CASH AND DUE FROM BANKS

12 Months Ended

Dec. 31, 2017

Cash and Cash Equivalents [Abstract]

CASH AND DUE FROM BANKS

CASH AND DUE FROM BANKS

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.

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, 2017 and 2016, the balance of deposits at the FRB amounted to $2.0 billion and $2.7 billion, respectively. Average balances maintained with the FRB during the years ended December 31, 2017, 2016, and 2015 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 150 basis points. The Company recorded interest income on FRB deposits of $16 million, $7 million, and $4 million for the years ended December 31, 2017, 2016, and 2015, respectively, in interest-bearing deposits in banks in the Consolidated Statement of Operations.