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SECURITIES (Tables)
 6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Schedule of securities held
The following table provides the major components of securities at amortized cost and fair value:
 
June 30, 2015
 
December 31, 2014
(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

$30


$—


$—


$30

 

$15


$—


$—


$15

State and political subdivisions
9

—

—

9

 
10

—

—

10

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
17,830

227

(56
)
18,001

 
17,683

301

(50
)
17,934

Other/non-agency
631

4

(30
)
605

 
703

4

(35
)
672

Total mortgage-backed securities
18,461

231

(86
)
18,606

 
18,386

305

(85
)
18,606

Total debt securities available for sale
18,500

231

(86
)
18,645

 
18,411

305

(85
)
18,631

Marketable equity securities
5

—

—

5

 
10

3

—

13

Other equity securities
12

—

—

12

 
12

—

—

12

Total equity securities available for sale
17

—

—

17

 
22

3

—

25

Total securities available for sale

$18,517


$231


($86
)

$18,662

 

$18,433


$308


($85
)

$18,656

Securities Held to Maturity
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities

$4,253


$28


($12
)

$4,269

 

$3,728


$22


($31
)

$3,719

Other/non-agency
1,314

28

—

1,342

 
1,420

54

—

1,474

Total securities held to maturity

$5,567


$56


($12
)

$5,611

 

$5,148


$76


($31
)

$5,193

Other Investment Securities
 
 
 
 
 
 
 
 
 
Federal Reserve Bank stock

$468


$—


$—


$468

 

$477


$—


$—


$477

Federal Home Loan Bank stock
393

—

—

393

 
390

—

—

390

Venture capital and other investments
5

—

—

5

 
5

—

—

5

Total other investment securities

$866


$—


$—


$866

 

$872


$—


$—


$872
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 impairment losses (gains) recognized in earnings:

 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in millions)
2015

2014

 
2015

2014

Other-than-temporary impairment:
 
 
 
 
 
Total other-than-temporary impairment losses

($1
)

($5
)
 

($32
)

($39
)
      Portions of loss (gains) recognized in other comprehensive income (before taxes)
(1
)
3

 
29

33

Net impairment losses recognized in earnings

($2
)

($2
)
 

($3
)

($6
)
Schedule of unrealized loss on investments
The following tables summarize those 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:
 
June 30, 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


$—

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
109

5,222

(40
)
 
37

970

(28
)
 
146

6,192

(68
)
Other/non-agency
3

37

(1
)
 
19

398

(29
)
 
22

435

(30
)
Total mortgage-backed securities
112

5,259

(41
)
 
56

1,368

(57
)
 
168

6,627

(98
)
Total
113


$5,268


($41
)
 
56


$1,368


($57
)
 
169


$6,636


($98
)

 
December 31, 2014
 
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


$10


$—

 
1


$10


$—

Mortgage-backed securities:






 






 






Federal agencies and U.S. government sponsored entities
75

3,282

(24
)
 
52

1,766

(57
)
 
127

5,048

(81
)
Other/non-agency
6

80

(2
)
 
17

397

(33
)
 
23

477

(35
)
Total mortgage-backed securities
81

3,362

(26
)
 
69

2,163

(90
)
 
150

5,525

(116
)
Total
81


$3,362


($26
)
 
70


$2,173


($90
)
 
151


$5,535


($116
)
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:

 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2015

2014

 
2015

2014

Cumulative balance at beginning of period

$62


$59

 

$62


$56

Credit impairments recognized in earnings on securities that have been previously impaired
2

2

 
3

6

Reductions due to increases in cash flow expectations on impaired securities
(2
)
(1
)
 
(3
)
(2
)
Cumulative balance at end of period

$62


$60

 

$62


$60
Schedule of investments classified by maturity date
The amortized cost and fair value of debt securities at June 30, 2015 by contractual maturity are shown 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

$30


$—


$—


$—


$30

State and political subdivisions
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

52

2,002

15,776

17,830

Other/non-agency
—

75

13

543

631

Total debt securities available for sale
30

127

2,015

16,328

18,500

Debt securities held to maturity
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

4,253

4,253

Other/non-agency
—

—

—

1,314

1,314

Total debt securities held to maturity
—

—

—

5,567

5,567

Total amortized cost of debt securities

$30


$127


$2,015


$21,895


$24,067

 
 
 
 
 
 
Fair Value:
 
 
 
 
 
Debt securities available for sale
 
 
 
 
 
U.S. Treasury

$30


$—


$—


$—


$30

State and political subdivisions
—

—

—

9

9

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

55

2,014

15,932

18,001

Other/non-agency
—

76

13

516

605

Total debt securities available for sale
30

131

2,027

16,457

18,645

Debt securities held to maturity
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

4,269

4,269

Other/non-agency
—

—

—

1,342

1,342

Total debt securities held to maturity
—

—

—

5,611

5,611

Total fair value of debt securities

$30


$131


$2,027


$22,068


$24,256
Schedule of income recognized on investment securities
The following table reports the amounts recognized in interest income from investment securities on the Consolidated Statements of Operations:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2015

2014

 
2015

2014

Taxable

$155


$154

 

$314


$303

Non-taxable
—

—

 
—

—

Total interest income from investment securities

$155


$154

 

$314


$303


Realized gains and losses on AFS securities are shown below:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
2015

2014

 
2015

2014

Gains on sale of debt securities

$10


$—

 

$22


$25

Losses on sale of debt securities
(1
)
—

 
(5
)
—

Debt securities gains, net

$9


$—

 

$17


$25

Equity securities gains

$1


$—

 

$3


$—
Schedule of financial instruments owned and pledged as collateral
The amortized cost and fair value of securities pledged are shown below:
 
June 30, 2015
 
December 31, 2014
(in millions)
Amortized Cost
Fair Value

 
Amortized Cost
Fair Value

Pledged against repurchase agreements

$3,749


$3,785

 

$3,650


$3,701

Pledged against FHLB borrowed funds
1,254

1,280

 
1,355

1,407

Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law
3,955

4,013

 
3,453

3,520
Schedule of effect of repurchase agreements on balance sheet accounts
The effects of this offsetting on the Consolidated Balance Sheets are presented in the following table:
 
June 30, 2015
 
December 31, 2014
(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 sold under agreements to repurchase

($3,050
)

$—


($3,050
)
 

($2,600
)

$—


($2,600
)

Note: The Company also offsets certain derivative assets and derivative liabilities on the Consolidated Balance Sheets. For further information see Note 12 “Derivatives.”
Securities under agreements to repurchase or resell
The following table presents the Company's related activity, by collateral type and remaining contractual maturity, at June 30, 2015:
 
Remaining Contractual Maturity of the Agreements
(in millions)
Overnight and Continuous
Up to 30 Days
30-90 Days
Greater Than 90 Days
Total

Securities sold under agreements to repurchase
 
 
 
 
 
Mortgage-backed securities - Agency

$—


$250


$1,000


$1,800


$3,050