XML 75 R49.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Investment [Table Text Block]
Our portfolio of securities includes bonds, equity securities, asset-backed securities, commercial and residential mortgage-backed securities, and other investments. The cost, fair value, and gross unrealized gains and losses on investment securities were as follows.
 
 
2017
 
2016


Amortized cost

Gross unrealized

Fair value

Amortized cost

Gross unrealized

Fair
value
December 31, ($ in millions)

gains

losses

gains

losses

Available-for-sale securities
















Debt securities
















U.S. Treasury

$
1,831


$
—


$
(54
)

$
1,777


$
1,680


$
—


$
(60
)

$
1,620

U.S. States and political subdivisions

850


11


(7
)

854


794


7


(19
)

782

Foreign government

153


2


(1
)

154


157


5


—


162

Agency mortgage-backed residential

14,412


35


(156
)

14,291


10,473


29


(212
)

10,290

Mortgage-backed residential
 
2,517

 
11

 
(34
)
 
2,494

 
2,162

 
5

 
(70
)
 
2,097

Mortgage-backed commercial

541


1


(1
)

541


537


2


(2
)

537

Asset-backed

933


4


(1
)

936


1,396


6


(2
)

1,400

Corporate debt

1,262


5


(11
)

1,256


1,452


7


(16
)

1,443

Total debt securities (a) (b)

22,499


69


(265
)

22,303


18,651


61


(381
)

18,331

Equity securities

553


13


(48
)

518


642


7


(54
)

595

Total available-for-sale securities

$
23,052


$
82


$
(313
)

$
22,821


$
19,293


$
68


$
(435
)

$
18,926

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential (c) (d)
 
$
1,863

 
$
3

 
$
(37
)
 
$
1,829

 
$
839

 
$
—

 
$
(50
)
 
$
789

Asset-backed retained notes
 
36

 
—

 
—

 
36

 
—

 
—

 
—

 
—

Total held-to-maturity securities

$
1,899


$
3


$
(37
)

$
1,865


$
839

 
$
—

 
$
(50
)
 
$
789

(a)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $12 million and $14 million at December 31, 2017, and 2016, respectively.
(b)
Investment securities with a fair value of $7,804 million and $4,881 million at December 31, 2017, and 2016, respectively, were pledged to secure advances from the Federal Home Loan Bank (FHLB), short-term borrowings or repurchase agreements, or for other purposes as required by contractual obligation or law. Under these agreements, we have granted the counterparty the right to sell or pledge $1,025 million and $737 million of the underlying investment securities at December 31, 2017, and 2016, respectively.
(c)
Agency mortgage-backed residential debt securities are held for liquidity risk management purposes.
(d)
Securities with a fair value of $664 million and $87 million at December 31, 2017, and 2016, respectively, were pledged to secure advances from the FHLB.
Investments Classified by Contractual Maturity Date [Table Text Block]


Total

Due in one year or less

Due after one year through five years

Due after five years through ten years

Due after ten years
($ in millions)

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield
December 31, 2017




















Fair value of available-for-sale debt securities (a)




















U.S. Treasury

$
1,777


1.7
%

$
—


—
%

$
487


1.7
%

$
1,290


1.8
%

$
—


—
%
U.S. States and political subdivisions

854


2.9


76


1.8


36


2.3


203


2.5


539


3.3

Foreign government

154


2.5


—


—


80


2.5


74


2.4


—


—

Agency mortgage-backed residential
 
14,291

 
3.1

 
—

 
—

 
—

 
—

 
3

 
2.9

 
14,288

 
3.1

Mortgage-backed residential

2,494


3.1


—


—


—


—


—


—


2,494


3.1

Mortgage-backed commercial

541


3.2


—


—


30


3.1


31


3.1


480


3.2

Asset-backed

936


3.1


—


—


698


3.1


106


3.1


132


2.8

Corporate debt

1,256


2.9


140


2.6


513


2.6


564


3.2


39


4.7

Total available-for-sale debt securities

$
22,303


3.0


$
216


2.3


$
1,844


2.5


$
2,271


2.3


$
17,972


3.1

Amortized cost of available-for-sale debt securities

$
22,499




$
217




$
1,852




$
2,314




$
18,116



Amortized cost of held-to-maturity securities
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential
 
$
1,863

 
3.1
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
1,863

 
3.1
%
Asset-backed retained notes
 
36

 
1.7

 
—

 
—

 
35

 
1.7

 
1

 
3.0

 
—

 
—

Total held-to-maturity securities
 
$
1,899

 
3.1

 
$
—

 
—

 
$
35

 
1.7

 
$
1

 
3.0

 
$
1,863

 
3.1

December 31, 2016




















Fair value of available-for-sale debt securities (a)




















U.S. Treasury

$
1,620


1.7
%

$
2


4.6
%

$
60


1.6
%

$
1,558


1.7
%

$
—


—
%
U.S. States and political subdivisions

782


3.1


64


1.7


29


2.3


172


2.8


517


3.4

Foreign government

162


2.6


—


—


58


2.8


104


2.4


—


—

Agency mortgage-backed residential
 
10,290

 
2.9

 
—

 
—

 
—

 
—

 
29

 
2.6

 
10,261

 
2.9

Mortgage-backed residential

2,097


2.9


—


—


—


—


—


—


2,097


2.9

Mortgage-backed commercial

537


2.6


—


—


—


—


3


2.8


534


2.6

Asset-backed

1,400


2.8


—


—


1,059


2.8


143


3.2


198


2.6

Corporate debt

1,443


2.8


72


2.2


840


2.6


489


3.2


42


4.7

Total available-for-sale debt securities

$
18,331


2.8


$
138


2.0


$
2,046


2.7


$
2,498


2.2


$
13,649


2.9

Amortized cost of available-for-sale debt securities

$
18,651





$
138





$
2,040





$
2,563





$
13,910




Amortized cost of held-to-maturity securities (b)

$
839


2.9
%

$
—


—
%

$
—


—
%

$
—


—
%

$
839


2.9
%
(a)
Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
(b)
Our held-to-maturity securities portfolio as of December 31, 2016, consisted of agency mortgage-backed residential debt securities.
Investment Income [Table Text Block]
The following table presents interest and dividends on investment securities.
Year ended December 31, ($ in millions)
2017
 
2016
 
2015
Taxable interest
$
534

 
$
375

 
$
340

Taxable dividends
12

 
17

 
23

Interest and dividends exempt from U.S. federal income tax
22

 
19

 
18

Interest and dividends on investment securities
$
568

 
$
411

 
$
381
Schedule of Realized Gain (Loss) [Table Text Block]
The following table presents gross gains and losses realized upon the sales of available-for-sale securities and other-than-temporary impairment.
Year ended December 31, ($ in millions)
2017
 
2016
 
2015
Gross realized gains
$
106

 
$
187

 
$
184

Gross realized losses (a)
(4
)
 
(2
)
 
(15
)
Other-than-temporary impairment
—

 
—

 
(14
)
Other gain on investments, net
$
102

 
$
185

 
$
155

(a)
Certain available-for-sale securities were sold at a loss in 2017, 2016, and 2015 as a result of market conditions within these respective periods (e.g., a downgrade in the rating of a debt security). Any such sales were made in accordance with our risk management policies and practices.
Schedule of Unrealized Loss on Investments [Table Text Block]
The table below summarizes available-for-sale securities in an unrealized loss position in accumulated other comprehensive income. Based on the assessment of whether such losses were deemed to be other-than-temporary, we believe that the unrealized losses are not indicative of an other-than-temporary impairment of these securities. As of December 31, 2017, we did not have the intent to sell the debt securities with an unrealized loss position in accumulated other comprehensive income, it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis, and we expect to recover the entire amortized cost basis of the securities. As of December 31, 2017, we had the ability and intent to hold equity securities with an unrealized loss position in accumulated other comprehensive income, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. As a result, we believe that the securities with an unrealized loss position in accumulated other comprehensive income are not considered to be other-than-temporarily impaired at December 31, 2017. Refer to Note 1 for additional information related to investment securities and our methodology for evaluating potential other-than-temporary impairments.
 
 
2017
 
2016


Less than 12 months

12 months or longer

Less than 12 months

12 months or longer
December 31, ($ in millions)

Fair value

Unrealized loss

Fair value

Unrealized loss

Fair value

Unrealized loss

Fair value

Unrealized loss
Available-for-sale securities
















Debt securities
















U.S. Treasury

$
471


$
(8
)

$
1,305


$
(46
)

$
1,612


$
(60
)

$
—


$
—

U.S. States and political subdivisions

242


(2
)

183


(5
)

524


(19
)

—


—

Foreign government

80


(1
)

4


—


38


—


—


—

Agency mortgage-backed residential
 
4,066

 
(19
)
 
5,671

 
(137
)
 
8,052

 
(196
)
 
587

 
(16
)
Mortgage-backed residential

857


(2
)

773


(32
)

813


(17
)

860


(53
)
Mortgage-backed commercial
 
76

 
(1
)
 
21

 
—

 
47

 
(1
)
 
149

 
(1
)
Asset-backed

220


(1
)

91


—


375


(2
)

127


—

Corporate debt

529


(4
)

194


(7
)

744


(14
)

46


(2
)
Total temporarily impaired debt securities

6,541


(38
)

8,242


(227
)

12,205


(309
)

1,769


(72
)
Temporarily impaired equity securities

126


(12
)

116


(36
)

151


(8
)

269


(46
)
Total temporarily impaired available-for-sale securities

$
6,667


$
(50
)

$
8,358


$
(263
)

$
12,356


$
(317
)

$
2,038


$
(118
)