1 year or less | $ | 662 | $ | 662 | |||||||||||||||||||||
Due after 1 year through 5 years | 6,526 | 6,571 | |||||||||||||||||||||||
Due after 5 years through 10 years | 2,509 | 2,554 | |||||||||||||||||||||||
Due after 10 years(1) | 28,784 | 29,534 | |||||||||||||||||||||||
Total | $ | 38,481 | $ | 39,321 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Investments with no stated maturities, which consist of equity securities, are included with contractual maturities due after 10 years. | ||||||||||||||||||||||||
Schedule of Expected Maturities and Weighted Average Yields of Investment Securities by Major Security Type | The table below summarizes, by major security type, the expected maturities and weighted average yields of our investment securities as of March 31, 2015. | ||||||||||||||||||||||||
Table 3.7: Expected Maturities and Weighted Average Yields of Securities | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
(Dollars in millions) | Due in | Due > 1 Year | Due > 5 Years | Due > 10 Years | Total | ||||||||||||||||||||
1 Year or Less | through | through | |||||||||||||||||||||||
5 Years | 10 Years | ||||||||||||||||||||||||
Fair value of securities available for sale: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 251 | $ | 4,189 | $ | 0 | $ | 0 | $ | 4,440 | |||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 434 | 151 | 13 | 598 | ||||||||||||||||||||
RMBS: | |||||||||||||||||||||||||
Agency | 369 | 15,422 | 6,816 | 0 | 22,607 | ||||||||||||||||||||
Non-agency | 10 | 931 | 1,688 | 812 | 3,441 | ||||||||||||||||||||
Total RMBS | 379 | 16,353 | 8,504 | 812 | 26,048 | ||||||||||||||||||||
CMBS: | |||||||||||||||||||||||||
Agency | 129 | 2,005 | 1,523 | 19 | 3,676 | ||||||||||||||||||||
Non-agency | 135 | 424 | 1,194 | 0 | 1,753 | ||||||||||||||||||||
Total CMBS | 264 | 2,429 | 2,717 | 19 | 5,429 | ||||||||||||||||||||
Other ABS | 656 | 1,177 | 195 | 0 | 2,028 | ||||||||||||||||||||
Other securities | 99 | 188 | 401 | 90 | 778 | ||||||||||||||||||||
Total securities available for sale | $ | 1,649 | $ | 24,770 | $ | 11,968 | $ | 934 | $ | 39,321 | |||||||||||||||
Amortized cost of securities available for sale | $ | 1,651 | $ | 24,431 | $ | 11,581 | $ | 818 | $ | 38,481 | |||||||||||||||
Weighted average yield for securities available for sale(1) | 0.97 | % | 2.17 | % | 3.25 | % | 9.36 | % | 2.6 | % | |||||||||||||||
Carrying value of securities held to maturity: | |||||||||||||||||||||||||
U.S. Treasury securities | $ | 0 | $ | 198 | $ | 0 | $ | 0 | $ | 198 | |||||||||||||||
Agency RMBS | 29 | 2,097 | 16,003 | 2,355 | 20,484 | ||||||||||||||||||||
Agency CMBS | 0 | 65 | 2,304 | 190 | 2,559 | ||||||||||||||||||||
Total securities held for maturity | $ | 29 | $ | 2,360 | $ | 18,307 | $ | 2,545 | $ | 23,241 | |||||||||||||||
Fair value of securities held to maturity | $ | 29 | $ | 2,446 | $ | 19,385 | $ | 2,793 | $ | 24,653 | |||||||||||||||
Weighted average yield for securities held to maturity(1) | 4.59 | % | 2.59 | % | 2.64 | % | 3.52 | % | 2.73 | % | |||||||||||||||
__________ | |||||||||||||||||||||||||
-1 | Average yield represents the effective yield for the investment securities and is calculated based on the amortized cost of each security. | ||||||||||||||||||||||||
Schedule of Credit Losses Related to Debt Securities Recognized in Earnings | The table below presents a rollforward of the credit related OTTI recognized in earnings for the three months ended March 31, 2015 and 2014 on investment securities for which we had no intent to sell. | ||||||||||||||||||||||||
Table 3.8: Credit Impairment Rollforward | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Credit loss component, beginning of period | $ | 175 | $ | 160 | |||||||||||||||||||||
Additions: | |||||||||||||||||||||||||
Initial credit impairment | 5 | 1 | |||||||||||||||||||||||
Subsequent credit impairment | 10 | 4 | |||||||||||||||||||||||
Total additions | 15 | 5 | |||||||||||||||||||||||
Credit loss component, end of period | $ | 190 | $ | 165 | |||||||||||||||||||||
Schedule of Gross Realized Gains and Losses on Sale and Redemption of Available-for-Sale Securities Recognized in Earnings | The following table presents the gross realized gains and losses on the sale and redemption of securities available for sale, and the OTTI losses recognized in earnings for the three months ended March 31, 2015 and 2014. We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are held to maturity. | ||||||||||||||||||||||||
Table 3.9: Realized Gains and Losses and OTTI Recognized in Earnings | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Realized gains (losses): | |||||||||||||||||||||||||
Gross realized gains | $ | 9 | $ | 32 | |||||||||||||||||||||
Gross realized losses | (7 | ) | (19 | ) | |||||||||||||||||||||
Net realized gains | 2 | 13 | |||||||||||||||||||||||
Credit-related OTTI recognized in earnings | (15 | ) | (5 | ) | |||||||||||||||||||||
Total OTTI recognized in earnings | (15 | ) | (5 | ) | |||||||||||||||||||||
Net securities (losses) gains | $ | (13 | ) | $ | 8 | ||||||||||||||||||||
Total proceeds from sales | $ | 1,342 | $ | 2,976 | |||||||||||||||||||||
Schedule of Outstanding Contractual Balance and Carrying Value of Credit-Impaired ING Direct Debt Securities | The table below presents the outstanding balance, carrying value and amortized cost of the acquired credit-impaired debt securities as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 3.10: Outstanding Balance and Carrying Value of Acquired Securities | |||||||||||||||||||||||||
(Dollars in millions) | March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Outstanding balance | $ | 4,076 | $ | 4,259 | |||||||||||||||||||||
Carrying value | 2,787 | 2,839 | |||||||||||||||||||||||
Amortized cost | 2,307 | 2,354 | |||||||||||||||||||||||
Schedule of Changes in Accretable Yield of Acquired Securities | The following table presents changes in the accretable yield related to the acquired credit-impaired debt securities: | ||||||||||||||||||||||||
Table 3.11: Changes in Accretable Yield of Acquired Securities | |||||||||||||||||||||||||
(Dollars in millions) | Acquired | ||||||||||||||||||||||||
Credit-Impaired | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Accretable yield as of December 31, 2014 | $ | 1,250 | |||||||||||||||||||||||
Accretion recognized in earnings | (61 | ) | |||||||||||||||||||||||
Reduction due to payoffs, disposals, transfers and other | (1 | ) | |||||||||||||||||||||||
Net reclassifications from (to) nonaccretable difference | (17 | ) | |||||||||||||||||||||||
Accretable yield as of March 31, 2015 | $ | 1,171 | |||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Loan Portfolio Composition and Aging Analysis | The table below presents the composition and an aging analysis of our loans held for investment portfolio, which includes restricted loans for securitization investors, as of March 31, 2015 and December 31, 2014. The delinquency aging includes all past due loans, both performing and nonperforming. | ||||||||||||||||||||||||||||
Table 4.1: Loan Portfolio Composition and Aging Analysis | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 | 60-89 | > 90 | Total | Acquired | Total | ||||||||||||||||||||||
Days | Days | Days | Delinquent | Loans | Loans | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card(1) | $ | 71,947 | $ | 637 | $ | 456 | $ | 1,070 | $ | 2,163 | $ | 21 | $ | 74,131 | |||||||||||||||
International credit card | 7,361 | 102 | 61 | 99 | 262 | 0 | 7,623 | ||||||||||||||||||||||
Total credit card | 79,308 | 739 | 517 | 1,169 | 2,425 | 21 | 81,754 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 36,788 | 1,514 | 515 | 120 | 2,149 | 0 | 38,937 | ||||||||||||||||||||||
Home loan | 6,509 | 49 | 25 | 208 | 282 | 22,114 | 28,905 | ||||||||||||||||||||||
Retail banking | 3,458 | 17 | 9 | 14 | 40 | 39 | 3,537 | ||||||||||||||||||||||
Total consumer banking | 46,755 | 1,580 | 549 | 342 | 2,471 | 22,153 | 71,379 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 22,695 | 43 | 5 | 51 | 99 | 37 | 22,831 | ||||||||||||||||||||||
Commercial and industrial | 26,800 | 14 | 120 | 115 | 249 | 123 | 27,172 | ||||||||||||||||||||||
Total commercial lending | 49,495 | 57 | 125 | 166 | 348 | 160 | 50,003 | ||||||||||||||||||||||
Small-ticket commercial real estate | 725 | 4 | 4 | 5 | 13 | 0 | 738 | ||||||||||||||||||||||
Total commercial banking | 50,220 | 61 | 129 | 171 | 361 | 160 | 50,741 | ||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 91 | 4 | 1 | 8 | 13 | 0 | 104 | ||||||||||||||||||||||
Total loans(2) | $ | 176,374 | $ | 2,384 | $ | 1,196 | $ | 1,690 | $ | 5,270 | $ | 22,334 | $ | 203,978 | |||||||||||||||
% of Total loans | 86.47 | % | 1.17 | % | 0.58 | % | 0.83 | % | 2.58 | % | 10.95 | % | 100 | % | |||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Current | 30-59 | 60-89 | > 90 | Total | Acquired | Total | ||||||||||||||||||||||
Days | Days | Days | Delinquent | Loans | Loans | ||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card(1) | $ | 75,143 | $ | 790 | $ | 567 | $ | 1,181 | $ | 2,538 | $ | 23 | $ | 77,704 | |||||||||||||||
International credit card | 7,878 | 114 | 69 | 111 | 294 | 0 | 8,172 | ||||||||||||||||||||||
Total credit card | 83,021 | 904 | 636 | 1,292 | 2,832 | 23 | 85,876 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 35,142 | 1,751 | 734 | 197 | 2,682 | 0 | 37,824 | ||||||||||||||||||||||
Home loan | 6,492 | 57 | 27 | 218 | 302 | 23,241 | 30,035 | ||||||||||||||||||||||
Retail banking | 3,496 | 17 | 7 | 16 | 40 | 44 | 3,580 | ||||||||||||||||||||||
Total consumer banking | 45,130 | 1,825 | 768 | 431 | 3,024 | 23,285 | 71,439 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 22,974 | 74 | 7 | 36 | 117 | 46 | 23,137 | ||||||||||||||||||||||
Commercial and industrial | 26,753 | 29 | 10 | 34 | 73 | 146 | 26,972 | ||||||||||||||||||||||
Total commercial lending | 49,727 | 103 | 17 | 70 | 190 | 192 | 50,109 | ||||||||||||||||||||||
Small-ticket commercial real estate | 771 | 6 | 1 | 3 | 10 | 0 | 781 | ||||||||||||||||||||||
Total commercial banking | 50,498 | 109 | 18 | 73 | 200 | 192 | 50,890 | ||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 97 | 3 | 2 | 9 | 14 | 0 | 111 | ||||||||||||||||||||||
Total loans(2) | $ | 178,746 | $ | 2,841 | $ | 1,424 | $ | 1,805 | $ | 6,070 | $ | 23,500 | $ | 208,316 | |||||||||||||||
% of Total loans | 85.81 | % | 1.36 | % | 0.68 | % | 0.87 | % | 2.91 | % | 11.28 | % | 100 | % | |||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Includes installment loans of $123 million and $144 million as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||
(2) | Loans as presented are net of unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs totaling $1.0 billion and $1.1 billion as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||
90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans | Table 4.2 presents loans 90 days or more past due that continue to accrue interest and loans classified as nonperforming as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||
Table 4.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans(1) | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | > 90 Days and Accruing | Nonperforming | > 90 Days and Accruing | Nonperforming | |||||||||||||||||||||||||
Loans | Loans | ||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 1,070 | $ | 0 | $ | 1,181 | $ | 0 | |||||||||||||||||||||
International credit card | 64 | 64 | 73 | 70 | |||||||||||||||||||||||||
Total credit card | 1,134 | 64 | 1,254 | 70 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 0 | 120 | 0 | 197 | |||||||||||||||||||||||||
Home loan | 0 | 336 | 0 | 330 | |||||||||||||||||||||||||
Retail banking | 1 | 25 | 1 | 22 | |||||||||||||||||||||||||
Total consumer banking | 1 | 481 | 1 | 549 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 24 | 40 | 7 | 62 | |||||||||||||||||||||||||
Commercial and industrial | 60 | 106 | 1 | 106 | |||||||||||||||||||||||||
Total commercial lending | 84 | 146 | 8 | 168 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 12 | 0 | 7 | |||||||||||||||||||||||||
Total commercial banking | 84 | 158 | 8 | 175 | |||||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||
Other loans | 0 | 14 | 0 | 15 | |||||||||||||||||||||||||
Total | $ | 1,219 | $ | 717 | $ | 1,263 | $ | 809 | |||||||||||||||||||||
% of Total loans | 0.6 | % | 0.35 | % | 0.61 | % | 0.39 | % | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Nonperforming loans generally include loans that have been placed on nonaccrual status. Acquired Loans are excluded from loans reported as 90 days and accruing interest as well as nonperforming loans. | ||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||
Individually Impaired Loans, Excluding Acquired Loans | The following table presents information about our impaired loans, excluding the impact of Acquired Loans, which is reported separately as of March 31, 2015 and December 31, 2014, and for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Table 4.9: Impaired Loans(1) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | With an | Without | Total | Related | Net | Unpaid | |||||||||||||||||||||||
Allowance | an | Recorded | Allowance | Recorded | Principal | ||||||||||||||||||||||||
Allowance | Investment | Investment | Balance | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 538 | $ | 0 | $ | 538 | $ | 143 | $ | 395 | $ | 523 | |||||||||||||||||
International credit card | 135 | 0 | 135 | 67 | 68 | 130 | |||||||||||||||||||||||
Total credit card(2) | 673 | 0 | 673 | 210 | 463 | 653 | |||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 249 | 204 | 453 | 22 | 431 | 717 | |||||||||||||||||||||||
Home loan | 219 | 146 | 365 | 16 | 349 | 467 | |||||||||||||||||||||||
Retail banking | 46 | 8 | 54 | 9 | 45 | 57 | |||||||||||||||||||||||
Total consumer banking | 514 | 358 | 872 | 47 | 825 | 1,241 | |||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 107 | 13 | 120 | 19 | 101 | 134 | |||||||||||||||||||||||
Commercial and industrial | 144 | 67 | 211 | 13 | 198 | 231 | |||||||||||||||||||||||
Total commercial lending | 251 | 80 | 331 | 32 | 299 | 365 | |||||||||||||||||||||||
Small-ticket commercial real estate | 4 | 9 | 13 | 0 | 13 | 15 | |||||||||||||||||||||||
Total commercial banking | 255 | 89 | 344 | 32 | 312 | 380 | |||||||||||||||||||||||
Total | $ | 1,442 | $ | 447 | $ | 1,889 | $ | 289 | $ | 1,600 | $ | 2,274 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | With an | Without | Total | Related | Net | Unpaid | |||||||||||||||||||||||
Allowance | an | Recorded | Allowance | Recorded | Principal | ||||||||||||||||||||||||
Allowance | Investment | Investment | Balance | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 546 | $ | 0 | $ | 546 | $ | 145 | $ | 401 | $ | 531 | |||||||||||||||||
International credit card | 146 | 0 | 146 | 74 | 72 | 141 | |||||||||||||||||||||||
Total credit card(2) | 692 | 0 | 692 | 219 | 473 | 672 | |||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 230 | 205 | 435 | 19 | 416 | 694 | |||||||||||||||||||||||
Home loan | 218 | 149 | 367 | 17 | 350 | 472 | |||||||||||||||||||||||
Retail banking | 45 | 5 | 50 | 6 | 44 | 52 | |||||||||||||||||||||||
Total consumer banking | 493 | 359 | 852 | 42 | 810 | 1,218 | |||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 120 | 26 | 146 | 23 | 123 | 163 | |||||||||||||||||||||||
Commercial and industrial | 161 | 55 | 216 | 16 | 200 | 233 | |||||||||||||||||||||||
Total commercial lending | 281 | 81 | 362 | 39 | 323 | 396 | |||||||||||||||||||||||
Small-ticket commercial real estate | 3 | 5 | 8 | 0 | 8 | 10 | |||||||||||||||||||||||
Total commercial banking | 284 | 86 | 370 | 39 | 331 | 406 | |||||||||||||||||||||||
Total | $ | 1,469 | $ | 445 | $ | 1,914 | $ | 300 | $ | 1,614 | $ | 2,296 | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Average | Interest | Average | Interest | |||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 542 | $ | 14 | $ | 596 | $ | 15 | |||||||||||||||||||||
International credit card | 141 | 2 | 169 | 3 | |||||||||||||||||||||||||
Total credit card(2) | 683 | 16 | 765 | 18 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto(3) | 444 | 21 | 363 | 17 | |||||||||||||||||||||||||
Home loan | 366 | 1 | 402 | 1 | |||||||||||||||||||||||||
Retail banking | 52 | 0 | 83 | 1 | |||||||||||||||||||||||||
Total consumer banking | 862 | 22 | 848 | 19 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 133 | 1 | 169 | 2 | |||||||||||||||||||||||||
Commercial and industrial | 213 | 1 | 179 | 1 | |||||||||||||||||||||||||
Total commercial lending | 346 | 2 | 348 | 3 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 10 | 0 | 7 | 0 | |||||||||||||||||||||||||
Total commercial banking | 356 | 2 | 355 | 3 | |||||||||||||||||||||||||
Total | $ | 1,901 | $ | 40 | $ | 1,968 | $ | 40 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Impaired loans include loans modified in TDRs, all nonperforming commercial loans, and nonperforming home loans with a specific impairment. | ||||||||||||||||||||||||||||
(2) | Credit card loans include finance charges and fees. | ||||||||||||||||||||||||||||
(3) | Although auto loans from loan recovery inventory are not reported in our loans held for investment, they are included as impaired loans above since they are reported as TDRs. | ||||||||||||||||||||||||||||
TDR Disclosures in Progress Financial Impact of Modification | The following table presents the type, number and recorded investment amount of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged-off as of the end of the period presented, or has been reclassified from accrual to nonaccrual status. | ||||||||||||||||||||||||||||
Table 4.11: TDR - Subsequent Defaults | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Number of | Amount | Number of | Amount | |||||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | 9,667 | $ | 16 | 11,061 | $ | 16 | |||||||||||||||||||||||
International credit card(1) | 8,548 | 20 | 10,521 | 30 | |||||||||||||||||||||||||
Total credit card | 18,215 | 36 | 21,582 | 46 | |||||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 1,747 | 20 | 1,322 | 13 | |||||||||||||||||||||||||
Home loan | 5 | 0 | 6 | 2 | |||||||||||||||||||||||||
Retail banking | 10 | 1 | 25 | 7 | |||||||||||||||||||||||||
Total consumer banking | 1,762 | 21 | 1,353 | 22 | |||||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 0 | 0 | 3 | 6 | |||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 0 | |||||||||||||||||||||||||
Total commercial lending | 0 | 0 | 4 | 6 | |||||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 6 | 2 | |||||||||||||||||||||||||
Total commercial banking | 0 | 0 | 10 | 8 | |||||||||||||||||||||||||
Total | 19,977 | $ | 57 | 22,945 | $ | 76 | |||||||||||||||||||||||
_______________ | |||||||||||||||||||||||||||||
(1) | The regulatory regime in the U.K. requires U.K. credit card businesses to accept payment plan proposals even when the proposed payments are less than the contractual minimum amount. As a result, loans entering long-term TDR payment programs in the U.K. typically continue to age and ultimately charge-off even when fully in compliance with the TDR program terms. | ||||||||||||||||||||||||||||
The following tables present the types, recorded investment amounts and financial effects of loans modified in TDRs during for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Table 4.10: Troubled Debt Restructurings | |||||||||||||||||||||||||||||
Total | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||
Loans | Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||
(Dollars in millions) | Modified(1) | % of | Average | % of | Average | % of | Gross | ||||||||||||||||||||||
TDR | Rate | TDR | Term | TDR | Balance | ||||||||||||||||||||||||
Activity(2)(3) | Reduction(4) | Activity(3)(5) | Extension | Activity(3)(7) | Reduction(8) | ||||||||||||||||||||||||
(Months)(6) | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 72 | 100 | % | 12.13 | % | 0 | % | 0 | 0 | % | $ | 0 | ||||||||||||||||
International credit card | 32 | 100 | 25.79 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total credit card | 104 | 100 | 16.39 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 88 | 41 | 1.71 | 71 | 9 | 28 | 22 | ||||||||||||||||||||||
Home loan | 7 | 67 | 2.85 | 66 | 171 | 0 | 0 | ||||||||||||||||||||||
Retail banking | 5 | 61 | 9.36 | 91 | 4 | 0 | 0 | ||||||||||||||||||||||
Total consumer banking | 100 | 44 | 2.36 | 72 | 20 | 24 | 22 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 3 | 0 | 0 | 100 | 35 | 77 | 1 | ||||||||||||||||||||||
Commercial and industrial | 21 | 0 | 2.02 | 3 | 7 | 0 | 0 | ||||||||||||||||||||||
Total commercial lending | 24 | 0 | 2.02 | 13 | 29 | 8 | 1 | ||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total commercial banking | 24 | 0 | 2.02 | 13 | 29 | 8 | 1 | ||||||||||||||||||||||
Total | $ | 228 | 65 | 12.19 | 33 | 20 | 12 | $ | 23 | ||||||||||||||||||||
Total | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Loans | Reduced Interest Rate | Term Extension | Balance Reduction | ||||||||||||||||||||||||||
(Dollars in millions) | Modified(1) | % of | Average | % of | Average | % of | Gross | ||||||||||||||||||||||
TDR | Rate | TDR | Term | TDR | Balance | ||||||||||||||||||||||||
Activity(2)(3) | Reduction(4) | Activity(3)(5) | Extension | Activity(3)(7) | Reduction(8) | ||||||||||||||||||||||||
(Months)(6) | |||||||||||||||||||||||||||||
Credit Card: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 67 | 100 | % | 11.5 | % | 0 | % | 0 | 0 | % | $ | 0 | ||||||||||||||||
International credit card | 43 | 100 | 25.2 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total credit card | 110 | 100 | 16.82 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer Banking: | |||||||||||||||||||||||||||||
Auto | 77 | 40 | 0.94 | 67 | 9 | 32 | 22 | ||||||||||||||||||||||
Home loan | 8 | 19 | 1.25 | 30 | 138 | 13 | 1 | ||||||||||||||||||||||
Retail banking | 6 | 8 | 4.01 | 59 | 6 | 0 | 0 | ||||||||||||||||||||||
Total consumer banking | 91 | 36 | 1 | 63 | 14 | 29 | 23 | ||||||||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||||||
Commercial and multifamily real estate | 62 | 33 | 1.37 | 100 | 8 | 0 | 0 | ||||||||||||||||||||||
Commercial and industrial | 1 | 0 | 0 | 64 | 11 | 0 | 0 | ||||||||||||||||||||||
Total commercial lending | 63 | 33 | 1.37 | 99 | 8 | 0 | 0 | ||||||||||||||||||||||
Small-ticket commercial real estate | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total commercial banking | 63 | 33 | 1.37 | 99 | 8 | 0 | 0 | ||||||||||||||||||||||
Total | $ | 264 | 62 | 11.7 | 46 | 11 | 10 | $ | 23 | ||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Represents total loans modified and accounted for as TDRs during the period. Paydowns, net charge-offs and any other changes in the loan carrying value subsequent to the loan entering TDR status are not reflected. | ||||||||||||||||||||||||||||
(2) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted a reduced interest rate. | ||||||||||||||||||||||||||||
(3) | Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types. | ||||||||||||||||||||||||||||
(4) | Represents weighted average interest rate reduction for those loans that received an interest rate concession. | ||||||||||||||||||||||||||||
(5) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted a maturity date extension. | ||||||||||||||||||||||||||||
(6) | Represents weighted average change in maturity date for those loans that received a maturity date extension. | ||||||||||||||||||||||||||||
(7) | Represents percentage of loans modified and accounted for as TDRs during the period that were granted forgiveness or forbearance of a portion of their balance. | ||||||||||||||||||||||||||||
(8) | Total amount represents the gross balance forgiven. For loans modified in bankruptcy, the gross balance reduction represents collateral value write downs associated with the discharge of the borrower’s obligations. | ||||||||||||||||||||||||||||
Outstanding Balance and Carrying Value of Acquired Loans | The table below presents the outstanding balance and the carrying value of loans from the ING Direct, CCB and 2012 U.S. card acquisitions accounted for based on expected cash flows as of March 31, 2015 and December 31, 2014. The table separately displays loans considered credit-impaired at acquisition and loans not considered credit-impaired at acquisition. | ||||||||||||||||||||||||||||
Table 4.12: Acquired Loans Accounted for Based on Expected Cash Flows | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Total | Impaired | Non-Impaired | Total | Impaired | Non-Impaired | |||||||||||||||||||||||
Loans | Loans | Loans | Loans | ||||||||||||||||||||||||||
Outstanding balance | $ | 24,037 | $ | 4,184 | $ | 19,853 | $ | 25,201 | $ | 4,279 | $ | 20,922 | |||||||||||||||||
Carrying value(1) | 22,343 | 2,808 | 19,535 | 23,519 | 2,882 | 20,637 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Includes $34 million and $27 million of allowance for loan and lease losses for these loans as of March 31, 2015 and December 31, 2014, respectively. We recorded a $7 million provision and $2 million release of allowance for credit losses for the three months ended March 31, 2015 and 2014, respectively, for certain pools of Acquired Loans. | ||||||||||||||||||||||||||||
Changes in Accretable Yield on Acquired Loans | The following table presents changes in the accretable yield on loans related to the CCB, ING Direct, and 2012 U.S. card acquisitions: | ||||||||||||||||||||||||||||
Table 4.13: Changes in Accretable Yield on Acquired Loans | |||||||||||||||||||||||||||||
(Dollars in millions) | Total | Impaired | Non-Impaired | ||||||||||||||||||||||||||
Loans | Loans | Loans | |||||||||||||||||||||||||||
Accretable yield as of December 31, 2014 | $ | 4,653 | $ | 1,485 | $ | 3,168 | |||||||||||||||||||||||
Accretion recognized in earnings | (237 | ) | (87 | ) | (150 | ) | |||||||||||||||||||||||
Reclassifications from (to) nonaccretable difference for loans with changing cash flows(1) | 35 | 45 | (10 | ) | |||||||||||||||||||||||||
Changes in accretable yield for non-credit related changes in expected cash flows(2) | 110 | 84 | 26 | ||||||||||||||||||||||||||
Accretable yield as of March 31, 2015 | $ | 4,561 | $ | 1,527 | $ | 3,034 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Represents changes in accretable yield for those loans in pools that are driven primarily by credit performance. | ||||||||||||||||||||||||||||
(2) | Represents changes in accretable yield for those loans in pools that are driven primarily by changes in actual and estimated prepayments. | ||||||||||||||||||||||||||||
Credit Card | |||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||
Schedule of Concentration Risk, by Risk Factor, Including Delinquency and Performing Status | The table below displays the geographic profile of our credit card loan portfolio and delinquency statistics as of March 31, 2015 and December 31, 2014. We also present comparative net charge-offs for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||
Table 4.3: Credit Card: Risk Profile by Geographic Region and Delinquency Status | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | |||||||||||||||||||||||||
Total(1) | Total(1) | ||||||||||||||||||||||||||||
Domestic credit card: | |||||||||||||||||||||||||||||
California | $ | 8,326 | 10.2 | % | $ | 8,574 | 10 | % | |||||||||||||||||||||
New York | 5,339 | 6.5 | 5,610 | 6.5 | |||||||||||||||||||||||||
Texas | 5,190 | 6.4 | 5,382 | 6.3 | |||||||||||||||||||||||||
Florida | 4,635 | 5.7 | 4,794 | 5.6 | |||||||||||||||||||||||||
Illinois | 3,525 | 4.3 | 3,747 | 4.4 | |||||||||||||||||||||||||
Pennsylvania | 3,349 | 4.1 | 3,581 | 4.2 | |||||||||||||||||||||||||
Ohio | 2,882 | 3.5 | 3,075 | 3.6 | |||||||||||||||||||||||||
New Jersey | 2,714 | 3.3 | 2,868 | 3.3 | |||||||||||||||||||||||||
Michigan | 2,516 | 3.1 | 2,681 | 3.1 | |||||||||||||||||||||||||
Other | 35,655 | 43.6 | 37,392 | 43.5 | |||||||||||||||||||||||||
Total domestic credit card | 74,131 | 90.7 | 77,704 | 90.5 | |||||||||||||||||||||||||
International credit card: | |||||||||||||||||||||||||||||
Canada | 4,443 | 5.4 | 4,747 | 5.5 | |||||||||||||||||||||||||
United Kingdom | 3,180 | 3.9 | 3,425 | 4 | |||||||||||||||||||||||||
Total international credit card | 7,623 | 9.3 | 8,172 | 9.5 | |||||||||||||||||||||||||
Total credit card | $ | 81,754 | 100 | % | $ | 85,876 | 100 | % | |||||||||||||||||||||
Selected credit metrics(2): | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,425 | 2.97 | % | $ | 2,832 | 3.3 | % | |||||||||||||||||||||
90+ day delinquencies | 1,169 | 1.43 | 1,292 | 1.5 | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages by geographic region within the domestic and international credit card portfolios are calculated based on the total held for investment credit card loans as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Calculated by dividing delinquent credit card loans by the total balance of credit card loans held for investment as of the end of the reported period. | ||||||||||||||||||||||||||||
Schedule of Net Charge-Offs | Table 4.4: Credit Card: Net Charge-offs | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||||
Domestic credit card | $ | 664 | 3.55 | % | $ | 700 | 4.01 | % | |||||||||||||||||||||
International credit card | 55 | 2.8 | 80 | 4.17 | |||||||||||||||||||||||||
Total credit card | $ | 719 | 3.48 | $ | 780 | 4.02 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period. | ||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||
Schedule of Concentration Risk, by Risk Factor, Including Delinquency and Performing Status | The table below displays the geographic profile of our consumer banking loan portfolio, including Acquired Loans. We also present the delinquency and nonperforming loan rates of our consumer banking loan portfolio as of March 31, 2015 and December 31, 2014, and net charge-offs for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||
Table 4.5: Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of Total(1) | Amount | % of | |||||||||||||||||||||||||
Total(1) | |||||||||||||||||||||||||||||
Auto: | |||||||||||||||||||||||||||||
Texas | $ | 5,323 | 7.4 | % | $ | 5,248 | 7.4 | % | |||||||||||||||||||||
California | 4,248 | 6 | 4,081 | 5.7 | |||||||||||||||||||||||||
Florida | 2,919 | 4.1 | 2,737 | 3.8 | |||||||||||||||||||||||||
Georgia | 2,124 | 3 | 2,066 | 2.9 | |||||||||||||||||||||||||
Louisiana | 1,820 | 2.5 | 1,773 | 2.5 | |||||||||||||||||||||||||
Illinois | 1,722 | 2.4 | 1,676 | 2.4 | |||||||||||||||||||||||||
Ohio | 1,607 | 2.2 | 1,566 | 2.2 | |||||||||||||||||||||||||
Other | 19,174 | 26.9 | 18,677 | 26.1 | |||||||||||||||||||||||||
Total auto | 38,937 | 54.5 | 37,824 | 53 | |||||||||||||||||||||||||
Home loan: | |||||||||||||||||||||||||||||
California | 6,696 | 9.4 | 6,943 | 9.7 | |||||||||||||||||||||||||
New York | 2,387 | 3.3 | 2,452 | 3.4 | |||||||||||||||||||||||||
Illinois | 1,792 | 2.5 | 1,873 | 2.6 | |||||||||||||||||||||||||
Maryland | 1,674 | 2.3 | 1,720 | 2.4 | |||||||||||||||||||||||||
Virginia | 1,500 | 2.1 | 1,538 | 2.2 | |||||||||||||||||||||||||
New Jersey | 1,471 | 2.1 | 1,529 | 2.1 | |||||||||||||||||||||||||
Florida | 1,317 | 1.8 | 1,375 | 1.9 | |||||||||||||||||||||||||
Other | 12,068 | 17 | 12,605 | 17.7 | |||||||||||||||||||||||||
Total home loan | 28,905 | 40.5 | 30,035 | 42 | |||||||||||||||||||||||||
Retail banking: | |||||||||||||||||||||||||||||
Louisiana | 1,098 | 1.6 | 1,120 | 1.5 | |||||||||||||||||||||||||
New York | 873 | 1.2 | 881 | 1.2 | |||||||||||||||||||||||||
Texas | 749 | 1 | 756 | 1.1 | |||||||||||||||||||||||||
New Jersey | 252 | 0.4 | 265 | 0.4 | |||||||||||||||||||||||||
Maryland | 165 | 0.2 | 167 | 0.2 | |||||||||||||||||||||||||
Virginia | 142 | 0.2 | 132 | 0.2 | |||||||||||||||||||||||||
California | 50 | 0.1 | 52 | 0.1 | |||||||||||||||||||||||||
Other | 208 | 0.3 | 207 | 0.3 | |||||||||||||||||||||||||
Total retail banking | 3,537 | 5 | 3,580 | 5 | |||||||||||||||||||||||||
Total consumer banking | $ | 71,379 | 100 | % | $ | 71,439 | 100 | % | |||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Auto | Home Loan | Retail Banking | Total Consumer | ||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate(2) | Amount | Rate | Amount | Rate(2) | |||||||||||||||||||||
Credit performance: | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,149 | 5.52 | % | $ | 282 | 0.97 | % | $ | 40 | 1.12 | % | $ | 2,471 | 3.46 | % | |||||||||||||
90+ day delinquencies | 120 | 0.31 | 208 | 0.72 | 14 | 0.4 | 342 | 0.48 | |||||||||||||||||||||
Nonperforming loans | 120 | 0.31 | 336 | 1.16 | 25 | 0.71 | 481 | 0.67 | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Auto | Home Loan | Retail Banking | Total Consumer | ||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate | Amount | Rate(2) | Amount | Rate | Amount | Rate(2) | |||||||||||||||||||||
Credit performance: | |||||||||||||||||||||||||||||
30+ day delinquencies | $ | 2,682 | 7.09 | % | $ | 302 | 1.01 | % | $ | 40 | 1.11 | % | $ | 3,024 | 4.23 | % | |||||||||||||
90+ day delinquencies | 197 | 0.52 | 218 | 0.73 | 16 | 0.44 | 431 | 0.6 | |||||||||||||||||||||
Nonperforming loans | 197 | 0.52 | 330 | 1.1 | 22 | 0.61 | 549 | 0.77 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages by geographic region are calculated based on the total held for investment consumer banking loans as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Excluding the impact of Acquired Loans, the 30+ day delinquency rates, 90+ day delinquency rates, and the nonperforming loans rates for home loan portfolio were 4.15%, 3.06% and 4.94% as of March 31, 2015; and 4.45%, 3.21% and 4.86% as of December 31, 2014; and for total Consumer Banking were 5.02%, 0.70% and 0.98% as of March 31, 2015; and 6.28%, 0.89% and 1.14% as of December 31, 2014. | ||||||||||||||||||||||||||||
Schedule of Net Charge-Offs | Table 4.6: Consumer Banking: Net Charge-offs | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(Dollars in millions) | Amount | Rate(1) | Amount | Rate(1) | |||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||||
Auto | $ | 148 | 1.55 | % | $ | 134 | 1.66 | % | |||||||||||||||||||||
Home loan | 2 | 0.03 | 5 | 0.06 | |||||||||||||||||||||||||
Retail banking | 9 | 0.96 | 9 | 0.95 | |||||||||||||||||||||||||
Total consumer banking | $ | 159 | 0.89 | $ | 148 | 0.84 | |||||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||
(1) | Calculated for each loan category by dividing annualized net charge-offs for the period by average loans held for investment during the period. | ||||||||||||||||||||||||||||
Consumer Banking | Home loan | |||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||
Schedule of Concentration of Risk, by Risk Factor | The following table presents the distribution of our home loan portfolio as of March 31, 2015 and December 31, 2014, based on selected key risk characteristics. | ||||||||||||||||||||||||||||
Table 4.7: Home Loan: Risk Profile by Vintage, Geography, Lien Priority and Interest Rate Type | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Loans | Acquired Loans | Total Home Loans | |||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||||
Total(1) | Total(1) | Total(1) | |||||||||||||||||||||||||||
Origination year:(2) | |||||||||||||||||||||||||||||
< =006 | $ | 2,706 | 9.4 | % | $ | 5,520 | 19.1 | % | $ | 8,226 | 28.5 | % | |||||||||||||||||
2007 | 309 | 1.1 | 4,648 | 16 | 4,957 | 17.1 | |||||||||||||||||||||||
2008 | 178 | 0.6 | 3,337 | 11.6 | 3,515 | 12.2 | |||||||||||||||||||||||
2009 | 104 | 0.4 | 1,870 | 6.4 | 1,974 | 6.8 | |||||||||||||||||||||||
2010 | 113 | 0.4 | 2,864 | 9.9 | 2,977 | 10.3 | |||||||||||||||||||||||
2011 | 208 | 0.7 | 3,251 | 11.3 | 3,459 | 12 | |||||||||||||||||||||||
2012 | 1,536 | 5.3 | 500 | 1.7 | 2,036 | 7 | |||||||||||||||||||||||
2013 | 633 | 2.2 | 81 | 0.3 | 714 | 2.5 | |||||||||||||||||||||||
2014 | 734 | 2.5 | 35 | 0.1 | 769 | 2.6 | |||||||||||||||||||||||
2015 | 270 | 0.9 | 8 | 0.1 | 278 | 1 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Geographic concentration:(3) | |||||||||||||||||||||||||||||
California | $ | 931 | 3.2 | % | $ | 5,765 | 19.9 | % | $ | 6,696 | 23.1 | % | |||||||||||||||||
New York | 1,363 | 4.7 | 1,024 | 3.5 | 2,387 | 8.2 | |||||||||||||||||||||||
Illinois | 93 | 0.3 | 1,699 | 5.9 | 1,792 | 6.2 | |||||||||||||||||||||||
Maryland | 464 | 1.6 | 1,210 | 4.2 | 1,674 | 5.8 | |||||||||||||||||||||||
Virginia | 395 | 1.3 | 1,105 | 3.9 | 1,500 | 5.2 | |||||||||||||||||||||||
New Jersey | 337 | 1.2 | 1,134 | 3.9 | 1,471 | 5.1 | |||||||||||||||||||||||
Florida | 162 | 0.6 | 1,155 | 4 | 1,317 | 4.6 | |||||||||||||||||||||||
Arizona | 90 | 0.3 | 1,165 | 4 | 1,255 | 4.3 | |||||||||||||||||||||||
Louisiana | 1,171 | 4.1 | 36 | 0.1 | 1,207 | 4.2 | |||||||||||||||||||||||
Washington | 105 | 0.4 | 985 | 3.4 | 1,090 | 3.8 | |||||||||||||||||||||||
Other | 1,680 | 5.8 | 6,836 | 23.7 | 8,516 | 29.5 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Lien type: | |||||||||||||||||||||||||||||
1st lien | $ | 5,776 | 20 | % | $ | 21,766 | 75.3 | % | $ | 27,542 | 95.3 | % | |||||||||||||||||
2nd lien | 1,015 | 3.5 | 348 | 1.2 | 1,363 | 4.7 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
Interest rate type: | |||||||||||||||||||||||||||||
Fixed rate | $ | 2,513 | 8.7 | % | $ | 2,702 | 9.3 | % | $ | 5,215 | 18 | % | |||||||||||||||||
Adjustable rate | 4,278 | 14.8 | 19,412 | 67.2 | 23,690 | 82 | |||||||||||||||||||||||
Total | $ | 6,791 | 23.5 | % | $ | 22,114 | 76.5 | % | $ | 28,905 | 100 | % | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Loans | Acquired Loans | Total Home Loans | |||||||||||||||||||||||||||
(Dollars in millions) | Amount | % of | Amount | % of | Amount | % of | |||||||||||||||||||||||
Total(1) | Total(1) | Total(1) | |||||||||||||||||||||||||||
Origination year:(2) | |||||||||||||||||||||||||||||
< =006 | $ | 2,827 | 9.4 | % | $ | 5,715 | 19.1 | % | $ | 8,542 | 28.5 | % | |||||||||||||||||
2007 | 320 | 1.1 | 4,766 | 15.8 | 5,086 | 16.9 | |||||||||||||||||||||||
2008 | 187 | 0.6 | 3,494 | 11.7 | 3,681 | 12.3 | |||||||||||||||||||||||
2009 | 107 | 0.4 | 1,999 | 6.6 | 2,106 | 7 | |||||||||||||||||||||||
2010 | 120 | 0.4 | 3,108 | 10.3 | 3,228 | 10.7 | |||||||||||||||||||||||
2011 | 221 | 0.7 | 3,507 | 11.7 | 3,728 | 12.4 | |||||||||||||||||||||||
2012 | 1,620 | 5.4 | 533 | 1.8 | 2,153 | 7.2 | |||||||||||||||||||||||
2013 | 661 | 2.2 | 85 | 0.3 | 746 | 2.5 | |||||||||||||||||||||||
2014 | 731 | 2.4 | 34 | 0.1 | 765 | 2.5 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Geographic concentration:(3) | |||||||||||||||||||||||||||||
California | $ | 924 | 3.1 | % | $ | 6,019 | 20 | % | $ | 6,943 | 23.1 | % | |||||||||||||||||
New York | 1,379 | 4.6 | 1,073 | 3.6 | 2,452 | 8.2 | |||||||||||||||||||||||
Illinois | 86 | 0.3 | 1,787 | 5.9 | 1,873 | 6.2 | |||||||||||||||||||||||
Maryland | 457 | 1.5 | 1,263 | 4.2 | 1,720 | 5.7 | |||||||||||||||||||||||
Virginia | 385 | 1.3 | 1,153 | 3.8 | 1,538 | 5.1 | |||||||||||||||||||||||
New Jersey | 341 | 1.1 | 1,188 | 4 | 1,529 | 5.1 | |||||||||||||||||||||||
Florida | 161 | 0.5 | 1,214 | 4.1 | 1,375 | 4.6 | |||||||||||||||||||||||
Arizona | 89 | 0.3 | 1,215 | 4.1 | 1,304 | 4.4 | |||||||||||||||||||||||
Louisiana | 1,205 | 4 | 38 | 0.1 | 1,243 | 4.1 | |||||||||||||||||||||||
Washington | 109 | 0.4 | 1,038 | 3.4 | 1,147 | 3.8 | |||||||||||||||||||||||
Other | 1,658 | 5.5 | 7,253 | 24.2 | 8,911 | 29.7 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Lien type: | |||||||||||||||||||||||||||||
1st lien | $ | 5,756 | 19.2 | % | $ | 22,883 | 76.2 | % | $ | 28,639 | 95.4 | % | |||||||||||||||||
2nd lien | 1,038 | 3.4 | 358 | 1.2 | 1,396 | 4.6 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
Interest rate type: | |||||||||||||||||||||||||||||
Fixed rate | $ | 2,446 | 8.1 | % | $ | 2,840 | 9.5 | % | $ | 5,286 | 17.6 | % | |||||||||||||||||
Adjustable rate | 4,348 | 14.5 | 20,401 | 67.9 | 24,749 | 82.4 | |||||||||||||||||||||||
Total | $ | 6,794 | 22.6 | % | $ | 23,241 | 77.4 | % | $ | 30,035 | 100 | % | |||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages within each risk category are calculated based on total home loans held for investment. | ||||||||||||||||||||||||||||
(2) | The Acquired Loans origination balances in the years subsequent to 2012 are related to refinancing of previously acquired home loans. | ||||||||||||||||||||||||||||
(3) | Represents the ten states in which we have the highest concentration of home loans. | ||||||||||||||||||||||||||||
Our recorded investment in home loans for properties that are in process of foreclosure was $583 million as of March 31, 2015. We commence the foreclosure process on home loans when a borrower becomes at least 120 days delinquent in accordance with Consumer Financial Protection Bureau regulations. Foreclosure procedures and time lines vary according to state law. As of March 31, 2015 and December 31, 2014, the carrying value of the foreclosed residential real estate properties which we hold and report as other assets on our consolidated balance sheet totaled $133 million and $131 million, respectively. | |||||||||||||||||||||||||||||
Commercial Banking | |||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||
Schedule of Concentration of Risk, by Risk Factor | The following table presents the geographic distribution and internal risk ratings of our commercial loan portfolio as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||
Table 4.8: Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
(Dollars in millions) | Commercial | % of | Commercial | % of | Small-ticket | % of | Total | % of | |||||||||||||||||||||
and | Total(1) | and | Total(1) | Commercial | Total(1) | Commercial Banking | Total(1) | ||||||||||||||||||||||
Multifamily | Industrial | Real Estate | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Geographic concentration:(2) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Northeast | $ | 14,677 | 64.3 | % | $ | 6,448 | 23.7 | % | $ | 452 | 61.2 | % | $ | 21,577 | 42.5 | % | |||||||||||||
Mid-Atlantic | 2,578 | 11.3 | 2,138 | 7.9 | 28 | 3.8 | 4,744 | 9.3 | |||||||||||||||||||||
South | 3,375 | 14.8 | 12,133 | 44.7 | 46 | 6.2 | 15,554 | 30.7 | |||||||||||||||||||||
Other | 2,201 | 9.6 | 6,453 | 23.7 | 212 | 28.8 | 8,866 | 17.5 | |||||||||||||||||||||
Total | $ | 22,831 | 100 | % | $ | 27,172 | 100 | % | $ | 738 | 100 | % | $ | 50,741 | 100 | % | |||||||||||||
Internal risk rating:(3) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Noncriticized | $ | 22,283 | 97.6 | % | $ | 25,933 | 95.4 | % | $ | 722 | 97.8 | % | $ | 48,938 | 96.5 | % | |||||||||||||
Criticized performing | 508 | 2.2 | 1,133 | 4.2 | 4 | 0.6 | 1,645 | 3.2 | |||||||||||||||||||||
Criticized nonperforming | 40 | 0.2 | 106 | 0.4 | 12 | 1.6 | 158 | 0.3 | |||||||||||||||||||||
Total | $ | 22,831 | 100 | % | $ | 27,172 | 100 | % | $ | 738 | 100 | % | $ | 50,741 | 100 | % | |||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
(Dollars in millions) | Commercial | % of | Commercial | % of | Small-ticket | % of | Total | % of | |||||||||||||||||||||
and | Total(1) | and | Total(1) | Commercial | Total(1) | Commercial Banking | Total(1) | ||||||||||||||||||||||
Multifamily | Industrial | Real Estate | |||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Geographic concentration:(2) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Northeast | $ | 15,135 | 65.4 | % | $ | 6,384 | 23.7 | % | $ | 478 | 61.2 | % | $ | 21,997 | 43.2 | % | |||||||||||||
Mid-Atlantic | 2,491 | 10.8 | 2,121 | 7.9 | 30 | 3.8 | 4,642 | 9.1 | |||||||||||||||||||||
South | 3,070 | 13.3 | 12,310 | 45.6 | 48 | 6.2 | 15,428 | 30.3 | |||||||||||||||||||||
Other | 2,441 | 10.5 | 6,157 | 22.8 | 225 | 28.8 | 8,823 | 17.4 | |||||||||||||||||||||
Total | $ | 23,137 | 100 | % | $ | 26,972 | 100 | % | $ | 781 | 100 | % | $ | 50,890 | 100 | % | |||||||||||||
Internal risk rating:(3) | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Noncriticized | $ | 22,535 | 97.4 | % | $ | 25,982 | 96.3 | % | $ | 767 | 98.2 | % | $ | 49,284 | 96.9 | % | |||||||||||||
Criticized performing | 540 | 2.3 | 884 | 3.3 | 7 | 0.9 | 1,431 | 2.8 | |||||||||||||||||||||
Criticized nonperforming | 62 | 0.3 | 106 | 0.4 | 7 | 0.9 | 175 | 0.3 | |||||||||||||||||||||
Total | $ | 23,137 | 100 | % | $ | 26,972 | 100 | % | $ | 781 | 100 | % | $ | 50,890 | 100 | % | |||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Percentages calculated based on total held for investment commercial loans in each respective loan category as of the end of the reported period. | ||||||||||||||||||||||||||||
(2) | Northeast consists of CT, ME, MA, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DE, DC, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MS, MO, NC, SC, TN and TX. | ||||||||||||||||||||||||||||
(3) | Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by banking regulatory authorities. |
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | The table below presents the components of our allowance for loan and lease losses, by portfolio segment and impairment methodology, and the recorded investment of the related loans as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||
Table 5.2: Components of Allowance for Loan and Lease Losses by Impairment Methodology | |||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit | Auto | Home | Retail | Total | Commercial Banking | Other | Total | |||||||||||||||||||||||||||||||||
Card | Loan | Banking | Consumer Banking | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 2,920 | $ | 675 | $ | 19 | $ | 52 | $ | 746 | $ | 411 | $ | 5 | $ | 4,082 | |||||||||||||||||||||||||
Asset-specific(2) | 210 | 22 | 16 | 9 | 47 | 32 | 0 | 289 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 0 | 0 | 33 | 0 | 33 | 1 | 0 | 34 | |||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 3,130 | $ | 697 | $ | 68 | $ | 61 | $ | 826 | $ | 444 | $ | 5 | $ | 4,405 | |||||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 81,060 | $ | 38,688 | $ | 6,426 | $ | 3,444 | $ | 48,558 | $ | 50,237 | $ | 104 | $ | 179,959 | |||||||||||||||||||||||||
Asset-specific(2) | 673 | 249 | 365 | 54 | 668 | 344 | 0 | 1,685 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 21 | 0 | 22,114 | 39 | 22,153 | 160 | 0 | 22,334 | |||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 81,754 | $ | 38,937 | $ | 28,905 | $ | 3,537 | $ | 71,379 | $ | 50,741 | $ | 104 | $ | 203,978 | |||||||||||||||||||||||||
Allowance as a percentage of period-end loans held for investment | 3.83 | % | 1.79 | % | 0.23 | % | 1.74 | % | 1.16 | % | 0.87 | % | 4.48 | % | 2.16 | % | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Consumer Banking | |||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Credit | Auto | Home | Retail | Total | Commercial Banking | Other | Total | |||||||||||||||||||||||||||||||||
Card | Loan | Banking | Consumer Banking | ||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 2,985 | $ | 642 | $ | 18 | $ | 50 | $ | 710 | $ | 356 | $ | 5 | $ | 4,056 | |||||||||||||||||||||||||
Asset-specific(2) | 219 | 19 | 17 | 6 | 42 | 39 | 0 | 300 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 0 | 0 | 27 | 0 | 27 | 0 | 0 | 27 | |||||||||||||||||||||||||||||||||
Total allowance for loan and lease losses | $ | 3,204 | $ | 661 | $ | 62 | $ | 56 | $ | 779 | $ | 395 | $ | 5 | $ | 4,383 | |||||||||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||||||||||||||||||||
Collectively evaluated(1) | $ | 85,161 | $ | 37,594 | $ | 6,427 | $ | 3,486 | $ | 47,507 | $ | 50,328 | $ | 111 | $ | 183,107 | |||||||||||||||||||||||||
Asset-specific(2) | 692 | 230 | 367 | 50 | 647 | 370 | 0 | 1,709 | |||||||||||||||||||||||||||||||||
Acquired Loans(3) | 23 | 0 | 23,241 | 44 | 23,285 | 192 | 0 | 23,500 | |||||||||||||||||||||||||||||||||
Total loans held for investment | $ | 85,876 | $ | 37,824 | $ | 30,035 | $ | 3,580 | $ | 71,439 | $ | 50,890 | $ | 111 | $ | 208,316 | |||||||||||||||||||||||||
Allowance as a percentage of period-end loans held for investment | 3.73 | % | 1.75 | % | 0.21 | % | 1.58 | % | 1.09 | % | 0.78 | % | 4.68 | % | 2.1 | % | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||
(1) | The component of the allowance for loan and lease losses for credit card and other consumer loans that we collectively evaluate for impairment is based on a statistical calculation supplemented by management judgment and interpretation. The component of the allowance for loan and lease losses for commercial loans, which we collectively evaluate for impairment, is based on historical loss experience for loans with similar characteristics and consideration of credit quality supplemented by management judgment and interpretation. | ||||||||||||||||||||||||||||||||||||||||
(2) | The asset-specific component of the allowance for loan and lease losses for smaller-balance impaired loans is calculated on a pool basis using historical loss experience for the respective class of assets. The asset-specific component of the allowance for loan and lease losses for larger-balance commercial loans is individually calculated for each loan. | ||||||||||||||||||||||||||||||||||||||||
(3) | The Acquired Loans component of the allowance for loan and lease losses is accounted for based on expected cash flows. See “Note 1—Summary of Significant Accounting Policies” in our 2014 Form 10-K for details on these loans. | ||||||||||||||||||||||||||||||||||||||||
The table below summarizes changes in the allowance for loan and lease losses, by portfolio segment, for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||||||||||||||
Table 5.1: Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||||||||||||
Credit | Consumer Banking | Commercial Banking | Other(1) | Total | Unfunded | Combined | |||||||||||||||||||||||||||||||||||
Card | Allowance | Lending | Allowance | ||||||||||||||||||||||||||||||||||||||
Commitments | & | ||||||||||||||||||||||||||||||||||||||||
Reserve | Unfunded | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Auto | Home | Retail | Total | Reserve | ||||||||||||||||||||||||||||||||||||
Loan | Banking | Consumer | |||||||||||||||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 3,204 | $ | 661 | $ | 62 | $ | 56 | $ | 779 | $ | 395 | $ | 5 | $ | 4,383 | $ | 113 | $ | 4,496 | |||||||||||||||||||||
Provision for credit losses | 669 | 184 | 8 | 14 | 206 | 52 | 0 | 927 | 8 | 935 | |||||||||||||||||||||||||||||||
Charge-offs | (1,022 | ) | (233 | ) | (4 | ) | (13 | ) | (250 | ) | (9 | ) | (3 | ) | (1,284 | ) | 0 | (1,284 | ) | ||||||||||||||||||||||
Recoveries | 303 | 85 | 2 | 4 | 91 | 6 | 3 | 403 | 0 | 403 | |||||||||||||||||||||||||||||||
Net charge-offs | (719 | ) | (148 | ) | (2 | ) | (9 | ) | (159 | ) | (3 | ) | 0 | (881 | ) | 0 | (881 | ) | |||||||||||||||||||||||
Other changes(2) | (24 | ) | 0 | 0 | 0 | 0 | 0 | 0 | (24 | ) | 0 | (24 | ) | ||||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 3,130 | $ | 697 | $ | 68 | $ | 61 | $ | 826 | $ | 444 | $ | 5 | $ | 4,405 | $ | 121 | $ | 4,526 | |||||||||||||||||||||
Credit | Consumer Banking | Commercial Banking | Other(1) | Total | Unfunded | Combined | |||||||||||||||||||||||||||||||||||
Card | Allowance | Lending | Allowance | ||||||||||||||||||||||||||||||||||||||
Commitments | & | ||||||||||||||||||||||||||||||||||||||||
Reserve | Unfunded | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Auto | Home | Retail | Total | Reserve | ||||||||||||||||||||||||||||||||||||
Loan | Banking | Consumer | |||||||||||||||||||||||||||||||||||||||
Banking | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 3,214 | $ | 606 | $ | 83 | $ | 63 | $ | 752 | $ | 338 | $ | 11 | $ | 4,315 | $ | 87 | $ | 4,402 | |||||||||||||||||||||
Provision (benefit) for credit losses | 558 | 136 | (6 | ) | 10 | 140 | 28 | (3 | ) | 723 | 12 | 735 | |||||||||||||||||||||||||||||
Charge-offs | (1,095 | ) | (205 | ) | (11 | ) | (15 | ) | (231 | ) | (7 | ) | (2 | ) | (1,335 | ) | 0 | (1,335 | ) | ||||||||||||||||||||||
Recoveries | 315 | 71 | 6 | 6 | 83 | 3 | 3 | 404 | 0 | 404 | |||||||||||||||||||||||||||||||
Net charge-offs | (780 | ) | (134 | ) | (5 | ) | (9 | ) | (148 | ) | (4 | ) | 1 | (931 | ) | 0 | (931 | ) | |||||||||||||||||||||||
Other changes(2) | (8 | ) | 0 | 0 | 0 | 0 | 0 | (1 | ) | (9 | ) | 0 | (9 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2014 | $ | 2,984 | $ | 608 | $ | 72 | $ | 64 | $ | 744 | $ | 362 | $ | 8 | $ | 4,098 | $ | 99 | $ | 4,197 | |||||||||||||||||||||
_________ | |||||||||||||||||||||||||||||||||||||||||
(1) | Other consists of our discontinued GreenPoint mortgage operations loan portfolio and our community redevelopment loan portfolio. | ||||||||||||||||||||||||||||||||||||||||
(2) | Represents foreign currency translation adjustments and the net impact of loan transfers and sales. |
Variable_Interest_Entities_and1
Variable Interest Entities and Securitizations (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Variable Interest Entities and Securitization [Abstract] | |||||||||||||||||||||
Carrying Amount of Assets and Liabilities of Variable Interest Entities | The table below presents a summary of VIEs, aggregated based on VIEs with similar characteristics, in which we had continuing involvement or held a variable interest as of March 31, 2015 and December 31, 2014. We separately present information for consolidated and unconsolidated VIEs. | ||||||||||||||||||||
For consolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets. The assets of consolidated VIEs primarily consist of cash and loans, which we report on our consolidated balance sheets under restricted cash and restricted loans, respectively, for securitization investors. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs typically do not have recourse to the general credit of the Company. The liabilities primarily consist of debt securities issued by the VIEs, which we report under securitized debt obligations. For unconsolidated VIEs, we present the carrying amount of assets and liabilities reflected on our consolidated balance sheets and our maximum exposure to loss. Our maximum exposure to loss is estimated based on the unlikely event that all of the assets in the VIEs become worthless and we are required to meet our maximum remaining funding obligations. | |||||||||||||||||||||
Table 6.1: Carrying Amount of Consolidated and Unconsolidated VIEs | |||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||
Consolidated | Unconsolidated | ||||||||||||||||||||
(Dollars in millions) | Carrying | Carrying | Carrying | Carrying | Maximum | ||||||||||||||||
Amount | Amount of | Amount | Amount of | Exposure to | |||||||||||||||||
of Assets | Liabilities | of Assets | Liabilities | Loss | |||||||||||||||||
Securitization-related VIEs: | |||||||||||||||||||||
Credit card loan securitizations(1) | $ | 34,172 | $ | 13,425 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Home loan securitizations(2) | 0 | 0 | 223 | 28 | 892 | ||||||||||||||||
Total securitization-related VIEs | 34,172 | 13,425 | 223 | 28 | 892 | ||||||||||||||||
Other VIEs: | |||||||||||||||||||||
Affordable housing entities | 0 | 0 | 3,502 | 463 | 3,502 | ||||||||||||||||
Entities that provide capital to low-income and rural communities | 384 | 100 | 0 | 0 | 0 | ||||||||||||||||
Other | 0 | 0 | 70 | 0 | 70 | ||||||||||||||||
Total other VIEs | 384 | 100 | 3,572 | 463 | 3,572 | ||||||||||||||||
Total VIEs | $ | 34,556 | $ | 13,525 | $ | 3,795 | $ | 491 | $ | 4,464 | |||||||||||
December 31, 2014 | |||||||||||||||||||||
Consolidated | Unconsolidated | ||||||||||||||||||||
(Dollars in millions) | Carrying | Carrying | Carrying | Carrying | Maximum | ||||||||||||||||
Amount | Amount of | Amount | Amount of | Exposure to | |||||||||||||||||
of Assets | Liabilities | of Assets | Liabilities | Loss | |||||||||||||||||
Securitization-related VIEs: | |||||||||||||||||||||
Credit card loan securitizations(1) | $ | 36,779 | $ | 12,350 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Home loan securitizations(2) | 0 | 0 | 221 | 31 | 876 | ||||||||||||||||
Total securitization-related VIEs | 36,779 | 12,350 | 221 | 31 | 876 | ||||||||||||||||
Other VIEs: | |||||||||||||||||||||
Affordable housing entities | 0 | 0 | 3,500 | 488 | 3,500 | ||||||||||||||||
Entities that provide capital to low-income and rural communities | 374 | 99 | 1 | 0 | 1 | ||||||||||||||||
Other | 4 | 0 | 74 | 0 | 74 | ||||||||||||||||
Total other VIEs | 378 | 99 | 3,575 | 488 | 3,575 | ||||||||||||||||
Total VIEs | $ | 37,157 | $ | 12,449 | $ | 3,796 | $ | 519 | $ | 4,451 | |||||||||||
__________ | |||||||||||||||||||||
(1) | Represents the gross amount of assets and liabilities owned by the VIE, which includes seller’s interest and retained and repurchased notes held by other related parties. | ||||||||||||||||||||
(2) | The carrying amount of assets of unconsolidated securitization-related VIEs consists of retained interests associated with the securitization of option-adjustable rate mortgage loans (“option-ARM”) and letters of credit related to manufactured housing securitizations. These are reported on our consolidated balance sheets under other assets. The carrying amount of liabilities of unconsolidated securitization-related VIEs is comprised of obligations on certain swap agreements associated with the securitization of manufactured housing loans and other obligations. These are reported on our consolidated balance sheets under other liabilities. | ||||||||||||||||||||
External Debt and Receivable Balances of Securitization Programs | The table below presents the securitization-related VIEs in which we had continuing involvement as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
Table 6.2: Continuing Involvement in Securitization-Related VIEs | |||||||||||||||||||||
Non-Mortgage | Mortgage | ||||||||||||||||||||
(Dollars in millions) | Credit | Option | GreenPoint | GreenPoint | |||||||||||||||||
Card | ARM | HELOCs | Manufactured | ||||||||||||||||||
Housing | |||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||
Securities held by third-party investors | $ | 12,717 | $ | 1,971 | $ | 90 | $ | 862 | |||||||||||||
Receivables in the trust | 33,938 | 2,037 | 84 | 868 | |||||||||||||||||
Cash balance of spread or reserve accounts | 0 | 8 | N/A | 145 | |||||||||||||||||
Retained interests | Yes | Yes | Yes | Yes | |||||||||||||||||
Servicing retained | Yes | Yes | (1) | No | No | (2) | |||||||||||||||
Amortization event(3) | No | No | No | No | |||||||||||||||||
December 31, 2014: | |||||||||||||||||||||
Securities held by third-party investors | $ | 11,624 | $ | 2,026 | $ | 95 | $ | 887 | |||||||||||||
Receivables in the trust | 36,545 | 2,094 | 89 | 893 | |||||||||||||||||
Cash balance of spread or reserve accounts | 0 | 8 | N/A | 143 | |||||||||||||||||
Retained interests | Yes | Yes | Yes | Yes | |||||||||||||||||
Servicing retained | Yes | Yes | (1) | No | (1) | No | (2) | ||||||||||||||
Amortization event(3) | No | No | No | No | |||||||||||||||||
__________ | |||||||||||||||||||||
(1) | We retained servicing of the outstanding balance for a portion of securitized mortgage receivables. | ||||||||||||||||||||
(2) | The core servicing activities for the manufactured housing securitizations are completed by a third party. | ||||||||||||||||||||
(3) | Amortization events vary according to each specific trust agreement but generally are triggered by declines in performance or credit metrics, such as net charge-off rates or delinquency rates, below certain predetermined thresholds. Generally, the occurrence of an amortization event changes the sequencing and amount of trust-related cash flows to the benefit of senior noteholders. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Components of Goodwill and Other Intangible Assets | The table below displays the components of goodwill, intangible assets and MSRs as of March 31, 2015 and December 31, 2014. Goodwill is presented separately on our consolidated balance sheets. Intangible assets and MSRs are included in other assets on our consolidated balance sheets. | ||||||||||||||||||||||||
Table 7.1: Components of Goodwill, Intangible Assets and MSRs | |||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||
(Dollars in millions) | Carrying | Accumulated Amortization(1) | Net | Carrying | Accumulated Amortization(1) | Net | |||||||||||||||||||
Amount of | Carrying | Amount of | Carrying | ||||||||||||||||||||||
Assets(1) | Amount | Assets(1) | Amount | ||||||||||||||||||||||
Goodwill | $ | 13,978 | N/A | $ | 13,978 | $ | 13,978 | N/A | $ | 13,978 | |||||||||||||||
Intangible assets: | |||||||||||||||||||||||||
Purchased credit card relationship (“PCCR”) intangibles | 2,147 | $ | (1,235 | ) | 912 | 2,124 | $ | (1,152 | ) | 972 | |||||||||||||||
Core deposit intangibles | 1,771 | (1,596 | ) | 175 | 1,771 | (1,569 | ) | 202 | |||||||||||||||||
Other(2) | 239 | (114 | ) | 125 | 300 | (158 | ) | 142 | |||||||||||||||||
Total intangible assets | 4,157 | (2,945 | ) | 1,212 | 4,195 | (2,879 | ) | 1,316 | |||||||||||||||||
Total goodwill and intangible assets | $ | 18,135 | $ | (2,945 | ) | $ | 15,190 | $ | 18,173 | $ | (2,879 | ) | $ | 15,294 | |||||||||||
MSRs: | |||||||||||||||||||||||||
Consumer MSRs(3) | $ | 53 | N/A | $ | 53 | $ | 53 | N/A | $ | 53 | |||||||||||||||
Commercial MSRs(4) | 177 | $ | (30 | ) | 147 | 171 | $ | (24 | ) | 147 | |||||||||||||||
Total MSRs | $ | 230 | $ | (30 | ) | $ | 200 | $ | 224 | $ | (24 | ) | $ | 200 | |||||||||||
__________ | |||||||||||||||||||||||||
(1) | Certain intangible assets that were fully amortized in prior periods were removed from our consolidated balance sheets. | ||||||||||||||||||||||||
(2) | Primarily consists of brokerage relationship intangibles, partnership and other contract intangibles and tradename intangibles. Also includes certain indefinite-lived intangibles of $4 million as of both March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(3) | Represents MSRs related to our Consumer Banking business that are carried at fair value on our consolidated balance sheets. | ||||||||||||||||||||||||
(4) | Represents MSRs related to our Commercial Banking business that are subsequently measured under the amortization method and periodically assessed for impairment. None of these MSRs were impaired during the three months ended March 31, 2015 and 2014 and no valuation allowance was recorded as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Goodwill Attributable to Each Business Segments | The following table presents goodwill attributable to each of our business segments as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 7.2: Goodwill Attributable to Business Segments | |||||||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial Banking | Total | |||||||||||||||||||||
Card | Banking | ||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 5,001 | $ | 4,593 | $ | 4,384 | $ | 13,978 | |||||||||||||||||
Acquisitions | 0 | 5 | 0 | 5 | |||||||||||||||||||||
Other adjustments | (5 | ) | 0 | 0 | (5 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | $ | 4,996 | $ | 4,598 | $ | 4,384 | $ | 13,978 | |||||||||||||||||
Deposits_and_Borrowings_Tables
Deposits and Borrowings (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Deposits and Borrowings [Abstract] | ||||||||||||||||
Components of Deposits, Short-term Borrowings and Long-term Debt | The table below summarizes the components of our deposits, short-term borrowings and long-term debt as of March 31, 2015 and December 31, 2014. Our total short-term borrowings consist of federal funds purchased and securities loaned or sold under agreements to repurchase and other short-term borrowings with an original contractual maturity of one year or less. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The amounts presented for outstanding borrowings include unamortized debt premiums and discounts, net of fair value hedge accounting adjustments. | |||||||||||||||
Table 8.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt | ||||||||||||||||
(Dollars in millions) | March 31, | December 31, | ||||||||||||||
2015 | 2014 | |||||||||||||||
Deposits: | ||||||||||||||||
Non-interest bearing deposits | $ | 25,232 | $ | 25,081 | ||||||||||||
Interest-bearing deposits | 185,208 | 180,467 | ||||||||||||||
Total deposits | $ | 210,440 | $ | 205,548 | ||||||||||||
Short-term borrowings: | ||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 933 | $ | 880 | ||||||||||||
FHLB advances | 5,750 | 16,200 | ||||||||||||||
Total short-term borrowings | $ | 6,683 | $ | 17,080 | ||||||||||||
March 31, 2015 | ||||||||||||||||
(Dollars in millions) | Maturity | Interest Rate | Weighted | Outstanding Amount | December 31, | |||||||||||
Date | Average | 2014 | ||||||||||||||
Interest Rate | ||||||||||||||||
Long-term debt: | ||||||||||||||||
Securitized debt obligations(1) | 2015 -2025 | 0.21 - 5.75% | 1.35 | % | $ | 12,717 | $ | 11,624 | ||||||||
Senior and subordinated notes:(1) | ||||||||||||||||
Fixed unsecured senior debt | 2015 - 2025 | 1.00 - 6.75% | 2.73 | 16,624 | 15,174 | |||||||||||
Floating unsecured senior debt | 2015 - 2018 | 0.71 - 0.94% | 0.84 | 1,280 | 880 | |||||||||||
Total unsecured senior debt | 2.6 | 17,904 | 16,054 | |||||||||||||
Fixed unsecured subordinated debt | 2016 - 2023 | 3.38 - 8.80% | 4.97 | 2,655 | 2,630 | |||||||||||
Total senior and subordinated notes | 20,559 | 18,684 | ||||||||||||||
Other long-term borrowings: | ||||||||||||||||
FHLB advances | 2015 - 2023 | 0.22 - 6.88% | 0.55 | 1,070 | 1,069 | |||||||||||
Total long-term debt | 34,346 | 31,377 | ||||||||||||||
Total short-term borrowings and long-term debt | $ | 41,029 | $ | 48,457 | ||||||||||||
___________ | ||||||||||||||||
(1) | Outstanding amount includes the impact from hedge accounting. | |||||||||||||||
Schedule of Components of Interest Expense on Short-Term Borrowings and Long-Term Debt | The following table displays interest expense attributable to short-term borrowings and long-term debt for the three months ended March 31, 2015 and 2014: | |||||||||||||||
Table 8.2: Components of Interest Expense on Short-Term Borrowings and Long-Term Debt | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
(Dollars in millions) | 2015 | 2014 | ||||||||||||||
Short-term borrowings: | ||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $ | 0 | $ | 0 | ||||||||||||
FHLB advances | 8 | 6 | ||||||||||||||
Total short-term borrowings | 8 | 6 | ||||||||||||||
Long-term debt: | ||||||||||||||||
Securitized debt obligations(1) | 33 | 38 | ||||||||||||||
Senior and subordinated notes(1) | 79 | 77 | ||||||||||||||
Other long-term borrowings | 7 | 6 | ||||||||||||||
Total long-term debt | 119 | 121 | ||||||||||||||
Total interest expense on short-term borrowings and long-term debt | $ | 127 | $ | 127 | ||||||||||||
__________ | ||||||||||||||||
(1) | Interest expense includes the impact from hedge accounting. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Notional and Fair Values of Derivative Instruments | The following table summarizes the notional and fair values of our derivative instruments on a gross basis as of March 31, 2015 and December 31, 2014, which are segregated by derivatives that are designated as accounting hedges and those that are not, and are further segregated by type of contract within those two categories. The total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and any associated cash collateral received or paid. | ||||||||||||||||||||||||
Table 9.1: Derivative Assets and Liabilities at Fair Value | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Notional or | Derivative(1) | Notional or | Derivative(1) | ||||||||||||||||||||||
Contractual | Contractual | ||||||||||||||||||||||||
(Dollars in millions) | Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||
Fair value hedges | $ | 26,793 | $ | 577 | $ | 47 | $ | 24,543 | $ | 480 | $ | 39 | |||||||||||||
Cash flow hedges | 25,210 | 437 | 13 | 24,450 | 222 | 18 | |||||||||||||||||||
Total interest rate contracts | 52,003 | 1,014 | 60 | 48,993 | 702 | 57 | |||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||
Cash flow hedges | 5,140 | 340 | 1 | 5,546 | 221 | 2 | |||||||||||||||||||
Net investment hedges | 2,408 | 51 | 0 | 2,476 | 73 | 0 | |||||||||||||||||||
Total foreign exchange contracts | 7,548 | 391 | 1 | 8,022 | 294 | 2 | |||||||||||||||||||
Total derivatives designated as accounting hedges | 59,551 | 1,405 | 61 | 57,015 | 996 | 59 | |||||||||||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||||||||||
Interest rate contracts covering: | |||||||||||||||||||||||||
MSRs(2) | 1,028 | 13 | 5 | 777 | 10 | 3 | |||||||||||||||||||
Customer accommodation | 27,918 | 485 | 329 | 27,646 | 413 | 251 | |||||||||||||||||||
Other interest rate exposures(3) | 2,740 | 36 | 21 | 2,614 | 33 | 21 | |||||||||||||||||||
Total interest rate contracts | 31,686 | 534 | 355 | 31,037 | 456 | 275 | |||||||||||||||||||
Other contracts | 586 | 0 | 6 | 593 | 0 | 5 | |||||||||||||||||||
Total derivatives not designated as accounting hedges | 32,272 | 534 | 361 | 31,630 | 456 | 280 | |||||||||||||||||||
Total derivatives | $ | 91,823 | $ | 1,939 | $ | 422 | $ | 88,645 | $ | 1,452 | $ | 339 | |||||||||||||
Less: netting adjustment(4) | (666 | ) | (165 | ) | (624 | ) | (164 | ) | |||||||||||||||||
Total derivative assets/liabilities | $ | 1,273 | $ | 257 | $ | 828 | $ | 175 | |||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Derivative assets and liabilities include interest accruals. | ||||||||||||||||||||||||
(2) | Includes interest rate swaps and To Be Announced (“TBA”) contracts. | ||||||||||||||||||||||||
(3) | Other interest rate exposures include mortgage related derivatives. | ||||||||||||||||||||||||
(4) | Represents balance sheet netting of derivative assets and liabilities, and related receivables, payables, and cash collateral. See Table 9.2 for further information. | ||||||||||||||||||||||||
Offsetting Assets | The following table presents as of March 31, 2015 and December 31, 2014, the gross and net fair values of our derivative assets and liabilities and repurchase agreements, as well as the related offsetting amount permitted under U.S. GAAP. The table also includes cash and non-cash collateral received or pledged associated with such arrangements. The collateral amounts shown are limited to the extent of the related net derivative fair values or outstanding balances, thus instances of over-collateralization are not shown. | ||||||||||||||||||||||||
Table 9.2: Offsetting of Financial Assets and Financial Liabilities | |||||||||||||||||||||||||
Gross | Gross Amounts Offset in the Balance Sheet | Net Amounts as Recognized | Securities Collateral Held Under Master Netting Agreements | ||||||||||||||||||||||
(Dollars in millions) | Amounts | Financial | Cash Collateral Received | Net | |||||||||||||||||||||
Instruments | Exposure | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Derivatives assets(1) | $ | 1,939 | $ | (70 | ) | $ | (596 | ) | $ | 1,273 | $ | (121 | ) | $ | 1,152 | ||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Derivatives assets(1) | $ | 1,452 | $ | (101 | ) | $ | (523 | ) | $ | 828 | $ | (80 | ) | $ | 748 | ||||||||||
Offsetting Liabilities | |||||||||||||||||||||||||
Gross | Gross Amounts Offset in the Balance Sheet | Net Amounts as Recognized | Securities Collateral Pledged Under Master Netting Agreements | ||||||||||||||||||||||
(Dollars in millions) | Amounts | Financial | Cash Collateral Pledged | Net | |||||||||||||||||||||
Instruments | Exposure | ||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||
Derivatives liabilities(1) | $ | 422 | $ | (70 | ) | $ | (95 | ) | $ | 257 | $ | 0 | $ | 257 | |||||||||||
Repurchase agreements(2) | 924 | 0 | 0 | 924 | (924 | ) | 0 | ||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Derivatives liabilities(1) | $ | 339 | $ | (101 | ) | $ | (63 | ) | $ | 175 | $ | 0 | $ | 175 | |||||||||||
Repurchase agreements(2) | 869 | 0 | 0 | 869 | (869 | ) | 0 | ||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | The gross balances include derivative assets and derivative liabilities as of March 31, 2015 totaling $650 million and $207 million, respectively, related to the centrally cleared derivative contracts. The comparable amounts as of December 31, 2014 totaled $360 million and $127 million, respectively. These contracts were not subject to offsetting as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(2) | As of March 31, 2015 and December 31, 2014, the Company only had repurchase obligations outstanding and did not have any reverse repurchase receivables. | ||||||||||||||||||||||||
Fair Value Hedging and Free-Standing Derivatives | |||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||
Gains and Losses on Derivatives | The net gains (losses) recognized in earnings related to derivatives in fair value hedging relationships and free-standing derivatives are presented below for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
Table 9.3: Gains and Losses on Fair Value Hedges and Free-Standing Derivatives | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as accounting hedges:(1) | |||||||||||||||||||||||||
Fair value interest rate contracts: | |||||||||||||||||||||||||
Gains recognized in earnings on derivatives | $ | 153 | $ | 31 | |||||||||||||||||||||
Losses recognized in earnings on hedged items | (148 | ) | (23 | ) | |||||||||||||||||||||
Net fair value hedge ineffectiveness gains | 5 | 8 | |||||||||||||||||||||||
Derivatives not designated as accounting hedges:(1) | |||||||||||||||||||||||||
Interest rate contracts covering: | |||||||||||||||||||||||||
MSRs | 6 | 7 | |||||||||||||||||||||||
Customer accommodation | 4 | 4 | |||||||||||||||||||||||
Other interest rate exposures | 2 | 5 | |||||||||||||||||||||||
Total interest rate contracts | 12 | 16 | |||||||||||||||||||||||
Other contracts | (2 | ) | (3 | ) | |||||||||||||||||||||
Total gains on derivatives not designated as accounting hedges | 10 | 13 | |||||||||||||||||||||||
Net derivative gains recognized in earnings | $ | 15 | $ | 21 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Amounts are recorded in our consolidated statements of income in other non-interest income. | ||||||||||||||||||||||||
Cash Flow Hedging and Net Investment Hedging | |||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||
Gains and Losses on Derivatives | The table below shows the net gains (losses) related to derivatives designated as cash flow hedges and net investment hedges for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
Table 9.4: Gains and Losses on Derivatives Designated as Cash Flow Hedges and Net Investment Hedges | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||
Gains (losses) recorded in AOCI: | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts | $ | 210 | $ | 45 | |||||||||||||||||||||
Foreign exchange contracts | (5 | ) | (5 | ) | |||||||||||||||||||||
Subtotal | 205 | 40 | |||||||||||||||||||||||
Net investment hedges: | |||||||||||||||||||||||||
Foreign exchange contracts | 75 | 0 | |||||||||||||||||||||||
Net derivatives gains recognized in AOCI | $ | 280 | $ | 40 | |||||||||||||||||||||
Gains (losses) recorded in earnings: | |||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Gains (losses) reclassified from AOCI into earnings: | |||||||||||||||||||||||||
Interest rate contracts(1) | $ | 47 | $ | 26 | |||||||||||||||||||||
Foreign exchange contracts(2) | (4 | ) | (5 | ) | |||||||||||||||||||||
Subtotal | 43 | 21 | |||||||||||||||||||||||
Gains (losses) recognized in earnings due to ineffectiveness: | |||||||||||||||||||||||||
Interest rate contracts(2) | 2 | 1 | |||||||||||||||||||||||
Net derivative gains recognized in earnings | $ | 45 | $ | 22 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Amounts reclassified are recorded in our consolidated statements of income in interest income or interest expense. | ||||||||||||||||||||||||
(2) | Amounts reclassified are recorded in our consolidated statements of income in other non-interest income. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||
Schedule of Preferred Stock | The following table summarizes the Company’s preferred stock issued and outstanding as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
Table 10.1: Preferred Stock Issued and Outstanding | |||||||||||||||||||||||||
Carrying Value (in millions) | |||||||||||||||||||||||||
Series | Issuance Date | Redeemable by Issuer Beginning | Non-cumulative Fixed Dividend Rate per Annum | Redemption Price per Depositary Share | Number of Depositary Shares(1) | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||
Series B | 20-Aug-12 | 1-Sep-17 | 6 | % | $ | 25 | 35,000,000 | $ | 853 | $ | 853 | ||||||||||||||
Series C | 12-Jun-14 | 1-Sep-19 | 6.25 | 25 | 20,000,000 | 484 | 484 | ||||||||||||||||||
Series D | 31-Oct-14 | 1-Dec-19 | 6.7 | 25 | 20,000,000 | 485 | 485 | ||||||||||||||||||
Total | $ | 1,822 | $ | 1,822 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Each depositary share represents a 1/40th interest in a share of fixed-rate non-cumulative perpetual preferred stock. | ||||||||||||||||||||||||
Change in AOCI Gain (Loss) by Component (Net of Tax) | The following table presents the changes in AOCI by component for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||
Table 10.2: Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
(Dollars in millions) | Securities | Securities Held to Maturity(1) | Cash Flow | Foreign | Other | Total | |||||||||||||||||||
Available | Hedges | Currency | |||||||||||||||||||||||
for Sale | Translation Adjustments(2) | ||||||||||||||||||||||||
AOCI as of December 31, 2014 | $ | 410 | $ | (821 | ) | $ | 10 | $ | (8 | ) | $ | (21 | ) | $ | (430 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 114 | 0 | 205 | (84 | ) | (1 | ) | 234 | |||||||||||||||||
Amounts reclassified from AOCI into earnings | 8 | 20 | (43 | ) | 0 | (1 | ) | (16 | ) | ||||||||||||||||
Net other comprehensive income (loss) | 122 | 20 | 162 | (84 | ) | (2 | ) | 218 | |||||||||||||||||
AOCI as of March 31, 2015 | $ | 532 | $ | (801 | ) | $ | 172 | $ | (92 | ) | $ | (23 | ) | $ | (212 | ) | |||||||||
(Dollars in millions) | Securities | Securities Held to Maturity(1) | Cash Flow | Foreign | Other | Total | |||||||||||||||||||
Available | Hedges | Currency | |||||||||||||||||||||||
for Sale | Translation Adjustments | ||||||||||||||||||||||||
AOCI as of December 31, 2013 | $ | 106 | $ | (897 | ) | $ | (110 | ) | $ | 40 | $ | (11 | ) | $ | (872 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 149 | 0 | 40 | (13 | ) | 0 | 176 | ||||||||||||||||||
Amounts reclassified from AOCI into earnings | (5 | ) | 13 | (21 | ) | 0 | (1 | ) | (14 | ) | |||||||||||||||
Net other comprehensive income (loss) | 144 | 13 | 19 | (13 | ) | (1 | ) | 162 | |||||||||||||||||
AOCI as of March 31, 2014 | $ | 250 | $ | (884 | ) | $ | (91 | ) | $ | 27 | $ | (12 | ) | $ | (710 | ) | |||||||||
__________ | |||||||||||||||||||||||||
(1) | The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created at the date of transfer from the securities available for sale to securities held to maturity, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. | ||||||||||||||||||||||||
(2) | Includes the impact from hedging instruments designated as net investment hedges | ||||||||||||||||||||||||
Reclassifications from AOCI | The following table presents the impacts on net income of amounts reclassified from each component of AOCI for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||
Table 10.3: Reclassifications from AOCI | |||||||||||||||||||||||||
Amount Reclassified from AOCI | |||||||||||||||||||||||||
(Dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
AOCI Components | Affected Income Statement Line Item | 2015 | 2014 | ||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
Non-interest income - Other | $ | 2 | $ | 13 | |||||||||||||||||||||
Non-interest income - OTTI | (15 | ) | (5 | ) | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (13 | ) | 8 | ||||||||||||||||||||||
Income tax (benefit) provision | (5 | ) | 3 | ||||||||||||||||||||||
Net (loss) income | (8 | ) | 5 | ||||||||||||||||||||||
Securities held to maturity:(1) | |||||||||||||||||||||||||
Non-interest income - Other | (33 | ) | (28 | ) | |||||||||||||||||||||
Income tax benefit | (13 | ) | (15 | ) | |||||||||||||||||||||
Net loss | (20 | ) | (13 | ) | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||
Interest rate contracts: | Interest income - Other | 75 | 42 | ||||||||||||||||||||||
Foreign exchange contracts: | Non-interest income - Other | (7 | ) | (8 | ) | ||||||||||||||||||||
Income from continuing operations before income taxes | 68 | 34 | |||||||||||||||||||||||
Income tax provision | 25 | 13 | |||||||||||||||||||||||
Net income | 43 | 21 | |||||||||||||||||||||||
Other: | |||||||||||||||||||||||||
Various (pension and other) | 1 | 1 | |||||||||||||||||||||||
Income tax provision (benefit) | 0 | 0 | |||||||||||||||||||||||
Net income | 1 | 1 | |||||||||||||||||||||||
Total reclassifications | $ | 16 | $ | 14 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||
(1) | The amortization of unrealized holding gains or losses reported in AOCI for securities held to maturity will be offset by the amortization of the premium or discount created from the transfer into securities held to maturity, which occurred at fair value. | ||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) and Related Tax Impact | The table below summarizes other comprehensive income activity and the related tax impact for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||
Table 10.4: Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(Dollars in millions) | Before | Provision | After | Before | Provision | After | |||||||||||||||||||
Tax | (Benefit) | Tax | Tax | (Benefit) | Tax | ||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
Net unrealized gains on securities available for sale | $ | 190 | $ | 68 | $ | 122 | $ | 229 | $ | 85 | $ | 144 | |||||||||||||
Net changes in securities held to maturity | 33 | 13 | 20 | 28 | 15 | 13 | |||||||||||||||||||
Net unrealized gains on cash flow hedges | 258 | 96 | 162 | 30 | 11 | 19 | |||||||||||||||||||
Foreign currency translation adjustments(1) | (41 | ) | 43 | (84 | ) | (13 | ) | 0 | (13 | ) | |||||||||||||||
Other | (4 | ) | (2 | ) | (2 | ) | (1 | ) | 0 | (1 | ) | ||||||||||||||
Other comprehensive income | $ | 436 | $ | 218 | $ | 218 | $ | 273 | $ | 111 | $ | 162 | |||||||||||||
__________ | |||||||||||||||||||||||||
(1) | Includes the impact from hedging instruments designated as net investment hedges. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: | ||||||||
Table 11.1: Computation of Basic and Diluted Earnings per Common Share | |||||||||
Three Months Ended March 31, | |||||||||
(Dollars and shares in millions, except per share data) | 2015 | 2014 | |||||||
Basic earnings | |||||||||
Income from continuing operations, net of tax | $ | 1,134 | $ | 1,124 | |||||
Income from discontinued operations, net of tax | 19 | 30 | |||||||
Net income | 1,153 | 1,154 | |||||||
Dividends and undistributed earnings allocated to participating securities(1) | (6 | ) | (5 | ) | |||||
Preferred stock dividends | (32 | ) | (13 | ) | |||||
Net income available to common stockholders | $ | 1,115 | $ | 1,136 | |||||
Net income from continuing operations per share | $ | 2 | $ | 1.94 | |||||
Income from discontinued operations per share | 0.03 | 0.05 | |||||||
Net income per share | $ | 2.03 | $ | 1.99 | |||||
Total weighted-average basic shares outstanding | 550.2 | 571 | |||||||
Diluted earnings(2) | |||||||||
Net income available to common stockholders | $ | 1,115 | $ | 1,136 | |||||
Net income from continuing operations per share | $ | 1.97 | $ | 1.91 | |||||
Income from discontinued operations per share | 0.03 | 0.05 | |||||||
Net income per share | $ | 2 | $ | 1.96 | |||||
Total weighted-average basic shares outstanding | 550.2 | 571 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | 2.6 | 2.4 | |||||||
Other contingently issuable shares | 1.5 | 1.5 | |||||||
Warrants(3) | 2.9 | 5.4 | |||||||
Total effect of dilutive securities | 7 | 9.3 | |||||||
Total weighted-average diluted shares outstanding | 557.2 | 580.3 | |||||||
__________ | |||||||||
(1) | Includes undistributed earnings allocated to participating securities using the two-class method under the accounting guidance for computing earnings per share. | ||||||||
(2) | Excluded from the computation of diluted earnings per share were 2.0 million shares related to options with exercise prices ranging from $70.96 to $88.81, and 4.6 million shares related to options with exercise prices ranging from $70.96 to $88.81 for the three months ended March 31, 2015 and 2014, respectively, because their inclusion would be anti-dilutive. | ||||||||
(3) | Represents warrants issued as part of the U.S. Department of Treasury’s Troubled Assets Relief Program (“TARP”). As of March 31, 2015, there were 6.3 million warrants to purchase common stock outstanding, which represents approximately half of the warrants issued in the initial offering. |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table displays our assets and liabilities measured on our consolidated balance sheets at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.1: Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,440 | $ | 0 | $ | 0 | $ | 4,440 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 426 | 172 | 598 | |||||||||||||||||||||||||||||||||||||||||
RMBS | 0 | 25,493 | 555 | 26,048 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 0 | 5,255 | 174 | 5,429 | |||||||||||||||||||||||||||||||||||||||||
Other ABS | 0 | 2,021 | 7 | 2,028 | |||||||||||||||||||||||||||||||||||||||||
Other securities | 112 | 648 | 18 | 778 | |||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 4,552 | 33,843 | 926 | 39,321 | |||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 0 | 0 | 53 | 53 | |||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 3 | 1,863 | 73 | 1,939 | |||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 0 | 0 | 223 | 223 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,555 | $ | 35,706 | $ | 1,275 | $ | 41,536 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | $ | 3 | $ | 371 | $ | 48 | $ | 422 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 3 | $ | 371 | $ | 48 | $ | 422 | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 4,117 | $ | 1 | $ | 0 | $ | 4,118 | |||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | 0 | 467 | 333 | 800 | |||||||||||||||||||||||||||||||||||||||||
RMBS | 0 | 24,820 | 561 | 25,381 | |||||||||||||||||||||||||||||||||||||||||
CMBS | 0 | 5,291 | 228 | 5,519 | |||||||||||||||||||||||||||||||||||||||||
Other ABS | 0 | 2,597 | 65 | 2,662 | |||||||||||||||||||||||||||||||||||||||||
Other securities | 111 | 899 | 18 | 1,028 | |||||||||||||||||||||||||||||||||||||||||
Total securities available for sale | 4,228 | 34,075 | 1,205 | 39,508 | |||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 0 | 0 | 53 | 53 | |||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 4 | 1,382 | 66 | 1,452 | |||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 0 | 0 | 221 | 221 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,232 | $ | 35,457 | $ | 1,545 | $ | 41,234 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | $ | 3 | $ | 293 | $ | 43 | $ | 339 | |||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 3 | $ | 293 | $ | 43 | $ | 339 | |||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. See “Note 1—Summary of Significant Accounting Policies” for additional information. Prior period results have been recast to conform to this presentation. | ||||||||||||||||||||||||||||||||||||||||||||
The balances represent gross derivative amounts and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. The net derivative assets were $1.3 billion and $828 million, and the net derivative liabilities were $257 million and $175 million as of March 31, 2015 and December 31, 2014, respectively. See “Note 9—Derivative Instruments and Hedging Activities” for further information. | |||||||||||||||||||||||||||||||||||||||||||||
(2) | Does not reflect $5 million and $4 million recognized as a net valuation allowance on derivative assets and liabilities for non-performance risk as of March 31, 2015 and December 31, 2014, respectively. Non-performance risk is reflected in other assets and liabilities on the consolidated balance sheets and offset through other income in the consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Level 3 Inputs Reconciliation for Assets | The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014. When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period. | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.2: Level 3 Recurring Fair Value Rollforward | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
Income Related to Assets and | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities Still Held as of | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | March 31, 2015(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
2015 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 333 | $ | (2 | ) | $ | 5 | $ | 0 | $ | (68 | ) | $ | 0 | $ | (8 | ) | $ | 0 | $ | (88 | ) | $ | 172 | $ | 0 | |||||||||||||||||||
RMBS | 561 | 8 | 8 | 0 | 0 | 0 | (13 | ) | 85 | (94 | ) | 555 | 9 | ||||||||||||||||||||||||||||||||
CMBS | 228 | 0 | 1 | 0 | 0 | 0 | (21 | ) | 0 | (34 | ) | 174 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 65 | 1 | (2 | ) | 0 | (20 | ) | 0 | 0 | 0 | (37 | ) | 7 | 0 | |||||||||||||||||||||||||||||||
Other securities | 18 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 1,205 | 7 | 12 | 0 | (88 | ) | 0 | (42 | ) | 85 | (253 | ) | 926 | 9 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | (3 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 53 | (3 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 66 | 11 | 0 | 0 | 0 | 9 | (12 | ) | 0 | (1 | ) | 73 | 11 | ||||||||||||||||||||||||||||||||
Retained interest in securitizations | 221 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 223 | 2 | ||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 43 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | 7 | $ | (12 | ) | $ | 0 | $ | 0 | $ | 48 | $ | 10 | ||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | Income Related to Assets and Liabilities Still Held as of March 31, 2014(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
2014 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 927 | $ | 0 | $ | 10 | $ | 0 | $ | (112 | ) | $ | 0 | $ | (21 | ) | $ | 64 | $ | (116 | ) | $ | 752 | $ | 0 | ||||||||||||||||||||
RMBS | 1,304 | 20 | 28 | 886 | 0 | 0 | (34 | ) | 57 | (534 | ) | 1,727 | 20 | ||||||||||||||||||||||||||||||||
CMBS | 739 | 0 | 2 | 34 | 0 | 0 | (11 | ) | 38 | (307 | ) | 495 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 343 | 2 | 2 | 0 | 0 | 0 | (1 | ) | 43 | (163 | ) | 226 | 2 | ||||||||||||||||||||||||||||||||
Other securities | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 3,330 | 22 | 42 | 920 | (112 | ) | 0 | (67 | ) | 202 | (1,120 | ) | 3,217 | 22 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 69 | (11 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 61 | (11 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 50 | 0 | 0 | 0 | 0 | 2 | (3 | ) | 0 | (1 | ) | 48 | 0 | ||||||||||||||||||||||||||||||||
Retained interest in securitization | 199 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 197 | (2 | ) | ||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 38 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | (5 | ) | $ | 0 | $ | 0 | $ | 36 | $ | 2 | ||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Gains (Losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | During the three months ended March 31, 2015 and 2014, the transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities, while the transfers out of Level 3 were primarily driven by greater consistency among multiple pricing sources. | ||||||||||||||||||||||||||||||||||||||||||||
(3) | The amount presented for unrealized gains (losses) for assets still held as of the reporting date primarily represents impairments of securities available for sale, accretion on certain fixed maturity securities, changes in fair value of derivative instruments and mortgage servicing rights transactions. Impairment is reported in total other-than-temporary impairment, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(4) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Level 3 Inputs Reconciliation for Liabilities | The table below presents a reconciliation for all assets and liabilities measured and recognized at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014. When assets and liabilities are transferred between levels, we recognize the transfer as of the end of the period. | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.2: Level 3 Recurring Fair Value Rollforward | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
Income Related to Assets and | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities Still Held as of | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | March 31, 2015(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-15 | ||||||||||||||||||||||||||||||||||||||||
2015 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 333 | $ | (2 | ) | $ | 5 | $ | 0 | $ | (68 | ) | $ | 0 | $ | (8 | ) | $ | 0 | $ | (88 | ) | $ | 172 | $ | 0 | |||||||||||||||||||
RMBS | 561 | 8 | 8 | 0 | 0 | 0 | (13 | ) | 85 | (94 | ) | 555 | 9 | ||||||||||||||||||||||||||||||||
CMBS | 228 | 0 | 1 | 0 | 0 | 0 | (21 | ) | 0 | (34 | ) | 174 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 65 | 1 | (2 | ) | 0 | (20 | ) | 0 | 0 | 0 | (37 | ) | 7 | 0 | |||||||||||||||||||||||||||||||
Other securities | 18 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 1,205 | 7 | 12 | 0 | (88 | ) | 0 | (42 | ) | 85 | (253 | ) | 926 | 9 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | (3 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 53 | (3 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 66 | 11 | 0 | 0 | 0 | 9 | (12 | ) | 0 | (1 | ) | 73 | 11 | ||||||||||||||||||||||||||||||||
Retained interest in securitizations | 221 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 223 | 2 | ||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 43 | $ | 10 | $ | 0 | $ | 0 | $ | 0 | $ | 7 | $ | (12 | ) | $ | 0 | $ | 0 | $ | 48 | $ | 10 | ||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | Net Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
(Realized/Unrealized) | Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||
Included in Net | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Balance, | Included | Included in | Purchases | Sales | Issuances | Settlements | Transfers | Transfers | Balance, | Income Related to Assets and Liabilities Still Held as of March 31, 2014(3) | ||||||||||||||||||||||||||||||||||
January 1, | in Net | OCI | Into | Out of | 31-Mar-14 | ||||||||||||||||||||||||||||||||||||||||
2014 | Income(1) | Level 3(2) | Level 3(2) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities guaranteed by U.S. government agencies | $ | 927 | $ | 0 | $ | 10 | $ | 0 | $ | (112 | ) | $ | 0 | $ | (21 | ) | $ | 64 | $ | (116 | ) | $ | 752 | $ | 0 | ||||||||||||||||||||
RMBS | 1,304 | 20 | 28 | 886 | 0 | 0 | (34 | ) | 57 | (534 | ) | 1,727 | 20 | ||||||||||||||||||||||||||||||||
CMBS | 739 | 0 | 2 | 34 | 0 | 0 | (11 | ) | 38 | (307 | ) | 495 | 0 | ||||||||||||||||||||||||||||||||
Other ABS | 343 | 2 | 2 | 0 | 0 | 0 | (1 | ) | 43 | (163 | ) | 226 | 2 | ||||||||||||||||||||||||||||||||
Other securities | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | 0 | ||||||||||||||||||||||||||||||||||
Total securities available for sale | 3,330 | 22 | 42 | 920 | (112 | ) | 0 | (67 | ) | 202 | (1,120 | ) | 3,217 | 22 | |||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 69 | (11 | ) | 0 | 0 | 0 | 4 | (1 | ) | 0 | 0 | 61 | (11 | ) | |||||||||||||||||||||||||||||||
Derivative assets(4) | 50 | 0 | 0 | 0 | 0 | 2 | (3 | ) | 0 | (1 | ) | 48 | 0 | ||||||||||||||||||||||||||||||||
Retained interest in securitization | 199 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 197 | (2 | ) | ||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(4) | $ | 38 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | (5 | ) | $ | 0 | $ | 0 | $ | 36 | $ | 2 | ||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Gains (Losses) related to Level 3 Consumer MSRs, derivative assets and derivative liabilities, and retained interests in securitizations are reported in other non-interest income, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | During the three months ended March 31, 2015 and 2014, the transfers into Level 3 were primarily driven by less consistency among vendor pricing on individual securities, while the transfers out of Level 3 were primarily driven by greater consistency among multiple pricing sources. | ||||||||||||||||||||||||||||||||||||||||||||
(3) | The amount presented for unrealized gains (losses) for assets still held as of the reporting date primarily represents impairments of securities available for sale, accretion on certain fixed maturity securities, changes in fair value of derivative instruments and mortgage servicing rights transactions. Impairment is reported in total other-than-temporary impairment, which is a component of non-interest income, in our consolidated statements of income. | ||||||||||||||||||||||||||||||||||||||||||||
(4) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value on Recurring Basis Quantitative Information | The following table presents the significant unobservable inputs relied upon to determine the fair values of our recurring Level 3 financial instruments. We utilize multiple third-party pricing services to obtain fair value measures for our securities. Several of our third-party pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other third-party pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain for a majority of our securities. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.3: Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at March 31, | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
2015 | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
Techniques | Inputs | ||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 555 | Discounted cash flows (3rd party pricing) | Yield | 1-22% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-22% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 59% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 174 | Discounted cash flows (3rd party pricing) | Yield | 1-2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 7 | Discounted cash flows (3rd party pricing) | Yield | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0% | 0% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1% | 1% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30% | 30% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 190 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 9-20% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 14% | 14% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1500 bps | 489 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.45 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 73 | Discounted cash flows | Swap rates | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 223 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 24-84 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-11% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-11% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-6% | ||||||||||||||||||||||||||||||||||||||||||||
16-91% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 48 | Discounted cash flows | Swap rates | 2% | 2% | |||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
December 31, | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
2014 | Techniques | Inputs | |||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 561 | Discounted cash flows (3rd party pricing) | Yield | 0-18% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-23% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 55% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 228 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 1% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 65 | Discounted cash flows (3rd party pricing) | Yield | 2-7% | 5% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-3% | 2% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1-10% | 7% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30-88% | 71% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 351 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 12-27% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 12% | 12% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1,500 bps | 478 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.63 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 66 | Discounted cash flows | Swap rates | 2-3% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 221 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 25-72 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-13% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-9% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-8% | ||||||||||||||||||||||||||||||||||||||||||||
19-95% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 43 | Discounted cash flows | Swap rates | 2-3% | 2% | |||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liabilities Measured at Fair Value on Recurring Basis Quantitative Information | The following table presents the significant unobservable inputs relied upon to determine the fair values of our recurring Level 3 financial instruments. We utilize multiple third-party pricing services to obtain fair value measures for our securities. Several of our third-party pricing services are only able to provide unobservable input information for a limited number of securities due to software licensing restrictions. Other third-party pricing services are able to provide unobservable input information for all securities for which they provide a valuation. As a result, the unobservable input information for the securities available for sale presented below represents a composite summary of all information we are able to obtain for a majority of our securities. The unobservable input information for all other Level 3 financial instruments is based on the assumptions used in our internal valuation models. | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.3: Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at March 31, | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
2015 | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
Techniques | Inputs | ||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 555 | Discounted cash flows (3rd party pricing) | Yield | 1-22% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-22% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 59% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 174 | Discounted cash flows (3rd party pricing) | Yield | 1-2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 7 | Discounted cash flows (3rd party pricing) | Yield | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0% | 0% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1% | 1% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30% | 30% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 190 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 9-20% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 14% | 14% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1500 bps | 489 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.45 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 73 | Discounted cash flows | Swap rates | 2% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 223 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 24-84 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-11% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-11% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-6% | ||||||||||||||||||||||||||||||||||||||||||||
16-91% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 48 | Discounted cash flows | Swap rates | 2% | 2% | |||||||||||||||||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value at | Significant | Significant | Range | Weighted | ||||||||||||||||||||||||||||||||||||||||
December 31, | Valuation | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||
2014 | Techniques | Inputs | |||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||
RMBS | $ | 561 | Discounted cash flows (3rd party pricing) | Yield | 0-18% | 6% | |||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-23% | 4% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 0-15% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 0-85% | 55% | |||||||||||||||||||||||||||||||||||||||||||
CMBS | 228 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 1% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-100% | 5% | |||||||||||||||||||||||||||||||||||||||||||
Other ABS | 65 | Discounted cash flows (3rd party pricing) | Yield | 2-7% | 5% | ||||||||||||||||||||||||||||||||||||||||
Constant prepayment rate | 0-3% | 2% | |||||||||||||||||||||||||||||||||||||||||||
Default rate | 1-10% | 7% | |||||||||||||||||||||||||||||||||||||||||||
Loss severity | 30-88% | 71% | |||||||||||||||||||||||||||||||||||||||||||
U.S. government guaranteed debt and other securities | 351 | Discounted cash flows (3rd party pricing) | Yield | 1-4% | 3% | ||||||||||||||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||||||||||||||
Consumer MSRs | 53 | Discounted cash flows | Total prepayment rate | 12-27% | 18% | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 12% | 12% | |||||||||||||||||||||||||||||||||||||||||||
Option Adjusted Spread rate | 435-1,500 bps | 478 bps | |||||||||||||||||||||||||||||||||||||||||||
Servicing cost ($ per loan) | $93.18-$208.70 | $100.63 | |||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | 66 | Discounted cash flows | Swap rates | 2-3% | 2% | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitization(2) | 221 | Discounted cash flows | Life of receivables (months) Constant prepayment rate | 25-72 | N/A | ||||||||||||||||||||||||||||||||||||||||
Discount rate | 2-13% | ||||||||||||||||||||||||||||||||||||||||||||
Default rate | 4-9% | ||||||||||||||||||||||||||||||||||||||||||||
Loss severity | 2-8% | ||||||||||||||||||||||||||||||||||||||||||||
19-95% | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1) | $ | 43 | Discounted cash flows | Swap rates | 2-3% | 2% | |||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | All level 3 derivative assets and liabilities are presented on a gross basis and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. | ||||||||||||||||||||||||||||||||||||||||||||
(2) | Due to the nature of the various mortgage securitization structures in which we have retained interests, it is not meaningful to present a consolidated weighted average for the significant unobservable inputs. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the carrying amount of the assets measured at fair value on a nonrecurring basis and still held as of March 31, 2015 and December 31, 2014, and for which a nonrecurring fair value measurement was recorded during the three and twelve months then ended: | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.4: Nonrecurring Fair Value Measurements Related to Assets Still Held at Period End | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 0 | $ | 0 | $ | 63 | $ | 63 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | 15 | 0 | 15 | |||||||||||||||||||||||||||||||||||||||||
Other assets(1) | 0 | 0 | 28 | 28 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 15 | $ | 91 | $ | 106 | |||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value Hierarchy | Total | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | 0 | $ | 0 | $ | 121 | $ | 121 | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | 34 | 0 | 34 | |||||||||||||||||||||||||||||||||||||||||
Other assets(1) | 0 | 0 | 65 | 65 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 34 | $ | 186 | $ | 220 | |||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Includes foreclosed property and repossessed assets of $28 million as of March 31, 2015, compared to foreclosed property and repossessed assets of $60 million and long-lived assets held for sale of $5 million as of December 31, 2014. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis | The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that are still held at March 31, 2015 and 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.5: Nonrecurring Fair Value Measurements Included in Earnings Related to Assets Still Held at Period End | |||||||||||||||||||||||||||||||||||||||||||||
Total Gains (Losses) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for investment | $ | (5 | ) | $ | (9 | ) | |||||||||||||||||||||||||||||||||||||||
Loans held for sale | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Other assets(1) | (4 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | $ | (9 | ) | $ | (13 | ) | |||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
(1) | Includes losses related to foreclosed property and repossessed assets and long-lived assets held for sale. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Financial Instruments | The following table presents the fair value of financial instruments, whether or not recognized on the consolidated balance sheets at fair value, as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||||||||||||||
Table 12.6: Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2015 | Estimated Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 8,891 | $ | 8,891 | $ | 8,891 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Restricted cash for securitization investors | 234 | 234 | 234 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale | 39,321 | 39,321 | 4,552 | 33,843 | 926 | ||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | 23,241 | 24,653 | 199 | 24,197 | 257 | ||||||||||||||||||||||||||||||||||||||||
Net loans held for investment | 199,573 | 202,522 | 0 | 0 | 202,522 | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,331 | 1,358 | 0 | 1,358 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest receivable(1) | 1,078 | 1,078 | 0 | 1,078 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivative assets(1)(2) | 1,939 | 1,939 | 3 | 1,863 | 73 | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 223 | 223 | 0 | 0 | 223 | ||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 25,232 | $ | 25,232 | $ | 25,232 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 185,208 | 180,037 | 0 | 11,253 | 168,784 | ||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 12,717 | 12,826 | 0 | 12,826 | 0 | ||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 20,599 | 20,967 | 0 | 20,967 | 0 | ||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 933 | 933 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 6,820 | 6,823 | 0 | 6,823 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest payable(1) | 195 | 195 | 0 | 195 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivative liabilities(1)(2) | 422 | 422 | 3 | 371 | 48 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Estimated Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Carrying | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Amount | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 7,242 | $ | 7,242 | $ | 7,242 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Restricted cash for securitization investors | 234 | 234 | 234 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Securities available for sale | 39,508 | 39,508 | 4,228 | 34,075 | 1,205 | ||||||||||||||||||||||||||||||||||||||||
Securities held to maturity | 22,500 | 23,634 | 0 | 23,503 | 131 | ||||||||||||||||||||||||||||||||||||||||
Net loans held for investment | 203,933 | 207,104 | 0 | 0 | 207,104 | ||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 626 | 650 | 0 | 650 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest receivable(1) | 1,079 | 1,079 | 0 | 1,079 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivatives assets(1)(2) | 1,452 | 1,452 | 4 | 1,382 | 66 | ||||||||||||||||||||||||||||||||||||||||
Retained interests in securitizations | 221 | 221 | 0 | 0 | 221 | ||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 25,081 | $ | 25,081 | $ | 25,081 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits | 180,467 | 174,074 | 0 | 11,668 | 162,406 | ||||||||||||||||||||||||||||||||||||||||
Securitized debt obligations | 11,624 | 11,745 | 0 | 11,745 | 0 | ||||||||||||||||||||||||||||||||||||||||
Senior and subordinated notes | 18,684 | 19,083 | 0 | 19,083 | 0 | ||||||||||||||||||||||||||||||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 880 | 880 | 880 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Other borrowings | 17,269 | 17,275 | 0 | 17,275 | 0 | ||||||||||||||||||||||||||||||||||||||||
Interest payable(1) | 254 | 254 | 0 | 254 | 0 | ||||||||||||||||||||||||||||||||||||||||
Derivatives liabilities(1)(2) | 339 | 339 | 3 | 293 | 43 | ||||||||||||||||||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||||||||||||||||||
-1 | As of January 1, 2015, we changed our accounting principle to move from a gross basis of presentation to a net basis, for presenting qualifying derivative assets and liabilities, as well as the related right to reclaim cash collateral or obligation to return cash collateral. Prior period results have been recast to conform this presentation. See additional information in “Note 1—Summary of Significant Accounting Policies.” | ||||||||||||||||||||||||||||||||||||||||||||
(2) | The balances represent gross derivative amounts and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See additional information in “Note 9—Derivative Instruments and Hedging Activities” for additional information. |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Schedule of Segment Results and Reconciliation | The following tables present our business segment results for the three months ended March 31, 2015 and 2014, selected balance sheet data as of March 31, 2015 and 2014, and a reconciliation of our total business segment results to our reported consolidated income from continuing operations, assets and deposits. Prior period amounts have been recast to conform to the current period. | ||||||||||||||||||||
Table 13.1: Segment Results and Reconciliation | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial | Other | Consolidated | ||||||||||||||||
Card | Banking | Banking | Total | ||||||||||||||||||
Net interest income | $ | 2,666 | $ | 1,434 | $ | 461 | $ | 15 | $ | 4,576 | |||||||||||
Non-interest income | 816 | 158 | 114 | (17 | ) | 1,071 | |||||||||||||||
Total net revenue (loss) | 3,482 | 1,592 | 575 | (2 | ) | 5,647 | |||||||||||||||
Provision for credit losses | 669 | 206 | 60 | 0 | 935 | ||||||||||||||||
Non-interest expense: | |||||||||||||||||||||
Amortization of intangibles: | |||||||||||||||||||||
PCCR intangible amortization | 84 | 0 | 0 | 0 | 84 | ||||||||||||||||
Core deposit intangible amortization | 0 | 22 | 4 | 0 | 26 | ||||||||||||||||
Total PCCR and core deposit intangible amortization | 84 | 22 | 4 | 0 | 110 | ||||||||||||||||
Other non-interest expense | 1,692 | 948 | 268 | 31 | 2,939 | ||||||||||||||||
Total non-interest expense | 1,776 | 970 | 272 | 31 | 3,049 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,037 | 416 | 243 | (33 | ) | 1,663 | |||||||||||||||
Income tax provision (benefit) | 369 | 150 | 88 | (78 | ) | 529 | |||||||||||||||
Income from continuing operations, net of tax | $ | 668 | $ | 266 | $ | 155 | $ | 45 | $ | 1,134 | |||||||||||
Loans held for investment | $ | 81,754 | $ | 71,379 | $ | 50,741 | $ | 104 | $ | 203,978 | |||||||||||
Deposits | 0 | 172,502 | 32,575 | 5,363 | 210,440 | ||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | Credit | Consumer | Commercial | Other | Consolidated | ||||||||||||||||
Card | Banking | Banking | Total | ||||||||||||||||||
Net interest income (expense) | $ | 2,525 | $ | 1,433 | $ | 421 | $ | (29 | ) | $ | 4,350 | ||||||||||
Non-interest income | 785 | 150 | 87 | (2 | ) | 1,020 | |||||||||||||||
Total net revenue (loss) | 3,310 | 1,583 | 508 | (31 | ) | 5,370 | |||||||||||||||
Provision (benefit) for credit losses | 558 | 140 | 40 | (3 | ) | 735 | |||||||||||||||
Non-interest expense: | |||||||||||||||||||||
Amortization of intangibles: | |||||||||||||||||||||
PCCR intangible amortization | 98 | 0 | 0 | 0 | 98 | ||||||||||||||||
Core deposit intangible amortization | 0 | 30 | 6 | 0 | 36 | ||||||||||||||||
Total PCCR and core deposit intangible amortization | 98 | 30 | 6 | 0 | 134 | ||||||||||||||||
Other non-interest expense | 1,628 | 900 | 249 | 21 | 2,798 | ||||||||||||||||
Total non-interest expense | 1,726 | 930 | 255 | 21 | 2,932 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,026 | 513 | 213 | (49 | ) | 1,703 | |||||||||||||||
Income tax provision (benefit) | 358 | 183 | 76 | (38 | ) | 579 | |||||||||||||||
Income (loss) from continuing operations, net of tax | $ | 668 | $ | 330 | $ | 137 | $ | (11 | ) | $ | 1,124 | ||||||||||
Loans held for investment | $ | 75,850 | $ | 70,727 | $ | 46,230 | $ | 134 | $ | 192,941 | |||||||||||
Deposits | 0 | 171,529 | 31,485 | 5,310 | 208,324 | ||||||||||||||||
Commitments_Contingencies_Guar1
Commitments, Contingencies, Guarantees, and Others (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Unpaid Principal Balance of Mortgage Loans Originated and Sold to Third Parties Based on Category of Purchaser | The following table presents the original principal balance of mortgage loan originations, by vintage for 2005 through 2008, for the three general categories of purchasers of mortgage loans and the estimated unpaid principal balance as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||
Table 14.1: Unpaid Principal Balance of Mortgage Loans Originated and Sold to Third Parties Based on Category of Purchaser | |||||||||||||||||||||||||||||
Estimated Unpaid Principal Balance | Original Principal Balance | ||||||||||||||||||||||||||||
(Dollars in billions) | March 31, 2015 | December 31, 2014 | Total | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
GSEs | $ | 2 | $ | 3 | $ | 11 | $ | 1 | $ | 4 | $ | 3 | $ | 3 | |||||||||||||||
Insured Securitizations | 4 | 4 | 20 | 0 | 2 | 8 | 10 | ||||||||||||||||||||||
Uninsured Securitizations and Other | 16 | 16 | 80 | 3 | 15 | 30 | 32 | ||||||||||||||||||||||
Total | $ | 22 | $ | 23 | $ | 111 | $ | 4 | $ | 21 | $ | 41 | $ | 45 | |||||||||||||||
Schedule of Open Claims in Pipeline | The following table presents information on pending repurchase requests by counterparty category and timing of initial repurchase request. The amounts presented are based on original loan principal balances. | ||||||||||||||||||||||||||||
Table 14.2: Open Pipeline All Vintages (all entities)(1) | |||||||||||||||||||||||||||||
(Dollars in millions) | GSEs | Insured | Uninsured | Total | |||||||||||||||||||||||||
Securitizations | Securitizations | ||||||||||||||||||||||||||||
and Other | |||||||||||||||||||||||||||||
Open claims as of December 31, 2013 | $ | 89 | $ | 1,614 | $ | 1,122 | $ | 2,825 | |||||||||||||||||||||
Gross new demands received | 22 | 0 | 742 | 764 | |||||||||||||||||||||||||
Loans repurchased/made whole | (31 | ) | 0 | (5 | ) | (36 | ) | ||||||||||||||||||||||
Demands rescinded | (64 | ) | (965 | ) | (12 | ) | (1,041 | ) | |||||||||||||||||||||
Open claims as of December 31, 2014 | $ | 16 | $ | 649 | $ | 1,847 | $ | 2,512 | |||||||||||||||||||||
Gross new demands received | 6 | 0 | 1 | 7 | |||||||||||||||||||||||||
Loans repurchased/made whole | (3 | ) | 0 | (1 | ) | (4 | ) | ||||||||||||||||||||||
Demands rescinded | (2 | ) | (1 | ) | (8 | ) | (11 | ) | |||||||||||||||||||||
Open claims as of March 31, 2015 | $ | 17 | $ | 648 | $ | 1,839 | $ | 2,504 | |||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | The open pipeline includes all repurchase requests ever received by our subsidiaries where either the requesting party has not formally rescinded the repurchase request and where our subsidiary has not agreed to either repurchase the loan at issue or make the requesting party whole with respect to its losses. Accordingly, repurchase requests denied by our subsidiaries and not pursued by the counterparty remain in the open pipeline, with the exception of certain aged repurchase requests submitted by parties without contractual standing to pursue such requests, which may be removed from the pipeline. Finally, the amounts reflected in this chart are the original principal balance amounts of the mortgage loans at issue and do not correspond to the losses our subsidiary would incur upon the repurchase of these loans. | ||||||||||||||||||||||||||||
Schedule of Changes in Representation and Warranty Reserve | The following table summarizes changes in our representation and warranty reserve for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Table 14.3: Changes in Representation and Warranty Reserve(1) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(Dollars in millions) | 2015 | 2014 | |||||||||||||||||||||||||||
Representation and warranty reserve, beginning of period | $ | 731 | $ | 1,172 | |||||||||||||||||||||||||
Provision (benefit) for mortgage representation and warranty losses: | |||||||||||||||||||||||||||||
Recorded in continuing operations | 1 | 14 | |||||||||||||||||||||||||||
Recorded in discontinued operations | (19 | ) | (47 | ) | |||||||||||||||||||||||||
Total benefit for mortgage representation and warranty losses | (18 | ) | (33 | ) | |||||||||||||||||||||||||
Net realized losses | (40 | ) | (11 | ) | |||||||||||||||||||||||||
Representation and warranty reserve, end of period | $ | 673 | $ | 1,128 | |||||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Reported on our consolidated balance sheets as a component of other liabilities. | ||||||||||||||||||||||||||||
Schedule of Allocation of Representation and Warranty Reserves | The following table summarizes the allocation of our representation and warranty reserve as March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Table 14.4: Allocation of Representation and Warranty Reserve | |||||||||||||||||||||||||||||
Reserve Liability | Loans Sold | ||||||||||||||||||||||||||||
(Dollars in millions, except for loans sold) | March 31, 2015 | December 31, 2014 | 2005 to 2008(1) | ||||||||||||||||||||||||||
Selected period-end data: | |||||||||||||||||||||||||||||
GSEs and Active Insured Securitizations | $ | 492 | $ | 499 | $ | 27 | |||||||||||||||||||||||
Inactive Insured Securitizations and Others | 181 | 232 | 84 | ||||||||||||||||||||||||||
Total(2) | $ | 673 | $ | 731 | $ | 111 | |||||||||||||||||||||||
__________ | |||||||||||||||||||||||||||||
(1) | Reflects, in billions, the total original principal balance of loans originated by our subsidiaries and sold to third-party investors between 2005 and 2008. | ||||||||||||||||||||||||||||
(2) | The total reserve liability includes an immaterial amount related to loans that were originated after 2008. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policieis - Change in Accounting Principle (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Interest receivable | ($1,078) | ($1,079) |
Other assets | -14,893 | -15,382 |
Total Assets | -306,224 | -308,167 |
Interest payable | -195 | -254 |
Other liabilities | -8,830 | -8,855 |
Total liabilities | 260,494 | 263,114 |
Restatement Adjustment [Member] | Derivative Presentation Changed from Gross Basis to Net Basis [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Interest receivable | 356 | |
Other assets | 331 | |
Total Assets | 687 | |
Interest payable | 63 | |
Other liabilities | 624 | |
Total liabilities | ($687) |
Discontinued_Operations_Summar
Discontinued Operations - Summary of Results from Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $19 | $30 |
Wholesale Mortgage Banking Unit | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Non-interest income, net | 30 | 47 |
Income from discontinued operations before income taxes | 30 | 47 |
Income tax provision | 11 | 17 |
Income from discontinued operations, net of tax | $19 | $30 |
Investment_Securities_Addition
Investment Securities - Additional Information (Details) (USD $) | 0 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of sale securities exceeding amortized cost over fair value | 400 | |
Amortized cost exceeding fair value | 128,000,000 | 237,000,000 |
Difference in amortized cost and fair value of securities that had been in a loss position for 12 months or longer | 108,000,000 | 206,000,000 |
Securities held to maturity | 10 | |
Fair value of securities pledged | 3,000,000,000 | 3,500,000,000 |
Carrying value of securities pledged | 9,100,000,000 | 9,000,000,000 |
Encumbered amount of securities pledged as collateral | 11,000,000,000 | 10,600,000,000 |
Fair value of securities pledged, accepted | 137,000,000 | 91,000,000 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 3,000,000 | 6,000,000 |
Non-agency RMBS and CMBS, Non-agency ABS and Other Securities | Gross Unrealized Losses on Available-for-sale Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of portfolio | 13.00% | |
Investment Securities Portfolio | US Treasury and Government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Percentage of portfolio | 87.00% | 86.00% |
Non-agency RMBS and CMBS, Non-agency ABS and Other Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost exceeding fair value | 16,000,000 |
Investment_Securities_Schedule
Investment Securities - Schedule of Investment Portfolio (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Securities available for sale, at fair value | $39,321 | $39,508 |
Securities held to maturity, at carrying value | 23,241 | 22,500 |
Total investments | $62,562 | $62,008 |
Investment_Securities_Schedule1
Investment Securities - Schedule of Available-for-Sale Securities (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Investment securities available for sale: | ||
Total Amortized Cost | 38,481 | 38,859 |
Gross Unrealized Gains | 968 | 886 |
Gross Unrealized Losses | -128 | -237 |
Securities available for sale, at fair value | 39,321 | 39,508 |
Collateralized by Credit Card Loans | Other Asset-backed Securities Portfolio | ||
Investment securities available for sale: | ||
Percentage of portfolio | 59.00% | 56.00% |
Auto Dealer Floor Plan Inventory Loans and Leases | Other Asset-backed Securities Portfolio | ||
Investment securities available for sale: | ||
Percentage of portfolio | 18.00% | 16.00% |
U.S. Treasury securities | ||
Investment securities available for sale: | ||
Total Amortized Cost | 4,411 | 4,114 |
Gross Unrealized Gains | 29 | 5 |
Gross Unrealized Losses | 0 | -1 |
Securities available for sale, at fair value | 4,440 | 4,118 |
Corporate debt securities guaranteed by U.S. government agencies | ||
Investment securities available for sale: | ||
Total Amortized Cost | 600 | 819 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | -5 | -20 |
Securities available for sale, at fair value | 598 | 800 |
RMBS | ||
Investment securities available for sale: | ||
Total Amortized Cost | 25,287 | 24,742 |
Gross Unrealized Gains | 830 | 757 |
Gross Unrealized Losses | -69 | -118 |
Securities available for sale, at fair value | 26,048 | 25,381 |
RMBS | Agency | ||
Investment securities available for sale: | ||
Total Amortized Cost | 22,344 | 21,804 |
Gross Unrealized Gains | 327 | 296 |
Gross Unrealized Losses | -64 | -105 |
Securities available for sale, at fair value | 22,607 | 21,995 |
RMBS | Non-Agency | ||
Investment securities available for sale: | ||
Total Amortized Cost | 2,943 | 2,938 |
Gross Unrealized Gains | 503 | 461 |
Gross Unrealized Losses | -5 | -13 |
Securities available for sale, at fair value | 3,441 | 3,386 |
Non-credit OTTI losses related to non-agency RMBS | 5 | 8 |
CMBS | ||
Investment securities available for sale: | ||
Total Amortized Cost | 5,383 | 5,531 |
Gross Unrealized Gains | 93 | 63 |
Gross Unrealized Losses | -47 | -75 |
Securities available for sale, at fair value | 5,429 | 5,519 |
CMBS | Agency | ||
Investment securities available for sale: | ||
Total Amortized Cost | 3,672 | 3,751 |
Gross Unrealized Gains | 47 | 32 |
Gross Unrealized Losses | -43 | -60 |
Securities available for sale, at fair value | 3,676 | 3,723 |
CMBS | Non-Agency | ||
Investment securities available for sale: | ||
Total Amortized Cost | 1,711 | 1,780 |
Gross Unrealized Gains | 46 | 31 |
Gross Unrealized Losses | -4 | -15 |
Securities available for sale, at fair value | 1,753 | 1,796 |
Other ABS | ||
Investment securities available for sale: | ||
Total Amortized Cost | 2,025 | 2,618 |
Gross Unrealized Gains | 6 | 54 |
Gross Unrealized Losses | -3 | -10 |
Securities available for sale, at fair value | 2,028 | 2,662 |
Other securities | ||
Investment securities available for sale: | ||
Total Amortized Cost | 775 | 1,035 |
Gross Unrealized Gains | 7 | 6 |
Gross Unrealized Losses | -4 | -13 |
Securities available for sale, at fair value | 778 | 1,028 |
Investment_Securities_Investme
Investment Securities - Investment Securities Held to Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $24,512 | $23,804 |
Unrealized Losses Recorded in AOCI | -1,271 | -1,304 |
Carrying Value | 23,241 | 22,500 |
Gross Unrealized Gains | 1,415 | 1,140 |
Gross Unrealized Losses | -3 | -6 |
Fair Value | 24,653 | 23,634 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 198 | 0 |
Unrealized Losses Recorded in AOCI | 0 | 0 |
Carrying Value | 198 | 0 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 199 | 0 |
Agency | RMBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 21,639 | 21,347 |
Unrealized Losses Recorded in AOCI | -1,155 | -1,184 |
Carrying Value | 20,484 | 20,163 |
Gross Unrealized Gains | 1,282 | 1,047 |
Gross Unrealized Losses | -3 | 0 |
Fair Value | 21,763 | 21,210 |
Agency | CMBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,675 | 2,457 |
Unrealized Losses Recorded in AOCI | -116 | -120 |
Carrying Value | 2,559 | 2,337 |
Gross Unrealized Gains | 132 | 93 |
Gross Unrealized Losses | 0 | -6 |
Fair Value | $2,691 | $2,424 |
Investment_Securities_Schedule2
Investment Securities - Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $5,636 | $7,382 |
Less than 12 Months, Gross Unrealized Losses | -20 | -31 |
12 Months or Longer, Fair Value | 6,557 | 8,871 |
12 Months or Longer, Gross Unrealized Losses | -108 | -206 |
Total Fair Value | 12,193 | 16,253 |
Total Gross Unrealized Losses | -128 | -237 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 201 | 1,499 |
Less than 12 Months, Gross Unrealized Losses | 0 | -1 |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Losses | 0 | 0 |
Total Fair Value | 201 | 1,499 |
Total Gross Unrealized Losses | 0 | -1 |
Corporate debt securities guaranteed by U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 155 | 113 |
Less than 12 Months, Gross Unrealized Losses | -1 | -2 |
12 Months or Longer, Fair Value | 307 | 557 |
12 Months or Longer, Gross Unrealized Losses | -4 | -18 |
Total Fair Value | 462 | 670 |
Total Gross Unrealized Losses | -5 | -20 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 4,433 | 4,329 |
Less than 12 Months, Gross Unrealized Losses | -16 | -24 |
12 Months or Longer, Fair Value | 3,611 | 4,503 |
12 Months or Longer, Gross Unrealized Losses | -53 | -94 |
Total Fair Value | 8,044 | 8,832 |
Total Gross Unrealized Losses | -69 | -118 |
RMBS | Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 4,288 | 3,917 |
Less than 12 Months, Gross Unrealized Losses | -14 | -15 |
12 Months or Longer, Fair Value | 3,549 | 4,413 |
12 Months or Longer, Gross Unrealized Losses | -50 | -90 |
Total Fair Value | 7,837 | 8,330 |
Total Gross Unrealized Losses | -64 | -105 |
RMBS | Non-Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 145 | 412 |
Less than 12 Months, Gross Unrealized Losses | -2 | -9 |
12 Months or Longer, Fair Value | 62 | 90 |
12 Months or Longer, Gross Unrealized Losses | -3 | -4 |
Total Fair Value | 207 | 502 |
Total Gross Unrealized Losses | -5 | -13 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 311 | 552 |
Less than 12 Months, Gross Unrealized Losses | -1 | -3 |
12 Months or Longer, Fair Value | 1,981 | 2,674 |
12 Months or Longer, Gross Unrealized Losses | -46 | -72 |
Total Fair Value | 2,292 | 3,226 |
Total Gross Unrealized Losses | -47 | -75 |
CMBS | Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 158 | 294 |
Less than 12 Months, Gross Unrealized Losses | 0 | -2 |
12 Months or Longer, Fair Value | 1,669 | 1,993 |
12 Months or Longer, Gross Unrealized Losses | -43 | -58 |
Total Fair Value | 1,827 | 2,287 |
Total Gross Unrealized Losses | -43 | -60 |
CMBS | Non-Agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 153 | 258 |
Less than 12 Months, Gross Unrealized Losses | -1 | -1 |
12 Months or Longer, Fair Value | 312 | 681 |
12 Months or Longer, Gross Unrealized Losses | -3 | -14 |
Total Fair Value | 465 | 939 |
Total Gross Unrealized Losses | -4 | -15 |
Other ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 376 | 783 |
Less than 12 Months, Gross Unrealized Losses | 0 | -1 |
12 Months or Longer, Fair Value | 474 | 586 |
12 Months or Longer, Gross Unrealized Losses | -3 | -9 |
Total Fair Value | 850 | 1,369 |
Total Gross Unrealized Losses | -3 | -10 |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 160 | 106 |
Less than 12 Months, Gross Unrealized Losses | -2 | 0 |
12 Months or Longer, Fair Value | 184 | 551 |
12 Months or Longer, Gross Unrealized Losses | -2 | -13 |
Total Fair Value | 344 | 657 |
Total Gross Unrealized Losses | ($4) | ($13) |
Investment_Securities_Schedule3
Investment Securities - Schedule of Contractual Maturities for Available for Sale Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Amortized Cost | ||
Due in 1 year or less | $662 | |
Due after 1 year through 5 years | 6,526 | |
Due after 5 years through 10 years | 2,509 | |
Due after 10 years | 28,784 | |
Total Amortized Cost | 38,481 | 38,859 |
Fair Value | ||
Due in 1 year or less | 662 | |
Due after 1 year through 5 years | 6,571 | |
Due after 5 years through 10 years | 2,554 | |
Due after 10 years | 29,534 | |
Total Fair Value | $39,321 |
Investment_Securities_Schedule4
Investment Securities - Schedule of Contractual Maturities of Securities Held to Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | $198 | |
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value | 199 | |
Carrying Value | ||
Due after 5 years through 10 years | 1,146 | |
Due after 10 years | 21,897 | |
Carrying Value | 23,241 | 22,500 |
Fair Value | ||
Due after 5 years through 10 years | 1,244 | |
Due after 10 years | 23,210 | |
Fair Value | $24,653 | $23,634 |
Investment_Securities_Schedule5
Investment Securities - Schedule of Expected Maturities and Weighted Average Yields of Investment Securities by Major Security Type (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Securities available for sale | ||
Due in 1 Year or Less | $1,649 | |
Due 1 Year through 5 Years | 24,770 | |
Due 5 Years through 10 Years | 11,968 | |
Due 10 Years | 934 | |
Securities available for sale | 39,321 | 39,508 |
Amortized cost of securities available for sale | ||
Due in 1 Year or Less | 1,651 | |
Due 1 Year through 5 Years | 24,431 | |
Due 5 Years through 10 Years | 11,581 | |
Due 10 Years | 818 | |
Total Amortized Cost | 38,481 | 38,859 |
Weighted average yield for securities available for sale | ||
Due in 1 Year or Less | 0.97% | |
Due 1 Year through 5 Years | 2.17% | |
Due 5 Years through 10 Years | 3.25% | |
Due 10 Years | 9.36% | |
Total weighted average yield | 2.60% | |
Carrying value of securities held to maturity | ||
Due in 1 Year or Less | 29 | |
Due 1 Year through 5 Years | 2,360 | |
Due 5 Years through 10 Years | 18,307 | |
Due 10 Years | 2,545 | |
Carrying Value | 23,241 | 22,500 |
Fair value of securities held to maturity | ||
Due in 1 Year or Less | 29 | |
Due 1 Year through 5 Years | 2,446 | |
Due 5 Years through 10 Years | 19,385 | |
Due 10 Years | 2,793 | |
Fair Value | 24,653 | 23,634 |
Weighted average yield for securities held to maturity | ||
Due in 1 Year or Less | 4.59% | |
Due 1 Year through 5 Years | 2.59% | |
Due 5 Years through 10 Years | 2.64% | |
Due 10 Years | 3.52% | |
Total weighted average yield | 2.73% | |
U.S. Treasury securities | ||
Carrying value of securities held to maturity | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 198 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Carrying Value | 198 | 0 |
Fair value of securities held to maturity | ||
Fair Value | 199 | 0 |
U.S. Treasury securities | ||
Securities available for sale | ||
Due in 1 Year or Less | 251 | |
Due 1 Year through 5 Years | 4,189 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Securities available for sale | 4,440 | 4,118 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 4,411 | 4,114 |
Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 434 | |
Due 5 Years through 10 Years | 151 | |
Due 10 Years | 13 | |
Securities available for sale | 598 | 800 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 600 | 819 |
RMBS | ||
Securities available for sale | ||
Due in 1 Year or Less | 379 | |
Due 1 Year through 5 Years | 16,353 | |
Due 5 Years through 10 Years | 8,504 | |
Due 10 Years | 812 | |
Securities available for sale | 26,048 | 25,381 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 25,287 | 24,742 |
RMBS | Agency | ||
Securities available for sale | ||
Due in 1 Year or Less | 369 | |
Due 1 Year through 5 Years | 15,422 | |
Due 5 Years through 10 Years | 6,816 | |
Due 10 Years | 0 | |
Securities available for sale | 22,607 | 21,995 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 22,344 | 21,804 |
Carrying value of securities held to maturity | ||
Due in 1 Year or Less | 29 | |
Due 1 Year through 5 Years | 2,097 | |
Due 5 Years through 10 Years | 16,003 | |
Due 10 Years | 2,355 | |
Carrying Value | 20,484 | 20,163 |
Fair value of securities held to maturity | ||
Fair Value | 21,763 | 21,210 |
RMBS | Non-Agency | ||
Securities available for sale | ||
Due in 1 Year or Less | 10 | |
Due 1 Year through 5 Years | 931 | |
Due 5 Years through 10 Years | 1,688 | |
Due 10 Years | 812 | |
Securities available for sale | 3,441 | 3,386 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 2,943 | 2,938 |
CMBS | ||
Securities available for sale | ||
Due in 1 Year or Less | 264 | |
Due 1 Year through 5 Years | 2,429 | |
Due 5 Years through 10 Years | 2,717 | |
Due 10 Years | 19 | |
Securities available for sale | 5,429 | 5,519 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 5,383 | 5,531 |
CMBS | Agency | ||
Securities available for sale | ||
Due in 1 Year or Less | 129 | |
Due 1 Year through 5 Years | 2,005 | |
Due 5 Years through 10 Years | 1,523 | |
Due 10 Years | 19 | |
Securities available for sale | 3,676 | 3,723 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 3,672 | 3,751 |
Carrying value of securities held to maturity | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 65 | |
Due 5 Years through 10 Years | 2,304 | |
Due 10 Years | 190 | |
Carrying Value | 2,559 | 2,337 |
Fair value of securities held to maturity | ||
Fair Value | 2,691 | 2,424 |
CMBS | Non-Agency | ||
Securities available for sale | ||
Due in 1 Year or Less | 135 | |
Due 1 Year through 5 Years | 424 | |
Due 5 Years through 10 Years | 1,194 | |
Due 10 Years | 0 | |
Securities available for sale | 1,753 | 1,796 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 1,711 | 1,780 |
Other ABS | ||
Securities available for sale | ||
Due in 1 Year or Less | 656 | |
Due 1 Year through 5 Years | 1,177 | |
Due 5 Years through 10 Years | 195 | |
Due 10 Years | 0 | |
Securities available for sale | 2,028 | 2,662 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | 2,025 | 2,618 |
Other securities | ||
Securities available for sale | ||
Due in 1 Year or Less | 99 | |
Due 1 Year through 5 Years | 188 | |
Due 5 Years through 10 Years | 401 | |
Due 10 Years | 90 | |
Securities available for sale | 778 | 1,028 |
Amortized cost of securities available for sale | ||
Total Amortized Cost | $775 | $1,035 |
Investment_Securities_Schedule6
Investment Securities - Schedule of Credit Losses Related to Debt Securities Recognized in Earnings (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Credit loss component, beginning of period | $175 | $160 |
Additions: | ||
Initial credit impairment | 5 | 1 |
Subsequent credit impairment | 10 | 4 |
Total additions | 15 | 5 |
Credit loss component, end of period | $190 | $165 |
Investment_Securities_Schedule7
Investment Securities - Schedule of Gross Realized Gains and Losses on Available-for-Sale Securities and OTTI Recognized in Earnings (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Realized gains (losses): | ||
Gross realized gains | $9 | $32 |
Gross realized losses | -7 | -19 |
Net realized gains | 2 | 13 |
OTTI recognized in earnings: | ||
Credit-related OTTI recognized in earnings | -15 | -5 |
Total OTTI recognized in earnings | -15 | -5 |
Net securities (losses) gains | -13 | 8 |
Proceeds from sales | $1,342 | $2,976 |
Investment_Securities_Schedule8
Investment Securities - Schedule of Outstanding Contractual Balance and Carrying Value of Acquired Credit-Impaired Debt Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Outstanding Balance and Carrying Value of Acquired Securities | ||
Outstanding balance | $4,076 | $4,259 |
Carrying value | 2,787 | 2,839 |
Amortized cost | $2,307 | $2,354 |
Investment_Securities_Schedule9
Investment Securities - Schedule of Changes in Accretable Yield of Acquired Securities (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Changes in Accretable Yield of Acquired Securities | |
Accretable yield beginning balance | $1,250 |
Accretion recognized in earnings | -61 |
Reduction due to payoffs, disposals, transfers and other | -1 |
Net reclassifications from (to) nonaccretable difference | -17 |
Accretable yield ending balance | $1,171 |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Acquired loans accounted for based on expected cash flows | $22,334 | $23,500 |
Loans held for sale | 1,331 | 626 |
Mortgage loans in process of foreclosure | 583 | |
Troubled debt restructurings included in impaired loans | 1,644 | 1,652 |
Home loan | Other Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate acquired through foreclosure | 133 | 131 |
Consumer Banking | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings included in impaired loans | 1,000 | 1,000 |
Commercial Banking | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings included in impaired loans | 186 | 194 |
Commercial Banking | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Acquired loans accounted for based on expected cash flows | 160 | 192 |
Commercial Banking | Criticized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Minimum loan amount reviewed quarterly by management for further deterioration | 1 | |
Commercial Banking | Noncriticized | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Minimum loan amount requiring annual review | 1 | |
Credit Card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Acquired loans accounted for based on expected cash flows | 21 | 23 |
Unfunded lending commitment | 296,600 | 292,900 |
Other Portfolio Segments, Excluding Credit Card | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded lending commitment | $22,700 | $23,600 |
Home Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Threshold Period Past Due for Entering Forclosure Process Status of Financing Receivables | 120 days |
Loans_Loan_Portfolio_Compositi
Loans - Loan Portfolio Composition and Aging Analysis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | $176,374 | $178,746 | |
30-59 Days | 2,384 | 2,841 | |
60-89 Days | 1,196 | 1,424 | |
Greater than 90 Days | 1,690 | 1,805 | |
Total Delinquent Loans | 5,270 | 6,070 | |
Acquired Loans | 22,334 | 23,500 | |
Total loans held for investment | 203,978 | 208,316 | 192,941 |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Current (as percent) | 86.47% | 85.81% | |
30-59 Days (as percent) | 1.17% | 1.36% | |
60-89 Days (as percent) | 0.58% | 0.68% | |
Greater than 90 Days (as percent) | 0.83% | 0.87% | |
Total Delinquent Loans (as percent) | 2.58% | 2.91% | |
Acquired Loans (as percent) | 10.95% | 11.28% | |
Total Loans (as percent) | 100.00% | 100.00% | |
Loans and Leases Receivable, Deferred Income | 1,000 | 1,100 | |
Credit Card | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 79,308 | 83,021 | |
30-59 Days | 739 | 904 | |
60-89 Days | 517 | 636 | |
Greater than 90 Days | 1,169 | 1,292 | |
Total Delinquent Loans | 2,425 | 2,832 | |
Acquired Loans | 21 | 23 | |
Total loans held for investment | 81,754 | 85,876 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Greater than 90 Days (as percent) | 1.43% | 1.50% | |
Total Delinquent Loans (as percent) | 2.97% | 3.30% | |
Credit Card | Domestic | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 71,947 | 75,143 | |
30-59 Days | 637 | 790 | |
60-89 Days | 456 | 567 | |
Greater than 90 Days | 1,070 | 1,181 | |
Total Delinquent Loans | 2,163 | 2,538 | |
Acquired Loans | 21 | 23 | |
Total loans held for investment | 74,131 | 77,704 | |
Credit Card | International | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 7,361 | 7,878 | |
30-59 Days | 102 | 114 | |
60-89 Days | 61 | 69 | |
Greater than 90 Days | 99 | 111 | |
Total Delinquent Loans | 262 | 294 | |
Acquired Loans | 0 | 0 | |
Total loans held for investment | 7,623 | 8,172 | |
Credit Card | Installment loans | Domestic | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 123 | 144 | |
Consumer Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 46,755 | 45,130 | |
30-59 Days | 1,580 | 1,825 | |
60-89 Days | 549 | 768 | |
Greater than 90 Days | 342 | 431 | |
Total Delinquent Loans | 2,471 | 3,024 | |
Acquired Loans | 22,153 | 23,285 | |
Total loans held for investment | 71,379 | 71,439 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Greater than 90 Days (as percent) | 0.48% | 0.60% | |
Total Delinquent Loans (as percent) | 3.46% | 4.23% | |
Consumer Banking | Auto | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 36,788 | 35,142 | |
30-59 Days | 1,514 | 1,751 | |
60-89 Days | 515 | 734 | |
Greater than 90 Days | 120 | 197 | |
Total Delinquent Loans | 2,149 | 2,682 | |
Acquired Loans | 0 | 0 | |
Total loans held for investment | 38,937 | 37,824 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Greater than 90 Days (as percent) | 0.31% | 0.52% | |
Total Delinquent Loans (as percent) | 5.52% | 7.09% | |
Consumer Banking | Home loan | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 6,509 | 6,492 | |
30-59 Days | 49 | 57 | |
60-89 Days | 25 | 27 | |
Greater than 90 Days | 208 | 218 | |
Total Delinquent Loans | 282 | 302 | |
Acquired Loans | 22,114 | 23,241 | |
Total loans held for investment | 28,905 | 30,035 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Greater than 90 Days (as percent) | 0.72% | 0.73% | |
Total Delinquent Loans (as percent) | 0.97% | 1.01% | |
Consumer Banking | Retail banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 3,458 | 3,496 | |
30-59 Days | 17 | 17 | |
60-89 Days | 9 | 7 | |
Greater than 90 Days | 14 | 16 | |
Total Delinquent Loans | 40 | 40 | |
Acquired Loans | 39 | 44 | |
Total loans held for investment | 3,537 | 3,580 | |
Financing Receivable, Recorded Investment, Aging, Percent of Total Loan [Abstract] | |||
Greater than 90 Days (as percent) | 0.40% | 0.44% | |
Total Delinquent Loans (as percent) | 1.12% | 1.11% | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 50,220 | 50,498 | |
30-59 Days | 61 | 109 | |
60-89 Days | 129 | 18 | |
Greater than 90 Days | 171 | 73 | |
Total Delinquent Loans | 361 | 200 | |
Acquired Loans | 160 | 192 | |
Total loans held for investment | 50,741 | 50,890 | |
Commercial Banking | Total commercial lending | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 49,495 | 49,727 | |
30-59 Days | 57 | 103 | |
60-89 Days | 125 | 17 | |
Greater than 90 Days | 166 | 70 | |
Total Delinquent Loans | 348 | 190 | |
Acquired Loans | 160 | 192 | |
Total loans held for investment | 50,003 | 50,109 | |
Commercial Banking | Commercial and multifamily real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 22,695 | 22,974 | |
30-59 Days | 43 | 74 | |
60-89 Days | 5 | 7 | |
Greater than 90 Days | 51 | 36 | |
Total Delinquent Loans | 99 | 117 | |
Acquired Loans | 37 | 46 | |
Total loans held for investment | 22,831 | 23,137 | |
Commercial Banking | Commercial and industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 26,800 | 26,753 | |
30-59 Days | 14 | 29 | |
60-89 Days | 120 | 10 | |
Greater than 90 Days | 115 | 34 | |
Total Delinquent Loans | 249 | 73 | |
Acquired Loans | 123 | 146 | |
Total loans held for investment | 27,172 | 26,972 | |
Commercial Banking | Small-ticket commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 725 | 771 | |
30-59 Days | 4 | 6 | |
60-89 Days | 4 | 1 | |
Greater than 90 Days | 5 | 3 | |
Total Delinquent Loans | 13 | 10 | |
Acquired Loans | 0 | 0 | |
Total loans held for investment | 738 | 781 | |
Other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Current | 91 | 97 | |
30-59 Days | 4 | 3 | |
60-89 Days | 1 | 2 | |
Greater than 90 Days | 8 | 9 | |
Total Delinquent Loans | 13 | 14 | |
Acquired Loans | 0 | 0 | |
Total loans held for investment | $104 | $111 |
Loans_90_Day_Delinquent_Loans_
Loans - 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | $1,219 | $1,263 |
Nonperforming Loans | 717 | 809 |
Percent 90 days past due and still accruing | 0.60% | 0.61% |
Nonperforming loans (as percent) | 0.35% | 0.39% |
Credit Card | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1,134 | 1,254 |
Nonperforming Loans | 64 | 70 |
Credit Card | Domestic | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1,070 | 1,181 |
Nonperforming Loans | 0 | 0 |
Credit Card | International | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 64 | 73 |
Nonperforming Loans | 64 | 70 |
Consumer Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1 | 1 |
Nonperforming Loans | 481 | 549 |
Nonperforming loans (as percent) | 0.67% | 0.77% |
Consumer Banking | Auto | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 120 | 197 |
Nonperforming loans (as percent) | 0.31% | 0.52% |
Consumer Banking | Home loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 336 | 330 |
Nonperforming loans (as percent) | 1.16% | 1.10% |
Consumer Banking | Retail banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 1 | 1 |
Nonperforming Loans | 25 | 22 |
Nonperforming loans (as percent) | 0.71% | 0.61% |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 84 | 8 |
Nonperforming Loans | 158 | 175 |
Commercial Banking | Total commercial lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 84 | 8 |
Nonperforming Loans | 146 | 168 |
Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 24 | 7 |
Nonperforming Loans | 40 | 62 |
Commercial Banking | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 60 | 1 |
Nonperforming Loans | 106 | 106 |
Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | 12 | 7 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 Days Past Due and Accruing | 0 | 0 |
Nonperforming Loans | $14 | $15 |
Loans_Credit_Card_Risk_Profile
Loans - Credit Card: Risk Profile by Geographic Region and Delinquency Status (Detail) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $203,978 | $208,316 | $192,941 |
Amount, 30 plus day delinquencies | 5,270 | 6,070 | |
Amount, 90 plus day delinquencies | 1,690 | 1,805 | |
30 Plus day delinquencies (as percent) | 2.58% | 2.91% | |
90 plus day delinquencies (as percent) | 0.83% | 0.87% | |
Credit Card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 81,754 | 85,876 | |
Percentage of portfolio | 100.00% | 100.00% | |
Amount, 30 plus day delinquencies | 2,425 | 2,832 | |
Amount, 90 plus day delinquencies | 1,169 | 1,292 | |
30 Plus day delinquencies (as percent) | 2.97% | 3.30% | |
90 plus day delinquencies (as percent) | 1.43% | 1.50% | |
Credit Card | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 8,326 | 8,574 | |
Percentage of portfolio | 10.20% | 10.00% | |
Credit Card | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,339 | 5,610 | |
Percentage of portfolio | 6.50% | 6.50% | |
Credit Card | Texas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,190 | 5,382 | |
Percentage of portfolio | 6.40% | 6.30% | |
Credit Card | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,635 | 4,794 | |
Percentage of portfolio | 5.70% | 5.60% | |
Credit Card | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,525 | 3,747 | |
Percentage of portfolio | 4.30% | 4.40% | |
Credit Card | Pennsylvania | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,349 | 3,581 | |
Percentage of portfolio | 4.10% | 4.20% | |
Credit Card | Ohio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,882 | 3,075 | |
Percentage of portfolio | 3.50% | 3.60% | |
Credit Card | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,714 | 2,868 | |
Percentage of portfolio | 3.30% | 3.30% | |
Credit Card | Michigan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,516 | 2,681 | |
Percentage of portfolio | 3.10% | 3.10% | |
Credit Card | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 35,655 | 37,392 | |
Percentage of portfolio | 43.60% | 43.50% | |
Credit Card | Domestic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 74,131 | 77,704 | |
Percentage of portfolio | 90.70% | 90.50% | |
Amount, 30 plus day delinquencies | 2,163 | 2,538 | |
Amount, 90 plus day delinquencies | 1,070 | 1,181 | |
Credit Card | Canada | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,443 | 4,747 | |
Percentage of portfolio | 5.40% | 5.50% | |
Credit Card | United Kingdom | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,180 | 3,425 | |
Percentage of portfolio | 3.90% | 4.00% | |
Credit Card | International | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 7,623 | 8,172 | |
Percentage of portfolio | 9.30% | 9.50% | |
Amount, 30 plus day delinquencies | 262 | 294 | |
Amount, 90 plus day delinquencies | $99 | $111 |
Loans_Credit_Card_Net_ChargeOf
Loans - Credit Card: Net Charge-Offs (Detail) (Credit Card, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | $719 | $780 |
Percentage annualized net charge-off by average loans held for investment | 3.48% | 4.02% |
Domestic | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | 664 | 700 |
Percentage annualized net charge-off by average loans held for investment | 3.55% | 4.01% |
International | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | $55 | $80 |
Percentage annualized net charge-off by average loans held for investment | 2.80% | 4.17% |
Loans_Consumer_Banking_Risk_Pr
Loans - Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status (Detail) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $203,978 | $208,316 | $192,941 |
Amount, 30 plus day delinquencies | 5,270 | 6,070 | |
Amount, 90 plus day delinquencies | 1,690 | 1,805 | |
Nonperforming Loans | 717 | 809 | |
30 Plus day delinquencies (as percent) | 2.58% | 2.91% | |
90 plus day delinquencies (as percent) | 0.83% | 0.87% | |
Nonperforming loans (as percent) | 0.35% | 0.39% | |
Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 71,379 | 71,439 | |
Percentage of portfolio | 100.00% | 100.00% | |
Amount, 30 plus day delinquencies | 2,471 | 3,024 | |
Amount, 90 plus day delinquencies | 342 | 431 | |
Nonperforming Loans | 481 | 549 | |
30 Plus day delinquencies (as percent) | 3.46% | 4.23% | |
90 plus day delinquencies (as percent) | 0.48% | 0.60% | |
Nonperforming loans (as percent) | 0.67% | 0.77% | |
30 plus day delinquencies, excluding acquired loans (as percent) | 5.02% | 6.28% | |
90 plus day delinquencies, excluding acquired loans (as percent) | 0.70% | 0.89% | |
Nonperforming loans, excluding acquired loans (as percent) | 0.98% | 1.14% | |
Consumer Banking | Auto | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 38,937 | 37,824 | |
Amount, 30 plus day delinquencies | 2,149 | 2,682 | |
Amount, 90 plus day delinquencies | 120 | 197 | |
Nonperforming Loans | 120 | 197 | |
30 Plus day delinquencies (as percent) | 5.52% | 7.09% | |
90 plus day delinquencies (as percent) | 0.31% | 0.52% | |
Nonperforming loans (as percent) | 0.31% | 0.52% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 38,937 | 37,824 | |
Percentage of portfolio | 54.50% | 53.00% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Texas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,323 | 5,248 | |
Percentage of portfolio | 7.40% | 7.40% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,248 | 4,081 | |
Percentage of portfolio | 6.00% | 5.70% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Louisiana | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,820 | 1,773 | |
Percentage of portfolio | 2.50% | 2.50% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,722 | 1,676 | |
Percentage of portfolio | 2.40% | 2.40% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,919 | 2,737 | |
Percentage of portfolio | 4.10% | 3.80% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Georgia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,124 | 2,066 | |
Percentage of portfolio | 3.00% | 2.90% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Ohio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,607 | 1,566 | |
Percentage of portfolio | 2.20% | 2.20% | |
Consumer Banking | Auto | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 19,174 | 18,677 | |
Percentage of portfolio | 26.90% | 26.10% | |
Consumer Banking | Home loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Amount, 30 plus day delinquencies | 282 | 302 | |
Amount, 90 plus day delinquencies | 208 | 218 | |
Nonperforming Loans | 336 | 330 | |
30 Plus day delinquencies (as percent) | 0.97% | 1.01% | |
90 plus day delinquencies (as percent) | 0.72% | 0.73% | |
Nonperforming loans (as percent) | 1.16% | 1.10% | |
30 plus day delinquencies, excluding acquired loans (as percent) | 4.15% | 4.45% | |
90 plus day delinquencies, excluding acquired loans (as percent) | 3.06% | 3.21% | |
Nonperforming loans, excluding acquired loans (as percent) | 4.94% | 4.86% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Percentage of portfolio | 40.50% | 42.00% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,696 | 6,943 | |
Percentage of portfolio | 9.40% | 9.70% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,387 | 2,452 | |
Percentage of portfolio | 3.30% | 3.40% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,792 | 1,873 | |
Percentage of portfolio | 2.50% | 2.60% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | Maryland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,674 | 1,720 | |
Percentage of portfolio | 2.30% | 2.40% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,471 | 1,529 | |
Percentage of portfolio | 2.10% | 2.10% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | Virginia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,500 | 1,538 | |
Percentage of portfolio | 2.10% | 2.20% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,317 | 1,375 | |
Percentage of portfolio | 1.80% | 1.90% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 12,068 | 12,605 | |
Percentage of portfolio | 17.00% | 17.70% | |
Consumer Banking | Retail banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,537 | 3,580 | |
Amount, 30 plus day delinquencies | 40 | 40 | |
Amount, 90 plus day delinquencies | 14 | 16 | |
Nonperforming Loans | 25 | 22 | |
30 Plus day delinquencies (as percent) | 1.12% | 1.11% | |
90 plus day delinquencies (as percent) | 0.40% | 0.44% | |
Nonperforming loans (as percent) | 0.71% | 0.61% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,537 | 3,580 | |
Percentage of portfolio | 5.00% | 5.00% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | Texas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 749 | 756 | |
Percentage of portfolio | 1.00% | 1.10% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 50 | 52 | |
Percentage of portfolio | 0.10% | 0.10% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | Louisiana | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,098 | 1,120 | |
Percentage of portfolio | 1.60% | 1.50% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 873 | 881 | |
Percentage of portfolio | 1.20% | 1.20% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | Maryland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 165 | 167 | |
Percentage of portfolio | 0.20% | 0.20% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 252 | 265 | |
Percentage of portfolio | 0.40% | 0.40% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | Virginia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 142 | 132 | |
Percentage of portfolio | 0.20% | 0.20% | |
Consumer Banking | Retail banking | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $208 | $207 | |
Percentage of portfolio | 0.30% | 0.30% |
Loans_Consumer_Banking_Net_Cha
Loans - Consumer Banking: Net Charge-Offs (Detail) (Consumer Banking, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | $159 | $148 |
Percentage annualized net charge-off by average loans held for investment | 0.89% | 0.84% |
Percentage annualized net charge-off by average loans held for investment, excluding loans acquired (as percent) | 1.30% | 1.37% |
Auto | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | 148 | 134 |
Percentage annualized net charge-off by average loans held for investment | 1.55% | 1.66% |
Home loan | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | 2 | 5 |
Percentage annualized net charge-off by average loans held for investment | 0.03% | 0.06% |
Percentage annualized net charge-off by average loans held for investment, excluding loans acquired (as percent) | 0.11% | 0.29% |
Retail banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Net charge-offs | $9 | $9 |
Percentage annualized net charge-off by average loans held for investment | 0.96% | 0.95% |
Loans_Home_Loan_Risk_Profile_b
Loans - Home Loan: Risk Profile by Vintage, Geography, Lien Priority and Interest Rate Type (Detail) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $203,978 | $208,316 | $192,941 |
Consumer Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 71,379 | 71,439 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Banking | Home loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | Origination during or before 2006 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 8,226 | 8,542 | |
Percentage of portfolio | 28.50% | 28.50% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2007 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,957 | 5,086 | |
Percentage of portfolio | 17.10% | 16.90% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2008 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,515 | 3,681 | |
Percentage of portfolio | 12.20% | 12.30% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2009 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,974 | 2,106 | |
Percentage of portfolio | 6.80% | 7.00% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2010 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,977 | 3,228 | |
Percentage of portfolio | 10.30% | 10.70% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2011 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,459 | 3,728 | |
Percentage of portfolio | 12.00% | 12.40% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,036 | 2,153 | |
Percentage of portfolio | 7.00% | 7.20% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2013 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 714 | 746 | |
Percentage of portfolio | 2.50% | 2.50% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2014 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 769 | 765 | |
Percentage of portfolio | 2.60% | 2.50% | |
Consumer Banking | Home loan | Origination Year Concentration Risk | Home Loans Receivable | 2015 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 278 | ||
Percentage of portfolio | 1.00% | ||
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,696 | 6,943 | |
Percentage of portfolio | 23.10% | 23.10% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,387 | 2,452 | |
Percentage of portfolio | 8.20% | 8.20% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,792 | 1,873 | |
Percentage of portfolio | 6.20% | 6.20% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Maryland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,674 | 1,720 | |
Percentage of portfolio | 5.80% | 5.70% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Virginia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,500 | 1,538 | |
Percentage of portfolio | 5.20% | 5.10% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,471 | 1,529 | |
Percentage of portfolio | 5.10% | 5.10% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,317 | 1,375 | |
Percentage of portfolio | 4.60% | 4.60% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Arizona | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,255 | 1,304 | |
Percentage of portfolio | 4.30% | 4.40% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Louisiana | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,207 | 1,243 | |
Percentage of portfolio | 4.20% | 4.10% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Washington | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,090 | 1,147 | |
Percentage of portfolio | 3.80% | 3.80% | |
Consumer Banking | Home loan | Geographic Concentration Risk | Home Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 8,516 | 8,911 | |
Percentage of portfolio | 29.50% | 29.70% | |
Consumer Banking | Home loan | Lien Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Banking | Home loan | Lien Type Concentration Risk | Home Loans Receivable | 1st lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 27,542 | 28,639 | |
Percentage of portfolio | 95.30% | 95.40% | |
Consumer Banking | Home loan | Lien Type Concentration Risk | Home Loans Receivable | 2nd lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,363 | 1,396 | |
Percentage of portfolio | 4.70% | 4.60% | |
Consumer Banking | Home loan | Interest Rate Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28,905 | 30,035 | |
Percentage of portfolio | 100.00% | 100.00% | |
Consumer Banking | Home loan | Interest Rate Type Concentration Risk | Home Loans Receivable | Fixed rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,215 | 5,286 | |
Percentage of portfolio | 18.00% | 17.60% | |
Consumer Banking | Home loan | Interest Rate Type Concentration Risk | Home Loans Receivable | Adjustable rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 23,690 | 24,749 | |
Percentage of portfolio | 82.00% | 82.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,791 | 6,794 | |
Percentage of portfolio | 23.50% | 22.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | Origination during or before 2006 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,706 | 2,827 | |
Percentage of portfolio | 9.40% | 9.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2007 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 309 | 320 | |
Percentage of portfolio | 1.10% | 1.10% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2008 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 178 | 187 | |
Percentage of portfolio | 0.60% | 0.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2009 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 104 | 107 | |
Percentage of portfolio | 0.40% | 0.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2010 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 113 | 120 | |
Percentage of portfolio | 0.40% | 0.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2011 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 208 | 221 | |
Percentage of portfolio | 0.70% | 0.70% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,536 | 1,620 | |
Percentage of portfolio | 5.30% | 5.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2013 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 633 | 661 | |
Percentage of portfolio | 2.20% | 2.20% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2014 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 734 | 731 | |
Percentage of portfolio | 2.50% | 2.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2015 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 270 | ||
Percentage of portfolio | 0.90% | ||
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,791 | 6,794 | |
Percentage of portfolio | 23.50% | 22.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 931 | 924 | |
Percentage of portfolio | 3.20% | 3.10% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,363 | 1,379 | |
Percentage of portfolio | 4.70% | 4.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 93 | 86 | |
Percentage of portfolio | 0.30% | 0.30% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Maryland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 464 | 457 | |
Percentage of portfolio | 1.60% | 1.50% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Virginia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 395 | 385 | |
Percentage of portfolio | 1.30% | 1.30% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 337 | 341 | |
Percentage of portfolio | 1.20% | 1.10% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 162 | 161 | |
Percentage of portfolio | 0.60% | 0.50% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Arizona | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 90 | 89 | |
Percentage of portfolio | 0.30% | 0.30% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Louisiana | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,171 | 1,205 | |
Percentage of portfolio | 4.10% | 4.00% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Washington | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 105 | 109 | |
Percentage of portfolio | 0.40% | 0.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,680 | 1,658 | |
Percentage of portfolio | 5.80% | 5.50% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,791 | 6,794 | |
Percentage of portfolio | 23.50% | 22.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | 1st lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,776 | 5,756 | |
Percentage of portfolio | 20.00% | 19.20% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | 2nd lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,015 | 1,038 | |
Percentage of portfolio | 3.50% | 3.40% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,791 | 6,794 | |
Percentage of portfolio | 23.50% | 22.60% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | Fixed rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,513 | 2,446 | |
Percentage of portfolio | 8.70% | 8.10% | |
Consumer Banking | Home loan | Loans excluding Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | Adjustable rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,278 | 4,348 | |
Percentage of portfolio | 14.80% | 14.50% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,114 | 23,241 | |
Percentage of portfolio | 76.50% | 77.40% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | Origination during or before 2006 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,520 | 5,715 | |
Percentage of portfolio | 19.10% | 19.10% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2007 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,648 | 4,766 | |
Percentage of portfolio | 16.00% | 15.80% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2008 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,337 | 3,494 | |
Percentage of portfolio | 11.60% | 11.70% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2009 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,870 | 1,999 | |
Percentage of portfolio | 6.40% | 6.60% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2010 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,864 | 3,108 | |
Percentage of portfolio | 9.90% | 10.30% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2011 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,251 | 3,507 | |
Percentage of portfolio | 11.30% | 11.70% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2012 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 500 | 533 | |
Percentage of portfolio | 1.70% | 1.80% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2013 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 81 | 85 | |
Percentage of portfolio | 0.30% | 0.30% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2014 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 35 | 34 | |
Percentage of portfolio | 0.10% | 0.10% | |
Consumer Banking | Home loan | Acquired Loans | Origination Year Concentration Risk | Home Loans Receivable | 2015 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 8 | ||
Percentage of portfolio | 0.10% | ||
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,114 | 23,241 | |
Percentage of portfolio | 76.50% | 77.40% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 5,765 | 6,019 | |
Percentage of portfolio | 19.90% | 20.00% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,024 | 1,073 | |
Percentage of portfolio | 3.50% | 3.60% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,699 | 1,787 | |
Percentage of portfolio | 5.90% | 5.90% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Maryland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,210 | 1,263 | |
Percentage of portfolio | 4.20% | 4.20% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Virginia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,105 | 1,153 | |
Percentage of portfolio | 3.90% | 3.80% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,134 | 1,188 | |
Percentage of portfolio | 3.90% | 4.00% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,155 | 1,214 | |
Percentage of portfolio | 4.00% | 4.10% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Arizona | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,165 | 1,215 | |
Percentage of portfolio | 4.00% | 4.10% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Louisiana | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 36 | 38 | |
Percentage of portfolio | 0.10% | 0.10% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Washington | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 985 | 1,038 | |
Percentage of portfolio | 3.40% | 3.40% | |
Consumer Banking | Home loan | Acquired Loans | Geographic Concentration Risk | Home Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,836 | 7,253 | |
Percentage of portfolio | 23.70% | 24.20% | |
Consumer Banking | Home loan | Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,114 | 23,241 | |
Percentage of portfolio | 76.50% | 77.40% | |
Consumer Banking | Home loan | Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | 1st lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 21,766 | 22,883 | |
Percentage of portfolio | 75.30% | 76.20% | |
Consumer Banking | Home loan | Acquired Loans | Lien Type Concentration Risk | Home Loans Receivable | 2nd lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 348 | 358 | |
Percentage of portfolio | 1.20% | 1.20% | |
Consumer Banking | Home loan | Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,114 | 23,241 | |
Percentage of portfolio | 76.50% | 77.40% | |
Consumer Banking | Home loan | Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | Fixed rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,702 | 2,840 | |
Percentage of portfolio | 9.30% | 9.50% | |
Consumer Banking | Home loan | Acquired Loans | Interest Rate Type Concentration Risk | Home Loans Receivable | Adjustable rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $19,412 | $20,401 | |
Percentage of portfolio | 67.20% | 67.90% |
Loans_Commercial_Banking_Risk_
Loans - Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating (Detail) (USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $203,978 | $208,316 | $192,941 |
Commercial Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 50,741 | 50,890 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Geographic Concentration Risk | Loans Receivable | Northeast | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 21,577 | 21,997 | |
Percentage of portfolio | 42.50% | 43.20% | |
Commercial Banking | Geographic Concentration Risk | Loans Receivable | Mid-Atlantic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4,744 | 4,642 | |
Percentage of portfolio | 9.30% | 9.10% | |
Commercial Banking | Geographic Concentration Risk | Loans Receivable | South | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 15,554 | 15,428 | |
Percentage of portfolio | 30.70% | 30.30% | |
Commercial Banking | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 8,866 | 8,823 | |
Percentage of portfolio | 17.50% | 17.40% | |
Commercial Banking | Internal Risk Rating Concentration Risk | Loans Receivable | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 48,938 | 49,284 | |
Percentage of portfolio | 96.50% | 96.90% | |
Commercial Banking | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,645 | 1,431 | |
Percentage of portfolio | 3.20% | 2.80% | |
Commercial Banking | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 158 | 175 | |
Percentage of portfolio | 0.30% | 0.30% | |
Commercial Banking | Commercial and multifamily real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,831 | 23,137 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and multifamily real estate | Geographic Concentration Risk | Loans Receivable | Northeast | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 14,677 | 15,135 | |
Percentage of portfolio | 64.30% | 65.40% | |
Commercial Banking | Commercial and multifamily real estate | Geographic Concentration Risk | Loans Receivable | Mid-Atlantic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,578 | 2,491 | |
Percentage of portfolio | 11.30% | 10.80% | |
Commercial Banking | Commercial and multifamily real estate | Geographic Concentration Risk | Loans Receivable | South | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 3,375 | 3,070 | |
Percentage of portfolio | 14.80% | 13.30% | |
Commercial Banking | Commercial and multifamily real estate | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,201 | 2,441 | |
Percentage of portfolio | 9.60% | 10.50% | |
Commercial Banking | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 22,283 | 22,535 | |
Percentage of portfolio | 97.60% | 97.40% | |
Commercial Banking | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 508 | 540 | |
Percentage of portfolio | 2.20% | 2.30% | |
Commercial Banking | Commercial and multifamily real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 40 | 62 | |
Percentage of portfolio | 0.20% | 0.30% | |
Commercial Banking | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 27,172 | 26,972 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Commercial and industrial | Geographic Concentration Risk | Loans Receivable | Northeast | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,448 | 6,384 | |
Percentage of portfolio | 23.70% | 23.70% | |
Commercial Banking | Commercial and industrial | Geographic Concentration Risk | Loans Receivable | Mid-Atlantic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,138 | 2,121 | |
Percentage of portfolio | 7.90% | 7.90% | |
Commercial Banking | Commercial and industrial | Geographic Concentration Risk | Loans Receivable | South | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 12,133 | 12,310 | |
Percentage of portfolio | 44.70% | 45.60% | |
Commercial Banking | Commercial and industrial | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 6,453 | 6,157 | |
Percentage of portfolio | 23.70% | 22.80% | |
Commercial Banking | Commercial and industrial | Internal Risk Rating Concentration Risk | Loans Receivable | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 25,933 | 25,982 | |
Percentage of portfolio | 95.40% | 96.30% | |
Commercial Banking | Commercial and industrial | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 1,133 | 884 | |
Percentage of portfolio | 4.20% | 3.30% | |
Commercial Banking | Commercial and industrial | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 106 | 106 | |
Percentage of portfolio | 0.40% | 0.40% | |
Commercial Banking | Small-ticket commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 738 | 781 | |
Percentage of portfolio | 100.00% | 100.00% | |
Commercial Banking | Small-ticket commercial real estate | Geographic Concentration Risk | Loans Receivable | Northeast | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 452 | 478 | |
Percentage of portfolio | 61.20% | 61.20% | |
Commercial Banking | Small-ticket commercial real estate | Geographic Concentration Risk | Loans Receivable | Mid-Atlantic | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 28 | 30 | |
Percentage of portfolio | 3.80% | 3.80% | |
Commercial Banking | Small-ticket commercial real estate | Geographic Concentration Risk | Loans Receivable | South | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 46 | 48 | |
Percentage of portfolio | 6.20% | 6.20% | |
Commercial Banking | Small-ticket commercial real estate | Geographic Concentration Risk | Loans Receivable | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 212 | 225 | |
Percentage of portfolio | 28.80% | 28.80% | |
Commercial Banking | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 722 | 767 | |
Percentage of portfolio | 97.80% | 98.20% | |
Commercial Banking | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 4 | 7 | |
Percentage of portfolio | 0.60% | 0.90% | |
Commercial Banking | Small-ticket commercial real estate | Internal Risk Rating Concentration Risk | Loans Receivable | Criticized | Criticized nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $12 | $7 | |
Percentage of portfolio | 1.60% | 0.90% |
Loans_Impaired_Loans_Excluding
Loans - Impaired Loans, Excluding Acquired Loans (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Impaired Financing Receivable: | |||
With an Allowance | $1,442 | $1,469 | |
Without an Allowance | 447 | 445 | |
Total Recorded Investment | 1,889 | 1,914 | |
Related Allowance | 289 | 300 | |
Net Recorded Investment | 1,600 | 1,614 | |
Unpaid Principal Balance | 2,274 | 2,296 | |
Average Recorded Investment | 1,901 | 1,968 | |
Interest Income Recognized | 40 | 40 | |
Credit Card | |||
Impaired Financing Receivable: | |||
With an Allowance | 673 | 692 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 673 | 692 | |
Related Allowance | 210 | 219 | |
Net Recorded Investment | 463 | 473 | |
Unpaid Principal Balance | 653 | 672 | |
Average Recorded Investment | 683 | 765 | |
Interest Income Recognized | 16 | 18 | |
Credit Card | Domestic | |||
Impaired Financing Receivable: | |||
With an Allowance | 538 | 546 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 538 | 546 | |
Related Allowance | 143 | 145 | |
Net Recorded Investment | 395 | 401 | |
Unpaid Principal Balance | 523 | 531 | |
Average Recorded Investment | 542 | 596 | |
Interest Income Recognized | 14 | 15 | |
Credit Card | International | |||
Impaired Financing Receivable: | |||
With an Allowance | 135 | 146 | |
Without an Allowance | 0 | 0 | |
Total Recorded Investment | 135 | 146 | |
Related Allowance | 67 | 74 | |
Net Recorded Investment | 68 | 72 | |
Unpaid Principal Balance | 130 | 141 | |
Average Recorded Investment | 141 | 169 | |
Interest Income Recognized | 2 | 3 | |
Consumer Banking | |||
Impaired Financing Receivable: | |||
With an Allowance | 514 | 493 | |
Without an Allowance | 358 | 359 | |
Total Recorded Investment | 872 | 852 | |
Related Allowance | 47 | 42 | |
Net Recorded Investment | 825 | 810 | |
Unpaid Principal Balance | 1,241 | 1,218 | |
Average Recorded Investment | 862 | 848 | |
Interest Income Recognized | 22 | 19 | |
Consumer Banking | Auto | |||
Impaired Financing Receivable: | |||
With an Allowance | 249 | 230 | |
Without an Allowance | 204 | 205 | |
Total Recorded Investment | 453 | 435 | |
Related Allowance | 22 | 19 | |
Net Recorded Investment | 431 | 416 | |
Unpaid Principal Balance | 717 | 694 | |
Average Recorded Investment | 444 | 363 | |
Interest Income Recognized | 21 | 17 | |
Consumer Banking | Home loan | |||
Impaired Financing Receivable: | |||
With an Allowance | 219 | 218 | |
Without an Allowance | 146 | 149 | |
Total Recorded Investment | 365 | 367 | |
Related Allowance | 16 | 17 | |
Net Recorded Investment | 349 | 350 | |
Unpaid Principal Balance | 467 | 472 | |
Average Recorded Investment | 366 | 402 | |
Interest Income Recognized | 1 | 1 | |
Consumer Banking | Retail banking | |||
Impaired Financing Receivable: | |||
With an Allowance | 46 | 45 | |
Without an Allowance | 8 | 5 | |
Total Recorded Investment | 54 | 50 | |
Related Allowance | 9 | 6 | |
Net Recorded Investment | 45 | 44 | |
Unpaid Principal Balance | 57 | 52 | |
Average Recorded Investment | 52 | 83 | |
Interest Income Recognized | 0 | 1 | |
Commercial Banking | |||
Impaired Financing Receivable: | |||
With an Allowance | 255 | 284 | |
Without an Allowance | 89 | 86 | |
Total Recorded Investment | 344 | 370 | |
Related Allowance | 32 | 39 | |
Net Recorded Investment | 312 | 331 | |
Unpaid Principal Balance | 380 | 406 | |
Average Recorded Investment | 356 | 355 | |
Interest Income Recognized | 2 | 3 | |
Commercial Banking | Total commercial lending | |||
Impaired Financing Receivable: | |||
With an Allowance | 251 | 281 | |
Without an Allowance | 80 | 81 | |
Total Recorded Investment | 331 | 362 | |
Related Allowance | 32 | 39 | |
Net Recorded Investment | 299 | 323 | |
Unpaid Principal Balance | 365 | 396 | |
Average Recorded Investment | 346 | 348 | |
Interest Income Recognized | 2 | 3 | |
Commercial Banking | Commercial and multifamily real estate | |||
Impaired Financing Receivable: | |||
With an Allowance | 107 | 120 | |
Without an Allowance | 13 | 26 | |
Total Recorded Investment | 120 | 146 | |
Related Allowance | 19 | 23 | |
Net Recorded Investment | 101 | 123 | |
Unpaid Principal Balance | 134 | 163 | |
Average Recorded Investment | 133 | 169 | |
Interest Income Recognized | 1 | 2 | |
Commercial Banking | Commercial and industrial | |||
Impaired Financing Receivable: | |||
With an Allowance | 144 | 161 | |
Without an Allowance | 67 | 55 | |
Total Recorded Investment | 211 | 216 | |
Related Allowance | 13 | 16 | |
Net Recorded Investment | 198 | 200 | |
Unpaid Principal Balance | 231 | 233 | |
Average Recorded Investment | 213 | 179 | |
Interest Income Recognized | 1 | 1 | |
Commercial Banking | Small-ticket commercial real estate | |||
Impaired Financing Receivable: | |||
With an Allowance | 4 | 3 | |
Without an Allowance | 9 | 5 | |
Total Recorded Investment | 13 | 8 | |
Related Allowance | 0 | 0 | |
Net Recorded Investment | 13 | 8 | |
Unpaid Principal Balance | 15 | 10 | |
Average Recorded Investment | 10 | 7 | |
Interest Income Recognized | $0 | $0 |
Loans_TDR_Disclosures_in_Progr
Loans - TDR Disclosures in Progress Financial Impact of Modification (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | $228 | $264 |
Commercial Banking | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 24 | 63 |
Commercial Banking | Total commercial lending | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 24 | 63 |
Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 3 | 62 |
Commercial Banking | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 21 | 1 |
Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 0 | 0 |
Credit Card | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 104 | 110 |
Credit Card | Domestic | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 72 | 67 |
Credit Card | International | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 32 | 43 |
Consumer Banking | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 100 | 91 |
Consumer Banking | Auto | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 88 | 77 |
Consumer Banking | Home loan | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 7 | 8 |
Consumer Banking | Retail banking | ||
Financing Receivable, Modifications [Line Items] | ||
Total Loans Modified | 5 | 6 |
Reduced Interest Rate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 65.00% | 62.00% |
Average Rate Reduction | 12.19% | 11.70% |
Reduced Interest Rate | Commercial Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 33.00% |
Average Rate Reduction | 2.02% | 1.37% |
Reduced Interest Rate | Commercial Banking | Total commercial lending | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 33.00% |
Average Rate Reduction | 2.02% | 1.37% |
Reduced Interest Rate | Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 33.00% |
Average Rate Reduction | 0.00% | 1.37% |
Reduced Interest Rate | Commercial Banking | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Rate Reduction | 2.02% | 0.00% |
Reduced Interest Rate | Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Rate Reduction | 0.00% | 0.00% |
Reduced Interest Rate | Credit Card | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 100.00% | 100.00% |
Average Rate Reduction | 16.39% | 16.82% |
Reduced Interest Rate | Credit Card | Domestic | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 100.00% | 100.00% |
Average Rate Reduction | 12.13% | 11.50% |
Reduced Interest Rate | Credit Card | International | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 100.00% | 100.00% |
Average Rate Reduction | 25.79% | 25.20% |
Reduced Interest Rate | Consumer Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 44.00% | 36.00% |
Average Rate Reduction | 2.36% | 1.00% |
Reduced Interest Rate | Consumer Banking | Auto | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 41.00% | 40.00% |
Average Rate Reduction | 1.71% | 0.94% |
Reduced Interest Rate | Consumer Banking | Home loan | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 67.00% | 19.00% |
Average Rate Reduction | 2.85% | 1.25% |
Reduced Interest Rate | Consumer Banking | Retail banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 61.00% | 8.00% |
Average Rate Reduction | 9.36% | 4.01% |
Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 33.00% | 46.00% |
Average Term Extension (Months) | 20 months | 11 months |
Term Extension | Commercial Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 13.00% | 99.00% |
Average Term Extension (Months) | 29 months | 8 months |
Term Extension | Commercial Banking | Total commercial lending | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 13.00% | 99.00% |
Average Term Extension (Months) | 29 months | 8 months |
Term Extension | Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 100.00% | 100.00% |
Average Term Extension (Months) | 35 months | 8 months |
Term Extension | Commercial Banking | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 3.00% | 64.00% |
Average Term Extension (Months) | 7 months | 11 months |
Term Extension | Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months |
Term Extension | Credit Card | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months |
Term Extension | Credit Card | Domestic | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months |
Term Extension | Credit Card | International | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Average Term Extension (Months) | 0 months | 0 months |
Term Extension | Consumer Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 72.00% | 63.00% |
Average Term Extension (Months) | 20 months | 14 months |
Term Extension | Consumer Banking | Auto | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 71.00% | 67.00% |
Average Term Extension (Months) | 9 months | 9 months |
Term Extension | Consumer Banking | Home loan | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 66.00% | 30.00% |
Average Term Extension (Months) | 171 months | 138 months |
Term Extension | Consumer Banking | Retail banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 91.00% | 59.00% |
Average Term Extension (Months) | 4 months | 6 months |
Balance Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 12.00% | 10.00% |
Gross Balance Reduction | 23 | 23 |
Balance Reduction | Commercial Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 8.00% | 0.00% |
Gross Balance Reduction | 1 | 0 |
Balance Reduction | Commercial Banking | Total commercial lending | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 8.00% | 0.00% |
Gross Balance Reduction | 1 | 0 |
Balance Reduction | Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 77.00% | 0.00% |
Gross Balance Reduction | 1 | 0 |
Balance Reduction | Commercial Banking | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | 0 | 0 |
Balance Reduction | Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | 0 | 0 |
Balance Reduction | Credit Card | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | 0 | 0 |
Balance Reduction | Credit Card | Domestic | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | 0 | 0 |
Balance Reduction | Credit Card | International | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | 0 | 0 |
Balance Reduction | Consumer Banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 24.00% | 29.00% |
Gross Balance Reduction | 22 | 23 |
Balance Reduction | Consumer Banking | Auto | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 28.00% | 32.00% |
Gross Balance Reduction | 22 | 22 |
Balance Reduction | Consumer Banking | Home loan | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 13.00% |
Gross Balance Reduction | 0 | 1 |
Balance Reduction | Consumer Banking | Retail banking | ||
Financing Receivable, Modifications [Line Items] | ||
% of TDR Activity | 0.00% | 0.00% |
Gross Balance Reduction | $0 | $0 |
Loans_TDR_Subsequent_Defaults_
Loans - TDR - Subsequent Defaults of Completed TDR Modifications (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 19,977 | 22,945 |
Total Loans | $57 | $76 |
Credit Card | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 18,215 | 21,582 |
Total Loans | 36 | 46 |
Credit Card | Domestic | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 9,667 | 11,061 |
Total Loans | 16 | 16 |
Credit Card | International | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 8,548 | 10,521 |
Total Loans | 20 | 30 |
Consumer Banking | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1,762 | 1,353 |
Total Loans | 21 | 22 |
Consumer Banking | Auto | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1,747 | 1,322 |
Total Loans | 20 | 13 |
Consumer Banking | Home loan | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 5 | 6 |
Total Loans | 0 | 2 |
Consumer Banking | Retail banking | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 10 | 25 |
Total Loans | 1 | 7 |
Commercial Banking | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | 10 |
Total Loans | 0 | 8 |
Commercial Banking | Total commercial lending | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | 4 |
Total Loans | 0 | 6 |
Commercial Banking | Commercial and multifamily real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | 3 |
Total Loans | 0 | 6 |
Commercial Banking | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | 1 |
Total Loans | 0 | 0 |
Commercial Banking | Small-ticket commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 0 | 6 |
Total Loans | $0 | $2 |
Loans_Outstanding_Balance_and_
Loans - Outstanding Balance and Carrying Value of Acquired Loans (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Outstanding balance | $24,037 | $25,201 | |
Carrying value(1) | 22,343 | 23,519 | |
Allowance for loan and lease losses for Acquired Loans | 34 | 27 | |
Provision for credit losses for Acquired Loans | 7 | -2 | |
Impaired Loans | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Outstanding balance | 4,184 | 4,279 | |
Carrying value(1) | 2,808 | 2,882 | |
Non-Impaired Loans | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Outstanding balance | 19,853 | 20,922 | |
Carrying value(1) | $19,535 | $20,637 |
Loans_Changes_in_Accretable_Yi
Loans - Changes in Accretable Yield on Acquired Loans (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, beginning balance | $4,653 |
Accretion recognized in earnings | -237 |
Reclassifications from (to) nonaccretable difference for loans with changing cash flows(1) | 35 |
Changes in accretable yield for non-credit related changes in expected cash flows(2) | 110 |
Accretable yield, ending balance | 4,561 |
Impaired Loans | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, beginning balance | 1,485 |
Accretion recognized in earnings | -87 |
Reclassifications from (to) nonaccretable difference for loans with changing cash flows(1) | 45 |
Changes in accretable yield for non-credit related changes in expected cash flows(2) | 84 |
Accretable yield, ending balance | 1,527 |
Non-Impaired Loans | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Accretable yield, beginning balance | 3,168 |
Accretion recognized in earnings | -150 |
Reclassifications from (to) nonaccretable difference for loans with changing cash flows(1) | -10 |
Changes in accretable yield for non-credit related changes in expected cash flows(2) | 26 |
Accretable yield, ending balance | $3,034 |
Allowance_for_Loan_and_Lease_L2
Allowance for Loan and Lease Losses - Summary of Changes in Allowance for Loan and Lease Losses (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | $4,383 | |
Provision for credit losses | 935 | 735 |
Balance at end of the period | 4,405 | |
Total Allowance | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 4,383 | 4,315 |
Provision for credit losses | 927 | 723 |
Charge-offs | -1,284 | -1,335 |
Recoveries | 403 | 404 |
Net charge-offs | -881 | -931 |
Other changes | -24 | -9 |
Balance at end of the period | 4,405 | 4,098 |
Unfunded Lending Commitments Reserve | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 113 | 87 |
Provision for credit losses | 8 | 12 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 0 |
Other changes | 0 | 0 |
Balance at end of the period | 121 | 99 |
Combined Allowance & Unfunded Reserve | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 4,496 | 4,402 |
Provision for credit losses | 935 | 735 |
Charge-offs | -1,284 | -1,335 |
Recoveries | 403 | 404 |
Net charge-offs | -881 | -931 |
Other changes | -24 | -9 |
Balance at end of the period | 4,526 | 4,197 |
Credit Card | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 3,204 | 3,214 |
Provision for credit losses | 669 | 558 |
Charge-offs | -1,022 | -1,095 |
Recoveries | 303 | 315 |
Net charge-offs | -719 | -780 |
Other changes | -24 | -8 |
Balance at end of the period | 3,130 | 2,984 |
Consumer Banking | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 779 | 752 |
Provision for credit losses | 206 | 140 |
Charge-offs | -250 | -231 |
Recoveries | 91 | 83 |
Net charge-offs | -159 | -148 |
Other changes | 0 | 0 |
Balance at end of the period | 826 | 744 |
Consumer Banking | Auto | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 661 | 606 |
Provision for credit losses | 184 | 136 |
Charge-offs | -233 | -205 |
Recoveries | 85 | 71 |
Net charge-offs | -148 | -134 |
Other changes | 0 | 0 |
Balance at end of the period | 697 | 608 |
Consumer Banking | Home loan | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 62 | 83 |
Provision for credit losses | 8 | -6 |
Charge-offs | -4 | -11 |
Recoveries | 2 | 6 |
Net charge-offs | -2 | -5 |
Other changes | 0 | 0 |
Balance at end of the period | 68 | 72 |
Consumer Banking | Retail banking | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 56 | 63 |
Provision for credit losses | 14 | 10 |
Charge-offs | -13 | -15 |
Recoveries | 4 | 6 |
Net charge-offs | -9 | -9 |
Other changes | 0 | 0 |
Balance at end of the period | 61 | 64 |
Commercial Banking | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 395 | 338 |
Provision for credit losses | 52 | 28 |
Charge-offs | -9 | -7 |
Recoveries | 6 | 3 |
Net charge-offs | -3 | -4 |
Other changes | 0 | 0 |
Balance at end of the period | 444 | 362 |
Other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance as beginning of the period | 5 | 11 |
Provision for credit losses | 0 | -3 |
Charge-offs | -3 | -2 |
Recoveries | 3 | 3 |
Net charge-offs | 0 | 1 |
Other changes | 0 | -1 |
Balance at end of the period | $5 | $8 |
Allowance_for_Loan_and_Lease_L3
Allowance for Loan and Lease Losses - Components of Allowance for Loan and Lease Losses by Impairment Methodology (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | $4,082 | $4,056 | ||
Asset-specific | 289 | 300 | ||
Acquired Loans | 34 | 27 | ||
Total allowance for loan and lease losses | 4,405 | 4,383 | ||
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 2.16% | 2.10% | ||
Collectively evaluated | 179,959 | 183,107 | ||
Asset-specific | 1,685 | 1,709 | ||
Acquired Loans | 22,334 | 23,500 | ||
Total loans held for investment | 203,978 | 208,316 | 192,941 | |
Credit Card | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 2,920 | 2,985 | ||
Asset-specific | 210 | 219 | ||
Acquired Loans | 0 | 0 | ||
Total allowance for loan and lease losses | 3,130 | 3,204 | 2,984 | 3,214 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 3.83% | 3.73% | ||
Collectively evaluated | 81,060 | 85,161 | ||
Asset-specific | 673 | 692 | ||
Acquired Loans | 21 | 23 | ||
Total loans held for investment | 81,754 | 85,876 | ||
Consumer Banking | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 746 | 710 | ||
Asset-specific | 47 | 42 | ||
Acquired Loans | 33 | 27 | ||
Total allowance for loan and lease losses | 826 | 779 | 744 | 752 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 1.16% | 1.09% | ||
Collectively evaluated | 48,558 | 47,507 | ||
Asset-specific | 668 | 647 | ||
Acquired Loans | 22,153 | 23,285 | ||
Total loans held for investment | 71,379 | 71,439 | ||
Consumer Banking | Auto | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 675 | 642 | ||
Asset-specific | 22 | 19 | ||
Acquired Loans | 0 | 0 | ||
Total allowance for loan and lease losses | 697 | 661 | 608 | 606 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 1.79% | 1.75% | ||
Collectively evaluated | 38,688 | 37,594 | ||
Asset-specific | 249 | 230 | ||
Acquired Loans | 0 | 0 | ||
Total loans held for investment | 38,937 | 37,824 | ||
Consumer Banking | Home loan | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 19 | 18 | ||
Asset-specific | 16 | 17 | ||
Acquired Loans | 33 | 27 | ||
Total allowance for loan and lease losses | 68 | 62 | 72 | 83 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 0.23% | 0.21% | ||
Collectively evaluated | 6,426 | 6,427 | ||
Asset-specific | 365 | 367 | ||
Acquired Loans | 22,114 | 23,241 | ||
Total loans held for investment | 28,905 | 30,035 | ||
Consumer Banking | Retail banking | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 52 | 50 | ||
Asset-specific | 9 | 6 | ||
Acquired Loans | 0 | 0 | ||
Total allowance for loan and lease losses | 61 | 56 | 64 | 63 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 1.74% | 1.58% | ||
Collectively evaluated | 3,444 | 3,486 | ||
Asset-specific | 54 | 50 | ||
Acquired Loans | 39 | 44 | ||
Total loans held for investment | 3,537 | 3,580 | ||
Commercial Banking | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 411 | 356 | ||
Asset-specific | 32 | 39 | ||
Acquired Loans | 1 | 0 | ||
Total allowance for loan and lease losses | 444 | 395 | 362 | 338 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 0.87% | 0.78% | ||
Collectively evaluated | 50,237 | 50,328 | ||
Asset-specific | 344 | 370 | ||
Acquired Loans | 160 | 192 | ||
Total loans held for investment | 50,741 | 50,890 | ||
Other | ||||
Allowance for loan and lease losses by impairment methodology: | ||||
Collectively evaluated | 5 | 5 | ||
Asset-specific | 0 | 0 | ||
Acquired Loans | 0 | 0 | ||
Total allowance for loan and lease losses | 5 | 5 | 8 | 11 |
Loans held for investment by impairment methodology: | ||||
Allowance as a percentage of period-end loans held for investment | 4.48% | 4.68% | ||
Collectively evaluated | 104 | 111 | ||
Asset-specific | 0 | 0 | ||
Acquired Loans | 0 | 0 | ||
Total loans held for investment | $104 | $111 |
Allowance_for_Loan_and_Lease_L4
Allowance for Loan and Lease Losses Allowance for Loan and Lease Losses - Loss Sharing Arrangements (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Reduction in provision for loan and lease losses | ($935) | ($735) | |
Loss Sharing Agreement [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Reduction in Charge-offs due to loss sharing agreements | 44 | 42 | |
Reduction in provision for loan and lease losses | 57 | 35 | |
Expected reimbursement netted in allowance for loan losses | $156 | $143 |
Variable_Interest_Entities_and2
Variable Interest Entities and Securitizations - Carrying Amount of Assets and Liabilities of Variable Interest Entities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | $34,556 | $37,157 |
Carrying Amount of Liabilities, Consolidated | 13,525 | 12,449 |
Carrying Amount of Assets, Unconsolidated | 3,795 | 3,796 |
Carrying Amount of Liabilities, Unconsolidated | 491 | 519 |
Maximum exposure to loss | 4,464 | 4,451 |
Affordable housing entities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 0 | 0 |
Carrying Amount of Liabilities, Consolidated | 0 | 0 |
Carrying Amount of Assets, Unconsolidated | 3,502 | 3,500 |
Carrying Amount of Liabilities, Unconsolidated | 463 | 488 |
Maximum exposure to loss | 3,502 | 3,500 |
Entities that provide capital to low-income and rural communities | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 384 | 374 |
Carrying Amount of Liabilities, Consolidated | 100 | 99 |
Carrying Amount of Assets, Unconsolidated | 0 | 1 |
Carrying Amount of Liabilities, Unconsolidated | 0 | 0 |
Maximum exposure to loss | 0 | 1 |
Other | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 0 | 4 |
Carrying Amount of Liabilities, Consolidated | 0 | 0 |
Carrying Amount of Assets, Unconsolidated | 70 | 74 |
Carrying Amount of Liabilities, Unconsolidated | 0 | 0 |
Maximum exposure to loss | 70 | 74 |
Total VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 384 | 378 |
Carrying Amount of Liabilities, Consolidated | 100 | 99 |
Carrying Amount of Assets, Unconsolidated | 3,572 | 3,575 |
Carrying Amount of Liabilities, Unconsolidated | 463 | 488 |
Maximum exposure to loss | 3,572 | 3,575 |
Credit card loan securitizations | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 34,172 | 36,779 |
Carrying Amount of Liabilities, Consolidated | 13,425 | 12,350 |
Carrying Amount of Assets, Unconsolidated | 0 | 0 |
Carrying Amount of Liabilities, Unconsolidated | 0 | 0 |
Maximum exposure to loss | 0 | 0 |
Home loan | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 0 | 0 |
Carrying Amount of Liabilities, Consolidated | 0 | 0 |
Carrying Amount of Assets, Unconsolidated | 223 | 221 |
Carrying Amount of Liabilities, Unconsolidated | 28 | 31 |
Maximum exposure to loss | 892 | 876 |
Total securitization-related VIEs | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount of Assets, Consolidated | 34,172 | 36,779 |
Carrying Amount of Liabilities, Consolidated | 13,425 | 12,350 |
Carrying Amount of Assets, Unconsolidated | 223 | 221 |
Carrying Amount of Liabilities, Unconsolidated | 28 | 31 |
Maximum exposure to loss | $892 | $876 |
Variable_Interest_Entities_and3
Variable Interest Entities and Securitizations - External Debt and Receivable Balances of Securitization Programs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Variable Interest Entity, Primary Beneficiary | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, non-mortgage | $12,717 | $11,624 |
Receivables in the trust, non-mortgage | 33,938 | 36,545 |
Cash balance of spread or reserve accounts, non-mortgage | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Option ARM | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, mortgage | 1,971 | 2,026 |
Receivables in the trust, mortgage | 2,037 | 2,094 |
Cash balance of spread or reserve accounts, mortgage | 8 | 8 |
Variable Interest Entity, Not Primary Beneficiary | GreenPoint HELOCs | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, mortgage | 90 | 95 |
Receivables in the trust, mortgage | 84 | 89 |
Variable Interest Entity, Not Primary Beneficiary | GreenPoint Manufactured Housing | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Securities held by third-party investors, mortgage | 862 | 887 |
Receivables in the trust, mortgage | 868 | 893 |
Cash balance of spread or reserve accounts, mortgage | $145 | $143 |
Variable_Interest_Entities_and4
Variable Interest Entities and Securitizations - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||
Funded HELOCs advances | $30,000,000 | $30,000,000 | |
Unfunded commitment on residual interests on trusts | 6,000,000 | 6,000,000 | |
Maximum exposure to loss | 4,464,000,000 | 4,451,000,000 | |
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 86,000,000 | 74,000,000 | |
Affordable Housing Tax Credits And Other Tax Benefits, Amount | 102,000,000 | 90,000,000 | |
Amortization Method Qualified Affordable Housing Project Investments | 3,200,000,000 | 3,200,000,000 | |
Qualified Affordable Housing Project Investments, Commitment | 1,200,000,000 | ||
Carrying amounts of assets, unconsolidated | 3,795,000,000 | 3,796,000,000 | |
VIEs consolidated assets | 34,556,000,000 | 37,157,000,000 | |
Affordable housing entities | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss | 3,502,000,000 | 3,500,000,000 | |
Carrying amounts of assets, unconsolidated | 3,502,000,000 | 3,500,000,000 | |
Total assets of the unconsolidated VIE investment funds | 10,200,000,000 | 10,200,000,000 | |
VIEs consolidated assets | 0 | 0 | |
Entities that provide capital to low-income and rural communities | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss | 0 | 1,000,000 | |
Carrying amounts of assets, unconsolidated | 0 | 1,000,000 | |
VIEs consolidated assets | 384,000,000 | 374,000,000 | |
Other | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss | 70,000,000 | 74,000,000 | |
Carrying amounts of assets, unconsolidated | 70,000,000 | 74,000,000 | |
VIEs consolidated assets | 0 | 4,000,000 | |
Other VIE assets held in trust | 149,000,000 | 159,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | Option ARM | |||
Variable Interest Entity [Line Items] | |||
Securities held by third-party investors, mortgage | 1,971,000,000 | 2,026,000,000 | |
Unpaid principal balance of securitization trusts | 2,037,000,000 | 2,094,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | GreenPoint HELOCs | |||
Variable Interest Entity [Line Items] | |||
Securities held by third-party investors, mortgage | 90,000,000 | 95,000,000 | |
Unpaid principal balance of securitization trusts | 84,000,000 | 89,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | GreenPoint Manufactured Housing | |||
Variable Interest Entity [Line Items] | |||
Securities held by third-party investors, mortgage | 862,000,000 | 887,000,000 | |
Unpaid principal balance of securitization trusts | 868,000,000 | 893,000,000 | |
Maximum exposure to loss | $420,000,000 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Components (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Schedule of Intangible Assets by Major Class [Line Items] | |||
Goodwill | $13,978,000,000 | $13,978,000,000 | |
Goodwill, Gross | 13,978,000,000 | 13,978,000,000 | |
Intangible Assets, Gross (Excluding Goodwill) | 4,157,000,000 | 4,195,000,000 | |
Accumulated Amortization | -2,945,000,000 | -2,879,000,000 | |
Intangible assets | 1,212,000,000 | 1,316,000,000 | |
Total goodwill and other intangible assets, Net Carrying Value | 15,190,000,000 | 15,294,000,000 | |
Intangible Assets Gross Including Goodwill | 18,135,000,000 | 18,173,000,000 | |
Consumer MSRs | 53,000,000 | 53,000,000 | |
Commercial MSRs | 177,000,000 | 171,000,000 | |
Commercial MSR, Accumulated Amortization | -30,000,000 | -24,000,000 | |
Commercial MSRs | 147,000,000 | 147,000,000 | |
Total MSRs, Gross | 230,000,000 | 224,000,000 | |
Total MSRs, Net | 200,000,000 | 200,000,000 | |
Indefinite lived assets | 4,000,000 | 4,000,000 | |
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance | 0 | 0 | |
MSRs impaired | 0 | 0 | |
Amortization of Intangibles | 110,000,000 | 143,000,000 | |
PCCR intangibles | |||
Schedule of Intangible Assets by Major Class [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 2,147,000,000 | 2,124,000,000 | |
Accumulated Amortization | -1,235,000,000 | -1,152,000,000 | |
Intangible assets | 912,000,000 | 972,000,000 | |
Amortization of Intangibles | 84,000,000 | 98,000,000 | |
Core deposit intangibles | |||
Schedule of Intangible Assets by Major Class [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 1,771,000,000 | 1,771,000,000 | |
Accumulated Amortization | -1,596,000,000 | -1,569,000,000 | |
Intangible assets | 175,000,000 | 202,000,000 | |
Amortization of Intangibles | 26,000,000 | 36,000,000 | |
Other Intangible Assets [Member] | |||
Schedule of Intangible Assets by Major Class [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 239,000,000 | 300,000,000 | |
Accumulated Amortization | -114,000,000 | -158,000,000 | |
Intangible assets | $125,000,000 | $142,000,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Goodwill Attributable to Each Business Segments (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $13,978 |
Acquisitions | 5 |
Other adjustments | -5 |
Goodwill, Ending Balance | 13,978 |
Credit Card | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 5,001 |
Acquisitions | 0 |
Other adjustments | -5 |
Goodwill, Ending Balance | 4,996 |
Consumer Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 4,593 |
Acquisitions | 5 |
Other adjustments | 0 |
Goodwill, Ending Balance | 4,598 |
Commercial Banking | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 4,384 |
Acquisitions | 0 |
Other adjustments | 0 |
Goodwill, Ending Balance | $4,384 |
Deposits_and_Borrowings_Additi
Deposits and Borrowings - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Deposits And Borrowings [Line Items] | |||
Securitized debt obligations | $12,717,000,000 | $11,624,000,000 | |
Issuance of securitized debt obligations | 1,300,000,000 | ||
Maturities of secured debt | 175,000,000 | ||
Senior and subordinated notes | 20,559,000,000 | 18,684,000,000 | |
Fair value hedging losses | 303,000,000 | 179,000,000 | |
Repayments of unsecured debt | 1,250,000,000 | 275,000,000 | |
Advances from Federal Home Loan Banks | 6,800,000,000 | 17,300,000,000 | |
Other Assets | |||
Deposits And Borrowings [Line Items] | |||
Investment in FHLB stock | 1,500,000,000 | 2,000,000,000 | |
Senior notes | Total unsecured senior debt | |||
Deposits And Borrowings [Line Items] | |||
Proceeds from issuance of unsecured debt | 3,000,000,000 | ||
Senior notes | Floating unsecured senior debt | |||
Deposits And Borrowings [Line Items] | |||
Proceeds from issuance of unsecured debt | 400,000,000 | ||
Senior notes | Fixed unsecured senior debt | |||
Deposits And Borrowings [Line Items] | |||
Proceeds from issuance of unsecured debt | $2,600,000,000 |
Deposits_and_Borrowings_Deposi
Deposits and Borrowings - Deposits and Short-term Borrowings (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | |||
Deposits: | |||
Non-interest bearing deposits | $25,232 | $25,081 | |
Interest-bearing deposits | 185,208 | 180,467 | |
Total deposits | 210,440 | 205,548 | 208,324 |
Short-term Debt [Line Items] | |||
Short-term borrowings | 6,683 | 17,080 | |
Federal funds purchased and securities loaned or sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 933 | 880 | |
FHLB advances | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $5,750 | $16,200 |
Deposits_and_Borrowings_LongTe
Deposits and Borrowings - Long-Term Debt (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $34,346 | $31,377 |
Borrowings | 41,029 | 48,457 |
Securitized debt obligations | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 0.21% | |
Interest rate, maximum | 5.75% | |
Weighted average interest rate | 1.35% | |
Long-term debt | 12,717 | 11,624 |
Total senior and subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,559 | 18,684 |
Senior notes | Total unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.60% | |
Long-term debt | 17,904 | 16,054 |
Senior notes | Fixed unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 1.00% | |
Interest rate, maximum | 6.75% | |
Weighted average interest rate | 2.73% | |
Long-term debt | 16,624 | 15,174 |
Senior notes | Floating unsecured senior debt | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 0.71% | |
Interest rate, maximum | 0.94% | |
Weighted average interest rate | 0.84% | |
Long-term debt | 1,280 | 880 |
Subordinated notes | Fixed unsecured subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 3.38% | |
Interest rate, maximum | 8.80% | |
Weighted average interest rate | 4.97% | |
Long-term debt | 2,655 | 2,630 |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 0.22% | |
Interest rate, maximum | 6.88% | |
Weighted average interest rate | 0.55% | |
Long-term debt | $1,070 | $1,069 |
Deposits_and_Borrowings_Schedu
Deposits and Borrowings - Schedule of Components of Interest Expense on Short-Term Borrowings and Long-Term Debt (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Short-term borrowings: | ||
Federal funds purchased and securities loaned or sold under agreements to repurchase | $0 | $0 |
FHLB advances | 8 | 6 |
Total short-term borrowings | 8 | 6 |
Long-term debt: | ||
Securitized debt obligations | 33 | 38 |
Senior and subordinated notes | 79 | 77 |
Other long-term borrowings | 7 | 6 |
Total long-term debt | 119 | 121 |
Total interest expense | $127 | $127 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Collateral, Right to Reclaim Cash | $171 | $87 |
Additional collateral, variation margin (less than $1 million both periods) | 1 | 1 |
Additional collateral, independent margin | 60 | 65 |
Derivative net liability position (less than $1 million at Dec 31, 2014) | 1 | 1 |
Cash collateral from derivatives counterparties | 994 | 695 |
Securities received from derivatives counterparties, ability to re-pledge | 137 | 91 |
Cumulative counterparty credit risk valuation adjustment | 5 | 5 |
Cumulative credit risk valuation adjustment related to our credit quality (less than $1 million at Mar 31,2015) | 1 | 1 |
Gain (net after-tax) recorded in AOCI related to derivatives designated as cash flow hedges expected to be reclassified to earnings over the next 12 months | ($155) | |
Maximum length of time over which forecasted transactions were hedged, years | 5 years | |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative maturity year | 2020 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Notional and Fair Values of Derivative Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | $91,823 | $88,645 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Derivative Liabilities, Gross Amount | 422 | 339 |
Derivative Asset, Netting Adjustment | -666 | -624 |
Derivative Liability, Netting Adjustment | -165 | -164 |
Derivative Assets | 1,273 | 828 |
Derivative Liability | 257 | 175 |
Derivatives designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 59,551 | 57,015 |
Derivative Assets, Gross Amount | 1,405 | 996 |
Derivative Liabilities, Gross Amount | 61 | 59 |
Derivatives designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 52,003 | 48,993 |
Derivative Assets, Gross Amount | 1,014 | 702 |
Derivative Liabilities, Gross Amount | 60 | 57 |
Derivatives designated as accounting hedges | Interest rate contracts | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 26,793 | 24,543 |
Derivative Assets, Gross Amount | 577 | 480 |
Derivative Liabilities, Gross Amount | 47 | 39 |
Derivatives designated as accounting hedges | Interest rate contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 25,210 | 24,450 |
Derivative Assets, Gross Amount | 437 | 222 |
Derivative Liabilities, Gross Amount | 13 | 18 |
Derivatives designated as accounting hedges | Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 7,548 | 8,022 |
Derivative Assets, Gross Amount | 391 | 294 |
Derivative Liabilities, Gross Amount | 1 | 2 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 5,140 | 5,546 |
Derivative Assets, Gross Amount | 340 | 221 |
Derivative Liabilities, Gross Amount | 1 | 2 |
Derivatives designated as accounting hedges | Foreign exchange contracts | Net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 2,408 | 2,476 |
Derivative Assets, Gross Amount | 51 | 73 |
Derivative Liabilities, Gross Amount | 0 | 0 |
Derivatives not designated as accounting hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 32,272 | 31,630 |
Derivative Assets, Gross Amount | 534 | 456 |
Derivative Liabilities, Gross Amount | 361 | 280 |
Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 31,686 | 31,037 |
Derivative Assets, Gross Amount | 534 | 456 |
Derivative Liabilities, Gross Amount | 355 | 275 |
Derivatives not designated as accounting hedges | Interest rate contracts | MSRs | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 1,028 | 777 |
Derivative Assets, Gross Amount | 13 | 10 |
Derivative Liabilities, Gross Amount | 5 | 3 |
Derivatives not designated as accounting hedges | Interest rate contracts | Customer accommodation | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 27,918 | 27,646 |
Derivative Assets, Gross Amount | 485 | 413 |
Derivative Liabilities, Gross Amount | 329 | 251 |
Derivatives not designated as accounting hedges | Interest rate contracts | Other interest rate exposures | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 2,740 | 2,614 |
Derivative Assets, Gross Amount | 36 | 33 |
Derivative Liabilities, Gross Amount | 21 | 21 |
Derivatives not designated as accounting hedges | Other contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional or Contractual Amount | 586 | 593 |
Derivative Assets, Gross Amount | 0 | 0 |
Derivative Liabilities, Gross Amount | $6 | $5 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Offsetting Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives assets(1) | ||
Gross Amounts | $1,939 | $1,452 |
Derivative Asset, Offsetting Financial Instruments | -70 | -101 |
Derivative Assets, Offsetting Cash Collateral | -596 | -523 |
Derivative Assets | 1,273 | 828 |
Derivative Asset, Securities Not Netted | -121 | -80 |
Net Exposure | 1,152 | 748 |
Derivative Asset, Not Subject to Master Netting Arrangement | $650 | $360 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Offsetting Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives liabilities(1) | ||
Derivative Liabilities, Gross Amount | $422 | $339 |
Derivative Liability, Offsetting Financial Instruments | -70 | -101 |
Derivative Liability, Offsetting Cash Collateral | -95 | -63 |
Derivative Liability | 257 | 175 |
Derivative Liability, Securities Collateral Not Netted | 0 | 0 |
Net Exposure | 257 | 175 |
Derivative Liability, Not Subject to Master Netting Arrangement | 207 | 127 |
Repurchase agreements(2) | ||
Gross Amounts | 924 | 869 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Repurchase Agreement, Collateral, Right To Reclaim Cash, Offset | 0 | 0 |
Net Amounts as Recognized | 924 | 869 |
Offsetting Amounts Not Netted, Collateral Pledged | -924 | -869 |
Net Exposure | $0 | $0 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Net Gains (Losses) Recognized in Earnings Related to Derivatives in Fair Value Hedging Relationships and Free-Standing Derivatives (Details) (Other Non-Interest Income, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net derivative gains (losses) recognized in earnings | $15 | $21 |
Derivatives designated as accounting hedges | Fair value hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains recognized in earnings on derivatives | 153 | 31 |
Losses recognized in earnings on hedged items | -148 | -23 |
Net fair value hedge ineffectiveness gains | 5 | 8 |
Derivatives not designated as accounting hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | 10 | 13 |
Derivatives not designated as accounting hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | 12 | 16 |
Derivatives not designated as accounting hedges | Interest rate contracts | MSRs | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | 6 | 7 |
Derivatives not designated as accounting hedges | Interest rate contracts | Customer accommodation | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | 4 | 4 |
Derivatives not designated as accounting hedges | Interest rate contracts | Other interest rate exposures | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | 2 | 5 |
Derivatives not designated as accounting hedges | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) on derivatives not designated as accounting hedges | ($2) | ($3) |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Net Gains (Losses) Related to Derivatives Designated as Cash Flow Hedges and Net Investment Hedges (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recorded in AOCI | $280 | $40 |
Other Non-Interest Income | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Net derivative gains (losses) recognized in earnings | 15 | 21 |
Cash flow hedges | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recorded in AOCI | 205 | 40 |
Gains (losses) reclassified from AOCI into earnings | 43 | 21 |
Net derivative gains (losses) recognized in earnings | 45 | 22 |
Cash flow hedges | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recorded in AOCI | 210 | 45 |
Cash flow hedges | Interest rate contracts | Interest Income (Expense) | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) reclassified from AOCI into earnings | 47 | 26 |
Cash flow hedges | Interest rate contracts | Other Non-Interest Income | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recognized in earnings due to ineffectiveness | 2 | 1 |
Cash flow hedges | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recorded in AOCI | -5 | -5 |
Cash flow hedges | Foreign exchange contracts | Other Non-Interest Income | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) reclassified from AOCI into earnings | -4 | -5 |
Net investment hedges | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Gains (losses) recorded in AOCI | $75 | $0 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Preferred Stock (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Class of Stock [Line Items] | ||
Depository Share, Percent Interest in Preferred Stock | 0.025 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $1,822 | $1,822 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Non-cumulative Fixed Dividend Rate per Annum (as percent) | 6.00% | |
Redemption Price per Depositary Share (in dollars per share) | $25 | |
Number of Depositary Shares (in shares) | 35,000,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | 853 | 853 |
Series C Preferred Stock | ||
Class of Stock [Line Items] | ||
Non-cumulative Fixed Dividend Rate per Annum (as percent) | 6.25% | |
Redemption Price per Depositary Share (in dollars per share) | $25 | |
Number of Depositary Shares (in shares) | 20,000,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | 484 | 484 |
Series D Preferred Stock | ||
Class of Stock [Line Items] | ||
Non-cumulative Fixed Dividend Rate per Annum (as percent) | 6.70% | |
Redemption Price per Depositary Share (in dollars per share) | $25 | |
Number of Depositary Shares (in shares) | 20,000,000 | |
Preferred Stock, Including Additional Paid in Capital, Net of Discount | $485 | $485 |
Stockholders_Equity_Change_in_
Stockholders' Equity - Change in AOCI Gain (Loss) by Component (Net of Tax) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | ($430) | ($872) |
Other comprehensive income (loss) before reclassifications | 234 | 176 |
Net realized (gains) losses reclassified from AOCI into earnings | -16 | -14 |
Other comprehensive income, net of tax | 218 | 162 |
AOCI ending balance | -212 | -710 |
Accumulated Net Unrealized Investment Gain (Loss) | Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | 410 | 106 |
Other comprehensive income (loss) before reclassifications | 114 | 149 |
Net realized (gains) losses reclassified from AOCI into earnings | 8 | -5 |
Other comprehensive income, net of tax | 122 | 144 |
AOCI ending balance | 532 | 250 |
Accumulated Net Unrealized Investment Gain (Loss) | Securities Held to Maturity | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | -821 | -897 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Net realized (gains) losses reclassified from AOCI into earnings | 20 | 13 |
Other comprehensive income, net of tax | 20 | 13 |
AOCI ending balance | -801 | -884 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | 10 | -110 |
Other comprehensive income (loss) before reclassifications | 205 | 40 |
Net realized (gains) losses reclassified from AOCI into earnings | -43 | -21 |
Other comprehensive income, net of tax | 162 | 19 |
AOCI ending balance | 172 | -91 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | -8 | 40 |
Other comprehensive income (loss) before reclassifications | -84 | -13 |
Net realized (gains) losses reclassified from AOCI into earnings | 0 | 0 |
Other comprehensive income, net of tax | -84 | -13 |
AOCI ending balance | -92 | 27 |
Other | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
AOCI beginning balance | -21 | -11 |
Other comprehensive income (loss) before reclassifications | -1 | 0 |
Net realized (gains) losses reclassified from AOCI into earnings | -1 | -1 |
Other comprehensive income, net of tax | -2 | -1 |
AOCI ending balance | ($23) | ($12) |
Stockholders_Equity_Reclassifi
Stockholders' Equity - Reclassifications from AOCI (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income-other | $153 | $111 |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | 2 | 13 |
Non-interest income - OTTI | -15 | -5 |
Interest income - Other | 4,576 | 4,350 |
Income from continuing operations before income taxes | 1,663 | 1,703 |
Income tax (benefit) | 529 | 579 |
Net income | 1,153 | 1,154 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 16 | 14 |
Accumulated Net Unrealized Investment Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income [Member] | Securities Available for Sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income-other | 2 | |
Non-interest income - OTTI | -15 | |
Income from continuing operations before income taxes | -13 | 8 |
Income tax (benefit) | -5 | 3 |
Net income | -8 | 5 |
Accumulated Net Unrealized Investment Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income [Member] | Securities Held to Maturity | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income-other | -33 | -28 |
Income tax (benefit) | -13 | -15 |
Net income | -20 | -13 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income taxes | 68 | 34 |
Income tax (benefit) | 25 | 13 |
Net income | 43 | 21 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income - Other | 75 | 42 |
Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-interest income-other | -7 | -8 |
Other | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income taxes | 1 | 1 |
Income tax (benefit) | 0 | 0 |
Net income | $1 | $1 |
Stockholders_Equity_Components
Stockholders' Equity - Components of Other Comprehensive Income Loss and Related Tax Impact (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Before Tax | ||
Net unrealized gains on securities available for sale | $190 | $229 |
Net changes in securities held to maturity | 33 | 28 |
Net unrealized gains on cash flow hedges | 258 | 30 |
Foreign currency translation adjustments | -41 | -13 |
Other | -4 | -1 |
Other comprehensive income before taxes | 436 | 273 |
Provision (Benefit) | ||
Net unrealized gains on securities available for sale | 68 | 85 |
Net changes in securities held to maturity | 13 | 15 |
Net unrealized gains on cash flow hedges | 96 | 11 |
Foreign currency translation adjustments | 43 | 0 |
Other | -2 | 0 |
Other comprehensive income (loss), provision (benefit) | 218 | 111 |
After Tax | ||
Net unrealized gains on securities available for sale | 122 | 144 |
Net changes in securities held to maturity | 20 | 13 |
Net unrealized gains on cash flow hedges | 162 | 19 |
Foreign currency translation adjustments | -84 | -13 |
Other | -2 | -1 |
Other comprehensive income, net of tax | $218 | $162 |
Earnings_Per_Common_Share_Sche
Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic earnings per common share: | ||
Income from continuing operations, net of tax | $1,134 | $1,124 |
Income from discontinued operations, net of tax | 19 | 30 |
Net income | 1,153 | 1,154 |
Dividends and undistributed earnings allocated to participating securities | -6 | -5 |
Preferred stock dividends | -32 | -13 |
Net income available to common stockholders | 1,115 | 1,136 |
Net income from continuing operations (in dollars per share) | $2 | $1.94 |
Income (loss) from discontinued operations (in dollars per share) | $0.03 | $0.05 |
Net income per basic common share (in dollars per share) | $2.03 | $1.99 |
Weighted Average Number of Shares Outstanding, Basic | 550.2 | 571 |
Diluted earnings per common share: | ||
Net income available to common stockholders | $1,115 | $1,136 |
Net income from continuing operations (in dollars per share) | $1.97 | $1.91 |
Income (loss) from discontinued operations (in dollars per share) | $0.03 | $0.05 |
Net income per diluted common share (in dollars per share) | $2 | $1.96 |
Effect of dilutive securities: | ||
Stock options | 2.6 | 2.4 |
Other contingently issuable shares | 1.5 | 1.5 |
Warrants | 2.9 | 5.4 |
Total effect of dilutive securities | 7 | 9.3 |
Total weighted-average diluted shares outstanding | 557.2 | 580.3 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 2,000,000 | 4,600,000 |
Minimum exercise price range | $70.96 | $70.96 |
Maximum exercise price range | $88.81 | $88.81 |
Warrant | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Warrants outstanding | 6,300,000 |
Fair_Value_Measurement_Schedul
Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Securities available for sale: | ||
Securities available for sale | $39,321 | $39,508 |
Other assets: | ||
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 422 | 339 |
Derivative Asset | 1,273 | 828 |
Derivative Liabilities | 257 | 175 |
Cumulative credit risk valuation adjustment related to derivative positions | 5 | 4 |
U.S. Treasury securities | ||
Securities available for sale: | ||
Securities available for sale | 4,440 | 4,118 |
Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale: | ||
Securities available for sale | 598 | 800 |
RMBS | ||
Securities available for sale: | ||
Securities available for sale | 26,048 | 25,381 |
CMBS | ||
Securities available for sale: | ||
Securities available for sale | 5,429 | 5,519 |
Other ABS | ||
Securities available for sale: | ||
Securities available for sale | 2,028 | 2,662 |
Other securities | ||
Securities available for sale: | ||
Securities available for sale | 778 | 1,028 |
Level 1 | ||
Securities available for sale: | ||
Securities available for sale | 4,552 | 4,228 |
Other assets: | ||
Derivative Assets, Gross Amount | 3 | 4 |
Retained interests in securitizations | 0 | 0 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 3 | 3 |
Level 2 | ||
Securities available for sale: | ||
Securities available for sale | 33,843 | 34,075 |
Other assets: | ||
Derivative Assets, Gross Amount | 1,863 | 1,382 |
Retained interests in securitizations | 0 | 0 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 371 | 293 |
Level 3 | ||
Securities available for sale: | ||
Securities available for sale | 926 | 1,205 |
Other assets: | ||
Derivative Assets, Gross Amount | 73 | 66 |
Retained interests in securitizations | 223 | 221 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 48 | 43 |
Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available for sale | 39,321 | 39,508 |
Other assets: | ||
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Retained interests in securitizations | 223 | 221 |
Total assets | 41,536 | 41,234 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 422 | 339 |
Total liabilities | 422 | 339 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities | ||
Securities available for sale: | ||
Securities available for sale | 4,440 | 4,118 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale: | ||
Securities available for sale | 598 | 800 |
Fair Value, Measurements, Recurring [Member] | RMBS | ||
Securities available for sale: | ||
Securities available for sale | 26,048 | 25,381 |
Fair Value, Measurements, Recurring [Member] | CMBS | ||
Securities available for sale: | ||
Securities available for sale | 5,429 | 5,519 |
Fair Value, Measurements, Recurring [Member] | Other ABS | ||
Securities available for sale: | ||
Securities available for sale | 2,028 | 2,662 |
Fair Value, Measurements, Recurring [Member] | Other securities | ||
Securities available for sale: | ||
Securities available for sale | 778 | 1,028 |
Fair Value, Measurements, Recurring [Member] | Level 1 | ||
Securities available for sale: | ||
Securities available for sale | 4,552 | 4,228 |
Other assets: | ||
Consumer MSRs | 0 | 0 |
Derivative Assets, Gross Amount | 3 | 4 |
Retained interests in securitizations | 0 | 0 |
Total assets | 4,555 | 4,232 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 3 | 3 |
Total liabilities | 3 | 3 |
Fair Value, Measurements, Recurring [Member] | Level 1 | U.S. Treasury securities | ||
Securities available for sale: | ||
Securities available for sale | 4,440 | 4,117 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale: | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | RMBS | ||
Securities available for sale: | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | CMBS | ||
Securities available for sale: | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Other ABS | ||
Securities available for sale: | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 | Other securities | ||
Securities available for sale: | ||
Securities available for sale | 112 | 111 |
Fair Value, Measurements, Recurring [Member] | Level 2 | ||
Securities available for sale: | ||
Securities available for sale | 33,843 | 34,075 |
Other assets: | ||
Consumer MSRs | 0 | 0 |
Derivative Assets, Gross Amount | 1,863 | 1,382 |
Retained interests in securitizations | 0 | 0 |
Total assets | 35,706 | 35,457 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 371 | 293 |
Total liabilities | 371 | 293 |
Fair Value, Measurements, Recurring [Member] | Level 2 | U.S. Treasury securities | ||
Securities available for sale: | ||
Securities available for sale | 0 | 1 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale: | ||
Securities available for sale | 426 | 467 |
Fair Value, Measurements, Recurring [Member] | Level 2 | RMBS | ||
Securities available for sale: | ||
Securities available for sale | 25,493 | 24,820 |
Fair Value, Measurements, Recurring [Member] | Level 2 | CMBS | ||
Securities available for sale: | ||
Securities available for sale | 5,255 | 5,291 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Other ABS | ||
Securities available for sale: | ||
Securities available for sale | 2,021 | 2,597 |
Fair Value, Measurements, Recurring [Member] | Level 2 | Other securities | ||
Securities available for sale: | ||
Securities available for sale | 648 | 899 |
Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Securities available for sale: | ||
Securities available for sale | 926 | 1,205 |
Other assets: | ||
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 73 | 66 |
Retained interests in securitizations | 223 | 221 |
Total assets | 1,275 | 1,545 |
Liabilities: | ||
Derivative Liabilities, Gross Amount | 48 | 43 |
Total liabilities | 48 | 43 |
Fair Value, Measurements, Recurring [Member] | Level 3 | U.S. Treasury securities | ||
Securities available for sale: | ||
Securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Corporate debt securities guaranteed by U.S. government agencies | ||
Securities available for sale: | ||
Securities available for sale | 172 | 333 |
Fair Value, Measurements, Recurring [Member] | Level 3 | RMBS | ||
Securities available for sale: | ||
Securities available for sale | 555 | 561 |
Fair Value, Measurements, Recurring [Member] | Level 3 | CMBS | ||
Securities available for sale: | ||
Securities available for sale | 174 | 228 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other ABS | ||
Securities available for sale: | ||
Securities available for sale | 7 | 65 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other securities | ||
Securities available for sale: | ||
Securities available for sale | $18 | $18 |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement Fair Value Measurement - Schedule of Level 3 Inputs Reconciliation for Assets (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Available-for-sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $1,205 | $3,330 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 7 | 22 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 12 | 42 |
Purchases | 0 | 920 |
Sales | -88 | -112 |
Issuances | 0 | 0 |
Settlements | -42 | -67 |
Transfers Into Level 3 | 85 | 202 |
Transfers Out of Level 3 | -253 | -1,120 |
Ending balance | 926 | 3,217 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 9 | 22 |
Corporate debt securities guaranteed by U.S. government agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 333 | 927 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | -2 | 0 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 5 | 10 |
Purchases | 0 | 0 |
Sales | -68 | -112 |
Issuances | 0 | 0 |
Settlements | -8 | -21 |
Transfers Into Level 3 | 0 | 64 |
Transfers Out of Level 3 | -88 | -116 |
Ending balance | 172 | 752 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 |
RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 561 | 1,304 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 8 | 20 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 8 | 28 |
Purchases | 0 | 886 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | -13 | -34 |
Transfers Into Level 3 | 85 | 57 |
Transfers Out of Level 3 | -94 | -534 |
Ending balance | 555 | 1,727 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 9 | 20 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 228 | 739 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 1 | 2 |
Purchases | 0 | 34 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | -21 | -11 |
Transfers Into Level 3 | 0 | 38 |
Transfers Out of Level 3 | -34 | -307 |
Ending balance | 174 | 495 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 |
Other ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 65 | 343 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 1 | 2 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | -2 | 2 |
Purchases | 0 | 0 |
Sales | -20 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | -1 |
Transfers Into Level 3 | 0 | 43 |
Transfers Out of Level 3 | -37 | -163 |
Ending balance | 7 | 226 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 2 |
Other securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 18 | 17 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 0 | 0 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Ending balance | 18 | 17 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 0 | 0 |
Consumer MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 53 | 69 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | -3 | -11 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 4 | 4 |
Settlements | -1 | -1 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Ending balance | 53 | 61 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | -3 | -11 |
Derivative assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 66 | 50 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 11 | 0 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 9 | 2 |
Settlements | -12 | -3 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | -1 | -1 |
Ending balance | 73 | 48 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | 11 | 0 |
Retained interest in securitizations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 221 | 199 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 2 | -2 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Ending balance | 223 | 197 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | $2 | ($2) |
Fair_Value_Measurement_Fair_Va1
Fair Value Measurement Fair Value Measurement - Schedule of Level 3 Inputs Reconciliation for Liabilities (Details) (Derivative liabilities, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $43 | $38 |
Total Gains or (Losses) (Realized/Unrealized), Included in Net Income | 10 | 2 |
Total Gains or (Losses) (Realized/Unrealized), Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 7 | 1 |
Settlements | -12 | -5 |
Transfers Into Level 3 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 |
Ending balance | 48 | 36 |
Net Unrealized Gains (Losses) Included in Net Income Related to Assets and Liabilities Still Held | $10 | $2 |
Fair_Value_Measurement_Schedul1
Fair Value Measurement - Schedule of Assets Measured at Fair Value on Recurring Basis Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 39,321 | 39,508 |
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 926 | 1,205 |
Derivative Assets, Gross Amount | 73 | 66 |
Retained interests in securitizations | 223 | 221 |
Level 3 | Retained interest in securitizations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Retained interests in securitizations | 223 | 221 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 39,321 | 39,508 |
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Retained interests in securitizations | 223 | 221 |
Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 926 | 1,205 |
Consumer MSRs | 53 | 53 |
Derivative Assets, Gross Amount | 73 | 66 |
Retained interests in securitizations | 223 | 221 |
Fair Value, Measurements, Recurring [Member] | Level 3 | RMBS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 555 | 561 |
Fair Value, Measurements, Recurring [Member] | Level 3 | RMBS | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 1.00% | 0.00% |
Constant prepayment rate (percent) | 0.00% | 0.00% |
Default rate (percent) | 0.00% | 0.00% |
Loss severity (percent) | 0.00% | 0.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | RMBS | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 22.00% | 18.00% |
Constant prepayment rate (percent) | 22.00% | 23.00% |
Default rate (percent) | 15.00% | 15.00% |
Loss severity (percent) | 85.00% | 85.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | RMBS | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 6.00% | 6.00% |
Constant prepayment rate (percent) | 4.00% | 4.00% |
Default rate (percent) | 5.00% | 5.00% |
Loss severity (percent) | 59.00% | 55.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | CMBS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 174 | 228 |
Fair Value, Measurements, Recurring [Member] | Level 3 | CMBS | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 1.00% | 1.00% |
Constant prepayment rate (percent) | 0.00% | 0.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | CMBS | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 2.00% | 4.00% |
Constant prepayment rate (percent) | 100.00% | 100.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | CMBS | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 2.00% | 1.00% |
Constant prepayment rate (percent) | 5.00% | 5.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 7 | 65 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other ABS | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 2.00% | 2.00% |
Constant prepayment rate (percent) | 0.00% | 0.00% |
Default rate (percent) | 1.00% | 1.00% |
Loss severity (percent) | 30.00% | 30.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other ABS | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 2.00% | 7.00% |
Constant prepayment rate (percent) | 0.00% | 3.00% |
Default rate (percent) | 1.00% | 10.00% |
Loss severity (percent) | 30.00% | 88.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Other ABS | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 2.00% | 5.00% |
Constant prepayment rate (percent) | 0.00% | 2.00% |
Default rate (percent) | 1.00% | 7.00% |
Loss severity (percent) | 30.00% | 71.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | U.S. government guaranteed debt and other securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Securities available for sale | 190 | 351 |
Fair Value, Measurements, Recurring [Member] | Level 3 | U.S. government guaranteed debt and other securities | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 1.00% | 1.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | U.S. government guaranteed debt and other securities | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 4.00% | 4.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | U.S. government guaranteed debt and other securities | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Yield (percent) | 3.00% | 3.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Consumer MSRs | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Consumer MSRs | 53 | 53 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Consumer MSRs | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Total prepayment rate (percent) | 9.00% | 12.00% |
Discount rate (percent) | 14.00% | 12.00% |
Option adjusted spread rate (percent) | 4.35% | 4.35% |
Servicing cost ($ per loan) | 93.18 | 93.18 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Consumer MSRs | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Total prepayment rate (percent) | 20.00% | 27.00% |
Discount rate (percent) | 14.00% | 12.00% |
Option adjusted spread rate (percent) | 15.00% | 15.00% |
Servicing cost ($ per loan) | 208.7 | 208.7 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Consumer MSRs | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Total prepayment rate (percent) | 18.00% | 18.00% |
Discount rate (percent) | 14.00% | 12.00% |
Option adjusted spread rate (percent) | 4.89% | 4.78% |
Servicing cost ($ per loan) | 100.45 | 100.63 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Assets, Gross Amount | 73 | 66 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative assets | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 2.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative assets | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 3.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative assets | Discounted cash flows | Weighted Average | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 2.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Retained interest in securitizations | Discounted cash flows | Minimum | ||
Fair Value Inputs [Abstract] | ||
Constant prepayment rate (percent) | 2.00% | 2.00% |
Default rate (percent) | 2.00% | 2.00% |
Loss severity (percent) | 16.00% | 19.00% |
Discount rate (percent) | 4.00% | 4.00% |
Life of receivables (months) | 24 months | 25 months |
Fair Value, Measurements, Recurring [Member] | Level 3 | Retained interest in securitizations | Discounted cash flows | Maximum | ||
Fair Value Inputs [Abstract] | ||
Constant prepayment rate (percent) | 11.00% | 13.00% |
Default rate (percent) | 6.00% | 8.00% |
Loss severity (percent) | 91.00% | 95.00% |
Discount rate (percent) | 11.00% | 9.00% |
Life of receivables (months) | 84 months | 72 months |
Fair_Value_Measurement_Fair_Va2
Fair Value Measurement Fair Value Measurement - Schedule of Liabilities Measured at Fair Value on Recurring Basis Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Derivative Liabilities, Gross Amount | 422 | 339 |
Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Derivative Liabilities, Gross Amount | 48 | 43 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Derivative Liabilities, Gross Amount | 422 | 339 |
Fair Value, Measurements, Recurring [Member] | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Derivative Liabilities, Gross Amount | 48 | 43 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative liabilities | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Derivative Liabilities, Gross Amount | 48 | 43 |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative liabilities | Minimum | Discounted cash flows | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 2.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative liabilities | Maximum | Discounted cash flows | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 3.00% |
Fair Value, Measurements, Recurring [Member] | Level 3 | Derivative liabilities | Weighted Average | Discounted cash flows | ||
Fair Value Inputs [Abstract] | ||
Swap rates (percent) | 2.00% | 2.00% |
Fair_Value_Measurement_Schedul2
Fair Value Measurement - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $1,273 | $828 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Loans held for sale | 1,358 | 650 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 202,522 | 207,104 |
Loans held for sale | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 63 | 121 |
Loans held for sale | 15 | 34 |
Other Assets, Fair Value Disclosure | 28 | 65 |
Total | 106 | 220 |
Nonrecurring | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed Properties and Repossessed Assets | 28 | 60 |
Long-Lived Assets | 0 | 5 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Total | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 0 | 0 |
Loans held for sale | 15 | 34 |
Other Assets, Fair Value Disclosure | 0 | 0 |
Total | 15 | 34 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans held for investment | 63 | 121 |
Loans held for sale | 0 | 0 |
Other Assets, Fair Value Disclosure | 28 | 65 |
Total | $91 | $186 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $1,273 | $828 |
Minimum | Loans Held for Investment | Appraisal Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-recoverable rate | 9.00% | 0.00% |
Maximum | Loans Held for Investment | Appraisal Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-recoverable rate | 74.00% | 74.00% |
Weighted Average | Loans Held for Investment | Appraisal Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-recoverable rate | 34.00% | 30.00% |
Fair_Value_Measurement_Schedul3
Fair Value Measurement - Schedule of Earnings Related to Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Assets: | ||
Loans held for investment | ($5) | ($9) |
Loans held for sale | 0 | -1 |
Other assets | -4 | -3 |
Total | ($9) | ($13) |
Fair_Value_Measurement_Schedul4
Fair Value Measurement - Schedule of Fair Value of Financial Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Financial assets: | ||
Securities available for sale | $39,321 | $39,508 |
Securities held to maturity | 24,653 | 23,634 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Financial liabilities: | ||
Derivative Liabilities, Gross Amount | 422 | 339 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 8,891 | 7,242 |
Restricted cash for securitization investors | 234 | 234 |
Securities available for sale | 4,552 | 4,228 |
Securities held to maturity | 199 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Derivative Assets, Gross Amount | 3 | 4 |
Retained interests in securitizations | 0 | 0 |
Financial liabilities: | ||
Non-interest bearing deposits | 25,232 | 25,081 |
Interest-bearing deposits | 0 | 0 |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 880 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Derivative Liabilities, Gross Amount | 3 | 3 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash for securitization investors | 0 | 0 |
Securities available for sale | 33,843 | 34,075 |
Securities held to maturity | 24,197 | 23,503 |
Net loans held for investment | 0 | 0 |
Loans held for sale | 1,358 | 650 |
Interest receivable | 1,078 | 1,079 |
Derivative Assets, Gross Amount | 1,863 | 1,382 |
Retained interests in securitizations | 0 | 0 |
Financial liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest-bearing deposits | 11,253 | 11,668 |
Securitized debt obligations | 12,826 | 11,745 |
Senior and subordinated notes | 20,967 | 19,083 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Other borrowings | 6,823 | 17,275 |
Interest payable | 195 | 254 |
Derivative Liabilities, Gross Amount | 371 | 293 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash for securitization investors | 0 | 0 |
Securities available for sale | 926 | 1,205 |
Securities held to maturity | 257 | 131 |
Net loans held for investment | 202,522 | 207,104 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Derivative Assets, Gross Amount | 73 | 66 |
Retained interests in securitizations | 223 | 221 |
Financial liabilities: | ||
Non-interest bearing deposits | 0 | 0 |
Interest-bearing deposits | 168,784 | 162,406 |
Securitized debt obligations | 0 | 0 |
Senior and subordinated notes | 0 | 0 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 0 | 0 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Derivative Liabilities, Gross Amount | 48 | 43 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 8,891 | 7,242 |
Restricted cash for securitization investors | 234 | 234 |
Securities available for sale | 39,321 | 39,508 |
Securities held to maturity | 23,241 | 22,500 |
Net loans held for investment | 199,573 | 203,933 |
Loans held for sale | 1,331 | 626 |
Interest receivable | 1,078 | 1,079 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Retained interests in securitizations | 223 | 221 |
Financial liabilities: | ||
Non-interest bearing deposits | 25,232 | 25,081 |
Interest-bearing deposits | 185,208 | 180,467 |
Securitized debt obligations | 12,717 | 11,624 |
Senior and subordinated notes | 20,599 | 18,684 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 880 |
Other borrowings | 6,820 | 17,269 |
Interest payable | 195 | 254 |
Derivative Liabilities, Gross Amount | 422 | 339 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 8,891 | 7,242 |
Restricted cash for securitization investors | 234 | 234 |
Securities available for sale | 39,321 | 39,508 |
Securities held to maturity | 24,653 | 23,634 |
Net loans held for investment | 202,522 | 207,104 |
Loans held for sale | 1,358 | 650 |
Interest receivable | 1,078 | 1,079 |
Derivative Assets, Gross Amount | 1,939 | 1,452 |
Retained interests in securitizations | 223 | 221 |
Financial liabilities: | ||
Non-interest bearing deposits | 25,232 | 25,081 |
Interest-bearing deposits | 180,037 | 174,074 |
Securitized debt obligations | 12,826 | 11,745 |
Senior and subordinated notes | 20,967 | 19,083 |
Federal funds purchased and securities loaned or sold under agreements to repurchase | 933 | 880 |
Other borrowings | 6,823 | 17,275 |
Interest payable | 195 | 254 |
Derivative Liabilities, Gross Amount | $422 | $339 |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Business_Segments_Schedule_of_
Business Segments - Schedule of Segment Results and Reconciliation (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Net interest income | $4,576 | $4,350 | |
Non-interest income | 1,071 | 1,020 | |
Total net revenue | 5,647 | 5,370 | |
Provision for credit losses | 935 | 735 | |
Amortization of intangibles | 110 | 143 | |
Other non-interest expense | 2,939 | 2,798 | |
Total non-interest expense | 3,049 | 2,932 | |
Income from continuing operations before income taxes | 1,663 | 1,703 | |
Income tax (benefit) | 529 | 579 | |
Income from continuing operations, net of tax | 1,134 | 1,124 | |
Loans held for investment | 203,978 | 192,941 | 208,316 |
Total deposits | 210,440 | 208,324 | 205,548 |
Operating Segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,666 | 2,525 | |
Non-interest income | 816 | 785 | |
Total net revenue | 3,482 | 3,310 | |
Provision for credit losses | 669 | 558 | |
Other non-interest expense | 1,692 | 1,628 | |
Total non-interest expense | 1,776 | 1,726 | |
Income from continuing operations before income taxes | 1,037 | 1,026 | |
Income tax (benefit) | 369 | 358 | |
Income from continuing operations, net of tax | 668 | 668 | |
Loans held for investment | 81,754 | 75,850 | |
Total deposits | 0 | 0 | |
Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 1,434 | 1,433 | |
Non-interest income | 158 | 150 | |
Total net revenue | 1,592 | 1,583 | |
Provision for credit losses | 206 | 140 | |
Other non-interest expense | 948 | 900 | |
Total non-interest expense | 970 | 930 | |
Income from continuing operations before income taxes | 416 | 513 | |
Income tax (benefit) | 150 | 183 | |
Income from continuing operations, net of tax | 266 | 330 | |
Loans held for investment | 71,379 | 70,727 | |
Total deposits | 172,502 | 171,529 | |
Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 461 | 421 | |
Non-interest income | 114 | 87 | |
Total net revenue | 575 | 508 | |
Provision for credit losses | 60 | 40 | |
Other non-interest expense | 268 | 249 | |
Total non-interest expense | 272 | 255 | |
Income from continuing operations before income taxes | 243 | 213 | |
Income tax (benefit) | 88 | 76 | |
Income from continuing operations, net of tax | 155 | 137 | |
Loans held for investment | 50,741 | 46,230 | |
Total deposits | 32,575 | 31,485 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 15 | -29 | |
Non-interest income | -17 | -2 | |
Total net revenue | -2 | -31 | |
Provision for credit losses | 0 | -3 | |
Other non-interest expense | 31 | 21 | |
Total non-interest expense | 31 | 21 | |
Income from continuing operations before income taxes | -33 | -49 | |
Income tax (benefit) | -78 | -38 | |
Income from continuing operations, net of tax | 45 | -11 | |
Loans held for investment | 104 | 134 | |
Total deposits | 5,363 | 5,310 | |
Purchased credit card relationship intangibles (“PCCRâ€) | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 84 | 98 | |
Purchased credit card relationship intangibles (“PCCRâ€) | Operating Segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 84 | 98 | |
Purchased credit card relationship intangibles (“PCCRâ€) | Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 0 | 0 | |
Purchased credit card relationship intangibles (“PCCRâ€) | Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 0 | 0 | |
Purchased credit card relationship intangibles (“PCCRâ€) | Other | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 0 | 0 | |
Core deposit intangibles | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 26 | 36 | |
Core deposit intangibles | Operating Segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 0 | 0 | |
Core deposit intangibles | Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 22 | 30 | |
Core deposit intangibles | Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 4 | 6 | |
Core deposit intangibles | Other | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 0 | 0 | |
PCCR and core deposits | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 110 | 134 | |
PCCR and core deposits | Operating Segments | Credit Card | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 84 | 98 | |
PCCR and core deposits | Operating Segments | Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 22 | 30 | |
PCCR and core deposits | Operating Segments | Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | 4 | 6 | |
PCCR and core deposits | Other | |||
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | $0 | $0 |
Commitments_Contingencies_Guar2
Commitments, Contingencies, Guarantees, and Others - Guarantees, LOC and Loss Sharing, U.K Cross Sell (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Payment Protection Insurance | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $92,000,000 | $116,000,000 |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of standby letters of credit and commercial letters of credit | 2,000,000,000 | 2,100,000,000 |
Other Liabilities | Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | 3,000,000 | 3,000,000 |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Guarantees, maximum exposure | 13,000,000 | 14,000,000 |
Financial Standby Letter of Credit | Other Liabilities | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | 9,000,000 | 12,000,000 |
Loss Sharing Agreement | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | $37,000,000 | $36,000,000 |
Commitments_Contingencies_Guar3
Commitments, Contingencies, Guarantees, and Others - Schedule of Unpaid Principal Balance of Mortgage Loans Originated and Sold to Third Parties Based on Category of Purchaser (Details) (USD $) | 49 Months Ended | ||
In Billions, unless otherwise specified | Feb. 28, 2009 | Mar. 31, 2015 | Dec. 31, 2014 |
Subsidiary | |||
Loss Contingencies [Line Items] | |||
Number of subsidiaries acquired that originated residential mortgage loans | 3 | ||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Losses realized by third party | $22 | ||
Subsidiaries | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Estimated Unpaid Principal Balance | 22 | 23 | |
Unpaid principal balance, delinquent 90 days or greater | 4 | ||
Subsidiaries | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 111 | ||
Subsidiaries | 2008 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 4 | ||
Subsidiaries | 2007 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 21 | ||
Subsidiaries | 2006 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 41 | ||
Subsidiaries | 2005 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 45 | ||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Estimated Unpaid Principal Balance | 2 | 3 | |
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 11 | ||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2008 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 1 | ||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2007 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 4 | ||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2006 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 3 | ||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2005 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 3 | ||
Subsidiaries | Insured Securitizations | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Estimated Unpaid Principal Balance | 4 | 4 | |
Subsidiaries | Insured Securitizations | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 20 | ||
Percent covered by bond insurance | 48.00% | ||
Original principal balance, sold to third party with repurchase requests | 16 | ||
Original principal balance, sold to third party without repurchase requests | 4 | ||
Subsidiaries | Insured Securitizations | 2008 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 0 | ||
Subsidiaries | Insured Securitizations | 2007 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 2 | ||
Subsidiaries | Insured Securitizations | 2006 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 8 | ||
Subsidiaries | Insured Securitizations | 2005 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 10 | ||
Subsidiaries | Uninsured Securitizations and Other | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Estimated Unpaid Principal Balance | 16 | 16 | |
Subsidiaries | Uninsured Securitizations and Other | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 80 | ||
Subsidiaries | Uninsured Securitizations and Other | 2008 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 3 | ||
Subsidiaries | Uninsured Securitizations and Other | 2007 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 15 | ||
Subsidiaries | Uninsured Securitizations and Other | 2006 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 30 | ||
Subsidiaries | Uninsured Securitizations and Other | 2005 | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 32 | ||
Subsidiaries | Uninsured Securitizations | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 48 | ||
Subsidiaries | Private Investors | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 22 | ||
Subsidiaries | Various Known and Unknown Investors | 2005 to 2008 Year | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Original Principal Balance | 10 | ||
Representation and Warranty Liability [Member] | Subsidiaries | |||
Mortgage Loans on Real Estate, Sold to Third Party [Abstract] | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $2.10 | $2.10 |
Commitments_Contingencies_Guar4
Commitments, Contingencies, Guarantees, and Others - Schedule of Open Claims in Pipeline (Details) (Subsidiaries, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Unresolved Repurchase Claims [Roll Forward] | ||
Open claims, beginning balance | $2,512 | $2,825 |
Gross new demands received | 7 | 764 |
Loans repurchased/made whole | -4 | -36 |
Demands rescinded | -11 | -1,041 |
Open claims, ending balance | 2,504 | 2,512 |
Government-sponsored enterprises (“GSEsâ€) | ||
Unresolved Repurchase Claims [Roll Forward] | ||
Open claims, beginning balance | 16 | 89 |
Gross new demands received | 6 | 22 |
Loans repurchased/made whole | -3 | -31 |
Demands rescinded | -2 | -64 |
Open claims, ending balance | 17 | 16 |
Insured Securitizations | ||
Unresolved Repurchase Claims [Roll Forward] | ||
Open claims, beginning balance | 649 | 1,614 |
Gross new demands received | 0 | 0 |
Loans repurchased/made whole | 0 | 0 |
Demands rescinded | -1 | -965 |
Open claims, ending balance | 648 | 649 |
Uninsured Securitizations and Other | ||
Unresolved Repurchase Claims [Roll Forward] | ||
Open claims, beginning balance | 1,847 | 1,122 |
Gross new demands received | 1 | 742 |
Loans repurchased/made whole | -1 | -5 |
Demands rescinded | -8 | -12 |
Open claims, ending balance | $1,839 | $1,847 |
Commitments_Contingencies_Guar5
Commitments, Contingencies, Guarantees, and Others - Schedule of Changes in Representation and Warranty Reserve (Details) (Subsidiaries, Representation and Warranty Liability [Member], USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $2,100,000,000 | $2,100,000,000 | |
Loss Contingency Accrual [Roll Forward] | |||
Representation and warranty repurchase reserve, beginning of period | 731,000,000 | 1,172,000,000 | |
Provision (benefit) for mortgage representation and warranty losses | 18,000,000 | 33,000,000 | |
Net realized losses | -40,000,000 | -11,000,000 | |
Representation and warranty repurchase reserve, end of period | 673,000,000 | 1,128,000,000 | |
Continuing Operations | |||
Loss Contingency Accrual [Roll Forward] | |||
Provision (benefit) for mortgage representation and warranty losses | -1,000,000 | -14,000,000 | |
Discontinued Operations | |||
Loss Contingency Accrual [Roll Forward] | |||
Provision (benefit) for mortgage representation and warranty losses | $19,000,000 | $47,000,000 |
Commitments_Contingencies_Guar6
Commitments, Contingencies, Guarantees, and Others - Schedule of Allocation of Representation and Warranty Reserves (Details) (USD $) | 49 Months Ended | 3 Months Ended | |||
Feb. 28, 2009 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary | |||||
Loss Contingencies [Line Items] | |||||
Number of subsidiaries acquired that originated residential mortgage loans | 3 | ||||
Subsidiaries | 2005 to 2008 Year | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | $111,000,000,000 | ||||
Subsidiaries | GSEs and Active Insured Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 27,000,000,000 | ||||
Subsidiaries | Inactive Insured Securitizations and Others | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 84,000,000,000 | ||||
Subsidiaries | Government-sponsored enterprises (“GSEsâ€) | 2005 to 2008 Year | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 11,000,000,000 | ||||
Subsidiaries | Insured Securitizations | 2005 to 2008 Year | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 20,000,000,000 | ||||
Original principal balance, sold to third party with repurchase requests | 16,000,000,000 | ||||
Original principal balance, sold to third party without repurchase requests | 4,000,000,000 | ||||
Subsidiaries | Uninsured Securitizations | 2005 to 2008 Year | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 48,000,000,000 | ||||
Subsidiaries | Private Investors | 2005 to 2008 Year | |||||
Loss Contingencies [Line Items] | |||||
Loans sold 2005 to 2008 | 22,000,000,000 | ||||
Subsidiaries | Representation and Warranty Liability [Member] | |||||
Loss Contingencies [Line Items] | |||||
Reserve liability | 673,000,000 | 1,128,000,000 | 731,000,000 | 1,172,000,000 | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 2,100,000,000 | 2,100,000,000 | |||
Net realized losses | 40,000,000 | 11,000,000 | |||
Subsidiaries | Representation and Warranty Liability [Member] | GSEs and Active Insured Securitizations | |||||
Loss Contingencies [Line Items] | |||||
Reserve liability | 492,000,000 | 499,000,000 | |||
Subsidiaries | Representation and Warranty Liability [Member] | Inactive Insured Securitizations and Others | |||||
Loss Contingencies [Line Items] | |||||
Reserve liability | $181,000,000 | $232,000,000 |
Commitments_Contingencies_Guar7
Commitments, Contingencies, Guarantees, and Others - Litigation (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2008 | Apr. 30, 2014 | Feb. 28, 2009 | Jul. 31, 2012 | Mar. 31, 2015 | Jul. 31, 2013 | |
claim | claim | patent | Contract | summon | |||||
MortgageLoan | trust | ||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $200,000,000 | ||||||||
Interchange Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Indemnification guarantees fair value | 0 | ||||||||
Intellectual Ventures Corp | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of claims dismissed | 1 | 2 | |||||||
Pending Litigation | Interchange Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, attributable to reporting entity and third party | 6,600,000,000 | ||||||||
Litigation settlement, attributable to reporting entity and third party, percent of transactions | 0.10% | ||||||||
Litigation settlement, attributable to reporting entity and third party, period of payment of settlement | 8 months | ||||||||
Loss accrual increase (decrease) | -91,000,000 | ||||||||
Pending Litigation | Intellectual Ventures Corp | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of patents not infringed | 1 | 2 | |||||||
GreenPoint Subsidiary | Pending Litigation | U.S. Bank Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of contracts breached | 2 | ||||||||
Number of mortgage loans sold to third party under litigation | 30,000 | ||||||||
Mortgage loans sold to third party, face amount under litigation | 1,800,000,000 | ||||||||
GreenPoint Subsidiary | Pending Litigation | FHFA Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Mortgage loans sold to third party, face amount under litigation | 3,400,000,000 | 3,400,000,000 | |||||||
Number of summons filed | 3 | ||||||||
Number of residential mortgage backed securities trusts | 3 | ||||||||
GreenPoint Subsidiary | Pending Litigation | LXS Trust Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Mortgage loans sold to third party, face amount under litigation | $915,000,000 |