Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Changes in Fair Value of Derivative Instruments

The net gains recognized in income on derivative instruments, net of the impact of offsetting positions, were as follows.

		Three Months Ended June 30,						Six Months Ended June 30,
	Location of Gain/(Loss)	2015			2014			2015			2014
		(Dollars in millions)
U.S. Treasury and euro dollars futures	Net return on mortgage servicing asset	$	(3	)	$	3		$	3		$	6
Swap futures	Net return on mortgage servicing asset	(9		)	—			(8		)	—
Mortgage backed securities forwards	Net return on mortgage servicing asset	(2		)	2			—			4
Rate lock commitments and forward agency and loan sales	Net gain on loan sales	9			(2		)	20			(7		)
Interest rate swaps	Other noninterest income	—			1			—			1
Total derivative gain (loss)		$	(5	)	$	4		$	15		$	4

Schedule of Derivative Financial Instruments

The Company had the following derivative financial instruments.

	Notional Amount		Fair Value		Expiration Dates
	(Dollars in millions)
June 30, 2015
Assets (1)
U.S. Treasury and euro dollar futures	$	552	$	1	2016-2020
Mortgage backed securities forwards	35		—		2016
Swap futures	132		3		2015-2035
Rate lock commitments	4,654		33		2016
Forward agency and loan sales	2,099		14		2016
Interest rate swaps	357		6		2016-2021
Total derivative assets	$	7,829	$	57
Liabilities (2)
U.S. Treasury and euro dollar futures	$	414	$	—	2016-2020
Mortgage backed securities forwards	135		1		2016
Swap futures	25		1		2030-2035
Rate lock commitments	538		3		2016
Forward agency and loan sales	2,326		7		2016
Interest rate swaps	346		6		2016-2021
Total derivative liabilities	$	3,784	$	18
December 31, 2014
Assets (1)
Mortgage servicing rights
U.S. Treasury and euro dollar futures	$	2,530	$	7	2015-2020
Mortgage backed securities forwards	161		2		2015
Rate lock commitments	2,604		31		2015
Forward agency and loan sales	194		—		2015
Interest rate swaps	355		6		2015-2021
Total derivative assets	$	5,844	$	46
Liabilities (2)
Mortgage servicing rights
U.S. Treasury and euro dollar futures	$	687	$	1	2015-2020
Rate lock commitments	22		—		2015
Forward agency and loan sales	2,789		13		2015
Interest rate swaps	367		6		2015-2021
Total derivative liabilities	$	3,865	$	20

(1) Asset derivatives are included in "other assets" on the Consolidated Statements of Financial Condition.

(2) Liability derivatives are included in "other liabilities" on the Consolidated Statements of Financial Condition.

Offsetting of Derivatives

The following tables present the derivatives subject to a master netting arrangement, including the cash pledged as collateral.

	June 30, 2015
							Gross Amounts Not Offset in the Statement of Financial Position
Economic Undesignated Hedges	Gross Amount		Gross Amounts Offset in the Statement of Financial Position		Net Amount Presented in the Statement of Financial Position		Financial Instruments		Cash Collateral		Net Amount
	(Dollars in millions)
Assets
Swap futures	$	4	$	1	$	3	$	—	$	—	$	3
U.S. Treasury swap and euro dollar futures	10		—		10		—		9		1
Interest rate swaps	7		—		7		—		1		6
Total derivative assets	$	21	$	1	$	20	$	—	$	10	$	10
Liabilities
Mortgage backed securities forwards	$	13	$	—	$	13	$	—	$	12	$	1
Interest rate swaps	6		—		6		—		—		6
Total derivative liabilities	$	19	$	—	$	19	$	—	$	12	$	7

	December 31, 2014
							Gross Amounts Not Offset in the Statement of Financial Position
Economic Undesignated Hedges	Gross Amount		Gross Amounts Offset in the Statement of Financial Position		Net Amount Presented in the Statement of Financial Position		Financial Instruments		Cash Collateral		Net Amount
	(Dollars in millions)
Assets
U.S. Treasury swap and euro dollar futures	$	18	$	1	$	17	$	—	$	10	$	7
Mortgage backed securities forwards	26		—		26		—		24		2
Interest rate swaps	8		—		8		—		2		6
Total derivative assets	$	52	$	1	$	51	$	—	$	36	$	15
Liabilities
Interest rate swaps	$	6	$	—	$	6	$	—	$	—	$	6