Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 01, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity Central Index Key | 759,944 | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CFG | ||
Entity Registrant Name | CITIZENS FINANCIAL GROUP INC/RI | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 509,107,893 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,569,026,814 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS: | |||
Cash and due from banks | $ 955 | $ 1,099 | |
Interest-bearing cash and due from banks | 2,749 | 1,986 | |
Interest-bearing deposits in banks | 439 | 356 | |
Securities available for sale, at fair value (including $256 and $4,283 pledged to creditors, respectively) | [1] | 19,501 | 17,884 |
Securities held to maturity (including $0 and $135 pledged to creditors, respectively, and fair value of $5,058 and $5,297, respectively) | [1] | 5,071 | 5,258 |
Other investment securities, at fair value | 96 | 70 | |
Other investment securities, at cost | 942 | 863 | |
Loans held for sale, at fair value | 583 | 325 | |
Other loans held for sale | 42 | 40 | |
Loans and leases | 107,669 | 99,042 | |
Less: Allowance for loan and lease losses | 1,236 | 1,216 | |
Net loans and leases | 106,433 | 97,826 | |
Derivative assets | 627 | 625 | |
Premises and equipment, net | 601 | 595 | |
Bank-owned life insurance | 1,612 | 1,564 | |
Goodwill | 6,876 | 6,876 | |
Other assets | 2,993 | 2,841 | |
TOTAL ASSETS | 149,520 | 138,208 | |
LIABILITIES: | |||
Noninterest-bearing | 28,472 | 27,649 | |
Interest-bearing | 81,332 | 74,890 | |
Total deposits | 109,804 | 102,539 | |
Federal funds purchased and securities sold under agreements to repurchase | 1,148 | 802 | |
Other short-term borrowed funds | 3,211 | 2,630 | |
Derivative liabilities | 659 | 485 | |
Deferred taxes, net | 714 | 730 | |
Long-term borrowed funds | 12,790 | 9,886 | |
Other liabilities | 1,447 | 1,490 | |
TOTAL LIABILITIES | 129,773 | 118,562 | |
Contingencies (refer to Note 17) | |||
Preferred stock, $25.00 par value, authorized 100,000,000 shares: | |||
Series A, non-cumulative perpetual, $25.00 par value (liquidation preference $1,000), 250,000 shares authorized and issued net of issuance costs and related premium at December 31, 2016 and 2015 | 247 | 247 | |
Common stock: | |||
$0.01 par value, 1,000,000,000 shares authorized, 564,630,542 shares issued and 511,954,871 shares outstanding at December 31, 2016 and 1,000,000,000 shares authorized, 563,117,415 shares issued and 527,774,428 shares outstanding at December 31, 2015 | 6 | 6 | |
Additional paid-in capital | 18,722 | 18,725 | |
Retained earnings | 2,703 | 1,913 | |
Treasury stock, at cost, 52,675,671 and 35,342,987 shares at December 31, 2016 and 2015, respectively | (1,263) | (858) | |
Accumulated other comprehensive loss | (668) | (387) | |
TOTAL STOCKHOLDERS’ EQUITY | 19,747 | 19,646 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 149,520 | $ 138,208 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS: | ||
Securities held-to-maturity, fair value | $ 5,058 | $ 5,297 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 564,630,542 | 563,117,415 |
Common stock, outstanding (in shares) | 511,954,871 | 527,774,428 |
Treasury stock (in shares) | 52,675,671 | 35,342,987 |
Series A Preferred Stock | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 250,000 | 250,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Available-for-sale Securities | ||
ASSETS: | ||
Securities, pledged to creditors | $ 256 | $ 4,283 |
Held-to-maturity Securities | ||
ASSETS: | ||
Securities, pledged to creditors | $ 0 | $ 135 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME: | |||
Interest and fees on loans and leases | $ 3,653 | $ 3,211 | $ 3,012 |
Interest and fees on loans held for sale, at fair value | 15 | 10 | 5 |
Interest and fees on other loans held for sale | 6 | 7 | 23 |
Investment securities | 584 | 621 | 619 |
Interest-bearing deposits in banks | 8 | 5 | 5 |
Total interest income | 4,266 | 3,854 | 3,664 |
INTEREST EXPENSE: | |||
Deposits | 270 | 237 | 156 |
Deposits held for sale | 0 | 0 | 4 |
Federal funds purchased and securities sold under agreements to repurchase | 2 | 16 | 32 |
Other short-term borrowed funds | 40 | 67 | 89 |
Long-term borrowed funds | 196 | 132 | 82 |
Total interest expense | 508 | 452 | 363 |
Net interest income | 3,758 | 3,402 | 3,301 |
Provision for credit losses | 369 | 302 | 319 |
Net interest income after provision for credit losses | 3,389 | 3,100 | 2,982 |
NONINTEREST INCOME: | |||
Service charges and fees | 599 | 575 | 574 |
Card fees | 203 | 232 | 233 |
Trust and investment services fees | 146 | 157 | 158 |
Mortgage banking fees | 112 | 101 | 71 |
Capital markets fees | 125 | 88 | 91 |
Foreign exchange and letter of credit fees | 90 | 90 | 95 |
Bank-owned life insurance income | 54 | 56 | 49 |
Securities gains, net | 16 | 29 | 28 |
Net securities impairment losses recognized in earnings | (12) | (7) | (10) |
Other income | 164 | 101 | 389 |
Total noninterest income | 1,497 | 1,422 | 1,678 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 1,709 | 1,636 | 1,678 |
Outside services | 377 | 371 | 420 |
Occupancy | 307 | 319 | 326 |
Equipment expense | 263 | 257 | 250 |
Amortization of software | 170 | 146 | 145 |
Other operating expense | 526 | 530 | 573 |
Total noninterest expense | 3,352 | 3,259 | 3,392 |
Income before income tax expense | 1,534 | 1,263 | 1,268 |
Income tax expense | 489 | 423 | 403 |
NET INCOME | 1,045 | 840 | 865 |
Net income available to common stockholders | $ 1,031 | $ 833 | $ 865 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 522,093,545 | 535,599,731 | 556,674,146 |
Diluted (in shares) | 523,930,718 | 538,220,898 | 557,724,936 |
Per common share information: | |||
Basic earnings (in dollars per share) | $ 1.97 | $ 1.55 | $ 1.55 |
Diluted earnings (in dollars per share) | 1.97 | 1.55 | 1.55 |
Dividends declared and paid (in dollars per share) | $ 0.46 | $ 0.4 | $ 1.43 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,045 | $ 840 | $ 865 |
Other comprehensive (loss) income: | |||
Net unrealized derivative instrument (losses) gains arising during the periods, net of income taxes of ($38), $57, and $122, respectively | (62) | 93 | 212 |
Reclassification adjustment for net derivative (gains) losses included in net income, net of income taxes of ($22), ($9), and $10, respectively | (36) | (14) | 17 |
Net unrealized securities available for sale (losses) gains arising during the periods, net of income taxes of ($82), ($38), and $116, respectively | (139) | (66) | 198 |
Other-than-temporary impairment not recognized in earnings on securities, net of income taxes of ($10), ($14), and ($13), respectively | (17) | (22) | (22) |
Reclassification of net securities gains to net income, net of income taxes of ($2), ($8), and ($7), respectively | (2) | (14) | (11) |
Employee benefit plans: | |||
Actuarial loss, net of income taxes of ($20), ($3), and ($92), respectively | (34) | (3) | (148) |
Net prior service credit, net of income taxes of $0, $0 and $3, respectively | 0 | 0 | 4 |
Amortization of actuarial loss, net of income taxes of $6, $3, and $3, respectively | 10 | 12 | 7 |
Amortization of net prior service credit, net of income taxes $0, $0 and $0, respectively | (1) | (1) | (1) |
Divestitures effective September 1, 2014, net of income taxes of $0, $0 and $12, respectively | 0 | 0 | 20 |
Total other comprehensive (loss) income, net of income taxes | (281) | (15) | 276 |
Total comprehensive income | $ 764 | $ 825 | $ 1,141 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net unrealized derivative instrument (losses) gains arising during the periods, tax | $ (38) | $ 57 | $ 122 |
Reclassification adjustment for net derivative (gains) losses included in net income, tax | (22) | (9) | 10 |
Net unrealized securities available for sale (losses) gains arising during the periods, tax | (82) | (38) | 116 |
Other-than-temporary impairment not recognized in earnings on securities, tax | (10) | (14) | (13) |
Reclassification of net securities gains to net income, tax | (2) | (8) | (7) |
Actuarial loss, tax | (20) | (3) | (92) |
Net prior service credit, tax | 0 | 0 | 3 |
Amortization of actuarial loss, tax | 6 | 3 | 3 |
Amortization of net prior service credit, tax | 0 | 0 | 0 |
Divestitures effective September 1, 2014, tax | $ 0 | $ 0 | $ 12 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2013 | 0 | 560 | |||||
Beginning balance at Dec. 31, 2013 | $ 19,196 | $ 0 | $ 6 | $ 18,603 | $ 1,235 | $ 0 | $ (648) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (806) | (806) | |||||
Treasury stock purchased (in shares) | (14) | ||||||
Treasury stock purchased | (334) | (334) | |||||
Share-based compensation plans | 69 | 71 | (2) | ||||
Employee stock purchase plan shares purchased | 2 | 2 | |||||
Total comprehensive income: | |||||||
Net income | 865 | 865 | |||||
Other comprehensive income (loss) | 276 | 276 | |||||
Total comprehensive income | 1,141 | 865 | 276 | ||||
Ending balance (in shares) at Dec. 31, 2014 | 0 | 546 | |||||
Ending balance at Dec. 31, 2014 | 19,268 | $ 0 | $ 6 | 18,676 | 1,294 | (336) | (372) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (214) | (214) | |||||
Dividends to preferred stockholders | (7) | (7) | |||||
Issuance of preferred stock (in shares) | 0 | ||||||
Issuance of preferred stock | $ 247 | $ 247 | |||||
Treasury stock purchased (in shares) | (20.1) | (20) | |||||
Treasury stock purchased | $ (500) | (500) | |||||
Share-based compensation plans (in shares) | 2 | ||||||
Share-based compensation plans | 18 | 40 | (22) | ||||
Employee stock purchase plan shares purchased | 9 | 9 | |||||
Total comprehensive income: | |||||||
Net income | 840 | 840 | |||||
Other comprehensive income (loss) | (15) | (15) | |||||
Total comprehensive income | 825 | 840 | (15) | ||||
Ending balance (in shares) at Dec. 31, 2015 | 0 | 528 | |||||
Ending balance at Dec. 31, 2015 | 19,646 | $ 247 | $ 6 | 18,725 | 1,913 | (858) | (387) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends to common stockholders | (241) | (241) | |||||
Dividends to preferred stockholders | $ (14) | (14) | |||||
Treasury stock purchased (in shares) | (17.3) | (17) | |||||
Treasury stock purchased | $ (430) | (25) | (405) | ||||
Share-based compensation plans (in shares) | 1 | ||||||
Share-based compensation plans | 12 | 12 | 0 | ||||
Employee stock purchase plan shares purchased | 10 | 10 | |||||
Total comprehensive income: | |||||||
Net income | 1,045 | 1,045 | |||||
Other comprehensive income (loss) | (281) | (281) | |||||
Total comprehensive income | 764 | 1,045 | (281) | ||||
Ending balance (in shares) at Dec. 31, 2016 | 0 | 512 | |||||
Ending balance at Dec. 31, 2016 | $ 19,747 | $ 247 | $ 6 | $ 18,722 | $ 2,703 | $ (1,263) | $ (668) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ 1,045,000,000 | $ 840,000,000 | $ 865,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 369,000,000 | 302,000,000 | 319,000,000 |
Originations of mortgage loans held for sale | (2,829,000,000) | (2,363,000,000) | (1,615,000,000) |
Proceeds from sales of mortgage loans held for sale | 2,652,000,000 | 2,381,000,000 | 1,578,000,000 |
Purchases of commercial loans held for sale | (1,355,000,000) | (1,176,000,000) | (312,000,000) |
Proceeds from sales of commercial loans held for sale | 1,335,000,000 | 1,158,000,000 | 269,000,000 |
Amortization of terminated cash flow hedges | (8,000,000) | 17,000,000 | 46,000,000 |
Depreciation, amortization and accretion | 523,000,000 | 471,000,000 | 386,000,000 |
Mortgage servicing rights valuation recovery | (4,000,000) | (9,000,000) | (5,000,000) |
Securities impairment | 12,000,000 | 7,000,000 | 10,000,000 |
Deferred income taxes | 153,000,000 | 249,000,000 | 141,000,000 |
Share-based compensation | 23,000,000 | 24,000,000 | 53,000,000 |
Loss on disposal/impairment of premises and equipment | 0 | 0 | 27,000,000 |
Loss on sale of other branch assets held for sale | 0 | 0 | 9,000,000 |
Gain on sales of: | |||
Debt securities | (16,000,000) | (29,000,000) | (28,000,000) |
Marketable equity securities available for sale | (3,000,000) | (3,000,000) | 0 |
Premises and equipment | (2,000,000) | (9,000,000) | 0 |
Extinguishment of debt | 0 | (3,000,000) | 0 |
Other loans held for sale | (72,000,000) | 0 | (11,000,000) |
Deposits held for sale | 0 | 0 | (286,000,000) |
Increase in other assets | (274,000,000) | (467,000,000) | (295,000,000) |
(Decrease) increase in other liabilities | (59,000,000) | (161,000,000) | 239,000,000 |
Net cash provided by operating activities | 1,490,000,000 | 1,229,000,000 | 1,390,000,000 |
INVESTING ACTIVITIES | |||
Purchases of securities available for sale | (7,664,000,000) | (6,783,000,000) | (8,315,000,000) |
Proceeds from maturities and paydowns of securities available for sale | 3,785,000,000 | 3,420,000,000 | 2,999,000,000 |
Proceeds from sales of securities available for sale | 1,966,000,000 | 3,916,000,000 | 3,325,000,000 |
Purchases of securities held to maturity | (523,000,000) | (932,000,000) | (1,174,000,000) |
Proceeds from maturities and paydowns of securities held to maturity | 720,000,000 | 761,000,000 | 362,000,000 |
Proceeds from sales of securities held to maturity | 0 | 72,000,000 | 0 |
Purchases of other investment securities, at fair value | (246,000,000) | (157,000,000) | 0 |
Proceeds from sales of other investment securities, at fair value | 220,000,000 | 120,000,000 | 0 |
Purchases of other investment securities, at cost | (166,000,000) | (91,000,000) | (84,000,000) |
Proceeds from sales of other investment securities, at cost | 87,000,000 | 95,000,000 | 146,000,000 |
Net (increase) decrease in interest-bearing deposits in banks | (83,000,000) | 14,000,000 | (137,000,000) |
Net increase in loans and leases | (9,074,000,000) | (6,019,000,000) | (6,900,000,000) |
Net increase in bank-owned life insurance | (48,000,000) | (37,000,000) | (188,000,000) |
Premises and equipment: | |||
Purchases | (138,000,000) | (121,000,000) | (141,000,000) |
Proceeds from sales | 3,000,000 | 15,000,000 | 3,000,000 |
Capitalization of software | (165,000,000) | (178,000,000) | (170,000,000) |
Net cash used in investing activities | (11,326,000,000) | (5,905,000,000) | (10,274,000,000) |
FINANCING ACTIVITIES | |||
Net increase in deposits | 7,265,000,000 | 6,832,000,000 | 3,813,000,000 |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 346,000,000 | (3,474,000,000) | (515,000,000) |
Net (decrease) increase in other short-term borrowed funds | (3,186,000,000) | (4,383,000,000) | 4,002,000,000 |
Proceeds from issuance of long-term borrowed funds | 15,144,000,000 | 6,750,000,000 | 3,249,000,000 |
Repayments of long-term borrowed funds | (8,429,000,000) | (766,000,000) | (6,000,000) |
Treasury stock purchased | (430,000,000) | (500,000,000) | (334,000,000) |
Net proceeds from issuance of preferred stock | 0 | 247,000,000 | 0 |
Dividends declared and paid to common stockholders | (241,000,000) | (214,000,000) | (806,000,000) |
Dividends declared and paid to preferred stockholders | (14,000,000) | (7,000,000) | 0 |
Net cash provided by financing activities | 10,455,000,000 | 4,485,000,000 | 9,403,000,000 |
Increase (decrease) in cash and cash equivalents | 619,000,000 | (191,000,000) | 519,000,000 |
Cash and cash equivalents at beginning of period | 3,085,000,000 | 3,276,000,000 | 2,757,000,000 |
Cash and cash equivalents at end of period | 3,704,000,000 | 3,085,000,000 | 3,276,000,000 |
Supplemental disclosures: | |||
Interest paid | 505,000,000 | 454,000,000 | 338,000,000 |
Income taxes paid | 94,000,000 | 157,000,000 | 391,000,000 |
Non-cash items: | |||
Loans securitized and transferred to securities available for sale | 68,000,000 | 3,000,000 | 18,000,000 |
Income tax withholding on stock purchased for share based compensation | 0 | 22,000,000 | 2,000,000 |
Stock purchased for share-based compensation plans | 12,000,000 | 40,000,000 | 71,000,000 |
Stock purchased for Employee Stock Purchase Plan | $ 10,000,000 | $ 9,000,000 | $ 2,000,000 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Citizens Financial Group, Inc. conform to GAAP. The Company’s principal business activity is banking, conducted through its subsidiaries Citizens Bank, N.A. and Citizens Bank of Pennsylvania. The Company’s significant accounting policies are summarized as follows: Basis of Presentation The Consolidated Financial Statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. Interest-Bearing Deposits in Banks Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. Securities Investments include debt and marketable equity securities and other investment securities. The Company classifies debt securities as AFS, HTM, or trading based on management’s intent to hold to maturity at the time of purchase, and marketable equity securities as AFS or trading. Securities that will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy are classified as AFS and reported at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Gains and losses on the sales of securities are recognized in noninterest income and are computed using the specific identification method. Premiums and discounts on debt securities are amortized or accreted using the effective interest method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the effective interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. The Company reviews its AFS securities for other-than-temporary impairment on a quarterly basis or more frequently if a potential loss triggering event occurs. The initial indicator of other-than-temporary impairment for both debt and equity securities is a decline in fair value below its recorded investment amount, as well as the severity and duration of the decline. For a security of which there has been a decline in fair value below the cost basis, the Company recognizes other-than-temporary impairment if (1) management has the intent to sell the security, (2) it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, or (3) the Company does not expect to recover the entire cost basis of the security. Estimating the recovery of the amortized cost basis of a debt security is based upon an assessment of the cash flows expected to be collected. If the present value of cash flows expected to be collected, discounted at the security’s effective yield, is less than amortized cost, other-than-temporary impairment is considered to have occurred. If the Company intends to sell the impaired security, or if it is more likely than not it will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss, which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. Debt securities for which the Company has the ability and intent to hold to maturity are classified as HTM. The securities are reported at cost and adjusted for amortization of premiums and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. The Company recognizes other-than-temporary impairment when there is a decline in fair value and it does not expect to recover the entire amortized cost basis of the debt security. The amortized cost is written-down to fair value with the credit loss component recognized in current period earnings and remaining component recognized in OCI. Transfers of debt securities to the HTM classification are recognized at fair value at the date of transfer. Unrealized gains or losses from the transfer of AFS securities are retained in OCI and are amortized into earnings over the remaining life of the security using the effective interest method. Securities that are classified as trading are bought and held principally for the purpose of selling them in the near term and are carried at fair value, with changes in fair value recognized in earnings. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Other investment securities are primarily composed of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealer (which are carried at fair value, with changes in fair value recognized in noninterest income). Other investment securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. Loans and Leases Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans. Deferred loan origination fees and costs and purchase premiums and discounts are amortized as an adjustment of yield over the life of the loan, using the effective interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Leases are classified at the inception of the lease. Direct financing lease receivables are reported at the aggregate of minimum lease payments receivable plus the estimated residual value of the leased property, less unearned and deferred income, including unamortized investment credits. Leveraged leases, which are a form of direct financing leases, are recorded net of related non-recourse debt. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against other income for direct financing and leveraged leases. Unearned income is recognized as a constant percentage of outstanding lease financing balances over the lease terms in interest income. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. Loans are classified upon origination or acquisition as either held-for-investment or held-for-sale. This classification is based on management’s initial intent and ability to hold the loans to maturity. Loans held for sale are carried at the lower of cost or fair value, with any write-downs or subsequent recoveries charged to other income. The Company accounts for certain loans held for sale, including those loans associated with our mortgage banking business and secondary loan trading desk, under the fair value option at fair value. Allowance for Credit Losses Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The ALLL is maintained at a level that management considers reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. The evaluation of the adequacy of the commercial, commercial real estate, and lease ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, delinquency status, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can be used to support management overlays if deemed necessary. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. Nonperforming Loans and Leases Nonperforming loans and leases are those on which accrual of interest has been suspended. Loans (other than certain retail loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principle and interest is in doubt, unless the loan is both well secured and in the process of collection. When the Company places a loan on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and amortization of any net deferred fees is suspended. Interest collections on nonaccruing loans and leases for which the ultimate collectability of principal is uncertain are generally applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent of the cash received. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and the Company is reasonably assured that the loan or lease will be brought fully current within a reasonable period. Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent, unless repayment of the loan is insured by the Federal Housing Administration. Credit card balances are placed on nonaccrual status when past due 90 days or more and are restored to accruing status if they subsequently become less than 90 days past due. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. Loan Charge-Offs Commercial loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off involves many factors, including the prioritization of the Company’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. Retail loans are generally fully charged-off or written down to the net realizable value of the underlying collateral, with an offset to the ALLL, upon reaching specified stages of delinquency in accordance with standards established by the Federal Financial Institutions Examination Council (“FFIEC”). Residential real estate loans, credit card loans and unsecured open end loans are generally charged off in the month in which the account becomes 180 days past due. Auto loans, student loans and unsecured closed end loans are generally charged off in the month in which the account becomes 120 days past due. Certain retail loans will be charged off earlier than the FFIEC standards in the following circumstances: • A charge-off is recognized when a loan is modified in a TDR if the loan is determined to be collateral-dependent. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources. • Loans to borrowers who have experienced an event (e.g. bankruptcy) that suggests a loss is either known or highly certain are subject to accelerated charge-off standards. Residential real estate and auto loans are charged down to the net realizable value when the loan becomes 60 days past due, or sooner if the loan is determined to be collateral-dependent. Credit card loans are fully charged off within 60 days of receiving notification of the bankruptcy filing or other event. Student loans are generally charged off when the loan becomes 60 days past due after receiving notification of a bankruptcy. • Auto loans are written down to net realizable value upon repossession of the collateral. Impaired Loans A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogeneous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. When a loan is identified as impaired, the impairment is measured on an individual loan level as the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loan’s effective interest rate. When collateral is the sole source of repayment for the impaired loan, rather than the borrower’s income or other sources of repayment, the Company charges down the loan to its net realizable value. Troubled Debt Restructuring The Company seeks to modify certain loans in conjunction with its loss-mitigation activities. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant time period to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Concessions may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forbearance, or capitalizing past due amounts. A rate increase can be considered a concession if the increased rate is lower than a market rate for loans with risk similar to that of the restructured loan. TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases interest income throughout the term of the loan may increase if, for example, the loan term is extended or the interest rate is increased as a result of the restructuring. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. Retail and commercial loans whose contractual terms have been modified in a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Software Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. Operating Lease Assets Operating lease rental income for leased assets is recognized in other income on a straight-line basis over the lease term. Related depreciation expense is recorded on a straight-line basis over the estimated useful life, considering the estimated residual value of the leased asset. On a periodic basis, leased assets are reviewed for impairment. Impairment loss is recognized in other noninterest expense if the carrying amount of the leased assets exceeds fair value and is not recoverable. The carrying amount of leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the asset. Fair Value The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, derivative instruments and other investment securities. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans and leases, and goodwill. Goodwill Goodwill is the purchase premium associated with the acquisition of a business and is assigned to reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considera |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | CASH AND DUE FROM BANKS The Company’s subsidiary banks maintain certain average reserve balances and compensating balances for check clearing and other services with the FRB. At December 31, 2016 and 2015 , the balance of deposits at the FRB amounted to $2.7 billion and $2.0 billion , respectively. Average balances maintained with the FRB during the years ended December 31, 2016 , 2015 , and 2014 exceeded amounts required by law for the FRB’s requirements. All amounts, both required and excess reserves, held at the FRB currently earn interest at a fixed rate of 75 basis points. The Company recorded interest income on FRB deposits of $7 million , $4 million , and $5 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, in interest-bearing deposits in banks in the Consolidated Statement of Operations. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table presents the major components of securities at amortized cost and fair value: December 31, 2016 December 31, 2015 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Treasury and other $30 $— $— $30 $16 $— $— $16 State and political subdivisions 8 — — 8 9 — — 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 19,231 78 (264 ) 19,045 17,234 153 (67 ) 17,320 Other/non-agency 427 2 (28 ) 401 555 4 (37 ) 522 Total mortgage-backed securities 19,658 80 (292 ) 19,446 17,789 157 (104 ) 17,842 Total debt securities available for sale 19,696 80 (292 ) 19,484 17,814 157 (104 ) 17,867 Marketable equity securities 5 — — 5 5 — — 5 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 17 — — 17 Total securities available for sale $19,713 $80 ($292 ) $19,501 $17,831 $157 ($104 ) $17,884 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,126 $12 ($44 ) $4,094 $4,105 $27 ($11 ) $4,121 Other/non-agency 945 19 — 964 1,153 23 — 1,176 Total securities held to maturity $5,071 $31 ($44 ) $5,058 $5,258 $50 ($11 ) $5,297 Other Investment Securities, at Fair Value Money market mutual fund $91 $— $— $91 $65 $— $— $65 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $96 $— $— $96 $70 $— $— $70 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $468 $— $— $468 Federal Home Loan Bank stock 479 — — 479 395 — — 395 Total other investment securities, at cost $942 $— $— $942 $863 $— $— $863 The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2016 2015 2014 Other-than-temporary impairment: Total other-than-temporary impairment losses ($39 ) ($43 ) ($45 ) Portions of loss recognized in other comprehensive income (before taxes) 27 36 35 Net securities impairment losses recognized in earnings ($12 ) ($7 ) ($10 ) The following tables present securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: December 31, 2016 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses State and political subdivisions 1 $8 $— — $— $— 1 $8 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 323 15,387 (292 ) 25 461 (16 ) 348 15,848 (308 ) Other/non-agency 4 8 — 20 302 (28 ) 24 310 (28 ) Total mortgage-backed securities 327 15,395 (292 ) 45 763 (44 ) 372 16,158 (336 ) Total 328 $15,403 ($292 ) 45 $763 ($44 ) 373 $16,166 ($336 ) December 31, 2015 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses State and political subdivisions 1 $9 $— — $— $— 1 $9 $— US Treasury and other 1 15 — — — — 1 15 — Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 162 7,423 (51 ) 36 819 (27 ) 198 8,242 (78 ) Other/non-agency 2 9 — 20 361 (37 ) 22 370 (37 ) Total mortgage-backed securities 164 7,432 (51 ) 56 1,180 (64 ) 220 8,612 (115 ) Total 166 $7,456 ($51 ) 56 $1,180 ($64 ) 222 $8,636 ($115 ) For each debt security identified with an unrealized loss, the Company reviews the expected cash flows to determine if the impairment in value is temporary or other-than-temporary. If the Company has determined that the present value of the debt security’s expected cash flows is less than its amortized cost basis, an other-than-temporary impairment is deemed to have occurred. The amount of impairment loss that is recognized in current period earnings is dependent on the Company’s intent to sell (or not sell) the debt security. If the Company intends to sell the impaired debt security, or if it is more likely than not it will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired debt security, and it is not more likely than not that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss, which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. In addition to these cash flow projections, several other characteristics of each debt security are reviewed when determining whether a credit loss exists and the period over which the debt security is expected to recover. These characteristics include: (1) the type of investment, (2) various market factors affecting the fair value of the security (e.g., interest rates, spread levels, liquidity in the sector, etc.), (3) the length and severity of impairment, and (4) the public credit rating of the instrument. The Company estimates the portion of loss attributable to credit using a collateral loss model and integrated cash flow engine. The model calculates prepayment, default and loss severity assumptions using collateral performance data. These assumptions are used to produce cash flows that generate loss projections. These loss projections are reviewed on a quarterly basis by a cross-functional governance committee to determine whether security impairments are other-than-temporary. The following table presents the cumulative credit related losses recognized in earnings on debt securities held by the Company: Year Ended December 31, (in millions) 2016 2015 2014 Cumulative balance at beginning of period $66 $62 $56 Credit impairments recognized in earnings on securities that have been previously impaired 12 7 10 Reductions due to increases in cash flow expectations on impaired securities (1) (3 ) (3 ) (4 ) Cumulative balance at end of period $75 $66 $62 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. Cumulative credit losses recognized in earnings for impaired AFS debt securities held as of December 31, 2016 , 2015 and 2014 were $75 million , $66 million and $62 million , respectively. There were no credit losses recognized in earnings for the Company’s HTM portfolio as of December 31, 2016 , 2015 and 2014 . For the years ended December 31, 2016 , 2015 and 2014 , the Company incurred non-agency MBS credit related other-than-temporary impairment losses in earnings of $12 million , $7 million and $10 million , respectively. Other-than-temporary impairment losses for the year ended December 31, 2016 reflect a $5 million increase from the year ended December 31, 2015 related to a one-time adjustment tied to the June 2016 migration from a proprietary internal process to a vendor-based model to estimate other-than-temporary impairment. There were no credit impaired debt securities sold during the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company does not currently have the intent to sell these debt securities, and it is not more likely than not that the Company will be required to sell these debt securities prior to the recovery of their amortized cost bases. The Company has determined that credit losses are not expected to be incurred on the remaining agency and non-agency MBS identified with unrealized losses as of the current reporting date. The unrealized losses on these debt securities reflect non- credit-related factors such as changing interest rates and market liquidity. Therefore, the Company has determined that these debt securities are not other-than-temporarily impaired because the Company does not currently have the intent to sell these debt securities, and it is not more likely than not that the Company will be required to sell these debt securities prior to the recovery of their amortized cost bases. Any subsequent increases in the valuation of impaired debt securities do not impact their recorded cost bases. Additionally, as of December 31, 2016 , 2015 and 2014 , $27 million , $36 million and $35 million respectively, of pre-tax non-credit related losses were deferred in OCI. The amortized cost and fair value of debt securities at December 31, 2016 by contractual maturity are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized Cost: Debt securities available for sale: U.S. Treasury and other $30 $— $— $— $30 State and political subdivisions — — — 8 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 27 1,177 18,026 19,231 Other/non-agency — 36 3 388 427 Total debt securities available for sale 31 63 1,180 18,422 19,696 Debt securities held to maturity: Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,126 4,126 Other/non-agency — — — 945 945 Total debt securities held to maturity — — — 5,071 5,071 Total amortized cost of debt securities $31 $63 $1,180 $23,493 $24,767 Fair Value: Debt securities available for sale U.S. Treasury and other $30 $— $— $— $30 State and political subdivisions — — — 8 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 28 1,194 17,822 19,045 Other/non-agency — 36 3 362 401 Total debt securities available for sale 31 64 1,197 18,192 19,484 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,094 4,094 Other/non-agency — — — 964 964 Total debt securities held to maturity — — — 5,058 5,058 Total fair value of debt securities $31 $64 $1,197 $23,250 $24,542 Taxable interest income from investment securities as presented on the Consolidated Statements of Operations was $584 million , $621 million and $619 million for the years ended December 31, 2016, 2015 and 2014 , respectively. Realized gains and losses on securities are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Gains on sale of debt securities $18 $41 $33 Losses on sale of debt securities (2 ) (12 ) (5 ) Debt securities gains, net $16 $29 $28 Equity securities gains $3 $3 $— In advance of the July 2017 Volcker Rule’s effective date, during the year ended December 31, 2015, the Company sold a $73 million mortgage-backed security that was classified as HTM, which would have been prohibited under the Volcker Rule, and recognized a $2 million gain. The amortized cost and fair value of securities pledged are presented below: December 31, 2016 December 31, 2015 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $631 $620 $805 $808 Pledged against FHLB borrowed funds 953 972 1,163 1,186 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,575 3,563 3,579 3,610 The Company regularly enters into security repurchase agreements with unrelated counterparties. Repurchase agreements are financial transactions that involve the transfer of a security from one party to another and a subsequent transfer of the same (or “substantially the same”) security back to the original party. The Company’s repurchase agreements are typically short-term transactions, but they may be extended to longer terms to maturity. Such transactions are accounted for as secured borrowed funds on the Company’s Consolidated Balance Sheets. When permitted by GAAP, the Company offsets short-term receivables associated with its reverse repurchase agreements against short-term payables associated with its repurchase agreements. The impact of this offsetting on the Consolidated Balance Sheets is presented in the following table: December 31, 2016 December 31, 2015 (in millions) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Securities purchased under agreements to resell $— $— $— $500 ($500 ) $— Securities sold under agreements to repurchase — — — (500 ) 500 — Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 16 “Derivatives.” Securitizations of mortgage loans retained in the investment portfolio for the years ended December 31, 2016 , 2015 and 2014 , were $68 million , $3 million and $18 million , respectively. These securitizations included a substantive guarantee by a third party. In 2016, the guarantors were Fannie Mae and Ginnie Mae. In 2015, the guarantor was Freddie Mac. In 2014, the guarantors were Fannie Mae, Ginnie Mae, and Freddie Mac. These securitizations were accounted for as a sale of the transferred loans and as a purchase of securities. The securities received from the guarantors are classified as AFS. |
LOANS AND LEASES
LOANS AND LEASES | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES The Company’s loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others, which the Company now services a portion of internally. A summary of the loans and leases portfolio is presented below: December 31, (in millions) 2016 2015 Commercial $37,274 $33,264 Commercial real estate 10,624 8,971 Leases 3,753 3,979 Total commercial 51,651 46,214 Residential mortgages 15,115 13,318 Home equity loans 1,858 2,557 Home equity lines of credit 14,100 14,674 Home equity loans serviced by others 750 986 Home equity lines of credit serviced by others 219 389 Automobile 13,938 13,828 Student 6,610 4,359 Credit cards 1,691 1,634 Other retail 1,737 1,083 Total retail 56,018 52,828 Total loans and leases (1) (2) $107,669 $99,042 (1) Excluded from the table above are loans held for sale totaling $625 million and $365 million as of December 31, 2016 and 2015 , respectively. (2) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.3 billion and $17.6 billion at December 31, 2016 and 2015 , respectively. During the year ended December 31, 2016 , the Company purchased $1.2 billion of student loans, $695 million of automobile loans and $539 million of residential mortgages. During the year ended December 31, 2015 , the Company purchased $957 million of student loans, $1.3 billion of automobile loans and $1.1 billion of residential mortgages. During the year ended December 31, 2016 , the Company sold $310 million of TDRs, including $255 million of residential mortgages and $55 million of home equity loans, which resulted in a pre-tax gain of $72 million reported in other income on the Consolidated Statements of Operations. Additionally, during the year ended December 31, 2016 , the Company sold $444 million of residential mortgage loans and $147 million of commercial loans. During the year ended December 31, 2015 , the Company sold $273 million of residential mortgage loans, $401 million of commercial loans and $41 million of credit card balances. Loans held for sale at fair value totaled $583 million and $325 million at December 31, 2016 and 2015 , respectively, and consisted of residential mortgages originated for sale of $504 million and loans in the commercial trading portfolio of $79 million as of December 31, 2016 . As of December 31, 2015 , residential mortgages originated for sale were $268 million and loans in the commercial trading portfolio totaled $57 million . Other loans held for sale totaled $42 million and $40 million as of December 31, 2016 and 2015 , respectively, and consisted of commercial loan syndications. Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $24.0 billion and $23.2 billion at December 31, 2016 and 2015 , respectively. This collateral consists primarily of residential mortgages and home equity loans. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, totaled $16.8 billion and $15.9 billion at December 31, 2016 and 2015 , respectively. The Company is engaged in the leasing of equipment for commercial use, with primary lease concentrations to Fortune 1000 companies for large capital equipment acquisitions. A lessee is evaluated from a credit perspective using the same underwriting standards and procedures as for a loan borrower. A lessee is expected to make rental payments based on its cash flows and the viability of its balance sheet. Leases are usually not evaluated as collateral-based transactions, and therefore the lessee’s overall financial strength is the most important credit evaluation factor. A summary of the investment in leases, before the ALLL, is presented below: December 31, (in millions) 2016 2015 Direct financing leases $3,670 $3,898 Leveraged leases 83 81 Total leases $3,753 $3,979 The components of the investment in leases, before the ALLL, are presented below: December 31, (in millions) 2016 2015 Total future minimum lease rentals $2,922 $3,195 Estimated residual value of leased equipment (non-guaranteed) 1,166 1,157 Initial direct costs 20 22 Unearned income on minimum lease rentals and estimated residual value of leased equipment (355 ) (395 ) Total leases $3,753 $3,979 The future minimum lease rentals on direct financing and leveraged leases at December 31, 2016 are presented below: Year (in millions) 2017 $647 2018 610 2019 532 2020 401 2021 274 Thereafter 458 Total $2,922 There was no investment credit recognized in income during the years ended December 31, 2016 , 2015 and 2014 . |
ALLOWANCE FOR CREDIT LOSSES, NO
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK | ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. It is increased through a provision for credit losses that is charged to earnings, based on the Company’s quarterly evaluation of the loan portfolio, and is reduced by net charge-offs and the ALLL associated with sold loans. See Note 1 “Significant Accounting Policies” for a detailed discussion of ALLL reserve methodologies and estimation techniques. On a quarterly basis, the Company reviews and refines its estimate of the allowance for credit losses, taking into consideration changes in portfolio size and composition, historical loss experience, internal risk ratings, current economic conditions, industry performance trends and other pertinent information. There were no material changes in assumptions or estimation techniques compared with prior years that impacted the determination of the current year’s ALLL and the reserve for unfunded lending commitments. However, as part of the annual review of loss emergence periods, the incurred loss periods for retail property secured loans were extended. A summary of changes in the allowance for credit losses is presented below: Year ended December 31, 2016 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $596 $620 $1,216 Charge-offs (79 ) (457 ) (536 ) Recoveries 33 168 201 Net charge-offs (46 ) (289 ) (335 ) Provision charged to income 113 242 355 Allowance for loan and lease losses, end of period 663 573 1,236 Reserve for unfunded lending commitments, beginning of period 58 — 58 Provision (credit) for unfunded lending commitments 14 — 14 Reserve for unfunded lending commitments as of period end 72 — 72 Total allowance for credit losses as of period end $735 $573 $1,308 Year Ended December 31, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $544 $651 $1,195 Charge-offs (36 ) (444 ) (480 ) Recoveries 49 147 196 Net recoveries (charge-offs) 13 (297 ) (284 ) Provision charged to income 39 266 305 Allowance for loan and lease losses, end of period 596 620 1,216 Reserve for unfunded lending commitments, beginning of period 61 — 61 Provision (credit) for unfunded lending commitments (3 ) — (3 ) Reserve for unfunded lending commitments as of period end 58 — 58 Total allowance for credit losses as of period end $654 $620 $1,274 Year Ended December 31, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $498 $723 $1,221 Charge-offs (43 ) (450 ) (493 ) Recoveries 58 112 170 Net recoveries (charge-offs) 15 (338 ) (323 ) Provision charged to income 31 266 297 Allowance for loan and lease losses, end of period 544 651 1,195 Reserve for unfunded lending commitments, beginning of period 39 — 39 Provision (credit) for unfunded lending commitments 22 — 22 Reserve for unfunded lending commitments as of period end 61 — 61 Total allowance for credit losses as of period end $605 $651 $1,256 The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: December 31, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $424 $799 $1,223 $218 $1,165 $1,383 Formula-based evaluation 51,227 55,219 106,446 45,996 51,663 97,659 Total $51,651 $56,018 $107,669 $46,214 $52,828 $99,042 A summary of the allowance for credit losses by evaluation method is presented below: December 31, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $63 $43 $106 $36 $101 $137 Formula-based evaluation 672 530 1,202 618 519 1,137 Allowance for credit losses $735 $573 $1,308 $654 $620 $1,274 For commercial loans and leases, the Company utilizes regulatory classification ratings to monitor credit quality. Loans with a “pass” rating are those that the Company believes will be fully repaid in accordance with the contractual loan terms. Commercial loans and leases that are “criticized” are those that have some weakness or potential weakness that indicates an increased probability of future loss. “Criticized” loans are grouped into three categories, “special mention,” “substandard” and “doubtful.” Special mention loans have potential weaknesses that, if left uncorrected, may result in deterioration of the Company’s credit position at some future date. Substandard loans are inadequately protected loans; these loans have well-defined weaknesses that could hinder normal repayment or collection of debt. Doubtful loans have the same weaknesses as substandard, with the added characteristics that the possibility of loss is high and collection of the full amount of the loan is improbable. For retail loans, the Company primarily uses the loan’s payment and delinquency status to monitor credit quality. The further a loan is past due, the greater the likelihood of future credit loss. These credit quality indicators for both commercial and retail loans are continually updated and monitored. The recorded investment in commercial loans and leases based on regulatory classification ratings is presented below: December 31, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,010 $1,015 $1,027 $222 $37,274 Commercial real estate 10,146 370 58 50 10,624 Leases 3,583 52 103 15 3,753 Total $48,739 $1,437 $1,188 $287 $51,651 December 31, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,276 $911 $1,002 $75 $33,264 Commercial real estate 8,450 272 171 78 8,971 Leases 3,880 55 44 — 3,979 Total $43,606 $1,238 $1,217 $153 $46,214 The recorded investment in classes of retail loans, categorized by delinquency status is presented below: December 31, 2016 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $14,807 $108 $53 $12 $135 $15,115 Home equity loans 1,628 127 23 7 73 1,858 Home equity lines of credit 13,432 396 57 20 195 14,100 Home equity loans serviced by others 673 41 14 5 17 750 Home equity lines of credit serviced by others 158 25 3 2 31 219 Automobile 12,509 1,177 172 38 42 13,938 Student 6,379 151 24 13 43 6,610 Credit cards 1,611 43 12 9 16 1,691 Other retail 1,676 45 8 4 4 1,737 Total $52,873 $2,113 $366 $110 $556 $56,018 December 31, 2015 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $12,905 $97 $54 $16 $246 $13,318 Home equity loans 2,245 164 32 12 104 2,557 Home equity lines of credit 13,982 407 60 20 205 14,674 Home equity loans serviced by others 886 60 14 6 20 986 Home equity lines of credit serviced by others 296 48 10 6 29 389 Automobile 12,670 964 127 32 35 13,828 Student 4,175 113 19 11 41 4,359 Credit cards 1,554 44 11 9 16 1,634 Other retail 1,013 53 8 4 5 1,083 Total $49,726 $1,950 $335 $116 $701 $52,828 Nonperforming Assets The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming (1) Accruing and 90 days or more past due (in millions) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial $322 $71 $2 $1 Commercial real estate 50 77 — — Leases 15 — — — Total commercial 387 148 2 1 Residential mortgages (2) (3) 144 331 18 — Home equity loans 98 135 — — Home equity lines of credit 243 272 — — Home equity loans serviced by others 32 38 — — Home equity lines of credit serviced by others 33 32 — — Automobile 50 42 — — Student 38 41 5 6 Credit cards 16 16 — — Other retail 4 5 1 2 Total retail 658 912 24 8 Total $1,045 $1,060 $26 $9 (1) Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million . (2) Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of December 31, 2016 , $18 million of these loans were accruing and 90 days or more past due. (3) Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of December 31, 2016 these loans totaled $32 million . These loans are consolidated on the Company’s Consolidated Balance Sheets. Other nonperforming assets consist primarily of other real estate owned and are presented in other assets on the Consolidated Balance Sheets. A summary of other nonperforming assets is presented below: December 31, (in millions) 2016 2015 Nonperforming assets, net of valuation allowance: Commercial $— $1 Retail 49 45 Nonperforming assets, net of valuation allowance $49 $46 A summary of key performance indicators is presented below: December 31, 2016 2015 Nonperforming commercial loans and leases as a percentage of total loans and leases (1) 0.36 % 0.15 % Nonperforming retail loans as a percentage of total loans and leases (1) 0.61 0.92 Total nonperforming loans and leases as a percentage of total loans and leases (1) 0.97 % 1.07 % Nonperforming commercial assets as a percentage of total assets (1) 0.26 % 0.11 % Nonperforming retail assets as a percentage of total assets (1) 0.47 0.69 Total nonperforming assets as a percentage of total assets (1) 0.73 % 0.80 % (1) December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. The recorded investment in mortgage loans collateralized by residential real estate property for which formal foreclosure proceedings are in process was $177 million and $257 million as of December 31, 2016 and 2015, respectively. An analysis of the age of both accruing and nonaccruing loan and lease past due amounts is presented below: December 31, 2016 December 31, 2015 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $36 $4 $324 $364 $9 $4 $71 $84 Commercial real estate 1 2 50 53 30 3 77 110 Leases 1 — 15 16 9 1 — 10 Total commercial 38 6 389 433 48 8 148 204 Residential mortgages 53 12 135 200 54 16 246 316 Home equity loans 23 7 73 103 32 12 104 148 Home equity lines of credit 57 20 195 272 60 20 205 285 Home equity loans serviced by others 14 5 17 36 14 6 20 40 Home equity lines of credit serviced by others 3 2 31 36 10 6 29 45 Automobile 172 38 42 252 127 32 35 194 Student 24 13 43 80 19 11 41 71 Credit cards 12 9 16 37 11 9 16 36 Other retail 8 4 4 16 8 4 5 17 Total retail 366 110 556 1,032 335 116 701 1,152 Total $404 $116 $945 $1,465 $383 $124 $849 $1,356 Impaired loans include nonaccruing larger balance commercial loans (greater than $3 million carrying value) and commercial and retail TDRs (excluding loans held for sale). A summary of impaired loans by class is presented below: December 31, 2016 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $247 $55 $134 $431 $381 Commercial real estate 39 8 4 44 43 Total commercial 286 63 138 475 424 Residential mortgages 37 2 141 235 178 Home equity loans 51 3 94 191 145 Home equity lines of credit 23 1 173 240 196 Home equity loans serviced by others 41 4 19 70 60 Home equity lines of credit serviced by others 2 — 7 13 9 Automobile 4 — 15 25 19 Student 154 25 1 155 155 Credit cards 26 6 — 26 26 Other retail 10 2 1 13 11 Total retail 348 43 451 968 799 Total $634 $106 $589 $1,443 $1,223 December 31, 2015 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $92 $23 $58 $144 $150 Commercial real estate 56 13 12 70 68 Total commercial 148 36 70 214 218 Residential mortgages 121 16 320 608 441 Home equity loans 85 11 139 283 224 Home equity lines of credit 27 2 167 234 194 Home equity loans serviced by others 50 8 24 88 74 Home equity lines of credit serviced by others 3 1 7 14 10 Automobile 3 — 11 19 14 Student 163 48 2 165 165 Credit cards 28 11 — 28 28 Other retail 13 4 2 18 15 Total retail 493 101 672 1,457 1,165 Total $641 $137 $742 $1,671 $1,383 Additional information on impaired loans is presented below: Year Ended December 31, 2016 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $5 $295 $4 $135 $9 $198 Commercial real estate — 53 1 44 2 98 Leases — 3 — — — — Total commercial 5 351 5 179 11 296 Residential mortgages 4 161 15 415 14 429 Home equity loans 7 144 9 222 8 246 Home equity lines of credit 6 178 4 173 4 149 Home equity loans serviced by others 3 60 4 75 5 91 Home equity lines of credit serviced by others — 9 — 9 — 11 Automobile — 14 — 11 — 7 Student 7 150 7 157 8 153 Credit cards 2 23 2 26 2 31 Other retail 1 12 1 16 1 21 Total retail 30 751 42 1,104 42 1,138 Total $35 $1,102 $47 $1,283 $53 $1,434 Troubled Debt Restructurings In situations where, for economic or legal reasons related to the borrower’s financial difficulties, the Company grants a concession for other than an insignificant time period to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs typically result from the Company’s loss mitigation efforts and are undertaken in order to improve the likelihood of recovery and continuity of the relationship. The Company’s loan modifications are handled on a case-by-case basis and are negotiated to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. Concessions granted in TDRs for all classes of loans may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forgiveness, or capitalizing past due amounts. A rate increase can be a concession if the increased rate is lower than a market rate for debt with risk similar to that of the restructured loan. TDRs for commercial loans and leases may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases, a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases, interest income throughout the term of the loan may increase if, for example, the loan is extended or the interest rate is increased as a result of the restructuring. Because TDRs are impaired loans, the Company measures impairment by comparing the present value of expected future cash flows, or when appropriate, the fair value of collateral less costs to sell, to the loan’s recorded investment. Any excess of recorded investment over the present value of expected future cash flows or collateral value is included in the ALLL. Any portion of the loan’s recorded investment the Company does not expect to collect as a result of the modification is charged off at the time of modification. For Retail TDR accounts where the expected value of cash flows is utilized, any recorded investment in excess of the present value of expected cash flows is recognized by creating or increasing the ALLL. For Retail TDR accounts assessed based on the fair value of collateral, any portion of the loan’s recorded investment in excess of the collateral value is charged off at the time of modification or at the time of subsequent and regularly recurring valuations. Commercial TDRs were $120 million and $155 million on December 31, 2016 and 2015 , respectively. Retail TDRs totaled $799 million and $1.2 billion on December 31, 2016 and 2015 , respectively, down primarily due to the previously mentioned TDR sale. Unfunded commitments tied to TDRs were $42 million and $15 million on December 31, 2016 and 2015 , respectively. The table below summarizes how loans were modified during the year ended December 31, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to December 31, 2016 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 12 $1 $1 81 $20 $21 Commercial real estate 1 — — 1 5 5 Total commercial 13 1 1 82 25 26 Residential mortgages 71 10 10 60 10 10 Home equity loans 97 6 6 39 4 5 Home equity lines of credit 49 4 4 121 13 12 Home equity loans serviced by others 18 1 1 — — — Home equity lines of credit serviced by others 8 — — 5 1 1 Automobile 138 3 3 41 1 1 Student — — — — — — Credit cards 2,187 12 12 — — — Other retail 4 — — — — — Total retail 2,572 36 36 266 29 29 Total 2,585 $37 $37 348 $54 $55 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 14 $48 $48 $3 $— Commercial real estate — — — — — Total commercial 14 48 48 3 — Residential mortgages 247 26 26 (1 ) — Home equity loans 279 18 17 (1 ) — Home equity lines of credit 304 23 22 — 1 Home equity loans serviced by others 60 2 2 — — Home equity lines of credit serviced by others 24 1 1 — — Automobile 1,081 20 18 — 3 Student 479 12 12 4 — Credit cards — — — 3 — Other retail 13 — — — — Total retail 2,487 102 98 5 4 Total 2,501 $150 $146 $8 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The table below summarizes how loans were modified during the year ended December 31, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to December 31, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $19 $19 160 $22 $22 Commercial real estate 1 — — 1 — — Total commercial 26 19 19 161 22 22 Residential mortgages 153 31 31 40 7 6 Home equity loans 96 5 5 191 35 35 Home equity lines of credit 4 1 1 23 2 2 Home equity loans serviced by others 29 2 2 — — — Home equity lines of credit serviced by others 2 — — 1 — — Automobile 108 2 2 5 — — Student — — — — — — Credit cards 2,413 13 13 — — — Other retail 3 — — — — — Total retail 2,808 54 54 260 44 43 Total 2,834 $73 $73 421 $66 $65 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 16 $34 $34 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 17 38 38 (1 ) 1 Residential mortgages 275 33 33 (1 ) — Home equity loans 448 28 28 — 1 Home equity lines of credit 320 21 19 — 2 Home equity loans serviced by others 124 6 5 — 1 Home equity lines of credit serviced by others 41 3 2 — — Automobile 812 14 12 — 2 Student 1,204 22 22 4 — Credit cards — — — 2 — Other retail 20 — — — — Total retail 3,244 127 121 5 6 Total 3,261 $165 $159 $4 $7 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The table below summarizes how loans were modified during the year ended December 31, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to December 31, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $8 $7 131 $21 $22 Commercial real estate 9 1 2 15 3 2 Total commercial 34 9 9 146 24 24 Residential mortgages 126 17 17 40 6 5 Home equity loans 125 8 9 85 5 6 Home equity lines of credit 7 — — 276 17 16 Home equity loans serviced by others 42 2 2 — — — Home equity lines of credit serviced by others 4 — — 1 — — Automobile 75 1 1 18 — — Student — — — — — — Credit cards 2,165 12 12 — — — Other retail 3 — — — — — Total retail 2,547 40 41 420 28 27 Total 2,581 $49 $50 566 $52 $51 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 27 $52 $74 $3 $— Commercial real estate 1 7 7 — 3 Total commercial 28 59 81 3 3 Residential mortgages 393 47 46 (4 ) 1 Home equity loans 1,046 63 62 (1 ) 2 Home equity lines of credit 356 25 21 — 5 Home equity loans serviced by others 138 5 5 (1 ) — Home equity lines of credit serviced by others 39 2 2 — — Automobile 1,039 17 13 — 5 Student 1,675 31 31 5 — Credit cards — — — — — Other retail 57 2 1 (1 ) — Total retail 4,743 192 181 (2 ) 13 Total 4,771 $251 $262 $1 $16 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post-modification balances being higher than pre-modification. The table below summarizes TDRs that defaulted within 12 months of their modification date during 2016 , 2015 and 2014 . For purposes of this table, a payment default refers to a loan that becomes 90 days or more past due under the modified terms. Amounts represent the loan’s recorded investment at the time of payment default. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 2016 and 2015 . If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell. The amount written off is charged to the ALLL. Year Ended December 31, 2016 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 22 $13 23 $2 37 $12 Commercial real estate 1 — — — 3 1 Total commercial 23 13 23 2 40 13 Residential mortgages 187 24 168 21 301 35 Home equity loans 50 3 184 13 329 24 Home equity lines of credit 155 13 131 7 229 12 Home equity loans serviced by others 37 1 43 1 60 2 Home equity lines of credit serviced by others 17 — 22 1 20 — Automobile 110 2 87 1 112 1 Student 59 1 171 3 355 7 Credit cards 433 3 455 3 579 3 Other retail 3 — 4 — 12 — Total retail 1,051 47 1,265 50 1,997 84 Total 1,074 $60 1,288 $52 2,037 $97 Concentrations of Credit Risk Most of the Company’s lending activity is with customers located in the New England, Mid-Atlantic and Midwest regions. Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities. As of December 31, 2016 and 2015 , the Company had a significant amount of loans collateralized by residential and commercial real estate. There were no significant concentration risks within the commercial loan or retail loan portfolios. Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements. The Company’s policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction. Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values. These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interest-only and negative amortization residential mortgages, and loans with low introductory rates. Certain loans have more than one of these characteristics. The following tables present balances of loans with these characteristics: December 31, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student Total High loan-to-value $566 $550 $476 $— $— $1,592 Interest only/negative amortization 1,582 — — — 1 1,583 Low introductory rate — — — 112 — 112 Multiple characteristics and other 3 — — — — 3 Total $2,151 $550 $476 $112 $1 $3,290 December 31, 2015 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student Total High loan-to-value $649 $1,038 $785 $— $— $2,472 Interest only/negative amortization 1,110 — — — — 1,110 Low introductory rate — 3 — 96 — 99 Multiple characteristics and other 14 — — — — 14 Total $1,773 $1,041 $785 $96 $— $3,695 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES The Company makes equity investments in various entities that are considered VIEs, as defined by GAAP. These investments primarily include ownership interests in limited partnerships that sponsor affordable housing projects and ownership interests in limited liability companies that sponsor renewable energy projects. The Company’s maximum exposure to loss as a result of its involvement with these entities is limited to the balance sheet carrying amounts of its equity investments. A summary of these investments is presented below: December 31, (in millions) 2016 2015 LIHTC investment included in other assets $793 $598 LIHTC unfunded commitments included in other liabilities 428 365 Renewable energy investments included in other assets 220 118 Low Income Housing Tax Credit Partnerships The purpose of the Company’s equity investments is to assist in achieving goals of the Community Reinvestment Act and to earn an adequate return of capital. LIHTC partnerships are managed by unrelated general partners that have the power to direct the activities which most significantly affect the performance of the partnerships. The Company is therefore not the primary beneficiary of any LIHTC partnerships. Accordingly, the Company does not consolidate these VIEs and accounts for these investments in other assets on the Consolidated Balance Sheets. Effective January 1, 2015, the Company adopted ASU 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” and applies the proportional amortization method to account for its LIHTC investments. The retrospective adoption of ASU 2014-01 would have had an immaterial effect on the Company’s financial statements; therefore, the Company applied ASU 2014-01 prospectively. Under the proportional amortization method, the Company applies a practical expedient and amortizes the initial cost of the investment in proportion to the tax credits received in the current period as compared to the total tax credits expected to be received over the life of the investment. The amortization and tax benefits are included as a component of income tax expense. The Company reports its equity share of LIHTC partnership gains and losses as an adjustment to noninterest income. The Company reports its commitments to make future investments in other liabilities on the Consolidated Balance Sheets. The tax credits received are reported as a reduction of income tax expense (or increase to income tax benefit) related to these transactions. The following table presents the other information related to the Company’s affordable housing tax credit investments for the years ended December 31, 2016, and 2015. Year Ended December 31, (in millions) 2016 2015 Tax credits included in the provision for income taxes $59 $45 Amortization expense included in the provision for income taxes 59 45 Other tax benefits included in the provision for income taxes 21 17 No LIHTC investment impairment losses were recognized during the years ended December 31, 2016 and 2015 . Renewable Energy Entities The Company’s investments in renewable energy entities provide benefits from a return generated by government incentives plus other tax attributes that are associated with tax ownership (e.g., tax depreciation). As a tax equity investor, the Company does not have the power to direct the activities which most significantly affect the performance of these entities and therefore is not the primary beneficiary of any renewable energy entities. Accordingly, the Company does not consolidate these VIEs. |
PREMISES, EQUIPMENT, AND SOFTWA
PREMISES, EQUIPMENT, AND SOFTWARE | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT, AND SOFTWARE | PREMISES, EQUIPMENT AND SOFTWARE A summary of the carrying value of premises and equipment is presented below: December 31, (dollars in millions) Useful Lives 2016 2015 Land and land improvements 15 years $47 $25 Buildings and leasehold improvements 7-40 years 684 634 Furniture, fixtures and equipment 5-15 years 1,714 1,667 Total premises and equipment, gross 2,445 2,326 Accumulated depreciation (1,844 ) (1,731 ) Total premises and equipment, net $601 $595 The table above includes capital leases with book values of $45 million and $47 million and related accumulated depreciation of $30 million and $25 million as of December 31, 2016 and 2015 , respectively. Depreciation charged to noninterest expense was $130 million , $116 million , and $117 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, and is presented in the Consolidated Statements of Operations in both occupancy and equipment expense. The Company had capitalized software assets of $1.5 billion and $1.3 billion and related accumulated amortization of $691 million and $532 million as of December 31, 2016 and 2015 , respectively. Amortization expense was $170 million , $146 million , and $145 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Capitalized software assets are reported as a component of other assets in the Consolidated Balance Sheets. The estimated future amortization expense for capitalized software assets is presented below: Year (in millions) 2017 $160 2018 139 2019 108 2020 78 2021 41 Thereafter 114 Total (1) $640 (1) Excluded from this balance is $138 million of in-process software at December 31, 2016 . |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company is committed under long-term leases for the rental of premises and equipment. These leases have varying renewal options and in certain instances, require the payment of insurance, real estate taxes and other operating expenses. At December 31, 2016 , the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are presented below for the years ended December 31: (in millions) Operating Leases Capital Leases 2017 $182 $7 2018 157 3 2019 122 2 2020 102 2 2021 82 2 Thereafter 164 9 Total minimum lease payments $809 $25 Amounts representing interest N/A (9 ) Present value of net minimum lease payments N/A $16 Occupancy and equipment expense included rental expense for non-cancelable operating leases and capital leases of $208 million , $205 million , and $214 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Goodwill represents the excess of fair value of purchased assets over the purchase price. Since 1988, the Company has completed more than 25 acquisitions of banks or assets of banks. There were no changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015 as presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2015 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2016 $2,136 $4,740 $6,876 Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at December 31, 2016 and 2015 . The accumulated impairment losses related to the Commercial Banking reporting unit totaled $50 million at December 31, 2016 and 2015 . The Company performs an annual test for impairment of goodwill at a level of reporting referred to as a reporting unit. The Company has identified and allocated goodwill to two reporting units — Consumer Banking and Commercial Banking — based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. No impairment was recorded for the years ended December 31, 2016 , 2015 and 2014 . The valuation of goodwill is dependent on forward-looking expectations related to the performance of the U.S. economy and the associated financial performance of the Company. |
MORTGAGE BANKING
MORTGAGE BANKING | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING | MORTGAGE BANKING In its mortgage banking business, the Company sells residential mortgages to government-sponsored entities and other parties, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a standard representation or warranty violation such as noncompliance with eligibility requirements, customer fraud, or servicing violations. This primarily occurs during a loan file review. The Company received $2.7 billion , $2.7 billion , and $1.6 billion of proceeds from the sale of residential mortgages for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company recognized gains on sales of residential mortgages held for sale in mortgage banking fees in the Consolidated Statements of Operations of $69 million , $51 million , and $36 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Pursuant to the standard representations and warranties obligations discussed above, the Company repurchased residential mortgages totaling $6 million , $10 million , and $25 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Mortgage servicing fees, a component of mortgage banking fees, were $51 million , $55 million , and $59 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company recorded valuation recoveries of $4 million , $9 million , and $5 million for its MSRs for the years ended December 31, 2016 , 2015 and 2014 , respectively. MSRs are presented in other assets on the Consolidated Balance Sheets. Changes related to MSRs are presented below: As of and for the Year Ended December 31, (in millions) 2016 2015 MSRs: Balance as of January 1 $173 $184 Amount capitalized 29 26 Amortization (35 ) (37 ) Carrying amount before valuation allowance 167 173 Valuation allowance for servicing assets: Balance as of January 1 9 18 Valuation recovery (4 ) (9 ) Balance at end of period 5 9 Net carrying value of MSRs $162 $164 The fair value of MSRs is estimated using a valuation model that calculates the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, contractual servicing fee income, servicing costs, default rates, ancillary income, and other economic factors, which are determined based on current market conditions. The valuation model uses a static discounted cash flow methodology incorporating current market interest rates. A static model does not attempt to forecast or predict the future direction of interest rates; rather it estimates the amount and timing of future servicing cash flows using current market interest rates. The current mortgage interest rate influences the expected prepayment rate and therefore, the length of the cash flows associated with the servicing asset, while the discount rate determines the present value of those cash flows. Expected mortgage loan prepayment assumptions are obtained using the QRM Multi Component prepayment model. The Company periodically obtains third-party valuations of its MSRs to assess the reasonableness of the fair value calculated by the valuation model. The key economic assumptions used to estimate the value of MSRs are presented in the following table: December 31, 2016 2015 (dollars in millions) Weighted Average Range Weighted Average Range Fair value $182 Min Max $178 Min Max Weighted average life (in years) 5.7 2.6 7.3 5.4 2.8 6.2 Weighted average constant prepayment rate 10.8% 8.8% 22.3% 11.6% 10.7% 22.2 % Weighted average discount rate 9.7% 9.1% 12.1% 9.7% 9.1% 12.1 % The key economic assumptions used in estimating the fair value of MSRs capitalized during the period are presented below: Year Ended December 31, 2016 2015 2014 Weighted average life (in years) 6.1 5.9 5.8 Weighted average constant prepayment rate 11.0% 10.7% 11.7% Weighted average discount rate 9.7% 9.7% 10.3% The sensitivity analysis below presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment rates, could result in changes in the discount rates), which may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. December 31, (in millions) 2016 2015 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $9 $5 Decline in fair value from a 100 basis point decrease in interest rates $25 $11 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The major components of deposits are presented below: December 31, (in millions) 2016 2015 Demand $28,472 $27,649 Checking with interest 20,714 17,921 Regular savings 8,964 8,218 Money market accounts 38,176 36,727 Term deposits 13,478 12,024 Total deposits $109,804 $102,539 The maturity distribution of term deposits as of December 31, 2016 is presented below: Year (in millions) 2017 $11,402 2018 1,428 2019 214 2020 325 2021 103 2022 and thereafter 6 Total $13,478 Of these deposits, the amount of term deposits with a denomination of $100,000 or more was $8.2 billion at December 31, 2016 . The remaining maturities of these deposits are presented below: (in millions) Three months or less $3,531 After three months through six months 1,152 After six months through twelve months 2,671 After twelve months 850 Total term deposits $8,204 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS A summary of the Company’s short-term borrowed funds is presented below: December 31, (in millions) 2016 2015 Federal funds purchased $533 $— Securities sold under agreements to repurchase 615 802 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,211 2,630 Total short-term borrowed funds $4,359 $3,432 Key data related to short-term borrowed funds is presented in the following table: As of and for the Year Ended December 31, (dollars in millions) 2016 2015 2014 Weighted-average interest rate at year-end: (1) Federal funds purchased and securities sold under agreements to repurchase 0.26 % 0.15 % 0.14 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.94 0.44 0.26 Maximum amount outstanding at month-end during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $1,522 $5,375 $7,022 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,461 7,004 7,702 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $947 $3,364 $5,699 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,207 5,865 5,640 Weighted-average interest rate during the year: (1) Federal funds purchased and securities sold under agreements to repurchase 0.09 % 0.22 % 0.12 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.64 0.28 0.25 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements. A summary of the Company’s long-term borrowed funds is presented below: December 31, (in millions) 2016 2015 Citizens Financial Group, Inc.: 4.150% fixed rate subordinated debt, due 2022 (1) $347 $350 5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023 333 333 3.750% fixed rate subordinated debt, due 2024 (2) 250 250 4.023% fixed rate subordinated debt, due 2024 (3) 42 331 4.082% fixed rate subordinated debt, due 2025 (4) — 331 4.350% fixed rate subordinated debt, due 2025 (5) 249 250 4.300% fixed rate subordinated debt, due 2025 (6) 749 750 2.375% fixed rate senior unsecured debt, due 2021 (7) 348 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (8) (9) — 749 2.300% senior unsecured notes, due 2018 (8) (10) 745 747 2.450% senior unsecured notes, due 2019 (8) (11) 747 752 2.500% senior unsecured notes, due 2019 (8)(12) 741 — 2.550% senior unsecured notes, due 2021 (8)(13) 965 — Federal Home Loan advances due through 2033 7,264 5,018 Other 10 25 Total long-term borrowed funds $12,790 $9,886 (1) These balances are composed of: principal balances of $350 million at December 31, 2016 and 2015 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at December 31, 2016 . (2) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (3) These balances are composed of: principal balance of $42 million and $333 million at December 31, 2016 and 2015 , respectively, as well as the impact from interest rate swaps of zero and ($2) million at December 31, 2016 and 2015 , respectively. See Note 16 “Derivatives” for further information. In addition, the Company repurchased $125 million and $166 million of these securities on March 7, 2016 and July 28, 2016, respectively. (4) This subordinated debt was retired in 2016. At December 31, 2015 , this balance was composed of a principal balance of $334 million ; impact from interest rate swaps of ($3) million at December 31, 2015 . See Note 16 “Derivatives” for further information. On July 28, 2016, the Company repurchased $334 million of these securities. (5) These balances are composed of: principal balances of $250 million at December 31, 2016 and 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016 . (6) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016 . (7) This balance is composed of: principal balance of $350 million at December 31, 2016 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . (8) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (9) This balance was reclassified to short-term borrowed funds at December 31, 2016 . At December 31, 2015 the balance was composed of: principal balances of $750 million ; impact from interest rate swaps of ($1) million . See Note 16 “Derivatives” for further information. (10) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 ; impact from interest rate swaps of ($3) million at December 31, 2016 and 2015 ; and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (11) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 ; impact from interest rate swaps of zero and $2 million at December 31, 2016 and 2015 , respectively; and ($3) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (12) This balance is composed of: principal balance of $750 million at December 31, 2016 ; impact from interest rate swaps of ($7) million and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (13) This balance is composed of: principal balance of $1.0 billion at December 31, 2016 ; impact from interest rate swaps of ($30) million and ($5) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. On March 14, 2016, the Company issued $750 million of CBNA 2.500% fixed-rate senior notes due in 2019, and on May 13, 2016, the Company also issued $1.0 billion of CBNA 2.550% fixed-rate senior notes due in 2021. On July 28, 2016, the Company issued $350 million of 2.375% fixed-rate senior notes due 2021, and used the net proceeds and available cash to repurchase $500 million of its subordinated debt. Specifically, the Company retired $334 million of 4.082% subordinated notes due 2025 and $166 million of 4.023% subordinated notes due 2024. On March 7, 2016, the Company repurchased $125 million of its 4.023% subordinated notes due 2024. Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $13.4 billion and $11.3 billion at December 31, 2016 and 2015 , respectively. The Company’s available FHLB borrowing capacity was $2.8 billion and $4.1 billion at December 31, 2016 and 2015 , respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, such as investment securities and loans, is pledged to provide borrowing capacity at the FRB. At December 31, 2016 , the Company’s unused secured borrowing capacity was approximately $33.6 billion , which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity. A summary of maturities for the Company’s long-term borrowed funds at December 31, 2016 is presented below: (in millions) CFG Parent Company Banking Subsidiaries Consolidated Year 2017 or on demand $— $— $— 2018 — 8,000 8,000 2019 — 1,489 1,489 2020 — 2 2 2021 348 970 1,318 2022 and thereafter 1,970 11 1,981 Total $2,318 $10,472 $12,790 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock The Company had 100,000,000 shares authorized and 250,000 shares outstanding of $25.00 par value undesignated preferred stock as of December 31, 2016 and 2015. The Board of Directors or any authorized committee thereof are authorized to provide for the issuance of these shares in one or more series, and by filing a certificate pursuant to applicable law of the State of Delaware, to establish or change from time to time the number of shares of each such series, and to fix the designations, powers, including voting powers, full or limited, or no voting powers, preferences and the relative, participating, optional or other special rights of the shares of each series and any qualifications, limitations and restrictions thereof. On April 6, 2015, the Company issued $250 million , or 250,000 shares, of 5.500% fixed-to-floating rate non-cumulative perpetual Series A Preferred Stock, par value of $25.00 per share with a liquidation preference $1,000 per share (the “Series A Preferred Stock”) to the initial purchasers in reliance on the exemption from registration provided by Section (4)(a)(2) of the Securities Act of 1933, as amended, for resale pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. As a result of this issuance, the Company received net proceeds of $247 million after underwriting discount. The Series A Preferred Stock has no stated maturity and is not subject to any sinking fund or other obligation of the Company. Holders of the Series A Preferred Stock will be entitled to receive dividend payments when, and if, declared by the Company’s Board of Directors or a duly authorized committee thereof. Any such dividends will be payable on a semi-annual basis at an annual rate equal to 5.500% . On April 6, 2020, the Series A Preferred Stock converts to a quarterly floating-rate basis equal to three-month U.S. dollar LIBOR on the related dividend determination date plus 3.960% . Citizens may redeem the Series A Preferred Stock, in whole or in part on any dividend payment date, on or after April 6, 2020 or, in whole but not in part, at any time within 90 days following a regulatory capital treatment event at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. Citizens may not redeem shares of the Series A Preferred Stock without obtaining the prior approval of the FRBG if then required under applicable capital guidelines. Shares of the Series A Preferred Stock have priority over the Company's common stock with regard to the payment of dividends and, as such, the Company may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its common stock unless dividends for the latest completed dividend period for the Series A Preferred Stock have been declared and paid (or declared and sufficient funds have been set aside to make payment). Except in certain limited circumstances, the Series A Preferred Stock does not have any voting rights. Treasury Stock During the year ended December 31, 2016 , as part of its 2016 CCAR plan, the Company paid $430 million to repurchase 17,332,684 common shares at an average price of $24.81 ; $405 million was recorded in treasury stock and $25 million was recorded in additional paid in capital. The repurchased shares are held in treasury stock. During the year ended December 31, 2016, the Company recorded no shares of treasury stock associated with share-based compensation plan activity. During the year ended December 31, 2015 , the Company recorded 876,087 shares of treasury stock associated with share-based compensation plan activity for a total cost of $22 million at a weighted-average price per share of $25.50 . On August 3, 2015, the Company used the net proceeds of its public offering of $250 million aggregate principal amount 4.350% Subordinated Notes due 2025 issued on July 31, 2015, to repurchase 9,615,384 shares of its outstanding common stock at a public offering price of $26.00 per share. The repurchased shares are held in treasury stock. On April 7, 2015, the Company used the net proceeds of the Series A Preferred Stock offering to repurchase 10,473,397 shares of its common stock at a total cost of approximately $250 million and a price per share of $23.87 , which equaled the volume-weighted average price of the Company’s common stock for all traded volume over the five trading days preceding the repurchase agreement date of April 1, 2015. The repurchased shares are held in treasury stock. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Pension Plans The Company maintains a non-contributory pension plan (the “Plan” or “qualified plan”) that was closed to new hires and re-hires effective January 1, 2009, and frozen to all participants effective December 31, 2012. Benefits under the Plan are based on employees’ years of service and highest five -year average of eligible compensation. The Plan is funded on a current basis, in compliance with the requirements of ERISA. The Company also provides an unfunded, non-qualified supplemental retirement plan (the “non-qualified plan”), which was closed and frozen effective December 31, 2012. The qualified plan’s allocation by asset category is presented below: Target Asset Allocation Actual Asset Allocation Asset Category 2016 2016 2015 Equity securities 45-55% 49.6 % 47.1 % Debt securities 40-50% 45.2 % 47.3 % Other 0-10% 5.2 % 5.6 % Total 100.0 % 100.0 % The written Pension Plan Investment Policy, set forth by the CFG Retirement Committee, formulates investment principles and guidelines that are appropriate for the needs and objectives of the Plan, and defines the management, structure, and monitoring procedures adopted for the ongoing operation of the aggregate funds of the Plan. Stated goals and objectives are: • Total return, consistent with prudent investment management, is the primary goal of the Plan. The nominal rate of return objective should meet or exceed the actuarial rate return target. In addition, assets of the Plan shall be invested to ensure that principal is preserved and enhanced over time; • The total return for the overall Plan shall meet or exceed the Plan’s Policy Index; • Total portfolio risk exposure should generally rank in the mid-range of comparable funds. Risk-adjusted returns are expected to consistently rank in the top-half of comparable funds; and • Investment managers shall exceed the return of the designated benchmark index and rank in the top-half of the appropriate asset class and style universe. The CFG Retirement Committee reviews, at least annually, the assets and net cash flow of the Plan, discusses the current economic outlook and the Plan’s investment strategy with the investment managers, reviews the current asset mix and its compliance with the Policy, and receives and considers statistics on the investment performance of the Plan. The equity investment mandates follows a global equity approach. Investments are made in broadly diversified portfolios that contain investments in U.S. and non-U.S. developed and developing economies. The fixed income investment mandates are US investment grade mandates and follow a long duration investment approach. Investment in high-yield bonds are not allowed unless an investment grade bond is downgraded to a non-investment grade category. The assets of the qualified plan may be invested in any or all of the following asset categories: • Equity-oriented investments: ◦ domestic and foreign common and preferred stocks, and related rights, warrants, convertible debentures, and other common share equivalents • Fixed income-oriented investments: ◦ domestic and foreign bonds, debentures and notes ◦ mortgages ◦ mortgage-backed securities ◦ asset-backed securities ◦ money market securities or cash ◦ financial futures and options on financial futures ◦ forward contracts In addition, derivatives may be employed under the guidelines established for individual managers in order to manage risk exposures and/or to increase the efficiency of strategies. The extent to which derivatives are utilized will be specified in the investment guidelines for each manager. The Plan will not be exposed to losses through derivatives that exceed the capital invested. In selecting the expected long-term rate of return on assets, the Company considers the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of this Plan. This includes considering the trust’s asset allocation and the expected returns likely to be earned over the life of the Plan. This basis is consistent with the prior year. Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are presented below: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2016 2015 2016 2015 Fair value of plan assets as of January 1 $917 $923 $— $— Actual return (loss) on plan assets 82 (41 ) — — Employer contributions 75 100 8 9 Benefits and administrative expenses paid (59 ) (65 ) (8 ) (9 ) Fair value of plan assets as of December 31 1,015 917 — — Projected benefit obligation 1,024 977 105 103 Pension obligation ($9 ) ($60 ) ($105 ) ($103 ) Accumulated benefit obligation $1,024 $977 $105 $103 We recognized net actuarial losses (for the qualified and non-qualified plans) in AOCI resulting in an ending balance of $634 million and $599 million at December 31, 2016 and 2015, respectively. Approximately $18 million of net actuarial loss recorded in AOCI as of December 31, 2016 is expected to be recognized as a component of net periodic benefit costs during 2017 . Other changes in plan assets and benefit obligations recognized in OCI are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Net periodic pension income ($1 ) ($7 ) ($8 ) Net actuarial loss 54 7 237 Amortization of prior service credit 1 — — Amortization of net actuarial loss (16 ) (15 ) (10 ) Divestiture — — (35 ) Total recognized in other comprehensive income (loss) 39 (8 ) 192 Total recognized in net periodic pension cost and other comprehensive income (loss) $38 ($15 ) $184 The components of net periodic pension (income) cost for the Company's qualified and non-qualified plans are presented below: Year Ended December 31, Qualified Plan Non-Qualified Plan Total (in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $3 $3 $3 $— $— $— $3 $3 $3 Interest cost 44 44 47 4 4 5 48 48 52 Expected return on plan assets (68 ) (74 ) (73 ) — — — (68 ) (74 ) (73 ) Amortization of actuarial loss 14 13 9 2 2 1 16 15 10 Net periodic pension (income) cost ($7 ) ($14 ) ($14 ) $6 $6 $6 ($1 ) ($8 ) ($8 ) Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are presented below: As of and for the Year Ended December 31, 2016 2015 2014 Assumptions for benefit obligations Discount rate-qualified plan 4.190 % 4.640 % 4.125 % Discount rate-non-qualified plan 4.050 % 4.540 % 3.875 % Expected long-term rate of return on plan assets 7.500 % 7.500 % 7.500 % Assumptions for net periodic pension cost Discount rate-qualified plan 4.640 % 4.125 % 5.00/4.25% (1) Discount rate-non-qualified plan 4.540 % 3.875 % 4.75/4.00% (2) Expected long-term rate of return on plan assets 7.500 % 7.500 % 7.500 % (1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. (2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. On September 7, 2016, the Company made a contribution of $75 million to the qualified plan. The Company expects to contribute $8 million to the non-qualified plan in 2017. No contribution to the qualified plan is expected in 2017. Expected future benefit payments for the qualified and non-qualified plans are presented below: (in millions) Expected benefit payments by fiscal year ended December 31, 2017 $62 December 31, 2018 63 December 31, 2019 63 December 31, 2020 64 December 31, 2021 66 December 31, 2022 - 2026 339 Fair Value Measurements The following valuation techniques are used to measure the qualified pension plan assets at fair value: Cash and money market funds: Cash and money market funds represent instruments that generally mature in one year or less and are valued at cost, which approximates fair value. Cash and money market funds are classified as Level 2. U.S. government obligations, municipal obligations, corporate bonds, asset-backed securities and mortgage-backed securities-Managed portfolio: U.S. government obligations, municipal obligations, corporate bonds, asset-backed securities and mortgage-backed securities are valued at the quoted market prices determined in the active markets in which the securities are traded. If quoted market prices are not available, the fair value for the security is estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. These investments are classified as Level 2, because they currently trade in active markets for similar securities and the inputs to the valuations are observable. The following table presents qualified pension plan assets measured at fair value within the fair value hierarchy: Fair Value Measurements as of December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $— $— $— $— Managed portfolio assets: Cash and money market funds 2 — 2 — U.S. government obligations 10 — 10 — Municipal obligations 2 — 2 — Corporate bonds 89 — 89 — Asset-backed securities 1 — 1 — Total assets in the fair value hierarchy 104 — 104 — Investments measured at net asset value (1) 918 Assets at fair value at measurement date of December 31, 2016 $1,022 $— $104 $— (1) Certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The following table presents qualified pension plan assets and liabilities measured at fair value within the fair value hierarchy: Fair Value Measurements as of December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $4 $— $4 $— Mutual funds International equity funds 47 47 — — Managed portfolio assets Cash and money market funds 4 — 4 — U.S. government obligations 35 — 35 — Municipal obligations 1 — 1 — Corporate bonds 84 — 84 — Asset-backed securities 5 — 5 — Mortgage-backed securities 1 — 1 — Derivative assets - interest rate forwards 1 — 1 — Total assets in the fair value hierarchy 182 47 135 — Investments measured at net asset value 767 Assets at fair value at measurement date of December 31, 2015 $949 $47 $135 $— Liabilities: Managed portfolio liabilities: Derivative liabilities - interest rate forwards $1 $— $1 $— Derivative liabilities - credit default swaps 1 — 1 — Total liabilities measured at fair value $2 $— $2 $— There were no transfers among Levels 1, 2 or 3 during the years ended December 31, 2016 , and 2015 . The fair values of participation units held in the common and collective funds and limited partnerships are based on NAV. The following table presents the unfunded commitments, redemption frequency and redemption notice period for Plan investments that utilize net asset value to determine fair value: Fair Value Estimated Using Net Asset Value per Share December 31, Unfunded Redemption Redemption Redemption Investment (dollars in millions) 2016 2015 Commitment Frequency Restrictions Notice Period Liquid Cash Fund $9 $— $— Daily None Same day before 5:30pm ET Equity Mutual Fund (1) 40 9 — Daily None 7 days Common and Collective Funds: Global equities funds 386 220 — Daily None 3 days Balanced funds 193 196 — Daily None 2 days Fixed income fund 133 120 — Daily None 3 days Managed Portfolio - Fixed Income Mutual Fund (2) 30 20 — Daily None 1 days Limited Partnerships: International equity fund 117 107 — Monthly None 3 days International equity — 95 — Daily None 10 days Offshore feeder fund 10 — — Monthly None 14 days Total $918 $767 $— (1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principal investment objective is to generate positive total return. (2) The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. Postretirement Benefits The Company provides health care insurance benefits to eligible retirees and their spouses through age 65, at which time Medicare becomes the primary coverage provider. Employees enrolled in medical coverage immediately prior to retirement and meeting eligibility requirements can elect retiree medical coverage. Coverage must be elected at the time of retirement and cannot be elected at a future date. Spouses may be covered only if the spouse is covered at the time of the employee’s retirement. The Company reviews coverage on an annual basis and reserves the right to modify or cancel coverage at any renewal date. Effective July 1, 2014, the Company utilizes a private health care exchange to provide medical and dental benefits to current and future Medicare-eligible plan participants. The Company provides a fixed subsidy to a small, closed group of retirees and spouses based on the subsidy levels prior to July 1, 2014; retirees and spouses pay the cost of benefits in excess of the fixed subsidy. Expected future benefit payments for the postretirement benefit plan are presented below: (in millions) Expected benefit payments by fiscal year ended December 31, 2017 $2 December 31, 2018 2 December 31, 2019 1 December 31, 2020 1 December 31, 2021 1 December 31, 2022 - 2026 6 The Company expects to contribute $2 million to the plan during 2017 . The discount rate assumed in determining the actuarial present value of benefit obligations was 3.53% as of December 31, 2016 compared with 3.93% as of December 31, 2015 . For measurement purposes, the assumed annual rate of increase in the per capita cost of covered health care benefits was 7% in December 31, 2016 and 2015 , and is expected to decrease gradually to 5.0% by 2022. Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: For the Year Ended December 31, (dollars in millions) 2016 2015 Discount rate 3.930 % 3.500 % Rate of compensation increase N/A N/A Ultimate health care cost trend rate 5.000 % 5.000 % Effect on accumulated postretirement benefit obligation: One percent increase in assumed health care cost trend $— $— One percent decrease in assumed health care cost trend — — 401(k) Plan The Company sponsors a 401(k) plan under which employee tax-deferred/Roth after-tax contributions to the plan are matched by the Company after completion of one year of service. Effective January 1, 2013, contributions were matched at 100% up to an overall limitation of 5% on a pay period basis. Subsequently, effective January 1, 2015, 100% of matching contributions was reduced from 5% to 4% on a pay period basis. Substantially all employees will receive an additional 2% of earnings after completion of one year of service, subject to limits set by the Internal Revenue Service. Amounts contributed and expensed by the Company were $55 million in 2016 compared to $52 million in 2015 and $60 million in 2014 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Total income tax expense is presented below: Year Ended December 31, (in millions) 2016 2015 2014 Income tax expense $489 $423 $403 Tax effect of changes in OCI (168 ) (12 ) 154 Total comprehensive income tax expense $321 $411 $557 Components of income tax expense are presented below: (in millions) Current Deferred Total Year Ended December 31, 2016 U.S. federal $292 $159 $451 State and local 44 (6 ) 38 Total $336 $153 $489 Year Ended December 31, 2015 U.S. federal $162 $225 $387 State and local 12 24 36 Total $174 $249 $423 Year Ended December 31, 2014 U.S. federal $224 $145 $369 State and local 38 (4 ) 34 Total $262 $141 $403 The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2016 , 2015 and 2014 as presented below: Year Ended December 31, 2016 2015 2014 (dollars in millions) Amount Rate Amount Rate Amount Rate U.S. Federal income tax expense and tax rate $537 35.0 % $442 35.0 % $444 35.0 % Increase (decrease) resulting from: State and local income taxes (net of federal benefit) 38 2.5 27 2.1 22 1.7 Bank-owned life insurance (19 ) (1.2 ) (20 ) (1.6 ) (17 ) (1.3 ) Tax-exempt interest (19 ) (1.3 ) (17 ) (1.3 ) (15 ) (1.2 ) Tax advantaged investments (including related credits) (31 ) (2.0 ) (16 ) (1.2 ) (27 ) (2.1 ) Other tax credits (14 ) (0.9 ) — — — — Non-deductible expenses — — 8 0.6 — — Other (3 ) (0.2 ) (1 ) (0.1 ) (4 ) (0.3 ) Total income tax expense and tax rate $489 31.9 % $423 33.5 % $403 31.8 % The decrease in the effective tax rate from 2015 to 2016 is primarily attributable to the benefits of federal and state tax credits. The effective income tax rate for the year ended December 31, 2015 reflected the adoption of ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” The application of this guidance, which began on January 1, 2015, resulted in the reclassification of the amortization of these investments to income tax expense from noninterest income. See Note 6 “Variable Interest Entities,” for further information. The increase in the effective tax rate from 2014 to 2015 is primarily attributable to the Company’s adoption of ASU 2014-01. Additionally, the 2015 effective tax rate was affected by the impact of non-deductible permanent expense items incurred by the Company in 2015. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (in millions) 2016 2015 Deferred tax assets: Other comprehensive income $409 $241 Allowance for credit losses 471 465 State net operating loss carryforwards 75 137 Accrued expenses not currently deductible 129 135 Investment and other tax credit carryforwards 52 — Deferred income 22 40 Fair value adjustments 40 36 Other — 5 Total deferred tax assets 1,198 1,059 Valuation allowance (107 ) (123 ) Deferred tax assets, net of valuation allowance 1,091 936 Deferred tax liabilities: Leasing transactions 881 882 Amortization of intangibles 522 455 Depreciation 234 213 Pension and other employee compensation plans 103 69 MSRs 49 47 Other 16 — — Total deferred tax liabilities 1,805 1,666 Net deferred tax liability $714 $730 At December 31, 2016 , the Company had state tax net operating loss carryforwards of $1.4 billion . Limitations on the ability to realize these carryforwards are reflected in the associated valuation allowance. At December 31, 2016 , the Company had a valuation allowance of $107 million against various deferred tax assets related to state net operating losses and state tax credits, as it is management’s current assessment that it is more likely than not that the Company will not recognize a portion of the deferred tax asset related to these items. The valuation allowance decreased $16 million during the year ended December 31, 2016 . Effective with the fiscal year ended September 30, 1997, the reserve method for bad debts was no longer permitted for tax purposes. The repeal of the reserve method required the recapture of the reserve balance in excess of certain base year reserve amounts attributable to years ended prior to 1988. At December 31, 2016 , the Company’s base year loan loss reserves attributable to years ended prior to 1988, for which no deferred income taxes have been provided, was $557 million . This base year reserve may become taxable if certain distributions are made with respect to the stock of the Company or if the Company ceases to qualify as a bank for tax purposes. No actions are planned that would cause this reserve to become wholly or partially taxable. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by major tax authorities for years before 2013. A reconciliation of the beginning and ending amount of unrecognized tax benefits is presented below: December 31, (in millions) 2016 2015 2014 Balance at the beginning of the year $62 $72 $33 Gross decrease for tax positions related to prior years (19 ) (6 ) — Gross increase for tax positions related to prior years 1 — 60 Decreases for tax positions as a result of the lapse of the statutes of limitations (2 ) (3 ) (1 ) Decreases for tax positions related to settlements with taxing authorities — (1 ) (20 ) Balance at end of year $42 $62 $72 Included in the total amount of unrecognized tax benefits at December 31, 2016 , are potential benefits of $29 million that, if recognized, would impact the effective tax rate. The Company classifies interest and penalties related to unrecognized tax benefits as a component of income taxes. The Company accrued $8 million , less than $1 million , and $1 million of interest expense through December 31, 2016 , 2015 , and 2014 , respectively. The Company had approximately $22 million , $14 million , and $15 million accrued for the payment of interest at December 31, 2016 , 2015 , and 2014 , respectively. There were no amounts accrued for penalties as of December 31, 2016 , 2015 , and 2014 , and there were no penalties recognized during 2016 , 2015 , and 2014 . |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES In the normal course of business, the Company enters into a variety of derivative transactions in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates and foreign currency exchange rates. The Company does not use derivatives for speculative purposes. The Company’s derivative instruments are recognized on the Consolidated Balance Sheets at fair value. Information regarding the valuation methodology and inputs used to estimate the fair value of the Company’s derivative instruments is described in Note 19 “Fair Value Measurements.” The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: December 31, 2016 December 31, 2015 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $13,350 $52 $193 $16,750 $96 $50 Derivatives not designated as hedging instruments: Interest rate contracts 54,656 557 452 33,719 540 455 Foreign exchange contracts 8,039 134 126 8,366 163 156 Other contracts 1,498 16 7 981 8 5 Total derivatives not designated as hedging instruments 707 585 711 616 Gross derivative fair values 759 778 807 666 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (106 ) (106 ) (178 ) (178 ) Less: Cash collateral applied (2) (26 ) (13 ) (4 ) (3 ) Total net derivative fair values presented in the Consolidated Balance Sheets (3) $627 $659 $625 $485 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 3 “Securities” for further information. The Company’s derivative transactions are internally divided into three sub-groups: institutional, customer and residential loan. Institutional derivatives The institutional derivatives portfolio primarily consists of interest rate swap agreements that are used to hedge the interest rate risk associated with the Company’s loans and financing liabilities (i.e., borrowed funds, deposits, etc.). The goal of the Company’s interest rate hedging activity is to manage interest rate sensitivity so that movements in interest rates do not significantly adversely affect net interest income. The Company enters into certain interest rate swap agreements to hedge the risk associated with floating rate loans. By entering into pay-floating/receive-fixed interest rate swaps, the Company is able to minimize the variability in the cash flows of these assets due to changes in interest rates. The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s borrowed funds and deposit liabilities. By entering into a pay-fixed/receive-floating interest rate swap, a portion of these liabilities has been effectively converted to a fixed rate liability for the term of the interest rate swap agreement. The Company also uses receive-fixed/pay-floating interest rate swaps to manage the interest rate exposure on our medium term borrowings. Customer derivatives The customer derivatives portfolio consists of interest rate swap agreements and option contracts that are transacted to meet the financing needs of the Company’s customers. Swap agreements and interest rate option agreements are transacted to effectively minimize the Company’s market risk associated with the customer derivative products. The customer derivatives portfolio also includes foreign exchange contracts that are entered into on behalf of customers for the purpose of hedging exposure related to cash orders and loans and deposits denominated in foreign currencies. The primary risks associated with these transactions arise from exposure to changes in foreign currency exchange rates and the ability of the counterparties to meet the terms of the contract. To manage this market risk, the Company simultaneously enters into offsetting foreign exchange contracts. Residential loan derivatives The Company enters into residential loan commitments that allow residential mortgage customers to lock in the interest rate on a residential mortgage while the loan undergoes the underwriting process. The Company also uses forward sales contracts to protect the value of residential mortgage loans and loan commitments that are being underwritten for future sale to investors in the secondary market. The Company has certain derivative transactions that are designated as hedging instruments described as follows: Derivatives designated as hedging instruments The Company’s institutional derivatives portfolio qualifies for hedge accounting treatment. This includes interest rate swaps that are designated in highly effective fair value and cash flow hedging relationships. The Company formally documents at inception all hedging relationships, as well as risk management objectives and strategies for undertaking various accounting hedges. Additionally, the Company uses dollar offset or regression analysis at the hedge’s inception, and monthly thereafter to assess whether the derivatives are expected to be, or have been, highly effective in offsetting changes in the hedged item’s expected cash flows. The Company discontinues hedge accounting treatment when it is determined that a derivative is not expected to be or has ceased to be effective as a hedge, and then reflects changes in fair value in earnings after termination of the hedge relationship. Fair value hedges The Company has entered into interest rate swap agreements to manage the interest rate exposure on its medium term borrowings. The change in value of fair value hedges, to the extent that the hedging relationship is effective, is recorded through earnings and offset against the change in the fair value of the hedged item. The following table presents the effect of fair value hedges on other income: The Effect of Fair Value Hedges on Other Income Amounts Recognized in Other Income for the Year Ended December 31, 2016 2015 2014 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps ($6 ) $5 ($1 ) ($2 ) $2 $— ($4 ) $4 $— Cash flow hedges The Company has outstanding interest rate swap agreements designed to hedge a portion of the Company’s floating rate assets, and financing liabilities (including its borrowed funds). All of these swaps have been deemed as highly effective cash flow hedges. The effective portion of the hedging gains and losses associated with these hedges is recorded in OCI; the ineffective portion of the hedging gains and losses is recorded in earnings (other income). Hedging gains and losses on derivative contracts reclassified from OCI to current period earnings are included in the line item in the accompanying Consolidated Statements of Operations in which the hedged item is recorded and in the same period that the hedged item affects earnings. During the next 12 months, approximately $2 million of net gain (pre-tax) on derivative instruments included in OCI is expected to be reclassified to net interest income in the Consolidated Statements of Operations. Hedging gains and losses associated with the Company’s cash flow hedges are immediately reclassified from OCI to current period earnings (other income) if it becomes probable that the hedged forecasted transactions will not occur during the originally specified time period. The following table presents the effect of cash flow hedges on net income and stockholders’ equity: Amounts Recognized for the Year Ended December 31, (in millions) 2016 2015 2014 Effective portion of (loss) gain recognized in OCI (1) ($100 ) $150 $334 Amounts reclassified from OCI to interest income (2) 90 82 72 Amounts reclassified from OCI to interest expense (2) (27 ) (59 ) (99 ) Amounts reclassified from OCI to other income (3) (5 ) — — (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. (3) This includes gains and losses attributable to previously hedged cash flow where the likelihood of occurrence is no longer ‘probable’. Economic hedges The Company’s customer derivatives are recorded on the Consolidated Balance Sheets at fair value. These include interest rate and foreign exchange derivative contracts that are designed to meet the hedging and financing needs of the Company’s customers. Mark-to-market adjustments to the fair value of customer related interest rate contracts are included in other income in the accompanying Consolidated Statements of Operations. Mark-to-market adjustments to the fair value of foreign exchange contracts are included in foreign exchange and letter of credit fees. In both cases, the mark-to-market gains and losses associated with the customer derivatives are mitigated by the mark-to-market gains and losses on the offsetting interest rate and foreign exchange derivative contracts transacted. The Company’s residential loan derivatives (including residential loan commitments and forward sales contracts) are recorded on the Consolidated Balance Sheets at fair value. Mark-to-market adjustments to the fair value of residential loan commitments and forward sale contracts are included in noninterest income under mortgage banking fees. The following table presents the effect of customer derivatives and economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Year Ended December 31, (in millions) 2016 2015 2014 Customer derivative contracts Customer interest rate contracts (1) ($23 ) $140 $240 Customer foreign exchange contracts (2) (81 ) (18 ) (59 ) Residential loan commitments (3) (2 ) (4 ) 6 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) 70 (106 ) (209 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) 95 19 58 Forward sale contracts (3) 6 1 (3 ) Total $65 $32 $33 (1) Reported in other income on the Consolidated Statements of Operations. (2) Reported in foreign exchange and letter of credit fees on the Consolidated Statements of Operations. (3) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES A summary of outstanding off-balance sheet arrangements is presented below: December 31, (in millions) 2016 2015 Commitment amount: Undrawn commitments to extend credit $60,872 $56,524 Financial standby letters of credit 1,892 2,010 Performance letters of credit 40 42 Commercial letters of credit 43 87 Marketing rights 44 47 Risk participation agreements 19 26 Residential mortgage loans sold with recourse 8 10 Total $62,918 $58,746 Commitments to Extend Credit Commitments to extend credit are agreements to lend to customers in accordance with conditions contractually agreed upon in advance. Generally, the commitments have fixed expiration dates or termination clauses and may require payment of a fee. Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements. Letters of Credit Standby letters of credit, both financial and performance, are issued by the Company for its customers. They are used as conditional guarantees of payment to a third party in the event the customer either fails to make specific payments (financial) or fails to complete a specific project (performance). Commercial letters of credit are used to facilitate the import of goods. The commercial letter of credit is used as the method of payment to the Company’s customers’ suppliers. The Company’s exposure to credit loss in the event of counterparty nonperformance in connection with the above instruments is represented by the contractual amount of those instruments, net of the value of collateral held. Standby letters of credit and commercial letters of credit are issued for terms of up to ten years and one year , respectively. Generally, letters of credit are collateralized by cash, accounts receivable, inventory or investment securities. Credit risk associated with letters of credit is considered in determining the appropriate amounts of reserves for unfunded commitments. The Company recognizes a liability on the Consolidated Balance Sheets representing its obligation to stand ready to perform over the term of the standby letters of credit in the event that the specified triggering events occur. The liability for these guarantees was $3 million at December 31, 2016 and 2015 . Marketing Rights During 2003, the Company entered into a 25 -year agreement to acquire the naming and marketing rights of a baseball stadium in Pennsylvania. The Company paid $3 million for the years ended December 31, 2016 and 2015 , and is obligated to pay $44 million over the remainder of the contract. Risk Participation Agreements RPAs are guarantees issued by the Company to other parties for a fee, whereby the Company agrees to participate in the credit risk of a derivative customer of the other party. Under the terms of these agreements, the “participating bank” receives a fee from the “lead bank” in exchange for the guarantee of reimbursement if the customer defaults on an interest rate swap. The interest rate swap is transacted such that any and all exchanges of interest payments (favorable and unfavorable) are made between the lead bank and the customer. In the event that an early termination of the swap occurs and the customer is unable to make a required close out payment, the participating bank assumes that obligation and is required to make this payment. RPAs where the Company acts as the lead bank are referred to as “participations-out,” in reference to the credit risk associated with the customer derivatives being transferred out of the Company. Participations-out generally occur concurrently with the sale of new customer derivatives. RPAs where the Company acts as the participating bank are referred to as “participations-in,” in reference to the credit risk associated with the counterparty’s derivatives being assumed by the Company. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The Company’s estimate of the credit exposure associated with its risk participations-in as of December 31, 2016 and 2015 is $19 million and $26 million , respectively. The current amount of credit exposure is spread out over 93 counterparties. RPAs generally have terms ranging from one - five years; however, certain outstanding agreements have terms as long as ten years . Residential Loans Sold with Recourse The Company is an originator and servicer of residential mortgages and routinely sells such mortgage loans in the secondary market and to government-sponsored entities. In the context of such sales, the Company makes certain representations and warranties regarding the characteristics of the underlying loans and, as a result, may be contractually required to repurchase such loans or indemnify certain parties against losses for certain breaches of those representations and warranties. Other Commitments The Company’s agreement to purchase automobile loans, originally entered into in May 2014, was most recently amended on February 18, 2016. For quarterly periods on or after August 1, 2015, the minimum and maximum purchases are $50 million and $200 million , respectively. The agreement automatically renews until terminated by either party. The Company may cancel the agreement at will with payment of a variable termination fee. There is no termination fee after May 2017. The Company’s commercial loan trading desk provides ongoing secondary market support and liquidity to its clients. Unsettled loan trades (i.e., loan purchase contracts) represent firm commitments to purchase loans from a third party at an agreed-upon price. Principal amounts associated with unsettled commercial loan trades are off-balance sheet commitments until delivery of the loans has taken place. Fair value adjustments associated with each unsettled loan trade are recognized on the Consolidated Balance Sheets and classified within other assets or other liabilities, depending on whether the fair value of the unsettled trade represents an unrealized gain or unrealized loss. The principal balances of unsettled commercial loan trade purchases and sales were $127 million and $177 million at December 31, 2016 , respectively. Settled loans purchased by the trading desk are classified as loans held for sale, at fair value on the Consolidated Balance Sheets. Refer to Note 19 “Fair Value Measurements” for further information. Contingencies The Company operates in a legal and regulatory environment that exposes it to potentially significant risks. A certain amount of litigation ordinarily results from the nature of the Company’s banking and other businesses. The Company is a party to legal proceedings, including class actions. The Company is also the subject of investigations, reviews, subpoenas, and regulatory matters arising out of its normal business operations, which, in some instances, relate to concerns about fair lending, unfair and/or deceptive practices, mortgage-related issues, and mis-selling of certain products. In addition, the Company engages in discussions with relevant governmental and regulatory authorities on a regular and ongoing basis regarding various issues, and any issues discussed or identified may result in investigatory or other action being taken. Litigation and regulatory matters may result in settlements, damages, fines, penalties, public or private censure, increased costs, required remediation, restrictions on business activities, or other impacts on the Company. In these disputes and proceedings, the Company contests liability and the amount of damages as appropriate. Given their complex nature, it may be years before some of these matters are finally resolved. Moreover, before liability can be reasonably estimated for a claim, numerous legal and factual issues may need to be examined, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal issues relevant to the proceedings in question. The Company cannot predict with certainty if, how, or when such claims will be resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for claims that are at an early stage in their development or where claimants seek substantial or indeterminate damages. The Company recognizes a provision for a claim when, in the opinion of management after seeking legal advice, it is probable that a liability exists and the amount of loss can be reasonably estimated. In many proceedings, however, it is not possible to determine whether any loss is probable or to estimate the amount of any loss. In each of the matters described below, the Company is unable to estimate the liability in excess of any provision accrued, if any, that might arise or its effects on the Company’s Consolidated Statements of Operations or Consolidated Statements of Cash Flows in any particular period. Set out below is a description of significant legal matters involving the Company and its banking subsidiaries. Based on information currently available, the advice of legal counsel and other advisers, and established reserves, management believes that the aggregate liabilities, if any, potentially arising from these proceedings will not have a materially adverse effect on the Company’s Consolidated Financial Statements. Consumer Products Matters The activities of the Company’s banking subsidiaries are subject to extensive laws and regulations concerning unfair or deceptive acts or practices in connection with customer products. Certain of the banking subsidiaries’ past practices have not met applicable standards, and they have implemented and are continuing to implement changes to improve and bring their practices in accordance with regulatory guidance. The Company and its banking subsidiaries have actively pursued resolution of the legacy regulatory enforcement matters set forth below. As previously reported, the Company and its banking subsidiaries are currently subject to consent orders issued in 2015 by certain of their regulators in connection with past deposit reconciliation and billing practices, under which the applicable regulators have provided non-objections to, among other things, restitution plans for affected customers. All financial penalties associated with these regulatory enforcement matters have been paid, and substantially all remediation related to such legacy matters was resolved as of December 31, 2016. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES There were no branch-related divestitures of assets and liabilities during 2016 and 2015. On June 20, 2014, the Company completed the sale of certain assets and liabilities associated with the Chicago-area retail branches, small business relationships and select middle market relationships to U.S. Bancorp. The agreement to sell these assets and liabilities to U.S. Bancorp had previously been announced in January 2014. This sale included 103 retail branches located in Illinois, including certain customer deposits of $4.8 billion and selected loans of $1.0 billion (primarily middle market, small business, home equity and credit card balances). As a result of this transaction, the Company recorded a gain on sale of $288 million consisting of $286 million related to the deposits, a gain on sale of $11 million related to the loans and a $9 million loss on sale of other branch assets. For the year ended December 31, 2014, the corresponding interest and fees on these loans was $20 million and interest expense on deposits was $4 million . There was no impact on the Consolidated Statements of Operations for the years ended December 31, 2015 and 2016 as a result of this transaction. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As discussed in Note 1 “Significant Accounting Policies,” the Company measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Additionally, fair value is used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. The Company also applies the fair value measurement guidance to determine amounts reported for certain disclosures in this Note for assets and liabilities not required to be reported at fair value in the financial statements. The Company elected to account for residential mortgage loans held for sale and certain commercial and commercial real estate loans held for sale at fair value. Applying fair value accounting to the residential mortgage loans held for sale better aligns the reported results of the economic changes in the value of these loans and their related hedge instruments. Certain commercial and commercial real estate held for sale loans are managed by a commercial secondary loan desk that provides liquidity to banks, finance companies and institutional investors. Applying fair value accounting to this portfolio is appropriate because the Company holds these loans with the intent to sell within short-term periods. Fair Value Option Residential Mortgage Loans Held for Sale The fair value of residential mortgage loans held for sale is derived from observable mortgage security prices and includes adjustments for loan servicing value, agency guarantee fees, and other loan level attributes which are mostly observable in the marketplace. Credit risk does not significantly impact the valuation since these loans are sold shortly after origination. Therefore, the Company classifies the residential mortgage loans held for sale in Level 2 of the fair value hierarchy. The election of the fair value option for financial assets and financial liabilities is optional and irrevocable. The loans accounted for under the fair value option are initially measured at fair value (i.e., acquisition cost) when the financial asset is acquired. Subsequent changes in fair value are recognized in mortgage banking fees on the Consolidated Statements of Operations. The Company recognized changes in fair value in mortgage banking fees of ($5) million , ($2) million , and $5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Interest income on residential mortgage loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. Commercial and Commercial Real Estate Loans Held for Sale The fair value of commercial and commercial real estate loans held for sale is estimated using observable prices of identical or similar loans that transact in the marketplace. In addition, the Company uses external pricing services that provide estimates of fair values based on quotes from various dealers transacting in the market, sector curves or benchmarking techniques. Therefore, the Company classifies the commercial and commercial real estate loans managed by the commercial secondary loan desk in Level 2 of the fair value hierarchy given the observable market inputs. There were no loans in this portfolio that were 90 days or more past due or nonaccruing as of December 31, 2016 . The loans accounted for under the fair value option are initially measured at fair value when the financial asset is recognized. Subsequent changes in fair value are recognized in current earnings. Since all loans in the Company’s commercial trading portfolio consist of floating rate obligations, all changes in fair value are due to changes in credit risk. Such credit-related fair value changes may include observed changes in overall credit spreads and/or changes to the creditworthiness of an individual borrower. Unsettled trades within the commercial trading portfolio are not recognized on the Consolidated Balance Sheets and represent off-balance sheet commitments. Refer to Note 17 “Commitments and Contingencies” for further information. Interest income on commercial and commercial real estate loans held for sale is calculated based on the contractual interest rate of the loan and is recorded in interest income. The Company recognized $4 million , $3 million and $1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, in other noninterest income related to its commercial trading portfolio. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale measured at fair value: December 31, 2016 December 31, 2015 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $504 $505 ($1 ) $268 $263 $5 Commercial and commercial real estate loans held for sale, at fair value 79 79 — 57 57 — Recurring Fair Value Measurements The Company utilizes a variety of valuation techniques to measure its assets and liabilities at fair value. The valuation methodologies used for significant assets and liabilities carried on the balance sheet at fair value on a recurring basis are presented below: Securities available for sale The fair value of securities classified as AFS is based upon quoted prices, if available. Where observable quoted prices are available in an active market, securities are classified as Level 1 in the fair value hierarchy. Classes of instruments that are valued using this market approach include debt securities issued by the U.S. Treasury. If quoted market prices are not available, the fair value for the security is estimated under the market or income approach using pricing models. These instruments are classified as Level 2 because they currently trade in active markets and the inputs to the valuations are observable. The pricing models used to value securities under the market approach generally begin with market prices (or rates) for similar instruments and make adjustments based on the unique characteristics of the instrument being valued. These adjustments reflect assumptions made regarding the sensitivity of each security’s value to changes in interest rates and prepayment speeds. Classes of instruments that are valued using this market approach include specified pool mortgage “pass-through” securities and other debt securities issued by U.S. government-sponsored entities and state and political subdivisions. The pricing models used to value securities under the income approach generally begin with the contractual cash flows of each security and make adjustments based on forecasted prepayment speeds, default rates, and other market-observable information. The adjusted cash flows are then discounted at a rate derived from observed rates of return for comparable assets or liabilities that are traded in the market. Classes of instruments that are valued using this market approach include residential and commercial CMOs. A significant majority of the Company’s Level 1 and 2 securities are priced using an external pricing service. The Company verifies the accuracy of the pricing provided by its primary outside pricing service on a quarterly basis. This process involves using a secondary external vendor to provide valuations for the Company’s securities portfolio for comparison purposes. Any securities with discrepancies beyond a certain threshold are researched and, if necessary, valued by an independent outside broker. In certain cases where there is limited activity or less transparency around inputs to the valuation model, securities are classified as Level 3. Residential loans held for sale See the “ Fair Value Option, Residential Mortgage Loans Held for Sale” discussion above. Commercial loans held for sale See the “ Fair Value Option, Commercial and Commercial Real Estate Loans Held for Sale” discussion above. Derivatives The vast majority of the Company’s derivatives portfolio is composed of “plain vanilla” interest rate swaps, which are traded in over-the-counter markets where quoted market prices are not readily available. For these interest rate derivatives, fair value is determined utilizing models that primarily use market observable inputs, such as swap rates and yield curves. The pricing models used to value interest rate swaps calculate the sum of each instrument’s fixed and variable cash flows, which are then discounted using an appropriate yield curve (i.e., LIBOR or Overnight Index Swap curve) to arrive at the fair value of each swap. The pricing models do not contain a high level of subjectivity as the methodologies used do not require significant judgment. The Company also considers certain adjustments to the modeled price that market participants would make when pricing each instrument, including a credit valuation adjustment that reflects the credit quality of the swap counterparty. The Company incorporates the effect of exposure to a particular counterparty’s credit by netting its derivative contracts with the collateral available and calculating a credit valuation adjustment on the basis of the net position with the counterparty where permitted. The determination of this adjustment requires judgment on behalf of Company management; however, the total amount of this portfolio-level adjustment is not material to the total fair value of the interest rate swaps in their entirety . Therefore, interest rate swaps are classified as Level 2 in the valuation hierarchy. The Company’s other derivatives include foreign exchange contracts. The fair value of foreign exchange derivatives uses the mid-point of daily quoted currency spot prices. A valuation model estimates fair value based on the quoted spot rates together with interest rate yield curves and forward currency rates. Since all of these inputs are observable in the market, foreign exchange derivatives are classified as Level 2 in the fair value hierarchy. Money Market Mutual Fund Fair value is determined based upon unadjusted quoted market prices and is considered a Level 1 fair value measurement. Other investments The fair values of the Company’s other investments are based on security prices in markets that are not active; therefore, these investments are classified as Level 2 in the fair value hierarchy. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,446 $— $19,446 $— State and political subdivisions 8 — 8 — Equity securities 17 — 17 — U.S. Treasury and other 30 30 — — Total securities available for sale 19,501 30 19,471 — Loans held for sale, at fair value: Residential loans held for sale 504 — 504 — Commercial loans held for sale 79 — 79 — Total loans held for sale, at fair value 583 — 583 — Derivative assets: Interest rate swaps 609 — 609 — Foreign exchange contracts 134 — 134 — Other contracts 16 — 16 — Total derivative assets 759 — 759 — Other investment securities, at fair value: Money market mutual fund 91 91 — — Other investments 5 — 5 — Total other investment securities, at fair value 96 91 5 — Total assets $20,939 $121 $20,818 $— Derivative liabilities: Interest rate swaps $645 $— $645 $— Foreign exchange contracts 126 — 126 — Other contracts 7 — 7 — Total derivative liabilities 778 — 778 — Total liabilities $778 $— $778 $— The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $17,842 $— $17,842 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury 16 15 1 — Total securities available for sale 17,884 15 17,869 — Loans held for sale, at fair value: Residential loans held for sale 268 — 268 — Commercial loans held for sale 57 — 57 — Total loans held for sale, at fair value 325 — 325 — Derivative assets: Interest rate swaps 636 — 636 — Foreign exchange contracts 163 — 163 — Other contracts 8 — 8 — Total derivative assets 807 — 807 — Other investment securities, at fair value: Money market mutual fund 65 65 — — Other investments 5 — 5 — Total other investment securities, at fair value 70 65 5 — Total assets $19,086 $80 $19,006 $— Derivative liabilities: Interest rate swaps $505 $— $505 $— Foreign exchange contracts 156 — 156 — Other contracts 5 — 5 — Total derivative liabilities 666 — 666 — Total liabilities $666 $— $666 $— The changes in Level 3 assets measured at fair value on a recurring basis are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Beginning of year balance $— $5 $5 Purchases, issuances, sales and settlements — — — Net (losses) gains — — — Transfers from Level 3 to Level 2 — (5 ) — End of year balance $— $— $5 Net unrealized gain (loss) included in net income for the year relating to assets held at year end $— $— $— In March 2015, the Company transferred $5 million of securities from Level 3 to Level 2. The fair values of these securities are based on security prices in the market that are not active. Nonrecurring Fair Value Measurements The following valuation techniques are utilized to measure significant assets for which the Company utilizes fair value on a nonrecurring basis: Impaired Loans The carrying amount of collateral-dependent impaired loans is compared to the appraised value of the collateral less costs to dispose and is classified as Level 2. Any excess of carrying amount over the appraised value is charged to the ALLL. Mortgage Servicing Rights MSRs do not trade in an active market with readily observable prices. MSRs are classified as Level 3 since the valuation methodology utilizes significant unobservable inputs. The fair value was calculated using a discounted cash flow model, which used assumptions, including weighted-average life, weighted-average constant prepayment rate and weighted-average discount rate. Refer to Note 1 “Significant Accounting Policies” and Note 10 “Mortgage Banking” for more information. Foreclosed assets Foreclosed assets consist primarily of residential properties. Foreclosed assets are carried at the lower of cost or fair value less costs to dispose. Fair value is based upon independent market prices or appraised values of the collateral and is classified as Level 2. Leased Assets The fair value of assets under operating leases is determined using collateral specific pricing digests, external appraisals, broker opinions, recent sales data from industry equipment dealers, and discounted cash flows derived from the underlying lease agreement. As market data for similar assets and lease agreements is available and used in the valuation, these assets are classified as Level 2 fair value measurement. The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2016 2015 2014 Impaired collateral-dependent loans ($33 ) ($32 ) ($101 ) MSRs 4 9 5 Foreclosed assets (3 ) (3 ) (3 ) Leased assets 11 — — The following table presents assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2016 December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $355 $— $355 $— $60 $— $60 $— MSRs 182 — — 182 178 — — 178 Foreclosed assets 44 — 44 — 42 — 42 — Leased assets 158 — 158 — — — — — Disclosures about Fair Value of Financial Instruments Following is a description of valuation methodologies used to estimate the fair value of financial instruments for disclosure purposes (these instruments are not recorded in the financial statements at fair value): Securities held to maturity The fair values of securities classified as HTM are estimated under the market or income approach using the same pricing models as those used to measure the fair value of the Company’s securities AFS. For more information, see “Recurring Fair Value Measurements — Securities Available for Sale,” within this Note. Other investment securities, at cost The cost basis of other investment securities, at cost, such as FHLB stock and FRB stock, is assumed to approximate the fair value of these securities. As a member of the FHLB and FRB, the Company is required to hold FHLB and FRB stock. The stock can be sold only to the FHLB and FRB upon termination of membership, or redeemed at the FHLB’s or FRB’s sole discretion. The stock may only be sold or redeemed at par, and therefore the cost basis represents the best estimate of fair value. Loans and leases For loans and leases not recorded at fair value on a recurring basis or that are not accounted for as collateral-dependent impaired loans, fair value is estimated by using one of two methods: a discounted cash flow method or a securitization method. The discounted cash flow method involves discounting the expected future cash flows using current rates which a market participant would likely use to value similar pools of loans. Inputs used in this method include observable information such as contractual cash flows (net of servicing cost) and unobservable information such as estimated prepayment speeds, credit loss exposures, and discount rates. The securitization method involves utilizing market securitization data to value the assets as if a securitization transaction had been executed. Inputs used include observable market-based MBS data and pricing adjustments based on unobservable data reflecting the liquidity risk, credit loss exposure and other characteristics of the underlying loans. The internal risk-weighted balances of loans are grouped by product type for purposes of these estimated valuations. For nonaccruing loans, fair value is estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets. Fair value of collateral-dependent loans is primarily based on the appraised value of the collateral. Other loans held for sale Balances represent loans that were transferred to other loans held for sale and are reported at the lower of cost or fair value. When applicable, the fair value of other loans held for sale is estimated using one of two methods: a discounted cash flow method or a securitization method (as described above). Deposits The fair value of demand deposits, checking with interest accounts, regular savings, money market accounts, and other deposits is the amount payable on demand at the balance sheet date. The fair value of term deposits is estimated by discounting the expected future cash flows using rates currently offered for deposits of similar remaining maturities. Federal funds purchased and securities sold under agreements to repurchase, other short-term borrowed funds, and long-term borrowed funds Rates currently available to the Company for debt of similar terms and remaining maturities are used to discount the expected cash flows of existing debt. The following table presents the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2016 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $5,071 $5,058 $— $— $5,071 $5,058 $— $— Other investment securities, at cost 942 942 — — 942 942 — — Other loans held for sale 42 42 — — — — 42 42 Loans and leases 107,669 107,537 — — 355 355 107,314 107,182 Financial Liabilities: Deposits 109,804 109,796 — — 109,804 109,796 — — Federal funds purchased and securities sold under agreements to repurchase 1,148 1,148 — — 1,148 1,148 — — Other short-term borrowed funds 3,211 3,211 — — 3,211 3,211 — — Long-term borrowed funds 12,790 12,849 — — 12,790 12,849 — — December 31, 2015 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Securities held to maturity $5,258 $5,297 $— $— $5,258 $5,297 $— $— Other investment securities, at cost 863 863 — — 863 863 — — Other loans held for sale 40 40 — — — — 40 40 Loans and leases 99,042 99,026 — — 60 60 98,982 98,966 Financial Liabilities: Deposits 102,539 102,528 — — 102,539 102,528 — — Federal funds purchased and securities sold under agreements to repurchase 802 802 — — 802 802 — — Other short-term borrowed funds 2,630 2,630 — — 2,630 2,630 — — Long-term borrowed funds 9,886 9,837 — — 9,886 9,837 — — |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS As a BHC, the Company is subject to regulation and supervision by the FRB. The primary subsidiaries of the Company are its two insured depository institutions CBNA, a national banking association whose primary federal regulator is the OCC, and CBPA, a Pennsylvania-chartered savings bank regulated by the Department of Banking of the Commonwealth of Pennsylvania and supervised by the FDIC as its primary federal regulator. Under the U.S. Basel III capital framework the Company and its banking subsidiaries must meet specific minimum requirements for the following ratios: (1) common equity tier 1 capital; (2) tier 1 capital; (3) total capital; and (4) tier 1 leverage. In addition, the Company must not be subject to a written agreement, order or capital directive with any of its regulators. Failure to meet minimum capital requirements can result in the initiation of certain actions that, if undertaken, could have a material effect on the Company’s Consolidated Financial Statements. The following table presents the Company’s capital and capital ratios under Basel III Transitional rules as of December 31, 2016 and 2015, respectively. Certain Basel III requirements are subject to phase-in through 2019, which are used in this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses included within AOCI for available for sale securities, accumulated net gains and losses on cash-flow hedges, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities held to maturity. Transitional Basel III FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (6) (dollars in millions) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Common equity tier 1 capital (1) (5) $13,822 11.2 % $6,348 5.125 % $8,051 6.5 % Tier 1 capital (2) (5) 14,069 11.4 8,206 6.625 9,909 8.0 Total capital (3)(5) 17,347 14.0 10,683 8.625 12,386 10.0 Tier 1 leverage (4) 14,069 9.9 5,667 4.000 7,084 5.0 As of December 31, 2015 Common equity tier 1 capital (1) $13,389 11.7 % $5,134 4.5 % $7,415 6.5 % Tier 1 capital (2) 13,636 12.0 6,845 6.0 9,127 8.0 Total capital (3) 17,505 15.3 9,127 8.0 11,408 10.0 Tier 1 leverage (4) 13,636 10.5 5,218 4.0 6,523 5.0 (1) “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (2) “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. (5) “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0 .625% . (6) Presented for informational purposes. Prompt corrective action provisions apply only to insured depository institutions-in our case CBNA and CBPA. Under the Capital Plan Rule, the Company may only make capital distributions, including payment of dividends, in accordance with a capital plan that has been reviewed by the Federal Reserve and to which the Federal Reserve has not objected. In April 2016, the Company submitted its 2016 Capital Plan to the Federal Reserve under the annual CCAR process. On June 29, 2016, the FRBG indicated that it did not object to the Company’s 2016 Capital Plan or to its proposed capital actions in the period beginning July 1, 2016 and ending June 30, 2017. The Company’s 2016 Capital Plan includes quarterly common dividends of $0.12 per share through the end of 2016, a 17% increase to quarterly common dividends to $0.14 per share in 2017, and a share repurchase plan of up to $690 million through the second quarter of 2017. All future distributions are subject to consideration and approval by CFG’s Board of Directors prior to execution. The timing and exact amount of dividends and share repurchases will depend on various factors, including CFG’s capital position, financial performance and market conditions. On January 30, 2017, the FRB published a final rule that modifies the CCAR Capital Plan and stress test rules. Under the final rule, the Company continues to be classified as a large non-complex firm, with total consolidated assets of at least $50 billion but less than $250 billion and nonbank assets of less than $75 billion . As such, the FRB may no longer object to our capital plans on qualitative grounds beginning with the 2017 CCAR and DFAST cycle. Assessment of the Company’s capital planning processes is now incorporated into regular ongoing supervisory activities. The Company remains subject to assessment of its ability to meet capital requirements under stress. For the year ended December 31, 2016 , the Company paid total common dividends of $241 million , repurchased 17.3 million shares of its common stock and $625 million of qualified subordinated notes, compared to $214 million in common dividends paid, repurchase of 20.1 million shares and $750 million of qualified subordinated notes for the year ended December 31, 2015 . Additionally, for the year ended December 31, 2016 , the Company paid total preferred dividends of $14 million , compared to $7 million in the year ended December 31, 2015 . In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Company itself are generally limited to the retained earnings of the respective banking subsidiaries unless specifically approved by the appropriate bank regulator. A financial subsidiary of a national bank is permitted to engage in a broader range of activities, similar to those of a financial holding company, than those permissible for a national bank itself. CBNA has two financial subsidiaries, Citizens Securities, Inc., a registered broker-dealer, and RBS Citizens Insurance Agency, Inc., a dormant entity. On March 13, 2014, the OCC determined that CBNA no longer met the conditions to own a financial subsidiary - namely that CBNA must be both well capitalized and well managed. CBNA entered into an agreement with the OCC pursuant to which it has developed and submitted to the OCC a remediation plan setting forth the specific actions it will take to bring itself back into compliance with the conditions to own a financial subsidiary. CBNA has completed its undertakings under the plan, which have been validated by the Company’s internal audit team and submitted to the OCC for review and approval. However, until the plan has been approved by the OCC, CBNA will be subject to restrictions on its ability to acquire control or hold an interest in any new financial subsidiary and to commence new activities in any existing financial subsidiary without the prior consent of the OCC. |
EXIT COSTS AND RESTRUCTURING RE
EXIT COSTS AND RESTRUCTURING RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
EXIT COSTS AND RESTRUCTURING RESERVES | EXIT COSTS AND RESTRUCTURING RESERVES The Company incurred no restructuring costs for the year ended December 31, 2016 . For the year ended December 31, 2015 , the Company incurred $26 million of restructuring costs, consisting of $17 million of facilities costs in occupancy, $8 million in outside services, and $1 million in salaries and employee benefits, relating to restructuring initiatives designed to enhance operating efficiencies and reduce expense growth. In 2014, the Company began the implementation of a restructuring initiative designed to achieve operating efficiencies and reduce expense growth. For the year ended December 31, 2014 , the Company incurred $101 million of restructuring costs related to these initiatives, including $41 million of salaries and employee benefits, $18 million of facilities costs (including $6 million of building impairment) in occupancy, $24 million in outside services, $6 million in software expense reported in amortization of software, and $12 million in other operating expenses. Also in 2014, as a result of the sale of retail branches located in Illinois, the Company incurred total costs of approximately $17 million for the year ended December 31, 2014 , consisting of $3 million of employee compensation reported in salaries and employee benefits, $3 million of fixed asset expenses reported in equipment, $4 million in outside services and $7 million in other operating expenses. For segment reporting, all of these restructuring costs are reported within Other. See Note 23 “Business Segments” for further information. The following tables present the activity in the exit costs and restructuring reserves recognized in other liabilities in the Consolidated Balance Sheets: (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Reserve balance as of January 1, 2014 $2 $24 $— $26 Additions 43 24 57 124 Reversals (1 ) (5 ) (4 ) (10 ) Utilization (21 ) (25 ) (50 ) (96 ) Reserve balance as of December 31, 2014 23 18 3 44 Additions 5 18 8 31 Reversals (4 ) (1 ) — (5 ) Utilization (12 ) (19 ) (6 ) (37 ) Reserve balance as of December 31, 2015 12 16 5 33 Additions 2 — — 2 Reversals (2 ) — — (2 ) Utilization (11 ) (7 ) (5 ) (23 ) Reserve balance as of December 31, 2016 $1 $9 $— $10 |
RECLASSIFICATIONS OUT OF ACCUMU
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in the balances, net of income taxes, of each component of AOCI: (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at January 1, 2014 ($298 ) ($91 ) ($259 ) ($648 ) Other comprehensive income before reclassifications 212 198 — 410 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income 17 (11 ) (118 ) (112 ) Net other comprehensive income 229 165 (118 ) 276 Balance at December 31, 2014 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income before reclassifications 93 (66 ) — 27 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (14 ) (14 ) 8 (20 ) Net other comprehensive income (loss) 79 (102 ) 8 (15 ) Balance at December 31, 2015 $10 ($28 ) ($369 ) ($387 ) Other comprehensive income before reclassifications (62 ) (139 ) — (201 ) Other-than-temporary impairment not recognized in earnings on securities — (17 ) — (17 ) Amounts reclassified from other comprehensive income (36 ) (2 ) (25 ) (63 ) Net other comprehensive loss (98 ) (158 ) (25 ) (281 ) Balance at December 31, 2016 ($88 ) ($186 ) ($394 ) ($668 ) The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2016 2015 2014 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $90 $82 $72 Interest income (27 ) (59 ) (99 ) Interest expense (5 ) — — Other income 58 23 (27 ) Income before income tax expense 22 9 (10 ) Income tax expense $36 $14 ($17 ) Net income Reclassification of net securities gains (losses) to net income: $16 $29 $28 Securities gains, net (12 ) (7 ) (10 ) Net securities impairment losses recognized in earnings 4 22 18 Income before income tax expense 2 8 7 Income tax expense $2 $14 $11 Net income Reclassification of changes related to employee benefit plans: $39 ($8 ) $192 Salaries and employee benefits 39 (8 ) 192 Income before income tax expense 14 — 74 Income tax expense $25 ($8 ) $118 Net income Total reclassification gains $63 $20 $112 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Year Ended December 31, (in millions) 2016 2015 2014 Net interest income (includes $63, $23 and ($27) of AOCI reclassifications, respectively) $3,758 $3,402 $3,301 Provision for credit losses 369 302 319 Noninterest income (includes ($1), $22 and $18 of AOCI reclassifications, respectively) 1,497 1,422 1,678 Noninterest expense (includes ($39), $8 and ($192) of AOCI reclassifications, respectively) 3,352 3,259 3,392 Income before income tax expense 1,534 1,263 1,268 Income tax expense (includes $38, $17 and $71 income tax net expense from reclassification items, respectively) 489 423 403 Net income $1,045 $840 $865 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company is managed by its CEO on a segment basis. The Company’s two business segments are Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each segment has one or more segment heads who report directly to the CEO. The CEO has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the CEO. Non-segment operations are classified as Other, which includes corporate functions, the Treasury function, the securities portfolio, wholesale funding activities, intangible assets, community development, non-core assets, and other unallocated assets, liabilities, capital, revenues, provision for credit losses and expenses. Reportable Segments Segment results are determined based upon the Company’s management reporting system, which assigns balance sheet and statement of operations items to each of the business segments. The process is designed around the Company’s organizational and management structure and accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions. A description of each reportable segment and table of financial results is presented below: Consumer Banking The Consumer Banking segment focuses on retail customers and small businesses with annual revenues of up to $ 25 million . It offers traditional banking products and services, including checking, savings, home loans, student loans, credit cards, business loans and financial management services. It also operates an indirect auto financing business, providing financing for both new and used vehicles through auto dealerships. The segment’s distribution channels include a branch network, ATMs and a work force of experienced specialists ranging from financial consultants, mortgage loan officers and business banking officers to private bankers. Our Consumer Banking value proposition is based on providing simple, easy to understand product offerings and a convenient banking experience with a more personalized approach. Commercial Banking The Commercial Banking segment primarily targets companies with annual revenues from $25 million to $2.5 billion and provides a full complement of financial products and solutions, including loans, leases, trade financing, deposits, cash management, commercial cards, foreign exchange, interest rate risk management, corporate finance and capital markets advisory capabilities. It focuses on middle-market companies, large corporations and institutions and has dedicated teams with industry expertise in government banking, not-for-profit, healthcare, technology, professionals, oil & gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity and sponsor finance. While the segment’s business development efforts are predominantly focused in the Company’s footprint, some of its specialized industry businesses also operate selectively on a national basis (such as healthcare, asset finance and franchise finance). A key component of Commercial Banking’s growth strategy is to bring ideas to clients that help their businesses thrive, and in doing so, expand the loan portfolio and ancillary product sales. Non-segment Operations Other In addition to non-segment operations, Other includes certain reconciling items in order to translate the segment results that are based on management accounting practices into consolidated results. For example, Other includes goodwill and any associated goodwill impairment charges, as well as legacy RBS aircraft loan and leasing borrowers that were placed in runoff following a review of Asset Finance in the third quarter of 2016. Year Ended December 31, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,443 $1,288 $27 $3,758 Noninterest income 883 466 148 1,497 Total revenue 3,326 1,754 175 5,255 Noninterest expense 2,547 741 64 3,352 Profit before provision for credit losses 779 1,013 111 1,903 Provision for credit losses 243 47 79 369 Income before income tax expense (benefit) 536 966 32 1,534 Income tax expense (benefit) 191 335 (37 ) 489 Net income $345 $631 $69 $1,045 Total average assets $56,388 $47,159 $39,636 $143,183 Year Ended December 31, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,198 $1,162 $42 $3,402 Noninterest income 910 415 97 1,422 Total revenue 3,108 1,577 139 4,824 Noninterest expense 2,456 709 94 3,259 Profit before provision for credit losses 652 868 45 1,565 Provision for credit losses 252 (13 ) 63 302 Income before income tax expense (benefit) 400 881 (18 ) 1,263 Income tax expense (benefit) 138 302 (17 ) 423 Net income (loss) $262 $579 ($1 ) $840 Total average assets $52,848 $42,800 $39,422 $135,070 Year Ended December 31, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,151 $1,073 $77 $3,301 Noninterest income 899 429 350 1,678 Total revenue 3,050 1,502 427 4,979 Noninterest expense 2,513 652 227 3,392 Profit before provision for credit losses 537 850 200 1,587 Provision for credit losses 259 (6 ) 66 319 Income before income tax expense 278 856 134 1,268 Income tax expense 96 295 12 403 Net income $182 $561 $122 $865 Total average assets $48,939 $38,483 $40,202 $127,624 Management accounting practices utilized by the Company as the basis of presentation for segment results include the following: FTP adjustments The Company utilizes an FTP system to eliminate the effect of interest rate risk from the segments’ net interest income because such risk is centrally managed within the Treasury function. The FTP system credits (or charges) the segments with the economic value of the funds created (or used) by the segments. The FTP system provides a funds credit for sources of funds and a funds charge for the use of funds by each segment. The sum of the interest income/expense and FTP charges/credits for each segment is its designated net interest income. The variance between the Company’s cumulative FTP charges and cumulative FTP credits is offset in Other. Provision for credit losses allocations Provision for credit losses is allocated to each business segment based on actual net charge-offs recognized by the business segment. The difference between the consolidated provision for credit losses and the business segments’ net charge-offs is reflected in Other. Income tax allocations Income taxes are assessed to each line of business at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Other. Expense allocations Noninterest expenses incurred by centrally managed operations or business lines that directly support another business line’s operations are charged to the applicable business line based on its utilization of those services. Goodwill For impairment testing purposes, the Company allocates goodwill to its Consumer Banking and Commercial Banking reporting units. For management reporting purposes, the Company presents the goodwill balance (and any related impairment charges) in Other. Substantially all revenues generated and long-lived assets held by the Company’s business segments are derived from clients that reside in the United States. Neither business segment earns revenue from a single external customer that represents 10 percent or more of the Company’s total revenues. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Employees of the Company hold time-based restricted stock units and performance-based restricted stock units. A restricted stock unit is the right to receive shares of stock on a future date, which may be subject to time-based vesting conditions and/or performance-based vesting conditions. If a dividend is paid on shares underlying the awards prior to the date such shares are distributed, those dividends will be distributed following vesting in the same form as the dividend that has been paid to common stockholders generally. Citizens Financial Group, Inc. Converted Equity 2010 Long Term Incentive Plan. In March 2014, RBS granted special IPO awards to certain Citizens employees pursuant to this plan. These awards were granted half in the form of restricted stock units in respect of RBS shares and half as a fixed convertible bond. Pursuant to their terms, upon the closing of the Company’s IPO, these awards were converted into Company restricted stock units and the performance condition was met. These awards remained subject to the original vesting schedule and terms following the IPO, with half becoming vested in March 2016 and the remaining scheduled to become vested in March 2017. No additional awards have been granted under this plan. Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan. Certain employees of the Company hold time-based restricted stock units and performance-based restricted stock units granted under this plan. Time-based restricted stock units granted generally become vested ratably over a three -year period and performance-based restricted stock units granted generally become vested at the end of a three -year performance period, depending on the level of performance achieved during such period. Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan. Non-employee directors receive grants of time-based restricted stock units under this plan as compensation for their services pursuant to the Citizens Financial Group, Inc. Directors Compensation Policy. Restricted stock units granted to directors become fully vested on the earlier of (i) the first anniversary of the grant date or (ii) the date of the next occurring annual shareholders meeting, but settlement of the award is deferred until their cessation of service. In the event that a director ceases to serve on the Board of Directors prior to the vesting date for any reason other than under circumstances which would constitute cause, the restricted stock units will fully vest on the date of the director’s cessation from service. Citizens Financial Group, Inc. 2014 Employee Stock Purchase Plan. The Company also maintains the Citizens Financial Group, Inc. Employee Stock Purchase Plan (the “ESPP”), which provides eligible employees an opportunity to purchase its common stock at a 10% discount, through accumulated payroll deductions. Eligible employees may contribute up to 10% of eligible compensation to the ESPP, up to a maximum purchase of $25,000 worth of stock in any calendar year. Offering periods under the ESPP are quarterly. Shares of CFG common stock are purchased for a participant on the last day of each quarter at a 10% discount from the fair market value (fair market value under the plan is defined as the closing price on the day of purchase). Prior to the date the shares are purchased, participants do not have any rights or privileges as a stockholder with respect to shares to be purchased at the end of the offering period. Summary of Share-Based Plans Activity The following table presents the activity related to the Company’s share-based plans (excluding the ESPP) for the year ended December 31, 2016: CFG Share Awards Shares Weighted Average Grant Price Nonvested, January 1 3,428,130 $22.43 Granted 1,552,416 24.53 Vested (1,762,655 ) 22.14 Forfeited (308,862 ) 24.19 Nonvested, December 31 2,909,029 $23.92 During the years ended December 31, 2015 and 2014, the following number of CFG share awards were granted: 2015 ( 1,315,572 granted with weighted average grant price of $25.18 ); and 2014 ( 209,099 granted with weighted average grant price of $24.87 ). In addition, the following number of CFG share awards became vested: 2015 ( 2,496,092 vested with weighted average grant price of $22.15 ) and 2014 ( 161,067 vested with weighted average grant price of $25.07 ). For RBS share awards during the year ended December 31, 2014, 9,627,635 awards were granted with a weighted average grant price of $5.48 , and 6,040,806 became vested with a weighted average grant price of $6.14 . There are 59,004,280 shares of Company common stock available for awards to be granted under our employee share plans ( including the “ESPP”). Upon settlement of share-based awards, the Company generally issues new shares, but may also issue shares from treasury stock. Compensation Expense Compensation expense related to the above share plans (including the ESPP) was $23 million , $24 million , and $53 million for the year ended December 31, 2016 , 2015 , and 2014 , respectively. At December 31, 2016 , the total unrecognized compensation expense for nonvested equity awards granted was $24 million . This expense is expected to be recognized over a weighted-average period of two years . No share-based compensation costs were capitalized during the years ended December 31, 2016 , 2015 , and 2014 . The income tax benefit recognized in earnings based on the compensation expense recognized for all share-based compensation arrangements amounted to $8 million , $5 million and $17 million in 2016 , 2015 and 2014 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Year Ended December 31, (dollars in millions, except share and per-share data) 2016 2015 2014 Numerator (basic and diluted): Net income $1,045 $840 $865 Less: Preferred stock dividends 14 7 — Net income available to common stockholders $1,031 $833 $865 Denominator: Weighted-average common shares outstanding - basic 522,093,545 535,599,731 556,674,146 Dilutive common shares: share-based awards 1,837,173 2,621,167 1,050,790 Weighted-average common shares outstanding - diluted 523,930,718 538,220,898 557,724,936 Earnings per common share: Basic $1.97 $1.55 $1.55 Diluted 1.97 1.55 1.55 Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. The Company did not have any antidilutive shares for the years ended December 31, 2016 , 2015 and 2014 . |
PARENT COMPANY ONLY FINANCIALS
PARENT COMPANY ONLY FINANCIALS | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIALS | PARENT COMPANY ONLY FINANCIALS CFG Parent Company Condensed Statements of Operations Year Ended December 31, (in millions) 2016 2015 2014 OPERATING INCOME: Income from consolidated subsidiaries and excluding equity in undistributed earnings: Dividends from banking subsidiaries $555 $345 $595 Interest 53 54 29 Management and service fees 26 20 21 Equity securities gains 3 3 — All other operating income 7 4 5 Total operating income 644 426 650 OPERATING EXPENSE: Salaries and employee benefits 37 15 63 Interest expense 99 108 80 All other expenses 15 38 123 Total operating expense 151 161 266 Income before taxes and undistributed income 493 265 384 Income taxes (26 ) (29 ) (77 ) Income before undistributed earnings of subsidiaries 519 294 461 Equity in undistributed earnings of subsidiaries: Bank 522 543 402 Nonbank 4 3 2 Net income $1,045 $840 $865 Other comprehensive (loss) income, net of income taxes: Net pension plan activity arising during the period ($2 ) $1 $8 Net unrealized derivative instrument (losses) gains arising during the period (8 ) 2 — Net unrealized securities (losses) gains arising during the period — (2 ) 1 Other comprehensive (loss) income activity of the Parent Company, net of income taxes (10 ) 1 9 Other comprehensive (loss) income activity of Bank subsidiaries, net of income taxes (271 ) (16 ) 267 Total other comprehensive (loss) income, net of income taxes (281 ) (15 ) 276 Total comprehensive income $764 $825 $1,141 In accordance with federal and state banking regulations, dividends paid by the Company’s banking subsidiaries to the Company itself are generally limited to the retained earnings of the respective banking subsidiaries unless specifically approved by the appropriate bank regulator. The Company declared and paid total common stock dividends of $241 million in 2016 , $214 million in 2015 , and $806 million in 2014 . The Company also declared and paid preferred stock dividends of $14 million in 2016 and $7 million in 2015. CFG Parent Company Condensed Balance Sheets (in millions) December 31, 2016 December 31, 2015 ASSETS: Cash and due from banks $671 $531 Loans and advances to: Bank subsidiaries 1,156 1,725 Nonbank subsidiaries 20 — Investments in subsidiaries: Bank subsidiaries 20,116 19,865 Nonbank subsidiaries 50 54 Other assets 128 160 TOTAL ASSETS $22,141 $22,335 LIABILITIES: Long-term borrowed funds due to: Unaffiliated companies $2,318 $2,595 Balances due to nonbank subsidiaries — 1 Other liabilities 76 93 TOTAL LIABILITIES 2,394 2,689 TOTAL STOCKHOLDERS’ EQUITY 19,747 19,646 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $22,141 $22,335 CFG Parent Company Condensed Cash Flow Statements Year Ended December 31, (in millions) 2016 2015 2014 OPERATING ACTIVITIES Net income $1,045 $840 $865 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes 5 49 27 Gain on sales of assets (3 ) (3 ) — Equity in undistributed earnings of subsidiaries (526 ) (546 ) (404 ) (Decrease) increase in other liabilities (19 ) (48 ) 18 (Increase) decrease in other assets 35 (16 ) (74 ) Other operating, net (4 ) 3 17 Total adjustments (512 ) (561 ) (416 ) Net cash provided by operating activities 533 279 449 INVESTING ACTIVITIES Proceeds from sales of securities available for sale — 8 — Investments in and advances to subsidiaries (40 ) (215 ) (1,470 ) Repayment of investments in and advances to subsidiaries 588 376 945 Other investing, net (2 ) — (11 ) Net cash provided (used) by investing activities 546 169 (536 ) FINANCING ACTIVITIES Proceeds from issuance of long-term borrowed funds 349 1,000 1,000 Repayments of long-term borrowed funds (625 ) (750 ) — Proceeds from issuance of common stock 22 27 13 Treasury stock purchased (430 ) (500 ) (334 ) Net proceeds from issuance of preferred stock — 247 — Dividends declared and paid to common stockholders (241 ) (214 ) (806 ) Dividends declared and paid to preferred stockholders (14 ) (7 ) — Net cash used by financing activities (939 ) (197 ) (127 ) Increase (decrease) in cash and due from banks 140 251 (214 ) Cash and due from banks at beginning of year 531 280 494 Cash and due from banks at end of year $671 $531 $280 |
OTHER OPERATING EXPENSE
OTHER OPERATING EXPENSE | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSE | OTHER OPERATING EXPENSE The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2016 2015 2014 Deposit insurance $120 $115 $95 Promotional expense 98 101 86 Settlements and operating losses 62 43 89 Other 246 271 303 Other operating expense $526 $530 $573 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated the impacts of events that have occurred subsequent to December 31, 2016 through the date the Consolidated Financial Statements were filed with the SEC. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the Consolidated Financial Statements and related Notes, except as follows: On January 20, 2017, the Company announced that its Board declared a quarterly common stock dividend of $0.14 per share, or approximately $72 million , which was paid on February 16, 2017 to stockholders of record at the close of business on February 2, 2017. On February 16, 2017, the Company announced that its Board declared a semi-annual preferred dividend on its 5.500% Series A, Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock. The dividend of $27.50 per share, or $7 million in the aggregate, is payable on April 6, 2017 to the holders of record as of March 22, 2017. |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include the accounts of the Company and subsidiaries in which the Company has a controlling financial interest. All intercompany transactions and balances have been eliminated. The Company has evaluated its unconsolidated entities and does not believe that any entity in which it has an interest, but does not currently consolidate, meets the requirements to be consolidated as a variable interest entity. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for credit losses, evaluation and measurement of impairment of goodwill, evaluation of unrealized losses on securities for other-than-temporary impairment, accounting for income taxes, the valuation of AFS and HTM securities, and derivatives. |
Reclassifications | Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on net income, total comprehensive income, total assets or total stockholders’ equity as previously reported. |
Cash and Cash Equivalents | For the purposes of reporting cash flows, cash and cash equivalents have original maturities of three months or less and include cash and due from banks and interest-bearing cash and due from banks, primarily at the FRB. |
Interest-Bearing Deposits in Banks | Interest-bearing deposits in banks are carried at cost and include deposits that mature within one year. |
Securities | Investments include debt and marketable equity securities and other investment securities. The Company classifies debt securities as AFS, HTM, or trading based on management’s intent to hold to maturity at the time of purchase, and marketable equity securities as AFS or trading. Securities that will be held for indefinite periods of time and may be sold in response to changes in interest rates, changes in prepayment risk, or other factors considered in managing the Company’s asset/liability strategy are classified as AFS and reported at fair value, with unrealized gains and losses reported in OCI as a separate component of stockholders’ equity, net of taxes. Gains and losses on the sales of securities are recognized in noninterest income and are computed using the specific identification method. Premiums and discounts on debt securities are amortized or accreted using the effective interest method over the estimated lives of the individual securities. The Company uses actual prepayment experience and estimates of future prepayments to determine the constant effective yield necessary to apply the effective interest method of income recognition. Estimates of future prepayments are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved in making determinations about prepayment expectations and in changing those expectations in response to changes in interest rates and macroeconomic conditions. The amortization of premiums and discounts associated with mortgage-backed securities may be significantly impacted by changes in prepayment assumptions. The Company reviews its AFS securities for other-than-temporary impairment on a quarterly basis or more frequently if a potential loss triggering event occurs. The initial indicator of other-than-temporary impairment for both debt and equity securities is a decline in fair value below its recorded investment amount, as well as the severity and duration of the decline. For a security of which there has been a decline in fair value below the cost basis, the Company recognizes other-than-temporary impairment if (1) management has the intent to sell the security, (2) it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, or (3) the Company does not expect to recover the entire cost basis of the security. Estimating the recovery of the amortized cost basis of a debt security is based upon an assessment of the cash flows expected to be collected. If the present value of cash flows expected to be collected, discounted at the security’s effective yield, is less than amortized cost, other-than-temporary impairment is considered to have occurred. If the Company intends to sell the impaired security, or if it is more likely than not it will be required to sell the security before recovery, the impairment loss recognized in current period earnings equals the difference between the amortized cost basis and the fair value of the security. If the Company does not intend to sell the impaired security, and it is not likely that the Company will be required to sell the impaired security, the other-than-temporary impairment write-down is separated into an amount representing the credit loss, which is recognized in current period earnings and the amount related to all other factors, which is recognized in OCI. Debt securities for which the Company has the ability and intent to hold to maturity are classified as HTM. The securities are reported at cost and adjusted for amortization of premiums and accretion of discount. Interest income is recorded on the accrual basis adjusted for the amortization of premium and the accretion of discount. The Company recognizes other-than-temporary impairment when there is a decline in fair value and it does not expect to recover the entire amortized cost basis of the debt security. The amortized cost is written-down to fair value with the credit loss component recognized in current period earnings and remaining component recognized in OCI. Transfers of debt securities to the HTM classification are recognized at fair value at the date of transfer. Unrealized gains or losses from the transfer of AFS securities are retained in OCI and are amortized into earnings over the remaining life of the security using the effective interest method. Securities that are classified as trading are bought and held principally for the purpose of selling them in the near term and are carried at fair value, with changes in fair value recognized in earnings. When applicable, realized and unrealized gains and losses on such assets are reported in noninterest income in the Consolidated Statements of Operations. Other investment securities are primarily composed of FHLB stock and FRB stock (which are carried at cost) and money market mutual fund investments held by the Company’s broker-dealer (which are carried at fair value, with changes in fair value recognized in noninterest income). Other investment securities that are carried at cost are reviewed at least annually for impairment, with valuation adjustments recognized in noninterest income. |
Loans and Leases | Loans are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans. Deferred loan origination fees and costs and purchase premiums and discounts are amortized as an adjustment of yield over the life of the loan, using the effective interest method. Unamortized amounts remaining upon prepayment or sale are recorded as interest income or gain (loss) on sale, respectively. Credit card receivables include billed and uncollected interest and fees. Leases are classified at the inception of the lease. Direct financing lease receivables are reported at the aggregate of minimum lease payments receivable plus the estimated residual value of the leased property, less unearned and deferred income, including unamortized investment credits. Leveraged leases, which are a form of direct financing leases, are recorded net of related non-recourse debt. Lease residual values are reviewed at least annually for other-than-temporary impairment, with valuation adjustments recognized currently against other income for direct financing and leveraged leases. Unearned income is recognized as a constant percentage of outstanding lease financing balances over the lease terms in interest income. Loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail. Loans are classified upon origination or acquisition as either held-for-investment or held-for-sale. This classification is based on management’s initial intent and ability to hold the loans to maturity. Loans held for sale are carried at the lower of cost or fair value, with any write-downs or subsequent recoveries charged to other income. The Company accounts for certain loans held for sale, including those loans associated with our mortgage banking business and secondary loan trading desk, under the fair value option at fair value. |
Allowance for Credit Losses | Management’s estimate of probable losses in the Company’s loan and lease portfolios is recorded in the ALLL and the reserve for unfunded lending commitments. The Company evaluates the adequacy of the ALLL by performing reviews of certain individual loans and leases, analyzing changes in the composition, size and delinquency of the portfolio, reviewing previous loss experience and considering current and anticipated economic factors. The ALLL is established in accordance with the Company’s credit reserve policies, as approved by the Audit Committee of the Board of Directors. The Chief Financial Officer and Chief Risk Officer review the adequacy of the ALLL each quarter, together with risk management. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for credit losses. The ALLL is maintained at a level that management considers reflective of probable losses, and is established through charges to earnings in the form of a provision for credit losses. The ALLL may be adjusted to reflect the Company’s current assessment of various qualitative risks, factors and events that may not be measured in the statistical analysis. Such factors include trends in economic conditions, loan growth, back testing results, credit underwriting policy exceptions, regulatory and audit findings, and peer comparisons. Amounts determined to be uncollectible are deducted from the ALLL and subsequent recoveries, if any, are added to the ALLL. While management uses available information to estimate loan and lease losses, future additions to the ALLL may be necessary based on changes in economic conditions. The evaluation of the adequacy of the commercial, commercial real estate, and lease ALLL and reserve for unfunded lending commitments is primarily based on risk rating models that assess probability of default, loss given default and exposure at default on an individual loan basis. The models are primarily driven by individual customer financial characteristics and are validated against historical experience. Additionally, qualitative factors may be included in the risk rating models. After the aggregation of individual borrower incurred loss, additional overlays can be made based on back-testing against historical losses. For non-impaired retail loans, the ALLL is based upon an incurred loss model utilizing the probability of default, loss given default and exposure at default on an individual loan basis. When developing these factors, the Company may consider the loan product and collateral type, delinquency status, LTV ratio, lien position, borrower’s credit, time outstanding, geographic location and incurred loss period. Certain retail portfolios, including SBO home equity loans, student loans and commercial credit card receivables utilize roll rate models to estimate the ALLL. For the portfolios measured using the incurred loss model, roll rate models are also run as challenger models and can be used to support management overlays if deemed necessary. For nonaccruing commercial and commercial real estate loans with an outstanding balance of $3 million or greater and for all commercial and commercial real estate TDRs (regardless of size), the Company conducts further analysis to determine the probable amount of loss and establishes a specific allowance for the loan, if appropriate. The Company estimates the impairment amount by comparing the loan’s carrying amount to the estimated present value of its future cash flows, the fair value of its underlying collateral, or the loan’s observable market price. For collateral-dependent impaired commercial and commercial real estate loans, the excess of the Company’s recorded investment in the loan over the fair value of the collateral, less cost to sell, is charged off to the ALLL. For retail TDRs that are not collateral-dependent, allowances are developed using the present value of expected future cash flows compared to the recorded investment in the loans. Expected re-default factors are considered in this analysis. Retail TDRs that are deemed collateral-dependent are written down to fair market value less cost to sell. The fair value of collateral is periodically monitored subsequent to the modification. In addition to the ALLL, the Company also estimates probable credit losses associated with off balance sheet financial instruments such as standby letters of credit, financial guarantees and binding unfunded loan commitments. Off balance sheet financial instruments are subject to individual reviews and are analyzed and segregated by risk according to the Company’s internal risk rating scale. These risk classifications, in conjunction with historical loss experience, economic conditions and performance trends within specific portfolio segments, result in the estimate of the reserve for unfunded lending commitments. The ALLL and the reserve for unfunded lending commitments are reported on the Consolidated Balance Sheets in the allowance for loan and lease losses and in other liabilities, respectively. Provision for credit losses related to the loans and leases portfolio and the unfunded lending commitments are reported in the Consolidated Statements of Operations as provision for credit losses. |
Nonperforming Loans and Leases | Nonperforming loans and leases are those on which accrual of interest has been suspended. Loans (other than certain retail loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming when full payment of principle and interest is in doubt, unless the loan is both well secured and in the process of collection. When the Company places a loan on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and amortization of any net deferred fees is suspended. Interest collections on nonaccruing loans and leases for which the ultimate collectability of principal is uncertain are generally applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent of the cash received. A loan may be returned to accrual status if (1) principal and interest payments have been brought current, and the Company expects repayment of the remaining contractual principal and interest, (2) the loan or lease has otherwise become well-secured and in the process of collection, or (3) the borrower has been making regularly scheduled payments in full for the prior six months and the Company is reasonably assured that the loan or lease will be brought fully current within a reasonable period. Commercial loans, commercial real estate loans, and leases are generally placed on nonaccrual status when contractually past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Some of these loans and leases may remain on accrual status when contractually past due 90 days or more if management considers the loan collectible. Residential mortgages are generally placed on nonaccrual status when past due 120 days, or sooner if determined to be collateral-dependent, unless repayment of the loan is insured by the Federal Housing Administration. Credit card balances are placed on nonaccrual status when past due 90 days or more and are restored to accruing status if they subsequently become less than 90 days past due. All other retail loans are generally placed on nonaccrual status when past due 90 days or more, or earlier if management believes that the probability of collection is insufficient to warrant further accrual. Loans less than 90 days past due may be placed on nonaccrual status upon the death of the borrower, surrender or repossession of collateral, fraud or bankruptcy. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on these loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. Nonaccruing TDRs that meet the guidelines above for accrual status can be returned to accruing if supported by a well documented evaluation of the borrowers’ financial condition, and if they have been current for at least six months. |
Loan Charge-Offs | Commercial loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off involves many factors, including the prioritization of the Company’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. Retail loans are generally fully charged-off or written down to the net realizable value of the underlying collateral, with an offset to the ALLL, upon reaching specified stages of delinquency in accordance with standards established by the Federal Financial Institutions Examination Council (“FFIEC”). Residential real estate loans, credit card loans and unsecured open end loans are generally charged off in the month in which the account becomes 180 days past due. Auto loans, student loans and unsecured closed end loans are generally charged off in the month in which the account becomes 120 days past due. Certain retail loans will be charged off earlier than the FFIEC standards in the following circumstances: • A charge-off is recognized when a loan is modified in a TDR if the loan is determined to be collateral-dependent. A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources. • Loans to borrowers who have experienced an event (e.g. bankruptcy) that suggests a loss is either known or highly certain are subject to accelerated charge-off standards. Residential real estate and auto loans are charged down to the net realizable value when the loan becomes 60 days past due, or sooner if the loan is determined to be collateral-dependent. Credit card loans are fully charged off within 60 days of receiving notification of the bankruptcy filing or other event. Student loans are generally charged off when the loan becomes 60 days past due after receiving notification of a bankruptcy. • Auto loans are written down to net realizable value upon repossession of the collateral. |
Impaired Loans | A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all of the contractual interest and principal payments as scheduled in the loan agreement. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. Impaired loans include nonaccruing larger balance (greater than $3 million carrying value), non-homogeneous commercial and commercial real estate loans, and restructured loans that are deemed TDRs. When a loan is identified as impaired, the impairment is measured on an individual loan level as the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loan’s effective interest rate. When collateral is the sole source of repayment for the impaired loan, rather than the borrower’s income or other sources of repayment, the Company charges down the loan to its net realizable value. |
Troubled Debt Restructuring | The Company seeks to modify certain loans in conjunction with its loss-mitigation activities. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant time period to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Concessions may include lowering the interest rate, forgiving a portion of principal, extending the loan term, lowering scheduled payments for a specified period of time, principal forbearance, or capitalizing past due amounts. A rate increase can be considered a concession if the increased rate is lower than a market rate for loans with risk similar to that of the restructured loan. TDRs for commercial loans may also involve creating a multiple note structure, accepting non-cash assets, accepting an equity interest, or receiving a performance-based fee. In some cases a TDR may involve multiple concessions. The financial effects of TDRs for all loan classes may include lower income (either due to a lower interest rate or a delay in the timing of cash flows), larger loan loss provisions, and accelerated charge-offs if the modification renders the loan collateral-dependent. In some cases interest income throughout the term of the loan may increase if, for example, the loan term is extended or the interest rate is increased as a result of the restructuring. Loans are classified as TDRs until paid off, sold, or refinanced at market terms. Retail and commercial loans whose contractual terms have been modified in a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Retail loans that were discharged in bankruptcy and not reaffirmed by the borrower are deemed to be collateral-dependent TDRs and are generally charged off to the fair value of the collateral, less cost to sell, and less amounts recoverable under a government guarantee (if any). Cash receipts on nonaccruing impaired loans, including nonaccruing loans involved in TDRs, are generally applied to reduce the unpaid principal balance. Certain TDRs that are current in payment status are classified as nonaccrual in accordance with regulatory guidance. Income on the loans is generally recognized on a cash basis if management believes that the remaining book value of the loan is realizable. |
Premises and Equipment | Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization have been computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease (including renewal options if exercise of those options is reasonably assured) or their estimated useful life, whichever is shorter. Additions to property, plant and equipment are recorded at cost. The cost of major additions, improvements and betterments is capitalized. Normal repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. |
Software | Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, based upon the basic pattern of consumption and economic benefits provided by the asset. The Company begins to amortize the software when the asset (or identifiable component of the asset) is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets on the Consolidated Balance Sheets. |
Operating Lease Assets | Operating lease rental income for leased assets is recognized in other income on a straight-line basis over the lease term. Related depreciation expense is recorded on a straight-line basis over the estimated useful life, considering the estimated residual value of the leased asset. On a periodic basis, leased assets are reviewed for impairment. Impairment loss is recognized in other noninterest expense if the carrying amount of the leased assets exceeds fair value and is not recoverable. The carrying amount of leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the asset. |
Fair Value | The Company measures fair value using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based upon quoted market prices in an active market, where available. If quoted prices are not available, observable market-based inputs or independently sourced parameters are used to develop fair value, whenever possible. Such inputs may include prices of similar assets or liabilities, yield curves, interest rates, prepayment speeds, and foreign exchange rates. A portion of the Company’s assets and liabilities is carried at fair value, including AFS securities, derivative instruments and other investment securities. In addition, the Company elects to account for its residential mortgages held for sale at fair value. The Company classifies its assets and liabilities that are carried at fair value in accordance with the three-level valuation hierarchy: • Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by market data for substantially the full term of the asset or liability. • Level 3. Unobservable inputs that are supported by little or no market information and that are significant to the fair value measurement. Classification in the hierarchy is based upon the lowest level input that is significant to the fair value measurement of the asset or liability. For instruments classified in Levels 1 and 2 where inputs are primarily based upon observable market data, there is less judgment applied in arriving at the fair value. For instruments classified in Level 3, management judgment is more significant due to the lack of observable market data. The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next related to the observability of inputs in fair value measurements may result in a reclassification between the fair value hierarchy levels and are recognized based on period-end balances. Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. Examples of nonrecurring uses of fair value include MSRs accounted for by the amortization method, loan impairments for certain loans and leases, and goodwill. |
Goodwill | Goodwill is the purchase premium associated with the acquisition of a business and is assigned to reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is deemed to be not impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangible. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss that is recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. The Company reviews goodwill for impairment annually as of October 31, or more often if events or circumstances indicate that it is more likely than not that the fair value of one or more reporting units is below its carrying value. The fair values of the Company’s reporting units are determined using a combination of income and market-based approaches. The Company relies on the income approach (discounted cash flow method) for determining fair value. Market and transaction approaches are used as benchmarks only to corroborate the value determined by the discounted cash flow method. The Company relies on several assumptions when estimating the fair value of its reporting units using the discounted cash flow method. These assumptions include the discount rate, as well as projected loan loss, income tax and capital retention rates. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk and size premium adjustments specific to a particular reporting unit. The discount rates are also calibrated on the assessment of the risks related to the projected cash flows of each reporting unit. Cash flow projections include estimates for projected loan loss, income tax and capital retention rates. Multi-year financial forecasts are developed for each reporting unit by considering several key business drivers such as new business initiatives, customer retention standards, market share changes, anticipated loan and deposit growth, forward interest rates, historical performance, and industry and economic trends, among other considerations. The long-term growth rate used in determining the terminal value of each reporting unit is estimated based on management’s assessment of the minimum expected terminal growth rate of each reporting unit, as well as broader economic considerations such as GDP and inflation. The Company bases its fair value estimates on assumptions it believes to be representative of assumptions that a market participant would use in valuing the reporting unit but that are unpredictable and inherently uncertain, including estimates of future growth rates and operating margins and assumptions about the overall economic climate and the competitive environment for its reporting units. There can be no assurances that future estimates and assumptions made for purposes of goodwill testing will prove accurate predictions of the future. If the assumptions regarding business plans, competitive environments or anticipated growth rates are not achieved, the Company may be required to record goodwill impairment charges in future periods. |
Bank-Owned Life Insurance | Bank-owned life insurance is stated at its cash surrender value. The Company is the beneficiary of life insurance policies on current and former officers and selected employees of the Company. |
Employee Benefits | Pension costs under defined benefit plans are actuarially computed and include current service costs and amortization of prior service costs over the participants’ average future working lifetime. The actuarial cost method used in determining the net periodic pension cost is the projected unit method. The cost of postretirement and postemployment benefits other than pensions is recognized on an accrual basis during the periods employees provide services to earn those benefits. |
Share-Based Compensation | The Company has share-based employee compensation plans as outlined in Note 24 “Share-Based Compensation,” pursuant to which stock awards are granted to employees and non-employee directors. The Company measures compensation expense related to stock awards based upon the fair value of the awards on the grant date, adjusted for forfeitures. The related expense is charged to earnings on a straight-line basis over the requisite service period (e.g., vesting period) of the award. With respect to performance-based stock awards, compensation expense is adjusted upward or downward based upon the probability of achievement of performance. Awards that continue to vest after retirement are expensed over the shorter of the period of time from grant date to the final vesting date or from the grant date to the date when an employee is retirement eligible. Awards granted to employees who are retirement eligible at the grant date are generally expensed immediately upon grant. |
Derivatives | The Company is party to a variety of derivative transactions, including interest rate swap contracts, interest rate options, foreign exchange contracts, residential loan commitment rate locks, forward sale contracts, warrants and purchase options. The Company enters into contracts in order to meet the financing needs of its customers. The Company also enters into contracts as a means of reducing its interest rate and foreign currency risks, and these contracts are designated as hedges when acquired, based on management’s intent. The Company monitors the results of each transaction to ensure that management’s intent is satisfied. All derivatives, whether designated for hedging relationships or not, are recognized in the Consolidated Balance Sheets at fair value. For derivatives designated for hedging purposes, net interest accruals are treated as an adjustment of interest income or interest expense of the item being hedged. If a derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI, a component of stockholders’ equity. The ineffective portions of cash flow hedges are immediately recognized as an adjustment to other income. For cash flow hedging relationships that have been discontinued, balances in OCI are reclassified to interest income or interest expense in the periods during which the hedged item affects income. If it is probable that the hedged forecasted transaction will not occur, balances in OCI are reclassified immediately to other income. If a derivative is designated as a fair value hedge, gains or losses attributable to the change in fair value of the derivative instrument, as well as the gains and losses attributable to the change in fair value of the hedged item, are recognized in other income in the period in which the change in fair value occurs. Hedge ineffectiveness is recognized as other income to the extent the changes in fair value of the derivative do not offset the changes in fair value of the hedged item. Changes in the fair value of derivatives that do not qualify as hedges are recognized immediately in other income. Derivative assets and derivative liabilities are netted by counterparty on the balance sheet if a “right of setoff” has been established in a master netting agreement between the Company and the counterparty. This netted derivative asset or liability position is also netted against the fair value of any cash collateral that has been pledged or received in accordance with a CSA. |
Transfers and Servicing of Financial Assets | A transfer of financial assets is accounted for as a sale when control over the assets transferred is surrendered. Assets transferred that satisfy the conditions of a sale are derecognized, and all assets obtained and liabilities incurred in a purchase are recognized and measured at fair value. Servicing rights retained in the transfer of financial assets are initially recognized at fair value. Subsequent to the initial recognition date, the Company recognizes periodic amortization expense of servicing rights and assesses servicing rights for impairment. |
Variable Interest Entities | The Company makes equity investments in various entities that are considered VIEs, as defined by GAAP. A VIE typically does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties. The Company’s variable interest arises from contractual, ownership or other monetary interests in the entity, which change with fluctuations in the fair value of the entity's net assets. The Company consolidates a VIE if it is the primary beneficiary of the entity. The Company is the primary beneficiary of a VIE if its variable interest provides it with the power to direct the activities that most significantly impact the VIE and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to the VIE. To determine whether or not a variable interest held could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIE. The Company assesses whether or not it is the primary beneficiary of a VIE on an ongoing basis. |
Mortgage Banking | Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in mortgage banking fees. The Company recognizes the right to service mortgage loans for others, or MSRs, as assets whether the Company purchases the MSRs or the MSRs result from a sale. MSRs are initially accounted for at fair value, and subsequently accounted for in the Consolidated Balance Sheets net of accumulated amortization, which is recorded in proportion to, and over the period of, net servicing income. The Company’s identification of MSRs in a single class is determined based on the availability of market inputs and the Company’s method of managing MSR risks. For the purpose of impairment evaluation and measurement, MSRs are stratified based on predominant risk characteristics (such as interest rate, loan size, origination date, term, or geographic location) of the underlying loans. An allowance is then established in the event the recorded value of an individual stratum exceeds fair value. The Company accounts for derivatives in its mortgage banking operations at fair value on the balance sheet as derivative assets or derivative liabilities, depending on whether the derivative had a positive (asset) or negative (liability) fair value as of the balance sheet date. The Company’s mortgage banking derivatives include commitments to originate mortgages held for sale, certain loan sale agreements, and other financial instruments that meet the definition of a derivative. |
Income Taxes | The Company uses an asset and liability (balance sheet) approach for financial accounting and reporting of income taxes. This results in two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the current period. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences in the bases of assets and liabilities, as measured by tax laws, and their bases, as reported in the Consolidated Financial Statements. Deferred tax assets are recognized for net operating loss carryforwards and tax credit carryforwards. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amounts that management concludes are more likely than not to be realized. The Company also assesses the probability that the positions taken, or expected to be taken, in its income tax returns will be sustained by taxing authorities. A “more likely than not” (more than 50 percent) recognition threshold must be met before a tax benefit can be recognized. Tax positions that are more likely than not to be sustained are reflected in the Company’s Consolidated Financial Statements. Tax positions are measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The difference between the benefit recognized for a position and the tax benefit claimed on a tax return is referred to as an unrecognized tax benefit. |
Treasury Stock | The purchase of the Company’s common stock is recorded at cost. At the date of retirement or subsequent reissuance, treasury stock is reduced by the cost of such stock on a first-in, first-out basis with differences recorded in additional paid-in capital or retained earnings, as applicable |
Revenue Recognition | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Interest income on loans and securities classified as AFS or HTM is determined using the effective interest method. This method calculates periodic interest income at a constant effective yield on the net investment in the loan or security, to provide a constant rate of return over the terms of the financial assets. Financial assets accounted for using the fair value option, are measured at fair value with corresponding changes recognized in noninterest income. Loan commitment fees for loans that are likely to be drawn down, and other credit related fees, are deferred (together with any incremental costs) and recognized as an adjustment to the effective interest rate on the loan. When it is unlikely that a loan will be drawn down, the loan commitment fees are recognized over the commitment period on a straight-line basis. Other types of noninterest revenues, such as service charges on deposits, interchange income on credit cards and trust revenues, are accrued and recognized into income as services are provided and the amount of fees earned are reasonably determinable. |
Earnings Per Share | Basic EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period. Net income/(loss) available to common stockholders represents net income after preferred stock dividends, accretion of the discount on preferred stock issuances, and gains or losses from any repurchases of preferred stock. Diluted EPS is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during each period, plus potential dilutive shares such as share-based payment awards and warrants using the treasury stock method. |
Recent Accounting Pronouncements | In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” The ASU provides guidance on classifying specific cash flows in the Statement of Cash Flows, including cash flows resulting from debt prepayment or debt extinguishment costs, the settlement of zero-coupon debt instruments (and other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing), payments on a transferor’s beneficial interests in securitized trade receivables, and other specified sources. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” Under current GAAP, the Company reflects credit losses on financial assets measured on an amortized cost basis only when the losses are probable or have been incurred. The ASU replaces this approach with a forward-looking methodology that reflects expected credit losses over the lives of financial assets, starting when the assets are first acquired. Under the revised methodology, credit losses will be measured using a current expected credit losses model based on past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets. The ASU also revises the approach to recognizing credit losses on debt securities available for sale by allowing entities to record reversals of credit losses in current-period earnings. The ASU is effective for the Company beginning on January 1, 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company has begun its implementation efforts by establishing a company-wide, cross-discipline governance structure. The Company is currently identifying key interpretive issues, and is comparing existing credit loss forecasting models and processes with the new guidance to determine what modifications may be required. While the Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements, the Company expects the ASU will result in an earlier recognition of credit losses and an increase in the allowance for credit losses. In March 2016, the FASB issued ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting.” The ASU modifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-05 “Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The ASU clarifies that a change in a counterparty to a derivative instrument that has been designated as a hedging instrument, in and of itself, does not result in a hedge de-designation under ASC 815. The ASU is effective for the Company beginning on January 1, 2017. Adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. The ASU generally requires lessees to recognize a right-of-use asset and corresponding lease liability for all leases with a lease term of greater than one year. The ASU requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. In addition, this ASU requires expanded disclosures about the nature and terms of lease agreements. The ASU is effective for the Company beginning on January 1, 2019, using a modified cumulative effect approach wherein the guidance is applied to all periods presented. The Company has begun its implementation efforts and is currently evaluating the potential impact on the Consolidated Financial Statements of its existing lease contracts and service contracts that may include embedded leases. The Company expects an increase of its Consolidated Balance Sheets as a result of recognizing lease liabilities and right of use assets; the extent of such increase is under evaluation. The Company does not expect material changes to the recognition of operating lease expense in its Consolidated Statements of Operations. In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments (Topic 825) - Recognition and Measurement of Financial Assets and Financial Liabilities.” The ASU requires equity investments (except for those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in the fair value recognized through net income. The ASU also requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the notes to the financial statements. In addition, the ASU makes several other targeted amendments to the existing accounting and disclosure requirements for financial instruments, including revised guidance related to valuation allowance assessments when recognizing deferred tax assets on unrealized losses on debt securities available for sale. The ASU is effective for the Company beginning on January 1, 2018. Adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The ASU requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received. The ASU also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. The Company’s revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the ASU, and noninterest income. The Company has begun its implementation efforts which include the identification of revenue within the scope of the guidance, as well as the evaluation of related revenue contracts. Based on this effort, adoption of the ASU is not expected to have a material impact on the timing of revenue recognition. The Company plans to adopt the revenue recognition guidance in the first quarter of 2018. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities held | The following table presents the major components of securities at amortized cost and fair value: December 31, 2016 December 31, 2015 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale U.S. Treasury and other $30 $— $— $30 $16 $— $— $16 State and political subdivisions 8 — — 8 9 — — 9 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 19,231 78 (264 ) 19,045 17,234 153 (67 ) 17,320 Other/non-agency 427 2 (28 ) 401 555 4 (37 ) 522 Total mortgage-backed securities 19,658 80 (292 ) 19,446 17,789 157 (104 ) 17,842 Total debt securities available for sale 19,696 80 (292 ) 19,484 17,814 157 (104 ) 17,867 Marketable equity securities 5 — — 5 5 — — 5 Other equity securities 12 — — 12 12 — — 12 Total equity securities available for sale 17 — — 17 17 — — 17 Total securities available for sale $19,713 $80 ($292 ) $19,501 $17,831 $157 ($104 ) $17,884 Securities Held to Maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities $4,126 $12 ($44 ) $4,094 $4,105 $27 ($11 ) $4,121 Other/non-agency 945 19 — 964 1,153 23 — 1,176 Total securities held to maturity $5,071 $31 ($44 ) $5,058 $5,258 $50 ($11 ) $5,297 Other Investment Securities, at Fair Value Money market mutual fund $91 $— $— $91 $65 $— $— $65 Other investments 5 — — 5 5 — — 5 Total other investment securities, at fair value $96 $— $— $96 $70 $— $— $70 Other Investment Securities, at Cost Federal Reserve Bank stock $463 $— $— $463 $468 $— $— $468 Federal Home Loan Bank stock 479 — — 479 395 — — 395 Total other investment securities, at cost $942 $— $— $942 $863 $— $— $863 |
Other than temporary impairment recognized in earnings | The Company has reviewed its securities portfolio for other-than-temporary impairments. The following table presents the net securities impairment losses recognized in earnings: Year Ended December 31, (in millions) 2016 2015 2014 Other-than-temporary impairment: Total other-than-temporary impairment losses ($39 ) ($43 ) ($45 ) Portions of loss recognized in other comprehensive income (before taxes) 27 36 35 Net securities impairment losses recognized in earnings ($12 ) ($7 ) ($10 ) |
Schedule of unrealized loss on investments | The following tables present securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer: December 31, 2016 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses State and political subdivisions 1 $8 $— — $— $— 1 $8 $— Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 323 15,387 (292 ) 25 461 (16 ) 348 15,848 (308 ) Other/non-agency 4 8 — 20 302 (28 ) 24 310 (28 ) Total mortgage-backed securities 327 15,395 (292 ) 45 763 (44 ) 372 16,158 (336 ) Total 328 $15,403 ($292 ) 45 $763 ($44 ) 373 $16,166 ($336 ) December 31, 2015 Less than 12 Months 12 Months or Longer Total (dollars in millions) Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses Number of Issues Fair Value Gross Unrealized Losses State and political subdivisions 1 $9 $— — $— $— 1 $9 $— US Treasury and other 1 15 — — — — 1 15 — Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 162 7,423 (51 ) 36 819 (27 ) 198 8,242 (78 ) Other/non-agency 2 9 — 20 361 (37 ) 22 370 (37 ) Total mortgage-backed securities 164 7,432 (51 ) 56 1,180 (64 ) 220 8,612 (115 ) Total 166 $7,456 ($51 ) 56 $1,180 ($64 ) 222 $8,636 ($115 ) |
Schedule of credit losses recognized in earnings | The following table presents the cumulative credit related losses recognized in earnings on debt securities held by the Company: Year Ended December 31, (in millions) 2016 2015 2014 Cumulative balance at beginning of period $66 $62 $56 Credit impairments recognized in earnings on securities that have been previously impaired 12 7 10 Reductions due to increases in cash flow expectations on impaired securities (1) (3 ) (3 ) (4 ) Cumulative balance at end of period $75 $66 $62 (1) Reported in interest income from investment securities on the Consolidated Statements of Operations. |
Schedule of investments classified by maturity date | The amortized cost and fair value of debt securities at December 31, 2016 by contractual maturity are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties. Distribution of Maturities (in millions) 1 Year or Less 1-5 Years 5-10 Years After 10 Years Total Amortized Cost: Debt securities available for sale: U.S. Treasury and other $30 $— $— $— $30 State and political subdivisions — — — 8 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 27 1,177 18,026 19,231 Other/non-agency — 36 3 388 427 Total debt securities available for sale 31 63 1,180 18,422 19,696 Debt securities held to maturity: Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,126 4,126 Other/non-agency — — — 945 945 Total debt securities held to maturity — — — 5,071 5,071 Total amortized cost of debt securities $31 $63 $1,180 $23,493 $24,767 Fair Value: Debt securities available for sale U.S. Treasury and other $30 $— $— $— $30 State and political subdivisions — — — 8 8 Mortgage-backed securities: Federal agencies and U.S. government sponsored entities 1 28 1,194 17,822 19,045 Other/non-agency — 36 3 362 401 Total debt securities available for sale 31 64 1,197 18,192 19,484 Debt securities held to maturity Mortgage-backed securities: Federal agencies and U.S. government sponsored entities — — — 4,094 4,094 Other/non-agency — — — 964 964 Total debt securities held to maturity — — — 5,058 5,058 Total fair value of debt securities $31 $64 $1,197 $23,250 $24,542 |
Schedule of income recognized on investment securities | Realized gains and losses on securities are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Gains on sale of debt securities $18 $41 $33 Losses on sale of debt securities (2 ) (12 ) (5 ) Debt securities gains, net $16 $29 $28 Equity securities gains $3 $3 $— |
Schedule of financial instruments owned and pledged as collateral | The amortized cost and fair value of securities pledged are presented below: December 31, 2016 December 31, 2015 (in millions) Amortized Cost Fair Value Amortized Cost Fair Value Pledged against repurchase agreements $631 $620 $805 $808 Pledged against FHLB borrowed funds 953 972 1,163 1,186 Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law 3,575 3,563 3,579 3,610 |
Schedule of effect of repurchase agreements on balance sheet accounts | The impact of this offsetting on the Consolidated Balance Sheets is presented in the following table: December 31, 2016 December 31, 2015 (in millions) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Gross Assets (Liabilities) Gross Assets (Liabilities) Offset Net Amounts of Assets (Liabilities) Securities purchased under agreements to resell $— $— $— $500 ($500 ) $— Securities sold under agreements to repurchase — — — (500 ) 500 — Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 16 “Derivatives.” |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of loans and leases | A summary of the loans and leases portfolio is presented below: December 31, (in millions) 2016 2015 Commercial $37,274 $33,264 Commercial real estate 10,624 8,971 Leases 3,753 3,979 Total commercial 51,651 46,214 Residential mortgages 15,115 13,318 Home equity loans 1,858 2,557 Home equity lines of credit 14,100 14,674 Home equity loans serviced by others 750 986 Home equity lines of credit serviced by others 219 389 Automobile 13,938 13,828 Student 6,610 4,359 Credit cards 1,691 1,634 Other retail 1,737 1,083 Total retail 56,018 52,828 Total loans and leases (1) (2) $107,669 $99,042 (1) Excluded from the table above are loans held for sale totaling $625 million and $365 million as of December 31, 2016 and 2015 , respectively. (2) Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.3 billion and $17.6 billion at December 31, 2016 and 2015 , respectively. |
Schedule of investment in leases, before the ALLL | A summary of the investment in leases, before the ALLL, is presented below: December 31, (in millions) 2016 2015 Direct financing leases $3,670 $3,898 Leveraged leases 83 81 Total leases $3,753 $3,979 The components of the investment in leases, before the ALLL, are presented below: December 31, (in millions) 2016 2015 Total future minimum lease rentals $2,922 $3,195 Estimated residual value of leased equipment (non-guaranteed) 1,166 1,157 Initial direct costs 20 22 Unearned income on minimum lease rentals and estimated residual value of leased equipment (355 ) (395 ) Total leases $3,753 $3,979 |
Schedule of future minimum lease rentals on direct financing and leveraged leases | The future minimum lease rentals on direct financing and leveraged leases at December 31, 2016 are presented below: Year (in millions) 2017 $647 2018 610 2019 532 2020 401 2021 274 Thereafter 458 Total $2,922 |
ALLOWANCE FOR CREDIT LOSSES, 40
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for credit losses | A summary of changes in the allowance for credit losses is presented below: Year ended December 31, 2016 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $596 $620 $1,216 Charge-offs (79 ) (457 ) (536 ) Recoveries 33 168 201 Net charge-offs (46 ) (289 ) (335 ) Provision charged to income 113 242 355 Allowance for loan and lease losses, end of period 663 573 1,236 Reserve for unfunded lending commitments, beginning of period 58 — 58 Provision (credit) for unfunded lending commitments 14 — 14 Reserve for unfunded lending commitments as of period end 72 — 72 Total allowance for credit losses as of period end $735 $573 $1,308 Year Ended December 31, 2015 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $544 $651 $1,195 Charge-offs (36 ) (444 ) (480 ) Recoveries 49 147 196 Net recoveries (charge-offs) 13 (297 ) (284 ) Provision charged to income 39 266 305 Allowance for loan and lease losses, end of period 596 620 1,216 Reserve for unfunded lending commitments, beginning of period 61 — 61 Provision (credit) for unfunded lending commitments (3 ) — (3 ) Reserve for unfunded lending commitments as of period end 58 — 58 Total allowance for credit losses as of period end $654 $620 $1,274 Year Ended December 31, 2014 (in millions) Commercial Retail Total Allowance for loan and lease losses, beginning of period $498 $723 $1,221 Charge-offs (43 ) (450 ) (493 ) Recoveries 58 112 170 Net recoveries (charge-offs) 15 (338 ) (323 ) Provision charged to income 31 266 297 Allowance for loan and lease losses, end of period 544 651 1,195 Reserve for unfunded lending commitments, beginning of period 39 — 39 Provision (credit) for unfunded lending commitments 22 — 22 Reserve for unfunded lending commitments as of period end 61 — 61 Total allowance for credit losses as of period end $605 $651 $1,256 |
Schedule of loans and leases based on evaluation method | The recorded investment in loans and leases based on the Company’s evaluation methodology is presented below: December 31, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $424 $799 $1,223 $218 $1,165 $1,383 Formula-based evaluation 51,227 55,219 106,446 45,996 51,663 97,659 Total $51,651 $56,018 $107,669 $46,214 $52,828 $99,042 |
Schedule of allowance for credit losses by evaluation method | A summary of the allowance for credit losses by evaluation method is presented below: December 31, 2016 December 31, 2015 (in millions) Commercial Retail Total Commercial Retail Total Individually evaluated $63 $43 $106 $36 $101 $137 Formula-based evaluation 672 530 1,202 618 519 1,137 Allowance for credit losses $735 $573 $1,308 $654 $620 $1,274 |
Schedule of classes of commercial loans and leases based on regulatory classifications | The recorded investment in commercial loans and leases based on regulatory classification ratings is presented below: December 31, 2016 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $35,010 $1,015 $1,027 $222 $37,274 Commercial real estate 10,146 370 58 50 10,624 Leases 3,583 52 103 15 3,753 Total $48,739 $1,437 $1,188 $287 $51,651 December 31, 2015 Criticized (in millions) Pass Special Mention Substandard Doubtful Total Commercial $31,276 $911 $1,002 $75 $33,264 Commercial real estate 8,450 272 171 78 8,971 Leases 3,880 55 44 — 3,979 Total $43,606 $1,238 $1,217 $153 $46,214 |
Schedule of retail loan investments categorized by delinquency status | The recorded investment in classes of retail loans, categorized by delinquency status is presented below: December 31, 2016 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $14,807 $108 $53 $12 $135 $15,115 Home equity loans 1,628 127 23 7 73 1,858 Home equity lines of credit 13,432 396 57 20 195 14,100 Home equity loans serviced by others 673 41 14 5 17 750 Home equity lines of credit serviced by others 158 25 3 2 31 219 Automobile 12,509 1,177 172 38 42 13,938 Student 6,379 151 24 13 43 6,610 Credit cards 1,611 43 12 9 16 1,691 Other retail 1,676 45 8 4 4 1,737 Total $52,873 $2,113 $366 $110 $556 $56,018 December 31, 2015 Days Past Due (in millions) Current 1-29 30-59 60-89 90 or More Total Residential mortgages $12,905 $97 $54 $16 $246 $13,318 Home equity loans 2,245 164 32 12 104 2,557 Home equity lines of credit 13,982 407 60 20 205 14,674 Home equity loans serviced by others 886 60 14 6 20 986 Home equity lines of credit serviced by others 296 48 10 6 29 389 Automobile 12,670 964 127 32 35 13,828 Student 4,175 113 19 11 41 4,359 Credit cards 1,554 44 11 9 16 1,634 Other retail 1,013 53 8 4 5 1,083 Total $49,726 $1,950 $335 $116 $701 $52,828 |
Schedule of nonperforming loans and leases by class | The following table presents nonperforming loans and leases and loans accruing and 90 days or more past due: Nonperforming (1) Accruing and 90 days or more past due (in millions) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial $322 $71 $2 $1 Commercial real estate 50 77 — — Leases 15 — — — Total commercial 387 148 2 1 Residential mortgages (2) (3) 144 331 18 — Home equity loans 98 135 — — Home equity lines of credit 243 272 — — Home equity loans serviced by others 32 38 — — Home equity lines of credit serviced by others 33 32 — — Automobile 50 42 — — Student 38 41 5 6 Credit cards 16 16 — — Other retail 4 5 1 2 Total retail 658 912 24 8 Total $1,045 $1,060 $26 $9 (1) Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million . (2) Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of December 31, 2016 , $18 million of these loans were accruing and 90 days or more past due. (3) Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of December 31, 2016 these loans totaled $32 million . These loans are consolidated on the Company’s Consolidated Balance Sheets. |
Schedule of nonperforming assets | A summary of other nonperforming assets is presented below: December 31, (in millions) 2016 2015 Nonperforming assets, net of valuation allowance: Commercial $— $1 Retail 49 45 Nonperforming assets, net of valuation allowance $49 $46 |
Summary of key performance indicators | A summary of key performance indicators is presented below: December 31, 2016 2015 Nonperforming commercial loans and leases as a percentage of total loans and leases (1) 0.36 % 0.15 % Nonperforming retail loans as a percentage of total loans and leases (1) 0.61 0.92 Total nonperforming loans and leases as a percentage of total loans and leases (1) 0.97 % 1.07 % Nonperforming commercial assets as a percentage of total assets (1) 0.26 % 0.11 % Nonperforming retail assets as a percentage of total assets (1) 0.47 0.69 Total nonperforming assets as a percentage of total assets (1) 0.73 % 0.80 % (1) December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. |
Analysis of age of past due amounts | An analysis of the age of both accruing and nonaccruing loan and lease past due amounts is presented below: December 31, 2016 December 31, 2015 Days Past Due Days Past Due (in millions) 30-59 60-89 90 or More Total 30-59 60-89 90 or More Total Commercial $36 $4 $324 $364 $9 $4 $71 $84 Commercial real estate 1 2 50 53 30 3 77 110 Leases 1 — 15 16 9 1 — 10 Total commercial 38 6 389 433 48 8 148 204 Residential mortgages 53 12 135 200 54 16 246 316 Home equity loans 23 7 73 103 32 12 104 148 Home equity lines of credit 57 20 195 272 60 20 205 285 Home equity loans serviced by others 14 5 17 36 14 6 20 40 Home equity lines of credit serviced by others 3 2 31 36 10 6 29 45 Automobile 172 38 42 252 127 32 35 194 Student 24 13 43 80 19 11 41 71 Credit cards 12 9 16 37 11 9 16 36 Other retail 8 4 4 16 8 4 5 17 Total retail 366 110 556 1,032 335 116 701 1,152 Total $404 $116 $945 $1,465 $383 $124 $849 $1,356 |
Schedule of impaired loans by class | A summary of impaired loans by class is presented below: December 31, 2016 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $247 $55 $134 $431 $381 Commercial real estate 39 8 4 44 43 Total commercial 286 63 138 475 424 Residential mortgages 37 2 141 235 178 Home equity loans 51 3 94 191 145 Home equity lines of credit 23 1 173 240 196 Home equity loans serviced by others 41 4 19 70 60 Home equity lines of credit serviced by others 2 — 7 13 9 Automobile 4 — 15 25 19 Student 154 25 1 155 155 Credit cards 26 6 — 26 26 Other retail 10 2 1 13 11 Total retail 348 43 451 968 799 Total $634 $106 $589 $1,443 $1,223 December 31, 2015 (in millions) Impaired Loans With a Related Allowance Allowance on Impaired Loans Impaired Loans Without a Related Allowance Unpaid Contractual Balance Total Recorded Investment in Impaired Loans Commercial $92 $23 $58 $144 $150 Commercial real estate 56 13 12 70 68 Total commercial 148 36 70 214 218 Residential mortgages 121 16 320 608 441 Home equity loans 85 11 139 283 224 Home equity lines of credit 27 2 167 234 194 Home equity loans serviced by others 50 8 24 88 74 Home equity lines of credit serviced by others 3 1 7 14 10 Automobile 3 — 11 19 14 Student 163 48 2 165 165 Credit cards 28 11 — 28 28 Other retail 13 4 2 18 15 Total retail 493 101 672 1,457 1,165 Total $641 $137 $742 $1,671 $1,383 |
Schedule of additional information on impaired loans | Additional information on impaired loans is presented below: Year Ended December 31, 2016 2015 2014 (in millions) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Commercial $5 $295 $4 $135 $9 $198 Commercial real estate — 53 1 44 2 98 Leases — 3 — — — — Total commercial 5 351 5 179 11 296 Residential mortgages 4 161 15 415 14 429 Home equity loans 7 144 9 222 8 246 Home equity lines of credit 6 178 4 173 4 149 Home equity loans serviced by others 3 60 4 75 5 91 Home equity lines of credit serviced by others — 9 — 9 — 11 Automobile — 14 — 11 — 7 Student 7 150 7 157 8 153 Credit cards 2 23 2 26 2 31 Other retail 1 12 1 16 1 21 Total retail 30 751 42 1,104 42 1,138 Total $35 $1,102 $47 $1,283 $53 $1,434 |
Troubled debt restructurings on financing receivables | The table below summarizes how loans were modified during the year ended December 31, 2016 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2016 and were paid off in full, charged off, or sold prior to December 31, 2016 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 12 $1 $1 81 $20 $21 Commercial real estate 1 — — 1 5 5 Total commercial 13 1 1 82 25 26 Residential mortgages 71 10 10 60 10 10 Home equity loans 97 6 6 39 4 5 Home equity lines of credit 49 4 4 121 13 12 Home equity loans serviced by others 18 1 1 — — — Home equity lines of credit serviced by others 8 — — 5 1 1 Automobile 138 3 3 41 1 1 Student — — — — — — Credit cards 2,187 12 12 — — — Other retail 4 — — — — — Total retail 2,572 36 36 266 29 29 Total 2,585 $37 $37 348 $54 $55 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 14 $48 $48 $3 $— Commercial real estate — — — — — Total commercial 14 48 48 3 — Residential mortgages 247 26 26 (1 ) — Home equity loans 279 18 17 (1 ) — Home equity lines of credit 304 23 22 — 1 Home equity loans serviced by others 60 2 2 — — Home equity lines of credit serviced by others 24 1 1 — — Automobile 1,081 20 18 — 3 Student 479 12 12 4 — Credit cards — — — 3 — Other retail 13 — — — — Total retail 2,487 102 98 5 4 Total 2,501 $150 $146 $8 $4 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The table below summarizes how loans were modified during the year ended December 31, 2015 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2015 and were paid off in full, charged off, or sold prior to December 31, 2015 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $19 $19 160 $22 $22 Commercial real estate 1 — — 1 — — Total commercial 26 19 19 161 22 22 Residential mortgages 153 31 31 40 7 6 Home equity loans 96 5 5 191 35 35 Home equity lines of credit 4 1 1 23 2 2 Home equity loans serviced by others 29 2 2 — — — Home equity lines of credit serviced by others 2 — — 1 — — Automobile 108 2 2 5 — — Student — — — — — — Credit cards 2,413 13 13 — — — Other retail 3 — — — — — Total retail 2,808 54 54 260 44 43 Total 2,834 $73 $73 421 $66 $65 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 16 $34 $34 ($1 ) $1 Commercial real estate 1 4 4 — — Total commercial 17 38 38 (1 ) 1 Residential mortgages 275 33 33 (1 ) — Home equity loans 448 28 28 — 1 Home equity lines of credit 320 21 19 — 2 Home equity loans serviced by others 124 6 5 — 1 Home equity lines of credit serviced by others 41 3 2 — — Automobile 812 14 12 — 2 Student 1,204 22 22 4 — Credit cards — — — 2 — Other retail 20 — — — — Total retail 3,244 127 121 5 6 Total 3,261 $165 $159 $4 $7 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. The table below summarizes how loans were modified during the year ended December 31, 2014 , the charge-offs related to the modifications, and the impact on the ALLL. The reported balances can include loans that became TDRs during 2014 and were paid off in full, charged off, or sold prior to December 31, 2014 . Primary Modification Types Interest Rate Reduction (1) Maturity Extension (2) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial 25 $8 $7 131 $21 $22 Commercial real estate 9 1 2 15 3 2 Total commercial 34 9 9 146 24 24 Residential mortgages 126 17 17 40 6 5 Home equity loans 125 8 9 85 5 6 Home equity lines of credit 7 — — 276 17 16 Home equity loans serviced by others 42 2 2 — — — Home equity lines of credit serviced by others 4 — — 1 — — Automobile 75 1 1 18 — — Student — — — — — — Credit cards 2,165 12 12 — — — Other retail 3 — — — — — Total retail 2,547 40 41 420 28 27 Total 2,581 $49 $50 566 $52 $51 Primary Modification Types Other (3) (dollars in millions) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Net Change to ALLL Resulting from Modification Charge-offs Resulting from Modification Commercial 27 $52 $74 $3 $— Commercial real estate 1 7 7 — 3 Total commercial 28 59 81 3 3 Residential mortgages 393 47 46 (4 ) 1 Home equity loans 1,046 63 62 (1 ) 2 Home equity lines of credit 356 25 21 — 5 Home equity loans serviced by others 138 5 5 (1 ) — Home equity lines of credit serviced by others 39 2 2 — — Automobile 1,039 17 13 — 5 Student 1,675 31 31 5 — Credit cards — — — — — Other retail 57 2 1 (1 ) — Total retail 4,743 192 181 (2 ) 13 Total 4,771 $251 $262 $1 $16 (1) Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. (2) Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). (3) Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post-modification balances being higher than pre-modification. |
Schedule of defaults | The table below summarizes TDRs that defaulted within 12 months of their modification date during 2016 , 2015 and 2014 . For purposes of this table, a payment default refers to a loan that becomes 90 days or more past due under the modified terms. Amounts represent the loan’s recorded investment at the time of payment default. Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 2016 and 2015 . If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell. The amount written off is charged to the ALLL. Year Ended December 31, 2016 2015 2014 (dollars in millions) Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Number of Contracts Balance Defaulted Commercial 22 $13 23 $2 37 $12 Commercial real estate 1 — — — 3 1 Total commercial 23 13 23 2 40 13 Residential mortgages 187 24 168 21 301 35 Home equity loans 50 3 184 13 329 24 Home equity lines of credit 155 13 131 7 229 12 Home equity loans serviced by others 37 1 43 1 60 2 Home equity lines of credit serviced by others 17 — 22 1 20 — Automobile 110 2 87 1 112 1 Student 59 1 171 3 355 7 Credit cards 433 3 455 3 579 3 Other retail 3 — 4 — 12 — Total retail 1,051 47 1,265 50 1,997 84 Total 1,074 $60 1,288 $52 2,037 $97 |
Schedule of loans that may increase credit exposure | The following tables present balances of loans with these characteristics: December 31, 2016 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student Total High loan-to-value $566 $550 $476 $— $— $1,592 Interest only/negative amortization 1,582 — — — 1 1,583 Low introductory rate — — — 112 — 112 Multiple characteristics and other 3 — — — — 3 Total $2,151 $550 $476 $112 $1 $3,290 December 31, 2015 (in millions) Residential Mortgages Home Equity Loans and Lines of Credit Home Equity Products Serviced by Others Credit Cards Student Total High loan-to-value $649 $1,038 $785 $— $— $2,472 Interest only/negative amortization 1,110 — — — — 1,110 Low introductory rate — 3 — 96 — 99 Multiple characteristics and other 14 — — — — 14 Total $1,773 $1,041 $785 $96 $— $3,695 |
VARIABLE INTEREST ENTITIES VARI
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Schedule of Variable Interest Entities | A summary of these investments is presented below: December 31, (in millions) 2016 2015 LIHTC investment included in other assets $793 $598 LIHTC unfunded commitments included in other liabilities 428 365 Renewable energy investments included in other assets 220 118 |
Schedule of Affordable Housing Tax Credit Investments | The following table presents the other information related to the Company’s affordable housing tax credit investments for the years ended December 31, 2016, and 2015. Year Ended December 31, (in millions) 2016 2015 Tax credits included in the provision for income taxes $59 $45 Amortization expense included in the provision for income taxes 59 45 Other tax benefits included in the provision for income taxes 21 17 |
PREMISES, EQUIPMENT, AND SOFT42
PREMISES, EQUIPMENT, AND SOFTWARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of the carrying value of premises and equipment | A summary of the carrying value of premises and equipment is presented below: December 31, (dollars in millions) Useful Lives 2016 2015 Land and land improvements 15 years $47 $25 Buildings and leasehold improvements 7-40 years 684 634 Furniture, fixtures and equipment 5-15 years 1,714 1,667 Total premises and equipment, gross 2,445 2,326 Accumulated depreciation (1,844 ) (1,731 ) Total premises and equipment, net $601 $595 |
Schedule of estimated future amortization expense for capitalized software assets | The estimated future amortization expense for capitalized software assets is presented below: Year (in millions) 2017 $160 2018 139 2019 108 2020 78 2021 41 Thereafter 114 Total (1) $640 (1) Excluded from this balance is $138 million of in-process software at December 31, 2016 . |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of aggregate minimum rental commitments | At December 31, 2016 , the aggregate minimum rental commitments under these non-cancelable operating leases and capital leases, exclusive of renewals, are presented below for the years ended December 31: (in millions) Operating Leases Capital Leases 2017 $182 $7 2018 157 3 2019 122 2 2020 102 2 2021 82 2 Thereafter 164 9 Total minimum lease payments $809 $25 Amounts representing interest N/A (9 ) Present value of net minimum lease payments N/A $16 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | There were no changes in the carrying value of goodwill for the years ended December 31, 2016 and 2015 as presented below: (in millions) Consumer Banking Commercial Banking Total Balance at December 31, 2014 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2015 $2,136 $4,740 $6,876 Adjustments — — — Balance at December 31, 2016 $2,136 $4,740 $6,876 |
MORTGAGE BANKING (Tables)
MORTGAGE BANKING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |
Schedule of valuation allowance for impairment of recognized servicing assets | Changes related to MSRs are presented below: As of and for the Year Ended December 31, (in millions) 2016 2015 MSRs: Balance as of January 1 $173 $184 Amount capitalized 29 26 Amortization (35 ) (37 ) Carrying amount before valuation allowance 167 173 Valuation allowance for servicing assets: Balance as of January 1 9 18 Valuation recovery (4 ) (9 ) Balance at end of period 5 9 Net carrying value of MSRs $162 $164 |
Servicing asset at amortized cost | Changes related to MSRs are presented below: As of and for the Year Ended December 31, (in millions) 2016 2015 MSRs: Balance as of January 1 $173 $184 Amount capitalized 29 26 Amortization (35 ) (37 ) Carrying amount before valuation allowance 167 173 Valuation allowance for servicing assets: Balance as of January 1 9 18 Valuation recovery (4 ) (9 ) Balance at end of period 5 9 Net carrying value of MSRs $162 $164 |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights | The key economic assumptions used to estimate the value of MSRs are presented in the following table: December 31, 2016 2015 (dollars in millions) Weighted Average Range Weighted Average Range Fair value $182 Min Max $178 Min Max Weighted average life (in years) 5.7 2.6 7.3 5.4 2.8 6.2 Weighted average constant prepayment rate 10.8% 8.8% 22.3% 11.6% 10.7% 22.2 % Weighted average discount rate 9.7% 9.1% 12.1% 9.7% 9.1% 12.1 % |
Schedule of fair value assumptions used to estimate the value of Mortgage Servicing Rights capitalized in current period | The key economic assumptions used in estimating the fair value of MSRs capitalized during the period are presented below: Year Ended December 31, 2016 2015 2014 Weighted average life (in years) 6.1 5.9 5.8 Weighted average constant prepayment rate 11.0% 10.7% 11.7% Weighted average discount rate 9.7% 9.7% 10.3% |
Schedule of the impact to fair value of an adverse change in key economic assumptions | The sensitivity analysis below presents the impact to current fair value of an immediate 50 basis points and 100 basis points adverse change in the key economic assumptions and presents the decline in fair value that would occur if the adverse change were realized. These sensitivities are hypothetical, with the effect of a variation in a particular assumption on the fair value of the mortgage servicing rights is calculated independently without changing any other assumption. In reality, changes in one factor may result in changes in another (e.g., changes in interest rates, which drive changes in prepayment rates, could result in changes in the discount rates), which may amplify or counteract the sensitivities. The primary risk inherent in the Company’s MSRs is an increase in prepayments of the underlying mortgage loans serviced, which is dependent upon market movements of interest rates. December 31, (in millions) 2016 2015 Prepayment rate: Decline in fair value from a 50 basis point decrease in interest rates $9 $5 Decline in fair value from a 100 basis point decrease in interest rates $25 $11 Weighted average discount rate: Decline in fair value from a 50 basis point increase in weighted average discount rate $3 $3 Decline in fair value from a 100 basis point increase in weighted average discount rate $6 $6 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of the major components of deposits | The major components of deposits are presented below: December 31, (in millions) 2016 2015 Demand $28,472 $27,649 Checking with interest 20,714 17,921 Regular savings 8,964 8,218 Money market accounts 38,176 36,727 Term deposits 13,478 12,024 Total deposits $109,804 $102,539 |
Schedule of maturity distribution of term deposits | The maturity distribution of term deposits as of December 31, 2016 is presented below: Year (in millions) 2017 $11,402 2018 1,428 2019 214 2020 325 2021 103 2022 and thereafter 6 Total $13,478 |
Schedule of maturities of term deposits greater than $100,000 | The remaining maturities of these deposits are presented below: (in millions) Three months or less $3,531 After three months through six months 1,152 After six months through twelve months 2,671 After twelve months 850 Total term deposits $8,204 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowed funds | A summary of the Company’s short-term borrowed funds is presented below: December 31, (in millions) 2016 2015 Federal funds purchased $533 $— Securities sold under agreements to repurchase 615 802 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,211 2,630 Total short-term borrowed funds $4,359 $3,432 Key data related to short-term borrowed funds is presented in the following table: As of and for the Year Ended December 31, (dollars in millions) 2016 2015 2014 Weighted-average interest rate at year-end: (1) Federal funds purchased and securities sold under agreements to repurchase 0.26 % 0.15 % 0.14 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.94 0.44 0.26 Maximum amount outstanding at month-end during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $1,522 $5,375 $7,022 Other short-term borrowed funds (primarily current portion of FHLB advances) 5,461 7,004 7,702 Average amount outstanding during the year: Federal funds purchased and securities sold under agreements to repurchase (2) $947 $3,364 $5,699 Other short-term borrowed funds (primarily current portion of FHLB advances) 3,207 5,865 5,640 Weighted-average interest rate during the year: (1) Federal funds purchased and securities sold under agreements to repurchase 0.09 % 0.22 % 0.12 % Other short-term borrowed funds (primarily current portion of FHLB advances) 0.64 0.28 0.25 (1) Rates exclude certain hedging costs. (2) Balances are net of certain short-term receivables associated with reverse repurchase agreements. |
Schedule of long-term borrowed funds | A summary of the Company’s long-term borrowed funds is presented below: December 31, (in millions) 2016 2015 Citizens Financial Group, Inc.: 4.150% fixed rate subordinated debt, due 2022 (1) $347 $350 5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023 333 333 3.750% fixed rate subordinated debt, due 2024 (2) 250 250 4.023% fixed rate subordinated debt, due 2024 (3) 42 331 4.082% fixed rate subordinated debt, due 2025 (4) — 331 4.350% fixed rate subordinated debt, due 2025 (5) 249 250 4.300% fixed rate subordinated debt, due 2025 (6) 749 750 2.375% fixed rate senior unsecured debt, due 2021 (7) 348 — Banking Subsidiaries: 1.600% senior unsecured notes, due 2017 (8) (9) — 749 2.300% senior unsecured notes, due 2018 (8) (10) 745 747 2.450% senior unsecured notes, due 2019 (8) (11) 747 752 2.500% senior unsecured notes, due 2019 (8)(12) 741 — 2.550% senior unsecured notes, due 2021 (8)(13) 965 — Federal Home Loan advances due through 2033 7,264 5,018 Other 10 25 Total long-term borrowed funds $12,790 $9,886 (1) These balances are composed of: principal balances of $350 million at December 31, 2016 and 2015 , as well as the impact of ($3) million of unamortized deferred issuance costs and discount at December 31, 2016 . (2) Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153% . (3) These balances are composed of: principal balance of $42 million and $333 million at December 31, 2016 and 2015 , respectively, as well as the impact from interest rate swaps of zero and ($2) million at December 31, 2016 and 2015 , respectively. See Note 16 “Derivatives” for further information. In addition, the Company repurchased $125 million and $166 million of these securities on March 7, 2016 and July 28, 2016, respectively. (4) This subordinated debt was retired in 2016. At December 31, 2015 , this balance was composed of a principal balance of $334 million ; impact from interest rate swaps of ($3) million at December 31, 2015 . See Note 16 “Derivatives” for further information. On July 28, 2016, the Company repurchased $334 million of these securities. (5) These balances are composed of: principal balances of $250 million at December 31, 2016 and 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016 . (6) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 , as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016 . (7) This balance is composed of: principal balance of $350 million at December 31, 2016 , as well as the impact of ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . (8) These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. (9) This balance was reclassified to short-term borrowed funds at December 31, 2016 . At December 31, 2015 the balance was composed of: principal balances of $750 million ; impact from interest rate swaps of ($1) million . See Note 16 “Derivatives” for further information. (10) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 ; impact from interest rate swaps of ($3) million at December 31, 2016 and 2015 ; and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (11) These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015 ; impact from interest rate swaps of zero and $2 million at December 31, 2016 and 2015 , respectively; and ($3) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (12) This balance is composed of: principal balance of $750 million at December 31, 2016 ; impact from interest rate swaps of ($7) million and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. (13) This balance is composed of: principal balance of $1.0 billion at December 31, 2016 ; impact from interest rate swaps of ($30) million and ($5) million of unamortized deferred issuance costs and discount at December 31, 2016 . See Note 16 “Derivatives” for further information. |
Schedule of maturities of long-term borrowed funds | A summary of maturities for the Company’s long-term borrowed funds at December 31, 2016 is presented below: (in millions) CFG Parent Company Banking Subsidiaries Consolidated Year 2017 or on demand $— $— $— 2018 — 8,000 8,000 2019 — 1,489 1,489 2020 — 2 2 2021 348 970 1,318 2022 and thereafter 1,970 11 1,981 Total $2,318 $10,472 $12,790 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Allocation of Plan Assets | The qualified plan’s allocation by asset category is presented below: Target Asset Allocation Actual Asset Allocation Asset Category 2016 2016 2015 Equity securities 45-55% 49.6 % 47.1 % Debt securities 40-50% 45.2 % 47.3 % Other 0-10% 5.2 % 5.6 % Total 100.0 % 100.0 % |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Changes in the fair value of defined benefit pension plan assets, projected benefit obligation, funded status, and accumulated benefit obligation are presented below: Year Ended December 31, Qualified Plan Non-Qualified Plan (in millions) 2016 2015 2016 2015 Fair value of plan assets as of January 1 $917 $923 $— $— Actual return (loss) on plan assets 82 (41 ) — — Employer contributions 75 100 8 9 Benefits and administrative expenses paid (59 ) (65 ) (8 ) (9 ) Fair value of plan assets as of December 31 1,015 917 — — Projected benefit obligation 1,024 977 105 103 Pension obligation ($9 ) ($60 ) ($105 ) ($103 ) Accumulated benefit obligation $1,024 $977 $105 $103 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in OCI are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Net periodic pension income ($1 ) ($7 ) ($8 ) Net actuarial loss 54 7 237 Amortization of prior service credit 1 — — Amortization of net actuarial loss (16 ) (15 ) (10 ) Divestiture — — (35 ) Total recognized in other comprehensive income (loss) 39 (8 ) 192 Total recognized in net periodic pension cost and other comprehensive income (loss) $38 ($15 ) $184 |
Schedule of net periodic (income) cost | The components of net periodic pension (income) cost for the Company's qualified and non-qualified plans are presented below: Year Ended December 31, Qualified Plan Non-Qualified Plan Total (in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $3 $3 $3 $— $— $— $3 $3 $3 Interest cost 44 44 47 4 4 5 48 48 52 Expected return on plan assets (68 ) (74 ) (73 ) — — — (68 ) (74 ) (73 ) Amortization of actuarial loss 14 13 9 2 2 1 16 15 10 Net periodic pension (income) cost ($7 ) ($14 ) ($14 ) $6 $6 $6 ($1 ) ($8 ) ($8 ) |
Schedule of Expected Benefit Payments | Expected future benefit payments for the qualified and non-qualified plans are presented below: (in millions) Expected benefit payments by fiscal year ended December 31, 2017 $62 December 31, 2018 63 December 31, 2019 63 December 31, 2020 64 December 31, 2021 66 December 31, 2022 - 2026 339 |
Schedule of Fair Value of Plan Assets | The following table presents qualified pension plan assets measured at fair value within the fair value hierarchy: Fair Value Measurements as of December 31, 2016 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $— $— $— $— Managed portfolio assets: Cash and money market funds 2 — 2 — U.S. government obligations 10 — 10 — Municipal obligations 2 — 2 — Corporate bonds 89 — 89 — Asset-backed securities 1 — 1 — Total assets in the fair value hierarchy 104 — 104 — Investments measured at net asset value (1) 918 Assets at fair value at measurement date of December 31, 2016 $1,022 $— $104 $— (1) Certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The following table presents qualified pension plan assets and liabilities measured at fair value within the fair value hierarchy: Fair Value Measurements as of December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Assets: Cash and money market funds $4 $— $4 $— Mutual funds International equity funds 47 47 — — Managed portfolio assets Cash and money market funds 4 — 4 — U.S. government obligations 35 — 35 — Municipal obligations 1 — 1 — Corporate bonds 84 — 84 — Asset-backed securities 5 — 5 — Mortgage-backed securities 1 — 1 — Derivative assets - interest rate forwards 1 — 1 — Total assets in the fair value hierarchy 182 47 135 — Investments measured at net asset value 767 Assets at fair value at measurement date of December 31, 2015 $949 $47 $135 $— Liabilities: Managed portfolio liabilities: Derivative liabilities - interest rate forwards $1 $— $1 $— Derivative liabilities - credit default swaps 1 — 1 — Total liabilities measured at fair value $2 $— $2 $— |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following table presents the unfunded commitments, redemption frequency and redemption notice period for Plan investments that utilize net asset value to determine fair value: Fair Value Estimated Using Net Asset Value per Share December 31, Unfunded Redemption Redemption Redemption Investment (dollars in millions) 2016 2015 Commitment Frequency Restrictions Notice Period Liquid Cash Fund $9 $— $— Daily None Same day before 5:30pm ET Equity Mutual Fund (1) 40 9 — Daily None 7 days Common and Collective Funds: Global equities funds 386 220 — Daily None 3 days Balanced funds 193 196 — Daily None 2 days Fixed income fund 133 120 — Daily None 3 days Managed Portfolio - Fixed Income Mutual Fund (2) 30 20 — Daily None 1 days Limited Partnerships: International equity fund 117 107 — Monthly None 3 days International equity — 95 — Daily None 10 days Offshore feeder fund 10 — — Monthly None 14 days Total $918 $767 $— (1) The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principal investment objective is to generate positive total return. (2) The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. |
Qualified and Non-Qualified Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost | Weighted-average rates assumed in determining the actuarial present value of benefit obligations and net periodic benefit cost are presented below: As of and for the Year Ended December 31, 2016 2015 2014 Assumptions for benefit obligations Discount rate-qualified plan 4.190 % 4.640 % 4.125 % Discount rate-non-qualified plan 4.050 % 4.540 % 3.875 % Expected long-term rate of return on plan assets 7.500 % 7.500 % 7.500 % Assumptions for net periodic pension cost Discount rate-qualified plan 4.640 % 4.125 % 5.00/4.25% (1) Discount rate-non-qualified plan 4.540 % 3.875 % 4.75/4.00% (2) Expected long-term rate of return on plan assets 7.500 % 7.500 % 7.500 % (1) 5.00% for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. (2) 4.75% for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. |
Postretirement Benefit Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Cost | Weighted-average rates assumed in determining the net periodic benefit cost of the postretirement benefits plan are as follows: For the Year Ended December 31, (dollars in millions) 2016 2015 Discount rate 3.930 % 3.500 % Rate of compensation increase N/A N/A Ultimate health care cost trend rate 5.000 % 5.000 % Effect on accumulated postretirement benefit obligation: One percent increase in assumed health care cost trend $— $— One percent decrease in assumed health care cost trend — — |
Schedule of Expected Benefit Payments | Expected future benefit payments for the postretirement benefit plan are presented below: (in millions) Expected benefit payments by fiscal year ended December 31, 2017 $2 December 31, 2018 2 December 31, 2019 1 December 31, 2020 1 December 31, 2021 1 December 31, 2022 - 2026 6 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Comprehensive Income Tax | Total income tax expense is presented below: Year Ended December 31, (in millions) 2016 2015 2014 Income tax expense $489 $423 $403 Tax effect of changes in OCI (168 ) (12 ) 154 Total comprehensive income tax expense $321 $411 $557 |
Schedule of Components of Income Tax Expense | Components of income tax expense are presented below: (in millions) Current Deferred Total Year Ended December 31, 2016 U.S. federal $292 $159 $451 State and local 44 (6 ) 38 Total $336 $153 $489 Year Ended December 31, 2015 U.S. federal $162 $225 $387 State and local 12 24 36 Total $174 $249 $423 Year Ended December 31, 2014 U.S. federal $224 $145 $369 State and local 38 (4 ) 34 Total $262 $141 $403 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differed from the U.S. federal income tax rate of 35% in 2016 , 2015 and 2014 as presented below: Year Ended December 31, 2016 2015 2014 (dollars in millions) Amount Rate Amount Rate Amount Rate U.S. Federal income tax expense and tax rate $537 35.0 % $442 35.0 % $444 35.0 % Increase (decrease) resulting from: State and local income taxes (net of federal benefit) 38 2.5 27 2.1 22 1.7 Bank-owned life insurance (19 ) (1.2 ) (20 ) (1.6 ) (17 ) (1.3 ) Tax-exempt interest (19 ) (1.3 ) (17 ) (1.3 ) (15 ) (1.2 ) Tax advantaged investments (including related credits) (31 ) (2.0 ) (16 ) (1.2 ) (27 ) (2.1 ) Other tax credits (14 ) (0.9 ) — — — — Non-deductible expenses — — 8 0.6 — — Other (3 ) (0.2 ) (1 ) (0.1 ) (4 ) (0.3 ) Total income tax expense and tax rate $489 31.9 % $423 33.5 % $403 31.8 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, (in millions) 2016 2015 Deferred tax assets: Other comprehensive income $409 $241 Allowance for credit losses 471 465 State net operating loss carryforwards 75 137 Accrued expenses not currently deductible 129 135 Investment and other tax credit carryforwards 52 — Deferred income 22 40 Fair value adjustments 40 36 Other — 5 Total deferred tax assets 1,198 1,059 Valuation allowance (107 ) (123 ) Deferred tax assets, net of valuation allowance 1,091 936 Deferred tax liabilities: Leasing transactions 881 882 Amortization of intangibles 522 455 Depreciation 234 213 Pension and other employee compensation plans 103 69 MSRs 49 47 Other 16 — — Total deferred tax liabilities 1,805 1,666 Net deferred tax liability $714 $730 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is presented below: December 31, (in millions) 2016 2015 2014 Balance at the beginning of the year $62 $72 $33 Gross decrease for tax positions related to prior years (19 ) (6 ) — Gross increase for tax positions related to prior years 1 — 60 Decreases for tax positions as a result of the lapse of the statutes of limitations (2 ) (3 ) (1 ) Decreases for tax positions related to settlements with taxing authorities — (1 ) (20 ) Balance at end of year $42 $62 $72 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in consolidated balance sheets | The following table presents derivative instruments included on the Consolidated Balance Sheets in derivative assets and derivative liabilities: December 31, 2016 December 31, 2015 (in millions) Notional Amount (1) Derivative Assets Derivative Liabilities Notional Amount (1) Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments: Interest rate contracts $13,350 $52 $193 $16,750 $96 $50 Derivatives not designated as hedging instruments: Interest rate contracts 54,656 557 452 33,719 540 455 Foreign exchange contracts 8,039 134 126 8,366 163 156 Other contracts 1,498 16 7 981 8 5 Total derivatives not designated as hedging instruments 707 585 711 616 Gross derivative fair values 759 778 807 666 Less: Gross amounts offset in the Consolidated Balance Sheets (2) (106 ) (106 ) (178 ) (178 ) Less: Cash collateral applied (2) (26 ) (13 ) (4 ) (3 ) Total net derivative fair values presented in the Consolidated Balance Sheets (3) $627 $659 $625 $485 (1) The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. (2) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. (3) The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 3 “Securities” for further information |
Schedule of fair value hedges | The following table presents the effect of fair value hedges on other income: The Effect of Fair Value Hedges on Other Income Amounts Recognized in Other Income for the Year Ended December 31, 2016 2015 2014 (in millions) Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Derivative Hedged Item Hedge Ineffectiveness Hedges of interest rate risk on borrowings using interest rate swaps ($6 ) $5 ($1 ) ($2 ) $2 $— ($4 ) $4 $— |
Schedule of effect of cash flow hedges on net income and stockholders' equity | The following table presents the effect of cash flow hedges on net income and stockholders’ equity: Amounts Recognized for the Year Ended December 31, (in millions) 2016 2015 2014 Effective portion of (loss) gain recognized in OCI (1) ($100 ) $150 $334 Amounts reclassified from OCI to interest income (2) 90 82 72 Amounts reclassified from OCI to interest expense (2) (27 ) (59 ) (99 ) Amounts reclassified from OCI to other income (3) (5 ) — — (1) The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. (2) This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. (3) This includes gains and losses attributable to previously hedged cash flow where the likelihood of occurrence is no longer ‘probable’. |
Schedule of effect of derivative Instruments on net income | The following table presents the effect of customer derivatives and economic hedges on noninterest income: Amounts Recognized in Noninterest Income for the Year Ended December 31, (in millions) 2016 2015 2014 Customer derivative contracts Customer interest rate contracts (1) ($23 ) $140 $240 Customer foreign exchange contracts (2) (81 ) (18 ) (59 ) Residential loan commitments (3) (2 ) (4 ) 6 Economic hedges Offsetting derivatives transactions to hedge interest rate risk on customer interest rate contracts (1) 70 (106 ) (209 ) Offsetting derivatives transactions to hedge foreign exchange risk on customer foreign exchange contracts (2) 95 19 58 Forward sale contracts (3) 6 1 (3 ) Total $65 $32 $33 (1) Reported in other income on the Consolidated Statements of Operations. (2) Reported in foreign exchange and letter of credit fees on the Consolidated Statements of Operations. (3) Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding off balance sheet arrangements | A summary of outstanding off-balance sheet arrangements is presented below: December 31, (in millions) 2016 2015 Commitment amount: Undrawn commitments to extend credit $60,872 $56,524 Financial standby letters of credit 1,892 2,010 Performance letters of credit 40 42 Commercial letters of credit 43 87 Marketing rights 44 47 Risk participation agreements 19 26 Residential mortgage loans sold with recourse 8 10 Total $62,918 $58,746 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale measured at fair value: December 31, 2016 December 31, 2015 (in millions) Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Aggregate Fair Value Aggregate Unpaid Principal Aggregate Fair Value Less Aggregate Unpaid Principal Residential mortgage loans held for sale, at fair value $504 $505 ($1 ) $268 $263 $5 Commercial and commercial real estate loans held for sale, at fair value 79 79 — 57 57 — |
Assets and liabilities measured on recurring basis | The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2016 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $19,446 $— $19,446 $— State and political subdivisions 8 — 8 — Equity securities 17 — 17 — U.S. Treasury and other 30 30 — — Total securities available for sale 19,501 30 19,471 — Loans held for sale, at fair value: Residential loans held for sale 504 — 504 — Commercial loans held for sale 79 — 79 — Total loans held for sale, at fair value 583 — 583 — Derivative assets: Interest rate swaps 609 — 609 — Foreign exchange contracts 134 — 134 — Other contracts 16 — 16 — Total derivative assets 759 — 759 — Other investment securities, at fair value: Money market mutual fund 91 91 — — Other investments 5 — 5 — Total other investment securities, at fair value 96 91 5 — Total assets $20,939 $121 $20,818 $— Derivative liabilities: Interest rate swaps $645 $— $645 $— Foreign exchange contracts 126 — 126 — Other contracts 7 — 7 — Total derivative liabilities 778 — 778 — Total liabilities $778 $— $778 $— The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2015 : (in millions) Total Level 1 Level 2 Level 3 Securities available for sale: Mortgage-backed securities $17,842 $— $17,842 $— State and political subdivisions 9 — 9 — Equity securities 17 — 17 — U.S. Treasury 16 15 1 — Total securities available for sale 17,884 15 17,869 — Loans held for sale, at fair value: Residential loans held for sale 268 — 268 — Commercial loans held for sale 57 — 57 — Total loans held for sale, at fair value 325 — 325 — Derivative assets: Interest rate swaps 636 — 636 — Foreign exchange contracts 163 — 163 — Other contracts 8 — 8 — Total derivative assets 807 — 807 — Other investment securities, at fair value: Money market mutual fund 65 65 — — Other investments 5 — 5 — Total other investment securities, at fair value 70 65 5 — Total assets $19,086 $80 $19,006 $— Derivative liabilities: Interest rate swaps $505 $— $505 $— Foreign exchange contracts 156 — 156 — Other contracts 5 — 5 — Total derivative liabilities 666 — 666 — Total liabilities $666 $— $666 $— The changes in Level 3 assets measured at fair value on a recurring basis are presented below: Year Ended December 31, (in millions) 2016 2015 2014 Beginning of year balance $— $5 $5 Purchases, issuances, sales and settlements — — — Net (losses) gains — — — Transfers from Level 3 to Level 2 — (5 ) — End of year balance $— $— $5 Net unrealized gain (loss) included in net income for the year relating to assets held at year end $— $— $— |
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings | The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings: Year Ended December 31, (in millions) 2016 2015 2014 Impaired collateral-dependent loans ($33 ) ($32 ) ($101 ) MSRs 4 9 5 Foreclosed assets (3 ) (3 ) (3 ) Leased assets 11 — — |
Fair value of assets and liabilities measured on a nonrecurring basis | The following table presents assets and liabilities measured at fair value on a nonrecurring basis: December 31, 2016 December 31, 2015 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Impaired collateral-dependent loans $355 $— $355 $— $60 $— $60 $— MSRs 182 — — 182 178 — — 178 Foreclosed assets 44 — 44 — 42 — 42 — Leased assets 158 — 158 — — — — — |
Assets and liabilities measured at fair value | The following table presents the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions: December 31, 2016 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Financial Assets: Securities held to maturity $5,071 $5,058 $— $— $5,071 $5,058 $— $— Other investment securities, at cost 942 942 — — 942 942 — — Other loans held for sale 42 42 — — — — 42 42 Loans and leases 107,669 107,537 — — 355 355 107,314 107,182 Financial Liabilities: Deposits 109,804 109,796 — — 109,804 109,796 — — Federal funds purchased and securities sold under agreements to repurchase 1,148 1,148 — — 1,148 1,148 — — Other short-term borrowed funds 3,211 3,211 — — 3,211 3,211 — — Long-term borrowed funds 12,790 12,849 — — 12,790 12,849 — — December 31, 2015 Total Level 1 Level 2 Level 3 (in millions) Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Securities held to maturity $5,258 $5,297 $— $— $5,258 $5,297 $— $— Other investment securities, at cost 863 863 — — 863 863 — — Other loans held for sale 40 40 — — — — 40 40 Loans and leases 99,042 99,026 — — 60 60 98,982 98,966 Financial Liabilities: Deposits 102,539 102,528 — — 102,539 102,528 — — Federal funds purchased and securities sold under agreements to repurchase 802 802 — — 802 802 — — Other short-term borrowed funds 2,630 2,630 — — 2,630 2,630 — — Long-term borrowed funds 9,886 9,837 — — 9,886 9,837 — — |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company’s capital and capital ratios under Basel III Transitional rules as of December 31, 2016 and 2015, respectively. Certain Basel III requirements are subject to phase-in through 2019, which are used in this report of actual regulatory ratios. In addition, the Company has declared itself as an “AOCI opt-out” institution, which means the Company is not required to recognize within regulatory capital the impacts of net unrealized gains and losses included within AOCI for available for sale securities, accumulated net gains and losses on cash-flow hedges, net gains and losses on certain defined benefit pension plan assets, and net unrealized gains and losses on securities held to maturity. Transitional Basel III FDIA Requirements Actual Minimum Capital Adequacy Classification as Well-capitalized (6) (dollars in millions) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Common equity tier 1 capital (1) (5) $13,822 11.2 % $6,348 5.125 % $8,051 6.5 % Tier 1 capital (2) (5) 14,069 11.4 8,206 6.625 9,909 8.0 Total capital (3)(5) 17,347 14.0 10,683 8.625 12,386 10.0 Tier 1 leverage (4) 14,069 9.9 5,667 4.000 7,084 5.0 As of December 31, 2015 Common equity tier 1 capital (1) $13,389 11.7 % $5,134 4.5 % $7,415 6.5 % Tier 1 capital (2) 13,636 12.0 6,845 6.0 9,127 8.0 Total capital (3) 17,505 15.3 9,127 8.0 11,408 10.0 Tier 1 leverage (4) 13,636 10.5 5,218 4.0 6,523 5.0 (1) “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (2) “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. (3) “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. (4) “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. (5) “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0 .625% . (6) Presented for informational purposes. Prompt corrective action provisions apply only to insured depository institutions-in our case CBNA and CBPA. |
EXIT COSTS AND RESTRUCTURING 54
EXIT COSTS AND RESTRUCTURING RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring and related costs | The following tables present the activity in the exit costs and restructuring reserves recognized in other liabilities in the Consolidated Balance Sheets: (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total Reserve balance as of January 1, 2014 $2 $24 $— $26 Additions 43 24 57 124 Reversals (1 ) (5 ) (4 ) (10 ) Utilization (21 ) (25 ) (50 ) (96 ) Reserve balance as of December 31, 2014 23 18 3 44 Additions 5 18 8 31 Reversals (4 ) (1 ) — (5 ) Utilization (12 ) (19 ) (6 ) (37 ) Reserve balance as of December 31, 2015 12 16 5 33 Additions 2 — — 2 Reversals (2 ) — — (2 ) Utilization (11 ) (7 ) (5 ) (23 ) Reserve balance as of December 31, 2016 $1 $9 $— $10 |
RECLASSIFICATIONS OUT OF ACCU55
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of other comprehensive income | The following table presents the changes in the balances, net of income taxes, of each component of AOCI: (in millions) Net Unrealized (Losses) Gains on Derivatives Net Unrealized (Losses) Gains on Securities Employee Benefit Plans Total AOCI Balance at January 1, 2014 ($298 ) ($91 ) ($259 ) ($648 ) Other comprehensive income before reclassifications 212 198 — 410 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income 17 (11 ) (118 ) (112 ) Net other comprehensive income 229 165 (118 ) 276 Balance at December 31, 2014 ($69 ) $74 ($377 ) ($372 ) Other comprehensive income before reclassifications 93 (66 ) — 27 Other-than-temporary impairment not recognized in earnings on securities — (22 ) — (22 ) Amounts reclassified from other comprehensive income (14 ) (14 ) 8 (20 ) Net other comprehensive income (loss) 79 (102 ) 8 (15 ) Balance at December 31, 2015 $10 ($28 ) ($369 ) ($387 ) Other comprehensive income before reclassifications (62 ) (139 ) — (201 ) Other-than-temporary impairment not recognized in earnings on securities — (17 ) — (17 ) Amounts reclassified from other comprehensive income (36 ) (2 ) (25 ) (63 ) Net other comprehensive loss (98 ) (158 ) (25 ) (281 ) Balance at December 31, 2016 ($88 ) ($186 ) ($394 ) ($668 ) |
Schedule of reclassification out of accumulated other comprehensive income | The following table reports the amounts reclassified out of each component of AOCI and into the Consolidated Statements of Operations: Year Ended December 31, (in millions) 2016 2015 2014 Details about AOCI Components Affected Line Item in the Consolidated Statements of Operations Reclassification adjustment for net derivative gains (losses) included in net income: $90 $82 $72 Interest income (27 ) (59 ) (99 ) Interest expense (5 ) — — Other income 58 23 (27 ) Income before income tax expense 22 9 (10 ) Income tax expense $36 $14 ($17 ) Net income Reclassification of net securities gains (losses) to net income: $16 $29 $28 Securities gains, net (12 ) (7 ) (10 ) Net securities impairment losses recognized in earnings 4 22 18 Income before income tax expense 2 8 7 Income tax expense $2 $14 $11 Net income Reclassification of changes related to employee benefit plans: $39 ($8 ) $192 Salaries and employee benefits 39 (8 ) 192 Income before income tax expense 14 — 74 Income tax expense $25 ($8 ) $118 Net income Total reclassification gains $63 $20 $112 Net income The following table presents the effects to net income of the amounts reclassified out of AOCI: Year Ended December 31, (in millions) 2016 2015 2014 Net interest income (includes $63, $23 and ($27) of AOCI reclassifications, respectively) $3,758 $3,402 $3,301 Provision for credit losses 369 302 319 Noninterest income (includes ($1), $22 and $18 of AOCI reclassifications, respectively) 1,497 1,422 1,678 Noninterest expense (includes ($39), $8 and ($192) of AOCI reclassifications, respectively) 3,352 3,259 3,392 Income before income tax expense 1,534 1,263 1,268 Income tax expense (includes $38, $17 and $71 income tax net expense from reclassification items, respectively) 489 423 403 Net income $1,045 $840 $865 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Year Ended December 31, 2016 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,443 $1,288 $27 $3,758 Noninterest income 883 466 148 1,497 Total revenue 3,326 1,754 175 5,255 Noninterest expense 2,547 741 64 3,352 Profit before provision for credit losses 779 1,013 111 1,903 Provision for credit losses 243 47 79 369 Income before income tax expense (benefit) 536 966 32 1,534 Income tax expense (benefit) 191 335 (37 ) 489 Net income $345 $631 $69 $1,045 Total average assets $56,388 $47,159 $39,636 $143,183 Year Ended December 31, 2015 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,198 $1,162 $42 $3,402 Noninterest income 910 415 97 1,422 Total revenue 3,108 1,577 139 4,824 Noninterest expense 2,456 709 94 3,259 Profit before provision for credit losses 652 868 45 1,565 Provision for credit losses 252 (13 ) 63 302 Income before income tax expense (benefit) 400 881 (18 ) 1,263 Income tax expense (benefit) 138 302 (17 ) 423 Net income (loss) $262 $579 ($1 ) $840 Total average assets $52,848 $42,800 $39,422 $135,070 Year Ended December 31, 2014 (in millions) Consumer Banking Commercial Banking Other Consolidated Net interest income $2,151 $1,073 $77 $3,301 Noninterest income 899 429 350 1,678 Total revenue 3,050 1,502 427 4,979 Noninterest expense 2,513 652 227 3,392 Profit before provision for credit losses 537 850 200 1,587 Provision for credit losses 259 (6 ) 66 319 Income before income tax expense 278 856 134 1,268 Income tax expense 96 295 12 403 Net income $182 $561 $122 $865 Total average assets $48,939 $38,483 $40,202 $127,624 |
SHARE-BASED COMPENSATION SHARE-
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Citizens Share Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Share-Based Plans Activity | The following table presents the activity related to the Company’s share-based plans (excluding the ESPP) for the year ended December 31, 2016: CFG Share Awards Shares Weighted Average Grant Price Nonvested, January 1 3,428,130 $22.43 Granted 1,552,416 24.53 Vested (1,762,655 ) 22.14 Forfeited (308,862 ) 24.19 Nonvested, December 31 2,909,029 $23.92 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Year Ended December 31, (dollars in millions, except share and per-share data) 2016 2015 2014 Numerator (basic and diluted): Net income $1,045 $840 $865 Less: Preferred stock dividends 14 7 — Net income available to common stockholders $1,031 $833 $865 Denominator: Weighted-average common shares outstanding - basic 522,093,545 535,599,731 556,674,146 Dilutive common shares: share-based awards 1,837,173 2,621,167 1,050,790 Weighted-average common shares outstanding - diluted 523,930,718 538,220,898 557,724,936 Earnings per common share: Basic $1.97 $1.55 $1.55 Diluted 1.97 1.55 1.55 |
PARENT COMPANY ONLY FINANCIALS
PARENT COMPANY ONLY FINANCIALS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, (in millions) 2016 2015 2014 OPERATING INCOME: Income from consolidated subsidiaries and excluding equity in undistributed earnings: Dividends from banking subsidiaries $555 $345 $595 Interest 53 54 29 Management and service fees 26 20 21 Equity securities gains 3 3 — All other operating income 7 4 5 Total operating income 644 426 650 OPERATING EXPENSE: Salaries and employee benefits 37 15 63 Interest expense 99 108 80 All other expenses 15 38 123 Total operating expense 151 161 266 Income before taxes and undistributed income 493 265 384 Income taxes (26 ) (29 ) (77 ) Income before undistributed earnings of subsidiaries 519 294 461 Equity in undistributed earnings of subsidiaries: Bank 522 543 402 Nonbank 4 3 2 Net income $1,045 $840 $865 Other comprehensive (loss) income, net of income taxes: Net pension plan activity arising during the period ($2 ) $1 $8 Net unrealized derivative instrument (losses) gains arising during the period (8 ) 2 — Net unrealized securities (losses) gains arising during the period — (2 ) 1 Other comprehensive (loss) income activity of the Parent Company, net of income taxes (10 ) 1 9 Other comprehensive (loss) income activity of Bank subsidiaries, net of income taxes (271 ) (16 ) 267 Total other comprehensive (loss) income, net of income taxes (281 ) (15 ) 276 Total comprehensive income $764 $825 $1,141 |
Condensed Balance Sheets | Condensed Balance Sheets (in millions) December 31, 2016 December 31, 2015 ASSETS: Cash and due from banks $671 $531 Loans and advances to: Bank subsidiaries 1,156 1,725 Nonbank subsidiaries 20 — Investments in subsidiaries: Bank subsidiaries 20,116 19,865 Nonbank subsidiaries 50 54 Other assets 128 160 TOTAL ASSETS $22,141 $22,335 LIABILITIES: Long-term borrowed funds due to: Unaffiliated companies $2,318 $2,595 Balances due to nonbank subsidiaries — 1 Other liabilities 76 93 TOTAL LIABILITIES 2,394 2,689 TOTAL STOCKHOLDERS’ EQUITY 19,747 19,646 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $22,141 $22,335 |
Condensed Cash Flow Statements | Condensed Cash Flow Statements Year Ended December 31, (in millions) 2016 2015 2014 OPERATING ACTIVITIES Net income $1,045 $840 $865 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes 5 49 27 Gain on sales of assets (3 ) (3 ) — Equity in undistributed earnings of subsidiaries (526 ) (546 ) (404 ) (Decrease) increase in other liabilities (19 ) (48 ) 18 (Increase) decrease in other assets 35 (16 ) (74 ) Other operating, net (4 ) 3 17 Total adjustments (512 ) (561 ) (416 ) Net cash provided by operating activities 533 279 449 INVESTING ACTIVITIES Proceeds from sales of securities available for sale — 8 — Investments in and advances to subsidiaries (40 ) (215 ) (1,470 ) Repayment of investments in and advances to subsidiaries 588 376 945 Other investing, net (2 ) — (11 ) Net cash provided (used) by investing activities 546 169 (536 ) FINANCING ACTIVITIES Proceeds from issuance of long-term borrowed funds 349 1,000 1,000 Repayments of long-term borrowed funds (625 ) (750 ) — Proceeds from issuance of common stock 22 27 13 Treasury stock purchased (430 ) (500 ) (334 ) Net proceeds from issuance of preferred stock — 247 — Dividends declared and paid to common stockholders (241 ) (214 ) (806 ) Dividends declared and paid to preferred stockholders (14 ) (7 ) — Net cash used by financing activities (939 ) (197 ) (127 ) Increase (decrease) in cash and due from banks 140 251 (214 ) Cash and due from banks at beginning of year 531 280 494 Cash and due from banks at end of year $671 $531 $280 |
OTHER OPERATING EXPENSE (Tables
OTHER OPERATING EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense | The following table presents the details of other operating expense: Year Ended December 31, (in millions) 2016 2015 2014 Deposit insurance $120 $115 $95 Promotional expense 98 101 86 Settlements and operating losses 62 43 89 Other 246 271 303 Other operating expense $526 $530 $573 |
SIGNIFICANT ACCOUNTING POLICI61
SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) $ in Millions | Dec. 31, 2016USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loan analysis threshold | $ 3 |
CASH AND DUE FROM BANKS (Detail
CASH AND DUE FROM BANKS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |||
Interest-bearing cash and due from banks | $ 2,749 | $ 1,986 | |
Interest rate on FRB balances | 0.75% | ||
Interest earned on FRB balances | $ 7 | $ 4 | $ 5 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Net securities impairment losses recognized in earnings | $ 12,000,000 | $ 7,000,000 | $ 10,000,000 | |
Impaired debt securities sold | 0 | 0 | 0 | |
Pretax non-credit related losses were deferred in OCI | 27,000,000 | 36,000,000 | 35,000,000 | |
Taxable interest income from investment securities | 584,000,000 | 621,000,000 | 619,000,000 | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Securitizations of mortgage loans | 68,000,000 | 3,000,000 | 18,000,000 | |
Mortgage-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Value of held-to-maturity security sold | 73,000,000 | |||
Gain recognized on sale of held-to-maturity security | 2,000,000 | |||
Available-for-sale Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative credit losses recognized in earnings | 75,000,000 | 66,000,000 | 62,000,000 | $ 56,000,000 |
Credit impairments recognized in earnings on securities that have been previously impaired | 12,000,000 | 7,000,000 | 10,000,000 | |
Held-to-maturity Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative credit losses recognized in earnings | 0 | $ 0 | $ 0 | |
Proprietary Internal Model | Available-for-sale Securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Credit impairments recognized in earnings on securities that have been previously impaired | $ 5,000,000 |
SECURITIES - Schedule of Invest
SECURITIES - Schedule of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Securities Available-for-sale, Amortized Cost | $ 19,713 | $ 17,831 | |
Securities Available-for-sale, Gross Unrealized Gains | 80 | 157 | |
Securities Available-for-sale, Gross Unrealized Losses | (292) | (104) | |
Securities Available-for-sale, Fair Value | [1] | 19,501 | 17,884 |
Securities Held-to-maturity, Amortized Cost | [1] | 5,071 | 5,258 |
Securities Held-to-maturity, Gross Unrealized Gain | 31 | 50 | |
Securities Held-to-maturity, Gross Unrealized Losses | (44) | (11) | |
Securities held-to-maturity, Fair Value | 5,058 | 5,297 | |
Money market mutual fund, Amortized Cost | 91 | 65 | |
Money market mutual fund, Gross Unrealized Gains | 0 | 0 | |
Money market mutual fund, Gross Unrealized Losses | 0 | 0 | |
Money market mutual fund, Fair Value | 91 | 65 | |
Total other investment securities, at fair value, Amortized Cost | 96 | 70 | |
Total other investments securities, at fair value, Gross Unrealized Gains | 0 | 0 | |
Total other investments securities, at fair value, Gross Unrealized Losses | 0 | 0 | |
Total other investment securities, at fair value | 96 | 70 | |
Total other investment securities, at cost | 942 | 863 | |
Total other investment securities, at cost, Gross Unrealized Gain | 0 | 0 | |
Total other investment securities, at cost, Gross Unrealized Losses | 0 | 0 | |
Total other investment securities, at cost, Fair Value | 942 | 863 | |
U.S. Treasury and other | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 30 | 16 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 30 | 16 | |
State and political subdivisions | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 8 | 9 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Debt Securities Available-for-sale, Fair Value | 8 | 9 | |
Federal agencies and U.S. government sponsored entities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 19,231 | 17,234 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 78 | 153 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (264) | (67) | |
Debt Securities Available-for-sale, Fair Value | 19,045 | 17,320 | |
Securities Held-to-maturity, Amortized Cost | 4,126 | 4,105 | |
Securities Held-to-maturity, Gross Unrealized Gain | 12 | 27 | |
Securities Held-to-maturity, Gross Unrealized Losses | (44) | (11) | |
Securities held-to-maturity, Fair Value | 4,094 | 4,121 | |
Other/non-agency | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 427 | 555 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 2 | 4 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (28) | (37) | |
Debt Securities Available-for-sale, Fair Value | 401 | 522 | |
Securities Held-to-maturity, Amortized Cost | 945 | 1,153 | |
Securities Held-to-maturity, Gross Unrealized Gain | 19 | 23 | |
Securities Held-to-maturity, Gross Unrealized Losses | 0 | 0 | |
Securities held-to-maturity, Fair Value | 964 | 1,176 | |
Total mortgage-backed securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 19,658 | 17,789 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 80 | 157 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (292) | (104) | |
Debt Securities Available-for-sale, Fair Value | 19,446 | 17,842 | |
Total debt securities available for sale | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Debt Securities Available-for-sale, Amortized Cost | 19,696 | 17,814 | |
Debt Securities Available-for-sale, Gross Unrealized Gains | 80 | 157 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | (292) | (104) | |
Debt Securities Available-for-sale, Fair Value | 19,484 | 17,867 | |
Marketable equity securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 5 | 5 | |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Equity Securities Available-for-sale, Fair Value | 5 | 5 | |
Other equity securities | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 12 | 12 | |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Equity Securities Available-for-sale, Fair Value | 12 | 12 | |
Total equity securities available for sale | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Equity Securities Available-for-sale, Amortized Cost | 17 | 17 | |
Equity Securities Available-for-sale, Gross Unrealized Gains | 0 | 0 | |
Equity Securities Available-for-sale, Gross Unrealized Losses | 0 | 0 | |
Equity Securities Available-for-sale, Fair Value | 17 | 17 | |
Other investments | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Other investments, Amortized Cost | 5 | 5 | |
Other investments, Accumulated Gross Unrealized Gains | 0 | 0 | |
Other investments, Accumulated Gross Unrealized Losses | 0 | 0 | |
Other investments, Fair Value | 5 | 5 | |
Federal Reserve Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Reserve Bank stock, Amortized Cost | 463 | 468 | |
Federal Reserve Bank stock, Gross Unrealized Gains | 0 | 0 | |
Federal Reserve Bank stock, Gross Unrealized Losses | 0 | 0 | |
Federal Reserve Bank stock, Fair Value | 463 | 468 | |
Federal Home Loan Bank stock | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Federal Home Loan Bank stock, Amortized Cost | 479 | 395 | |
Federal Home Loan Bank stock, Gross Unrealized Gain | 0 | 0 | |
Federal Home Loan Bank stock, Gross Unrealized Losses | 0 | 0 | |
Federal Home Loan Bank stock, Fair Value | $ 479 | $ 395 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
SECURITIES - Other than tempora
SECURITIES - Other than temporary impairment recognized in earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total other-than-temporary impairment losses | $ (39) | $ (43) | $ (45) |
Portions of loss recognized in other comprehensive income (before taxes) | 27 | 36 | 35 |
Net securities impairment losses recognized in earnings | $ (12) | $ (7) | $ (10) |
SECURITIES - Schedule of Inve66
SECURITIES - Schedule of Investments in Continuous Loss Positions (Details) $ in Millions | Dec. 31, 2016USD ($)Securities | Dec. 31, 2015USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 328 | 166 |
Less than 12 months, fair value | $ 15,403 | $ 7,456 |
Less than 12 months, gross unrealized losses | $ (292) | $ (51) |
12 months or longer, number of issues | Securities | 45 | 56 |
12 months or longer, fair value | $ 763 | $ 1,180 |
12 months or longer, gross unrealized losses | $ (44) | $ (64) |
Total, number of issues | Securities | 373 | 222 |
Total, fair value | $ 16,166 | $ 8,636 |
Total, gross unrealized losses | $ (336) | $ (115) |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 1 | 1 |
Less than 12 months, fair value | $ 8 | $ 9 |
Less than 12 months, gross unrealized losses | $ 0 | $ 0 |
12 months or longer, number of issues | Securities | 0 | 0 |
12 months or longer, fair value | $ 0 | $ 0 |
12 months or longer, gross unrealized losses | $ 0 | $ 0 |
Total, number of issues | Securities | 1 | 1 |
Total, fair value | $ 8 | $ 9 |
Total, gross unrealized losses | $ 0 | $ 0 |
U.S. Treasury and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 1 | |
Less than 12 months, fair value | $ 15 | |
Less than 12 months, gross unrealized losses | $ 0 | |
12 months or longer, number of issues | Securities | 0 | |
12 months or longer, fair value | $ 0 | |
12 months or longer, gross unrealized losses | $ 0 | |
Total, number of issues | Securities | 1 | |
Total, fair value | $ 15 | |
Total, gross unrealized losses | $ 0 | |
Federal agencies and U.S. government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 323 | 162 |
Less than 12 months, fair value | $ 15,387 | $ 7,423 |
Less than 12 months, gross unrealized losses | $ (292) | $ (51) |
12 months or longer, number of issues | Securities | 25 | 36 |
12 months or longer, fair value | $ 461 | $ 819 |
12 months or longer, gross unrealized losses | $ (16) | $ (27) |
Total, number of issues | Securities | 348 | 198 |
Total, fair value | $ 15,848 | $ 8,242 |
Total, gross unrealized losses | $ (308) | $ (78) |
Other/non-agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 4 | 2 |
Less than 12 months, fair value | $ 8 | $ 9 |
Less than 12 months, gross unrealized losses | $ 0 | $ 0 |
12 months or longer, number of issues | Securities | 20 | 20 |
12 months or longer, fair value | $ 302 | $ 361 |
12 months or longer, gross unrealized losses | $ (28) | $ (37) |
Total, number of issues | Securities | 24 | 22 |
Total, fair value | $ 310 | $ 370 |
Total, gross unrealized losses | $ (28) | $ (37) |
Total mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, number of issues | Securities | 327 | 164 |
Less than 12 months, fair value | $ 15,395 | $ 7,432 |
Less than 12 months, gross unrealized losses | $ (292) | $ (51) |
12 months or longer, number of issues | Securities | 45 | 56 |
12 months or longer, fair value | $ 763 | $ 1,180 |
12 months or longer, gross unrealized losses | $ (44) | $ (64) |
Total, number of issues | Securities | 372 | 220 |
Total, fair value | $ 16,158 | $ 8,612 |
Total, gross unrealized losses | $ (336) | $ (115) |
SECURITIES - Schedule of Cumula
SECURITIES - Schedule of Cumulative Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative balance at beginning of period | $ 66 | $ 62 | $ 56 | |
Credit impairments recognized in earnings on securities that have been previously impaired | 12 | 7 | 10 | |
Reductions due to increases in cash flow expectations on impaired securities (1) | [1] | (3) | (3) | (4) |
Cumulative balance at end of period | $ 75 | $ 66 | $ 62 | |
[1] | Reported in interest income from investment securities on the Consolidated Statements of Operations. |
SECURITIES - Schedule of Availa
SECURITIES - Schedule of Available for Sale Securities Debt Maturities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | $ 31 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 63 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,180 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,422 |
Amortized Cost, Debt securities available for sale, Total | 19,696 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 5,071 |
Amortized Cost, Debt securities held to maturity, Total | 5,071 |
Total amortized cost of debt securities, Maturity of 1 Year or Less | 31 |
Total amortized cost of debt securities, Maturity of 1-5 Years | 63 |
Total amortized cost of debt securities, Maturity of 5-10 Years | 1,180 |
Total amortized cost of debt securities, Maturity After 10 Years | 23,493 |
Total amortized cost of debt securities, Total | 24,767 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 31 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 64 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,197 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 18,192 |
Fair Value, Debt securities available for sale, Total | 19,484 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 5,058 |
Fair Value, Debt securities held to maturity, Total | 5,058 |
Total fair value of debt securities, Maturity of 1 Year or Less | 31 |
Total fair value of debt securities, Maturity of 1-5 Years | 64 |
Total fair value of debt securities, Maturity of 5-10 Years | 1,197 |
Total fair value of debt securities, Maturity After 10 Years | 23,250 |
Total fair value of debt securities, Total | 24,542 |
U.S. Treasury and other | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 30 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 0 |
Amortized Cost, Debt securities available for sale, Total | 30 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 30 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 0 |
Fair Value, Debt securities available for sale, Total | 30 |
State and political subdivisions | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 8 |
Amortized Cost, Debt securities available for sale, Total | 8 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 8 |
Fair Value, Debt securities available for sale, Total | 8 |
Federal agencies and U.S. government sponsored entities | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 1 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 27 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 1,177 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 18,026 |
Amortized Cost, Debt securities available for sale, Total | 19,231 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 4,126 |
Amortized Cost, Debt securities held to maturity, Total | 4,126 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 1 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 28 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 1,194 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 17,822 |
Fair Value, Debt securities available for sale, Total | 19,045 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 4,094 |
Fair Value, Debt securities held to maturity, Total | 4,094 |
Other/non-agency | |
Amortized Cost: | |
Amortized Cost, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities available for sale, Maturity of 1-5 Years | 36 |
Amortized Cost, Debt securities available for sale, Maturity of 5-10 Years | 3 |
Amortized Cost, Debt securities available for sale, Maturity After 10 Years | 388 |
Amortized Cost, Debt securities available for sale, Total | 427 |
Amortized Cost, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Amortized Cost, Debt securities held to maturity, Maturity After 10 Years | 945 |
Amortized Cost, Debt securities held to maturity, Total | 945 |
Fair Value: | |
Fair Value, Debt securities available for sale, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities available for sale, Maturity of 1-5 Years | 36 |
Fair Value, Debt securities available for sale, Maturity of 5-10 Years | 3 |
Fair Value, Debt securities available for sale, Maturity After 10 Years | 362 |
Fair Value, Debt securities available for sale, Total | 401 |
Fair Value, Debt securities held to maturity, Maturity of 1 Year or Less | 0 |
Fair Value, Debt securities held to maturity, Maturity of 1-5 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity of 5-10 Years | 0 |
Fair Value, Debt securities held to maturity, Maturity After 10 Years | 964 |
Fair Value, Debt securities held to maturity, Total | $ 964 |
SECURITIES - Income Recognized
SECURITIES - Income Recognized from Investment Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Sale of Investments [Abstract] | |||
Gains on sale of debt securities | $ 18 | $ 41 | $ 33 |
Losses on sale of debt securities | (2) | (12) | (5) |
Debt securities gains, net | 16 | 29 | 28 |
Equity securities gains | $ 3 | $ 3 | $ 0 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged against repurchase agreements, Amortized Cost | $ 631 | $ 805 |
Pledged against FHLB borrowed funds, Amortized Cost | 953 | 1,163 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law, Amortized Cost | 3,575 | 3,579 |
Pledged against repurchase agreements, Fair Value | 620 | 808 |
Pledged against FHLB borrowed funds, Fair Value | 972 | 1,186 |
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law, Fair Value | $ 3,563 | $ 3,610 |
SECURITIES - Schedule of Balanc
SECURITIES - Schedule of Balance Sheet Effect of Repurchase Agreement Offsetting (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities purchased under agreements to resell, gross | $ 0 | $ 500 |
Securities purchased under agreements to resell, offset | 0 | (500) |
Securities purchased under agreements to resell | 0 | 0 |
Securities sold under agreements to repurchase, gross | 0 | (500) |
Securities sold under agreements to repurchase, offset | 0 | 500 |
Securities sold under agreements to repurchase, net | $ 0 | $ 0 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | $ 583,000,000 | $ 325,000,000 | |
Other loans held for sale | 42,000,000 | 40,000,000 | |
Investment credit recognized in income | 0 | 0 | $ 0 |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged as collateral for FHLB borrowed funds | 24,000,000,000 | 23,200,000,000 | |
Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window | 16,800,000,000 | 15,900,000,000 | |
Level 2 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 583,000,000 | 325,000,000 | |
Other loans held for sale | 0 | 0 | |
Level 2 | Residential loans held for sale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 504,000,000 | 268,000,000 | |
Level 2 | Commercial real estate loans held for sale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for sale | 79,000,000 | 57,000,000 | |
TDR Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans sold | 310,000,000 | ||
Gain (loss) on sales of loans | 72,000,000 | ||
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 1,200,000,000 | 957,000,000 | |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 695,000,000 | 1,300,000,000 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans purchased during period | 539,000,000 | 1,100,000,000 | |
Mortgage loans sold | 444,000,000 | 273,000,000 | |
Residential mortgages | TDR Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans sold | 255,000,000 | ||
Home equity loans | TDR Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans sold | 55,000,000 | ||
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | 147,000,000 | 401,000,000 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold during the period | 41,000,000 | ||
Commercial loan syndication | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other loans held for sale | $ 42,000,000 | $ 40,000,000 |
LOANS AND LEASES - Summary of L
LOANS AND LEASES - Summary of Loans and Leases Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | $ 51,651 | $ 46,214 | |
Total retail | 56,018 | 52,828 | |
Loans and leases | 107,669 | 99,042 | |
Loans held for sale | 625 | 365 | |
Banking Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential mortgages | 17,300 | 17,600 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | 37,274 | 33,264 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | 10,624 | 8,971 | |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Leases | 3,753 | 3,979 | |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential mortgages | 15,115 | 13,318 | |
Home equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 1,858 | 2,557 | |
Home equity lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 14,100 | 14,674 | |
Home equity loans serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 750 | 986 | |
Home equity lines of credit serviced by others | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Home equity | 219 | 389 | |
Automobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Automobile | 13,938 | 13,828 | |
Student | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Student | 6,610 | 4,359 | |
Credit cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Credit cards | 1,691 | 1,634 | |
Other retail | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other retail | 1,737 | 1,083 | |
Total loans and leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and leases | [1],[2] | $ 107,669 | $ 99,042 |
[1] | Excluded from the table above are loans held for sale totaling $625 million and $365 million as of December 31, 2016 and 2015, respectively. | ||
[2] | Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $17.3 billion and $17.6 billion at December 31, 2016 and 2015, respectively. |
LOANS AND LEASES - Summary of I
LOANS AND LEASES - Summary of Investments in Leases (Details) - Leases - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Direct financing leases | $ 3,670 | $ 3,898 |
Leveraged leases | 83 | 81 |
Total leases | $ 3,753 | $ 3,979 |
LOANS AND LEASES - Components o
LOANS AND LEASES - Components of Investments in Leases (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | $ 2,922 | |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total future minimum lease rentals | 2,922 | $ 3,195 |
Estimated residual value of leased equipment (non-guaranteed) | 1,166 | 1,157 |
Initial direct costs | 20 | 22 |
Unearned income on minimum lease rentals and estimated residual value of leased equipment | (355) | (395) |
Total leases | $ 3,753 | $ 3,979 |
LOANS AND LEASES - Future Minim
LOANS AND LEASES - Future Minimum Payments Receivable (Details) $ in Millions | Dec. 31, 2016USD ($) |
Receivables [Abstract] | |
2,017 | $ 647 |
2,018 | 610 |
2,019 | 532 |
2,020 | 401 |
2,021 | 274 |
Thereafter | 458 |
Total | $ 2,922 |
ALLOWANCE FOR CREDIT LOSSES, 77
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans collateralized by OREO | $ 177 | $ 257 |
Larger balance commercial loans minimum balance (greater than) | 3 | 3 |
Commitments to lend additional funds to debtors owing receivables which were TDRs | $ 42 | $ 15 |
High loan to value criteria (exceeds) | 90.00% | 90.00% |
Total commercial | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 120 | $ 155 |
Total retail | ||
Financing Receivable, Modifications [Line Items] | ||
TDR balance | $ 799 | $ 1,200 |
ALLOWANCE FOR CREDIT LOSSES, 78
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | $ 1,216 | ||
Provision charged to income | 369 | $ 302 | $ 319 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,236 | 1,216 | |
Allowance for loan and lease losses | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,216 | 1,195 | 1,221 |
Charge-offs | (536) | (480) | (493) |
Recoveries | 201 | 196 | 170 |
Net charge-offs | (335) | (284) | (323) |
Provision charged to income | 355 | 305 | 297 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,236 | 1,216 | 1,195 |
Allowance for loan and lease losses | Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 596 | 544 | 498 |
Charge-offs | (79) | (36) | (43) |
Recoveries | 33 | 49 | 58 |
Net charge-offs | (46) | 13 | 15 |
Provision charged to income | 113 | 39 | 31 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 663 | 596 | 544 |
Allowance for loan and lease losses | Retail | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 620 | 651 | 723 |
Charge-offs | (457) | (444) | (450) |
Recoveries | 168 | 147 | 112 |
Net charge-offs | (289) | (297) | (338) |
Provision charged to income | 242 | 266 | 266 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 573 | 620 | 651 |
Reserve for unfunded lending commitments | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 58 | 61 | 39 |
Provision (credit) for unfunded lending commitments | 14 | (3) | 22 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 72 | 58 | 61 |
Reserve for unfunded lending commitments | Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 58 | 61 | 39 |
Provision (credit) for unfunded lending commitments | 14 | (3) | 22 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 72 | 58 | 61 |
Reserve for unfunded lending commitments | Retail | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 0 | 0 | 0 |
Provision (credit) for unfunded lending commitments | 0 | 0 | 0 |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 0 | 0 | 0 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 1,274 | 1,256 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 1,308 | 1,274 | 1,256 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 654 | 605 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | 735 | 654 | 605 |
Allowance for loan and lease losses and reserve for off-balance sheet activities, total | Retail | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Beginning balance | 620 | 651 | |
Allowance for loan and lease losses / Reserve for unfunded lending commitments, Ending balance | $ 573 | $ 620 | $ 651 |
ALLOWANCE FOR CREDIT LOSSES, 79
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Loan and Leases (Details) - Loans and Leases - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | $ 1,223 | $ 1,383 |
Formula-based evaluation | 106,446 | 97,659 |
Total | 107,669 | 99,042 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 424 | 218 |
Formula-based evaluation | 51,227 | 45,996 |
Total | 51,651 | 46,214 |
Retail | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Individually evaluated | 799 | 1,165 |
Formula-based evaluation | 55,219 | 51,663 |
Total | $ 56,018 | $ 52,828 |
ALLOWANCE FOR CREDIT LOSSES, 80
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Summary of Allowance for Credit Losses by Evaluation Method (Details) - Loans and Leases - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | $ 106 | $ 137 |
Formula-based evaluation | 1,202 | 1,137 |
Allowance for credit losses | 1,308 | 1,274 |
Commercial Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 63 | 36 |
Formula-based evaluation | 672 | 618 |
Allowance for credit losses | 735 | 654 |
Retail | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated | 43 | 101 |
Formula-based evaluation | 530 | 519 |
Allowance for credit losses | $ 573 | $ 620 |
ALLOWANCE FOR CREDIT LOSSES, 81
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Commercial Loans and Leases by Regulatory Classification Ratings (Details) - Loans and Leases - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 107,669 | $ 99,042 |
Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 51,651 | 46,214 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,274 | 33,264 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,624 | 8,971 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,753 | 3,979 |
Pass | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 48,739 | 43,606 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 35,010 | 31,276 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,146 | 8,450 |
Pass | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,583 | 3,880 |
Special Mention | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,437 | 1,238 |
Special Mention | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,015 | 911 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 370 | 272 |
Special Mention | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 52 | 55 |
Substandard | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,188 | 1,217 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,027 | 1,002 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 58 | 171 |
Substandard | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 103 | 44 |
Doubtful | Commercial Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 287 | 153 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 222 | 75 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 50 | 78 |
Doubtful | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 15 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 82
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Recorded Investment in Retail Loans by Delinquency Status (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,465 | $ 1,356 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 200 | 316 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 103 | 148 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 272 | 285 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 40 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 45 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 252 | 194 |
Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 80 | 71 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 37 | 36 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 17 |
Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 107,669 | 99,042 |
Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 14,807 | 12,905 |
Total | 15,115 | 13,318 |
Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,628 | 2,245 |
Total | 1,858 | 2,557 |
Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,432 | 13,982 |
Total | 14,100 | 14,674 |
Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 673 | 886 |
Total | 750 | 986 |
Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 158 | 296 |
Total | 219 | 389 |
Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,509 | 12,670 |
Total | 13,938 | 13,828 |
Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,379 | 4,175 |
Total | 6,610 | 4,359 |
Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,611 | 1,554 |
Total | 1,691 | 1,634 |
Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,676 | 1,013 |
Total | 1,737 | 1,083 |
Loans and Leases | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 52,873 | 49,726 |
Total | 56,018 | 52,828 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 108 | 97 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 127 | 164 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 396 | 407 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 41 | 60 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 25 | 48 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,177 | 964 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 151 | 113 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 43 | 44 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 45 | 53 |
Financing Receivables, 1 to 29 Days Past Due | Loans and Leases | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,113 | 1,950 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 404 | 383 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 53 | 54 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 32 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 57 | 60 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14 | 14 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3 | 10 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 172 | 127 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 24 | 19 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 11 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 8 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 366 | 335 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 116 | 124 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 16 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 12 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 20 | 20 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 6 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2 | 6 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 32 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 13 | 11 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 9 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 4 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 110 | 116 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 945 | 849 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 135 | 246 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 73 | 104 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 195 | 205 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 20 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 31 | 29 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 42 | 35 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 43 | 41 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 16 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 5 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Total retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 556 | $ 701 |
ALLOWANCE FOR CREDIT LOSSES, 83
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Nonperforming Loans and Leases by Class (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | $ 1,045 | [1] | $ 1,051 | |
Nonperforming loans including 90 days past due | [1] | 1,060 | ||
Loans accruing and 90 days or more past due | 26 | 9 | ||
GNMA loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans sold with right to repurchase | 32 | |||
Commercial Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 387 | ||
Nonperforming loans including 90 days past due | [1] | 148 | ||
Loans accruing and 90 days or more past due | 2 | 1 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 322 | ||
Nonperforming loans including 90 days past due | [1] | 71 | ||
Loans accruing and 90 days or more past due | 2 | 1 | ||
Commercial real estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 50 | ||
Nonperforming loans including 90 days past due | [1] | 77 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 15 | ||
Nonperforming loans including 90 days past due | [1] | 0 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 658 | ||
Nonperforming loans including 90 days past due | [1] | 912 | ||
Loans accruing and 90 days or more past due | 24 | 8 | ||
Residential mortgages | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1],[2],[3] | 144 | ||
Nonperforming loans including 90 days past due | [1],[2],[3] | 331 | ||
Loans accruing and 90 days or more past due | [2],[3] | 18 | 0 | |
Home equity loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 98 | ||
Nonperforming loans including 90 days past due | [1] | 135 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Home equity lines of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 243 | ||
Nonperforming loans including 90 days past due | [1] | 272 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Home equity loans serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 32 | ||
Nonperforming loans including 90 days past due | [1] | 38 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Home equity lines of credit serviced by others | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 33 | ||
Nonperforming loans including 90 days past due | [1] | 32 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Automobile | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 50 | ||
Nonperforming loans including 90 days past due | [1] | 42 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Student | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 38 | ||
Nonperforming loans including 90 days past due | [1] | 41 | ||
Loans accruing and 90 days or more past due | 5 | 6 | ||
Credit cards | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 16 | ||
Nonperforming loans including 90 days past due | [1] | 16 | ||
Loans accruing and 90 days or more past due | 0 | 0 | ||
Other retail | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming loans | [1] | 4 | ||
Nonperforming loans including 90 days past due | [1] | 5 | ||
Loans accruing and 90 days or more past due | $ 1 | $ 2 | ||
[1] | Effective March 31, 2016, the Company began excluding loans 90 days or more past due and still accruing from nonperforming loans and leases. Nonperforming loans and leases as of December 31, 2015 included loans and leases on nonaccrual of $1.051 billion and loans and leases accruing and 90 days or more past due of $9 million. | |||
[2] | Effective March 31, 2016, the Company began excluding first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration from nonperforming balances. As of December 31, 2016, $18 million of these loans were accruing and 90 days or more past due. | |||
[3] | Effective March 31, 2016, the Company began excluding guaranteed residential mortgage loans sold to GNMA for which the Company had the right, but not the obligation, to repurchase from nonperforming balances. As of December 31, 2016 these loans totaled $32 million. These loans are consolidated on the Company’s Consolidated Balance Sheets. |
ALLOWANCE FOR CREDIT LOSSES, 84
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Other Nonperforming Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 49 | $ 46 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | 0 | 1 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonperforming assets, net of valuation allowance | $ 49 | $ 45 |
ALLOWANCE FOR CREDIT LOSSES, 85
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Performance Indicators for Nonperforming Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 0.97% | 1.07% |
Nonperforming assets as a percentage of total assets | [1] | 0.73% | 0.80% |
Loans accruing and 90 days or more past due | $ 26 | $ 9 | |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 0.36% | 0.15% |
Nonperforming assets as a percentage of total assets | [1] | 0.26% | 0.11% |
Loans accruing and 90 days or more past due | $ 2 | $ 1 | |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonperforming loans and leases as a percentage of total loans and leases | [1] | 0.61% | 0.92% |
Nonperforming assets as a percentage of total assets | [1] | 0.47% | 0.69% |
Loans accruing and 90 days or more past due | $ 24 | $ 8 | |
[1] | December 31, 2015 ratios included loans accruing and 90 days or more past due of $1 million and $8 million for commercial and retail, respectively. |
ALLOWANCE FOR CREDIT LOSSES, 86
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Accruing and Nonaccruing Past Due Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 1,465 | $ 1,356 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 433 | 204 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 364 | 84 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 53 | 110 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 10 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,032 | 1,152 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 200 | 316 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 103 | 148 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 272 | 285 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 40 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 45 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 252 | 194 |
Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 80 | 71 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 37 | 36 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 17 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 48 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 404 | 383 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 36 | 9 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 30 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1 | 9 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 366 | 335 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 53 | 54 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 23 | 32 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 57 | 60 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14 | 14 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3 | 10 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 172 | 127 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 24 | 19 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 11 |
Financing Receivables, 30 to 59 Days Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 8 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 116 | 124 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6 | 8 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 4 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2 | 3 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 110 | 116 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 16 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 7 | 12 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 20 | 20 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5 | 6 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2 | 6 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 38 | 32 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 13 | 11 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 9 | 9 |
Financing Receivables, 60 to 89 Days Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4 | 4 |
Financing Receivables, 90 Days or More Past Due | Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 389 | 148 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 945 | 849 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 324 | 71 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 50 | 77 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 15 | 0 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 556 | 701 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 135 | 246 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 73 | 104 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 195 | 205 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 17 | 20 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 31 | 29 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 42 | 35 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 43 | 41 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 16 | 16 |
Financing Receivables, 90 Days or More Past Due | Loans and Leases | Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 4 | $ 5 |
ALLOWANCE FOR CREDIT LOSSES, 87
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Impaired Loans by Class (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | $ 634 | $ 641 |
Allowance on Impaired Loans | 106 | 137 |
Impaired Loans Without a Related Allowance | 589 | 742 |
Unpaid Contractual Balance | 1,443 | 1,671 |
Total Recorded Investment in Impaired Loans | 1,223 | 1,383 |
Commercial Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 286 | 148 |
Allowance on Impaired Loans | 63 | 36 |
Impaired Loans Without a Related Allowance | 138 | 70 |
Unpaid Contractual Balance | 475 | 214 |
Total Recorded Investment in Impaired Loans | 424 | 218 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 247 | 92 |
Allowance on Impaired Loans | 55 | 23 |
Impaired Loans Without a Related Allowance | 134 | 58 |
Unpaid Contractual Balance | 431 | 144 |
Total Recorded Investment in Impaired Loans | 381 | 150 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 39 | 56 |
Allowance on Impaired Loans | 8 | 13 |
Impaired Loans Without a Related Allowance | 4 | 12 |
Unpaid Contractual Balance | 44 | 70 |
Total Recorded Investment in Impaired Loans | 43 | 68 |
Retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 348 | 493 |
Allowance on Impaired Loans | 43 | 101 |
Impaired Loans Without a Related Allowance | 451 | 672 |
Unpaid Contractual Balance | 968 | 1,457 |
Total Recorded Investment in Impaired Loans | 799 | 1,165 |
Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 37 | 121 |
Allowance on Impaired Loans | 2 | 16 |
Impaired Loans Without a Related Allowance | 141 | 320 |
Unpaid Contractual Balance | 235 | 608 |
Total Recorded Investment in Impaired Loans | 178 | 441 |
Home equity loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 51 | 85 |
Allowance on Impaired Loans | 3 | 11 |
Impaired Loans Without a Related Allowance | 94 | 139 |
Unpaid Contractual Balance | 191 | 283 |
Total Recorded Investment in Impaired Loans | 145 | 224 |
Home equity lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 23 | 27 |
Allowance on Impaired Loans | 1 | 2 |
Impaired Loans Without a Related Allowance | 173 | 167 |
Unpaid Contractual Balance | 240 | 234 |
Total Recorded Investment in Impaired Loans | 196 | 194 |
Home equity loans serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 41 | 50 |
Allowance on Impaired Loans | 4 | 8 |
Impaired Loans Without a Related Allowance | 19 | 24 |
Unpaid Contractual Balance | 70 | 88 |
Total Recorded Investment in Impaired Loans | 60 | 74 |
Home equity lines of credit serviced by others | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 2 | 3 |
Allowance on Impaired Loans | 0 | 1 |
Impaired Loans Without a Related Allowance | 7 | 7 |
Unpaid Contractual Balance | 13 | 14 |
Total Recorded Investment in Impaired Loans | 9 | 10 |
Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 4 | 3 |
Allowance on Impaired Loans | 0 | 0 |
Impaired Loans Without a Related Allowance | 15 | 11 |
Unpaid Contractual Balance | 25 | 19 |
Total Recorded Investment in Impaired Loans | 19 | 14 |
Student | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 154 | 163 |
Allowance on Impaired Loans | 25 | 48 |
Impaired Loans Without a Related Allowance | 1 | 2 |
Unpaid Contractual Balance | 155 | 165 |
Total Recorded Investment in Impaired Loans | 155 | 165 |
Credit cards | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 26 | 28 |
Allowance on Impaired Loans | 6 | 11 |
Impaired Loans Without a Related Allowance | 0 | 0 |
Unpaid Contractual Balance | 26 | 28 |
Total Recorded Investment in Impaired Loans | 26 | 28 |
Other retail | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Impaired Loans With a Related Allowance | 10 | 13 |
Allowance on Impaired Loans | 2 | 4 |
Impaired Loans Without a Related Allowance | 1 | 2 |
Unpaid Contractual Balance | 13 | 18 |
Total Recorded Investment in Impaired Loans | $ 11 | $ 15 |
ALLOWANCE FOR CREDIT LOSSES, 88
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Additional Impaired Loan Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | $ 35 | $ 47 | $ 53 |
Average Recorded Investment | 1,102 | 1,283 | 1,434 |
Commercial Banking | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 5 | 5 | 11 |
Average Recorded Investment | 351 | 179 | 296 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 5 | 4 | 9 |
Average Recorded Investment | 295 | 135 | 198 |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 1 | 2 |
Average Recorded Investment | 53 | 44 | 98 |
Leases | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 0 | 0 |
Average Recorded Investment | 3 | 0 | 0 |
Retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 30 | 42 | 42 |
Average Recorded Investment | 751 | 1,104 | 1,138 |
Residential mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 4 | 15 | 14 |
Average Recorded Investment | 161 | 415 | 429 |
Home equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 7 | 9 | 8 |
Average Recorded Investment | 144 | 222 | 246 |
Home equity lines of credit | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 6 | 4 | 4 |
Average Recorded Investment | 178 | 173 | 149 |
Home equity loans serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 3 | 4 | 5 |
Average Recorded Investment | 60 | 75 | 91 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 0 | 0 |
Average Recorded Investment | 9 | 9 | 11 |
Automobile | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 0 | 0 | 0 |
Average Recorded Investment | 14 | 11 | 7 |
Student | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 7 | 7 | 8 |
Average Recorded Investment | 150 | 157 | 153 |
Credit cards | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 2 | 2 | 2 |
Average Recorded Investment | 23 | 26 | 31 |
Other retail | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Interest Income Recognized | 1 | 1 | 1 |
Average Recorded Investment | $ 12 | $ 16 | $ 21 |
ALLOWANCE FOR CREDIT LOSSES, 89
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Troubled Debt Restructuring (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | ||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | $ 8 | $ 4 | $ 1 | |
Charge-offs Resulting from Modification | 4 | 7 | 16 | |
Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 3 | (1) | 3 | |
Charge-offs Resulting from Modification | 0 | 1 | 3 | |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 3 | (1) | 3 | |
Charge-offs Resulting from Modification | 0 | 1 | 0 | |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 3 | |
Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 5 | 5 | (2) | |
Charge-offs Resulting from Modification | 4 | 6 | 13 | |
Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | (1) | (1) | (4) | |
Charge-offs Resulting from Modification | 0 | 0 | 1 | |
Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | (1) | 0 | (1) | |
Charge-offs Resulting from Modification | 0 | 1 | 2 | |
Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 1 | 2 | 5 | |
Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | |
Charge-offs Resulting from Modification | 0 | 1 | 0 | |
Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | |
Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | 0 | |
Charge-offs Resulting from Modification | 3 | 2 | 5 | |
Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 4 | 4 | 5 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | |
Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 3 | 2 | 0 | |
Charge-offs Resulting from Modification | 0 | 0 | 0 | |
Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Net Change to ALLL Resulting from Modification | 0 | 0 | (1) | |
Charge-offs Resulting from Modification | $ 0 | $ 0 | $ 0 | |
Interest Rate Reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 2,585 | 2,834 | 2,581 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 37 | $ 73 | $ 49 |
Post-Modification Outstanding Recorded Investment | [1] | $ 37 | $ 73 | $ 50 |
Interest Rate Reduction | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 13 | 26 | 34 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 19 | $ 9 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 19 | $ 9 |
Interest Rate Reduction | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 12 | 25 | 25 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 19 | $ 8 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 19 | $ 7 |
Interest Rate Reduction | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 1 | 1 | 9 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 2 |
Interest Rate Reduction | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 2,572 | 2,808 | 2,547 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 36 | $ 54 | $ 40 |
Post-Modification Outstanding Recorded Investment | [1] | $ 36 | $ 54 | $ 41 |
Interest Rate Reduction | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 71 | 153 | 126 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 10 | $ 31 | $ 17 |
Post-Modification Outstanding Recorded Investment | [1] | $ 10 | $ 31 | $ 17 |
Interest Rate Reduction | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 97 | 96 | 125 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 6 | $ 5 | $ 8 |
Post-Modification Outstanding Recorded Investment | [1] | $ 6 | $ 5 | $ 9 |
Interest Rate Reduction | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 49 | 4 | 7 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 4 | $ 1 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 4 | $ 1 | $ 0 |
Interest Rate Reduction | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 18 | 29 | 42 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 2 | $ 2 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1 | $ 2 | $ 2 |
Interest Rate Reduction | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 8 | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 138 | 108 | 75 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 3 | $ 2 | $ 1 |
Post-Modification Outstanding Recorded Investment | [1] | $ 3 | $ 2 | $ 1 |
Interest Rate Reduction | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Interest Rate Reduction | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 2,187 | 2,413 | 2,165 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 12 | $ 13 | $ 12 |
Post-Modification Outstanding Recorded Investment | [1] | $ 12 | $ 13 | $ 12 |
Interest Rate Reduction | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [1] | 4 | 3 | 3 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 0 | $ 0 |
Maturity Extension | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 348 | 421 | 566 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 54 | $ 66 | $ 52 |
Post-Modification Outstanding Recorded Investment | [2] | $ 55 | $ 65 | $ 51 |
Maturity Extension | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 82 | 161 | 146 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 25 | $ 22 | $ 24 |
Post-Modification Outstanding Recorded Investment | [2] | $ 26 | $ 22 | $ 24 |
Maturity Extension | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 81 | 160 | 131 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 20 | $ 22 | $ 21 |
Post-Modification Outstanding Recorded Investment | [2] | $ 21 | $ 22 | $ 22 |
Maturity Extension | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 1 | 1 | 15 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 0 | $ 3 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 0 | $ 2 |
Maturity Extension | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 266 | 260 | 420 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 29 | $ 44 | $ 28 |
Post-Modification Outstanding Recorded Investment | [2] | $ 29 | $ 43 | $ 27 |
Maturity Extension | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 60 | 40 | 40 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 10 | $ 7 | $ 6 |
Post-Modification Outstanding Recorded Investment | [2] | $ 10 | $ 6 | $ 5 |
Maturity Extension | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 39 | 191 | 85 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 4 | $ 35 | $ 5 |
Post-Modification Outstanding Recorded Investment | [2] | $ 5 | $ 35 | $ 6 |
Maturity Extension | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 121 | 23 | 276 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 13 | $ 2 | $ 17 |
Post-Modification Outstanding Recorded Investment | [2] | $ 12 | $ 2 | $ 16 |
Maturity Extension | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 5 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 0 |
Maturity Extension | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 41 | 5 | 18 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | $ 0 | $ 0 |
Maturity Extension | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Maturity Extension | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [2] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [2] | $ 0 | $ 0 | $ 0 |
Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 2,501 | 3,261 | 4,771 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 150 | $ 165 | $ 251 |
Post-Modification Outstanding Recorded Investment | [3] | $ 146 | $ 159 | $ 262 |
Other | Commercial Banking | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 14 | 17 | 28 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 48 | $ 38 | $ 59 |
Post-Modification Outstanding Recorded Investment | [3] | $ 48 | $ 38 | $ 81 |
Other | Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 14 | 16 | 27 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 48 | $ 34 | $ 52 |
Post-Modification Outstanding Recorded Investment | [3] | $ 48 | $ 34 | $ 74 |
Other | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 0 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 4 | $ 7 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 4 | $ 7 |
Other | Retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 2,487 | 3,244 | 4,743 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 102 | $ 127 | $ 192 |
Post-Modification Outstanding Recorded Investment | [3] | $ 98 | $ 121 | $ 181 |
Other | Residential mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 247 | 275 | 393 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 26 | $ 33 | $ 47 |
Post-Modification Outstanding Recorded Investment | [3] | $ 26 | $ 33 | $ 46 |
Other | Home equity loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 279 | 448 | 1,046 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 18 | $ 28 | $ 63 |
Post-Modification Outstanding Recorded Investment | [3] | $ 17 | $ 28 | $ 62 |
Other | Home equity lines of credit | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 304 | 320 | 356 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 23 | $ 21 | $ 25 |
Post-Modification Outstanding Recorded Investment | [3] | $ 22 | $ 19 | $ 21 |
Other | Home equity loans serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 60 | 124 | 138 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 6 | $ 5 |
Post-Modification Outstanding Recorded Investment | [3] | $ 2 | $ 5 | $ 5 |
Other | Home equity lines of credit serviced by others | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 24 | 41 | 39 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 3 | $ 2 |
Post-Modification Outstanding Recorded Investment | [3] | $ 1 | $ 2 | $ 2 |
Other | Automobile | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 1,081 | 812 | 1,039 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 20 | $ 14 | $ 17 |
Post-Modification Outstanding Recorded Investment | [3] | $ 18 | $ 12 | $ 13 |
Other | Student | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 479 | 1,204 | 1,675 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 12 | $ 22 | $ 31 |
Post-Modification Outstanding Recorded Investment | [3] | $ 12 | $ 22 | $ 31 |
Other | Credit cards | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 0 |
Other | Other retail | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | [3] | 13 | 20 | 57 |
Pre-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 2 |
Post-Modification Outstanding Recorded Investment | [3] | $ 0 | $ 0 | $ 1 |
[1] | Includes modifications that consist of multiple concessions, one of which is an interest rate reduction. | |||
[2] | Includes modifications that consist of multiple concessions, one of which is a maturity extension (unless one of the other concessions was an interest rate reduction). | |||
[3] | Includes modifications other than interest rate reductions or maturity extensions, such as lowering scheduled payments for a specified period of time, principal forgiveness, capitalizing arrearages, and principal forgiveness. Also included are the following: deferrals, trial modifications, certain bankruptcies, loans in forbearance and prepayment plans. Modifications can include the deferral of accrued interest resulting in post modification balances being higher than pre-modification. |
ALLOWANCE FOR CREDIT LOSSES, 90
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Default of Modified Debt Agreements (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1,074 | 1,288 | 2,037 |
Balance Defaulted | $ | $ 60 | $ 52 | $ 97 |
Commercial Banking | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 23 | 23 | 40 |
Balance Defaulted | $ | $ 13 | $ 2 | $ 13 |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 22 | 23 | 37 |
Balance Defaulted | $ | $ 13 | $ 2 | $ 12 |
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 3 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 1 |
Retail | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1,051 | 1,265 | 1,997 |
Balance Defaulted | $ | $ 47 | $ 50 | $ 84 |
Residential mortgages | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 187 | 168 | 301 |
Balance Defaulted | $ | $ 24 | $ 21 | $ 35 |
Home equity loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 50 | 184 | 329 |
Balance Defaulted | $ | $ 3 | $ 13 | $ 24 |
Home equity lines of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 155 | 131 | 229 |
Balance Defaulted | $ | $ 13 | $ 7 | $ 12 |
Home equity loans serviced by others | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 37 | 43 | 60 |
Balance Defaulted | $ | $ 1 | $ 1 | $ 2 |
Home equity lines of credit serviced by others | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 17 | 22 | 20 |
Balance Defaulted | $ | $ 0 | $ 1 | $ 0 |
Automobile | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 110 | 87 | 112 |
Balance Defaulted | $ | $ 2 | $ 1 | $ 1 |
Student | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 59 | 171 | 355 |
Balance Defaulted | $ | $ 1 | $ 3 | $ 7 |
Credit cards | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 433 | 455 | 579 |
Balance Defaulted | $ | $ 3 | $ 3 | $ 3 |
Other retail | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 3 | 4 | 12 |
Balance Defaulted | $ | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES, 91
ALLOWANCE FOR CREDIT LOSSES, NONPERFORMING ASSETS, AND CONCENTRATIONS OF CREDIT RISK - Loans with Indicators of High Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
High loan-to-value | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1,592 | $ 2,472 |
High loan-to-value | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 566 | 649 |
High loan-to-value | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 550 | 1,038 |
High loan-to-value | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 476 | 785 |
High loan-to-value | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
High loan-to-value | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,583 | 1,110 |
Interest only/negative amortization | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,582 | 1,110 |
Interest only/negative amortization | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Interest only/negative amortization | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1 | 0 |
Low introductory rate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 112 | 99 |
Low introductory rate | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 3 |
Low introductory rate | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Low introductory rate | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 112 | 96 |
Low introductory rate | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3 | 14 |
Multiple characteristics and other | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3 | 14 |
Multiple characteristics and other | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Multiple characteristics and other | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
Credit risk, loans with increased credit exposure | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,290 | 3,695 |
Credit risk, loans with increased credit exposure | Residential Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,151 | 1,773 |
Credit risk, loans with increased credit exposure | Home Equity Loans and Lines of Credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 550 | 1,041 |
Credit risk, loans with increased credit exposure | Home Equity Products Serviced by Others | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 476 | 785 |
Credit risk, loans with increased credit exposure | Credit Cards | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 112 | 96 |
Credit risk, loans with increased credit exposure | Student | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 1 | $ 0 |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
LIHTC Investments | ||
Variable Interest Entity [Line Items] | ||
Net impairment losses recognized in earnings | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
LIHTC Investments | ||
Variable Interest Entity [Line Items] | ||
LIHTC investment included in other assets | $ 793 | $ 598 |
LIHTC unfunded commitments included in other liabilities | 428 | 365 |
Renewable Energy | ||
Variable Interest Entity [Line Items] | ||
Renewable energy investments included in other assets | $ 220 | $ 118 |
VARIABLE INTEREST ENTITIES - 94
VARIABLE INTEREST ENTITIES - Schedule of Affordable Housing Tax Credit Investments (Details) - LIHTC Investments - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Tax credits included in the provision for income taxes | $ 59 | $ 45 |
Amortization expense included in the provision for income taxes | 59 | 45 |
Other tax benefits included in the provision for income taxes | $ 21 | $ 17 |
PREMISES, EQUIPMENT, AND SOFT95
PREMISES, EQUIPMENT, AND SOFTWARE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Capital Leases of Lessee [Abstract] | |||
Book value of capital leased assets | $ 45 | $ 47 | |
Capital leased assets accumulated depreciation | 30 | 25 | |
Depreciation expense | 130 | 116 | $ 117 |
Capitalized Software | |||
Capitalized software, gross | 1,500 | 1,300 | |
Capitalized software, accumulated amortization | 691 | 532 | |
Amortization of software | $ 170 | $ 146 | $ 145 |
PREMISES, EQUIPMENT, AND SOFT96
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Premises and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 2,445 | $ 2,326 |
Less: accumulated depreciation | (1,844) | (1,731) |
Total premises and equipment, net | $ 601 | 595 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years | |
Total premises and equipment, gross | $ 47 | 25 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 684 | 634 |
Buildings and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | |
Buildings and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years | |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, gross | $ 1,714 | $ 1,667 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years |
PREMISES, EQUIPMENT, AND SOFT97
PREMISES, EQUIPMENT, AND SOFTWARE - Schedule of Amortization (Details) $ in Millions | Dec. 31, 2016USD ($) | |
Capitalized Software, Expected Future Amortization Expense [Abstract] | ||
2,017 | $ 160 | |
2,018 | 139 | |
2,019 | 108 | |
2,020 | 78 | |
2,021 | 41 | |
Thereafter | 114 | |
Total | 640 | [1] |
In-process software | $ 138 | |
[1] | Excluded from this balance is $138 million of in-process software at December 31, 2016. |
LEASE COMMITMENTS - Narrative (
LEASE COMMITMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rent expense for operating leases and capital leases | $ 208 | $ 205 | $ 214 |
LEASE COMMITMENTS - Aggregate M
LEASE COMMITMENTS - Aggregate Minimum Rental Commitments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Operating Leases | |
2,017 | $ 182 |
2,018 | 157 |
2,019 | 122 |
2,020 | 102 |
2,021 | 82 |
Thereafter | 164 |
Total minimum lease payments | 809 |
Capital Leases | |
2,017 | 7 |
2,018 | 3 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
Thereafter | 9 |
Total minimum lease payments | 25 |
Amounts representing interest | (9) |
Present value of net minimum lease payments | $ 16 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 12 Months Ended | 348 Months Ended | ||
Dec. 31, 2016USD ($)reporting_unit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)business | |
Goodwill [Line Items] | ||||
Number of acquisitions of banks or assets of banks | business | 25 | |||
Number of reporting units | reporting_unit | 2 | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |
Consumer Banking | ||||
Goodwill [Line Items] | ||||
Goodwill accumulated impairment loss | 5,900,000,000 | 5,900,000,000 | $ 5,900,000,000 | |
Commercial Banking | ||||
Goodwill [Line Items] | ||||
Goodwill accumulated impairment loss | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
GOODWILL - Goodwill Rollforward
GOODWILL - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 6,876 | $ 6,876 |
Adjustments | 0 | 0 |
Ending balance | 6,876 | 6,876 |
Consumer Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,136 | 2,136 |
Adjustments | 0 | 0 |
Ending balance | 2,136 | 2,136 |
Commercial Banking | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,740 | 4,740 |
Adjustments | 0 | 0 |
Ending balance | $ 4,740 | $ 4,740 |
MORTGAGE BANKING - Narrative (D
MORTGAGE BANKING - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | $ 2,652 | $ 2,381 | $ 1,578 |
Repurchased mortgage loans | 6 | 10 | 25 |
Mortgage servicing fees | 51 | 55 | 59 |
Mortgage servicing rights valuation recovery | 4 | 9 | 5 |
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of residential mortgages | 2,700 | 2,700 | 1,600 |
Gain on sale of residential mortgages | $ 69 | $ 51 | $ 36 |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Adverse change in basis points | 0.50% | 0.50% | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Adverse change in basis points | 1.00% | 1.00% |
MORTGAGE BANKING - Changes Rela
MORTGAGE BANKING - Changes Related to MSRs (Details) - Residential mortgages - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
MSRs | ||
Balance as of January 1 | $ 173 | $ 184 |
Amount capitalized | 29 | 26 |
Amortization | (35) | (37) |
Carrying amount before valuation allowance | 167 | 173 |
Valuation allowance for servicing assets | ||
Balance as of January 1 | 9 | 18 |
Valuation recovery | (4) | (9) |
Balance at end of period | 5 | 9 |
Net carrying value of MSRs | $ 162 | $ 164 |
MORTGAGE BANKING - Economic Ass
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Residential mortgages | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Fair value | $ 182 | $ 178 |
Weighted average life (in years) | 5 years 8 months 12 days | 5 years 4 months 24 days |
Weighted average constant prepayment rate | 10.80% | 11.60% |
Weighted average discount rate | 9.70% | 9.70% |
Minimum | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 2 years 7 months 6 days | 2 years 9 months 18 days |
Weighted average constant prepayment rate | 8.80% | 10.70% |
Weighted average discount rate | 9.10% | 9.10% |
Maximum | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value [Abstract] | ||
Weighted average life (in years) | 7 years 3 months 18 days | 6 years 2 months 12 days |
Weighted average constant prepayment rate | 22.30% | 22.20% |
Weighted average discount rate | 12.10% | 12.10% |
MORTGAGE BANKING - Economic 105
MORTGAGE BANKING - Economic Assumptions Used to Estimate Value of MSRs Capitalized (Details) - Residential mortgages | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Weighted average life (in years) | 6 years 1 month 6 days | 5 years 10 months 24 days | 5 years 9 months 18 days |
Weighted average constant prepayment rate | 11.00% | 10.70% | 11.70% |
Weighted average discount rate | 9.70% | 9.70% | 10.30% |
MORTGAGE BANKING - Sensitivity
MORTGAGE BANKING - Sensitivity Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Prepayment rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from a 50 basis point decrease in interest rates | $ 9 | $ 5 |
Decline in fair value from a 100 basis point decrease in interest rates | 25 | 11 |
Weighted average discount rate | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Decline in fair value from a 50 basis point increase in weighted average discount rate | 3 | 3 |
Decline in fair value from a 100 basis point increase in weighted average discount rate | $ 6 | $ 6 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($) |
Banking and Thrift [Abstract] | |
Time deposits of $100,000 or more | $ 8,204 |
DEPOSITS - Major Components of
DEPOSITS - Major Components of Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits, by Type [Abstract] | ||
Demand | $ 28,472 | $ 27,649 |
Checking with interest | 20,714 | 17,921 |
Regular savings | 8,964 | 8,218 |
Money market accounts | 38,176 | 36,727 |
Term deposits | 13,478 | 12,024 |
Total deposits | $ 109,804 | $ 102,539 |
DEPOSITS - Maturities of Term D
DEPOSITS - Maturities of Term Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 11,402 | |
2,018 | 1,428 | |
2,019 | 214 | |
2,020 | 325 | |
2,021 | 103 | |
2022 and thereafter | 6 | |
Total | $ 13,478 | $ 12,024 |
DEPOSITS - Maturities of Ter110
DEPOSITS - Maturities of Term Deposits Greater than $100,000 (Details) $ in Millions | Dec. 31, 2016USD ($) |
Contractual Maturities, Time Deposits, $100,000 or More [Abstract] | |
Three months or less | $ 3,531 |
After three months through six months | 1,152 |
After six months through twelve months | 2,671 |
After twelve months | 850 |
Total term deposits | $ 8,204 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | Jul. 28, 2016 | Mar. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 13, 2016 | Mar. 14, 2016 | ||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term borrowed funds | $ 500,000,000 | $ 8,429,000,000 | $ 766,000,000 | $ 6,000,000 | |||||
Short-term borrowed funds | 4,359,000,000 | 3,432,000,000 | |||||||
Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term borrowed funds | 625,000,000 | 750,000,000 | |||||||
FHLB advances and letters of credit | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Short-term borrowed funds | 13,400,000,000 | 11,300,000,000 | |||||||
FHLB advances | |||||||||
Debt Instrument [Line Items] | |||||||||
Available borrowing capacity | 2,800,000,000 | 4,100,000,000 | |||||||
FRB advances | |||||||||
Debt Instrument [Line Items] | |||||||||
Available borrowing capacity | 33,600,000,000 | ||||||||
Banking Subsidiaries | 2.500% senior unsecured notes, due 2019 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal balance | $ 750,000,000 | $ 750,000,000 | |||||||
Interest rate | 2.50% | [1],[2] | 2.50% | ||||||
Banking Subsidiaries | 2.550% senior unsecured notes, due 2021 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal balance | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Interest rate | 2.55% | [1],[3] | 2.55% | ||||||
Citizens Financial Group, Inc. | 2.375% fixed rate senior unsecured debt, due 2021 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal balance | $ 350,000,000 | $ 350,000,000 | |||||||
Interest rate | 2.375% | ||||||||
Citizens Financial Group, Inc. | 2.375% fixed rate senior unsecured debt, due 2021 | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [4] | 2.375% | |||||||
Citizens Financial Group, Inc. | 4.082% fixed rate subordinated debt, due 2025 | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal balance | 334,000,000 | ||||||||
Interest rate | 4.082% | 4.082% | [5] | ||||||
Extinguishment of debt, amount | $ 334,000,000 | ||||||||
Citizens Financial Group, Inc. | 4.023% fixed rate subordinated debt, due 2024 | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal balance | $ 42,000,000 | $ 333,000,000 | |||||||
Interest rate | 4.023% | 4.023% | [6] | ||||||
Extinguishment of debt, amount | $ 166,000,000 | $ 125,000,000 | |||||||
[1] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. | ||||||||
[2] | This balance is composed of: principal balance of $750 million at December 31, 2016; impact from interest rate swaps of ($7) million and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. | ||||||||
[3] | This balance is composed of: principal balance of $1.0 billion at December 31, 2016; impact from interest rate swaps of ($30) million and ($5) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. | ||||||||
[4] | This balance is composed of: principal balance of $350 million at December 31, 2016, as well as the impact of ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. | ||||||||
[5] | This subordinated debt was retired in 2016. At December 31, 2015, this balance was composed of a principal balance of $334 million; impact from interest rate swaps of ($3) million at December 31, 2015. See Note 16 “Derivatives” for further information. On July 28, 2016, the Company repurchased $334 million of these securities. | ||||||||
[6] | These balances are composed of: principal balance of $42 million and $333 million at December 31, 2016 and 2015, respectively, as well as the impact from interest rate swaps of zero and ($2) million at December 31, 2016 and 2015, respectively. See Note 16 “Derivatives” for further information. In addition, the Company repurchased $125 million and $166 million of these securities on March 7, 2016 and July 28, 2016, respectively. |
BORROWED FUNDS - Short Term Deb
BORROWED FUNDS - Short Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 4,359 | $ 3,432 |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 533 | 0 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | 615 | 802 |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||
Short-term Debt [Line Items] | ||
Total short-term borrowed funds | $ 3,211 | $ 2,630 |
BORROWED FUNDS - Short Term Bor
BORROWED FUNDS - Short Term Borrowed Debt Key Data (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Federal funds purchased and securities sold under agreements to repurchase | ||||
Short-term Debt [Line Items] | ||||
Weighted-average interest rate at period end | [1] | 0.26% | 0.15% | 0.14% |
Maximum amount outstanding at month-end during the period | [2] | $ 1,522 | $ 5,375 | $ 7,022 |
Average amount outstanding during the period | [2] | $ 947 | $ 3,364 | $ 5,699 |
Weighted-average interest rate during the period | [1] | 0.09% | 0.22% | 0.12% |
Other short-term borrowed funds (primarily current portion of FHLB advances) | ||||
Short-term Debt [Line Items] | ||||
Weighted-average interest rate at period end | [1] | 0.94% | 0.44% | 0.26% |
Maximum amount outstanding at month-end during the period | $ 5,461 | $ 7,004 | $ 7,702 | |
Average amount outstanding during the period | $ 3,207 | $ 5,865 | $ 5,640 | |
Weighted-average interest rate during the period | [1] | 0.64% | 0.28% | 0.25% |
[1] | Rates exclude certain hedging costs. | |||
[2] | Balances are net of certain short-term receivables associated with reverse repurchase agreements. |
BORROWED FUNDS - Long Term Debt
BORROWED FUNDS - Long Term Debt (Details) - USD ($) | Jul. 28, 2016 | Mar. 07, 2016 | Dec. 31, 2016 | May 13, 2016 | Mar. 14, 2016 | Dec. 31, 2015 | Aug. 03, 2015 | ||
Debt Instrument [Line Items] | |||||||||
Long-term borrowed funds | $ 12,790,000,000 | $ 9,886,000,000 | |||||||
Interest rate swaps | (759,000,000) | (807,000,000) | |||||||
Interest rate swaps | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (609,000,000) | (636,000,000) | |||||||
Citizens Financial Group, Inc. | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term borrowed funds | 2,318,000,000 | ||||||||
Banking Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term borrowed funds | $ 10,472,000,000 | ||||||||
Subordinated Debt | 4.350% fixed rate subordinated debt, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.35% | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | 4.150% fixed rate subordinated debt, due 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [1] | 4.15% | |||||||
Long-term borrowed funds | [1] | $ 347,000,000 | 350,000,000 | ||||||
Principal balance | 350,000,000 | 350,000,000 | |||||||
Unamortized deferred issuance costs | $ (3,000,000) | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.158% | ||||||||
Long-term borrowed funds | $ 333,000,000 | $ 333,000,000 | |||||||
Subordinated Debt | Citizens Financial Group, Inc. | 3.750% fixed rate subordinated debt due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.75% | [2] | 4.153% | ||||||
Long-term borrowed funds | [2] | $ 250,000,000 | $ 250,000,000 | ||||||
Subordinated Debt | Citizens Financial Group, Inc. | 4.023% fixed rate subordinated debt, due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.023% | 4.023% | [3] | ||||||
Long-term borrowed funds | [3] | $ 42,000,000 | 331,000,000 | ||||||
Principal balance | $ 42,000,000 | 333,000,000 | |||||||
Extinguishment of debt, amount | $ 166,000,000 | $ 125,000,000 | |||||||
Subordinated Debt | Citizens Financial Group, Inc. | 4.082% fixed rate subordinated debt, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.082% | 4.082% | [4] | ||||||
Long-term borrowed funds | [4] | $ 0 | 331,000,000 | ||||||
Principal balance | 334,000,000 | ||||||||
Extinguishment of debt, amount | $ 334,000,000 | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | 4.350% fixed rate subordinated debt, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [5] | 4.35% | |||||||
Long-term borrowed funds | [5] | $ 249,000,000 | 250,000,000 | ||||||
Principal balance | 250,000,000 | 250,000,000 | |||||||
Unamortized deferred issuance costs | $ (1,000,000) | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | 4.300% fixed rate subordinated debt, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [6] | 4.30% | |||||||
Long-term borrowed funds | [6] | $ 749,000,000 | 750,000,000 | ||||||
Principal balance | 750,000,000 | 750,000,000 | |||||||
Unamortized deferred issuance costs | $ (1,000,000) | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | 2.375% fixed rate senior unsecured debt, due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [7] | 2.375% | |||||||
Subordinated Debt | Citizens Financial Group, Inc. | LIBOR | 5.158% fixed-to-floating rate subordinated debt, (LIBOR 3.56%) callable, due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 3.56% | ||||||||
Subordinated Debt | Citizens Financial Group, Inc. | Interest rate swaps | 4.082% fixed rate subordinated debt, due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (3,000,000) | ||||||||
Senior Unsecured Notes | Citizens Financial Group, Inc. | 2.375% fixed rate senior unsecured debt, due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.375% | ||||||||
Long-term borrowed funds | [7] | $ 348,000,000 | 0 | ||||||
Principal balance | $ 350,000,000 | 350,000,000 | |||||||
Unamortized deferred issuance costs | (2,000,000) | ||||||||
Senior Unsecured Notes | Citizens Financial Group, Inc. | Interest rate swaps | 4.023% fixed rate subordinated debt, due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | $ 0 | (2,000,000) | |||||||
Senior Unsecured Notes | Banking Subsidiaries | 1.600% senior unsecured notes, due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [8],[9] | 1.60% | |||||||
Long-term borrowed funds | [8],[9] | $ 0 | 749,000,000 | ||||||
Principal balance | 750,000,000 | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | 2.300% senior unsecured notes, due 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [8],[10] | 2.30% | |||||||
Long-term borrowed funds | [8],[10] | $ 745,000,000 | 747,000,000 | ||||||
Principal balance | 750,000,000 | 750,000,000 | |||||||
Unamortized deferred issuance costs | $ (2,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | 2.450% senior unsecured notes, due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [8],[11] | 2.45% | |||||||
Long-term borrowed funds | [8],[11] | $ 747,000,000 | 752,000,000 | ||||||
Principal balance | 750,000,000 | 750,000,000 | |||||||
Unamortized deferred issuance costs | $ (3,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | 2.500% senior unsecured notes, due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.50% | [8],[12] | 2.50% | ||||||
Long-term borrowed funds | [8],[12] | $ 741,000,000 | 0 | ||||||
Principal balance | 750,000,000 | $ 750,000,000 | |||||||
Unamortized deferred issuance costs | $ (2,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | 2.550% senior unsecured notes, due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.55% | [8],[13] | 2.55% | ||||||
Long-term borrowed funds | [8],[13] | $ 965,000,000 | 0 | ||||||
Principal balance | 1,000,000,000 | $ 1,000,000,000 | |||||||
Unamortized deferred issuance costs | (5,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | Interest rate swaps | 1.600% senior unsecured notes, due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (1,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | Interest rate swaps | 2.300% senior unsecured notes, due 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (3,000,000) | (3,000,000) | |||||||
Senior Unsecured Notes | Banking Subsidiaries | Interest rate swaps | 2.450% senior unsecured notes, due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | 0 | 2,000,000 | |||||||
Senior Unsecured Notes | Banking Subsidiaries | Interest rate swaps | 2.500% senior unsecured notes, due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (7,000,000) | ||||||||
Senior Unsecured Notes | Banking Subsidiaries | Interest rate swaps | 2.550% senior unsecured notes, due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate swaps | (30,000,000) | ||||||||
Federal Home Loan advances | Banking Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term borrowed funds | 7,264,000,000 | 5,018,000,000 | |||||||
Other | Banking Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term borrowed funds | $ 10,000,000 | $ 25,000,000 | |||||||
[1] | These balances are composed of: principal balances of $350 million at December 31, 2016 and 2015, as well as the impact of ($3) million of unamortized deferred issuance costs and discount at December 31, 2016. | ||||||||
[2] | Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%. | ||||||||
[3] | These balances are composed of: principal balance of $42 million and $333 million at December 31, 2016 and 2015, respectively, as well as the impact from interest rate swaps of zero and ($2) million at December 31, 2016 and 2015, respectively. See Note 16 “Derivatives” for further information. In addition, the Company repurchased $125 million and $166 million of these securities on March 7, 2016 and July 28, 2016, respectively. | ||||||||
[4] | This subordinated debt was retired in 2016. At December 31, 2015, this balance was composed of a principal balance of $334 million; impact from interest rate swaps of ($3) million at December 31, 2015. See Note 16 “Derivatives” for further information. On July 28, 2016, the Company repurchased $334 million of these securities. | ||||||||
[5] | These balances are composed of: principal balances of $250 million at December 31, 2016 and 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016. | ||||||||
[6] | These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016. | ||||||||
[7] | This balance is composed of: principal balance of $350 million at December 31, 2016, as well as the impact of ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. | ||||||||
[8] | These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014. | ||||||||
[9] | This balance was reclassified to short-term borrowed funds at December 31, 2016. At December 31, 2015 the balance was composed of: principal balances of $750 million; impact from interest rate swaps of ($1) million. See Note 16 “Derivatives” for further information. | ||||||||
[10] | These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015; impact from interest rate swaps of ($3) million at December 31, 2016 and 2015; and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. | ||||||||
[11] | These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015; impact from interest rate swaps of zero and $2 million at December 31, 2016 and 2015, respectively; and ($3) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. | ||||||||
[12] | This balance is composed of: principal balance of $750 million at December 31, 2016; impact from interest rate swaps of ($7) million and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. | ||||||||
[13] | This balance is composed of: principal balance of $1.0 billion at December 31, 2016; impact from interest rate swaps of ($30) million and ($5) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information. |
BORROWED FUNDS - Maturities of
BORROWED FUNDS - Maturities of Long-term Borrowed Funds (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
2017 or on demand | $ 0 | |
2,018 | 8,000 | |
2,019 | 1,489 | |
2,020 | 2 | |
2,021 | 1,318 | |
2022 and thereafter | 1,981 | |
Total | 12,790 | $ 9,886 |
Citizens Financial Group, Inc. | ||
Debt Instrument [Line Items] | ||
2017 or on demand | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 348 | |
2022 and thereafter | 1,970 | |
Total | 2,318 | |
Banking Subsidiaries | ||
Debt Instrument [Line Items] | ||
2017 or on demand | 0 | |
2,018 | 8,000 | |
2,019 | 1,489 | |
2,020 | 2 | |
2,021 | 970 | |
2022 and thereafter | 11 | |
Total | $ 10,472 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Aug. 03, 2015 | Apr. 07, 2015 | Apr. 06, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred Stock | ||||||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 | ||||
Preferred stock, outstanding (in shares) | 250,000 | 250,000 | ||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | ||||
Preferred stock, redemption notice period | 90 days | |||||
Treasury Stock | ||||||
Cost of stock repurchase | $ 250,000,000 | $ 430,000,000 | $ 500,000,000 | $ 334,000,000 | ||
Treasury stock purchased (in shares) | 9,615,384 | 10,473,397 | 17,300,000 | 20,100,000 | ||
Treasury stock purchased, price per share (in dollars per share) | $ 26 | $ 23.87 | ||||
Treasury stock purchased | $ 430,000,000 | $ 500,000,000 | 334,000,000 | |||
Preferred stock, period used in determination of repurchase price | 5 days | |||||
Deferred compensation, share-based payments | ||||||
Treasury Stock | ||||||
Cost of stock repurchase | $ 22,000,000 | |||||
Treasury stock purchased, price per share (in dollars per share) | $ 25.50 | |||||
Shares repurchased (in shares) | 0 | 876,087 | ||||
4.350% fixed rate subordinated debt, due 2025 | Subordinated Debt | ||||||
Treasury Stock | ||||||
Aggregate principal amount of debt | $ 250,000,000 | |||||
Interest rate | 4.35% | |||||
2016 CCAR Plan | ||||||
Treasury Stock | ||||||
Cost of stock repurchase | $ 430,000,000 | |||||
Treasury stock purchased (in shares) | 17,332,684 | |||||
Treasury stock purchased, price per share (in dollars per share) | $ 24.81 | |||||
Series A Preferred Stock | ||||||
Preferred Stock | ||||||
Preferred stock, authorized (in shares) | 250,000 | 250,000 | ||||
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 | $ 25 | |||
Preferred stock, issued | $ 250,000,000 | |||||
Preferred stock, issued (in shares) | 250,000 | 250,000 | 250,000 | |||
Preferred stock, dividend rate | 5.50% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | |||
Net proceeds from issuance of stock | $ 247,000,000 | |||||
Preferred stock, redemption price per share (in dollars per share) | $ 1,000 | |||||
Series A Preferred Stock | LIBOR | ||||||
Preferred Stock | ||||||
Preferred stock, dividend payment rate, basis spread on variable rate, beginning after April 6, 2020 | 3.96% | |||||
Treasury Stock, at Cost | ||||||
Treasury Stock | ||||||
Treasury stock purchased | $ 405,000,000 | $ 500,000,000 | $ 334,000,000 | |||
Additional Paid-in Capital | ||||||
Treasury Stock | ||||||
Treasury stock purchased | $ 25,000,000 |
EMPLOYEE BENEFITS - Narrative (
EMPLOYEE BENEFITS - Narrative (Details) - USD ($) | Sep. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Years of service used in determining benefits | 5 years | ||||
Net actuarial loss recorded in AOCI expected to be recognized during 2017 | $ 18,000,000 | ||||
401(k) Plan | |||||
Employer matching contribution, time of service required | 1 year | ||||
Employer matching contribution percentage | 100.00% | 100.00% | |||
Employer matching contribution, Percent of employees' pay | 4.00% | 5.00% | 5.00% | ||
Employer matching contribution, addition | 2.00% | ||||
Employer contribution amount | $ 55,000,000 | $ 52,000,000 | $ 60,000,000 | ||
Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net actuarial losses | 634,000,000 | ||||
Employer contributions | $ 75,000,000 | 75,000,000 | $ 100,000,000 | ||
Expected 2017 contribution | $ 0 | ||||
Discount rate | 4.19% | 4.64% | 4.125% | ||
Non-Qualified Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Net actuarial losses | $ 599,000,000 | ||||
Employer contributions | $ 8,000,000 | $ 9,000,000 | |||
Expected 2017 contribution | $ 8,000,000 | ||||
Discount rate | 4.05% | 4.54% | 3.875% | ||
Postretirement Benefit Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected 2017 contribution | $ 2,000,000 | ||||
Discount rate | 3.53% | 3.93% | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||
Assumed annual rate of increase in the per capita cost of covered health care benefits | 7.00% | 7.00% | |||
Ultimate health care cost trend rate | 5.00% | 5.00% |
EMPLOYEE BENEFITS - Allocation
EMPLOYEE BENEFITS - Allocation of Plan Assets (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual asset allocations | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 45.00% | |
Maximum target asset allocation | 55.00% | |
Actual asset allocations | 49.60% | 47.10% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 40.00% | |
Maximum target asset allocation | 50.00% | |
Actual asset allocations | 45.20% | 47.30% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum target asset allocation | 0.00% | |
Maximum target asset allocation | 10.00% | |
Actual asset allocations | 5.20% | 5.60% |
EMPLOYEE BENEFITS - Changes in
EMPLOYEE BENEFITS - Changes in the Fair Value of Pension Plan Assets, Projected Benefit Obligation, Funded Status, and Accumulated Benefit Obligation (Details) - USD ($) $ in Millions | Sep. 07, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets as of January 1 | $ 182 | ||
Fair value of plan assets as of December 31 | 104 | $ 182 | |
Qualified Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets as of January 1 | 917 | 923 | |
Actual return (loss) on plan assets | 82 | (41) | |
Employer contributions | $ 75 | 75 | 100 |
Benefits and administrative expenses paid | (59) | (65) | |
Fair value of plan assets as of December 31 | 1,015 | 917 | |
Projected benefit obligation | 1,024 | 977 | |
Pension obligation | (9) | (60) | |
Accumulated benefit obligation | 1,024 | 977 | |
Non-Qualified Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets as of January 1 | 0 | 0 | |
Actual return (loss) on plan assets | 0 | 0 | |
Employer contributions | 8 | 9 | |
Benefits and administrative expenses paid | (8) | (9) | |
Fair value of plan assets as of December 31 | 0 | 0 | |
Projected benefit obligation | 105 | 103 | |
Pension obligation | (105) | (103) | |
Accumulated benefit obligation | $ 105 | $ 103 |
EMPLOYEE BENEFITS - Plan Amount
EMPLOYEE BENEFITS - Plan Amounts Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Net periodic pension income | $ (1) | $ (7) | $ (8) |
Net actuarial loss | 54 | 7 | 237 |
Amortization of prior service credit | 1 | 0 | 0 |
Amortization of net actuarial loss | (16) | (15) | (10) |
Divestiture | 0 | 0 | (35) |
Total recognized in other comprehensive income (loss) | 39 | (8) | 192 |
Total recognized in net periodic pension cost and other comprehensive income (loss) | $ 38 | $ (15) | $ 184 |
EMPLOYEE BENEFITS - Schedule of
EMPLOYEE BENEFITS - Schedule of Net Periodic (Income) Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3 | $ 3 | $ 3 |
Interest cost | 48 | 48 | 52 |
Expected return on plan assets | (68) | (74) | (73) |
Amortization of actuarial loss | 16 | 15 | 10 |
Net periodic pension (income) cost | (1) | (8) | (8) |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 3 |
Interest cost | 44 | 44 | 47 |
Expected return on plan assets | (68) | (74) | (73) |
Amortization of actuarial loss | 14 | 13 | 9 |
Net periodic pension (income) cost | (7) | (14) | (14) |
Non-Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 4 | 4 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 2 | 2 | 1 |
Net periodic pension (income) cost | $ 6 | $ 6 | $ 6 |
EMPLOYEE BENEFITS - Assumptions
EMPLOYEE BENEFITS - Assumptions Used in Determining Actuarial Present Value of Benefit Obligations and Net Periodic Benefit Cost (Details) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Aug. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Assumptions for benefit obligations | ||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.50% | 7.50% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Expected long-term rate of return on plan assets | 7.50% | 7.50% | 7.50% | |||
Qualified Plan | ||||||
Assumptions for benefit obligations | ||||||
Discount rate | 4.125% | 4.19% | 4.64% | 4.125% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Discount rate | [1] | 4.25% | 5.00% | 4.64% | 4.125% | |
Non-Qualified Plan | ||||||
Assumptions for benefit obligations | ||||||
Discount rate | 3.875% | 4.05% | 4.54% | 3.875% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Discount rate | [2] | 4.00% | 4.75% | 4.54% | 3.875% | |
[1] | for January 1 - August 31, 2014 period; 4.25% for September 1 - December 31, 2014 period. | |||||
[2] | for January 1 - August 31, 2014 period; 4.00% for September 1 - December 31, 2014 period. |
EMPLOYEE BENEFITS - Expected Fu
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Qualified and Non-Qualified Plans | |
Expected benefit payments by fiscal year ended | |
December 31, 2017 | $ 62 |
December 31, 2018 | 63 |
December 31, 2019 | 63 |
December 31, 2020 | 64 |
December 31, 2021 | 66 |
December 31, 2022 - 2026 | 339 |
Postretirement Benefit Plan | |
Expected benefit payments by fiscal year ended | |
December 31, 2017 | 2 |
December 31, 2018 | 2 |
December 31, 2019 | 1 |
December 31, 2020 | 1 |
December 31, 2021 | 1 |
December 31, 2022 - 2026 | $ 6 |
EMPLOYEE BENEFITS - Fair Value
EMPLOYEE BENEFITS - Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | $ 104 | $ 182 | |
Investments measured at net asset value | 918 | [1] | 767 |
Liabilities measured at fair value | 2 | ||
Cash and money market funds | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 4 | |
Managed portfolio | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 2 | 4 | |
Managed portfolio | U.S. government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 10 | 35 | |
Managed portfolio | Municipal obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 2 | 1 | |
Managed portfolio | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 89 | 84 | |
Managed portfolio | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | 5 | |
Managed portfolio | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Managed portfolio | Interest rate forwards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Liabilities measured at fair value | 1 | ||
Managed portfolio | Credit default swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities measured at fair value | 1 | ||
Mutual funds | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 47 | ||
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 47 | |
Liabilities measured at fair value | 0 | ||
Level 1 | Cash and money market funds | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | U.S. government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | Municipal obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 1 | Managed portfolio | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Level 1 | Managed portfolio | Interest rate forwards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Liabilities measured at fair value | 0 | ||
Level 1 | Managed portfolio | Credit default swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities measured at fair value | 0 | ||
Level 1 | Mutual funds | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 47 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 104 | 135 | |
Liabilities measured at fair value | 2 | ||
Level 2 | Cash and money market funds | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 4 | |
Level 2 | Managed portfolio | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 2 | 4 | |
Level 2 | Managed portfolio | U.S. government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 10 | 35 | |
Level 2 | Managed portfolio | Municipal obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 2 | 1 | |
Level 2 | Managed portfolio | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 89 | 84 | |
Level 2 | Managed portfolio | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | 5 | |
Level 2 | Managed portfolio | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Level 2 | Managed portfolio | Interest rate forwards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Liabilities measured at fair value | 1 | ||
Level 2 | Managed portfolio | Credit default swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities measured at fair value | 1 | ||
Level 2 | Mutual funds | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Liabilities measured at fair value | 0 | ||
Level 3 | Cash and money market funds | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | Cash and money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | U.S. government obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | Municipal obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Level 3 | Managed portfolio | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Level 3 | Managed portfolio | Interest rate forwards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Liabilities measured at fair value | 0 | ||
Level 3 | Managed portfolio | Credit default swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities measured at fair value | 0 | ||
Level 3 | Mutual funds | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | $ 1,022 | $ 949 | |
[1] | Certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. |
EMPLOYEE BENEFITS - Fair Val125
EMPLOYEE BENEFITS - Fair Value Estimated Using Net Asset Value per Share (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 918 | [1] | $ 767 | |
Unfunded commitments | 0 | |||
Mutual funds | Liquid Cash Fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | 9 | 0 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 0 days | |||
Mutual funds | Equity Mutual Fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | [2] | $ 40 | 9 | |
Unfunded commitments | [2] | $ 0 | ||
Redemption notice period | [2] | 7 days | ||
Common and collective funds | Global equities funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 386 | 220 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 3 days | |||
Common and collective funds | Balanced funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 193 | 196 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 2 days | |||
Common and collective funds | Fixed income fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 133 | 120 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 3 days | |||
Managed portfolio, fixed income mutual fund | Managed Portfolio, Fixed Income Mutual Fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | [3] | $ 30 | 20 | |
Unfunded commitments | [3] | $ 0 | ||
Redemption notice period | [3] | 1 day | ||
Limited partnerships | International equity funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 117 | 107 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 3 days | |||
Limited partnerships | International equity | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 0 | 95 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 10 days | |||
Limited partnerships | Offshore feeder fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Investments measured at net asset value | $ 10 | $ 0 | ||
Unfunded commitments | $ 0 | |||
Redemption notice period | 14 days | |||
[1] | Certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. | |||
[2] | The equity mutual fund seeks to offer participants capital appreciation by primarily investing in common stocks via investments in several underlying funds of the same fund family. The principal investment objective is to generate positive total return. | |||
[3] | The managed portfolio fixed income mutual fund seeks to outperform the Barclay’s U.S. Long Credit Index or similar benchmark. |
EMPLOYEE BENEFITS - Assumpti126
EMPLOYEE BENEFITS - Assumptions Used in Determining the Net Periodic Benefit Cost of the Postretirement Benefits Plan (Details) - Postretirement Benefit Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.93% | 3.50% |
Ultimate health care cost trend rate | 5.00% | 5.00% |
Effect on accumulated postretirement benefit obligation: One percent increase in assumed health care cost trend | $ 0 | $ 0 |
Effect on accumulated postretirement benefit obligation: One percent decrease in assumed health care cost trend | $ 0 | $ 0 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% |
State operating loss carryforwards | $ 1,400,000,000 | ||
Deferred tax asset valuation allowance | 107,000,000 | $ 123,000,000 | |
Decrease in deferred tax asset valuation allowance | (16,000,000) | ||
Unrecognized tax benefits that would impact effective tax rate | 29,000,000 | ||
Interest on unrecognized tax benefits accrued during period | 8,000,000 | 1,000,000 | $ 1,000,000 |
Accrued interest on unrecognized tax benefits | 22,000,000 | 14,000,000 | 15,000,000 |
Penalties accrued income tax examination | 0 | 0 | 0 |
Penalties expense income tax examination | 0 | $ 0 | $ 0 |
Tax Years Ended Prior to 1988 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Base year loan loss reserves attributable to prior years | $ 557,000,000 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 489 | $ 423 | $ 403 |
Tax effect of changes in OCI | (168) | (12) | 154 |
Total comprehensive income tax expense | $ 321 | $ 411 | $ 557 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
U.S. federal | $ 292 | $ 162 | $ 224 |
State and local | 44 | 12 | 38 |
Total | 336 | 174 | 262 |
Deferred | |||
U.S. federal | 159 | 225 | 145 |
State and local | (6) | 24 | (4) |
Total | 153 | 249 | 141 |
U.S. federal | 451 | 387 | 369 |
State and local | 38 | 36 | 34 |
Income tax expense (benefit) | $ 489 | $ 423 | $ 403 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount | |||
U.S. Federal income tax expense | $ 537 | $ 442 | $ 444 |
Increase (decrease) resulting from: | |||
State and local income taxes (net of federal benefit) | 38 | 27 | 22 |
Bank-owned life insurance | (19) | (20) | (17) |
Tax-exempt interest | (19) | (17) | (15) |
Tax advantaged investments (including related credits) | (31) | (16) | (27) |
Other tax credits | (14) | 0 | 0 |
Non-deductible expenses | 0 | 8 | 0 |
Other | (3) | (1) | (4) |
Income tax expense (benefit) | $ 489 | $ 423 | $ 403 |
Rate | |||
U.S. Federal income tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
State and local income taxes (net of federal benefit) | 2.50% | 2.10% | 1.70% |
Bank-owned life insurance | (1.20%) | (1.60%) | (1.30%) |
Tax-exempt interest | (1.30%) | (1.30%) | (1.20%) |
Tax advantaged investments (including related credits) | (2.00%) | (1.20%) | (2.10%) |
Other tax credits | (0.90%) | (0.00%) | (0.00%) |
Non-deductible expenses | 0.00% | 0.60% | 0.00% |
Other | (0.20%) | (0.10%) | (0.30%) |
Total income tax expense and tax rate | 31.90% | 33.50% | 31.80% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Other comprehensive income | $ 409 | $ 241 |
Allowance for credit losses | 471 | 465 |
State net operating loss carryforwards | 75 | 137 |
Accrued expenses not currently deductible | 129 | 135 |
Investment and other tax credit carryforwards | 52 | 0 |
Deferred income | 22 | 40 |
Fair value adjustments | 40 | 36 |
Other | 0 | 5 |
Total deferred tax assets | 1,198 | 1,059 |
Valuation allowance | (107) | (123) |
Deferred tax assets, net of valuation allowance | 1,091 | 936 |
Deferred tax liabilities: | ||
Leasing transactions | 881 | 882 |
Amortization of intangibles | 522 | 455 |
Depreciation | 234 | 213 |
Pension and other employee compensation plans | 103 | 69 |
MSRs | 49 | 47 |
Other | 16 | 0 |
Total deferred tax liabilities | 1,805 | 1,666 |
Net deferred tax liability | $ 714 | $ 730 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the year | $ 62 | $ 72 | $ 33 |
Gross decrease for tax positions related to prior years | (19) | (6) | 0 |
Gross increase for tax positions related to prior years | 1 | 0 | 60 |
Decreases for tax positions as a result of the lapse of the statutes of limitations | (2) | (3) | (1) |
Decreases for tax positions related to settlements with taxing authorities | 0 | (1) | (20) |
Balance at end of year | $ 42 | $ 62 | $ 72 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net gain (pre-tax) on derivatives expected to be reclassified in next 12 months | $ 2 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Assets | |||
Derivative assets | $ 759 | $ 807 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (106) | (178) |
Less: Cash collateral applied | [1] | (26) | (4) |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 627 | 625 |
Derivative Liabilities | |||
Derivative Liabilities | 778 | 666 | |
Less: Gross amounts offset in the Consolidated Balance Sheets | [1] | (106) | (178) |
Less: Cash collateral applied | [1] | (13) | (3) |
Total net derivative fair values presented in the Consolidated Balance Sheets | [2] | 659 | 485 |
Derivatives not designated as hedging instruments: | |||
Derivative Assets | |||
Derivative assets | 707 | 711 | |
Derivative Liabilities | |||
Derivative Liabilities | 585 | 616 | |
Interest rate swaps | |||
Derivative Assets | |||
Derivative assets | 609 | 636 | |
Derivative Liabilities | |||
Derivative Liabilities | 645 | 505 | |
Interest rate swaps | Derivatives designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 13,350 | 16,750 |
Derivative Assets | |||
Derivative assets | 52 | 96 | |
Derivative Liabilities | |||
Derivative Liabilities | 193 | 50 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 54,656 | 33,719 |
Derivative Assets | |||
Derivative assets | 557 | 540 | |
Derivative Liabilities | |||
Derivative Liabilities | 452 | 455 | |
Foreign exchange contracts | |||
Derivative Assets | |||
Derivative assets | 134 | 163 | |
Derivative Liabilities | |||
Derivative Liabilities | 126 | 156 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 8,039 | 8,366 |
Derivative Assets | |||
Derivative assets | 134 | 163 | |
Derivative Liabilities | |||
Derivative Liabilities | 126 | 156 | |
Other contracts | |||
Derivative Assets | |||
Derivative assets | 16 | 8 | |
Derivative Liabilities | |||
Derivative Liabilities | 7 | 5 | |
Other contracts | Derivatives not designated as hedging instruments: | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | [3] | 1,498 | 981 |
Derivative Assets | |||
Derivative assets | 16 | 8 | |
Derivative Liabilities | |||
Derivative Liabilities | $ 7 | $ 5 | |
[1] | Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions. | ||
[2] | The Company also offsets assets and liabilities associated with repurchase agreements on the Consolidated Balance Sheets. See Note 3 “Securities” for further information. | ||
[3] | The notional or contractual amount of interest rate derivatives and foreign exchange contracts is the amount upon which interest and other payments under the contract are based. Notional amounts are typically not exchanged. Therefore, notional amounts should not be taken as the measure of credit or market risk, as they do not measure the true economic risk of these contracts. |
DERIVATIVES - Schedule of Fair
DERIVATIVES - Schedule of Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | $ 65 | $ 32 | $ 33 |
Hedge of interest rate risk | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative | (6) | (2) | (4) |
Hedged Item | 5 | 2 | 4 |
Hedge Ineffectiveness | $ (1) | $ 0 | $ 0 |
DERIVATIVES - Effect of Derivat
DERIVATIVES - Effect of Derivative Instruments on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest expense | $ (508) | $ (452) | $ (363) | |
Amounts reclassified from OCI to other income | 164 | 101 | 389 | |
Amount Reclassified from AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion of (loss) gain recognized in OCI | [1] | (100) | 150 | 334 |
Amount Reclassified from AOCI | Net Unrealized (Losses) Gains on Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts reclassified from OCI to interest income | [2] | 90 | 82 | 72 |
Amounts reclassified from OCI to interest expense | [2] | (27) | (59) | (99) |
Amounts reclassified from OCI to other income | [3] | $ (5) | $ 0 | $ 0 |
[1] | The cumulative effective gains and losses on the Company’s cash flow hedging activities are included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets. | |||
[2] | This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. | |||
[3] | This includes gains and losses attributable to previously hedged cash flow where the likelihood of occurrence is no longer ‘probable’. |
DERIVATIVES - Effect of Custome
DERIVATIVES - Effect of Customer Derivatives and Economic Hedges on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | $ 65 | $ 32 | $ 33 | |
Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | (6) | (2) | (4) | |
Customer derivative contracts | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [1] | (23) | 140 | 240 |
Customer derivative contracts | Other Income | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [2] | (81) | (18) | (59) |
Customer derivative contracts | Mortgage banking fees | Residential loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [3] | (2) | (4) | 6 |
Economic hedges | Other Income | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [1] | 70 | (106) | (209) |
Economic hedges | Foreign exchange and trade finance fees | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [2] | 95 | 19 | 58 |
Economic hedges | Mortgage banking fees | Forward sale contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amounts Recognized in Noninterest Income | [3] | $ 6 | $ 1 | $ (3) |
[1] | Reported in other income on the Consolidated Statements of Operations. | |||
[2] | Reported in foreign exchange and letter of credit fees on the Consolidated Statements of Operations. | |||
[3] | Reported in mortgage banking fees on the Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)counterparty | Dec. 31, 2015USD ($) | Dec. 31, 2003 | |
Letters of Credit [Abstract] | |||
Letters of credit outstanding | $ 3 | $ 3 | |
Risk Participation Agreements [Abstract] | |||
Risk participation agreements | $ 19 | 26 | |
Risk participation agreements number of counterparties | counterparty | 93 | ||
Risk participation agreements, Maximum term | 10 years | ||
Commercial real estate loans held for sale | Purchase commitment | |||
Commitments [Abstract] | |||
Unsettled commercial loan trade purchases | $ 127 | ||
Unsettled commercial loan trade sales | $ 177 | ||
Minimum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, Average term | 1 year | ||
Maximum | |||
Risk Participation Agreements [Abstract] | |||
Risk participation agreements, Average term | 5 years | ||
Marketing rights | |||
Marketing Rights [Abstract] | |||
Commitment period | 25 years | ||
Payments made | $ 3 | $ 3 | |
Remaining obligation due | 44 | ||
Automobile | Minimum | |||
Commitments [Abstract] | |||
Purchase commitment, due after next twelve months | 50 | ||
Automobile | Maximum | |||
Commitments [Abstract] | |||
Purchase commitment, due after next twelve months | $ 200 | ||
Financial standby letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit terms | 10 years | ||
Commercial letters of credit | |||
Letters of Credit [Abstract] | |||
Letters of credit terms | 1 year |
COMMITMENTS AND CONTINGENCIE139
COMMITMENTS AND CONTINGENCIES - Schedule of Outstanding Off-balance sheet Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Commitment amount | $ 62,918 | $ 58,746 |
Undrawn commitments to extend credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 60,872 | 56,524 |
Financial standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 1,892 | 2,010 |
Performance letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 40 | 42 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Commitment amount | 43 | 87 |
Marketing rights | ||
Other Commitments [Line Items] | ||
Commitment amount | 44 | 47 |
Risk participation agreements | ||
Other Commitments [Line Items] | ||
Commitment amount | 19 | 26 |
Residential mortgage loans sold with recourse | ||
Other Commitments [Line Items] | ||
Commitment amount | $ 8 | $ 10 |
DIVESTITURES - Narrative (Detai
DIVESTITURES - Narrative (Details) - Illinois - Disposed of by sale - Retail branches $ in Millions | Jun. 20, 2014USD ($)branch | Dec. 31, 2014USD ($) |
Disposal of Branch Assets and Liabilities [Abstract] | ||
Number of branches sold | branch | 103 | |
Deposit liabilities | $ 4,800 | |
Loans (primarily middle market, small business, home equity and credit card balances) | 1,000 | |
Gain (loss) on sale | 288 | |
Deposits | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | 286 | |
Interest expense on deposits | $ 4 | |
Loans | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | 11 | |
Interest and fee income on loans | $ 20 | |
Other branch assets | ||
Disposal of Branch Assets and Liabilities [Abstract] | ||
Gain (loss) on sale | $ (9) |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial real estate loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans in this portfolio that were 90 days or more past due or nonaccruing | $ 0 | |||
Other noninterest income | 4,000,000 | $ 3,000,000 | $ 1,000,000 | |
Recurring basis | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers from Level 3 to Level 2 | $ 5,000,000 | 0 | 5,000,000 | 0 |
Mortgage banking fees | Residential loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value for loans accounted for under fair value option | $ (5,000,000) | $ (2,000,000) | $ 5,000,000 |
FAIR VALUE MEASUREMENTS - Resid
FAIR VALUE MEASUREMENTS - Residential and Commercial Mortgage Loans Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | $ 583 | $ 325 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 583 | 325 |
Level 2 | Residential loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 504 | 268 |
Aggregate Unpaid Principal | 505 | 263 |
Aggregate Fair Value Less Aggregate Unpaid Principal | (1) | 5 |
Level 2 | Commercial real estate loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Aggregate Fair Value | 79 | 57 |
Aggregate Unpaid Principal | 79 | 57 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | |||
Securities available for sale | [1] | $ 19,501 | $ 17,884 |
Loans held for sale | 583 | 325 | |
Derivative assets | 759 | 807 | |
Money market mutual fund | 91 | 65 | |
Other investments | 5 | 5 | |
Total other investment securities, at fair value | 96 | 70 | |
Total assets | 20,939 | 19,086 | |
Liabilities | |||
Total derivative liabilities | 778 | 666 | |
Total liabilities | 778 | 666 | |
Interest rate swaps | |||
Assets | |||
Derivative assets | 609 | 636 | |
Liabilities | |||
Total derivative liabilities | 645 | 505 | |
Foreign exchange contracts | |||
Assets | |||
Derivative assets | 134 | 163 | |
Liabilities | |||
Total derivative liabilities | 126 | 156 | |
Other contracts | |||
Assets | |||
Derivative assets | 16 | 8 | |
Liabilities | |||
Total derivative liabilities | 7 | 5 | |
Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 19,446 | 17,842 | |
State and political subdivisions | |||
Assets | |||
Securities available for sale | 8 | 9 | |
Equity securities | |||
Assets | |||
Securities available for sale | 17 | 17 | |
U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 30 | 16 | |
Residential loans held for sale | |||
Assets | |||
Loans held for sale | 504 | 268 | |
Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | 79 | 57 | |
Level 1 | |||
Assets | |||
Securities available for sale | 30 | 15 | |
Loans held for sale | 0 | 0 | |
Derivative assets | 0 | 0 | |
Money market mutual fund | 91 | 65 | |
Other investments | 0 | 0 | |
Total other investment securities, at fair value | 91 | 65 | |
Total assets | 121 | 80 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Interest rate swaps | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 1 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 1 | State and political subdivisions | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 1 | Equity securities | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 1 | U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 30 | 15 | |
Level 1 | Residential loans held for sale | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Level 1 | Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Level 2 | |||
Assets | |||
Securities available for sale | 19,471 | 17,869 | |
Loans held for sale | 583 | 325 | |
Derivative assets | 759 | 807 | |
Money market mutual fund | 0 | 0 | |
Other investments | 5 | 5 | |
Total other investment securities, at fair value | 5 | 5 | |
Total assets | 20,818 | 19,006 | |
Liabilities | |||
Total derivative liabilities | 778 | 666 | |
Total liabilities | 778 | 666 | |
Level 2 | Interest rate swaps | |||
Assets | |||
Derivative assets | 609 | 636 | |
Liabilities | |||
Total derivative liabilities | 645 | 505 | |
Level 2 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 134 | 163 | |
Liabilities | |||
Total derivative liabilities | 126 | 156 | |
Level 2 | Other contracts | |||
Assets | |||
Derivative assets | 16 | 8 | |
Liabilities | |||
Total derivative liabilities | 7 | 5 | |
Level 2 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 19,446 | 17,842 | |
Level 2 | State and political subdivisions | |||
Assets | |||
Securities available for sale | 8 | 9 | |
Level 2 | Equity securities | |||
Assets | |||
Securities available for sale | 17 | 17 | |
Level 2 | U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 0 | 1 | |
Level 2 | Residential loans held for sale | |||
Assets | |||
Loans held for sale | 504 | 268 | |
Level 2 | Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | 79 | 57 | |
Level 3 | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivative assets | 0 | 0 | |
Money market mutual fund | 0 | 0 | |
Other investments | 0 | 0 | |
Total other investment securities, at fair value | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 3 | Interest rate swaps | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Foreign exchange contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Other contracts | |||
Assets | |||
Derivative assets | 0 | 0 | |
Liabilities | |||
Total derivative liabilities | 0 | 0 | |
Level 3 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 3 | State and political subdivisions | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 3 | Equity securities | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 3 | U.S. Treasury and other | |||
Assets | |||
Securities available for sale | 0 | 0 | |
Level 3 | Residential loans held for sale | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Level 3 | Commercial real estate loans held for sale | |||
Assets | |||
Loans held for sale | $ 0 | $ 0 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
FAIR VALUE MEASUREMENTS - Sc144
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Purchases, issuances, sales and settlements | $ 0 | $ 0 | $ 0 | |
Recurring basis | Level 3 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning of year balance | 0 | 5 | 5 | |
Net (losses) gains | 0 | 0 | 0 | |
Transfers from Level 3 to Level 2 | $ (5) | 0 | (5) | 0 |
Balance as of period end | 0 | 0 | 5 | |
Net unrealized gain (loss) included in net income for the year relating to assets held at year end | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc145
FAIR VALUE MEASUREMENTS - Schedule of Gain (Loss) on Assets and Liabilities Measured on Nonrecurring Basis Included in Earnings (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired collateral-dependent loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ (33) | $ (32) | $ (101) |
MSRs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | 4 | 9 | 5 |
Foreclosed assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | (3) | (3) | (3) |
Leased assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) included in earnings on assets measured on a nonrecurring basis | $ 11 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc146
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements on a Nonrecurring Basis (Details) - Nonrecurring measurement basis - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | $ 355 | $ 60 |
MSRs | 182 | 178 |
Foreclosed assets | 44 | 42 |
Leased assets | 158 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 0 | 0 |
Foreclosed assets | 0 | 0 |
Leased assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 355 | 60 |
MSRs | 0 | 0 |
Foreclosed assets | 44 | 42 |
Leased assets | 158 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired collateral-dependent loans | 0 | 0 |
MSRs | 182 | 178 |
Foreclosed assets | 0 | 0 |
Leased assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sc147
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | [1] | $ 5,071 | $ 5,258 |
Securities held-to-maturity, fair value | 5,058 | 5,297 | |
Other investment securities, at cost, carrying value | 942 | 863 | |
Other investment securities, at cost, fair value | 942 | 863 | |
Other loans held for sale, carrying value | 42 | 40 | |
Other loans held for sale, fair value | 42 | 40 | |
Loans and leases, carrying value | 107,669 | 99,042 | |
Loans and leases, fair value | 107,537 | 99,026 | |
Deposits, carrying value | 109,804 | 102,539 | |
Deposits, fair value | 109,796 | 102,528 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 1,148 | 802 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 1,148 | 802 | |
Other short-term borrowed funds, carrying value | 3,211 | 2,630 | |
Other short-term borrowed funds, fair value | 3,211 | 2,630 | |
Long-term borrowed funds, carrying value | 12,790 | 9,886 | |
Long-term borrowed funds, fair value | 12,849 | 9,837 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | 0 | 0 | |
Securities held-to-maturity, fair value | 0 | 0 | |
Other investment securities, at cost, carrying value | 0 | 0 | |
Other investment securities, at cost, fair value | 0 | 0 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 0 | 0 | |
Loans and leases, fair value | 0 | 0 | |
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 | |
Other short-term borrowed funds, carrying value | 0 | 0 | |
Other short-term borrowed funds, fair value | 0 | 0 | |
Long-term borrowed funds, carrying value | 0 | 0 | |
Long-term borrowed funds, fair value | 0 | 0 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | 5,071 | 5,258 | |
Securities held-to-maturity, fair value | 5,058 | 5,297 | |
Other investment securities, at cost, carrying value | 942 | 863 | |
Other investment securities, at cost, fair value | 942 | 863 | |
Other loans held for sale, carrying value | 0 | 0 | |
Other loans held for sale, fair value | 0 | 0 | |
Loans and leases, carrying value | 355 | 60 | |
Loans and leases, fair value | 355 | 60 | |
Deposits, carrying value | 109,804 | 102,539 | |
Deposits, fair value | 109,796 | 102,528 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 1,148 | 802 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 1,148 | 802 | |
Other short-term borrowed funds, carrying value | 3,211 | 2,630 | |
Other short-term borrowed funds, fair value | 3,211 | 2,630 | |
Long-term borrowed funds, carrying value | 12,790 | 9,886 | |
Long-term borrowed funds, fair value | 12,849 | 9,837 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity, carrying value | 0 | 0 | |
Securities held-to-maturity, fair value | 0 | 0 | |
Other investment securities, at cost, carrying value | 0 | 0 | |
Other investment securities, at cost, fair value | 0 | 0 | |
Other loans held for sale, carrying value | 42 | 40 | |
Other loans held for sale, fair value | 42 | 40 | |
Loans and leases, carrying value | 107,314 | 98,982 | |
Loans and leases, fair value | 107,182 | 98,966 | |
Deposits, carrying value | 0 | 0 | |
Deposits, fair value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, carrying value | 0 | 0 | |
Federal funds purchased and securities sold under agreements to repurchase, fair value | 0 | 0 | |
Other short-term borrowed funds, carrying value | 0 | 0 | |
Other short-term borrowed funds, fair value | 0 | 0 | |
Long-term borrowed funds, carrying value | 0 | 0 | |
Long-term borrowed funds, fair value | $ 0 | $ 0 | |
[1] | Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. |
REGULATORY MATTERS - Narrative
REGULATORY MATTERS - Narrative (Details) | Jan. 20, 2017$ / shares | Jul. 28, 2016USD ($) | Aug. 03, 2015shares | Apr. 07, 2015shares | Jun. 30, 2017$ / shares | Dec. 31, 2016USD ($)subsidiary$ / shares | Dec. 31, 2016USD ($)subsidiaryshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Jan. 30, 2017USD ($) | Jul. 01, 2016USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Common stock dividends (in dollars per share) | $ / shares | $ 0.12 | ||||||||||
Share repurchase plan, authorized amount | $ 690,000,000 | ||||||||||
Classification under final rule - large non-complex firm total assets | $ 149,520,000,000 | $ 149,520,000,000 | $ 138,208,000,000 | ||||||||
Dividends | $ 241,000,000 | $ 214,000,000 | |||||||||
Treasury stock purchased (in shares) | shares | 9,615,384 | 10,473,397 | 17,300,000 | 20,100,000 | |||||||
Repayments of long-term borrowed funds | $ 500,000,000 | $ 8,429,000,000 | $ 766,000,000 | $ 6,000,000 | |||||||
Preferred stock dividends | $ 14,000,000 | 7,000,000 | |||||||||
Bank subsidiaries | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Number of financial subsidiaries | subsidiary | 2 | 2 | |||||||||
Forecast | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Common stock dividends (in dollars per share) | $ / shares | $ 0.14 | ||||||||||
Increase to common dividends | 17.00% | ||||||||||
Subordinated Debt | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Repayments of long-term borrowed funds | $ 625,000,000 | $ 750,000,000 | |||||||||
2016 CCAR Plan | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Treasury stock purchased (in shares) | shares | 17,332,684 | ||||||||||
Subsequent Event | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Common stock dividends (in dollars per share) | $ / shares | $ 0.14 | ||||||||||
Subsequent Event | Minimum | 2016 CCAR Plan | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Classification under final rule - large non-complex firm total assets | $ 50,000,000,000 | ||||||||||
Subsequent Event | Maximum | 2016 CCAR Plan | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Classification under final rule - large non-complex firm total assets | 250,000,000,000 | ||||||||||
Subsequent Event | Maximum | 2016 CCAR Plan | Nonbank subsidiaries | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Classification under final rule - large non-complex firm total assets | $ 75,000,000,000 |
REGULATORY MATTERS - Capital an
REGULATORY MATTERS - Capital and Capital Ratio Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Common Equity Tier 1 to Risk-Weighted Assets (Amount) | ||||
Actual | [1] | $ 13,822 | [2] | $ 13,389 |
Minimum Capital Adequacy | [1] | 6,348 | [2] | 5,134 |
Classification as Well-capitalized | [1],[3] | $ 8,051 | [2] | $ 7,415 |
Common Equity Tier 1 to Risk-Weighted Assets (Ratio) | ||||
Actual | [1] | 11.20% | [2] | 11.70% |
Minimum Capital Adequacy | [1] | 5.125% | [2] | 4.50% |
Classification as Well-capitalized | [1],[3] | 6.50% | [2] | 6.50% |
Tier 1 Capital to Risk-Weighted Assets (Amount) | ||||
Actual | [4] | $ 14,069 | [2] | $ 13,636 |
Minimum Capital Adequacy | [4] | 8,206 | [2] | 6,845 |
Classification as Well-capitalized | [3],[4] | $ 9,909 | [2] | $ 9,127 |
Tier 1 Capital to Risk-Weighted Assets (Ratio) | ||||
Actual | [4] | 11.40% | [2] | 12.00% |
Minimum Capital Adequacy | [4] | 6.625% | [2] | 6.00% |
Classification as Well-capitalized | [3],[4] | 8.00% | [2] | 8.00% |
Total Capital to Risk-Weighted Assets (Amount) | ||||
Actual | [5] | $ 17,347 | [2] | $ 17,505 |
Minimum Capital Adequacy | [5] | 10,683 | [2] | 9,127 |
Classification as Well-capitalized | [3],[5] | $ 12,386 | [2] | $ 11,408 |
Total Capital to Risk-Weighted Assets (Ratio) | ||||
Actual | [5] | 14.00% | [2] | 15.30% |
Minimum Capital Adequacy | [5] | 8.625% | [2] | 8.00% |
Classification as Well-capitalized | [3],[5] | 10.00% | [2] | 10.00% |
Tier 1 Capital to Average Assets (Leverage) (Amount) | ||||
Actual | [6] | $ 14,069 | $ 13,636 | |
Minimum Capital Adequacy | [6] | 5,667 | 5,218 | |
Classification as Well-capitalized | [3],[6] | $ 7,084 | $ 6,523 | |
Tier 1 Capital to Average Assets (Leverage) (Ratio) | ||||
Actual | [6] | 9.90% | 10.50% | |
Minimum Capital Adequacy | [6] | 4.00% | 4.00% | |
Classification as Well-capitalized | [3],[6] | 5.00% | 5.00% | |
Capital Conservation Buffer | 0.625% | |||
[1] | “Common equity tier 1 capital ratio” represents CET1 capital divided by total risk-weighted assets as defined under Basel III Standardized approach. | |||
[2] | “Minimum Capital ratio” for 2016 includes capital conservation buffer of 0.625%. | |||
[3] | Presented for informational purposes. Prompt corrective action provisions apply only to insured depository institutions-in our case CBNA and CBPA. | |||
[4] | “Tier 1 capital ratio” is tier 1 capital, which includes CET1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under Basel III Standardized approach. | |||
[5] | “Total capital ratio” is total capital divided by total risk-weighted assets as defined under Basel III Standardized approach. | |||
[6] | “Tier 1 leverage ratio” is tier 1 capital divided by quarterly average total assets as defined under Basel III Standardized approach. |
EXIT COSTS AND RESTRUCTURING150
EXIT COSTS AND RESTRUCTURING RESERVES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 0 | $ 26,000,000 | $ 101,000,000 |
Restructuring charges incurred | 2,000,000 | 31,000,000 | 124,000,000 |
Outside Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 8,000,000 | ||
Salaries & Employee Benefits | Salaries & Employee Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1,000,000 | 41,000,000 | |
Restructuring charges incurred | 2,000,000 | 5,000,000 | 43,000,000 |
Occupancy & Equipment | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 17,000,000 | 18,000,000 | |
Restructuring charges incurred | $ 0 | $ 18,000,000 | 24,000,000 |
Occupancy & Equipment | Outside Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 24,000,000 | ||
Building Impairment | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment charges | 6,000,000 | ||
Software expense | Amortization of software | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 6,000,000 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 12,000,000 | ||
Spinoff | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 17,000,000 | ||
Employee Severance | Salaries & Employee Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 3,000,000 | ||
Facility Closing | Occupancy & Equipment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 3,000,000 | ||
Facility Closing | Outside Services | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | 4,000,000 | ||
Facility Closing | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges incurred | $ 7,000,000 |
EXIT COSTS AND RESTRUCTURING151
EXIT COSTS AND RESTRUCTURING RESERVES - Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 33 | $ 44 | $ 26 |
Additions | 2 | 31 | 124 |
Reversals | (2) | (5) | (10) |
Utilization | (23) | (37) | (96) |
Ending balance | 10 | 33 | 44 |
Salaries & Employee Benefits | Salaries & Employee Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 12 | 23 | 2 |
Additions | 2 | 5 | 43 |
Reversals | (2) | (4) | (1) |
Utilization | (11) | (12) | (21) |
Ending balance | 1 | 12 | 23 |
Occupancy & Equipment | Occupancy & Equipment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 16 | 18 | 24 |
Additions | 0 | 18 | 24 |
Reversals | 0 | (1) | (5) |
Utilization | (7) | (19) | (25) |
Ending balance | 9 | 16 | 18 |
Other | Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 5 | 3 | 0 |
Additions | 0 | 8 | 57 |
Reversals | 0 | 0 | (4) |
Utilization | (5) | (6) | (50) |
Ending balance | $ 0 | $ 5 | $ 3 |
RECLASSIFICATIONS OUT OF ACC152
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 19,646 | $ 19,268 | $ 19,196 |
Other-than-temporary impairment not recognized in earnings on securities | (17) | (22) | (22) |
Net other comprehensive (loss) income | (281) | (15) | 276 |
Ending balance | 19,747 | 19,646 | 19,268 |
Net Unrealized (Losses) Gains on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 10 | (69) | (298) |
Other comprehensive income before reclassifications | (62) | 93 | 212 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 |
Amounts reclassified from other comprehensive income | (36) | (14) | 17 |
Net other comprehensive (loss) income | (98) | 79 | 229 |
Ending balance | (88) | 10 | (69) |
Net Unrealized (Losses) Gains on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (28) | 74 | (91) |
Other comprehensive income before reclassifications | (139) | (66) | 198 |
Other-than-temporary impairment not recognized in earnings on securities | (17) | (22) | (22) |
Amounts reclassified from other comprehensive income | (2) | (14) | (11) |
Net other comprehensive (loss) income | (158) | (102) | 165 |
Ending balance | (186) | (28) | 74 |
Employee Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (369) | (377) | (259) |
Other comprehensive income before reclassifications | 0 | 0 | 0 |
Other-than-temporary impairment not recognized in earnings on securities | 0 | 0 | 0 |
Amounts reclassified from other comprehensive income | (25) | 8 | (118) |
Net other comprehensive (loss) income | (25) | 8 | (118) |
Ending balance | (394) | (369) | (377) |
Total AOCI | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (387) | (372) | (648) |
Other comprehensive income before reclassifications | (201) | 27 | 410 |
Other-than-temporary impairment not recognized in earnings on securities | (17) | (22) | (22) |
Amounts reclassified from other comprehensive income | (63) | (20) | (112) |
Net other comprehensive (loss) income | (281) | (15) | 276 |
Ending balance | $ (668) | $ (387) | $ (372) |
RECLASSIFICATIONS OUT OF ACC153
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (508) | $ (452) | $ (363) | |
Net securities impairment losses recognized in earnings | (12) | (7) | (10) | |
Salaries and employee benefits | (1,709) | (1,636) | (1,678) | |
Income before income tax expense | 1,534 | 1,263 | 1,268 | |
Income tax expense | 489 | 423 | 403 | |
NET INCOME | 1,045 | 840 | 865 | |
Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 38 | 17 | 71 | |
NET INCOME | 63 | 20 | 112 | |
Reclassification adjustment for net derivative gains (losses) included in net income: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest income | [1] | 90 | 82 | 72 |
Interest expense | [1] | (27) | (59) | (99) |
Other income | (5) | 0 | 0 | |
Income before income tax expense | 58 | 23 | (27) | |
Income tax expense | 22 | 9 | (10) | |
NET INCOME | 36 | 14 | (17) | |
Reclassification of net securities gains (losses) to net income: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Securities gains, net | 16 | 29 | 28 | |
Net securities impairment losses recognized in earnings | (12) | (7) | (10) | |
Income before income tax expense | 4 | 22 | 18 | |
Income tax expense | 2 | 8 | 7 | |
NET INCOME | 2 | 14 | 11 | |
Reclassification of changes related to employee benefit plans: | Amount Reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | 39 | (8) | 192 | |
Income before income tax expense | 39 | (8) | 192 | |
Income tax expense | 14 | 0 | 74 | |
NET INCOME | $ 25 | $ (8) | $ 118 | |
[1] | This amount includes both (a) the amortization of effective gains and losses associated with the Company’s terminated cash flow hedges and (b) the current reporting period’s interest settlements realized on the Company’s active cash flow hedges. Both (a) and (b) were previously included on the accumulated other comprehensive loss line item on the Consolidated Balance Sheets and were subsequently recorded as adjustments to the interest expense of the underlying hedged item. |
RECLASSIFICATIONS OUT OF ACC154
RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Effects to Net Income of Amounts Reclassified Out of OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | $ 3,758 | $ 3,402 | $ 3,301 |
Provision for credit losses | 369 | 302 | 319 |
Noninterest income | 1,497 | 1,422 | 1,678 |
Noninterest expense | 3,352 | 3,259 | 3,392 |
Income before income tax expense | 1,534 | 1,263 | 1,268 |
Income tax expense | 489 | 423 | 403 |
NET INCOME | 1,045 | 840 | 865 |
Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net interest income | 63 | 23 | (27) |
Noninterest income | (1) | 22 | 18 |
Noninterest expense | (39) | 8 | (192) |
Income tax expense | 38 | 17 | 71 |
NET INCOME | $ 63 | $ 20 | $ 112 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of segments | segment | 2 | ||
Revenues | $ 5,255 | $ 4,824 | $ 4,979 |
Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,326 | 3,108 | 3,050 |
Consumer Banking | Maximum | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25 | ||
Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,754 | $ 1,577 | $ 1,502 |
Commercial Banking | Minimum | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25 | ||
Commercial Banking | Maximum | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,500 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 3,758 | $ 3,402 | $ 3,301 |
Noninterest income | 1,497 | 1,422 | 1,678 |
Total revenue | 5,255 | 4,824 | 4,979 |
Noninterest expense | 3,352 | 3,259 | 3,392 |
Profit (loss) before provision for credit losses | 1,903 | 1,565 | 1,587 |
Provision for credit losses | 369 | 302 | 319 |
Income before income tax expense | 1,534 | 1,263 | 1,268 |
Income tax expense | 489 | 423 | 403 |
NET INCOME | 1,045 | 840 | 865 |
Total average assets | 143,183 | 135,070 | 127,624 |
Consumer Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 2,443 | 2,198 | 2,151 |
Noninterest income | 883 | 910 | 899 |
Total revenue | 3,326 | 3,108 | 3,050 |
Noninterest expense | 2,547 | 2,456 | 2,513 |
Profit (loss) before provision for credit losses | 779 | 652 | 537 |
Provision for credit losses | 243 | 252 | 259 |
Income before income tax expense | 536 | 400 | 278 |
Income tax expense | 191 | 138 | 96 |
NET INCOME | 345 | 262 | 182 |
Total average assets | 56,388 | 52,848 | 48,939 |
Commercial Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 1,288 | 1,162 | 1,073 |
Noninterest income | 466 | 415 | 429 |
Total revenue | 1,754 | 1,577 | 1,502 |
Noninterest expense | 741 | 709 | 652 |
Profit (loss) before provision for credit losses | 1,013 | 868 | 850 |
Provision for credit losses | 47 | (13) | (6) |
Income before income tax expense | 966 | 881 | 856 |
Income tax expense | 335 | 302 | 295 |
NET INCOME | 631 | 579 | 561 |
Total average assets | 47,159 | 42,800 | 38,483 |
Other | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 27 | 42 | 77 |
Noninterest income | 148 | 97 | 350 |
Total revenue | 175 | 139 | 427 |
Noninterest expense | 64 | 94 | 227 |
Profit (loss) before provision for credit losses | 111 | 45 | 200 |
Provision for credit losses | 79 | 63 | 66 |
Income before income tax expense | 32 | (18) | 134 |
Income tax expense | (37) | (17) | 12 |
NET INCOME | 69 | (1) | 122 |
Total average assets | $ 39,636 | $ 39,422 | $ 40,202 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee discount on company stock | 10.00% | ||
Maximum employee salary contribution percentage - ESPP | 10.00% | ||
Maximum employee contribution amount - ESPP | $ 25,000 | ||
Number of shares available for grant | 59,004,280 | ||
Compensation expense related to share-based plans | $ 23,000,000 | $ 24,000,000 | $ 53,000,000 |
Share-based compensation not yet recognized | $ 24,000,000 | ||
Unrecognized compensation expense, weighted-average period of recognition | 2 years | ||
Tax benefit recognized in earnings for share-based compensation arrangements | $ 8,000,000 | $ 5,000,000 | $ 17,000,000 |
2010 Long Term Incentive Plan | Restricted stock units | Vested March 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
2010 Long Term Incentive Plan | Restricted stock units | Vesting March 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 50.00% | ||
2014 Omnibus Incentive Plan | Time-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2014 Omnibus Incentive Plan | Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Citizens Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 1,552,416 | 1,315,572 | 209,099 |
Weighted average grant price (in dollars per share) | $ 24.53 | $ 25.18 | $ 24.87 |
Awards vested (in shares) | 1,762,655 | 2,496,092 | 161,067 |
Weighted average grant price of awards vested (in dollars per share) | $ 22.14 | $ 22.15 | $ 25.07 |
RBS Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (in shares) | 9,627,635 | ||
Weighted average grant price (in dollars per share) | $ 5.48 | ||
Awards vested (in shares) | 6,040,806 | ||
Weighted average grant price of awards vested (in dollars per share) | $ 6.14 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Activity (Details) - Citizens Share Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares Underlying Awards | |||
Nonvested, Beginning of period (in shares) | 3,428,130 | ||
Granted (in shares) | 1,552,416 | 1,315,572 | 209,099 |
Vested (in shares) | (1,762,655) | (2,496,092) | (161,067) |
Forfeited (in shares) | (308,862) | ||
Nonvested, End of period (in shares) | 2,909,029 | 3,428,130 | |
Weighted Average Grant Price | |||
Nonvested, Beginning of period (in dollars per share) | $ 22.43 | ||
Granted (in dollars per share) | 24.53 | $ 25.18 | $ 24.87 |
Vested (in dollars per share) | 22.14 | 22.15 | $ 25.07 |
Forfeited (in dollars per share) | 24.19 | ||
Nonvested, End of period (in dollars per share) | $ 23.92 | $ 22.43 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator (basic and diluted): | |||
Net income | $ 1,045 | $ 840 | $ 865 |
Less: Preferred stock dividends | 14 | 7 | 0 |
Net income available to common stockholders | $ 1,031 | $ 833 | $ 865 |
Denominator: | |||
Weighted-average common shares outstanding - basic (in shares) | 522,093,545 | 535,599,731 | 556,674,146 |
Dilutive common shares: share-based awards (in shares) | 1,837,173 | 2,621,167 | 1,050,790 |
Weighted-average common shares outstanding - diluted (in shares) | 523,930,718 | 538,220,898 | 557,724,936 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.97 | $ 1.55 | $ 1.55 |
Diluted (in dollars per share) | $ 1.97 | $ 1.55 | $ 1.55 |
PARENT COMPANY ONLY FINANCIA160
PARENT COMPANY ONLY FINANCIALS - Condensed Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Income | |||
Total interest income | $ 4,266 | $ 3,854 | $ 3,664 |
Operating expense | |||
Salaries and employee benefits | 1,709 | 1,636 | 1,678 |
Interest expense | 508 | 452 | 363 |
All other expenses | 526 | 530 | 573 |
Applicable income taxes | 489 | 423 | 403 |
NET INCOME | 1,045 | 840 | 865 |
Other comprehensive (loss) income, net of income taxes | |||
Net unrealized derivative instrument (losses) gains arising during the period | (62) | 93 | 212 |
Net unrealized securities (losses) gains arising during the period | (139) | (66) | 198 |
Net other comprehensive (loss) income | (281) | (15) | 276 |
Total other comprehensive (loss) income, net of income taxes | (281) | (15) | 276 |
Total comprehensive income | 764 | 825 | 1,141 |
Payments of ordinary common stock dividends | 241 | 214 | 806 |
Dividends to preferred stockholders | 14 | 7 | |
Parent company | |||
Operating Income | |||
Dividends | 555 | 345 | 595 |
Interest income | 53 | 54 | 29 |
Management and service fees | 26 | 20 | 21 |
Securities gains | 3 | 3 | 0 |
All other operating income | 7 | 4 | 5 |
Total interest income | 644 | 426 | 650 |
Operating expense | |||
Salaries and employee benefits | 37 | 15 | 63 |
Interest expense | 99 | 108 | 80 |
All other expenses | 15 | 38 | 123 |
Total operating expense | 151 | 161 | 266 |
Income before taxes and undistributed income | 493 | 265 | 384 |
Applicable income taxes | (26) | (29) | (77) |
Income before undistributed income of subsidiaries and associated companies | 519 | 294 | 461 |
Equity in undistributed income (losses) of subsidiaries and associated companies | 526 | 546 | 404 |
NET INCOME | 1,045 | 840 | 865 |
Other comprehensive (loss) income, net of income taxes | |||
Net pension plan activity arising during the period | (2) | 1 | 8 |
Net unrealized derivative instrument (losses) gains arising during the period | (8) | 2 | 0 |
Net unrealized securities (losses) gains arising during the period | 0 | (2) | 1 |
Net other comprehensive (loss) income | (10) | 1 | 9 |
Other comprehensive income (loss) activity of Bank subsidiaries, net of income taxes | (271) | (16) | 267 |
Total other comprehensive (loss) income, net of income taxes | (281) | (15) | 276 |
Total comprehensive income | 764 | 825 | 1,141 |
Bank subsidiaries | Parent company | |||
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | 522 | 543 | 402 |
Nonbank subsidiaries | Parent company | |||
Operating expense | |||
Equity in undistributed income (losses) of subsidiaries and associated companies | $ 4 | $ 3 | $ 2 |
PARENT COMPANY ONLY FINANCIA161
PARENT COMPANY ONLY FINANCIALS - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS: | ||||
Cash and due from banks | $ 955 | $ 1,099 | ||
Other assets | 2,993 | 2,841 | ||
TOTAL ASSETS | 149,520 | 138,208 | ||
LIABILITIES: | ||||
Long-term borrowed funds | 12,790 | 9,886 | ||
Other liabilities | 1,447 | 1,490 | ||
TOTAL LIABILITIES | 129,773 | 118,562 | ||
TOTAL STOCKHOLDERS’ EQUITY | 19,747 | 19,646 | $ 19,268 | $ 19,196 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 149,520 | 138,208 | ||
Parent company | ||||
ASSETS: | ||||
Cash and due from banks | 671 | 531 | ||
Other assets | 128 | 160 | ||
TOTAL ASSETS | 22,141 | 22,335 | ||
LIABILITIES: | ||||
Other liabilities | 76 | 93 | ||
TOTAL LIABILITIES | 2,394 | 2,689 | ||
TOTAL STOCKHOLDERS’ EQUITY | 19,747 | 19,646 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 22,141 | 22,335 | ||
Bank subsidiaries | Parent company | ||||
ASSETS: | ||||
Loans and advances | 1,156 | 1,725 | ||
Investments in subsidiaries | 20,116 | 19,865 | ||
Related bank holding companies | Parent company | ||||
ASSETS: | ||||
Loans and advances | 20 | 0 | ||
Unaffiliated companies | Parent company | ||||
LIABILITIES: | ||||
Long-term borrowed funds | 2,318 | 2,595 | ||
Nonbank subsidiaries | Parent company | ||||
ASSETS: | ||||
Investments in subsidiaries | 50 | 54 | ||
LIABILITIES: | ||||
Balances due to nonbank subsidiaries | $ 0 | $ 1 |
PARENT COMPANY ONLY FINANCIA162
PARENT COMPANY ONLY FINANCIALS - Condensed Cash Flow Statements (Details) - USD ($) | Jul. 28, 2016 | Apr. 07, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
OPERATING ACTIVITIES | |||||
Net income | $ 1,045,000,000 | $ 840,000,000 | $ 865,000,000 | ||
Deferred income taxes | 153,000,000 | 249,000,000 | 141,000,000 | ||
Gain on sales of assets | 0 | 0 | 9,000,000 | ||
(Decrease) increase in other liabilities | (59,000,000) | (161,000,000) | 239,000,000 | ||
(Increase) decrease in other assets | (274,000,000) | (467,000,000) | (295,000,000) | ||
Net cash provided by operating activities | 1,490,000,000 | 1,229,000,000 | 1,390,000,000 | ||
INVESTING ACTIVITIES | |||||
Net cash used in investing activities | (11,326,000,000) | (5,905,000,000) | (10,274,000,000) | ||
FINANCING ACTIVITIES | |||||
Proceeds from issuance of long-term borrowed funds | 15,144,000,000 | 6,750,000,000 | 3,249,000,000 | ||
Repayments of long-term borrowed funds | $ (500,000,000) | (8,429,000,000) | (766,000,000) | (6,000,000) | |
Treasury stock purchased | $ (250,000,000) | (430,000,000) | (500,000,000) | (334,000,000) | |
Net proceeds from issuance of preferred stock | 0 | 247,000,000 | 0 | ||
Dividends declared and paid to common stockholders | (241,000,000) | (214,000,000) | (806,000,000) | ||
Dividends declared and paid to preferred stockholders | (14,000,000) | (7,000,000) | 0 | ||
Net cash provided by financing activities | 10,455,000,000 | 4,485,000,000 | 9,403,000,000 | ||
Increase (decrease) in cash and cash equivalents | 619,000,000 | (191,000,000) | 519,000,000 | ||
Cash and cash equivalents at beginning of period | 3,085,000,000 | 3,276,000,000 | 2,757,000,000 | ||
Cash and cash equivalents at end of period | 3,704,000,000 | 3,085,000,000 | 3,276,000,000 | ||
Parent company | |||||
OPERATING ACTIVITIES | |||||
Net income | 1,045,000,000 | 840,000,000 | 865,000,000 | ||
Deferred income taxes | 5,000,000 | 49,000,000 | 27,000,000 | ||
Gain on sales of assets | (3,000,000) | (3,000,000) | 0 | ||
Equity in undistributed (earnings) losses of subsidiaries | (526,000,000) | (546,000,000) | (404,000,000) | ||
(Decrease) increase in other liabilities | (19,000,000) | (48,000,000) | 18,000,000 | ||
(Increase) decrease in other assets | 35,000,000 | (16,000,000) | (74,000,000) | ||
Other operating, net | (4,000,000) | 3,000,000 | 17,000,000 | ||
Total adjustments | (512,000,000) | (561,000,000) | (416,000,000) | ||
Net cash provided by operating activities | 533,000,000 | 279,000,000 | 449,000,000 | ||
INVESTING ACTIVITIES | |||||
Proceeds from sales and maturities of securities available for sale | 0 | 8,000,000 | 0 | ||
Payments for investments in and advances to subsidiaries | (40,000,000) | (215,000,000) | (1,470,000,000) | ||
Sale or repayment of investments in and advances to subsidiaries | 588,000,000 | 376,000,000 | 945,000,000 | ||
Other investing, net | (2,000,000) | 0 | (11,000,000) | ||
Net cash used in investing activities | 546,000,000 | 169,000,000 | (536,000,000) | ||
FINANCING ACTIVITIES | |||||
Proceeds from issuance of long-term borrowed funds | 349,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Repayments of long-term borrowed funds | (625,000,000) | (750,000,000) | 0 | ||
Proceeds from issuance of common stock | 22,000,000 | 27,000,000 | 13,000,000 | ||
Treasury stock purchased | (430,000,000) | (500,000,000) | (334,000,000) | ||
Net proceeds from issuance of preferred stock | 0 | 247,000,000 | 0 | ||
Dividends declared and paid to common stockholders | (241,000,000) | (214,000,000) | (806,000,000) | ||
Dividends declared and paid to preferred stockholders | (14,000,000) | (7,000,000) | 0 | ||
Net cash provided by financing activities | (939,000,000) | (197,000,000) | (127,000,000) | ||
Increase (decrease) in cash and cash equivalents | 140,000,000 | 251,000,000 | (214,000,000) | ||
Cash and cash equivalents at beginning of period | 531,000,000 | 280,000,000 | 494,000,000 | ||
Cash and cash equivalents at end of period | $ 671,000,000 | $ 531,000,000 | $ 280,000,000 |
OTHER OPERATING EXPENSE (Detail
OTHER OPERATING EXPENSE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Deposit insurance | $ 120 | $ 115 | $ 95 |
Promotional expense | 98 | 101 | 86 |
Settlements and operating losses | 62 | 43 | 89 |
Other | 246 | 271 | 303 |
Other operating expense | $ 526 | $ 530 | $ 573 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2017 | Jan. 20, 2017 | Apr. 06, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||
Common stock dividends (in dollars per share) | $ 0.12 | |||||
Preferred stock dividends | $ 14 | $ 7 | ||||
Series A Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, dividend rate | 5.50% | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividends (in dollars per share) | $ 0.14 | |||||
Common stock dividends | $ 72 | |||||
Subsequent Event | Series A Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, dividend rate | 5.50% | |||||
Preferred stock dividend declared (in dollars per share) | $ 27.5 | |||||
Preferred stock dividends | $ 7 |