SECURITIES (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 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		$15		$—		$—			$15		$16		$—		$—			$16
State and political subdivisions	8		—		—			8		9		—		—			9
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	18,606		362		(12		)	18,956		17,234		153		(67		)	17,320
Other/non-agency	456		2		(29		)	429		555		4		(37		)	522
Total mortgage-backed securities	19,062		364		(41		)	19,385		17,789		157		(104		)	17,842
Total debt securities available for sale	19,085		364		(41		)	19,408		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		$19,102		$364		($41	)		$19,425		$17,831		$157		($104	)		$17,884
Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$4,279		$102		($1	)		$4,380		$4,105		$27		($11	)		$4,121
Other/non-agency	1,010		41		—			1,051		1,153		23		—			1,176
Total securities held to maturity		$5,289		$143		($1	)		$5,431		$5,258		$50		($11	)		$5,297
Other Investment Securities, at Fair Value
Money market mutual fund		$108		$—		$—			$108		$65		$—		$—			$65
Other investments	5		—		—			5		5		—		—			5
Total other investment securities, at fair value		$113		$—		$—			$113		$70		$—		$—			$70
Other Investment Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$468		$—		$—			$468
Federal Home Loan Bank stock	414		—		—			414		395		—		—			395
Total other investment securities, at cost		$877		$—		$—			$877		$863		$—		$—			$863

Other than temporary impairment recognized in earnings

The following table presents the net securities impairment losses recognized in earnings:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2016			2015			2016			2015
Other-than-temporary impairment:
Total other-than-temporary impairment losses		$2			($14	)		($40	)		($46	)
Portions of loss recognized in other comprehensive income (before taxes)	(5		)	12			29			41
Net securities impairment losses recognized in earnings		($3	)		($2	)		($11	)		($5	)

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:

	September 30, 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
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	17		$645		($2	)	29		$704		($11	)	46		$1,349		($13	)
Other/non-agency	4	9		—			20	317		(29		)	24	326		(29		)
Total mortgage-backed securities	21	654		(2		)	49	1,021		(40		)	70	1,675		(42		)
Total	21		$654		($2	)	49		$1,021		($40	)	70		$1,675		($42	)

	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		$—
U.S. 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:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2016			2015			2016			2015
Cumulative balance at beginning of period		$73			$62			$66			$62
Credit impairments recognized in earnings on securities that have been previously impaired	3			2			11			5
Reductions due to increases in cash flow expectations on impaired securities	(1		)	(1		)	(2		)	(4		)
Cumulative balance at end of period		$75			$63			$75			$63

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities 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.

	September 30, 2016
	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		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		8		8
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	10		32		1,546		17,018		18,606
Other/non-agency	—		40		3		413		456
Total debt securities available for sale	25		72		1,549		17,439		19,085
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,279		4,279
Other/non-agency	—		—		—		1,010		1,010
Total debt securities held to maturity	—		—		—		5,289		5,289
Total amortized cost of debt securities		$25		$72		$1,549		$22,728		$24,374
Fair Value:
Debt securities available for sale
U.S. Treasury and other		$15		$—		$—		$—		$15
State and political subdivisions	—		—		—		8		8
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	10		33		1,585		17,328		18,956
Other/non-agency	—		41		3		385		429
Total debt securities available for sale	25		74		1,588		17,721		19,408
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		4,380		4,380
Other/non-agency	—		—		—		1,051		1,051
Total debt securities held to maturity	—		—		—		5,431		5,431
Total fair value of debt securities		$25		$74		$1,588		$23,152		$24,839

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	2016		2015			2016		2015
Gains on sale of debt securities		$—		$7			$13		$29
Losses on sale of debt securities	—		(7		)	—		(12		)
Debt securities gains, net		$—		$—			$13		$17
Equity securities gains		$—		$—			$—		$3

Schedule of financial instruments owned and pledged as collateral

The amortized cost and fair value of securities pledged are presented below:

	September 30, 2016				December 31, 2015
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$795		$808		$805		$808
Pledged against FHLB borrowed funds	1,018		1,060		1,163		1,186
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,247		3,329		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:

	September 30, 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 11 “Derivatives.”