Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-16577 | |
Entity Registrant Name | Flagstar Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-3150651 | |
Entity Address, Address Line One | 5151 Corporate Drive, | |
Entity Address, City or Town | Troy, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48098-2639 | |
City Area Code | 248 | |
Local Phone Number | 312-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock | |
Trading Symbol | FBC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 52,862,268 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001033012 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash | $ 168 | $ 251 |
Interest-earning deposits | 177 | 372 |
Total cash and cash equivalents | 345 | 623 |
Investment securities available-for-sale | 1,823 | 1,944 |
Investment securities held-to-maturity | 270 | 377 |
Loans held-for-sale ($5,834 and $7,009 measured at fair value, respectively) | 6,138 | 7,098 |
Loans held-for-investment ($21 and $13 measured at fair value, respectively) | 14,052 | 16,227 |
Loans with government guarantees | 2,226 | 2,516 |
Less: allowance for loan losses | (202) | (252) |
Total loans held-for-investment and loans with government guarantees, net | 16,076 | 18,491 |
Mortgage servicing rights | 342 | 329 |
Federal Home Loan Bank stock | 377 | 377 |
Premises and equipment, net | 374 | 392 |
Goodwill and intangible assets | 152 | 157 |
Other assets | 1,168 | 1,250 |
Total assets | 27,065 | 31,038 |
Liabilities and Stockholders’ Equity | ||
Noninterest bearing deposits | 10,675 | 9,458 |
Interest bearing deposits | 7,986 | 10,515 |
Total deposits | 18,661 | 19,973 |
Short-term Federal Home Loan Bank advances and other | 2,095 | 3,900 |
Long-term Federal Home Loan Bank advances | 1,200 | 1,200 |
Other long-term debt | 396 | 641 |
Loans with government guarantees repurchase options | 989 | 1,851 |
Other liabilities ($— and $35 measured at fair value, respectively) | 1,226 | 1,272 |
Total liabilities | 24,567 | 28,837 |
Stockholders’ Equity | ||
Common stock $0.01 par value, 80,000,000 shares authorized; 52,862,264 and 52,656,067 shares issued and outstanding, respectively | 1 | 1 |
Additional paid in capital | 1,356 | 1,346 |
Accumulated other comprehensive income | 45 | 47 |
Retained earnings | 1,096 | 807 |
Total stockholders’ equity | 2,498 | 2,201 |
Total liabilities and stockholders’ equity | $ 27,065 | $ 31,038 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Loans held-for-sale, fair value | $ 5,834 | $ 7,009 |
Loans held-for-investment, fair value | 21 | 13 |
Liabilities and Stockholders’ Equity | ||
Other liabilities, fair value | $ 0 | $ 35 |
Stockholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 52,862,264 | 52,656,067 |
Common stock, shares outstanding (in shares) | 52,862,264 | 52,656,067 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest Income | ||||
Loans | $ 186 | $ 180 | $ 382 | $ 361 |
Investment securities | 12 | 21 | 23 | 40 |
Interest-earning deposits and other | 0 | 0 | 0 | 1 |
Total interest income | 198 | 201 | 405 | 402 |
Interest Expense | ||||
Deposits | 8 | 21 | 18 | 53 |
Short-term Federal Home Loan Bank advances and other | 1 | 2 | 2 | 14 |
Long-term Federal Home Loan Bank advances | 3 | 3 | 6 | 6 |
Other long-term debt | 3 | 7 | 8 | 13 |
Total interest expense | 15 | 33 | 34 | 86 |
Net interest income | 183 | 168 | 371 | 316 |
(Benefit) provision for credit losses | (44) | 102 | (72) | 116 |
Net interest income after provision for credit losses | 227 | 66 | 443 | 200 |
Noninterest Income | ||||
Net gain on loan sales | 168 | 303 | 395 | 393 |
Loan fees and charges | 37 | 38 | 79 | 61 |
Net return on mortgage servicing rights | (5) | (8) | (5) | (2) |
Loan administration income | 28 | 21 | 54 | 33 |
Deposit fees and charges | 8 | 7 | 17 | 16 |
Other noninterest income | 16 | 14 | 36 | 28 |
Total noninterest income | 252 | 375 | 576 | 529 |
Noninterest Expense | ||||
Compensation and benefits | 122 | 116 | 266 | 218 |
Occupancy and equipment | 50 | 44 | 95 | 85 |
Commissions | 51 | 61 | 112 | 90 |
Loan processing expense | 22 | 22 | 43 | 39 |
Legal and professional expense | 11 | 5 | 20 | 11 |
Federal insurance premiums | 4 | 7 | 10 | 13 |
Intangible asset amortization | 3 | 4 | 5 | 7 |
Other noninterest expense | 26 | 34 | 85 | 63 |
Total noninterest expense | 289 | 293 | 636 | 526 |
Income before income taxes | 190 | 148 | 383 | 203 |
Provision for income taxes | 43 | 32 | 87 | 42 |
Net income | $ 147 | $ 116 | $ 296 | $ 161 |
Net income per share | ||||
Basic (in dollars per share) | $ 2.78 | $ 2.04 | $ 5.61 | $ 2.85 |
Diluted (in dollars per share) | 2.74 | 2.03 | 5.54 | 2.83 |
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.12 | $ 0.10 |
Weighted average shares outstanding | ||||
Basic (in shares) | 52,763,868 | 56,790,642 | 52,719,959 | 56,723,254 |
Diluted (in shares) | 53,536,669 | 57,123,706 | 53,417,896 | 57,156,815 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 147 | $ 116 | $ 296 | $ 161 |
Other comprehensive income, net of tax | ||||
Investment securities | (2) | 21 | (17) | 55 |
Derivatives and hedging activities | (7) | (6) | 15 | (10) |
Other comprehensive income, net of tax | (9) | 15 | (2) | 45 |
Comprehensive income | $ 138 | $ 131 | $ 294 | $ 206 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2019 | 56,631,236 | ||||||
Beginning balance at Dec. 31, 2019 | $ 1,788 | $ (23) | $ 1 | $ 1,483 | $ 1 | $ 303 | $ (23) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 46 | 46 | |||||
Total other comprehensive income | 30 | 30 | |||||
Shares issued from Employee Stock Purchase Plan (in shares) | 59,252 | ||||||
Stock-based compensation (in shares) | 39,081 | ||||||
Stock-based compensation | 4 | 4 | |||||
Dividends declared and paid (in shares) | 220 | ||||||
Dividends declared and paid | (3) | (3) | |||||
Ending balance (in shares) at Mar. 31, 2020 | 56,729,789 | ||||||
Ending balance at Mar. 31, 2020 | $ 1,842 | $ 1 | 1,487 | 31 | 323 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 56,631,236 | ||||||
Beginning balance at Dec. 31, 2019 | $ 1,788 | $ (23) | $ 1 | 1,483 | 1 | 303 | $ (23) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 161 | ||||||
Total other comprehensive income | 45 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 56,943,979 | ||||||
Ending balance at Jun. 30, 2020 | 1,971 | $ 1 | 1,488 | 46 | 436 | ||
Beginning balance (in shares) at Mar. 31, 2020 | 56,729,789 | ||||||
Beginning balance at Mar. 31, 2020 | 1,842 | $ 1 | 1,487 | 31 | 323 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 116 | 116 | |||||
Total other comprehensive income | 15 | 15 | |||||
Shares issued from Employee Stock Purchase Plan (in shares) | 46,591 | ||||||
Stock-based compensation (in shares) | 167,410 | ||||||
Stock-based compensation | 1 | 1 | |||||
Dividends declared and paid (in shares) | 189 | ||||||
Dividends declared and paid | (3) | (3) | |||||
Repurchase of shares | 0 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 56,943,979 | ||||||
Ending balance at Jun. 30, 2020 | 1,971 | $ 1 | 1,488 | 46 | 436 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 52,656,067 | ||||||
Beginning balance at Dec. 31, 2020 | 2,201 | $ 1 | 1,346 | 47 | 807 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 149 | 149 | |||||
Total other comprehensive income | 7 | 7 | |||||
Shares issued from Employee Stock Purchase Plan (in shares) | 62,462 | ||||||
Stock-based compensation (in shares) | 33,957 | ||||||
Stock-based compensation | 4 | 4 | |||||
Dividends declared and paid (in shares) | 114 | ||||||
Dividends declared and paid | (3) | (3) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 52,752,600 | ||||||
Ending balance at Mar. 31, 2021 | 2,358 | $ 1 | 1,350 | 54 | 953 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 52,656,067 | ||||||
Beginning balance at Dec. 31, 2020 | 2,201 | $ 1 | 1,346 | 47 | 807 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 296 | ||||||
Total other comprehensive income | (2) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 52,862,264 | ||||||
Ending balance at Jun. 30, 2021 | 2,498 | $ 1 | 1,356 | 45 | 1,096 | ||
Beginning balance (in shares) at Mar. 31, 2021 | 52,752,600 | ||||||
Beginning balance at Mar. 31, 2021 | 2,358 | $ 1 | 1,350 | 54 | 953 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 147 | 147 | |||||
Total other comprehensive income | (9) | (9) | |||||
Shares issued from Employee Stock Purchase Plan (in shares) | 44,245 | ||||||
Stock-based compensation (in shares) | 65,298 | ||||||
Stock-based compensation | 6 | 6 | |||||
Dividends declared and paid (in shares) | 121 | ||||||
Dividends declared and paid | (4) | (4) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 52,862,264 | ||||||
Ending balance at Jun. 30, 2021 | $ 2,498 | $ 1 | $ 1,356 | $ 45 | $ 1,096 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating Activities | |||
Net cash used in operating activities | $ (677) | $ (4,728) | |
Investing Activities | |||
Proceeds from sale of AFS securities including loans that have been securitized | 1,143 | 4,462 | |
Collection of principal on investment securities AFS | 428 | 214 | |
Purchase of investment securities AFS and other | (283) | (359) | |
Collection of principal on investment securities HTM | 107 | 102 | |
Proceeds received from the sale of LHFI | 73 | 39 | |
Net closings, purchases, and principal repayments of LHFI | 2,139 | (2,727) | |
Acquisition of premises and equipment, net of proceeds | (14) | (30) | |
Net purchase of FHLB stock | 0 | (74) | |
Net proceeds from the sale of MSRs | 88 | 40 | |
Other, net | (6) | (1) | |
Net cash provided by (used in) investing activities | 3,675 | 1,666 | |
Financing Activities | |||
Net change in deposit accounts | (1,312) | 2,752 | |
Net change in short-term FHLB borrowings and other short-term debt | (1,805) | (811) | |
Proceeds from increases in FHLB long-term advances and other debt | 0 | 550 | |
Repayment of long-term debt | (246) | (3) | |
Net receipt of payments of loans serviced for others | 79 | 377 | |
Dividends declared and paid | (7) | (6) | |
Other | 14 | 12 | |
Net cash (used in) provided by financing activities | (3,277) | 2,871 | |
Net change in cash, cash equivalents and restricted cash | [1] | (279) | (191) |
Beginning cash, cash equivalents and restricted cash | [1] | 654 | 456 |
Ending cash, cash equivalents and restricted cash | [1] | 375 | 265 |
Supplemental disclosure of cash flow information | |||
Non-cash reclassification of LHFI to LHFS | 48 | 39 | |
Non-cash reclassification of LHFS to securitized HFS loans | 1,202 | 4,470 | |
MSRs resulting from sale or securitization of loans | 129 | 124 | |
Beneficial interest in RMBS | 58 | 0 | |
Operating section supplemental disclosures | |||
Proceeds from sales of LHFS | 27,359 | 16,815 | |
Closings, premium paid and purchase of LHFS, net of principal repayments | $ (27,761) | $ (21,060) | |
[1] | For further information on restricted cash, see Note 8 - Derivatives. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements of Flagstar Bancorp, Inc. ("Flagstar," or the "Company"), including its wholly owned principal subsidiary, Flagstar Bank, FSB (the "Bank"), have been prepared using GAAP for interim financial statements. Where we say "we," "us," "our," the "Company," "Bancorp" or "Flagstar," we usually mean Flagstar Bancorp, Inc. However, in some cases, a reference to "we," "us," "our," the "Company" or "Flagstar" will include the Bank. These consolidated financial statements do not include all of the information and footnotes required by GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. These interim financial statements are unaudited and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020, which is available on our website, flagstar.com, and on the SEC website at sec.gov. On April 26, 2021, it was announced that New York Community Bancorp, Inc. ("NYCB") and Flagstar had entered into a definitive merger agreement (the "Merger Agreement") under which the two companies will combine in an all stock merger. Under the terms of the Merger Agreement, Flagstar shareholders will receive 4.0151 shares of NYCB common stock for each Flagstar share they own. The new company will have over $87 billion in assets and operate nearly 400 traditional branches in nine states and 87 loan production offices across a 28 state footprint. The transaction is expected to close by the end of 2021, subject to customary closing conditions, including regulatory approvals and approval by each company's shareholders. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following table presents our investment securities: Amortized Cost Gross Unrealized Gross Unrealized Fair Value (Dollars in millions) June 30, 2021 Available-for-sale securities Agency - Commercial $ 779 $ 23 $ — $ 802 Agency - Residential 814 19 — 833 Corporate debt obligations 70 4 — 74 Municipal obligations 24 — — 24 Other MBS 89 — — 89 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 1,777 $ 46 $ — $ 1,823 Held-to-maturity securities Agency - Commercial $ 133 $ 4 $ — $ 137 Agency - Residential 137 6 — 143 Total held-to-maturity securities (1) $ 270 $ 10 $ — $ 280 December 31, 2020 Available-for-sale securities Agency - Commercial $ 1,018 $ 43 $ — $ 1,061 Agency - Residential 707 28 — 735 Corporate debt obligations 75 2 — 77 Municipal obligations 27 1 — 28 Other MBS 42 — — 42 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 1,870 $ 74 $ — $ 1,944 Held-to-maturity securities Agency - Commercial $ 193 $ 7 $ — $ 200 Agency - Residential 184 9 — 193 Total held-to-maturity securities (1) $ 377 $ 16 $ — $ 393 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at June 30, 2021 or December 31, 2020. We evaluate AFS debt securities where the value has declined below amortized cost for impairment. If we intend to sell or believe it is more likely than not that we will be required to sell the debt security, it is written down to fair value through earnings. For AFS debt securities we intend to hold, we evaluate the debt securities for expected credit losses, except for debt securities that are guaranteed by the U.S. Treasury, U.S. government agencies or sovereign entities of high credit quality for which we apply a zero loss assumption, comprised 91 percent of our AFS portfolio as of June 30, 2021. For the remaining AFS securities, credit losses are recognized as an increase to the ACL through the credit loss provision. If any of the decline in fair value is related to market factors, that amount is recognized in OCI. We had no unrealized credit losses as of June 30, 2021 and December 31, 2020. We separately evaluate our HTM debt securities for any credit losses. As of June 30, 2021 and December 31, 2020, our entire HTM portfolio qualified for the zero loss assumption as all securities are guaranteed by the U.S. Treasury, U.S. government agencies. Investment securities transactions are recorded on the trade date for purchases and sales. Interest earned on investment securities, including the amortization of premiums and the accretion of discounts, are determined using the effective interest method over the period of maturity and recorded in interest income in the Consolidated Statements of Operations. Accrued interest receivable on investment securities totaled $5 million at both June 30, 2021 and December 31, 2020, and was reported in other assets on the Consolidated Statements of Financial Condition. Available-for-sale securities Securities AFS are carried at fair value. Unrealized gains and losses on AFS securities are reported as a component of other comprehensive income. We purchased $197 million and $283 million of AFS securities, which were comprised of U.S. government sponsored agency MBS, CD, and corporate debt obligations during the three and six months ended June 30, 2021. In addition, we retained $58 million of passive interests in our own private MBS during the three and six months ended June 30, 2021. We retained zero and $18 million of passive interests in our own private MBS during the three and six months ended June 30, 2020, respectively. There were no sales of AFS securities during both the three and six months ended June 30, 2021 other than those related to mortgage loans that had been securitized for sale in the normal course of business. Held-to-maturity securities Investment securities HTM are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method. Unrealized losses are not recorded to the extent they are temporary in nature. There were no purchases or sales of HTM securities during both the three and six months ended June 30, 2021 and June 30, 2020. The following table summarizes the unrealized loss positions on AFS and investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) June 30, 2021 Available-for-sale securities Agency - Commercial $ 6 2 $ — $ 12 4 $ — Agency - Residential — — — 1 2 — Other mortgage-backed securities — 1 — 6 2 — Held-to-maturity securities Agency - Residential $ — — $ — $ — 1 $ — December 31, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 7 2 $ — Agency - Residential — — — — 1 — Corporate debt obligations — — — 10 3 — Other mortgage-backed securities — — — — 1 — Held-to-maturity securities Agency - Residential $ — — $ — $ 2 3 $ — Unrealized losses on AFS securities have not been recognized into income because almost all of the portfolio held by us are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. The remaining unrealized losses on AFS securities are private securitizations, all of which are considered de minimis. The fair value is expected to recover as the bonds approach maturity. The following table shows the amortized cost and estimated fair value of securities by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-Maturity Amortized Fair Weighted Average Amortized Fair Weighted Average (Dollars in millions) June 30, 2021 Due in one year or less $ 6 $ 6 2.25 % $ — $ — — % Due after one year through five years 10 11 3.81 % 10 10 2.53 % Due after five years through 10 years 106 111 3.88 % 4 4 1.99 % Due after 10 years 1,655 1,695 2.20 % 256 266 2.47 % Total $ 1,777 $ 1,823 $ 270 $ 280 (1) Weighted-average yields are based on amortized cost weighted for the contractual maturity of each security. We pledge investment securities, primarily agency collateralized and municipal taxable mortgage obligations, to collateralize lines of credit and/or borrowings. At June 30, 2021 and December 31, 2020, we had pledged investment securities of $226 million and $202 million, respectively. |
Loans Held-for-Sale
Loans Held-for-Sale | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans Held-for-Sale | Loans Held-for-Sale The majority of our mortgage loans closed as LHFS are ultimately sold into the secondary market on a whole loan basis or by securitizing the loans into agency, government, or private label MBS. LHFS totaled $6.1 billion and $7.1 billion at June 30, 2021 and December 31, 2020, respectively. For the three and six months ended June 30, 2021 we had net gains on loan sales associated with LHFS of $168 million and $395 million as compared to $303 million and $392 million for the three and six months ended June 30, 2020. At June 30, 2021 and December 31, 2020, $280 million and $31 million, respectively, of LHFS were recorded at lower of cost or fair value. We elected the fair value option for the remainder of the loans in the portfolio. |
Loans Held-for-Investment
Loans Held-for-Investment | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans Held-for-Investment | Loans Held-for-Investment We classify loans that we have the intent and ability to hold for the foreseeable future or until maturity as LHFI. We report LHFI at their amortized cost, which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees and costs. The accrued interest receivable on LHFI totaled $39 million at June 30, 2021 and $43 million at December 31, 2020 and was reported in other assets on the Consolidated Statements of Financial Condition. The following table presents our LHFI: June 30, 2021 December 31, 2020 (Dollars in millions) Consumer loans Residential first mortgage $ 1,794 $ 2,266 Home equity 717 856 Other 1,133 1,004 Total consumer loans 3,644 4,126 Commercial loans Commercial real estate 3,169 3,061 Commercial and industrial 1,376 1,382 Warehouse lending 5,863 7,658 Total commercial loans 10,408 12,101 Total loans held-for-investment $ 14,052 $ 16,227 The following table presents the UPB of our loan sales and purchases in the LHFI portfolio: Six Months Ended June 30, 2021 2020 (Dollars in millions) Loans Sold (1) Performing loans $ 87 $ 38 Total loans sold $ 87 $ 38 Net gain associated with loan sales (2) $ — Loans Purchased Other consumer — 63 Total loans purchased $ — $ 63 Premium associated with loans purchased $ — $ — (1) Upon a change in our intent, the loans were transferred to LHFS and subsequently sold. (2) Recorded in net gain on loan sales on Consolidated Statements of Operations. We have pledged certain LHFI, LHFS, and LGG to collateralize lines of credit and/or borrowings with the FRB of Chicago and the FHLB of Indianapolis. At June 30, 2021 and December 31, 2020, we had pledged loans of $10.9 billion and $11.6 billion, respectively. Allowance for Credit Losses on Loans We determine the estimate of the ACL on at least a quarterly basis. The ACL represents Management's estimate of expected lifetime losses in our LHFI portfolio, excluding loans carried under the fair value option. In addition, we record a reserve for expected lifetime losses on our unfunded commitments - see Reserve for Unfunded Commitments section below. Therefore, we record ALLL on relevant financial assets and a reserve for unfunded commitments on our Consolidated Statements of Financial Condition, collectively referred to as the ACL. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual terms excludes expected extensions, renewals, and modifications unless the following applies: Management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by us. The ACL is impacted by changes in asset quality of the portfolio, including but not limited to increases in risk rating changes in our commercial portfolio, borrower delinquencies, changes in FICO scores or changes in LTVs in our consumer portfolio. In addition, while we have incorporated our forecasted impact of COVID-19 into our ACL, the ultimate impact of COVID-19 is still uncertain, including how long economic activity will be impacted by the pandemic and what effect the unprecedented levels of government fiscal and monetary actions will have on the economy and our credit losses. Specifically identified component . The specifically identified component of ACL related to performing TDR loans is generally measured as the difference between the recorded investment in the specific loan and the present value of the cash flows expected to be collected, discounted at the loan's original effective interest rate. Estimating the timing and amounts of future cash flow projections is highly judgmental and based upon assumptions including default rates, prepayment probability and loss severities. All of these estimates and assumptions require significant management judgment and certain assumptions are highly subjective. Specifically identified collateral dependent NPL loans are generally measured as the difference between the recorded investment in the impaired loan and the underlying collateral value less estimated costs to sell. These estimates are dependent on third-party property valuations which may be influenced by factors such as the current and future level of home prices, the duration of current overall economic conditions, and other macroeconomic and portfolio-specific factors. Model-based component . A general allowance is established for lifetime losses inherent on non-impaired loans by segmenting the portfolio based upon common risk characteristics. Our consumer loan portfolio is segmented into Residential First Mortgage, Home Equity and Other Consumer. Loan characteristics impacting these segments include lien position, credit quality, and loan structure. At a high-level, our commercial loans are segmented into Commercial Real Estate, Commercial and Industrial, and Warehouse Lending. Loan characteristics impacting these segments include credit quality and loan structure. We measure the allowance using the applicable dual risk rating model which measures probability of default, loss given default and exposure at default. As of June 30, 2021, we utilized the Moody’s June scenarios in our forecast: a growth forecast, weighted at 30 percent; a baseline forecast, weighted at 40 percent; and an adverse forecast, weighted at 30 percent. The resulting composite forecast for the second quarter of 2021 was improved as compared to the scenario used in the first quarter 2021. Unemployment ends 2021 at 6 percent and will continue to recover in 2022. GDP recovers throughout 2021 from current levels and does not return to pre-COVID level until 2024. HPI stays flat throughout 2021. Qualitative adjustments . The specifically identified component analysis and the output of the model provide a reasonable starting point for our analysis, but do not, by themselves, form a sufficient basis to determine the appropriate level for the ACL. We therefore consider the qualitative factors that are likely to cause the ACL associated with our existing portfolio to differ from the output of the model. The most significant qualitative factors considered include changes in economic and business conditions, changes in nature and volume of portfolio and changes in the volume and severity of past due loans. The application of different inputs into the model calculation and the assumptions used by Management to adjust the model calculation are subject to significant management judgment and may result in actual credit losses that differ from the originally estimated amounts. The following table presents changes in the ALLL, by class of loan: Residential Home Equity Other Commercial Commercial Warehouse Total (Dollars in millions) Three Months Ended June 30, 2021 Beginning balance $ 45 $ 20 $ 33 $ 84 $ 55 $ 4 $ 241 (Benefit) provision 4 (4) 6 (26) (17) (1) (38) Charge-offs (1) — (1) — — — (2) Recoveries — 1 — — — — 1 Ending allowance balance $ 48 $ 17 $ 38 $ 58 $ 38 $ 3 $ 202 Three Months Ended June 30, 2020 Beginning balance $ 46 $ 23 $ 16 $ 28 $ 18 $ 1 $ 132 Provision 16 5 19 55 5 — 100 Charge-offs (2) (1) (2) — — — (5) Recoveries — 1 1 — — — 2 Ending allowance balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 Six Months Ended June 30, 2021 Beginning balance $ 49 $ 25 $ 39 $ 84 $ 51 $ 4 $ 252 (Benefit) provision 1 (7) (1) (26) (28) (1) $ (62) Charge-offs (3) (1) (2) — (1) — $ (7) Recoveries 1 — 2 — 16 — $ 19 Ending allowance balance $ 48 $ 17 $ 38 $ 58 $ 38 $ 3 $ 202 Six Months Ended June 30, 2020 Beginning balance, prior to adoption of ASC 326 $ 22 $ 14 $ 6 $ 38 $ 22 $ 5 $ 107 Impact of adopting ASC 326 25 12 10 (14) (6) (4) $ 23 Provision 16 2 20 59 7 — $ 104 Charge-offs (3) (2) (3) — — — $ (8) Recoveries — 2 1 — — — $ 3 Ending allowance balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 (1) Includes LGG. The ALLL was $202 million at June 30, 2021 and $229 million at June 30, 2020. The decrease in the allowance is primarily reflective of changes in our economic forecast and judgment we applied related to those forecasts and underlying borrower credit as a result of the ongoing COVID-19 pandemic. Loans are considered to be past due when any payment of principal or interest is 30 days past the scheduled payment date. While it is the goal of Management to collect on loans, we attempt to work out a satisfactory repayment schedule or modification with past due borrowers and will undertake foreclosure proceedings if the delinquency is not satisfactorily resolved. Our practices regarding past due loans are designed to both assist borrowers in meeting their contractual obligations and minimize losses incurred by the Bank. Beginning in March 2020, as a response to COVID-19, customers facing COVID-19 related difficulties were offered forbearance in an effort to help our borrowers get to the other side of the health crisis. As these loans reach the end of their forbearance period, we have been working with each customer to modify or refinance the outstanding loan to fit their new circumstances. Refer to payment deferral information in the Credit Risk Section of the MD&A for additional details. We cease the accrual of interest on all classes of consumer and commercial loans upon the earlier of, becoming 90 days past due, or when doubt exists as to the ultimate collection of principal or interest (classified as nonaccrual or NPLs). When a loan is placed on nonaccrual status, the accrued interest income is reversed and the loan may only return to accrual status when principal and interest become current and are anticipated to be fully collectible. We do not consider accrued interest receivable in our measurement of the ACL as accrued interest is written-off in a timely manner when the loan is placed on nonaccrual. We are not aging receivables for customers who have been granted a payment deferral in response to COVID-19 which remain in the aging category they were in at the time of payment deferral. We continue to accrue interest on these loans, consistent with our forbearance programs. The following table sets forth the LHFI aging analysis of past due and current loans: 30-59 Days 60-89 Days 90 Days or Total Current Total LHFI (3) (4) (5) (Dollars in millions) June 30, 2021 Consumer loans Residential first mortgage $ 4 $ 2 $ 45 $ 51 $ 1,743 $ 1,794 Home equity 2 1 8 11 706 717 Other 2 1 2 5 1,128 1,133 Total consumer loans 8 4 55 67 3,577 3,644 Commercial loans Commercial real estate — — 2 2 3,167 3,169 Commercial and industrial — — 18 18 1,358 1,376 Warehouse lending — — — — 5,863 5,863 Total commercial loans — — 20 20 10,388 10,408 Total loans (2) $ 8 $ 4 $ 75 $ 87 $ 13,965 $ 14,052 December 31, 2020 Consumer loans Residential first mortgage $ 4 $ 4 $ 31 $ 39 $ 2,227 $ 2,266 Home equity 1 1 5 7 849 856 Other 4 1 2 7 997 1,004 Total consumer loans 9 6 38 53 4,073 4,126 Commercial loans Commercial real estate 20 — 3 23 3,038 3,061 Commercial and industrial 1 — 15 16 1,366 1,382 Warehouse lending — — — — 7,658 7,658 Total commercial loans 21 — 18 39 12,062 12,101 Total loans (2) $ 30 $ 6 $ 56 $ 92 $ 16,135 $ 16,227 (1) Includes less than 90 day past due performing loans which are deemed nonaccrual. Interest is not being accrued on these loans. (2) Includes $9 million and $8 million of past due loans accounted for under the fair value option as of June 30, 2021 and December 31, 2020, respectively. (3) Collateral dependent loans totaled $89 million and $80 million at June 30, 2021 and December 31, 2020, respectively. The majority of these loans are secured by real estate. (4) The interest income recognized on impaired loans was less than a million and $2 million for the three months ended June 30, 2021 and December 31, 2020, respectively. (5) The delinquency status for loans in forbearance is frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends. Interest income is recognized on nonaccrual loans using a cash basis method. Interest that would have been accrued for the three months ended June 30, 2021 was $1 million. At June 30, 2021 and December 31, 2020, we had no loans 90 days or greater past due and still accruing interest. Reserve for Unfunded Commitments We estimated expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. The reserve for unfunded commitments is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The reserve for unfunded commitments is reflected in other liabilities on the Consolidated Statements of Financial Condition and was $18 million as of June 30, 2021, compared to $21 million as of June 30, 2020. The decrease in the reserve is due to improvements in the economic forecasts as a result of the continued vaccine rollout and the lifting of most COVID-19 restrictions. The following categories of off-balance sheet credit exposures have been identified: unfunded loans with available balances, new commitments to lend that are not yet funded, and standby and commercial letters of credit. For further information, see Note 15 - Legal Proceedings, Contingencies and Commitments. Troubled Debt Restructurings We may modify certain loans in both our consumer and commercial loan portfolios to retain customers or to maximize collection of the outstanding loan balance. TDRs are modified loans in which a borrower demonstrates financial difficulties and for which a concession has been granted as a result. Nonperforming TDRs are included in nonaccrual loans. TDRs remain in nonperforming status until a borrower has made payments and is current for at least six consecutive months. Performing TDRs are not considered to be nonaccrual so long as we believe that all contractual principal and interest due under the restructured terms will be collected. Performing and nonperforming TDRs remain impaired as interest and principal will not be received in accordance with the original contractual terms of the loan agreement. Refer to Note 1- Description of Business, Basis of Presentation, and Summary of Significant Accounting Standards to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2020 for a description of the methodology used to determine TDRs. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, but may give rise to potential incremental losses. We measure impairments using a discounted cash flow method for performing TDRs and measure impairment based on collateral values for nonperforming TDRs. Beginning in March 2020, as a response to COVID-19, we offered our consumer and commercial customers principal and interest payment deferrals and extensions. We considered these programs in the context of whether or not the short-term modifications of these loans would constitute a TDR. We considered the CARES Act, interagency guidance and related guidance from the FASB, which provided that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not required to be accounted for as TDRs. As a result, we have determined that loan forbearance, modifications, deferrals and extensions made under these COVID-19 programs are not TDRs. The following table provides a summary of TDRs by type and performing status: TDRs Performing Nonperforming Total (Dollars in millions) June 30, 2021 Consumer loans Residential first mortgage $ 21 $ 9 $ 30 Home equity 10 2 12 Total consumer TDR loans 31 11 42 Commercial loans Commercial real estate — — — Commercial and industrial $ — $ 2 2 Total TDRs (1)(2) $ 31 $ 13 $ 44 December 31, 2020 Consumer loans Residential first mortgage $ 19 $ 8 $ 27 Home equity 12 2 14 Total consumer TDR loans 31 10 41 Commercial loans Commercial real estate 5 — 5 Total TDRs (1)(2) $ 36 $ 10 $ 46 (1) ALLL on TDR loans totaled $5 million at June 30, 2021 and December 31, 2020. (2) Includes $2 million and $3 million of TDR loans accounted for under the fair value option at June 30, 2021 and December 31, 2020. The following table provides a summary of newly modified TDRs: New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) (Dollars in millions) Three Months Ended June 30, 2021 Residential first mortgages 5 $ 3 $ 3 Home equity(2)(3) 1 $ — $ — Commercial Real Estate 1 $ 2 $ 2 Total TDR loans 7 $ 5 $ 5 Three Months Ended June 30, 2020 Commercial Real Estate 1 $ 5 $ 5 Total TDR loans 1 $ 5 $ 5 Six Months Ended June 30, 2021 Residential first mortgages 11 $ 7 $ 7 Home equity(2)(3) 1 $ — $ — Consumer — $ — $ — Commercial Real Estate 1 $ 2 $ 2 Total TDR loans 13 $ 9 $ 9 Six Months Ended June 30, 2020 Residential first mortgages 5 $ 1 $ 1 Home equity(2)(3) 2 $ — $ — Consumer 1 $ — $ — Commercial Real Estate 1 $ 5 $ 5 Total TDR loans 9 $ 6 $ 6 (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) Home equity post-modification UPB reflects write downs. (3) Includes loans carried at the fair value option. There were no loans modified in the previous 12 months that subsequently defaulted during the three months ended June 30, 2021. All TDR classes within the consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due within 12 months of the restructuring date. Credit Quality We utilize a combination of internal and external risk rating systems which are applied to all consumer and commercial loans which are used as loan-level inputs to our ACL models. Descriptions of our risk ratings as they relate to credit quality follow the ratings used by the U.S. bank regulatory agencies as listed below. Pass. Pass assets are not impaired nor do they have any known deficiencies that could impact the quality of the asset. Watch. Watch assets are defined as pass-rated assets that exhibit elevated risk characteristics or other factors that deserve Management’s close attention and increased monitoring. However, the asset does not exhibit a potential or well-defined weakness that would warrant a downgrade to criticized or adverse classification. Special mention. Assets identified as special mention possess credit deficiencies or potential weaknesses deserving Management's close attention. Special mention assets have a potential weakness or pose an unwarranted financial risk that, if not corrected, could weaken the assets and increase risk in the future. Special mention assets are criticized, but do not expose an institution to sufficient risk to warrant adverse classification. Substandard . Assets identified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the full collection or liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. For HELOANs and other consumer loans, we evaluate credit quality based on the aging and status of payment activity and any other known credit characteristics that call into question full repayment of the asset. Substandard loans may be placed on either accrual or nonaccrual status. Doubtful . An asset classified as doubtful has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. A doubtful asset has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Due to the high probability of loss, doubtful assets are placed on nonaccrual. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as a bankable asset is not warranted. This classification does not mean that an asset has absolutely no recovery or salvage value, rather that it is not practical or desirable to defer writing off the asset even though partial recovery may be affected in the future. Consumer Loans Consumer loans consist of open and closed-end loans extended to individuals for household, family, and other personal expenditures. Consumer loans includes other consumer product loans and loans to individuals secured by their personal residence, including first mortgage, home equity, and home improvement loans. Because consumer loans are usually relatively small-balance, homogeneous exposures, consumer loans are rated based primarily on payment performance. Payment performance is a proxy for the strength of repayment capacity and loans are generally classified based on their payment status rather than by an individual review of each loan. In accordance with regulatory guidance, we assign risk ratings to consumer loans in the following manner: • Consumer loans are classified as Watch once the loan becomes 60 days past due. • Open and closed-end consumer loans 90 days or more past due are classified as Substandard. Payment activity, credit rating and LTVs have the most significant impact on the ACL for consumer loans. The following table presents the amortized cost in residential and consumer loans based on payment activity: Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2020 Term Loans Amortized Cost Basis by Closing Year June 30, 2021 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 202 $ 256 $ 358 $ 150 $ 177 $ 497 $ 88 $ 7 $ 1,735 $ 2,205 Watch — — 1 — 1 2 1 — 5 21 Substandard — — 6 6 2 23 — 1 38 25 Home Equity Pass 3 5 21 8 5 18 613 36 709 838 Watch — — — — — — 1 — 1 13 Substandard — — — — — 2 2 2 6 3 Other Consumer Pass 227 262 270 121 2 5 239 4 1,130 1,000 Watch — — — — — — — — — 1 Substandard — 1 1 1 — — — — 3 3 Total Consumer Loans (1)(2) $ 432 $ 524 $ 657 $ 286 $ 187 $ 547 $ 944 $ 50 $ 3,627 $ 4,109 (1) Excludes loans carried under the fair value option. (2) The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends. Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Term Loans Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 362 $ 544 $ 231 $ 289 $ 252 $ 420 $ 92 $ 15 $ 2,205 $ 3,107 Watch — 1 1 1 — 17 1 — 21 23 Substandard — 3 5 2 — 15 — — 25 15 Home Equity Pass 7 31 13 6 2 11 720 48 838 1,002 Watch — — — — — 11 2 — 13 16 Substandard — — — — — 1 1 1 3 3 Other Consumer Pass 292 321 145 3 1 6 227 5 1,000 727 Watch — — — — — — — 1 1 1 Substandard 1 1 1 — — — — — 3 1 Total Consumer Loans (1)(2) $ 662 $ 901 $ 396 $ 301 $ 255 $ 481 $ 1,043 $ 70 $ 4,109 $ 4,895 (1) Excludes loans carried under the fair value option. (2) The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends. The following table presents the amortized cost in residential and consumer loans based on credit scores: Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year June 30, 2021 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 90 $ 136 $ 161 $ 67 $ 113 $ 289 $ 55 $ 1 $ 912 700-750 64 70 118 62 56 149 24 4 547 <700 48 50 86 27 11 84 10 3 319 Home Equity >750 3 2 6 3 2 5 286 6 313 700-750 — 2 8 3 2 8 244 17 284 <700 — 1 7 2 1 7 86 15 119 Other Consumer >750 156 188 170 66 1 3 227 3 814 700-750 70 71 92 47 1 1 7 — 289 <700 1 4 9 9 — 1 5 1 30 Total Consumer Loans (1) $ 432 $ 524 $ 657 $ 286 $ 187 $ 547 $ 944 $ 50 $ 3,627 (1) Excludes loans carried under the fair value option. Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 195 $ 272 $ 118 $ 193 $ 181 $ 231 $ 55 $ 6 $ 1,251 700-750 119 180 90 85 64 130 25 7 700 <700 48 96 29 14 7 91 13 2 300 Home Equity >750 2 9 6 2 1 7 324 13 364 700-750 3 12 4 3 1 8 289 20 340 <700 2 10 3 1 — 8 110 16 150 Other Consumer >750 209 205 80 2 1 5 213 6 721 700-750 79 107 55 1 — 1 9 — 252 <700 5 10 11 — — — 5 — 31 Total Consumer Loans (1) $ 662 $ 901 $ 396 $ 301 $ 255 $ 481 $ 1,043 $ 70 $ 4,109 (1) Excludes loans carried under the fair value option. Loan-to-value ratios primarily impact the allowance on mortgages within the consumer loan portfolio. The following table presents the amortized cost in residential first mortgages and home equity based on loan-to-value ratios: Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of June 30, 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >90 $ 70 $ 82 $ 199 $ 79 $ 23 $ 20 $ — $ — $ 473 71-90 74 110 93 40 56 240 — — 613 55-70 38 41 41 14 55 162 — — 351 <55 20 23 32 23 46 100 89 8 341 Home Equity >90 — — — — 1 9 — — 10 71-90 2 3 16 6 3 8 451 27 516 <=70 1 2 5 2 1 3 165 11 190 Total (1) $ 205 $ 261 $ 386 $ 164 $ 185 $ 542 $ 705 $ 46 $ 2,494 (1) Excludes loans carried under the fair value option. Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential first mortgage >90 $ 84 $ 260 $ 123 $ 35 $ 3 $ 19 $ — $ — $ 524 71-90 169 180 66 99 72 238 — — 824 55-70 83 60 22 82 96 122 — — 465 <55 26 48 26 76 81 73 93 15 438 Home Equity >90 — — — 1 1 10 — — 12 71-90 5 24 10 4 1 9 548 33 634 <=70 2 7 3 1 — 4 175 16 208 Total (1) $ 369 $ 579 $ 250 $ 298 $ 254 $ 475 $ 816 $ 64 $ 3,105 (1) Excludes loans carried under the fair value option. Commercial Loans Risk rating and the average loan duration have the most significant impact on the ACL for commercial loans. Additional factors which impact the ACL are debt-service-coverage ratio, loan-to-value ratio, interest-coverage ratio and leverage ratio. Internal audit conducts periodic examinations which serve as an independent verification of the accuracy of the ratings assigned. All loans are examined on at least an annual basis. Loan grades are based on different factors within the borrowing relationship: entity sales, debt service coverage, debt/total net worth, liquidity, balance sheet and income statement trends, Management experience, business stability, financing structure, and financial reporting requirements. The underlying collateral is also rated based on the specific type of collateral and corresponding LTV. The combination of the borrower and collateral risk ratings results in the final risk rating for the borrowing relationship. Based on the most recent credit analysis performed, the amortized cost basis, by risk category for each class of loans within the commercial portfolio, is as follows: Revolving Loans Converted to Term Loans Amortized Cost Basis Term Loans Revolving Loans Amortized Cost Basis Total December 31, 2020 Amortized Cost Basis by Closing Year As of June 30, 2021 2020 2019 2018 2017 Prior Commercial Loans (Dollars in million) Commercial real estate Pass $ 182 $ 292 $ 644 $ 377 $ 250 $ 454 $ 749 $ — $ 2,948 $ 2,805 Watch — 4 9 27 94 60 9 — 203 166 Special mention — — 1 1 — 6 — — 8 53 Substandard — — 2 — — — 8 — 10 37 Commercial and industrial Pass 49 90 180 85 98 15 710 — 1,227 1,200 Watch — 1 10 5 — — 38 — 54 106 Special mention — 1 17 9 — — 18 — 45 24 Substandard 1 — 8 10 5 — 26 — 50 52 Warehouse Pass 5,718 — — — — — — — 5,718 7,398 Watch 145 — — — — — — — 145 260 Special mention — — — — — — — — — — Substandard — — — — — — — — — — Total commercial loans $ 6,095 $ 388 $ 871 $ 514 $ 447 $ 535 $ 1,558 $ — $ 10,408 $ 12,101 |
Loans with Government Guarantee
Loans with Government Guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans with Government Guarantees | Loans with Government Guarantees Substantially all LGG are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs. Nonperforming repurchased loans in this portfolio earn interest at a rate based upon the 10-year U.S. Treasury note rate from the time the underlying loan becomes 60 days delinquent until the loan is conveyed to HUD (if foreclosure timelines are met), which is not paid by the FHA until claimed. The Bank has a unilateral option to repurchase loans sold to GNMA if the loan is due, but unpaid, for three consecutive months (typically referred to as 90 days past due) and can recover losses through a claims process from the guarantor. These loans are recorded in LGG and the liability to repurchase the loans is recorded as loans with government guarantees repurchase options on the Consolidated Statements of Financial Condition. This resulted in $1.0 billion of repurchase options as of June 30, 2021, a $0.9 billion decrease compared to a balance of $1.9 billion as of December 31, 2020. Certain loans within our portfolio may be subject to indemnifications and insurance limits which expose us to limited credit risk. We have reserved for these risks within other assets and as a component of our ACL on residential first mortgages. At June 30, 2021 and December 31, 2020, LGG totaled $2.2 billion and $2.5 billion, respectively. Repossessed assets and the associated claims related to government guaranteed loans are recorded in other assets and totaled $10 million and $17 million, at June 30, 2021 and December 31, 2020, respectively. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have no consolidated VIEs as of June 30, 2021 and December 31, 2020. In connection with our non-QM securitization activities, we have retained a five percent interest in the investment securities of certain trusts ("other MBS") and are contracted as the subservicer of the underlying loans, compensated based on market rates, which constitutes a continuing involvement in these trusts. Although we have a variable interest in these securitization trusts, we are not their primary beneficiary due to the relative size of our investment in comparison to the total amount of securities issued by the VIE and our inability to direct activities that most significantly impact the VIE’s economic performance. As a result, we have not consolidated the assets and liabilities of the VIE in our Consolidated Statements of Financial Condition. The Bank’s maximum exposure to loss is limited to our investment in the VIE, as well as the standard representations and warranties made in conjunction with the loan transfer. See Note 2 - Investment Securities and Note 16 - Fair Value Measurements, for additional information. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights We have investments in MSRs that result from the sale of loans to the secondary market for which we retain the servicing. We account for MSRs at their fair value. A primary risk associated with MSRs is the potential reduction in fair value as a result of higher than anticipated prepayments due to loan refinancing prompted, in part, by declining interest rates or government intervention. Conversely, these assets generally increase in value in a rising interest rate environment to the extent that prepayments are slower than anticipated. We utilize derivatives as economic hedges to offset changes in the fair value of the MSRs resulting from the actual or anticipated changes in prepayments stemming from changing interest rate environments. There is also a risk of valuation decline due to higher than expected default rates, which we do not believe can be effectively managed using derivatives. For further information regarding the derivative instruments utilized to manage our MSR risks, see Note 8 - Derivative Financial Instruments. Changes in the fair value of residential first mortgage MSRs were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Balance at beginning of period $ 428 $ 223 $ 329 $ 291 Additions from loans sold with servicing retained 64 84 129 124 Reductions from sales (96) (10) (96) (46) Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) (32) (27) (71) (49) Changes in estimates of fair value due to interest rate risk (1) (2) (22) (9) 51 (59) Fair value of MSRs at end of period $ 342 $ 261 $ 342 $ 261 (1) Changes in fair value are included within net return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes which we manage through the use of derivatives. The following table summarizes the hypothetical effect on the fair value of servicing rights using adverse changes of 10 percent and 20 percent to the weighted average of certain significant assumptions used in valuing these assets: June 30, 2021 December 31, 2020 Fair value Fair value Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 8.91 % $ 334 $ 326 7.98 % $ 321 $ 313 Constant prepayment rate 9.37 % 327 312 10.53 % 305 283 Weighted average cost to service per loan $ 80.58 339 335 $ 81.24 325 321 The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. To isolate the effect of the specified change, the fair value shock analysis is consistent with the identified adverse change, while holding all other assumptions constant. In practice, a change in one assumption generally impacts other assumptions, which may either magnify or counteract the effect of the change. For further information on the fair value of MSRs, see Note 16 - Fair Value Measurements. Contractual servicing and subservicing fees . Contractual servicing and subservicing fees, including late fees and other ancillary income are presented below. Contractual servicing fees are included within net return on mortgage servicing rights on the Consolidated Statements of Operations. Contractual subservicing fees, including late fees and other ancillary income, are included within loan administration income on the Consolidated Statements of Operations. Subservicing fee income is recorded for fees earned on subserviced loans, net of third party subservicing costs. The following table summarizes income and fees associated with owned MSRs: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Net return (loss) on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 29 $ 24 $ 60 $ 45 Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (32) (27) (71) (49) Changes in fair value due to interest rate risk (22) (9) 51 (59) Gain (loss) on MSR derivatives (2) 27 6 (38) 64 Net transaction costs (7) (2) (7) (3) Total return included in net return on mortgage servicing rights $ (5) $ (8) $ (5) $ (2) (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The following table summarizes income and fees associated with our mortgage loans subserviced for others: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Loan administration income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 33 $ 30 $ 65 $ 61 Charges on subserviced custodial balances (2) (2) (7) (5) (23) Other servicing charges (2) (2) (5) (5) Total income on mortgage loans subserviced, included in loan administration $ 29 $ 21 $ 55 $ 33 (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on cash basis. (2) Charges on subserviced custodial balances represent interest due to the MSR owner. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recorded at fair value in other assets and other liabilities on the Consolidated Statements of Financial Condition. Our policy is to present our derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition on a gross basis, even when provisions allowing for set-off are in place. However, for derivative contracts cleared through certain central clearing parties, variation margin payments are recognized as settlements. We are exposed to non-performance risk by the counterparties to our various derivative financial instruments. A majority of our derivatives are centrally cleared through a Central Counterparty Clearing House or consist of residential mortgage interest rate lock commitments further limiting our exposure to non-performance risk. We believe that the non-performance risk inherent in our remaining derivative contracts is minimal based on credit standards and the collateral provisions of the derivative agreements. Derivatives not designated as hedging instruments: We maintain a derivative portfolio of interest rate swaps, futures and forward commitments used to manage exposure to changes in interest rates, MSR asset values and to meet the needs of customers. We also enter into interest rate lock commitments, which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Market risk on interest rate lock commitments and mortgage LHFS is managed using corresponding forward sale commitments. Changes in the fair value of derivatives not designated as hedging instruments are recognized on the Consolidated Statements of Operations. Derivatives designated as hedging instruments: We have designated certain interest rate swaps as fair value hedges of investment securities AFS and residential first mortgage LHFI using the last-of-layer method. Cash flows and the profit impact associated with designated hedges are reported in the same category as the underlying hedged item. We have also designated certain interest rate swaps as cash flow hedges on LIBOR based variable interest payments on certain custodial deposits. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income on the Consolidated Statements of Financial Condition and reclassified into interest expense in the same period in which the hedge transaction is recognized in earnings. We had $9 million (net-of-tax) of unrealized gains and $5 million (net-of-tax) of unrealized losses on derivatives classified as cash flow hedges recorded in AOCI as of June 30, 2021 and December 31, 2020, respectively. The estimated amount to be reclassified from other comprehensive income into earnings during the next 12 months represents $3 million of losses (net-of-tax). Derivatives that are designated in hedging relationships are assessed for effectiveness using regression analysis at inception and qualitatively thereafter, unless regression analysis is deemed necessary. All designated hedge relationships were and are expected to be highly effective as of June 30, 2021. The following tables present the notional amount, estimated fair value and maturity of our derivative financial instruments: June 30, 2021 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Liabilities Interest rate swaps on custodial deposits $ 800 $ 1 2026-2027 Derivatives in fair value hedge relationships: Assets Interest rate swaps on AFS securities $ 100 $ — 2022 Total derivative assets $ 900 $ 1 Liabilities Interest rate swaps on AFS securities $ 350 $ — 2024-2025 Interest rate swaps on HFI residential first mortgages $ 100 $ — 2024 Total derivative liabilities $ 450 $ — Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards 4,632 19 2021 Rate lock commitments 8,905 115 2021 Interest rate swaps and swaptions 2,663 64 2021-2051 Total derivative assets $ 16,200 $ 198 Liabilities Futures $ 562 $ — 2021-2023 Mortgage-backed securities forwards $ 6,249 $ 31 2021 Rate lock commitments 270 1 2021 Interest rate swaps 1,309 4 2020-2050 Total derivative liabilities $ 8,390 $ 36 (1) Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior day's fair value of open positions is considered a settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. December 31, 2020 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Liabilities Interest rate swaps on custodial deposits $ 800 1 2026-2027 Derivatives in fair value hedge relationships: Liabilities Interest rate swaps on HFI residential first mortgages 100 — 2024 Interest rate swaps on AFS securities 450 — 2022-2025 Total hedge accounting swaps $ 1,350 $ 1 Derivatives not designated as hedging instruments: Assets Futures $ 1,346 $ — 2021-2023 Mortgage-backed securities forwards 749 14 2021 Rate lock commitments 10,587 208 2021 Interest rate swaps and swaptions 1,481 59 2021-2051 Total derivative assets $ 14,163 $ 281 Liabilities Mortgage-backed securities forwards $ 11,194 $ 98 2021 Rate lock commitments 115 — 2021 Interest rate swaps and swaptions 1,305 4 2021-2030 Total derivative liabilities $ 12,614 $ 102 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered a settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Netted in the Statements of Financial Condition Net Amount Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Gross Amount Financial Instruments Cash Collateral (Dollars in millions) June 30, 2021 Derivatives designated as hedging instruments: Assets Interest rate swaps on AFS securities $ — $ — $ — $ — $ 1 Total derivative assets $ — $ — $ — $ — $ 1 Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ 1 Interest rate swaps on custodial deposits — — — — 9 Interest rate swaps on HFI residential first mortgages — — — — 1 Total derivative liabilities $ — $ — $ — $ — $ 11 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 19 $ — $ 19 $ — $ 5 Interest rate swaps and swaptions (1) 64 — 64 — 6 Total derivative assets $ 83 $ — $ 83 $ — $ 11 Liabilities Mortgage-backed securities forwards $ 31 $ — $ 31 $ — $ 26 Interest rate swaps 4 — 4 — 30 Total derivative liabilities $ 35 $ — $ 35 $ — $ 56 December 31, 2020 Derivatives designated as hedging instruments: Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ 5 Interest rate swaps on HFI residential first mortgages — — — — 1 Interest rate swaps on custodial deposits 1 — 1 — 8 Total derivative liabilities $ 1 $ — $ 1 $ — $ 14 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 14 $ — $ 14 $ — $ — Interest rate swaps 59 — 59 — 6 Total derivative assets $ 73 $ — $ 73 $ — $ 6 Liabilities Mortgage-backed securities forwards $ 98 $ — $ 98 $ — $ 68 Interest rate swaps and swaptions (1) 4 — 4 — 26 Total derivative liabilities $ 102 $ — $ 102 $ — $ 94 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes. Losses of $1 million and $2 million on fair value hedging relationships of AFS securities were recorded in interest income for the three and six months ended June 30, 2021. The gains and losses on fair value hedging relationships of AFS securities for the three and six months ended June 30, 2020 were de-minimis. Losses of $1 million and $2 million on cash flow hedging relationships of custodial deposits were reclassified from AOCI into loan administration income during the three and six months ended June 30, 2021, respectively. Losses of $1 million on cash flow hedging relationships of custodial deposits were reclassified from AOCI into loan administration income during the three and six months ended June 30, 2020. Gains and losses on fair value hedging relationships of HFI residential first mortgages for the three months ended June 30, 2021 and June 30, 2020 were de-minimis. The fair value basis adjustment on our hedged AFS securities is included in investment securities available-for-sale on our Consolidated Statements of Financial Condition. The carrying amount of our hedged securities was $1.3 billion at June 30, 2021 and $1.7 billion at December 31, 2020 of which $1 million and $6 million, respectively, were due to the fair value hedge relationship. The closed portfolio of AFS securities designated in this last layer method hedge was $1.2 billion par (amortized cost of $1.2 billion) at June 30, 2021 and $1.6 billion par (amortized cost of $1.6 billion) at December 31, 2020 of which we have designated $450 million at both June 30, 2021 and December 31, 2020. The fair value basis adjustment on our hedged fair HFI residential first mortgages is included in LHFI on our Consolidated Statements of Financial Condition. The carrying amount of our hedged loans was $205 million at June 30, 2021 of which a de-minimis amount is due to the fair value hedge relationship. We have designated $100 million of this closed portfolio of loans in a hedging relationship as of June 30, 2021. The carrying amount of our hedged loans was $240 million at December 31, 2020 of which $1 million was due to the fair value hedge relationship. We designated $100 million of this closed portfolio of loans in a hedging relationship at December 31, 2020. At June 30, 2021, we pledged a total of $74 million related to derivative financial instruments, consisting of $45 million of cash collateral on derivative liabilities and $29 million of maintenance margin on centrally cleared derivatives. We had an obligation to return a total of $5 million of cash collateral on derivative assets at June 30, 2021. We pledged a total of $114 million related to derivative financial instruments, consisting of $84 million of cash collateral on derivatives and $30 million of maintenance margin on centrally cleared derivatives and had a de-minimis obligation to return cash on derivative assets at December 31, 2020. Within the Consolidated Statements of Financial Condition, the collateral related to derivative activity is included in other assets and other liabilities and the cash pledged as maintenance margin is restricted and included in other assets. The following table presents net gain recognized in income on derivative instruments, net of the impact of offsetting positions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Derivatives not designated as hedging instruments: Location of gain (loss) Futures Net return on mortgage servicing rights $ — $ 1 $ — $ 1 Interest rate swaps and swaptions Net return on mortgage servicing rights 20 3 (27) 41 Mortgage-backed securities forwards Net return on mortgage servicing rights 7 4 (11) 23 Rate lock commitments and MSR forwards Net gain on loan sales (178) 219 (15) 120 Interest rate swaps (1) Other noninterest income 1 — 1 — Total derivative gain (loss) $ (150) $ 227 $ (52) $ 185 (1) Includes customer-initiated commercial interest rate swaps. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Federal Home Loan Bank Advances and Other Borrowings The following is a breakdown of our FHLB advances and other borrowings outstanding: June 30, 2021 December 31, 2020 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 1,130 0.20 % $ 3,415 0.20 % Short-term variable rate term advances 300 0.10 % — — % Other short-term borrowings (1) 665 0.13 % 485 0.08 % Total short-term Federal Home Loan Bank advances and other borrowings 2,095 3,900 Long-term fixed rate advances (2) 1,200 1.03 % 1,200 1.03 % Total Federal Home Loan Bank advances and other borrowings 3,295 5,100 (1) Includes borrowings under overnight federal funds purchased lines with other Federal Reserve member institutions. (2) Includes the current portion of fixed rate advances of $200 million and $0 at June 30, 2021 and December 31, 2020, respectively. The following table contains detailed information on our FHLB advances and other borrowings: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Maximum outstanding at any month end $ 3,575 $ 5,660 $ 4,737 $ 6,841 Average outstanding balance $ 3,622 $ 4,821 $ 3,800 $ 4,590 Average remaining borrowing capacity $ 5,295 $ 5,272 $ 5,389 $ 5,124 Weighted average interest rate 0.45 % 0.45 % 0.44 % 0.86 % The following table outlines the maturity dates of our FHLB advances and other borrowings: June 30, 2021 (Dollars in millions) 2021 $ 2,095 2022 200 2023 500 2024 100 Thereafter 400 Total $ 3,295 Parent Company Senior Notes, Subordinated Notes and Trust Preferred Securities The following table presents long-term debt, net of debt issuance costs: June 30, 2021 December 31, 2020 Amount Interest Rate Amount Interest Rate (Dollars in millions) Senior Notes Senior notes, settled 2021 $ — — % $ 246 6.125 % Subordinated Notes Notes, matures 2030 149 4.125 % 148 4.125 % Trust Preferred Securities Floating Three Month LIBOR Plus: 3.25%, matures 2032 26 3.40 % 26 3.50 % 3.25%, matures 2033 26 3.43 % 26 3.49 % 3.25%, matures 2033 26 3.40 % 26 3.49 % 2.00%, matures 2035 26 2.18 % 26 2.24 % 2.00%, matures 2035 26 2.18 % 26 2.24 % 1.75%, matures 2035 51 1.87 % 51 1.97 % 1.50%, matures 2035 25 1.68 % 25 1.74 % 1.45%, matures 2037 25 1.57 % 25 1.67 % 2.50%, matures 2037 16 2.62 % 16 2.72 % Total Trust Preferred Securities 247 247 Total other long-term debt $ 396 $ 641 Senior Notes We settled the Senior Notes on January 22, 2021 and as of June 30, 2021 we have no Senior Notes outstanding. Subordinated Notes On October 28, 2020, we issued $150 million of Subordinated Debt (the "Notes") with a maturity date of November 1, 2030. The Notes bear interest at a fixed rate of 4.125 percent through October 31, 2025, and a variable rate tied to SOFR thereafter until maturity. We have the option to redeem all or a part of the Notes beginning on November 1, 2025, and on any subsequent interest payment date. The Notes qualify as Tier 2 capital for regulatory purposes. Trust Preferred Securities We sponsor nine trust subsidiaries, which issued preferred stock to third party investors. We issued junior subordinated debt securities to those trusts, which we have included in long-term debt. The junior subordinated debt securities are the sole assets of those trusts. The trust preferred securities are callable by us at any time. Interest is payable quarterly; however, we may defer interest payments for up to 20 quarters without default or penalty. As of June 30, 2021, we had no deferred interest. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in AOCI: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Investment Securities Beginning balance $ 37 $ 35 $ 52 $ 1 Unrealized gain (2) 27 (22) 72 Less: Tax provision — 6 (5) 17 Net unrealized gain (2) 21 (17) 55 Other comprehensive income, net of tax (2) 21 (17) 55 Ending balance $ 35 $ 56 $ 35 $ 56 Cash Flow Hedges Beginning balance $ 17 $ (4) $ (5) $ — Unrealized loss (9) (10) 17 (15) Less: Tax benefit (1) (3) 4 (4) Net unrealized loss (8) (7) 13 (11) Reclassifications out of AOCI (1) 1 1 2 1 Less: Tax provision (benefit) — — — — Other comprehensive loss, net of tax (7) (6) 15 (10) Ending balance $ 10 $ (10) $ 10 $ (10) (1) Reclassifications are reported in noninterest income on the Consolidated Statements of Operations. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions, except share data) Net income applicable to common stockholders $ 147 $ 116 $ 296 $ 161 Weighted Average Shares Weighted average common shares outstanding 52,763,868 56,790,642 52,719,959 56,723,254 Effect of dilutive securities Stock-based awards 772,801 333,064 697,937 433,561 Weighted average diluted common shares $ 53,536,669 $ 57,123,706 $ 53,417,896 $ 57,156,815 Earnings per common share Basic earnings per common share $ 2.78 $ 2.04 $ 5.61 $ 2.85 Effect of dilutive securities Stock-based awards (0.04) (0.01) (0.07) (0.02) Diluted earnings per common share $ 2.74 $ 2.03 $ 5.54 $ 2.83 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We had stock-based compensation expense of $4 million and $7 million for the three and six months ended June 30, 2021, and $4 million and $8 million for the three and six months ended June 30, 2020. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock units activity: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Shares Weighted — Average Grant-Date Fair Value per Share Shares Weighted — Average Grant-Date Fair Value per Share Restricted Stock and Restricted Stock Units Non-vested balance at beginning of period 1,063,285 $ 32.00 974,186 $ 30.88 Granted 201,262 44.66 345,330 42.80 Vested (93,213) 32.29 (135,662) 33.05 Canceled and forfeited (28,353) 30.97 (40,873) 30.85 Non-vested balance at end of period 1,142,981 $ 34.23 $ 1,142,981 $ 34.23 2017 Employee Stock Purchase Plan The Employee Stock Purchase Plan ("2017 ESPP") was approved on March 20, 2017, by our Board and on May 23, 2017, by our shareholders. The 2017 ESPP became effective July 1, 2017, and was terminated on June 30, 2021 pursuant to the Merger Agreement with NYCB as approved by the Board on April 24, 2021. There were 44,245 shares issued under the ESPP during the three months ended June 30, 2021 and the associated compensation expense was de minimis. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in interim periods requires us to make a best estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The following table presents our provision for income tax and effective tax provision rate: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Income before income taxes 190 148 $ 383 $ 203 Provision for income taxes 43 32 87 42 Effective tax provision rate 22.5 % 21.5 % 22.7 % 20.6 % We believe that it is unlikely that our unrecognized tax benefits will change by a material amount during the next 12 months. We recognize interest and penalties related to unrecognized tax benefits in provision for income taxes. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2021 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory Capital We, along with the Bank, are subject to the Basel III based U.S. capital rules, including capital simplification. Under these requirements, we must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that could have a material effect on the Consolidated Financial Statements. To be categorized as "well-capitalized," the Company and the Bank must maintain minimum tangible capital, Tier 1 capital, common equity Tier 1, and total capital ratios as set forth in the table below. We, along with the Bank, are considered "well-capitalized" at both June 30, 2021 and December 31, 2020. The following tables present the regulatory capital requirements under the applicable Basel III based U.S. capital rules: Flagstar Bancorp Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2021 Tier 1 capital (to adjusted avg. total assets) $ 2,562 9.21 % $ 1,113 4.0 % $ 1,391 5.0 % Common equity Tier 1 capital (to RWA) $ 2,322 11.38 % $ 918 4.5 % $ 1,326 6.5 % Tier 1 capital (to RWA) $ 2,562 12.56 % $ 1,224 6.0 % $ 1,632 8.0 % Total capital (to RWA) $ 2,882 14.13 % $ 1,632 8.0 % $ 2,040 10.0 % December 31, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,270 7.71 % $ 1,178 4.0 % $ 1,472 5.0 % Common equity Tier 1 capital (to RWA) $ 2,030 9.15 % $ 999 4.5 % $ 1,442 6.5 % Tier 1 capital (to RWA) $ 2,270 10.23 % $ 1,331 6.0 % $ 1,775 8.0 % Total capital (to RWA) $ 2,638 11.89 % $ 1,775 8.0 % $ 2,219 10.0 % Flagstar Bank Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2021 Tier 1 capital (to adjusted avg. total assets) $ 2,464 8.88 % $ 1,111 4.0 % $ 1,388 5.0 % Common equity Tier 1 capital (to RWA) $ 2,464 12.08 % $ 918 4.5 % $ 1,326 6.5 % Tier 1 capital (to RWA) $ 2,464 12.08 % $ 1,224 6.0 % $ 1,632 8.0 % Total capital (to RWA) $ 2,634 12.92 % $ 1,632 8.0 % $ 2,039 10.0 % December 31, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,390 8.12 % $ 1,177 4.0 % $ 1,472 5.0 % Common equity Tier 1 capital (to RWA) $ 2,390 10.77 % $ 999 4.5 % $ 1,443 6.5 % Tier 1 capital (to RWA) $ 2,390 10.77 % $ 1,332 6.0 % $ 1,775 8.0 % Total capital (to RWA) $ 2,608 11.75 % $ 1,775 8.0 % $ 2,219 10.0 % |
Legal Proceedings, Contingencie
Legal Proceedings, Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings, Contingencies and Commitments | Legal Proceedings, Contingencies and Commitments Legal Proceedings We and our subsidiaries are subject to various pending or threatened legal proceedings arising out of the normal course of business operations. In addition, the Bank is routinely named in civil actions throughout the country by borrowers and former borrowers relating to the closing, purchase, sale, and servicing of mortgage loans. From time to time, governmental agencies also conduct investigations or examinations of various practices of the Bank. In the course of such investigations or examinations, the Bank cooperates with such agencies and provides information as requested. We assess the liabilities and loss contingencies in connection with pending or threatened legal and regulatory proceedings on at least a quarterly basis and establish accruals when we believe it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated. Once established, litigation accruals are adjusted, as appropriate, in light of additional information. Payments made to settle our liabilities may differ from the contingency or fair value recorded due to factors that differ from our assumptions. At June 30, 2021, we do not believe that the amount of any reasonably possible losses in excess of any amounts accrued with respect to ongoing proceedings or any other known claims will be material to our financial statements, or that the ultimate outcome of these actions will have a materially adverse effect on our financial condition, results of operations or cash flows. DOJ Liability On February 24, 2012, the Bank entered into a Settlement Agreement with the DOJ under which we agreed to make future payments totaling $118 million in annual increments of up to $25 million upon meeting certain conditions. On March 30, 2021, the Bank signed a $70 million final Settlement and Dismissal Amendment (the "Amendment") with the DOJ. The Amendment required us to make a $70 million one-time restitution cash payment and removed any further obligations related to the original Settlement Agreement. We recorded a $35 million expense to adjust the fair value of the DOJ Liability through other noninterest expense in the first quarter of 2021. The payment was made on April 8, 2021, fully satisfying the Amendment and reducing the liability to $0 at June 30,2021. See Note 16 - Fair Value Measurements. Other litigation accruals At June 30, 2021 and December 31, 2020, excluding the fair value liability relating to the DOJ Liability, our total accrual for contingent liabilities and settled litigation was $8 million and $7 million, respectively. Commitments In the normal course of business, we have various commitments outstanding which are not included on our Consolidated Statements of Financial Condition. The following table is a summary of the contractual amount of significant commitments: June 30, 2021 December 31, 2020 (Dollars in millions) Commitments to extend credit Mortgage loan commitments including interest rate locks $ 9,175 $ 10,702 Warehouse loan commitments 4,869 2,849 Commercial and industrial commitments 1,537 1,271 Other construction commitments 2,176 1,934 HELOC commitments 596 544 Other consumer commitments 166 121 Standby and commercial letters of credit 102 95 Commitments to extend credit are agreements to lend to a customer as long as there is not a violation of any condition established in the contract. Because many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. Commitments generally have fixed expiration dates or other termination clauses. We evaluate each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by us, upon extension of credit is based on Management's credit evaluation of the counterparties. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized on the Consolidated Statements of Financial Condition. Our exposure to credit losses in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. We utilize the same credit policies in making commitments and conditional obligations as we do for balance sheet instruments. The types of credit we extend are as follows: Mortgage loan commitments including interest-rate locks. We enter into mortgage loan commitments, including interest-rate locks with our customers. These interest-rate lock commitments are considered to be derivative instruments and the fair value of these commitments is recorded in the Consolidated Statements of Financial Condition in other assets. For further information, see Note 8 - Derivative Financial Instruments. Warehouse loan commitments. Lines of credit provided to mortgage originators to fund loans they originate and then sell. The proceeds of the sale of the loans are used to repay the draw on the line used to fund the loans. Commercial and industrial and other construction commitments. Conditional commitments issued under various terms to lend funds to businesses and other entities. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Many of these loan commitments have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of these commitments are expected to expire without being funded, the total commitment amounts do not necessarily represent future liquidity requirements. HELOC commitments. Commitments to extend, originate or purchase credit are primarily lines of credit to consumers and have specified rates and maturity dates. Many of these commitments also have adverse change clauses, which allow us to cancel the commitment due to deterioration in the borrowers’ creditworthiness or a decline in the collateral value. Other consumer commitments. Conditional commitments issued to accommodate the financial needs of customers. The commitments are made under various terms to lend funds to consumers, which include revolving credit agreements, term loan commitments and short-term borrowing agreements. Standby and commercial letters of credit. Conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. These financial standby letters of credit irrevocably obligate the bank to pay a third party beneficiary when a customer fails to repay an outstanding loan or debt instrument. We maintain a reserve for the estimated lifetime credit losses in unfunded commitments to extend credit. Unfunded commitments to extend credit include unfunded loans with available balances, new commitments to lend that are not yet funded, and standby and commercial letters of credit. A reserve balance of $18 million at June 30, 2021 and $28 million at December 31, 2020, respectively, is reflected in other liabilities on the Consolidated Statements of Financial Condition. See Note 4 - Loans Held-for-Investment for additional information. Supplemental executive retirement plan with former CEO. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on Management's judgment, assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Valuation Hierarchy U.S. GAAP establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority given to unobservable inputs where no active market exists, as discussed below. Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets in which we can participate as of the measurement date; Level 2 - Quoted prices for similar instruments in active markets, and other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 - Unobservable inputs that reflect our own assumptions about the assumptions that market participants would use in pricing an asset or liability. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the financial instruments carried at fair value by caption on the Consolidated Statements of Financial Condition and by level in the valuation hierarchy. June 30, 2021 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 802 $ — $ 802 Agency - Residential — 833 — 833 Municipal obligations — 24 — 24 Corporate debt obligations — 74 — 74 Other MBS — 89 — 89 Certificate of deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,834 — 5,834 Loans held-for-investment Residential first mortgage loans — 19 — 19 Home equity — — 2 2 Mortgage servicing rights — — 342 342 Derivative assets Rate lock commitments (fallout-adjusted) — — 115 115 Mortgage-backed securities forwards — 19 — 19 Interest rate swaps and swaptions — 64 — 64 Total assets at fair value $ — $ 7,759 $ 459 $ 8,218 Derivative liabilities Rate lock commitments (fallout-adjusted) $ — $ — $ (1) $ (1) Mortgage backed securities forwards — (31) — (31) Interest rate swaps — (6) — (6) Total liabilities at fair value $ — $ (37) $ (1) $ (38) December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 1,061 $ — $ 1,061 Agency - Residential — 735 — 735 Municipal obligations — 28 — 28 Corporate debt obligations — 77 — 77 Other MBS — 42 — 42 Certificate of deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 7,009 — 7,009 Loans held-for-investment Residential first mortgage loans — 11 — 11 Home equity — — 2 2 Mortgage servicing rights — — 329 329 Derivative assets Rate lock commitments (fallout-adjusted) — — 208 208 Mortgage-backed securities forwards — 14 — 14 Interest rate swaps and swaptions — 59 — 59 Total assets at fair value $ — $ 9,037 $ 539 $ 9,576 Derivative liabilities Mortgage-backed securities forwards $ — $ (98) $ — $ (98) Interest rate swaps — (4) — (4) DOJ Liability — — (35) (35) Total liabilities at fair value $ — $ (102) $ (35) $ (137) Fair Value Measurements Using Significant Unobservable Inputs The following table includes a roll forward of the Consolidated Statements of Financial Condition amounts (including the change in fair value) for financial instruments classified by us within Level 3 of the valuation hierarchy: Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Three Months Ended June 30, 2021 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 428 (54) 64 (96) — — $ 342 Rate lock commitments (net) (2)(3) 74 47 179 — — (186) $ 114 Totals $ 504 $ (7) $ 243 $ (96) $ — $ (186) $ 458 Liabilities DOJ Liability $ (70) $ — $ — $ — $ 70 $ — $ — Totals $ (70) $ — $ — $ — $ 70 $ — $ — Three Months Ended June 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 223 (36) 84 (10) — — 261 Rate lock commitments (net) (2)(3) 169 79 309 — — (352) 205 Totals $ 394 $ 43 $ 393 $ (10) $ — $ (352) $ 468 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (16) (11) — — — — (27) Totals $ (51) $ (11) $ — $ — $ — $ — $ (62) (1) There were no unrealized gains (losses) recorded in OCI during the three months ended June 30, 2021 and 2020. (2) We utilized swaptions, futures, forward agency and loan sales and interest rate swaps to manage the risk associated with MSRs and rate lock commitments. Gains and losses for individual lines do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Six Months Ended June 30, 2021 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 329 (20) 129 (96) — — $ 342 Rate lock commitments (net) (2)(3) 208 (122) 384 — — (356) $ 114 Totals $ 539 $ (142) $ 513 $ (96) $ — $ (356) $ 458 Liabilities DOJ Liability $ (35) $ (35) $ — $ — $ 70 $ — $ — Totals $ (35) $ (35) $ — $ — $ 70 $ — $ — Six Months Ended June 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 291 (108) 124 (46) — — 261 Rate lock commitments (net) (2)(3) 34 184 472 — — (485) 205 Totals $ 327 $ 76 $ 596 $ (46) $ — $ (485) $ 468 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (10) (17) — — — — (27) Totals $ (45) $ (17) $ — $ — $ — $ — $ (62) (1) There were no unrealized gains (losses) recorded in OCI during the six months ended June 30, 2021 and 2020. (2) We utilized swaptions, futures, forward agency and loan sales and interest rate swaps to manage the risk associated with MSRs and rate lock commitments. Gains and losses for individual lines do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) June 30, 2021 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 12.6% - 18.9% (15.8%) 1.5%-2.3% (1.9%) (1) Mortgage servicing rights $ 342 Discounted cash flows Option adjusted spread 3.8% - 21.6% (8.9%) 0% - 11.5% (9.4%) $67 - $95 ($81) (1) Rate lock commitments (net) $ 114 Consensus pricing Origination pull-through rate 72.1% - 87.2% (73.9%) (1) (1) Unobservable inputs were weighted by their relative fair value of the instruments. Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) December 31, 2020 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 12.6% - 18.9% (15.8%) 1.5%-2.3% (1.9%) (1) Mortgage servicing rights $ 329 Discounted cash flows Option adjusted spread 3.4% - 21.2% (8.0%) 0% - 13.3% (10.5%) $67 - $95 ($81) (1) Rate lock commitments (net) $ 208 Consensus pricing Closing pull-through rate 75.7% - 87.2% (77.5%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below (1) Unobservable inputs were weighted by their relative fair value of the instruments. Recurring Significant Unobservable Inputs Home equity. The most significant unobservable inputs used in the fair value measurement of the HELOANs are discount rates, constant prepayment rates, and default rates. The constant prepayment and default rates are based on a 12 month historical average. Significant increases (decreases) in the discount rate in isolation result in a significantly lower (higher) fair value measurement. Increases (decreases) in prepay rates in isolation result in a higher (lower) fair value and increases (decreases) in default rates in isolation result in a lower (higher) fair value. MSRs. The significant unobservable inputs used in the fair value measurement of the MSRs are option adjusted spreads, prepayment rates, and cost to service. Significant increases (decreases) in all three assumptions in isolation result in a significantly lower (higher) fair value measurement. Weighted average life (in years) is used to determine the change in fair value of MSRs. For June 30, 2021 and December 31, 2020, the weighted average life (in years) for the entire MSR portfolio was 5.4 and 4.2, respectively. DOJ Liability. The DOJ liability was settled for $70 million in the second quarter of 2021, fully satisfying the Amendment and reducing the liability to $0 at June 30,2021. Prior to settlement, the significant unobservable inputs used in the fair value measurement of the DOJ Liability were the discount rate, asset growth rate, return on assets, dividend rate and potential ways we might be required to begin making DOJ Liability payments and our estimates of the likelihood of these outcomes, as further discussed in Note 15 - Legal Proceedings, Contingencies and Commitments. Rate lock commitments. The significant unobservable input used in the fair value measurement of the rate lock commitments is the pull through rate. The pull through rate is a statistical analysis of our actual rate lock fallout history to determine the sensitivity of the residential mortgage loan pipeline compared to interest rate changes and other deterministic values. New market prices are applied based on updated loan characteristics and new fallout ratios (i.e. the inverse of the pull through rate) are applied accordingly. Significant increases (decreases) in the pull through rate in isolation result in a significantly higher (lower) fair value measurement. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have assets that are subject to measurement at fair value on a nonrecurring basis under certain conditions. The following table presents assets measured at fair value on a nonrecurring basis: Total (1) Level 2 Level 3 Losses (Dollars in millions) June 30, 2021 Loans held-for-sale (2) $ 275 $ 275 $ — $ (1) Commercial loans 24 — 24 — Impaired loans held-for-investment (2) Residential first mortgage loans 26 — 26 (12) Repossessed assets (3) 6 — 6 (2) Totals $ 331 $ 275 $ 56 $ (15) December 31, 2020 Residential first mortgage loans $ 30 $ 30 $ — $ (1) Commercial loans 57 — 57 — Impaired loans held-for-investment (2) Residential first mortgage loans 24 — 24 (3) Repossessed assets (3) 8 — 8 (3) Totals $ 119 $ 30 $ 89 $ (7) (1) The fair values are determined at various dates dependent upon when certain conditions were met requiring fair value measurement. (2) Gains (losses) reflect fair value adjustments on assets for which we did not elect the fair value option. (3) Gains (losses) reflect write downs of repossessed assets based on the estimated fair value of the specific assets. The following table presents the quantitative information about nonrecurring Level 3 fair value financial instruments and the fair value measurements: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) June 30, 2021 Commercial loans $ 24 Fair value of collateral Market price N/A Impaired loans held-for-investment Residential first mortgage loans $ 26 Fair value of collateral Loss severity discount 0% - 100% (31.5%) (2) Repossessed assets $ 6 Fair value of collateral Loss severity discount 0% - 96.3% (19.8%) (2) December 31, 2020 Commercial loans 57 Fair value of collateral Market price N/A (1) Impaired loans held-for-investment Residential first mortgage loans $ 24 Fair value of collateral Loss severity discount 0% - 100% (12.8%) (2) Repossessed assets $ 8 Fair value of collateral Loss severity discount 0% - 96.3% (24.5%) (2) (1) Fair value has been determined based on an unobservable market price. (2) Unobservable inputs were weighted by their relative fair value of the instruments. Nonrecurring Significant Unobservable Inputs The significant unobservable inputs used in the fair value measurement of the impaired loans and repossessed assets are appraisals or other third-party price evaluations which incorporate measures such as recent sales prices for comparable properties. Fair Value of Financial Instruments The following table presents the carrying amount and estimated fair value of financial instruments that are carried either at fair value, cost, or amortized cost: June 30, 2021 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 345 $ 345 $ 345 $ — $ — Investment securities available-for-sale 1,823 1,823 — 1,823 — Investment securities held-to-maturity 270 280 — 280 — Loans held-for-sale 6,138 6,138 — 6,138 — Loans held-for-investment 14,052 13,985 — 19 13,966 Loans with government guarantees 2,226 2,191 — 2,191 — Mortgage servicing rights 342 342 — — 342 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 361 361 — 361 — Repossessed assets 6 6 — — 6 Other assets, foreclosure claims 10 10 — 10 — Derivative financial instruments, assets 198 198 — 83 115 Liabilities Retail deposits Demand deposits and savings accounts $ (8,781) $ (8,059) $ — $ (8,059) $ — Certificates of deposit (1,075) (1,078) — (1,078) — Wholesale deposits (1,163) (1,171) — (1,171) — Government deposits (1,981) (1,899) — (1,899) — Company controlled deposits (5,661) (5,643) — (5,643) — Federal Home Loan Bank advances and other (3,295) (3,313) — (3,313) — Long-term debt (396) (342) — (342) — DOJ Liability — — — — — Derivative financial instruments, liabilities (38) (38) — (37) (1) December 31, 2020 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 623 $ 623 $ 623 $ — $ — Investment securities available-for-sale 1,944 1,944 — 1,944 — Investment securities held-to-maturity 377 393 — 393 — Loans held-for-sale 7,098 7,098 — 7,098 — Loans held-for-investment 16,227 16,188 — 11 16,177 Loans with government guarantees 2,516 2,498 — 2,498 — Mortgage servicing rights 329 329 — — 329 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 356 358 — 358 — Repossessed assets 8 8 — — 8 Other assets, foreclosure claims 17 17 — 17 — Derivative financial instruments 281 281 — 73 208 Liabilities Retail deposits Demand deposits and savings accounts $ (8,616) $ (7,864) $ — $ (7,864) $ — Certificates of deposit (1,355) (1,365) — (1,365) — Wholesale deposits (1,031) (1,047) — (1,047) — Government deposits (1,765) (1,706) — (1,706) — Custodial deposits (7,206) (7,133) — (7,133) — Federal Home Loan Bank advances (5,100) (5,124) — (5,124) — Long-term debt (641) (596) — (596) — DOJ Liability (35) (35) — — (35) Derivative financial instruments (102) (102) — (102) — Fair Value Option We elected the fair value option for certain items as discussed throughout the Notes to the Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure. Interest income on LHFS is accrued on the principal outstanding primarily using the "simple-interest" method. The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Assets Loans held-for-sale Net gain on loan sales $ 214 $ 325 $ 127 $ 559 Liabilities Other noninterest expense $ — $ — $ 35 $ — The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected: June 30, 2021 December 31, 2020 UPB Fair Value Fair Value Over / (Under) UPB UPB Fair Value Fair Value Over / (Under) UPB (Dollars in millions) Assets Nonaccrual loans Loans held-for-sale $ 9 $ 8 $ (1) $ 9 $ 7 $ (2) Loans held-for-investment 10 10 — 9 8 (1) Total nonaccrual loans $ 19 $ 18 $ (1) $ 18 $ 15 $ (3) Other performing loans Loans held-for-sale $ 5,658 $ 5,826 $ 168 $ 6,704 $ 7,002 $ 298 Loans held-for-investment 12 11 (1) 5 4 (1) Total other performing loans $ 5,670 $ 5,837 $ 167 $ 6,709 $ 7,006 $ 297 Total loans Loans held-for-sale $ 5,667 $ 5,834 $ 167 $ 6,713 $ 7,009 $ 296 Loans held-for-investment 22 21 (1) 14 12 (2) Total loans $ 5,689 $ 5,855 $ 166 $ 6,727 $ 7,021 $ 294 Liabilities DOJ Liability (1) $ — $ — $ — $ (118) $ (35) $ 83 (1) As of March 31, 2021, the UPB and fair value of this liability has been reported per the terms of the final Settlement and Dismissal Amendment signed on March 29, 2021. See Note 15 - Legal Proceedings, Contingencies and Commitments for further details. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are conducted through three operating segments: Community Banking, Mortgage Originations, and Mortgage Servicing. The Other segment includes the remaining reported activities. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses are incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. The operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by Management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationships of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The Community Banking segment originates loans, provides deposits and fee-based services to consumer, business, and mortgage lending customers through its Branch Banking, Business Banking and Commercial Banking, Government Banking and Warehouse Lending. Products offered through these groups include checking accounts, savings accounts, money market accounts, CD, consumer loans, commercial loans, CRE loans, home builder finance loans and warehouse lines of credit. Other financial services available include consumer and corporate card services, customized treasury management solutions, merchant services and capital markets services such as loan syndications, and investment and insurance products and services. The interest income on LHFI is recognized in the Community Banking segment, excluding residential first mortgages and newly originated home equity products within the Mortgage Originations segment. The Mortgage Originations segment originates and acquires one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. These loans are originated through mortgage branches, call centers, the Internet and third-party counterparties. The Mortgage Originations segment recognizes interest income on loans that are held-for-sale and the gains from sales associated with these loans, along with the interest income on residential mortgages and newly originated home equity products within LHFI. The Mortgage Servicing segment services and subservices mortgage and other consumer loans for others on a fee for service basis and may also collect ancillary fees and earn income through the use of noninterest-bearing escrows. Revenue for those serviced and subserviced loans is earned on a contractual fee basis, with the fees varying based on our responsibilities and the status of the underlying loans. The Mortgage Servicing segment also services loans for our LHFI portfolio and our own LHFS portfolio in the Mortgage Originations segment, for which it earns revenue via an intercompany service fee allocation. The Other segment includes the treasury functions, which include the impact of interest rate risk management, balance sheet funding activities and the administration of the investment securities portfolios, as well as miscellaneous other expenses of a corporate nature. In addition, the Other segment includes revenue and expenses related to treasury and corporate assets and liabilities and equity not directly assigned or allocated to the Community Banking, Mortgage Originations or Mortgage Servicing operating segments. Revenues are comprised of net interest income (before the provision (benefit) for credit losses) and noninterest income. Noninterest expenses and a majority of provision (benefit) for income taxes, are allocated to each operating segment. Provision for credit losses is allocated to segments based on net charge-offs and changes in outstanding balances. In contrast, the level of the consolidated provision for credit losses is determined based on an allowance model using the methodologies described in Item 2 – MD&A. The net effect of the credit provision is recorded in the Other segment. Allocation methodologies may be subject to periodic adjustment as the internal management accounting system is revised and the business or product lines within the segments change. The following tables present financial information by business segment for the periods indicated: Three Months Ended June 30, 2021 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 149 $ 58 $ 3 $ (27) $ 183 Provision (benefit) for credit losses 1 (2) — (43) (44) Net interest income after benefit for credit losses 148 60 3 16 227 Net gain on loan sales — 168 — — 168 Loan fees and charges — 18 19 — 37 Net return on mortgage servicing rights — (5) — — (5) Loan administrative (expense) income — (9) 40 (3) 28 Other noninterest income 15 2 — 7 24 Total noninterest income 15 174 59 4 252 Compensation and benefits 27 49 16 30 122 Commissions 1 50 — — 51 Loan processing expense 2 12 8 — 22 Other noninterest expense (1) 20 21 54 94 Total noninterest expense 29 131 45 84 289 Income (loss) before indirect overhead allocations and income taxes 134 103 17 (64) 190 Indirect overhead allocation (expense) income (9) (16) (5) 30 — Provision (benefit) for income taxes 26 18 3 (4) 43 Net income (loss) $ 99 $ 69 $ 9 $ (30) $ 147 Intersegment revenue (expense) $ 45 $ (1) $ 11 $ (55) $ — Average balances Loans held-for-sale $ 22 $ 6,880 $ — $ — $ 6,902 Loans with government guarantees — 2,344 — — 2,344 Loans held-for-investment (2) 11,827 1,838 — 24 13,689 Total assets 12,175 12,021 268 3,547 28,011 Deposits 11,694 23 6,179 1,174 19,070 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Three Months Ended June 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 133 $ 56 $ 4 $ (25) $ 168 Provision (benefit) for credit losses (3) (2) — 107 102 Net interest income after provision (benefit) for credit losses 136 58 4 (132) 66 Net gain on loan sales — 303 — — 303 Loan fees and charges — 19 19 — 38 Net return on mortgage servicing rights — (8) — — (8) Loan administrative (expense) income (1) (8) 36 (6) 21 Other noninterest income 12 1 — 8 21 Total noninterest income 11 307 55 2 375 Compensation and benefits 24 38 11 43 116 Commissions — 61 — — 61 Loan processing expense 1 11 9 1 22 Other noninterest expense 124 56 17 (103) 94 Total noninterest expense 149 166 37 (59) 293 Income (loss) before indirect overhead allocations and income taxes (2) 199 22 (71) 148 Indirect overhead allocation (expense) income (11) (15) (6) 32 — Provision (benefit) for income taxes (3) 39 3 (7) 32 Net income (loss) $ (10) $ 145 $ 13 $ (32) $ 116 Intersegment (expense) revenue $ (69) $ (34) $ 9 $ 94 $ — Average balances Loans held-for-sale $ — $ 5,645 $ — $ — $ 5,645 Loans with government guarantees — 858 — — 858 Loans held-for-investment (2) 10,878 2,688 — 30 13,596 Total assets 11,292 10,598 69 4,302 26,261 Deposits 10,747 — 6,222 746 17,715 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Six Months Ended June 30, 2021 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 305 $ 114 $ 7 $ (55) $ 371 Provision (benefit) for credit losses (13) (4) — (55) (72) Net interest income after benefit for credit losses 318 118 7 — 443 Net gain on loan sales — 395 — — 395 Loan fees and charges 1 41 37 — 79 Net return on mortgage servicing rights — (5) — — (5) Loan administrative (expense) income — (20) 80 (6) 54 Other noninterest income 34 5 — 14 53 Total noninterest income 35 416 117 8 576 Compensation and benefits 55 103 32 76 266 Commissions 1 111 — — 112 Loan processing expense 3 23 15 2 43 Other noninterest expense 28 42 44 101 215 Total noninterest expense 87 279 91 179 636 Income (loss) before indirect overhead allocations and income taxes 266 255 33 (171) 383 Indirect overhead allocation (expense) income (19) (35) (10) 64 — Provision (benefit) for income taxes 52 46 5 (16) 87 Net income (loss) $ 195 $ 174 $ 18 $ (91) $ 296 Intersegment revenue (expense) $ 59 $ (3) $ 22 $ (78) $ — Average balances Loans held-for-sale $ 11 $ 7,170 $ — $ — $ 7,181 Loans with government guarantees — 2,422 — — 2,422 Loans held-for-investment (2) 12,314 1,958 — 27 14,299 Total assets 12,668 12,515 329 3,520 29,032 Deposits 11,749 19 6,665 1,121 19,554 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Six Months Ended June 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 237 $ 98 $ 8 $ (27) $ 316 Provision (benefit) for credit losses 5 (5) — 116 116 Net interest income after benefit for credit losses 232 103 8 (143) 200 Net gain on loan sales — 393 — — 393 Loan fees and charges — 33 28 — 61 Net return on mortgage servicing rights — (2) — — (2) Loan administrative (expense) income (2) (15) 72 (22) 33 Other noninterest income 28 2 — 14 44 Total noninterest income 26 411 100 (8) 529 Compensation and benefits 51 69 21 77 218 Commissions 1 89 — — 90 Loan processing expense 3 18 16 2 39 Other noninterest expense 168 82 36 (107) 179 Total noninterest expense 223 258 73 (28) 526 Income (loss) before indirect overhead allocations and income taxes 35 256 35 (123) 203 Indirect overhead allocation (expense) income (20) (27) (11) 58 — Provision (benefit) for income taxes 3 48 5 (14) 42 Net income (loss) $ 12 $ 181 $ 19 $ (51) $ 161 Intersegment revenue (expense) $ (75) $ (34) $ 17 $ 92 $ — Average balances Loans held-for-sale $ — $ 5,447 $ — $ — $ 5,447 Loans with government guarantees — 834 — — 834 Loans held-for-investment (2) 9,888 2,792 — 29 12,709 Total assets 10,340 10,207 59 4,231 24,837 Deposits 10,590 — 5,499 666 16,755 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adoption of New Accounting Standards We did not adopt any ASU's during the quarter ended June 30, 2021. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards We did not adopt any ASU's during the quarter ended June 30, 2021. |
Credit Quality | Credit Quality We utilize a combination of internal and external risk rating systems which are applied to all consumer and commercial loans which are used as loan-level inputs to our ACL models. Descriptions of our risk ratings as they relate to credit quality follow the ratings used by the U.S. bank regulatory agencies as listed below. Pass. Pass assets are not impaired nor do they have any known deficiencies that could impact the quality of the asset. Watch. Watch assets are defined as pass-rated assets that exhibit elevated risk characteristics or other factors that deserve Management’s close attention and increased monitoring. However, the asset does not exhibit a potential or well-defined weakness that would warrant a downgrade to criticized or adverse classification. Special mention. Assets identified as special mention possess credit deficiencies or potential weaknesses deserving Management's close attention. Special mention assets have a potential weakness or pose an unwarranted financial risk that, if not corrected, could weaken the assets and increase risk in the future. Special mention assets are criticized, but do not expose an institution to sufficient risk to warrant adverse classification. Substandard . Assets identified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the full collection or liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. For HELOANs and other consumer loans, we evaluate credit quality based on the aging and status of payment activity and any other known credit characteristics that call into question full repayment of the asset. Substandard loans may be placed on either accrual or nonaccrual status. Doubtful . An asset classified as doubtful has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. A doubtful asset has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital, and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Due to the high probability of loss, doubtful assets are placed on nonaccrual. Loss. An asset classified as loss is considered uncollectible and of such little value that the continuance as a bankable asset is not warranted. This classification does not mean that an asset has absolutely no recovery or salvage value, rather that it is not practical or desirable to defer writing off the asset even though partial recovery may be affected in the future. Consumer Loans Consumer loans consist of open and closed-end loans extended to individuals for household, family, and other personal expenditures. Consumer loans includes other consumer product loans and loans to individuals secured by their personal residence, including first mortgage, home equity, and home improvement loans. Because consumer loans are usually relatively small-balance, homogeneous exposures, consumer loans are rated based primarily on payment performance. Payment performance is a proxy for the strength of repayment capacity and loans are generally classified based on their payment status rather than by an individual review of each loan. In accordance with regulatory guidance, we assign risk ratings to consumer loans in the following manner: • Consumer loans are classified as Watch once the loan becomes 60 days past due. • Open and closed-end consumer loans 90 days or more past due are classified as Substandard. |
Fair Value Measurements | We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability through an orderly transaction between market participants at the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on Management's judgment, assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Securities | The following table presents our investment securities: Amortized Cost Gross Unrealized Gross Unrealized Fair Value (Dollars in millions) June 30, 2021 Available-for-sale securities Agency - Commercial $ 779 $ 23 $ — $ 802 Agency - Residential 814 19 — 833 Corporate debt obligations 70 4 — 74 Municipal obligations 24 — — 24 Other MBS 89 — — 89 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 1,777 $ 46 $ — $ 1,823 Held-to-maturity securities Agency - Commercial $ 133 $ 4 $ — $ 137 Agency - Residential 137 6 — 143 Total held-to-maturity securities (1) $ 270 $ 10 $ — $ 280 December 31, 2020 Available-for-sale securities Agency - Commercial $ 1,018 $ 43 $ — $ 1,061 Agency - Residential 707 28 — 735 Corporate debt obligations 75 2 — 77 Municipal obligations 27 1 — 28 Other MBS 42 — — 42 Certificate of deposits 1 — — 1 Total available-for-sale securities (1) $ 1,870 $ 74 $ — $ 1,944 Held-to-maturity securities Agency - Commercial $ 193 $ 7 $ — $ 200 Agency - Residential 184 9 — 193 Total held-to-maturity securities (1) $ 377 $ 16 $ — $ 393 (1) There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at June 30, 2021 or December 31, 2020. |
Summary of Unrealized Loss Positions on Investment Securities - Held-to-Maturity | The following table summarizes the unrealized loss positions on AFS and investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) June 30, 2021 Available-for-sale securities Agency - Commercial $ 6 2 $ — $ 12 4 $ — Agency - Residential — — — 1 2 — Other mortgage-backed securities — 1 — 6 2 — Held-to-maturity securities Agency - Residential $ — — $ — $ — 1 $ — December 31, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 7 2 $ — Agency - Residential — — — — 1 — Corporate debt obligations — — — 10 3 — Other mortgage-backed securities — — — — 1 — Held-to-maturity securities Agency - Residential $ — — $ — $ 2 3 $ — |
Summary of Unrealized Loss Positions on Investment Securities - Available-for-Sale | The following table summarizes the unrealized loss positions on AFS and investment securities, by duration of the unrealized loss: Unrealized Loss Position with Unrealized Loss Position with Fair Value Number of Securities Unrealized Loss Fair Number of Unrealized (Dollars in millions) June 30, 2021 Available-for-sale securities Agency - Commercial $ 6 2 $ — $ 12 4 $ — Agency - Residential — — — 1 2 — Other mortgage-backed securities — 1 — 6 2 — Held-to-maturity securities Agency - Residential $ — — $ — $ — 1 $ — December 31, 2020 Available-for-sale securities Agency - Commercial $ 3 1 $ — $ 7 2 $ — Agency - Residential — — — — 1 — Corporate debt obligations — — — 10 3 — Other mortgage-backed securities — — — — 1 — Held-to-maturity securities Agency - Residential $ — — $ — $ 2 3 $ — |
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The following table shows the amortized cost and estimated fair value of securities by contractual maturity: Investment Securities Available-for-Sale Investment Securities Held-to-Maturity Amortized Fair Weighted Average Amortized Fair Weighted Average (Dollars in millions) June 30, 2021 Due in one year or less $ 6 $ 6 2.25 % $ — $ — — % Due after one year through five years 10 11 3.81 % 10 10 2.53 % Due after five years through 10 years 106 111 3.88 % 4 4 1.99 % Due after 10 years 1,655 1,695 2.20 % 256 266 2.47 % Total $ 1,777 $ 1,823 $ 270 $ 280 (1) Weighted-average yields are based on amortized cost weighted for the contractual maturity of each security. |
Loans Held-for-Investment (Tabl
Loans Held-for-Investment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Loans Held-for-Investment and UPB of Loan Sales and Purchases in the Loans Held-for-Investment Portfolio | The following table presents our LHFI: June 30, 2021 December 31, 2020 (Dollars in millions) Consumer loans Residential first mortgage $ 1,794 $ 2,266 Home equity 717 856 Other 1,133 1,004 Total consumer loans 3,644 4,126 Commercial loans Commercial real estate 3,169 3,061 Commercial and industrial 1,376 1,382 Warehouse lending 5,863 7,658 Total commercial loans 10,408 12,101 Total loans held-for-investment $ 14,052 $ 16,227 The following table presents the UPB of our loan sales and purchases in the LHFI portfolio: Six Months Ended June 30, 2021 2020 (Dollars in millions) Loans Sold (1) Performing loans $ 87 $ 38 Total loans sold $ 87 $ 38 Net gain associated with loan sales (2) $ — Loans Purchased Other consumer — 63 Total loans purchased $ — $ 63 Premium associated with loans purchased $ — $ — (1) Upon a change in our intent, the loans were transferred to LHFS and subsequently sold. |
Changes in ALLL and Method of Evaluation by Class of Loan | The following table presents changes in the ALLL, by class of loan: Residential Home Equity Other Commercial Commercial Warehouse Total (Dollars in millions) Three Months Ended June 30, 2021 Beginning balance $ 45 $ 20 $ 33 $ 84 $ 55 $ 4 $ 241 (Benefit) provision 4 (4) 6 (26) (17) (1) (38) Charge-offs (1) — (1) — — — (2) Recoveries — 1 — — — — 1 Ending allowance balance $ 48 $ 17 $ 38 $ 58 $ 38 $ 3 $ 202 Three Months Ended June 30, 2020 Beginning balance $ 46 $ 23 $ 16 $ 28 $ 18 $ 1 $ 132 Provision 16 5 19 55 5 — 100 Charge-offs (2) (1) (2) — — — (5) Recoveries — 1 1 — — — 2 Ending allowance balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 Six Months Ended June 30, 2021 Beginning balance $ 49 $ 25 $ 39 $ 84 $ 51 $ 4 $ 252 (Benefit) provision 1 (7) (1) (26) (28) (1) $ (62) Charge-offs (3) (1) (2) — (1) — $ (7) Recoveries 1 — 2 — 16 — $ 19 Ending allowance balance $ 48 $ 17 $ 38 $ 58 $ 38 $ 3 $ 202 Six Months Ended June 30, 2020 Beginning balance, prior to adoption of ASC 326 $ 22 $ 14 $ 6 $ 38 $ 22 $ 5 $ 107 Impact of adopting ASC 326 25 12 10 (14) (6) (4) $ 23 Provision 16 2 20 59 7 — $ 104 Charge-offs (3) (2) (3) — — — $ (8) Recoveries — 2 1 — — — $ 3 Ending allowance balance $ 60 $ 28 $ 34 $ 83 $ 23 $ 1 $ 229 (1) Includes LGG. |
Aging Analysis of Past Due and Current Loans | The following table sets forth the LHFI aging analysis of past due and current loans: 30-59 Days 60-89 Days 90 Days or Total Current Total LHFI (3) (4) (5) (Dollars in millions) June 30, 2021 Consumer loans Residential first mortgage $ 4 $ 2 $ 45 $ 51 $ 1,743 $ 1,794 Home equity 2 1 8 11 706 717 Other 2 1 2 5 1,128 1,133 Total consumer loans 8 4 55 67 3,577 3,644 Commercial loans Commercial real estate — — 2 2 3,167 3,169 Commercial and industrial — — 18 18 1,358 1,376 Warehouse lending — — — — 5,863 5,863 Total commercial loans — — 20 20 10,388 10,408 Total loans (2) $ 8 $ 4 $ 75 $ 87 $ 13,965 $ 14,052 December 31, 2020 Consumer loans Residential first mortgage $ 4 $ 4 $ 31 $ 39 $ 2,227 $ 2,266 Home equity 1 1 5 7 849 856 Other 4 1 2 7 997 1,004 Total consumer loans 9 6 38 53 4,073 4,126 Commercial loans Commercial real estate 20 — 3 23 3,038 3,061 Commercial and industrial 1 — 15 16 1,366 1,382 Warehouse lending — — — — 7,658 7,658 Total commercial loans 21 — 18 39 12,062 12,101 Total loans (2) $ 30 $ 6 $ 56 $ 92 $ 16,135 $ 16,227 (1) Includes less than 90 day past due performing loans which are deemed nonaccrual. Interest is not being accrued on these loans. (2) Includes $9 million and $8 million of past due loans accounted for under the fair value option as of June 30, 2021 and December 31, 2020, respectively. (3) Collateral dependent loans totaled $89 million and $80 million at June 30, 2021 and December 31, 2020, respectively. The majority of these loans are secured by real estate. (4) The interest income recognized on impaired loans was less than a million and $2 million for the three months ended June 30, 2021 and December 31, 2020, respectively. |
Summary of TDRs by Type and Performing Status and Newly Modified TDRs | The following table provides a summary of TDRs by type and performing status: TDRs Performing Nonperforming Total (Dollars in millions) June 30, 2021 Consumer loans Residential first mortgage $ 21 $ 9 $ 30 Home equity 10 2 12 Total consumer TDR loans 31 11 42 Commercial loans Commercial real estate — — — Commercial and industrial $ — $ 2 2 Total TDRs (1)(2) $ 31 $ 13 $ 44 December 31, 2020 Consumer loans Residential first mortgage $ 19 $ 8 $ 27 Home equity 12 2 14 Total consumer TDR loans 31 10 41 Commercial loans Commercial real estate 5 — 5 Total TDRs (1)(2) $ 36 $ 10 $ 46 (1) ALLL on TDR loans totaled $5 million at June 30, 2021 and December 31, 2020. (2) Includes $2 million and $3 million of TDR loans accounted for under the fair value option at June 30, 2021 and December 31, 2020. The following table provides a summary of newly modified TDRs: New TDRs Number of Accounts Pre-Modification Unpaid Principal Balance Post-Modification Unpaid Principal Balance (1) (Dollars in millions) Three Months Ended June 30, 2021 Residential first mortgages 5 $ 3 $ 3 Home equity(2)(3) 1 $ — $ — Commercial Real Estate 1 $ 2 $ 2 Total TDR loans 7 $ 5 $ 5 Three Months Ended June 30, 2020 Commercial Real Estate 1 $ 5 $ 5 Total TDR loans 1 $ 5 $ 5 Six Months Ended June 30, 2021 Residential first mortgages 11 $ 7 $ 7 Home equity(2)(3) 1 $ — $ — Consumer — $ — $ — Commercial Real Estate 1 $ 2 $ 2 Total TDR loans 13 $ 9 $ 9 Six Months Ended June 30, 2020 Residential first mortgages 5 $ 1 $ 1 Home equity(2)(3) 2 $ — $ — Consumer 1 $ — $ — Commercial Real Estate 1 $ 5 $ 5 Total TDR loans 9 $ 6 $ 6 (1) Post-modification balances include past due amounts that are capitalized at modification date. (2) Home equity post-modification UPB reflects write downs. (3) Includes loans carried at the fair value option. |
Loan Credit Quality Indicators | The following table presents the amortized cost in residential and consumer loans based on payment activity: Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2020 Term Loans Amortized Cost Basis by Closing Year June 30, 2021 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 202 $ 256 $ 358 $ 150 $ 177 $ 497 $ 88 $ 7 $ 1,735 $ 2,205 Watch — — 1 — 1 2 1 — 5 21 Substandard — — 6 6 2 23 — 1 38 25 Home Equity Pass 3 5 21 8 5 18 613 36 709 838 Watch — — — — — — 1 — 1 13 Substandard — — — — — 2 2 2 6 3 Other Consumer Pass 227 262 270 121 2 5 239 4 1,130 1,000 Watch — — — — — — — — — 1 Substandard — 1 1 1 — — — — 3 3 Total Consumer Loans (1)(2) $ 432 $ 524 $ 657 $ 286 $ 187 $ 547 $ 944 $ 50 $ 3,627 $ 4,109 (1) Excludes loans carried under the fair value option. (2) The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends. Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total December 31, 2019 Term Loans Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage Pass $ 362 $ 544 $ 231 $ 289 $ 252 $ 420 $ 92 $ 15 $ 2,205 $ 3,107 Watch — 1 1 1 — 17 1 — 21 23 Substandard — 3 5 2 — 15 — — 25 15 Home Equity Pass 7 31 13 6 2 11 720 48 838 1,002 Watch — — — — — 11 2 — 13 16 Substandard — — — — — 1 1 1 3 3 Other Consumer Pass 292 321 145 3 1 6 227 5 1,000 727 Watch — — — — — — — 1 1 1 Substandard 1 1 1 — — — — — 3 1 Total Consumer Loans (1)(2) $ 662 $ 901 $ 396 $ 301 $ 255 $ 481 $ 1,043 $ 70 $ 4,109 $ 4,895 (1) Excludes loans carried under the fair value option. (2) The delinquency status for loans in forbearance are frozen for loans at inception of the forbearance period and will resume when the borrower's forbearance period ends. The following table presents the amortized cost in residential and consumer loans based on credit scores: Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year June 30, 2021 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 90 $ 136 $ 161 $ 67 $ 113 $ 289 $ 55 $ 1 $ 912 700-750 64 70 118 62 56 149 24 4 547 <700 48 50 86 27 11 84 10 3 319 Home Equity >750 3 2 6 3 2 5 286 6 313 700-750 — 2 8 3 2 8 244 17 284 <700 — 1 7 2 1 7 86 15 119 Other Consumer >750 156 188 170 66 1 3 227 3 814 700-750 70 71 92 47 1 1 7 — 289 <700 1 4 9 9 — 1 5 1 30 Total Consumer Loans (1) $ 432 $ 524 $ 657 $ 286 $ 187 $ 547 $ 944 $ 50 $ 3,627 (1) Excludes loans carried under the fair value option. Revolving Loans Converted to Term Loans Amortized Cost Basis FICO Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >750 $ 195 $ 272 $ 118 $ 193 $ 181 $ 231 $ 55 $ 6 $ 1,251 700-750 119 180 90 85 64 130 25 7 700 <700 48 96 29 14 7 91 13 2 300 Home Equity >750 2 9 6 2 1 7 324 13 364 700-750 3 12 4 3 1 8 289 20 340 <700 2 10 3 1 — 8 110 16 150 Other Consumer >750 209 205 80 2 1 5 213 6 721 700-750 79 107 55 1 — 1 9 — 252 <700 5 10 11 — — — 5 — 31 Total Consumer Loans (1) $ 662 $ 901 $ 396 $ 301 $ 255 $ 481 $ 1,043 $ 70 $ 4,109 (1) Excludes loans carried under the fair value option. Loan-to-value ratios primarily impact the allowance on mortgages within the consumer loan portfolio. The following table presents the amortized cost in residential first mortgages and home equity based on loan-to-value ratios: Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of June 30, 2021 2020 2019 2018 2017 Prior Consumer Loans (Dollars in millions) Residential First Mortgage >90 $ 70 $ 82 $ 199 $ 79 $ 23 $ 20 $ — $ — $ 473 71-90 74 110 93 40 56 240 — — 613 55-70 38 41 41 14 55 162 — — 351 <55 20 23 32 23 46 100 89 8 341 Home Equity >90 — — — — 1 9 — — 10 71-90 2 3 16 6 3 8 451 27 516 <=70 1 2 5 2 1 3 165 11 190 Total (1) $ 205 $ 261 $ 386 $ 164 $ 185 $ 542 $ 705 $ 46 $ 2,494 (1) Excludes loans carried under the fair value option. Revolving Loans Converted to Term Loans Amortized Cost Basis LTV Band Revolving Loans Amortized Cost Basis Total Amortized Cost Basis by Closing Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Consumer Loans (Dollars in millions) Residential first mortgage >90 $ 84 $ 260 $ 123 $ 35 $ 3 $ 19 $ — $ — $ 524 71-90 169 180 66 99 72 238 — — 824 55-70 83 60 22 82 96 122 — — 465 <55 26 48 26 76 81 73 93 15 438 Home Equity >90 — — — 1 1 10 — — 12 71-90 5 24 10 4 1 9 548 33 634 <=70 2 7 3 1 — 4 175 16 208 Total (1) $ 369 $ 579 $ 250 $ 298 $ 254 $ 475 $ 816 $ 64 $ 3,105 (1) Excludes loans carried under the fair value option. Based on the most recent credit analysis performed, the amortized cost basis, by risk category for each class of loans within the commercial portfolio, is as follows: Revolving Loans Converted to Term Loans Amortized Cost Basis Term Loans Revolving Loans Amortized Cost Basis Total December 31, 2020 Amortized Cost Basis by Closing Year As of June 30, 2021 2020 2019 2018 2017 Prior Commercial Loans (Dollars in million) Commercial real estate Pass $ 182 $ 292 $ 644 $ 377 $ 250 $ 454 $ 749 $ — $ 2,948 $ 2,805 Watch — 4 9 27 94 60 9 — 203 166 Special mention — — 1 1 — 6 — — 8 53 Substandard — — 2 — — — 8 — 10 37 Commercial and industrial Pass 49 90 180 85 98 15 710 — 1,227 1,200 Watch — 1 10 5 — — 38 — 54 106 Special mention — 1 17 9 — — 18 — 45 24 Substandard 1 — 8 10 5 — 26 — 50 52 Warehouse Pass 5,718 — — — — — — — 5,718 7,398 Watch 145 — — — — — — — 145 260 Special mention — — — — — — — — — — Substandard — — — — — — — — — — Total commercial loans $ 6,095 $ 388 $ 871 $ 514 $ 447 $ 535 $ 1,558 $ — $ 10,408 $ 12,101 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Changes in the Fair Value of Residential First Mortgage MSRs | Changes in the fair value of residential first mortgage MSRs were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Balance at beginning of period $ 428 $ 223 $ 329 $ 291 Additions from loans sold with servicing retained 64 84 129 124 Reductions from sales (96) (10) (96) (46) Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) (32) (27) (71) (49) Changes in estimates of fair value due to interest rate risk (1) (2) (22) (9) 51 (59) Fair value of MSRs at end of period $ 342 $ 261 $ 342 $ 261 (1) Changes in fair value are included within net return on mortgage servicing rights on the Consolidated Statements of Operations. (2) Represents estimated MSR value change resulting primarily from market-driven changes which we manage through the use of derivatives. |
Summary of Adverse Changes to Weighted-Average Assumptions on the Fair Value of Servicing Rights | The following table summarizes the hypothetical effect on the fair value of servicing rights using adverse changes of 10 percent and 20 percent to the weighted average of certain significant assumptions used in valuing these assets: June 30, 2021 December 31, 2020 Fair value Fair value Actual 10% adverse change 20% adverse change Actual 10% adverse change 20% adverse change (Dollars in millions) Option adjusted spread 8.91 % $ 334 $ 326 7.98 % $ 321 $ 313 Constant prepayment rate 9.37 % 327 312 10.53 % 305 283 Weighted average cost to service per loan $ 80.58 339 335 $ 81.24 325 321 |
Summary of Income and Fees | The following table summarizes income and fees associated with owned MSRs: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Net return (loss) on mortgage servicing rights Servicing fees, ancillary income and late fees (1) $ 29 $ 24 $ 60 $ 45 Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (32) (27) (71) (49) Changes in fair value due to interest rate risk (22) (9) 51 (59) Gain (loss) on MSR derivatives (2) 27 6 (38) 64 Net transaction costs (7) (2) (7) (3) Total return included in net return on mortgage servicing rights $ (5) $ (8) $ (5) $ (2) (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on a cash basis. (2) Changes in the derivatives utilized as economic hedges to offset changes in fair value of the MSRs. The following table summarizes income and fees associated with our mortgage loans subserviced for others: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Loan administration income on mortgage loans subserviced Servicing fees, ancillary income and late fees (1) $ 33 $ 30 $ 65 $ 61 Charges on subserviced custodial balances (2) (2) (7) (5) (23) Other servicing charges (2) (2) (5) (5) Total income on mortgage loans subserviced, included in loan administration $ 29 $ 21 $ 55 $ 33 (1) Servicing fees are recorded on an accrual basis. Ancillary income and late fees are recorded on cash basis. (2) Charges on subserviced custodial balances represent interest due to the MSR owner. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount, Estimated Fair Value and Maturity and Net Gain (Loss) Recognized on Designated Instruments | The following tables present the notional amount, estimated fair value and maturity of our derivative financial instruments: June 30, 2021 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Liabilities Interest rate swaps on custodial deposits $ 800 $ 1 2026-2027 Derivatives in fair value hedge relationships: Assets Interest rate swaps on AFS securities $ 100 $ — 2022 Total derivative assets $ 900 $ 1 Liabilities Interest rate swaps on AFS securities $ 350 $ — 2024-2025 Interest rate swaps on HFI residential first mortgages $ 100 $ — 2024 Total derivative liabilities $ 450 $ — Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards 4,632 19 2021 Rate lock commitments 8,905 115 2021 Interest rate swaps and swaptions 2,663 64 2021-2051 Total derivative assets $ 16,200 $ 198 Liabilities Futures $ 562 $ — 2021-2023 Mortgage-backed securities forwards $ 6,249 $ 31 2021 Rate lock commitments 270 1 2021 Interest rate swaps 1,309 4 2020-2050 Total derivative liabilities $ 8,390 $ 36 (1) Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior day's fair value of open positions is considered a settlement of the derivative position for accounting purposes. (2) Derivative assets and liabilities are included in other assets and other liabilities on the Consolidated Statements of Financial Condition, respectively. December 31, 2020 (1) Notional Amount Fair Value (2) Expiration Dates (Dollars in millions) Derivatives in cash flow hedge relationships: Liabilities Interest rate swaps on custodial deposits $ 800 1 2026-2027 Derivatives in fair value hedge relationships: Liabilities Interest rate swaps on HFI residential first mortgages 100 — 2024 Interest rate swaps on AFS securities 450 — 2022-2025 Total hedge accounting swaps $ 1,350 $ 1 Derivatives not designated as hedging instruments: Assets Futures $ 1,346 $ — 2021-2023 Mortgage-backed securities forwards 749 14 2021 Rate lock commitments 10,587 208 2021 Interest rate swaps and swaptions 1,481 59 2021-2051 Total derivative assets $ 14,163 $ 281 Liabilities Mortgage-backed securities forwards $ 11,194 $ 98 2021 Rate lock commitments 115 — 2021 Interest rate swaps and swaptions 1,305 4 2021-2030 Total derivative liabilities $ 12,614 $ 102 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered a settlement of the derivative position for accounting purposes. |
Derivatives Subject to a Master Netting Arrangement | The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral: Gross Amounts Netted in the Statements of Financial Condition Net Amount Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Gross Amount Financial Instruments Cash Collateral (Dollars in millions) June 30, 2021 Derivatives designated as hedging instruments: Assets Interest rate swaps on AFS securities $ — $ — $ — $ — $ 1 Total derivative assets $ — $ — $ — $ — $ 1 Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ 1 Interest rate swaps on custodial deposits — — — — 9 Interest rate swaps on HFI residential first mortgages — — — — 1 Total derivative liabilities $ — $ — $ — $ — $ 11 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 19 $ — $ 19 $ — $ 5 Interest rate swaps and swaptions (1) 64 — 64 — 6 Total derivative assets $ 83 $ — $ 83 $ — $ 11 Liabilities Mortgage-backed securities forwards $ 31 $ — $ 31 $ — $ 26 Interest rate swaps 4 — 4 — 30 Total derivative liabilities $ 35 $ — $ 35 $ — $ 56 December 31, 2020 Derivatives designated as hedging instruments: Liabilities Interest rate swaps on AFS securities $ — $ — $ — $ — $ 5 Interest rate swaps on HFI residential first mortgages — — — — 1 Interest rate swaps on custodial deposits 1 — 1 — 8 Total derivative liabilities $ 1 $ — $ 1 $ — $ 14 Derivatives not designated as hedging instruments: Assets Mortgage-backed securities forwards $ 14 $ — $ 14 $ — $ — Interest rate swaps 59 — 59 — 6 Total derivative assets $ 73 $ — $ 73 $ — $ 6 Liabilities Mortgage-backed securities forwards $ 98 $ — $ 98 $ — $ 68 Interest rate swaps and swaptions (1) 4 — 4 — 26 Total derivative liabilities $ 102 $ — $ 102 $ — $ 94 (1) Variation margin pledged to or received from a Central Counterparty Clearing House to cover the prior day's fair value of open positions, is considered settlement of the derivative position for accounting purposes. |
Net Gain (Loss) Recognized in Income on Derivative Instruments | The following table presents net gain recognized in income on derivative instruments, net of the impact of offsetting positions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Derivatives not designated as hedging instruments: Location of gain (loss) Futures Net return on mortgage servicing rights $ — $ 1 $ — $ 1 Interest rate swaps and swaptions Net return on mortgage servicing rights 20 3 (27) 41 Mortgage-backed securities forwards Net return on mortgage servicing rights 7 4 (11) 23 Rate lock commitments and MSR forwards Net gain on loan sales (178) 219 (15) 120 Interest rate swaps (1) Other noninterest income 1 — 1 — Total derivative gain (loss) $ (150) $ 227 $ (52) $ 185 (1) Includes customer-initiated commercial interest rate swaps. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Breakdown of FHLB Advances Outstanding | The following is a breakdown of our FHLB advances and other borrowings outstanding: June 30, 2021 December 31, 2020 Amount Rate Amount Rate (Dollars in millions) Short-term fixed rate term advances $ 1,130 0.20 % $ 3,415 0.20 % Short-term variable rate term advances 300 0.10 % — — % Other short-term borrowings (1) 665 0.13 % 485 0.08 % Total short-term Federal Home Loan Bank advances and other borrowings 2,095 3,900 Long-term fixed rate advances (2) 1,200 1.03 % 1,200 1.03 % Total Federal Home Loan Bank advances and other borrowings 3,295 5,100 (1) Includes borrowings under overnight federal funds purchased lines with other Federal Reserve member institutions. (2) Includes the current portion of fixed rate advances of $200 million and $0 at June 30, 2021 and December 31, 2020, respectively. |
Detailed Information on FHLB Advances and Other Borrowings | The following table contains detailed information on our FHLB advances and other borrowings: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Maximum outstanding at any month end $ 3,575 $ 5,660 $ 4,737 $ 6,841 Average outstanding balance $ 3,622 $ 4,821 $ 3,800 $ 4,590 Average remaining borrowing capacity $ 5,295 $ 5,272 $ 5,389 $ 5,124 Weighted average interest rate 0.45 % 0.45 % 0.44 % 0.86 % |
Maturity Dates of FHLB Advances and Other Borrowings | The following table outlines the maturity dates of our FHLB advances and other borrowings: June 30, 2021 (Dollars in millions) 2021 $ 2,095 2022 200 2023 500 2024 100 Thereafter 400 Total $ 3,295 |
Long-Term Debt, Net of Debt Issuance Costs | The following table presents long-term debt, net of debt issuance costs: June 30, 2021 December 31, 2020 Amount Interest Rate Amount Interest Rate (Dollars in millions) Senior Notes Senior notes, settled 2021 $ — — % $ 246 6.125 % Subordinated Notes Notes, matures 2030 149 4.125 % 148 4.125 % Trust Preferred Securities Floating Three Month LIBOR Plus: 3.25%, matures 2032 26 3.40 % 26 3.50 % 3.25%, matures 2033 26 3.43 % 26 3.49 % 3.25%, matures 2033 26 3.40 % 26 3.49 % 2.00%, matures 2035 26 2.18 % 26 2.24 % 2.00%, matures 2035 26 2.18 % 26 2.24 % 1.75%, matures 2035 51 1.87 % 51 1.97 % 1.50%, matures 2035 25 1.68 % 25 1.74 % 1.45%, matures 2037 25 1.57 % 25 1.67 % 2.50%, matures 2037 16 2.62 % 16 2.72 % Total Trust Preferred Securities 247 247 Total other long-term debt $ 396 $ 641 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The following table sets forth the components in AOCI: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Investment Securities Beginning balance $ 37 $ 35 $ 52 $ 1 Unrealized gain (2) 27 (22) 72 Less: Tax provision — 6 (5) 17 Net unrealized gain (2) 21 (17) 55 Other comprehensive income, net of tax (2) 21 (17) 55 Ending balance $ 35 $ 56 $ 35 $ 56 Cash Flow Hedges Beginning balance $ 17 $ (4) $ (5) $ — Unrealized loss (9) (10) 17 (15) Less: Tax benefit (1) (3) 4 (4) Net unrealized loss (8) (7) 13 (11) Reclassifications out of AOCI (1) 1 1 2 1 Less: Tax provision (benefit) — — — — Other comprehensive loss, net of tax (7) (6) 15 (10) Ending balance $ 10 $ (10) $ 10 $ (10) (1) Reclassifications are reported in noninterest income on the Consolidated Statements of Operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share of Common Stock | The following table sets forth the computation of basic and diluted earnings per share of common stock: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions, except share data) Net income applicable to common stockholders $ 147 $ 116 $ 296 $ 161 Weighted Average Shares Weighted average common shares outstanding 52,763,868 56,790,642 52,719,959 56,723,254 Effect of dilutive securities Stock-based awards 772,801 333,064 697,937 433,561 Weighted average diluted common shares $ 53,536,669 $ 57,123,706 $ 53,417,896 $ 57,156,815 Earnings per common share Basic earnings per common share $ 2.78 $ 2.04 $ 5.61 $ 2.85 Effect of dilutive securities Stock-based awards (0.04) (0.01) (0.07) (0.02) Diluted earnings per common share $ 2.74 $ 2.03 $ 5.54 $ 2.83 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock and restricted stock units activity: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Shares Weighted — Average Grant-Date Fair Value per Share Shares Weighted — Average Grant-Date Fair Value per Share Restricted Stock and Restricted Stock Units Non-vested balance at beginning of period 1,063,285 $ 32.00 974,186 $ 30.88 Granted 201,262 44.66 345,330 42.80 Vested (93,213) 32.29 (135,662) 33.05 Canceled and forfeited (28,353) 30.97 (40,873) 30.85 Non-vested balance at end of period 1,142,981 $ 34.23 $ 1,142,981 $ 34.23 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax and Effective Tax Provision Rate | The following table presents our provision for income tax and effective tax provision rate: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Income before income taxes 190 148 $ 383 $ 203 Provision for income taxes 43 32 87 42 Effective tax provision rate 22.5 % 21.5 % 22.7 % 20.6 % |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Regulatory Capital Ratios | The following tables present the regulatory capital requirements under the applicable Basel III based U.S. capital rules: Flagstar Bancorp Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2021 Tier 1 capital (to adjusted avg. total assets) $ 2,562 9.21 % $ 1,113 4.0 % $ 1,391 5.0 % Common equity Tier 1 capital (to RWA) $ 2,322 11.38 % $ 918 4.5 % $ 1,326 6.5 % Tier 1 capital (to RWA) $ 2,562 12.56 % $ 1,224 6.0 % $ 1,632 8.0 % Total capital (to RWA) $ 2,882 14.13 % $ 1,632 8.0 % $ 2,040 10.0 % December 31, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,270 7.71 % $ 1,178 4.0 % $ 1,472 5.0 % Common equity Tier 1 capital (to RWA) $ 2,030 9.15 % $ 999 4.5 % $ 1,442 6.5 % Tier 1 capital (to RWA) $ 2,270 10.23 % $ 1,331 6.0 % $ 1,775 8.0 % Total capital (to RWA) $ 2,638 11.89 % $ 1,775 8.0 % $ 2,219 10.0 % Flagstar Bank Actual For Capital Adequacy Purposes Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in millions) June 30, 2021 Tier 1 capital (to adjusted avg. total assets) $ 2,464 8.88 % $ 1,111 4.0 % $ 1,388 5.0 % Common equity Tier 1 capital (to RWA) $ 2,464 12.08 % $ 918 4.5 % $ 1,326 6.5 % Tier 1 capital (to RWA) $ 2,464 12.08 % $ 1,224 6.0 % $ 1,632 8.0 % Total capital (to RWA) $ 2,634 12.92 % $ 1,632 8.0 % $ 2,039 10.0 % December 31, 2020 Tier 1 capital (to adjusted avg. total assets) $ 2,390 8.12 % $ 1,177 4.0 % $ 1,472 5.0 % Common equity Tier 1 capital (to RWA) $ 2,390 10.77 % $ 999 4.5 % $ 1,443 6.5 % Tier 1 capital (to RWA) $ 2,390 10.77 % $ 1,332 6.0 % $ 1,775 8.0 % Total capital (to RWA) $ 2,608 11.75 % $ 1,775 8.0 % $ 2,219 10.0 % |
Legal Proceedings, Contingenc_2
Legal Proceedings, Contingencies and Commitments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Amount of Significant Commitments | The following table is a summary of the contractual amount of significant commitments: June 30, 2021 December 31, 2020 (Dollars in millions) Commitments to extend credit Mortgage loan commitments including interest rate locks $ 9,175 $ 10,702 Warehouse loan commitments 4,869 2,849 Commercial and industrial commitments 1,537 1,271 Other construction commitments 2,176 1,934 HELOC commitments 596 544 Other consumer commitments 166 121 Standby and commercial letters of credit 102 95 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Carried at Fair Value | The following tables present the financial instruments carried at fair value by caption on the Consolidated Statements of Financial Condition and by level in the valuation hierarchy. June 30, 2021 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 802 $ — $ 802 Agency - Residential — 833 — 833 Municipal obligations — 24 — 24 Corporate debt obligations — 74 — 74 Other MBS — 89 — 89 Certificate of deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 5,834 — 5,834 Loans held-for-investment Residential first mortgage loans — 19 — 19 Home equity — — 2 2 Mortgage servicing rights — — 342 342 Derivative assets Rate lock commitments (fallout-adjusted) — — 115 115 Mortgage-backed securities forwards — 19 — 19 Interest rate swaps and swaptions — 64 — 64 Total assets at fair value $ — $ 7,759 $ 459 $ 8,218 Derivative liabilities Rate lock commitments (fallout-adjusted) $ — $ — $ (1) $ (1) Mortgage backed securities forwards — (31) — (31) Interest rate swaps — (6) — (6) Total liabilities at fair value $ — $ (37) $ (1) $ (38) December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value (Dollars in millions) Investment securities available-for-sale Agency - Commercial $ — $ 1,061 $ — $ 1,061 Agency - Residential — 735 — 735 Municipal obligations — 28 — 28 Corporate debt obligations — 77 — 77 Other MBS — 42 — 42 Certificate of deposit — 1 — 1 Loans held-for-sale Residential first mortgage loans — 7,009 — 7,009 Loans held-for-investment Residential first mortgage loans — 11 — 11 Home equity — — 2 2 Mortgage servicing rights — — 329 329 Derivative assets Rate lock commitments (fallout-adjusted) — — 208 208 Mortgage-backed securities forwards — 14 — 14 Interest rate swaps and swaptions — 59 — 59 Total assets at fair value $ — $ 9,037 $ 539 $ 9,576 Derivative liabilities Mortgage-backed securities forwards $ — $ (98) $ — $ (98) Interest rate swaps — (4) — (4) DOJ Liability — — (35) (35) Total liabilities at fair value $ — $ (102) $ (35) $ (137) |
Roll Forward of Financial Instruments Classified as Level 3 | The following table includes a roll forward of the Consolidated Statements of Financial Condition amounts (including the change in fair value) for financial instruments classified by us within Level 3 of the valuation hierarchy: Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Three Months Ended June 30, 2021 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 428 (54) 64 (96) — — $ 342 Rate lock commitments (net) (2)(3) 74 47 179 — — (186) $ 114 Totals $ 504 $ (7) $ 243 $ (96) $ — $ (186) $ 458 Liabilities DOJ Liability $ (70) $ — $ — $ — $ 70 $ — $ — Totals $ (70) $ — $ — $ — $ 70 $ — $ — Three Months Ended June 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 223 (36) 84 (10) — — 261 Rate lock commitments (net) (2)(3) 169 79 309 — — (352) 205 Totals $ 394 $ 43 $ 393 $ (10) $ — $ (352) $ 468 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (16) (11) — — — — (27) Totals $ (51) $ (11) $ — $ — $ — $ — $ (62) (1) There were no unrealized gains (losses) recorded in OCI during the three months ended June 30, 2021 and 2020. (2) We utilized swaptions, futures, forward agency and loan sales and interest rate swaps to manage the risk associated with MSRs and rate lock commitments. Gains and losses for individual lines do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. Balance at Total Gains (Losses) Recorded in Earnings (1) Purchases / Closings Sales Settlement Transfers Out Balance at (Dollars in millions) Six Months Ended June 30, 2021 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 329 (20) 129 (96) — — $ 342 Rate lock commitments (net) (2)(3) 208 (122) 384 — — (356) $ 114 Totals $ 539 $ (142) $ 513 $ (96) $ — $ (356) $ 458 Liabilities DOJ Liability $ (35) $ (35) $ — $ — $ 70 $ — $ — Totals $ (35) $ (35) $ — $ — $ 70 $ — $ — Six Months Ended June 30, 2020 Assets Loans held-for-investment Home equity $ 2 $ — $ — $ — $ — $ — $ 2 Mortgage servicing rights (2) 291 (108) 124 (46) — — 261 Rate lock commitments (net) (2)(3) 34 184 472 — — (485) 205 Totals $ 327 $ 76 $ 596 $ (46) $ — $ (485) $ 468 Liabilities DOJ Liability $ (35) $ — $ — $ — $ — $ — $ (35) Contingent consideration (10) (17) — — — — (27) Totals $ (45) $ (17) $ — $ — $ — $ — $ (62) (1) There were no unrealized gains (losses) recorded in OCI during the six months ended June 30, 2021 and 2020. (2) We utilized swaptions, futures, forward agency and loan sales and interest rate swaps to manage the risk associated with MSRs and rate lock commitments. Gains and losses for individual lines do not reflect the effect of our risk management activities related to such Level 3 instruments. (3) Rate lock commitments are reported on a fallout-adjusted basis. Transfers out of Level 3 represent the settlement value of the commitments that are transferred to LHFS, which are classified as Level 2 assets. |
Quantitative Information about Recurring Level 3 Fair Value Instruments | The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) June 30, 2021 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 12.6% - 18.9% (15.8%) 1.5%-2.3% (1.9%) (1) Mortgage servicing rights $ 342 Discounted cash flows Option adjusted spread 3.8% - 21.6% (8.9%) 0% - 11.5% (9.4%) $67 - $95 ($81) (1) Rate lock commitments (net) $ 114 Consensus pricing Origination pull-through rate 72.1% - 87.2% (73.9%) (1) (1) Unobservable inputs were weighted by their relative fair value of the instruments. Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) December 31, 2020 Assets Loans held-for-investment Home equity $ 2 Discounted cash flows Discount rate 7.2% -10.8% (9.0%) 12.6% - 18.9% (15.8%) 1.5%-2.3% (1.9%) (1) Mortgage servicing rights $ 329 Discounted cash flows Option adjusted spread 3.4% - 21.2% (8.0%) 0% - 13.3% (10.5%) $67 - $95 ($81) (1) Rate lock commitments (net) $ 208 Consensus pricing Closing pull-through rate 75.7% - 87.2% (77.5%) (1) Liabilities DOJ Liability $ (35) Discounted cash flows See description below See description below (1) Unobservable inputs were weighted by their relative fair value of the instruments. |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis: Total (1) Level 2 Level 3 Losses (Dollars in millions) June 30, 2021 Loans held-for-sale (2) $ 275 $ 275 $ — $ (1) Commercial loans 24 — 24 — Impaired loans held-for-investment (2) Residential first mortgage loans 26 — 26 (12) Repossessed assets (3) 6 — 6 (2) Totals $ 331 $ 275 $ 56 $ (15) December 31, 2020 Residential first mortgage loans $ 30 $ 30 $ — $ (1) Commercial loans 57 — 57 — Impaired loans held-for-investment (2) Residential first mortgage loans 24 — 24 (3) Repossessed assets (3) 8 — 8 (3) Totals $ 119 $ 30 $ 89 $ (7) (1) The fair values are determined at various dates dependent upon when certain conditions were met requiring fair value measurement. (2) Gains (losses) reflect fair value adjustments on assets for which we did not elect the fair value option. (3) Gains (losses) reflect write downs of repossessed assets based on the estimated fair value of the specific assets. |
Quantitative Information about Nonrecurring Level 3 Fair Value Financial Instruments | The following table presents the quantitative information about nonrecurring Level 3 fair value financial instruments and the fair value measurements: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (Dollars in millions) June 30, 2021 Commercial loans $ 24 Fair value of collateral Market price N/A Impaired loans held-for-investment Residential first mortgage loans $ 26 Fair value of collateral Loss severity discount 0% - 100% (31.5%) (2) Repossessed assets $ 6 Fair value of collateral Loss severity discount 0% - 96.3% (19.8%) (2) December 31, 2020 Commercial loans 57 Fair value of collateral Market price N/A (1) Impaired loans held-for-investment Residential first mortgage loans $ 24 Fair value of collateral Loss severity discount 0% - 100% (12.8%) (2) Repossessed assets $ 8 Fair value of collateral Loss severity discount 0% - 96.3% (24.5%) (2) (1) Fair value has been determined based on an unobservable market price. (2) Unobservable inputs were weighted by their relative fair value of the instruments. |
Carrying Amount and Estimated Fair Value of Financial Instruments | The following table presents the carrying amount and estimated fair value of financial instruments that are carried either at fair value, cost, or amortized cost: June 30, 2021 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 345 $ 345 $ 345 $ — $ — Investment securities available-for-sale 1,823 1,823 — 1,823 — Investment securities held-to-maturity 270 280 — 280 — Loans held-for-sale 6,138 6,138 — 6,138 — Loans held-for-investment 14,052 13,985 — 19 13,966 Loans with government guarantees 2,226 2,191 — 2,191 — Mortgage servicing rights 342 342 — — 342 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 361 361 — 361 — Repossessed assets 6 6 — — 6 Other assets, foreclosure claims 10 10 — 10 — Derivative financial instruments, assets 198 198 — 83 115 Liabilities Retail deposits Demand deposits and savings accounts $ (8,781) $ (8,059) $ — $ (8,059) $ — Certificates of deposit (1,075) (1,078) — (1,078) — Wholesale deposits (1,163) (1,171) — (1,171) — Government deposits (1,981) (1,899) — (1,899) — Company controlled deposits (5,661) (5,643) — (5,643) — Federal Home Loan Bank advances and other (3,295) (3,313) — (3,313) — Long-term debt (396) (342) — (342) — DOJ Liability — — — — — Derivative financial instruments, liabilities (38) (38) — (37) (1) December 31, 2020 Estimated Fair Value Carrying Value Total Level 1 Level 2 Level 3 (Dollars in millions) Assets Cash and cash equivalents $ 623 $ 623 $ 623 $ — $ — Investment securities available-for-sale 1,944 1,944 — 1,944 — Investment securities held-to-maturity 377 393 — 393 — Loans held-for-sale 7,098 7,098 — 7,098 — Loans held-for-investment 16,227 16,188 — 11 16,177 Loans with government guarantees 2,516 2,498 — 2,498 — Mortgage servicing rights 329 329 — — 329 Federal Home Loan Bank stock 377 377 — 377 — Bank owned life insurance 356 358 — 358 — Repossessed assets 8 8 — — 8 Other assets, foreclosure claims 17 17 — 17 — Derivative financial instruments 281 281 — 73 208 Liabilities Retail deposits Demand deposits and savings accounts $ (8,616) $ (7,864) $ — $ (7,864) $ — Certificates of deposit (1,355) (1,365) — (1,365) — Wholesale deposits (1,031) (1,047) — (1,047) — Government deposits (1,765) (1,706) — (1,706) — Custodial deposits (7,206) (7,133) — (7,133) — Federal Home Loan Bank advances (5,100) (5,124) — (5,124) — Long-term debt (641) (596) — (596) — DOJ Liability (35) (35) — — (35) Derivative financial instruments (102) (102) — (102) — |
Changes in Fair Value Included in Earnings | The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in millions) Assets Loans held-for-sale Net gain on loan sales $ 214 $ 325 $ 127 $ 559 Liabilities Other noninterest expense $ — $ — $ 35 $ — |
Differences Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding | The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected: June 30, 2021 December 31, 2020 UPB Fair Value Fair Value Over / (Under) UPB UPB Fair Value Fair Value Over / (Under) UPB (Dollars in millions) Assets Nonaccrual loans Loans held-for-sale $ 9 $ 8 $ (1) $ 9 $ 7 $ (2) Loans held-for-investment 10 10 — 9 8 (1) Total nonaccrual loans $ 19 $ 18 $ (1) $ 18 $ 15 $ (3) Other performing loans Loans held-for-sale $ 5,658 $ 5,826 $ 168 $ 6,704 $ 7,002 $ 298 Loans held-for-investment 12 11 (1) 5 4 (1) Total other performing loans $ 5,670 $ 5,837 $ 167 $ 6,709 $ 7,006 $ 297 Total loans Loans held-for-sale $ 5,667 $ 5,834 $ 167 $ 6,713 $ 7,009 $ 296 Loans held-for-investment 22 21 (1) 14 12 (2) Total loans $ 5,689 $ 5,855 $ 166 $ 6,727 $ 7,021 $ 294 Liabilities DOJ Liability (1) $ — $ — $ — $ (118) $ (35) $ 83 (1) As of March 31, 2021, the UPB and fair value of this liability has been reported per the terms of the final Settlement and Dismissal Amendment signed on March 29, 2021. See Note 15 - Legal Proceedings, Contingencies and Commitments for further details. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Business Segment | The following tables present financial information by business segment for the periods indicated: Three Months Ended June 30, 2021 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 149 $ 58 $ 3 $ (27) $ 183 Provision (benefit) for credit losses 1 (2) — (43) (44) Net interest income after benefit for credit losses 148 60 3 16 227 Net gain on loan sales — 168 — — 168 Loan fees and charges — 18 19 — 37 Net return on mortgage servicing rights — (5) — — (5) Loan administrative (expense) income — (9) 40 (3) 28 Other noninterest income 15 2 — 7 24 Total noninterest income 15 174 59 4 252 Compensation and benefits 27 49 16 30 122 Commissions 1 50 — — 51 Loan processing expense 2 12 8 — 22 Other noninterest expense (1) 20 21 54 94 Total noninterest expense 29 131 45 84 289 Income (loss) before indirect overhead allocations and income taxes 134 103 17 (64) 190 Indirect overhead allocation (expense) income (9) (16) (5) 30 — Provision (benefit) for income taxes 26 18 3 (4) 43 Net income (loss) $ 99 $ 69 $ 9 $ (30) $ 147 Intersegment revenue (expense) $ 45 $ (1) $ 11 $ (55) $ — Average balances Loans held-for-sale $ 22 $ 6,880 $ — $ — $ 6,902 Loans with government guarantees — 2,344 — — 2,344 Loans held-for-investment (2) 11,827 1,838 — 24 13,689 Total assets 12,175 12,021 268 3,547 28,011 Deposits 11,694 23 6,179 1,174 19,070 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Three Months Ended June 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 133 $ 56 $ 4 $ (25) $ 168 Provision (benefit) for credit losses (3) (2) — 107 102 Net interest income after provision (benefit) for credit losses 136 58 4 (132) 66 Net gain on loan sales — 303 — — 303 Loan fees and charges — 19 19 — 38 Net return on mortgage servicing rights — (8) — — (8) Loan administrative (expense) income (1) (8) 36 (6) 21 Other noninterest income 12 1 — 8 21 Total noninterest income 11 307 55 2 375 Compensation and benefits 24 38 11 43 116 Commissions — 61 — — 61 Loan processing expense 1 11 9 1 22 Other noninterest expense 124 56 17 (103) 94 Total noninterest expense 149 166 37 (59) 293 Income (loss) before indirect overhead allocations and income taxes (2) 199 22 (71) 148 Indirect overhead allocation (expense) income (11) (15) (6) 32 — Provision (benefit) for income taxes (3) 39 3 (7) 32 Net income (loss) $ (10) $ 145 $ 13 $ (32) $ 116 Intersegment (expense) revenue $ (69) $ (34) $ 9 $ 94 $ — Average balances Loans held-for-sale $ — $ 5,645 $ — $ — $ 5,645 Loans with government guarantees — 858 — — 858 Loans held-for-investment (2) 10,878 2,688 — 30 13,596 Total assets 11,292 10,598 69 4,302 26,261 Deposits 10,747 — 6,222 746 17,715 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Six Months Ended June 30, 2021 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 305 $ 114 $ 7 $ (55) $ 371 Provision (benefit) for credit losses (13) (4) — (55) (72) Net interest income after benefit for credit losses 318 118 7 — 443 Net gain on loan sales — 395 — — 395 Loan fees and charges 1 41 37 — 79 Net return on mortgage servicing rights — (5) — — (5) Loan administrative (expense) income — (20) 80 (6) 54 Other noninterest income 34 5 — 14 53 Total noninterest income 35 416 117 8 576 Compensation and benefits 55 103 32 76 266 Commissions 1 111 — — 112 Loan processing expense 3 23 15 2 43 Other noninterest expense 28 42 44 101 215 Total noninterest expense 87 279 91 179 636 Income (loss) before indirect overhead allocations and income taxes 266 255 33 (171) 383 Indirect overhead allocation (expense) income (19) (35) (10) 64 — Provision (benefit) for income taxes 52 46 5 (16) 87 Net income (loss) $ 195 $ 174 $ 18 $ (91) $ 296 Intersegment revenue (expense) $ 59 $ (3) $ 22 $ (78) $ — Average balances Loans held-for-sale $ 11 $ 7,170 $ — $ — $ 7,181 Loans with government guarantees — 2,422 — — 2,422 Loans held-for-investment (2) 12,314 1,958 — 27 14,299 Total assets 12,668 12,515 329 3,520 29,032 Deposits 11,749 19 6,665 1,121 19,554 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. Six Months Ended June 30, 2020 Community Banking Mortgage Originations Mortgage Servicing Other (1) Total (Dollars in millions) Summary of Operations Net interest income $ 237 $ 98 $ 8 $ (27) $ 316 Provision (benefit) for credit losses 5 (5) — 116 116 Net interest income after benefit for credit losses 232 103 8 (143) 200 Net gain on loan sales — 393 — — 393 Loan fees and charges — 33 28 — 61 Net return on mortgage servicing rights — (2) — — (2) Loan administrative (expense) income (2) (15) 72 (22) 33 Other noninterest income 28 2 — 14 44 Total noninterest income 26 411 100 (8) 529 Compensation and benefits 51 69 21 77 218 Commissions 1 89 — — 90 Loan processing expense 3 18 16 2 39 Other noninterest expense 168 82 36 (107) 179 Total noninterest expense 223 258 73 (28) 526 Income (loss) before indirect overhead allocations and income taxes 35 256 35 (123) 203 Indirect overhead allocation (expense) income (20) (27) (11) 58 — Provision (benefit) for income taxes 3 48 5 (14) 42 Net income (loss) $ 12 $ 181 $ 19 $ (51) $ 161 Intersegment revenue (expense) $ (75) $ (34) $ 17 $ 92 $ — Average balances Loans held-for-sale $ — $ 5,447 $ — $ — $ 5,447 Loans with government guarantees — 834 — — 834 Loans held-for-investment (2) 9,888 2,792 — 29 12,709 Total assets 10,340 10,207 59 4,231 24,837 Deposits 10,590 — 5,499 666 16,755 (1) Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients. (2) Includes adjustment made to reclassify operating lease assets to LHFI. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Apr. 26, 2021USD ($)branchproductionOfficestateshares | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||
Assets | $ | $ 87,000 | $ 27,065 | $ 31,038 |
Number of traditional branches | branch | 400 | ||
Number of states in which branches are located | 9 | ||
Number of loan production offices | productionOffice | 87 | ||
Number of states in which offices are located | 28 | ||
NYCB | |||
Business Acquisition [Line Items] | |||
Common Stock Portion, number of Flagstar stock for each share of NYCB common stock | shares | 4.0151 |
Investment Securities - Summary
Investment Securities - Summary of Investment Securities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Trading and Available-for-sale Securities [Line Items] | ||
Securities of a single issuer that exceeded 10% of stockholders' equity | $ 0 | $ 0 |
Available-for-sale securities | ||
Amortized Cost | 1,777,000,000 | 1,870,000,000 |
Gross Unrealized Gains | 46,000,000 | 74,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,823,000,000 | 1,944,000,000 |
Held-to-maturity securities | ||
Amortized Cost | 270,000,000 | 377,000,000 |
Gross Unrealized Gains | 10,000,000 | 16,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 280,000,000 | 393,000,000 |
Agency - Commercial | ||
Available-for-sale securities | ||
Amortized Cost | 779,000,000 | 1,018,000,000 |
Gross Unrealized Gains | 23,000,000 | 43,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 802,000,000 | 1,061,000,000 |
Held-to-maturity securities | ||
Amortized Cost | 133,000,000 | 193,000,000 |
Gross Unrealized Gains | 4,000,000 | 7,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 137,000,000 | 200,000,000 |
Agency - Residential | ||
Available-for-sale securities | ||
Amortized Cost | 814,000,000 | 707,000,000 |
Gross Unrealized Gains | 19,000,000 | 28,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 833,000,000 | 735,000,000 |
Held-to-maturity securities | ||
Amortized Cost | 137,000,000 | 184,000,000 |
Gross Unrealized Gains | 6,000,000 | 9,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 143,000,000 | 193,000,000 |
Corporate debt obligations | ||
Available-for-sale securities | ||
Amortized Cost | 24,000,000 | 75,000,000 |
Gross Unrealized Gains | 0 | 2,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 74,000,000 | 77,000,000 |
Municipal obligations | ||
Available-for-sale securities | ||
Amortized Cost | 70,000,000 | 27,000,000 |
Gross Unrealized Gains | 4,000,000 | 1,000,000 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 24,000,000 | 28,000,000 |
Other MBS | ||
Available-for-sale securities | ||
Amortized Cost | 89,000,000 | 42,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 89,000,000 | 42,000,000 |
Certificate of deposits | ||
Available-for-sale securities | ||
Amortized Cost | 1,000,000 | 1,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,000,000 | $ 1,000,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Percentage of total securities | 91.00% | |
Unrealized credit losses | $ 0 | $ 0 |
Other assets | 1,168,000,000 | 1,250,000,000 |
Accrued interest receivable on investment securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Other assets | $ 5,000,000 | $ 5,000,000 |
Investment Securities - Availab
Investment Securities - Available-for-Sale Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Purchase of AFS securities | $ 197,000,000 | $ 283,000,000 | $ 359,000,000 | |
Passive interest in private MBS | 58,000,000 | $ 0 | 58,000,000 | $ 18,000,000 |
AFS securities sold | $ 0 | $ 0 |
Investment Securities - Held-to
Investment Securities - Held-to-Maturity Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Held-to-maturity Securities [Line Items] | |||||
Purchase of HTM securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Sale of HTM securities | 0 | $ 0 | 0 | $ 0 | |
Collateral pledged | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Investment securities pledged | $ 226,000,000 | $ 226,000,000 | $ 202,000,000 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Loss Positions on Investment Securities (Details) $ in Millions | Jun. 30, 2021USD ($)securities | Dec. 31, 2020USD ($)securities |
Agency - Commercial | ||
Fair Value | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 6 | $ 3 |
Unrealized Loss Position with Duration Under 12 Months | $ 12 | $ 7 |
Number of Securities | ||
Unrealized Loss Position with Duration 12 Months and Over | securities | 2 | 1 |
Unrealized Loss Position with Duration Under 12 Months | securities | 4 | 2 |
Unrealized Loss | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 0 | $ 0 |
Unrealized Loss Position with Duration Under 12 Months | 0 | 0 |
Agency - Residential | ||
Fair Value | ||
Unrealized Loss Position with Duration 12 Months and Over | 0 | 0 |
Unrealized Loss Position with Duration Under 12 Months | $ 1 | $ 0 |
Number of Securities | ||
Unrealized Loss Position with Duration 12 Months and Over | securities | 0 | 0 |
Unrealized Loss Position with Duration Under 12 Months | securities | 2 | 1 |
Unrealized Loss | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 0 | $ 0 |
Unrealized Loss Position with Duration Under 12 Months | 0 | 0 |
Fair Value | ||
Unrealized Loss Position with Duration 12 Months and Over | 0 | 0 |
Unrealized Loss Position with Duration Under 12 Months | $ 0 | $ 2 |
Number of Securities | ||
Unrealized Loss Position with Duration 12 Months and Over | securities | 0 | 0 |
Unrealized Loss Position with Duration Under 12 Months | securities | 1 | 3 |
Unrealized Loss | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 0 | $ 0 |
Unrealized Loss Position with Duration Under 12 Months | 0 | 0 |
Corporate debt obligations | ||
Fair Value | ||
Unrealized Loss Position with Duration 12 Months and Over | 0 | |
Unrealized Loss Position with Duration Under 12 Months | $ 10 | |
Number of Securities | ||
Unrealized Loss Position with Duration 12 Months and Over | securities | 0 | |
Unrealized Loss Position with Duration Under 12 Months | securities | 3 | |
Unrealized Loss | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 0 | |
Unrealized Loss Position with Duration Under 12 Months | 0 | |
Other mortgage-backed securities | ||
Fair Value | ||
Unrealized Loss Position with Duration 12 Months and Over | 0 | 0 |
Unrealized Loss Position with Duration Under 12 Months | $ 6 | $ 0 |
Number of Securities | ||
Unrealized Loss Position with Duration 12 Months and Over | securities | 1 | 0 |
Unrealized Loss Position with Duration Under 12 Months | securities | 2 | 1 |
Unrealized Loss | ||
Unrealized Loss Position with Duration 12 Months and Over | $ 0 | $ 0 |
Unrealized Loss Position with Duration Under 12 Months | $ 0 | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investment Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 6 | |
Due after one year through five years | 10 | |
Due after five years through 10 years | 106 | |
Due after 10 years | 1,655 | |
Amortized Cost | 1,777 | $ 1,870 |
Investment Securities Available-for-Sale, Fair Value | ||
Due in one year or less | 6 | |
Due after one year through five years | 11 | |
Due after five years through 10 years | 111 | |
Due after 10 years | 1,695 | |
Fair Value | $ 1,823 | 1,944 |
Investment Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 2.25% | |
Due after one year through five years (as a percent) | 3.81% | |
Due after five years through 10 years (as a percent) | 3.88% | |
Due after 10 years (as a percent) | 2.20% | |
Investment Securities Held-to-maturity, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 10 | |
Due after five years through 10 years | 4 | |
Due after 10 years | 256 | |
Amortized Cost | 270 | 377 |
Investment Securities Held-to-maturity, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 10 | |
Due after five years through 10 years | 4 | |
Due after 10 years | 266 | |
Fair Value | $ 280 | $ 393 |
Investment Securities Held-to-maturity, Weighted Average Yield | ||
Due in one year or less (as a percent) | 0.00% | |
Due after one year through five years (as a percent) | 2.53% | |
Due after five years through 10 years (as a percent) | 1.99% | |
Due after 10 years (as a percent) | 2.47% |
Loans Held-for-Sale (Details)
Loans Held-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net gain on loan sales | $ 168 | $ 303 | $ 395 | $ 393 | |
Loans Held-for-Sale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | 6,100 | 6,100 | $ 7,100 | ||
Net gain on loan sales | 168 | $ 303 | 395 | $ 392 | |
LHFS Recorded at Lower of Cost or Fair Value | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans held-for-sale | $ 280 | $ 280 | $ 31 |
Loans Held-for-Investment - Nar
Loans Held-for-Investment - Narrative (Details) | 3 Months Ended | |||||
Jun. 30, 2021USD ($)loans | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Other assets | $ 1,168,000,000 | $ 1,250,000,000 | ||||
Loans pledged as collateral | 10,900,000,000 | 11,600,000,000 | ||||
Allowance for loan loss | 202,000,000 | 252,000,000 | $ 241,000,000 | $ 229,000,000 | $ 132,000,000 | $ 107,000,000 |
Interest income on nonaccrual loans using cash basis method | 1,000,000 | 2,000,000 | ||||
Loans 90 days past due and still accruing interest | 0 | 0 | ||||
Other liabilities | $ 1,226,000,000 | 1,272,000,000 | ||||
Number of loans modified in previous 12 months that have defaulted | loans | 0 | |||||
Unfunded Commitments | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Other liabilities | $ 18,000,000 | $ 21,000,000 | ||||
Accrued interest receivable on loans held-for-investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Other assets | $ 39,000,000 | $ 43,000,000 |
Loans Held-for-Investment - Sum
Loans Held-for-Investment - Summary of Loans Held-for-Investment and UPB of Loan Sales and Purchases in the Loans Held-for-Investment Portfolio (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | $ 14,052 | $ 16,227 | ||
Total loans sold | 87 | $ 38 | ||
Net gain associated with loan sales | 0 | |||
Total loans purchased | 0 | 63 | ||
Premium associated with loans purchased | 0 | 0 | ||
Performing loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans sold | 87 | 38 | ||
Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans purchased | 0 | $ 63 | ||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 3,644 | 4,126 | ||
Consumer loans | Residential first mortgage loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 1,794 | 2,266 | ||
Consumer loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 717 | 856 | ||
Consumer loans | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 1,133 | 1,004 | ||
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 10,408 | 12,101 | $ 7,222 | |
Commercial loans | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 3,169 | 3,061 | ||
Commercial loans | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | 1,376 | 1,382 | ||
Commercial loans | Warehouse lending | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment | $ 5,863 | $ 7,658 |
Loans Held-for-Investment - Cha
Loans Held-for-Investment - Changes in ALLL by Class of Loan (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | $ 241 | $ 132 | $ 107 | $ 252 | $ 107 | |
(Benefit) provision | (38) | 100 | (62) | 104 | ||
Charge-offs | (2) | (5) | (7) | (8) | ||
Recoveries | 1 | 2 | 19 | 3 | ||
Ending allowance balance | 202 | 229 | $ 132 | 202 | 229 | $ 107 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | $ 23 | 23 | ||||
Ending allowance balance | $ 23 | |||||
Consumer loans | Residential first mortgage loans | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 45 | 46 | 22 | 49 | 22 | |
(Benefit) provision | 4 | 16 | 1 | 16 | ||
Charge-offs | (1) | (2) | (3) | (3) | ||
Recoveries | 0 | 0 | 1 | 0 | ||
Ending allowance balance | 48 | 60 | 46 | 48 | 60 | 22 |
Consumer loans | Residential first mortgage loans | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 25 | 25 | ||||
Ending allowance balance | 25 | |||||
Consumer loans | Home equity | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 20 | 23 | 14 | 25 | 14 | |
(Benefit) provision | (4) | 5 | (7) | 2 | ||
Charge-offs | 0 | (1) | (1) | (2) | ||
Recoveries | 1 | 1 | 0 | 2 | ||
Ending allowance balance | 17 | 28 | 23 | 17 | 28 | 14 |
Consumer loans | Home equity | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 12 | 12 | ||||
Ending allowance balance | 12 | |||||
Consumer loans | Other consumer | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 33 | 16 | 6 | 39 | 6 | |
(Benefit) provision | 6 | 19 | (1) | 20 | ||
Charge-offs | (1) | (2) | (2) | (3) | ||
Recoveries | 0 | 1 | 2 | 1 | ||
Ending allowance balance | 38 | 34 | 16 | 38 | 34 | 6 |
Consumer loans | Other consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 10 | 10 | ||||
Ending allowance balance | 10 | |||||
Commercial loans | Commercial real estate | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 84 | 28 | 38 | 84 | 38 | |
(Benefit) provision | (26) | 55 | (26) | 59 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending allowance balance | 58 | 83 | 28 | 58 | 83 | 38 |
Commercial loans | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (14) | (14) | ||||
Ending allowance balance | (14) | |||||
Commercial loans | Commercial and industrial | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 55 | 18 | 22 | 51 | 22 | |
(Benefit) provision | (17) | 5 | (28) | 7 | ||
Charge-offs | 0 | 0 | (1) | 0 | ||
Recoveries | 0 | 0 | 16 | 0 | ||
Ending allowance balance | 38 | 23 | 18 | 38 | 23 | 22 |
Commercial loans | Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | (6) | (6) | ||||
Ending allowance balance | (6) | |||||
Commercial loans | Warehouse lending | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | 4 | 1 | 5 | 4 | 5 | |
(Benefit) provision | (1) | 0 | (1) | 0 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending allowance balance | $ 3 | $ 1 | 1 | $ 3 | 1 | 5 |
Commercial loans | Warehouse lending | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Allowance for Loan Losses [Roll Forward] | ||||||
Beginning balance | $ (4) | $ (4) | ||||
Ending allowance balance | $ (4) |
Loans Held-for-Investment - Agi
Loans Held-for-Investment - Aging Analysis of Past Due and Current Loans (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans, Aging [Abstract] | |||
Total past due | $ 87 | $ 92 | |
Current | 13,965 | 16,135 | |
Total loans | 14,052 | 16,227 | |
Loans greater than 90 days past due accounted for under the fair value option | 9 | 8 | |
Loans pledged as collateral | 10,900 | 11,600 | |
Interest income recognized (less than) | 1 | 2 | |
Collateral pledged | |||
Loans, Aging [Abstract] | |||
Loans pledged as collateral | 89 | 80 | |
30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 8 | 30 | |
60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 4 | 6 | |
90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 75 | 56 | |
Consumer loans | |||
Loans, Aging [Abstract] | |||
Total past due | 67 | 53 | |
Current | 3,577 | 4,073 | |
Total loans | 3,644 | 4,126 | |
Consumer loans | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 8 | 9 | |
Consumer loans | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 4 | 6 | |
Consumer loans | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 55 | 38 | |
Consumer loans | Residential first mortgage loans | |||
Loans, Aging [Abstract] | |||
Total past due | 51 | 39 | |
Current | 1,743 | 2,227 | |
Total loans | 1,794 | 2,266 | |
Consumer loans | Residential first mortgage loans | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 4 | 4 | |
Consumer loans | Residential first mortgage loans | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 4 | |
Consumer loans | Residential first mortgage loans | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 45 | 31 | |
Consumer loans | Home equity | |||
Loans, Aging [Abstract] | |||
Total past due | 11 | 7 | |
Current | 706 | 849 | |
Total loans | 717 | 856 | |
Consumer loans | Home equity | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 1 | |
Consumer loans | Home equity | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 1 | 1 | |
Consumer loans | Home equity | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 8 | 5 | |
Consumer loans | Other | |||
Loans, Aging [Abstract] | |||
Total past due | 5 | 7 | |
Current | 1,128 | 997 | |
Total loans | 1,133 | 1,004 | |
Consumer loans | Other | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 4 | |
Consumer loans | Other | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 1 | 1 | |
Consumer loans | Other | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 2 | |
Commercial loans | |||
Loans, Aging [Abstract] | |||
Total past due | 20 | 39 | |
Current | 10,388 | 12,062 | |
Total loans | 10,408 | 12,101 | $ 7,222 |
Commercial loans | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 21 | |
Commercial loans | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Commercial loans | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 20 | 18 | |
Commercial loans | Commercial real estate | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 23 | |
Current | 3,167 | 3,038 | |
Total loans | 3,169 | 3,061 | |
Commercial loans | Commercial real estate | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 20 | |
Commercial loans | Commercial real estate | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Commercial loans | Commercial real estate | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 2 | 3 | |
Commercial loans | Commercial and industrial | |||
Loans, Aging [Abstract] | |||
Total past due | 18 | 16 | |
Current | 1,358 | 1,366 | |
Total loans | 1,376 | 1,382 | |
Commercial loans | Commercial and industrial | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 1 | |
Commercial loans | Commercial and industrial | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Commercial loans | Commercial and industrial | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 18 | 15 | |
Commercial loans | Warehouse lending | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Current | 5,863 | 7,658 | |
Total loans | 5,863 | 7,658 | |
Commercial loans | Warehouse lending | 30-59 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Commercial loans | Warehouse lending | 60-89 Days Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | 0 | 0 | |
Commercial loans | Warehouse lending | 90 Days or Greater Past Due | |||
Loans, Aging [Abstract] | |||
Total past due | $ 0 | $ 0 |
Loans Held-for-Investment - S_2
Loans Held-for-Investment - Summary of TDRs by Type and Performing Status and Newly Modified TDRs (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Troubled Debt Restructurings | ||||||||
TDRs | $ 44 | $ 44 | $ 46 | |||||
Allowance for loan loss | 202 | $ 229 | 202 | $ 229 | $ 241 | 252 | $ 132 | $ 107 |
TDR loans under fair value option | $ 2 | $ 2 | 3 | |||||
Number of Accounts (in loans) | loan | 7 | 1 | 13 | 9 | ||||
Pre-Modification Unpaid Principal Balance | $ 5 | $ 5 | $ 9 | $ 6 | ||||
Post-Modification Unpaid Principal Balance | 5 | 5 | 9 | 6 | ||||
Troubled debt restructurings | ||||||||
Troubled Debt Restructurings | ||||||||
Allowance for loan loss | 5 | 5 | 5 | |||||
Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 31 | 31 | 36 | |||||
Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 13 | 13 | 10 | |||||
Consumer loans | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 42 | 42 | 41 | |||||
Consumer loans | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 31 | 31 | 31 | |||||
Consumer loans | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 11 | 11 | 10 | |||||
Consumer loans | Residential first mortgage loans | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 30 | 30 | 27 | |||||
Allowance for loan loss | $ 48 | 60 | $ 48 | $ 60 | 45 | 49 | 46 | 22 |
Number of Accounts (in loans) | loan | 5 | 11 | 5 | |||||
Pre-Modification Unpaid Principal Balance | $ 3 | $ 7 | $ 1 | |||||
Post-Modification Unpaid Principal Balance | 3 | 7 | 1 | |||||
Consumer loans | Residential first mortgage loans | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 21 | 21 | 19 | |||||
Consumer loans | Residential first mortgage loans | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 9 | 9 | 8 | |||||
Consumer loans | Home equity | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 12 | 12 | 14 | |||||
Allowance for loan loss | $ 17 | $ 28 | $ 17 | $ 28 | 20 | 25 | 23 | 14 |
Number of Accounts (in loans) | loan | 1 | 1 | 2 | |||||
Pre-Modification Unpaid Principal Balance | $ 0 | $ 0 | $ 0 | |||||
Post-Modification Unpaid Principal Balance | 0 | 0 | $ 0 | |||||
Consumer loans | Home equity | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 10 | 10 | 12 | |||||
Consumer loans | Home equity | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | $ 2 | $ 2 | 2 | |||||
Consumer loans | Commercial real estate | ||||||||
Troubled Debt Restructurings | ||||||||
Number of Accounts (in loans) | loan | 1 | 1 | 1 | 1 | ||||
Pre-Modification Unpaid Principal Balance | $ 2 | $ 5 | $ 2 | $ 5 | ||||
Post-Modification Unpaid Principal Balance | 2 | 5 | $ 2 | $ 5 | ||||
Consumer loans | Consumer | ||||||||
Troubled Debt Restructurings | ||||||||
Number of Accounts (in loans) | loan | 0 | 1 | ||||||
Pre-Modification Unpaid Principal Balance | $ 0 | $ 0 | ||||||
Post-Modification Unpaid Principal Balance | 0 | 0 | ||||||
Commercial loans | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 5 | |||||||
Commercial loans | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 5 | |||||||
Commercial loans | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 0 | |||||||
Commercial loans | Commercial real estate | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 0 | 0 | ||||||
Commercial loans | Commercial real estate | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 0 | 0 | ||||||
Commercial loans | Commercial real estate | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 0 | 0 | ||||||
Commercial loans | Commercial and industrial | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 2 | 2 | ||||||
Allowance for loan loss | 38 | $ 23 | 38 | $ 23 | $ 55 | $ 51 | $ 18 | $ 22 |
Commercial loans | Commercial and industrial | Performing | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | 0 | 0 | ||||||
Commercial loans | Commercial and industrial | Nonperforming | ||||||||
Troubled Debt Restructurings | ||||||||
TDRs | $ 2 | $ 2 |
Loans Held-for-Investment - Loa
Loans Held-for-Investment - Loan Quality Indicators (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 14,052 | $ 16,227 | |
Consumer loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 432 | 662 | |
Year Two | 524 | 901 | |
Year Three | 657 | 396 | |
Year Four | 286 | 301 | |
Year Five | 187 | 255 | |
Prior | 547 | 481 | |
Revolving Loans Amortized Cost Basis | 944 | 1,043 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 50 | 70 | |
Total | 3,627 | 4,109 | $ 4,895 |
Total loans | 3,644 | 4,126 | |
Consumer loans | Residential first mortgage loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,794 | 2,266 | |
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, Greater than 90 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 70 | 84 | |
Year Two | 82 | 260 | |
Year Three | 199 | 123 | |
Year Four | 79 | 35 | |
Year Five | 23 | 3 | |
Prior | 20 | 19 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 473 | 524 | |
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, 71-90 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 74 | 169 | |
Year Two | 110 | 180 | |
Year Three | 93 | 66 | |
Year Four | 40 | 99 | |
Year Five | 56 | 72 | |
Prior | 240 | 238 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 613 | 824 | |
Consumer loans | Residential first mortgage loans | Debt-to-Vale Ratio, 55-70 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 38 | 83 | |
Year Two | 41 | 60 | |
Year Three | 41 | 22 | |
Year Four | 14 | 82 | |
Year Five | 55 | 96 | |
Prior | 162 | 122 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 351 | 465 | |
Consumer loans | Residential first mortgage loans | Debt-to-Value Ratio, Less than 55 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 20 | 26 | |
Year Two | 23 | 48 | |
Year Three | 32 | 26 | |
Year Four | 23 | 76 | |
Year Five | 46 | 81 | |
Prior | 100 | 73 | |
Revolving Loans Amortized Cost Basis | 89 | 93 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 8 | 15 | |
Total | 341 | 438 | |
Consumer loans | Residential first mortgage loans | FICO Score, Greater than 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 90 | 195 | |
Year Two | 136 | 272 | |
Year Three | 161 | 118 | |
Year Four | 67 | 193 | |
Year Five | 113 | 181 | |
Prior | 289 | 231 | |
Revolving Loans Amortized Cost Basis | 55 | 55 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | 6 | |
Total | 912 | 1,251 | |
Consumer loans | Residential first mortgage loans | FICO Score, 700 to 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 64 | 119 | |
Year Two | 70 | 180 | |
Year Three | 118 | 90 | |
Year Four | 62 | 85 | |
Year Five | 56 | 64 | |
Prior | 149 | 130 | |
Revolving Loans Amortized Cost Basis | 24 | 25 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 4 | 7 | |
Total | 547 | 700 | |
Consumer loans | Residential first mortgage loans | FICO Score, Less than 700 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 48 | 48 | |
Year Two | 50 | 96 | |
Year Three | 86 | 29 | |
Year Four | 27 | 14 | |
Year Five | 11 | 7 | |
Prior | 84 | 91 | |
Revolving Loans Amortized Cost Basis | 10 | 13 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | 2 | |
Total | 319 | 300 | |
Consumer loans | Residential first mortgage loans | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 202 | 362 | |
Year Two | 256 | 544 | |
Year Three | 358 | 231 | |
Year Four | 150 | 289 | |
Year Five | 177 | 252 | |
Prior | 497 | 420 | |
Revolving Loans Amortized Cost Basis | 88 | 92 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 7 | 15 | |
Total | 1,735 | 2,205 | 3,107 |
Consumer loans | Residential first mortgage loans | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 1 | |
Year Three | 1 | 1 | |
Year Four | 0 | 1 | |
Year Five | 1 | 0 | |
Prior | 2 | 17 | |
Revolving Loans Amortized Cost Basis | 1 | 1 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 5 | 21 | 23 |
Consumer loans | Residential first mortgage loans | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 3 | |
Year Three | 6 | 5 | |
Year Four | 6 | 2 | |
Year Five | 2 | 0 | |
Prior | 23 | 15 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | 0 | |
Total | 38 | 25 | 15 |
Consumer loans | Home equity | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 717 | 856 | |
Consumer loans | Home equity | Debt-to-Value Ratio, Greater than 90 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 1 | |
Year Five | 1 | 1 | |
Prior | 9 | 10 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 10 | 12 | |
Consumer loans | Home equity | Debt-to-Value Ratio, 71-90 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 2 | 5 | |
Year Two | 3 | 24 | |
Year Three | 16 | 10 | |
Year Four | 6 | 4 | |
Year Five | 3 | 1 | |
Prior | 8 | 9 | |
Revolving Loans Amortized Cost Basis | 451 | 548 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 27 | 33 | |
Total | 516 | 634 | |
Consumer loans | Home equity | Debt-to-Value Ratio, Less than or Equal to 70 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 1 | 2 | |
Year Two | 2 | 7 | |
Year Three | 5 | 3 | |
Year Four | 2 | 1 | |
Year Five | 1 | 0 | |
Prior | 3 | 4 | |
Revolving Loans Amortized Cost Basis | 165 | 175 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 11 | 16 | |
Total | 190 | 208 | |
Consumer loans | Home equity | FICO Score, Greater than 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 3 | 2 | |
Year Two | 2 | 9 | |
Year Three | 6 | 6 | |
Year Four | 3 | 2 | |
Year Five | 2 | 1 | |
Prior | 5 | 7 | |
Revolving Loans Amortized Cost Basis | 286 | 324 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 6 | 13 | |
Total | 313 | 364 | |
Consumer loans | Home equity | FICO Score, 700 to 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 3 | |
Year Two | 2 | 12 | |
Year Three | 8 | 4 | |
Year Four | 3 | 3 | |
Year Five | 2 | 1 | |
Prior | 8 | 8 | |
Revolving Loans Amortized Cost Basis | 244 | 289 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 17 | 20 | |
Total | 284 | 340 | |
Consumer loans | Home equity | FICO Score, Less than 700 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 2 | |
Year Two | 1 | 10 | |
Year Three | 7 | 3 | |
Year Four | 2 | 1 | |
Year Five | 1 | 0 | |
Prior | 7 | 8 | |
Revolving Loans Amortized Cost Basis | 86 | 110 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 15 | 16 | |
Total | 119 | 150 | |
Consumer loans | Home equity | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 3 | 7 | |
Year Two | 5 | 31 | |
Year Three | 21 | 13 | |
Year Four | 8 | 6 | |
Year Five | 5 | 2 | |
Prior | 18 | 11 | |
Revolving Loans Amortized Cost Basis | 613 | 720 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 36 | 48 | |
Total | 709 | 838 | 1,002 |
Consumer loans | Home equity | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 11 | |
Revolving Loans Amortized Cost Basis | 1 | 2 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 1 | 13 | 16 |
Consumer loans | Home equity | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 2 | 1 | |
Revolving Loans Amortized Cost Basis | 2 | 1 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2 | 1 | |
Total | 6 | 3 | 3 |
Consumer loans | Other consumer | FICO Score, Greater than 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 156 | 209 | |
Year Two | 188 | 205 | |
Year Three | 170 | 80 | |
Year Four | 66 | 2 | |
Year Five | 1 | 1 | |
Prior | 3 | 5 | |
Revolving Loans Amortized Cost Basis | 227 | 213 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3 | 6 | |
Total | 814 | 721 | |
Consumer loans | Other consumer | FICO Score, 700 to 750 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 70 | 79 | |
Year Two | 71 | 107 | |
Year Three | 92 | 55 | |
Year Four | 47 | 1 | |
Year Five | 1 | 0 | |
Prior | 1 | 1 | |
Revolving Loans Amortized Cost Basis | 7 | 9 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 289 | 252 | |
Consumer loans | Other consumer | FICO Score, Less than 700 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 1 | 5 | |
Year Two | 4 | 10 | |
Year Three | 9 | 11 | |
Year Four | 9 | 0 | |
Year Five | 0 | 0 | |
Prior | 1 | 0 | |
Revolving Loans Amortized Cost Basis | 5 | 5 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | 0 | |
Total | 30 | 31 | |
Consumer loans | Other consumer | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 227 | 292 | |
Year Two | 262 | 321 | |
Year Three | 270 | 145 | |
Year Four | 121 | 3 | |
Year Five | 2 | 1 | |
Prior | 5 | 6 | |
Revolving Loans Amortized Cost Basis | 239 | 227 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 4 | 5 | |
Total | 1,130 | 1,000 | 727 |
Consumer loans | Other consumer | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 1 | |
Total | 0 | 1 | 1 |
Consumer loans | Other consumer | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 1 | |
Year Two | 1 | 1 | |
Year Three | 1 | 1 | |
Year Four | 1 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total | 3 | 3 | 1 |
Consumer loans | Residential first mortgage and home equity | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 205 | 369 | |
Year Two | 261 | 579 | |
Year Three | 386 | 250 | |
Year Four | 164 | 298 | |
Year Five | 185 | 254 | |
Prior | 542 | 475 | |
Revolving Loans Amortized Cost Basis | 705 | 816 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 46 | 64 | |
Total | 2,494 | 3,105 | |
Commercial loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 6,095 | 8,376 | |
Year Two | 388 | 1,508 | |
Year Three | 871 | 711 | |
Year Four | 514 | 701 | |
Year Five | 447 | 400 | |
Prior | 535 | 386 | |
Revolving Loans Amortized Cost Basis | 1,558 | 19 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 10,408 | 12,101 | 7,222 |
Commercial loans | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 3,169 | 3,061 | |
Commercial loans | Commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 182 | 347 | |
Year Two | 292 | 993 | |
Year Three | 644 | 439 | |
Year Four | 377 | 438 | |
Year Five | 250 | 308 | |
Prior | 454 | 280 | |
Revolving Loans Amortized Cost Basis | 749 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 2,948 | 2,805 | 2,794 |
Commercial loans | Commercial real estate | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 21 | |
Year Two | 4 | 19 | |
Year Three | 9 | 35 | |
Year Four | 27 | 51 | |
Year Five | 94 | 21 | |
Prior | 60 | 19 | |
Revolving Loans Amortized Cost Basis | 9 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 203 | 166 | 24 |
Commercial loans | Commercial real estate | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 5 | |
Year Two | 0 | 1 | |
Year Three | 1 | 16 | |
Year Four | 1 | 0 | |
Year Five | 0 | 17 | |
Prior | 6 | 14 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 8 | 53 | 5 |
Commercial loans | Commercial real estate | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 11 | |
Year Three | 2 | 1 | |
Year Four | 0 | 25 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 8 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 10 | 37 | 5 |
Commercial loans | Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,376 | 1,382 | |
Commercial loans | Commercial and industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 49 | 319 | |
Year Two | 90 | 425 | |
Year Three | 180 | 163 | |
Year Four | 85 | 149 | |
Year Five | 98 | 54 | |
Prior | 15 | 71 | |
Revolving Loans Amortized Cost Basis | 710 | 19 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 1,227 | 1,200 | 1,533 |
Commercial loans | Commercial and industrial | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 3 | |
Year Two | 1 | 48 | |
Year Three | 10 | 28 | |
Year Four | 5 | 25 | |
Year Five | 0 | 0 | |
Prior | 0 | 2 | |
Revolving Loans Amortized Cost Basis | 38 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 54 | 106 | 72 |
Commercial loans | Commercial and industrial | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 1 | |
Year Two | 1 | 0 | |
Year Three | 17 | 14 | |
Year Four | 9 | 9 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 18 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 45 | 24 | 24 |
Commercial loans | Commercial and industrial | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 1 | 22 | |
Year Two | 0 | 11 | |
Year Three | 8 | 15 | |
Year Four | 10 | 4 | |
Year Five | 5 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 26 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 50 | 52 | 5 |
Commercial loans | Warehouse loan commitments | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 5,718 | 7,398 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 5,718 | 7,398 | 2,556 |
Commercial loans | Warehouse loan commitments | Watch | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 145 | 260 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 145 | 260 | 189 |
Commercial loans | Warehouse loan commitments | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | 0 | 0 | 15 |
Commercial loans | Warehouse loan commitments | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 | |
Total loans | $ 0 | $ 0 | $ 0 |
Loans with Government Guarant_2
Loans with Government Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Debt instrument, term | 10 years | |
Repurchase option | $ 1,000 | $ 1,900 |
Decrease in repurchase option | (900) | |
Loans with government guarantees | 2,226 | 2,516 |
Repossessed assets and associated claims | $ 10 | $ 17 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - entity | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of Transfer of Securitizations or Asset-backed Financing Financial Assets Accounted for as Sale [Abstract] | ||
Number of VIEs | 0 | 0 |
Agency - Commercial | ||
Private-label Securitizations | ||
Ownership interest investment | 5.00% |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in the Fair Value of Residential First Mortgage MSRs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | $ 329 | |||
Fair value of MSRs at end of period | $ 342 | 342 | ||
Residential First Mortgage | ||||
Servicing Asset at Fair Value [Roll Forward] | ||||
Balance at beginning of period | 428 | $ 223 | 329 | $ 291 |
Additions from loans sold with servicing retained | 64 | 84 | 129 | 124 |
Reductions from sales | (96) | (10) | (96) | (46) |
Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other | (32) | (27) | (71) | (49) |
Changes in estimates of fair value due to interest rate risk | (22) | (9) | 51 | (59) |
Fair value of MSRs at end of period | $ 342 | $ 261 | $ 342 | $ 261 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Adverse Changes to Weighted-Average Assumptions on the Fair Value of Servicing Rights (Details) - Mortgage Servicing Rights - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Actual | ||
Option adjusted spread (as a percent) | 8.91% | 7.98% |
Constant prepayment rate (as a percent) | 9.37% | 10.53% |
Weighted average cost to service per loan (in dollars per share) | $ 80.58 | $ 81.24 |
Fair value impact due to 10% adverse change | ||
Option adjusted spread | $ 334 | $ 321 |
Constant prepayment rate | 327 | 305 |
Weighted average cost to service per loan | 339 | 325 |
Fair value impact due to 20% adverse change | ||
Option adjusted spread | 326 | 313 |
Constant prepayment rate | 312 | 283 |
Weighted average cost to service per loan | $ 335 | $ 321 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of Income and Fees (Details) - Residential first mortgage loans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Servicing Assets at Fair Value [Line Items] | ||||
Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other | $ (32) | $ (27) | $ (71) | $ (49) |
Changes in fair value due to interest rate risk | (22) | (9) | 51 | (59) |
Net return (loss) on mortgage servicing rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing fees, ancillary income and late fees | 29 | 24 | 60 | 45 |
Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other | (32) | (27) | (71) | (49) |
Changes in fair value due to interest rate risk | (22) | (9) | 51 | (59) |
Gain (loss) on MSR derivatives | 27 | 6 | (38) | 64 |
Net transaction costs | (7) | (2) | (7) | (3) |
Total return included in net return on mortgage servicing rights | (5) | (8) | (5) | (2) |
Loan administration income on mortgage loans subserviced | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing fees, ancillary income and late fees | 33 | 30 | 65 | 61 |
Charges on subserviced custodial balances | (2) | (7) | (5) | (23) |
Other servicing charges | (2) | (2) | (5) | (5) |
Total income on mortgage loans subserviced, included in loan administration | $ 29 | $ 21 | $ 55 | $ 33 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Unrealized gains (losses) on derivatives, net of tax | $ 9 | $ (5) | |||
Amount of losses, net of tax, to be reclassified | $ 3 | 3 | |||
Right to reclaim cash | 74 | 74 | 114 | ||
Right to reclaim cash, cash collateral | 45 | 45 | 84 | ||
Right to reclaim cash, maintenance margin | 29 | 29 | 30 | ||
Derivative asset, collateral, obligation to return cash | 5 | 5 | |||
Derivatives designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Right to reclaim cash | 11 | 11 | 14 | ||
Custodial deposits | |||||
Derivative [Line Items] | |||||
Amount of gain (loss) reclassified from AOCI into income | (1) | $ (1) | (2) | $ (1) | |
AFS securities | |||||
Derivative [Line Items] | |||||
Loss on fair value hedge | 1 | 2 | |||
Interest rate swaps on AFS securities | |||||
Derivative [Line Items] | |||||
Amount representing designated last of layer | 1,200 | 1,200 | 1,600 | ||
Amortized cost basis of hedge designated last of layer | 1,200 | 1,200 | 1,600 | ||
Interest rate swaps on AFS securities | Derivatives designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Cumulative amount of fair value hedging adjustment included in the carrying amount | 1 | 1 | 6 | ||
Amount representing designated last of layer | 450 | 450 | 450 | ||
Right to reclaim cash | 1 | 1 | 5 | ||
Interest rate swaps on AFS securities | Carrying Value | Derivatives designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Carrying amount of hedged securities | 1,300 | 1,300 | 1,700 | ||
Interest rate swaps on HFI residential first mortgages | Derivatives designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Carrying amount of hedged securities | 205 | 205 | 240 | ||
Cumulative amount of fair value hedging adjustment included in the carrying amount | 1 | ||||
Right to reclaim cash | $ 1 | $ 1 | 1 | ||
Interest rate swaps on HFI residential first mortgages | Derivatives designated as hedging instruments | Assets | |||||
Derivative [Line Items] | |||||
Notional amount | $ 100 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Notional Amount, Estimated Fair Value and Maturity of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives designated as hedging instruments | ||
Liabilities | ||
Fair value | $ 0 | $ 1,000 |
Assets | ||
Fair value | 0 | |
Derivatives designated as hedging instruments | Interest rate swaps on custodial deposits | ||
Liabilities | ||
Fair value | 0 | 1,000 |
Derivatives designated as hedging instruments | Interest rate swaps on AFS securities | ||
Liabilities | ||
Fair value | 0 | 0 |
Assets | ||
Fair value | 0 | |
Derivatives designated as hedging instruments | Interest rate swaps on HFI residential first mortgages | ||
Liabilities | ||
Fair value | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate swaps on HFI residential first mortgages | Assets | ||
Assets | ||
Notional amount | 100,000 | |
Derivatives designated as hedging instruments | Cash Flow Hedging | Interest rate swaps on custodial deposits | Liabilities | ||
Liabilities | ||
Notional amount | 800,000 | 800,000 |
Fair value | 1,000 | 1,000 |
Derivatives designated as hedging instruments | Fair Value Hedging | Liabilities | ||
Liabilities | ||
Notional amount | 450,000 | 1,350,000 |
Fair value | 0 | 1,000 |
Derivatives designated as hedging instruments | Fair Value Hedging | Assets | ||
Assets | ||
Notional amount | 900,000 | |
Fair value | 1,000 | |
Derivatives designated as hedging instruments | Fair Value Hedging | Interest rate swaps on AFS securities | Liabilities | ||
Liabilities | ||
Notional amount | 350,000 | 450,000 |
Fair value | 0 | 0 |
Derivatives designated as hedging instruments | Fair Value Hedging | Interest rate swaps on AFS securities | Assets | ||
Assets | ||
Notional amount | 100,000 | |
Fair value | 0 | |
Derivatives designated as hedging instruments | Fair Value Hedging | Interest rate swaps on HFI residential first mortgages | Liabilities | ||
Liabilities | ||
Notional amount | 100,000 | 100,000 |
Fair value | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Liabilities | ||
Fair value | 35,000 | 102,000 |
Assets | ||
Fair value | 83,000 | 73,000 |
Derivatives not designated as hedging instruments | Liabilities | ||
Liabilities | ||
Notional amount | 8,390,000 | 12,614,000 |
Fair value | 36,000 | 102,000 |
Derivatives not designated as hedging instruments | Assets | ||
Assets | ||
Notional amount | 16,200,000 | 14,163,000 |
Fair value | 198,000 | 281,000 |
Derivatives not designated as hedging instruments | Futures | Liabilities | ||
Liabilities | ||
Notional amount | 562,000 | |
Fair value | 0 | |
Derivatives not designated as hedging instruments | Futures | Assets | ||
Assets | ||
Notional amount | 1,346,000 | |
Fair value | 0 | |
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | ||
Liabilities | ||
Fair value | 31,000 | 98,000 |
Assets | ||
Fair value | 19,000 | 14,000 |
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | Liabilities | ||
Liabilities | ||
Notional amount | 6,249,000 | 11,194,000 |
Fair value | 31,000 | 98,000 |
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | Assets | ||
Assets | ||
Notional amount | 4,632,000 | 749,000 |
Fair value | 19,000 | 14,000 |
Derivatives not designated as hedging instruments | Rate lock commitments | Liabilities | ||
Liabilities | ||
Notional amount | 270,000 | 115,000 |
Fair value | 1,000 | 0 |
Derivatives not designated as hedging instruments | Rate lock commitments | Assets | ||
Assets | ||
Notional amount | 8,905,000 | 10,587,000 |
Fair value | 115,000 | 208,000 |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Liabilities | ||
Fair value | 4,000 | |
Assets | ||
Fair value | 64,000 | |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | Liabilities | ||
Liabilities | ||
Notional amount | 1,305,000 | |
Fair value | 4,000 | |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | Assets | ||
Assets | ||
Notional amount | 2,663,000 | 1,481,000 |
Fair value | 64,000 | 59,000 |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Liabilities | ||
Fair value | 4,000 | |
Assets | ||
Fair value | $ 59,000 | |
Derivatives not designated as hedging instruments | Interest rate swaps | Liabilities | ||
Liabilities | ||
Notional amount | 1,309,000 | |
Fair value | $ 4,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Derivatives Subject to a Master Netting Arrangement (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities | ||
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | $ 74 | $ 114 |
Derivatives designated as hedging instruments | ||
Assets | ||
Gross Amount | 0 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 1 | |
Liabilities | ||
Gross Amount | 0 | 1 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 0 | 1 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 11 | 14 |
Derivatives designated as hedging instruments | Interest rate swaps on AFS securities | ||
Assets | ||
Gross Amount | 0 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 1 | |
Liabilities | ||
Gross Amount | 0 | 0 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 1 | 5 |
Derivatives designated as hedging instruments | Interest rate swaps on custodial deposits | ||
Liabilities | ||
Gross Amount | 0 | 1 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 0 | 1 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 9 | 8 |
Derivatives designated as hedging instruments | Interest rate swaps on HFI residential first mortgages | ||
Liabilities | ||
Gross Amount | 0 | 0 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 1 | 1 |
Derivatives not designated as hedging instruments | ||
Assets | ||
Gross Amount | 83 | 73 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 83 | 73 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 11 | 6 |
Liabilities | ||
Gross Amount | 35 | 102 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 35 | 102 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 56 | 94 |
Derivatives not designated as hedging instruments | Mortgage-backed securities forwards | ||
Assets | ||
Gross Amount | 19 | 14 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 19 | 14 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 5 | 0 |
Liabilities | ||
Gross Amount | 31 | 98 |
Gross Amounts Netted in the Statements of Financial Condition | 0 | 0 |
Net Amount Presented in the Statements of Financial Condition | 31 | 98 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 26 | 68 |
Derivatives not designated as hedging instruments | Interest rate swaps and swaptions | ||
Assets | ||
Gross Amount | 64 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 64 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 6 | |
Liabilities | ||
Gross Amount | 4 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 4 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | 26 | |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Assets | ||
Gross Amount | 59 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 59 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | $ 6 | |
Liabilities | ||
Gross Amount | 4 | |
Gross Amounts Netted in the Statements of Financial Condition | 0 | |
Net Amount Presented in the Statements of Financial Condition | 4 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral | $ 30 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Net Gain (Loss) Recognized in Income on Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Derivative gain (loss) | $ (150) | $ 227 | $ (52) | $ 185 |
Futures | Net return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) | 0 | 1 | 0 | 1 |
Interest rate swaps and swaptions | Net return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) | 20 | 3 | (27) | 41 |
Mortgage-backed securities forwards | Net return on mortgage servicing rights | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) | 7 | 4 | (11) | 23 |
Rate lock commitments and MSR forwards | Net gain on loan sales | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) | (178) | 219 | (15) | 120 |
Interest rate swaps | Other noninterest income | ||||
Derivative [Line Items] | ||||
Derivative gain (loss) | $ 1 | $ 0 | $ 1 | $ 0 |
Borrowings - Breakdown of FHLB
Borrowings - Breakdown of FHLB Advances Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total short-term Federal Home Loan Bank advances and other borrowings | $ 2,095 | $ 3,900 |
Long-term Federal Home Loan Bank fixed rate advances | 1,200 | 1,200 |
Total | $ 3,295 | $ 5,100 |
Rate | 1.03% | 1.03% |
Current portion of fixed rate advances | $ 200 | $ 0 |
Short-term fixed rate term advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total short-term Federal Home Loan Bank advances and other borrowings | $ 1,130 | $ 3,415 |
Rate | 0.20% | 0.20% |
Short-term variable rate term advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total short-term Federal Home Loan Bank advances and other borrowings | $ 300 | $ 0 |
Rate | 0.10% | 0.00% |
Other short-term borrowings | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total short-term Federal Home Loan Bank advances and other borrowings | $ 665 | $ 485 |
Rate | 0.13% | 0.08% |
Borrowings - Detailed Informati
Borrowings - Detailed Information on FHLB Advances and Other Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Maximum outstanding at any month end | $ 3,575 | $ 5,660 | $ 4,737 | $ 6,841 |
Average outstanding balance | 3,622 | 4,821 | 3,800 | 4,590 |
Average remaining borrowing capacity | $ 5,295 | $ 5,272 | $ 5,389 | $ 5,124 |
Weighted average interest rate | 0.45% | 0.45% | 0.44% | 0.86% |
Borrowings - Maturity Dates of
Borrowings - Maturity Dates of FHLB Advances and Other Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 2,095 | |
2022 | 200 | |
2023 | 500 | |
2024 | 100 | |
Thereafter | 400 | |
Total | $ 3,295 | $ 5,100 |
Borrowings - Summary of Long-Te
Borrowings - Summary of Long-Term Debt, Net of Debt Issuance Costs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Senior notes | $ 0 | $ 246 |
Interest rate | 0.00% | 6.125% |
Trust preferred securities | $ 247 | $ 247 |
Other tong-term debt | 396 | 641 |
Subordinated notes maturing in 2030 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $ 149 | $ 148 |
Interest rate | 4.125% | 4.125% |
3.25%, matures 2032 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 26 | $ 26 |
Interest rate | 3.40% | 3.50% |
3.25%, matures 2032 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 3.25% | |
3.25%, matures 2033 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 26 | $ 26 |
Interest rate | 3.43% | 3.49% |
3.25%, matures 2033 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 3.25% | |
3.25%, matures 2033 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 26 | $ 26 |
Interest rate | 3.40% | 3.49% |
3.25%, matures 2033 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 3.25% | |
2.00%, matures 2035 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 26 | $ 26 |
Interest rate | 2.18% | 2.24% |
2.00%, matures 2035 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 2.00% | |
2.00%, matures 2035 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 26 | $ 26 |
Interest rate | 2.18% | 2.24% |
2.00%, matures 2035 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 2.00% | |
1.75%, matures 2035 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 51 | $ 51 |
Interest rate | 1.87% | 1.97% |
1.75%, matures 2035 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 1.75% | |
1.50%, matures 2035 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 25 | $ 25 |
Interest rate | 1.68% | 1.74% |
1.50%, matures 2035 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 1.50% | |
1.45%, matures 2037 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 25 | $ 25 |
Interest rate | 1.57% | 1.67% |
1.45%, matures 2037 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 1.45% | |
2.50%, matures 2037 | ||
Debt Instrument [Line Items] | ||
Trust preferred securities | $ 16 | $ 16 |
Interest rate | 2.62% | 2.72% |
2.50%, matures 2037 | Floating Three Month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate on interest rate | 2.50% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | 6 Months Ended | ||
Jun. 30, 2021USD ($)quarterstrustSubsidiary | Dec. 31, 2020 | Oct. 28, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | 6.125% | |
Number of trust subsidiaries | trustSubsidiary | 9 | ||
Number of quarters that interest payment can be deferred | quarters | 20 | ||
Payment of interest on trust preferred securities | $ 0 | ||
Subordinated notes maturing in 2030 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.125% | 4.125% | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | ||
Subordinated Debt | Subordinated notes maturing in 2030 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 150,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated other comprehensive income (loss) | ||||||
Beginning balance | $ 2,358 | $ 2,201 | $ 1,842 | $ 1,788 | $ 2,201 | $ 1,788 |
Other comprehensive income, net of tax | (9) | 7 | 15 | 30 | (2) | 45 |
Ending balance | 2,498 | 2,358 | 1,971 | 1,842 | 2,498 | 1,971 |
Investment Securities | ||||||
Accumulated other comprehensive income (loss) | ||||||
Beginning balance | 37 | 52 | 35 | 1 | 52 | 1 |
Unrealized gain (loss) | (2) | 27 | (22) | 72 | ||
Less: Tax provision (benefit) | 0 | 6 | (5) | 17 | ||
Net unrealized gain (loss) | (2) | 21 | (17) | 55 | ||
Other comprehensive income, net of tax | (2) | 21 | (17) | 55 | ||
Ending balance | 35 | 37 | 56 | 35 | 35 | 56 |
Cash Flow Hedges | ||||||
Accumulated other comprehensive income (loss) | ||||||
Beginning balance | 17 | (5) | (4) | 0 | (5) | 0 |
Unrealized gain (loss) | (9) | (10) | 17 | (15) | ||
Less: Tax provision (benefit) | (1) | (3) | 4 | (4) | ||
Net unrealized gain (loss) | (8) | (7) | 13 | (11) | ||
Reclassifications out of AOCI | 1 | 1 | 2 | 1 | ||
Less: Tax provision (benefit) | 0 | 0 | 0 | 0 | ||
Other comprehensive income, net of tax | (7) | (6) | 15 | (10) | ||
Ending balance | $ 10 | $ 17 | $ (10) | $ (4) | $ 10 | $ (10) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net income applicable to common stockholders | $ 147 | $ 149 | $ 116 | $ 46 | $ 296 | $ 161 |
Weighted Average Shares | ||||||
Weighted average common shares outstanding (in shares) | 52,763,868 | 56,790,642 | 52,719,959 | 56,723,254 | ||
Effect of dilutive securities | ||||||
Stock-based awards (in shares) | 772,801 | 333,064 | 697,937 | 433,561 | ||
Weighted average diluted common shares (in shares) | 53,536,669 | 57,123,706 | 53,417,896 | 57,156,815 | ||
Earnings per common share | ||||||
Basic earnings per common share (in dollars per share) | $ 2.78 | $ 2.04 | $ 5.61 | $ 2.85 | ||
Effect of dilutive securities | ||||||
Stock-based awards (in dollars per share) | (0.04) | (0.01) | (0.07) | (0.02) | ||
Diluted earnings per common share (in dollars per share) | $ 2.74 | $ 2.03 | $ 5.54 | $ 2.83 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 4 | $ 4 | $ 7 | $ 8 |
2017 ESPP | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during period (in shares) | 44,245 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Shares | ||
Non-vested balance at beginning of period (in shares) | 1,063,285 | 974,186 |
Granted (in shares) | 201,262 | 345,330 |
Vested (in shares) | (93,213) | (135,662) |
Canceled and forfeited (in shares) | (28,353) | (40,873) |
Non-vested balance at end of period (in shares) | 1,142,981 | 1,142,981 |
Weighted — Average Grant-Date Fair Value per Share | ||
Non-vested balance at beginning of period (in dollars per share) | $ 32 | $ 30.88 |
Granted (in dollars per share) | 44.66 | 42.80 |
Vested (in dollars per share) | 32.29 | 33.05 |
Canceled and forfeited (in dollars per share) | 30.97 | 30.85 |
Non-vested balance at end of period (in dollars per share) | $ 34.23 | $ 34.23 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 190 | $ 148 | $ 383 | $ 203 |
Provision for income taxes | $ 43 | $ 32 | $ 87 | $ 42 |
Effective tax provision rate | 22.50% | 21.50% | 22.70% | 20.60% |
Unrecognized tax benefits, recognition period | 12 months |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Tier One Leverage Capital | ||
Tier 1 capital actual amount | $ 2,562 | $ 2,270 |
Tier 1 capital (to adjusted tangible assets), actual ratio | 0.0921 | 0.0771 |
Tier 1 capital, for capital adequacy purposes amount | $ 1,113 | $ 1,178 |
Tier 1 capital (to adjusted tangible assets), for capital adequacy purposes ratio | 0.040 | 0.040 |
Tier 1 capital capitalized under prompt corrective action provision amount | $ 1,391 | $ 1,472 |
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital | ||
Common equity Tier 1 capital (to RWA), actual amount | $ 2,322 | $ 2,030 |
Common equity Tier 1 capital (to RWA), actual ratio | 11.38% | 9.15% |
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, amount | $ 918 | $ 999 |
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, amount | $ 1,326 | $ 1,442 |
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital, actual amount | $ 2,562 | $ 2,270 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1256 | 0.1023 |
Tier 1 capital, for capital adequacy purposes amount | $ 1,224 | $ 1,331 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 0.060 | 0.060 |
Tier 1 capital, capitalized under prompt corrective action provision amount | $ 1,632 | $ 1,775 |
Tier 1 capital (to risk-weighted assets), capitalized under prompt corrective action provision ratio | 0.080 | 0.080 |
Capital [Abstract] | ||
Total capital, actual amount | $ 2,882 | $ 2,638 |
Total capital (to risk-weighted assets), actual ratio | 0.1413 | 0.1189 |
Total capital, for capital adequacy purposes amount | $ 1,632 | $ 1,775 |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 0.080 | 0.080 |
Total capital, capitalized under prompt corrective action provisions amount | $ 2,040 | $ 2,219 |
Total capital (to risk-weighted assets), capitalized under prompt corrective action provisions ratio | 0.100 | 0.100 |
Bank | ||
Tier One Leverage Capital | ||
Tier 1 capital actual amount | $ 2,464 | $ 2,390 |
Tier 1 capital (to adjusted tangible assets), actual ratio | 0.0888 | 0.0812 |
Tier 1 capital, for capital adequacy purposes amount | $ 1,111 | $ 1,177 |
Tier 1 capital (to adjusted tangible assets), for capital adequacy purposes ratio | 0.040 | 0.040 |
Tier 1 capital capitalized under prompt corrective action provision amount | $ 1,388 | $ 1,472 |
Tier 1 capital (to adjusted tangible assets), capitalized under prompt corrective action provision ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital | ||
Common equity Tier 1 capital (to RWA), actual amount | $ 2,464 | $ 2,390 |
Common equity Tier 1 capital (to RWA), actual ratio | 12.08% | 10.77% |
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, amount | $ 918 | $ 999 |
Common equity Tier 1 capital (to RWA), for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, amount | $ 1,326 | $ 1,443 |
Common equity Tier 1 capital (to RWA), well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital, actual amount | $ 2,464 | $ 2,390 |
Tier 1 capital (to risk-weighted assets), actual ratio | 0.1208 | 0.1077 |
Tier 1 capital, for capital adequacy purposes amount | $ 1,224 | $ 1,332 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 0.060 | 0.060 |
Tier 1 capital, capitalized under prompt corrective action provision amount | $ 1,632 | $ 1,775 |
Tier 1 capital (to risk-weighted assets), capitalized under prompt corrective action provision ratio | 0.080 | 0.080 |
Capital [Abstract] | ||
Total capital, actual amount | $ 2,634 | $ 2,608 |
Total capital (to risk-weighted assets), actual ratio | 0.1292 | 0.1175 |
Total capital, for capital adequacy purposes amount | $ 1,632 | $ 1,775 |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 0.080 | 0.080 |
Total capital, capitalized under prompt corrective action provisions amount | $ 2,039 | $ 2,219 |
Total capital (to risk-weighted assets), capitalized under prompt corrective action provisions ratio | 0.100 | 0.100 |
Legal Proceedings, Contingenc_3
Legal Proceedings, Contingencies and Commitments - Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2021 | Feb. 24, 2012 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2018 |
Loss Contingencies | ||||||
Accrued reserve for contingent liabilities | $ 8 | $ 7 | ||||
Letter of credit reserve | 18 | $ 28 | ||||
CEO | Maximum | ||||||
Loss Contingencies | ||||||
Payments in exchange of SERP | 6 | |||||
SERP | CEO | ||||||
Loss Contingencies | ||||||
SERP Liability | $ 16 | |||||
DOJ Agreement | ||||||
Loss Contingencies | ||||||
Litigation settlement payment amount | $ 70 | $ 118 | ||||
Fair value adjustment on settlement liability | $ 35 | |||||
Accrued reserve for contingent liabilities | $ 0 | |||||
DOJ Agreement | Subsequent Payments | ||||||
Loss Contingencies | ||||||
Litigation expense (up to) | $ 25 |
Legal Proceedings, Contingenc_4
Legal Proceedings, Contingencies and Commitments - Summary of the Contractual Amount of Significant Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Mortgage loan commitments including interest rate locks | ||
Loss Contingencies | ||
Commitments to extend credit | $ 9,175 | $ 10,702 |
Warehouse loan commitments | ||
Loss Contingencies | ||
Commitments to extend credit | 4,869 | 2,849 |
Commercial and industrial commitments | ||
Loss Contingencies | ||
Commitments to extend credit | 1,537 | 1,271 |
Other construction commitments | ||
Loss Contingencies | ||
Commitments to extend credit | 2,176 | 1,934 |
HELOC commitments | ||
Loss Contingencies | ||
Commitments to extend credit | 596 | 544 |
Other consumer commitments | ||
Loss Contingencies | ||
Commitments to extend credit | 166 | 121 |
Standby and commercial letters of credit | ||
Loss Contingencies | ||
Commitments to extend credit | $ 102 | $ 95 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment securities available-for-sale | $ 1,823 | $ 1,944 |
Loans held-for-sale | 5,834 | 7,009 |
Loans held-for-investment | 21 | 13 |
Mortgage servicing rights | 342 | 329 |
Total assets at fair value | 5,855 | 7,021 |
Agency - Commercial | ||
Assets | ||
Investment securities available-for-sale | 802 | 1,061 |
Agency - Residential | ||
Assets | ||
Investment securities available-for-sale | 833 | 735 |
Municipal obligations | ||
Assets | ||
Investment securities available-for-sale | 24 | 28 |
Corporate debt obligations | ||
Assets | ||
Investment securities available-for-sale | 74 | 77 |
Certificate of deposit | ||
Assets | ||
Investment securities available-for-sale | 1 | 1 |
Estimate of Fair Value Measurement | ||
Assets | ||
Investment securities available-for-sale | 1,823 | 1,944 |
Loans held-for-sale | 6,138 | 7,098 |
Loans held-for-investment | 13,985 | 16,188 |
Mortgage servicing rights | 342 | 329 |
Level 1 | Estimate of Fair Value Measurement | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Level 2 | Estimate of Fair Value Measurement | ||
Assets | ||
Investment securities available-for-sale | 1,823 | 1,944 |
Loans held-for-sale | 6,138 | 7,098 |
Loans held-for-investment | 19 | 11 |
Mortgage servicing rights | 0 | 0 |
Level 3 | Estimate of Fair Value Measurement | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 13,966 | 16,177 |
Mortgage servicing rights | 342 | 329 |
Recurring | Estimate of Fair Value Measurement | ||
Assets | ||
Mortgage servicing rights | 342 | 329 |
Total assets at fair value | 8,218 | 9,576 |
Liabilities | ||
DOJ Liability | (35) | |
Total liabilities at fair value | (38) | (137) |
Recurring | Estimate of Fair Value Measurement | Rate lock commitments | ||
Assets | ||
Derivative assets | 115 | 208 |
Liabilities | ||
Derivative liabilities | (1) | |
Recurring | Estimate of Fair Value Measurement | Mortgage-backed securities forwards | ||
Assets | ||
Derivative assets | 19 | 14 |
Liabilities | ||
Derivative liabilities | (31) | (98) |
Recurring | Estimate of Fair Value Measurement | Interest rate swaps and swaptions | ||
Assets | ||
Derivative assets | 64 | 59 |
Recurring | Estimate of Fair Value Measurement | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | (6) | (4) |
Recurring | Estimate of Fair Value Measurement | Residential first mortgage loans | ||
Assets | ||
Loans held-for-sale | 5,834 | 7,009 |
Loans held-for-investment | 19 | 11 |
Recurring | Estimate of Fair Value Measurement | Home equity | ||
Assets | ||
Loans held-for-investment | 2 | 2 |
Recurring | Estimate of Fair Value Measurement | Agency - Commercial | ||
Assets | ||
Investment securities available-for-sale | 802 | 1,061 |
Recurring | Estimate of Fair Value Measurement | Agency - Residential | ||
Assets | ||
Investment securities available-for-sale | 833 | 735 |
Recurring | Estimate of Fair Value Measurement | Municipal obligations | ||
Assets | ||
Investment securities available-for-sale | 24 | 28 |
Recurring | Estimate of Fair Value Measurement | Corporate debt obligations | ||
Assets | ||
Investment securities available-for-sale | 74 | 77 |
Recurring | Estimate of Fair Value Measurement | Other MBS | ||
Assets | ||
Investment securities available-for-sale | 89 | 42 |
Recurring | Estimate of Fair Value Measurement | Certificate of deposit | ||
Assets | ||
Investment securities available-for-sale | 1 | 1 |
Recurring | Level 1 | ||
Assets | ||
Mortgage servicing rights | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
DOJ Liability | 0 | |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 1 | Rate lock commitments | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | |
Recurring | Level 1 | Mortgage-backed securities forwards | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate swaps and swaptions | ||
Assets | ||
Derivative assets | 0 | 0 |
Recurring | Level 1 | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Residential first mortgage loans | ||
Assets | ||
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Recurring | Level 1 | Home equity | ||
Assets | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 1 | Agency - Commercial | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Agency - Residential | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Municipal obligations | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Corporate debt obligations | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Other MBS | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 1 | Certificate of deposit | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Mortgage servicing rights | 0 | 0 |
Total assets at fair value | 7,759 | 9,037 |
Liabilities | ||
DOJ Liability | 0 | |
Total liabilities at fair value | (37) | (102) |
Recurring | Level 2 | Rate lock commitments | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | |
Recurring | Level 2 | Mortgage-backed securities forwards | ||
Assets | ||
Derivative assets | 19 | 14 |
Liabilities | ||
Derivative liabilities | (31) | (98) |
Recurring | Level 2 | Interest rate swaps and swaptions | ||
Assets | ||
Derivative assets | 64 | 59 |
Recurring | Level 2 | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | (6) | (4) |
Recurring | Level 2 | Residential first mortgage loans | ||
Assets | ||
Loans held-for-sale | 5,834 | 7,009 |
Loans held-for-investment | 19 | 11 |
Recurring | Level 2 | Home equity | ||
Assets | ||
Loans held-for-investment | 0 | 0 |
Recurring | Level 2 | Agency - Commercial | ||
Assets | ||
Investment securities available-for-sale | 802 | 1,061 |
Recurring | Level 2 | Agency - Residential | ||
Assets | ||
Investment securities available-for-sale | 833 | 735 |
Recurring | Level 2 | Municipal obligations | ||
Assets | ||
Investment securities available-for-sale | 24 | 28 |
Recurring | Level 2 | Corporate debt obligations | ||
Assets | ||
Investment securities available-for-sale | 74 | 77 |
Recurring | Level 2 | Other MBS | ||
Assets | ||
Investment securities available-for-sale | 89 | 42 |
Recurring | Level 2 | Certificate of deposit | ||
Assets | ||
Investment securities available-for-sale | 1 | 1 |
Recurring | Level 3 | ||
Assets | ||
Mortgage servicing rights | 342 | 329 |
Total assets at fair value | 459 | 539 |
Liabilities | ||
DOJ Liability | (35) | |
Total liabilities at fair value | (1) | (35) |
Recurring | Level 3 | Rate lock commitments | ||
Assets | ||
Derivative assets | 115 | 208 |
Liabilities | ||
Derivative liabilities | (1) | |
Recurring | Level 3 | Mortgage-backed securities forwards | ||
Assets | ||
Derivative assets | 0 | 0 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Interest rate swaps and swaptions | ||
Assets | ||
Derivative assets | 0 | 0 |
Recurring | Level 3 | Interest rate swaps | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Residential first mortgage loans | ||
Assets | ||
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Recurring | Level 3 | Home equity | ||
Assets | ||
Loans held-for-investment | 2 | 2 |
Recurring | Level 3 | Agency - Commercial | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Agency - Residential | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Municipal obligations | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Corporate debt obligations | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Other MBS | ||
Assets | ||
Investment securities available-for-sale | 0 | 0 |
Recurring | Level 3 | Certificate of deposit | ||
Assets | ||
Investment securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Roll
Fair Value Measurements - Roll Forward of Financial Instruments Classified as Level 3 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Liabilities | ||||
Unrealized gains (losses) recorded in OCI | $ 0 | $ 0 | $ 0 | $ 0 |
Recurring | Level 3 | ||||
Assets | ||||
Balance at Beginning of Period | 504,000,000 | 394,000,000 | 539,000,000 | 327,000,000 |
Total Gains (Losses) Recorded in Earnings | (7,000,000) | 43,000,000 | (142,000,000) | 76,000,000 |
Purchases / Closings | 243,000,000 | 393,000,000 | 513,000,000 | 596,000,000 |
Sales | (96,000,000) | (10,000,000) | (96,000,000) | (46,000,000) |
Settlement | 0 | 0 | 0 | 0 |
Transfers Out | (186,000,000) | (352,000,000) | (356,000,000) | (485,000,000) |
Balance at End of Period | 458,000,000 | 468,000,000 | 458,000,000 | 468,000,000 |
Liabilities | ||||
Balance at Beginning of Period | (70,000,000) | (51,000,000) | (35,000,000) | (45,000,000) |
Total Gains (Losses) Recorded in Earnings | 0 | (11,000,000) | (35,000,000) | (17,000,000) |
Purchases / Closings | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlement | 70,000,000 | 0 | 70,000,000 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Balance at End of Period | 0 | (62,000,000) | 0 | (62,000,000) |
Recurring | Level 3 | Home equity | ||||
Assets | ||||
Balance at Beginning of Period | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 |
Total Gains (Losses) Recorded in Earnings | 0 | 0 | 0 | 0 |
Purchases / Closings | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Balance at End of Period | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 |
Recurring | Level 3 | Mortgage servicing rights | ||||
Assets | ||||
Balance at Beginning of Period | 428,000,000 | 223,000,000 | 329,000,000 | 291,000,000 |
Total Gains (Losses) Recorded in Earnings | (54,000,000) | (36,000,000) | (20,000,000) | (108,000,000) |
Purchases / Closings | 64,000,000 | 84,000,000 | 129,000,000 | 124,000,000 |
Sales | (96,000,000) | (10,000,000) | (96,000,000) | (46,000,000) |
Settlement | 0 | 0 | 0 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Balance at End of Period | 342,000,000 | 261,000,000 | 342,000,000 | 261,000,000 |
Recurring | Level 3 | Rate lock commitments | ||||
Assets | ||||
Balance at Beginning of Period | 74,000,000 | 169,000,000 | 208,000,000 | 34,000,000 |
Total Gains (Losses) Recorded in Earnings | 47,000,000 | 79,000,000 | (122,000,000) | 184,000,000 |
Purchases / Closings | 179,000,000 | 309,000,000 | 384,000,000 | 472,000,000 |
Sales | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Transfers Out | (186,000,000) | (352,000,000) | (356,000,000) | (485,000,000) |
Balance at End of Period | 114,000,000 | 205,000,000 | 114,000,000 | 205,000,000 |
Recurring | Level 3 | DOJ Liability | ||||
Liabilities | ||||
Balance at Beginning of Period | (70,000,000) | (35,000,000) | (35,000,000) | (35,000,000) |
Total Gains (Losses) Recorded in Earnings | 0 | 0 | (35,000,000) | 0 |
Purchases / Closings | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlement | 70,000,000 | 0 | 70,000,000 | 0 |
Transfers Out | 0 | 0 | 0 | 0 |
Balance at End of Period | $ 0 | (35,000,000) | $ 0 | (35,000,000) |
Recurring | Level 3 | Contingent consideration | ||||
Liabilities | ||||
Balance at Beginning of Period | (16,000,000) | (10,000,000) | ||
Total Gains (Losses) Recorded in Earnings | (11,000,000) | (17,000,000) | ||
Purchases / Closings | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlement | 0 | 0 | ||
Transfers Out | 0 | 0 | ||
Balance at End of Period | $ (27,000,000) | $ (27,000,000) |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Recurring Level 3 Fair Value Instruments (Details) - Level 3 - Fair Value $ in Millions | Jun. 30, 2021USD ($)orginationPull-throughRatePerLoandiscountRatePerLoanoptionAdjustedSpreadPerLoanconstantPrepaymentRatePerLoanconstant_default_rate_per_loan$ / loan | Dec. 31, 2020USD ($)discountRatePerLoanorginationPull-throughRatePerLoanconstantPrepaymentRatePerLoan$ / loanconstant_default_rate_per_loanoptionAdjustedSpreadPerLoan |
Home equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held-for-investment | $ | $ 2 | $ 2 |
Home equity | Discount rate | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | discountRatePerLoan | 0.072 | 0.072 |
Home equity | Discount rate | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | discountRatePerLoan | 0.108 | 0.108 |
Home equity | Discount rate | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | discountRatePerLoan | 0.090 | 0.090 |
Home equity | Constant prepayment rate | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | 0.126 | 0.126 |
Home equity | Constant prepayment rate | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | 0.189 | 0.189 |
Home equity | Constant prepayment rate | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | 0.158 | 0.158 |
Home equity | Constant default rate | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan | 0.015 | 0.015 |
Home equity | Constant default rate | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan | 0.023 | 0.023 |
Home equity | Constant default rate | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, fair value input (in percentage) | constant_default_rate_per_loan | 0.019 | 0.019 |
Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset | $ | $ 342 | $ 329 |
Mortgage servicing rights | Constant prepayment rate | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0 | 0 |
Mortgage servicing rights | Constant prepayment rate | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.115 | 0.133 |
Mortgage servicing rights | Constant prepayment rate | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | 0.094 | 0.105 |
Mortgage servicing rights | Option adjusted spread | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | optionAdjustedSpreadPerLoan | 0.038 | 0.034 |
Mortgage servicing rights | Option adjusted spread | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | optionAdjustedSpreadPerLoan | 0.216 | 0.212 |
Mortgage servicing rights | Option adjusted spread | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | optionAdjustedSpreadPerLoan | 0.089 | 0.080 |
Mortgage servicing rights | Weighted average cost to service per loan | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | $ / loan | 67 | 67 |
Mortgage servicing rights | Weighted average cost to service per loan | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | $ / loan | 95 | 95 |
Mortgage servicing rights | Weighted average cost to service per loan | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing asset, measurement input | $ / loan | 81 | 81 |
Rate lock commitments (net) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ | $ 114 | $ 208 |
Rate lock commitments (net) | Closing pull-through rate | Lower range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan | 0.721 | 0.757 |
Rate lock commitments (net) | Closing pull-through rate | Upper range | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan | 0.872 | 0.872 |
Rate lock commitments (net) | Closing pull-through rate | Weighted average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, measurement input (in percentage) | orginationPull-throughRatePerLoan | 0.739 | 0.775 |
DOJ Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Litigation settlement at fair value | $ | $ (35) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Settlement liability | $ 8 | $ 8 | $ 7 |
DOJ Agreement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Settlement of DOJ liability | 70 | ||
Settlement liability | $ 0 | $ 0 | |
Residential mortgage servicing rights capitalized | Measurement input, expected term | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average life | 5 years 4 months 24 days | 4 years 2 months 12 days |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | $ 5,834 | $ 5,834 | $ 7,009 | ||
Total assets at fair value | 5,855 | 5,855 | 7,021 | ||
Net gains (losses) on loan sales | 168 | $ 303 | 395 | $ 393 | |
Loans held-for-sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets at fair value | 5,834 | 5,834 | 7,009 | ||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets at fair value | 331 | 331 | 119 | ||
Net gains (losses) on loan sales | (15) | (7) | |||
Nonrecurring | Loans held-for-sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 275 | 275 | |||
Fair value gains (losses) on loans | (1) | ||||
Nonrecurring | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Residential first mortgage loans | 30 | ||||
Fair value gains (losses) on loans | (1) | ||||
Nonrecurring | Commercial loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Commercial loans | 24 | 24 | 57 | ||
Fair value gains (losses) on loans | 0 | 0 | |||
Nonrecurring | Impaired first mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 26 | 26 | 24 | ||
Fair value gains (losses) on loans | (12) | (3) | |||
Nonrecurring | Repossessed assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 6 | 6 | 8 | ||
Fair value gains (losses) on repossessed assets | (2) | (3) | |||
Nonrecurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets at fair value | 275 | 275 | 30 | ||
Nonrecurring | Level 2 | Loans held-for-sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 275 | 275 | |||
Nonrecurring | Level 2 | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Residential first mortgage loans | 30 | ||||
Nonrecurring | Level 2 | Commercial loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Commercial loans | 0 | 0 | 0 | ||
Nonrecurring | Level 2 | Impaired first mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 0 | 0 | 0 | ||
Nonrecurring | Level 2 | Repossessed assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | 0 | 0 | 0 | ||
Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets at fair value | 56 | 56 | 89 | ||
Nonrecurring | Level 3 | Loans held-for-sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans held-for-sale | 0 | 0 | |||
Nonrecurring | Level 3 | Residential first mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Residential first mortgage loans | 0 | ||||
Nonrecurring | Level 3 | Commercial loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Commercial loans | 24 | 24 | 57 | ||
Nonrecurring | Level 3 | Impaired first mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans held-for-investment | 26 | 26 | 24 | ||
Nonrecurring | Level 3 | Repossessed assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Repossessed assets | $ 6 | $ 6 | $ 8 |
Fair Value Measurements - Qua_2
Fair Value Measurements - Quantitative Information about Nonrecurring Level 3 Fair Value Financial Instruments and the Fair Value Measurements (Details) - Nonrecurring $ in Millions | Jun. 30, 2021USD ($)loss_severity_discount_per_loan | Dec. 31, 2020USD ($)loss_severity_discount_per_loan |
Commercial loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Commercial loans | $ | $ 24 | $ 57 |
Level 3 | Commercial loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Commercial loans | $ | 24 | 57 |
Level 3 | Residential first mortgage loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Loans held-for-investment | $ | $ 26 | $ 24 |
Level 3 | Residential first mortgage loans | Lower range | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Loans held for investment, fair value input (in percentage) | 0 | 0 |
Level 3 | Residential first mortgage loans | Upper range | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Loans held for investment, fair value input (in percentage) | 1 | 1 |
Level 3 | Residential first mortgage loans | Weighted average | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Loans held for investment, fair value input (in percentage) | 0.315 | 0.128 |
Level 3 | Repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Loans held-for-investment | $ | $ 6 | $ 8 |
Level 3 | Repossessed assets | Lower range | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Repossessed assets, fair value input (in percentage) | 0 | 0 |
Level 3 | Repossessed assets | Upper range | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Repossessed assets, fair value input (in percentage) | 0.963 | 0.963 |
Level 3 | Repossessed assets | Weighted average | Loss severity discount | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Repossessed assets, fair value input (in percentage) | 0.198 | 0.245 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investment securities available-for-sale | $ 1,823 | $ 1,944 |
Investment securities held-to-maturity | 280 | 393 |
Loans held-for-sale | 5,834 | 7,009 |
Loans held-for-investment | 21 | 13 |
Mortgage servicing rights | 342 | 329 |
Carrying Value | ||
Assets | ||
Cash and cash equivalents | 345 | 623 |
Investment securities available-for-sale | 1,823 | 1,944 |
Investment securities held-to-maturity | 270 | 377 |
Loans held-for-sale | 6,138 | 7,098 |
Loans held-for-investment | 14,052 | 16,227 |
Loans with government guarantees | 2,226 | 2,516 |
Mortgage servicing rights | 342 | 329 |
Federal Home Loan Bank stock | 377 | 377 |
Bank owned life insurance | 361 | 356 |
Repossessed assets | 6 | 8 |
Other assets, foreclosure claims | 10 | 17 |
Derivative financial instruments, assets | 198 | 281 |
Liabilities | ||
Federal Home Loan Bank advances and other | (3,295) | (5,100) |
Long-term debt | (396) | (641) |
DOJ Liability | 0 | (35) |
Derivative financial instruments, liabilities | (38) | (102) |
Carrying Value | Demand deposits and savings accounts | ||
Liabilities | ||
Deposits | (8,781) | (8,616) |
Carrying Value | Certificates of deposit | ||
Liabilities | ||
Deposits | (1,075) | (1,355) |
Carrying Value | Wholesale deposits | ||
Liabilities | ||
Deposits | (1,163) | (1,031) |
Carrying Value | Government deposits | ||
Liabilities | ||
Deposits | (1,981) | (1,765) |
Carrying Value | Company controlled deposits | ||
Liabilities | ||
Deposits | (5,661) | |
Carrying Value | Custodial deposits | ||
Liabilities | ||
Deposits | (7,206) | |
Estimated Fair Value | ||
Assets | ||
Cash and cash equivalents | 345 | 623 |
Investment securities available-for-sale | 1,823 | 1,944 |
Investment securities held-to-maturity | 280 | 393 |
Loans held-for-sale | 6,138 | 7,098 |
Loans held-for-investment | 13,985 | 16,188 |
Loans with government guarantees | 2,191 | 2,498 |
Mortgage servicing rights | 342 | 329 |
Federal Home Loan Bank stock | 377 | 377 |
Bank owned life insurance | 361 | 358 |
Repossessed assets | 6 | 8 |
Other assets, foreclosure claims | 10 | 17 |
Derivative financial instruments, assets | 198 | 281 |
Liabilities | ||
Federal Home Loan Bank advances and other | (3,313) | (5,124) |
Long-term debt | (342) | (596) |
DOJ Liability | 0 | (35) |
Derivative financial instruments, liabilities | (38) | (102) |
Estimated Fair Value | Demand deposits and savings accounts | ||
Liabilities | ||
Deposits | (8,059) | (7,864) |
Estimated Fair Value | Certificates of deposit | ||
Liabilities | ||
Deposits | (1,078) | (1,365) |
Estimated Fair Value | Wholesale deposits | ||
Liabilities | ||
Deposits | (1,171) | (1,047) |
Estimated Fair Value | Government deposits | ||
Liabilities | ||
Deposits | (1,899) | (1,706) |
Estimated Fair Value | Company controlled deposits | ||
Liabilities | ||
Deposits | (5,643) | |
Estimated Fair Value | Custodial deposits | ||
Liabilities | ||
Deposits | (7,133) | |
Estimated Fair Value | Level 1 | ||
Assets | ||
Cash and cash equivalents | 345 | 623 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 0 | 0 |
Loans with government guarantees | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Repossessed assets | 0 | 0 |
Other assets, foreclosure claims | 0 | 0 |
Derivative financial instruments, assets | 0 | 0 |
Liabilities | ||
Federal Home Loan Bank advances and other | 0 | 0 |
Long-term debt | 0 | 0 |
DOJ Liability | 0 | 0 |
Derivative financial instruments, liabilities | 0 | 0 |
Estimated Fair Value | Level 1 | Demand deposits and savings accounts | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Certificates of deposit | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Wholesale deposits | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Government deposits | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 1 | Company controlled deposits | ||
Liabilities | ||
Deposits | 0 | |
Estimated Fair Value | Level 1 | Custodial deposits | ||
Liabilities | ||
Deposits | 0 | |
Estimated Fair Value | Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 1,823 | 1,944 |
Investment securities held-to-maturity | 280 | 393 |
Loans held-for-sale | 6,138 | 7,098 |
Loans held-for-investment | 19 | 11 |
Loans with government guarantees | 2,191 | 2,498 |
Mortgage servicing rights | 0 | 0 |
Federal Home Loan Bank stock | 377 | 377 |
Bank owned life insurance | 361 | 358 |
Repossessed assets | 0 | 0 |
Other assets, foreclosure claims | 10 | 17 |
Derivative financial instruments, assets | 83 | 73 |
Liabilities | ||
Federal Home Loan Bank advances and other | (3,313) | (5,124) |
Long-term debt | (342) | (596) |
DOJ Liability | 0 | 0 |
Derivative financial instruments, liabilities | (37) | (102) |
Estimated Fair Value | Level 2 | Demand deposits and savings accounts | ||
Liabilities | ||
Deposits | (8,059) | (7,864) |
Estimated Fair Value | Level 2 | Certificates of deposit | ||
Liabilities | ||
Deposits | (1,078) | (1,365) |
Estimated Fair Value | Level 2 | Wholesale deposits | ||
Liabilities | ||
Deposits | (1,171) | (1,047) |
Estimated Fair Value | Level 2 | Government deposits | ||
Liabilities | ||
Deposits | (1,899) | (1,706) |
Estimated Fair Value | Level 2 | Company controlled deposits | ||
Liabilities | ||
Deposits | (5,643) | |
Estimated Fair Value | Level 2 | Custodial deposits | ||
Liabilities | ||
Deposits | (7,133) | |
Estimated Fair Value | Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment | 13,966 | 16,177 |
Loans with government guarantees | 0 | 0 |
Mortgage servicing rights | 342 | 329 |
Federal Home Loan Bank stock | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Repossessed assets | 6 | 8 |
Other assets, foreclosure claims | 0 | 0 |
Derivative financial instruments, assets | 115 | 208 |
Liabilities | ||
Federal Home Loan Bank advances and other | 0 | 0 |
Long-term debt | 0 | 0 |
DOJ Liability | 0 | (35) |
Derivative financial instruments, liabilities | (1) | 0 |
Estimated Fair Value | Level 3 | Demand deposits and savings accounts | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Certificates of deposit | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Wholesale deposits | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Government deposits | ||
Liabilities | ||
Deposits | 0 | 0 |
Estimated Fair Value | Level 3 | Company controlled deposits | ||
Liabilities | ||
Deposits | $ 0 | |
Estimated Fair Value | Level 3 | Custodial deposits | ||
Liabilities | ||
Deposits | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other noninterest income | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value included in earnings | $ 0 | $ 0 | $ 35 | $ 0 |
Loans held-for-sale | Net gain on loan sales | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Change in fair value included in earnings | $ 214 | $ 325 | $ 127 | $ 559 |
Fair Value Measurements - Diffe
Fair Value Measurements - Differences Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | $ 5,689 | $ 6,727 |
Total assets at fair value | 5,855 | 7,021 |
Assets, fair value over/(under) UPB | 166 | 294 |
Nonaccrual loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 19 | 18 |
Total assets at fair value | 18 | 15 |
Assets, fair value over/(under) UPB | (1) | (3) |
Other performing loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 5,670 | 6,709 |
Total assets at fair value | 5,837 | 7,006 |
Assets, fair value over/(under) UPB | 167 | 297 |
Loans held-for-sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 5,667 | 6,713 |
Total assets at fair value | 5,834 | 7,009 |
Assets, fair value over/(under) UPB | 167 | 296 |
Loans held-for-sale | Nonaccrual loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 9 | 9 |
Total assets at fair value | 8 | 7 |
Assets, fair value over/(under) UPB | (1) | (2) |
Loans held-for-sale | Other performing loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 5,658 | 6,704 |
Total assets at fair value | 5,826 | 7,002 |
Assets, fair value over/(under) UPB | 168 | 298 |
Loans held-for-investment | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 22 | 14 |
Total assets at fair value | 21 | 12 |
Assets, fair value over/(under) UPB | (1) | (2) |
Loans held-for-investment | Nonaccrual loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 10 | 9 |
Total assets at fair value | 10 | 8 |
Assets, fair value over/(under) UPB | 0 | (1) |
Loans held-for-investment | Other performing loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Assets, unpaid principal balance (UPB) | 12 | 5 |
Total assets at fair value | 11 | 4 |
Assets, fair value over/(under) UPB | (1) | (1) |
DOJ Liability | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Liabilities, unpaid principal balance (UPB) | 0 | (118) |
Long-term debt, fair value | 0 | (35) |
Liabilities, fair value over/(under) UPB | $ 0 | $ 83 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)segments | Jun. 30, 2020USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of operating segments | segments | 3 | |||||
Summary of Operations | ||||||
Net interest income | $ 183 | $ 168 | $ 371 | $ 316 | ||
Provision (benefit) for credit losses | (44) | 102 | (72) | 116 | ||
Net interest income after provision for credit losses | 227 | 66 | 443 | 200 | ||
Net gain on loan sales | 168 | 303 | 395 | 393 | ||
Loan fees and charges | 37 | 38 | 79 | 61 | ||
Net return on mortgage servicing rights | (5) | (8) | (5) | (2) | ||
Loan administrative (expense) income | 28 | 21 | 54 | 33 | ||
Other noninterest income | 24 | 21 | 53 | 44 | ||
Total noninterest income | 252 | 375 | 576 | 529 | ||
Compensation and benefits | 122 | 116 | 266 | 218 | ||
Commissions | 51 | 61 | 112 | 90 | ||
Loan processing expense | 22 | 22 | 43 | 39 | ||
Other noninterest expense | 94 | 94 | 215 | 179 | ||
Total noninterest expense | 289 | 293 | 636 | 526 | ||
Income (loss) before indirect overhead allocations and income taxes | 190 | 148 | 383 | 203 | ||
Indirect overhead allocation (expense) income | 0 | 0 | 0 | 0 | ||
Provision (benefit) for income taxes | 43 | 32 | 87 | 42 | ||
Net income | 147 | $ 149 | 116 | $ 46 | 296 | 161 |
Average balances | ||||||
Loans held-for-sale | 6,902 | 5,645 | 7,181 | 5,447 | ||
Loans with government guarantees | 2,344 | 858 | 2,422 | 834 | ||
Loans held-for-investment | 13,689 | 13,596 | 14,299 | 12,709 | ||
Total assets | 28,011 | 26,261 | 29,032 | 24,837 | ||
Deposits | 19,070 | 17,715 | 19,554 | 16,755 | ||
Other | ||||||
Summary of Operations | ||||||
Net interest income | (27) | (25) | (55) | (27) | ||
Provision (benefit) for credit losses | (43) | 107 | (55) | 116 | ||
Net interest income after provision for credit losses | 16 | (132) | 0 | (143) | ||
Net gain on loan sales | 0 | 0 | 0 | 0 | ||
Loan fees and charges | 0 | 0 | 0 | 0 | ||
Net return on mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Loan administrative (expense) income | (3) | (6) | (6) | (22) | ||
Other noninterest income | 7 | 8 | 14 | 14 | ||
Total noninterest income | 4 | 2 | 8 | (8) | ||
Compensation and benefits | 30 | 43 | 76 | 77 | ||
Commissions | 0 | 0 | 0 | 0 | ||
Loan processing expense | 0 | 1 | 2 | 2 | ||
Other noninterest expense | 54 | (103) | 101 | (107) | ||
Total noninterest expense | 84 | (59) | 179 | (28) | ||
Income (loss) before indirect overhead allocations and income taxes | (64) | (71) | (171) | (123) | ||
Indirect overhead allocation (expense) income | 30 | 32 | 64 | 58 | ||
Provision (benefit) for income taxes | (4) | (7) | (16) | (14) | ||
Net income | (30) | (32) | (91) | (51) | ||
Average balances | ||||||
Loans held-for-sale | 0 | 0 | 0 | 0 | ||
Loans with government guarantees | 0 | 0 | 0 | 0 | ||
Loans held-for-investment | 24 | 30 | 27 | 29 | ||
Total assets | 3,547 | 4,302 | 3,520 | 4,231 | ||
Deposits | 1,174 | 746 | 1,121 | 666 | ||
Intersegment Eliminations | ||||||
Summary of Operations | ||||||
Intersegment revenue (expense) | (55) | 94 | (78) | 92 | ||
Community Banking | Operating Segments | ||||||
Summary of Operations | ||||||
Net interest income | 149 | 133 | 305 | 237 | ||
Provision (benefit) for credit losses | 1 | (3) | (13) | 5 | ||
Net interest income after provision for credit losses | 148 | 136 | 318 | 232 | ||
Net gain on loan sales | 0 | 0 | 0 | 0 | ||
Loan fees and charges | 0 | 0 | 1 | 0 | ||
Net return on mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Loan administrative (expense) income | 0 | (1) | 0 | (2) | ||
Other noninterest income | 15 | 12 | 34 | 28 | ||
Total noninterest income | 15 | 11 | 35 | 26 | ||
Compensation and benefits | 27 | 24 | 55 | 51 | ||
Commissions | 1 | 0 | 1 | 1 | ||
Loan processing expense | 2 | 1 | 3 | 3 | ||
Other noninterest expense | (1) | 124 | 28 | 168 | ||
Total noninterest expense | 29 | 149 | 87 | 223 | ||
Income (loss) before indirect overhead allocations and income taxes | 134 | (2) | 266 | 35 | ||
Indirect overhead allocation (expense) income | (9) | (11) | (19) | (20) | ||
Provision (benefit) for income taxes | 26 | (3) | 52 | 3 | ||
Net income | 99 | (10) | 195 | 12 | ||
Average balances | ||||||
Loans held-for-sale | 22 | 0 | 11 | 0 | ||
Loans with government guarantees | 0 | 0 | 0 | 0 | ||
Loans held-for-investment | 11,827 | 10,878 | 12,314 | 9,888 | ||
Total assets | 12,175 | 11,292 | 12,668 | 10,340 | ||
Deposits | 11,694 | 10,747 | 11,749 | 10,590 | ||
Community Banking | Intersegment Eliminations | ||||||
Summary of Operations | ||||||
Intersegment revenue (expense) | 45 | (69) | 59 | (75) | ||
Mortgage Originations | Operating Segments | ||||||
Summary of Operations | ||||||
Net interest income | 58 | 56 | 114 | 98 | ||
Provision (benefit) for credit losses | (2) | (2) | (4) | (5) | ||
Net interest income after provision for credit losses | 60 | 58 | 118 | 103 | ||
Net gain on loan sales | 168 | 303 | 395 | 393 | ||
Loan fees and charges | 18 | 19 | 41 | 33 | ||
Net return on mortgage servicing rights | (5) | (8) | (5) | (2) | ||
Loan administrative (expense) income | (9) | (8) | (20) | (15) | ||
Other noninterest income | 2 | 1 | 5 | 2 | ||
Total noninterest income | 174 | 307 | 416 | 411 | ||
Compensation and benefits | 49 | 38 | 103 | 69 | ||
Commissions | 50 | 61 | 111 | 89 | ||
Loan processing expense | 12 | 11 | 23 | 18 | ||
Other noninterest expense | 20 | 56 | 42 | 82 | ||
Total noninterest expense | 131 | 166 | 279 | 258 | ||
Income (loss) before indirect overhead allocations and income taxes | 103 | 199 | 255 | 256 | ||
Indirect overhead allocation (expense) income | (16) | (15) | (35) | (27) | ||
Provision (benefit) for income taxes | 18 | 39 | 46 | 48 | ||
Net income | 69 | 145 | 174 | 181 | ||
Average balances | ||||||
Loans held-for-sale | 6,880 | 5,645 | 7,170 | 5,447 | ||
Loans with government guarantees | 2,344 | 858 | 2,422 | 834 | ||
Loans held-for-investment | 1,838 | 2,688 | 1,958 | 2,792 | ||
Total assets | 12,021 | 10,598 | 12,515 | 10,207 | ||
Deposits | 23 | 0 | 19 | 0 | ||
Mortgage Originations | Intersegment Eliminations | ||||||
Summary of Operations | ||||||
Intersegment revenue (expense) | (1) | (34) | (3) | (34) | ||
Mortgage Servicing | Operating Segments | ||||||
Summary of Operations | ||||||
Net interest income | 3 | 4 | 7 | 8 | ||
Provision (benefit) for credit losses | 0 | 0 | 0 | 0 | ||
Net interest income after provision for credit losses | 3 | 4 | 7 | 8 | ||
Net gain on loan sales | 0 | 0 | 0 | 0 | ||
Loan fees and charges | 19 | 19 | 37 | 28 | ||
Net return on mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Loan administrative (expense) income | 40 | 36 | 80 | 72 | ||
Other noninterest income | 0 | 0 | 0 | 0 | ||
Total noninterest income | 59 | 55 | 117 | 100 | ||
Compensation and benefits | 16 | 11 | 32 | 21 | ||
Commissions | 0 | 0 | 0 | 0 | ||
Loan processing expense | 8 | 9 | 15 | 16 | ||
Other noninterest expense | 21 | 17 | 44 | 36 | ||
Total noninterest expense | 45 | 37 | 91 | 73 | ||
Income (loss) before indirect overhead allocations and income taxes | 17 | 22 | 33 | 35 | ||
Indirect overhead allocation (expense) income | (5) | (6) | (10) | (11) | ||
Provision (benefit) for income taxes | 3 | 3 | 5 | 5 | ||
Net income | 9 | 13 | 18 | 19 | ||
Average balances | ||||||
Loans held-for-sale | 0 | 0 | 0 | 0 | ||
Loans with government guarantees | 0 | 0 | 0 | 0 | ||
Loans held-for-investment | 0 | 0 | 0 | 0 | ||
Total assets | 268 | 69 | 329 | 59 | ||
Deposits | 6,179 | 6,222 | 6,665 | 5,499 | ||
Mortgage Servicing | Intersegment Eliminations | ||||||
Summary of Operations | ||||||
Intersegment revenue (expense) | $ 11 | $ 9 | $ 22 | $ 17 |