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Acquisition, Divestiture, and Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Components of Income (Loss) from Discontinued Operations, Net of Taxes for Education Lending Business
The components of “income (loss) from discontinued operations, net of taxes” for the education lending business are as follows:
 
 
Three months ended September 30,
Nine months ended September 30,
in millions
2016

2015

2016

2015

Net interest income
$
6

$
9

$
20

$
29

Provision for credit losses
1

7

3

9

Net interest income after provision for credit losses
5

2

17

20

Noninterest income
1

(2
)
4

1

Noninterest expense
4

5

13

13

Income (loss) before income taxes
2

(5
)
8

8

Income taxes
1

(2
)
3

3

Income (loss) from discontinued operations, net of taxes (a)
$
1

$
(3
)
$
5

$
5

 
 
 
 
 
 
(a)
Includes after-tax charges of $6 million and $7 million for the three-month periods ended September 30, 2016, and September 30, 2015, respectively, and $18 million for both the nine-month periods ended September 30, 2016, and September 30, 2015, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.
Components of Assets of Education Lending Business
The discontinued assets of our education lending business included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.
 
in millions
September 30, 2016

December 31, 2015

September 30, 2015

Held-to-maturity securities
$
1

$
1

$
1

Portfolio loans at fair value
3

4

—

Loans, net of unearned income (a)
1,625

1,824

1,891

Less: Allowance for loan and lease losses
18

28

23

Net loans
1,610

1,800

1,868

Portfolio loans held for sale at fair value
—

—

169

Accrued income and other assets
28

30

33

Total assets
$
1,639

$
1,831

$
2,071

 
 
 
 
 
(a)
At September 30, 2016, December 31, 2015, and September 30, 2015, unearned income was less than $1 million.
Quantitative Information about Level 3 Fair Value Measurements
The following table shows the significant unobservable inputs used to measure the fair value of the portfolio loans accounted for at fair value as of September 30, 2016, December 31, 2015, and September 30, 2015:
 
September 30, 2016
Fair Value of Level 3
Assets and Liabilities
Valuation
Technique
Significant
Unobservable Input
Range
(Weighted-Average)
dollars in millions
Portfolio loans accounted for at fair value
$
3

Market approach
Indicative bids
84.50-104.00%
December 31, 2015
Fair Value of Level 3
Assets and Liabilities
Valuation
Technique
Significant
Unobservable Input
Range
(Weighted-Average)
dollars in millions
Portfolio loans accounted for at fair value
$
4

Market approach
Indicative bids
84.50-104.00%
September 30, 2015
Fair Value of Level 3
Assets and Liabilities
Valuation
Technique
Significant
Unobservable Input
Range
(Weighted-Average)
dollars in millions
Portfolio loans held for sale accounted for at fair value
$
169

Market approach
Indicative bids
84.50-104.00%
Principal and Fair Value Amounts for Portfolio Loans at Carrying Value, and Portfolio Loans at Fair Value
The following table shows the principal and fair value amounts for our portfolio loans at carrying value and portfolio loans at fair value at September 30, 2016, December 31, 2015, and September 30, 2015. Our policies for determining past due loans, placing loans on nonaccrual, applying payments on nonaccrual loans, and resuming accrual of interest are disclosed in Note 1 (“Summary of Significant Accounting Policies”) under the heading “Nonperforming Loans” beginning on page 121 of our 2015 Form 10-K.
 
 
September 30, 2016
 
December 31, 2015
 
September 30, 2015
in millions
Principal
Fair Value
 
Principal
Fair Value
 
Principal
Fair Value
Portfolio loans at carrying value
 
 
 
 
 
 
 
 
Accruing loans past due 90 days or more
$
23

N/A

 
$
26

N/A

 
$
26

N/A

Loans placed on nonaccrual status
5

N/A

 
8

N/A

 
8

N/A

Portfolio loans at fair value
 
 
 
 
 
 
 
 
Accruing loans past due 90 days or more
—

—

 
$
1

$
1

 
—

—

Portfolio loans held for sale at fair value
 
 
 
 
 
 
 
 
Accruing loans past due 90 days or more
—

—

 
—

—

 
$
5

$
4

 
 
 
 
 
 
 
 
 
Portfolio Loans at Fair Value and Related Contractual Amounts
The following table shows the portfolio loans at fair value and their related contractual amounts as of September 30, 2016, December 31, 2015, and September 30, 2015.
 
 
September 30, 2016
 
December 31, 2015
 
September 30, 2015
in millions
Contractual
Amount
Fair
Value
 
Contractual
Amount
Fair
Value
 
Contractual
Amount
Fair
Value
ASSETS
 
 
 
 
 
 
 
 
Portfolio loans
$
3

$
3

 
$
4

$
4

 
—

—

Portfolio loans held for sale
—

—

 
—

—

 
$
173

$
169

 
 
 
 
 
 
 
 
 
Consolidated Assets at Fair Value on Recurring Basis
The following tables present the assets of the portfolio loans measured at fair value on a recurring basis at September 30, 2016, December 31, 2015, and September 30, 2015.
 
September 30, 2016
 
 
 
 
in millions
Level 1
Level 2
Level 3
Total
ASSETS MEASURED ON A RECURRING BASIS
 
 
 
 
Portfolio loans
—

—

$
3

$
3

Total assets on a recurring basis at fair value
—

—

$
3

$
3

 
 
 
 
 
December 31, 2015
 
 
 
 
in millions
Level 1
Level 2
Level 3
Total
ASSETS MEASURED ON A RECURRING BASIS
 
 
 
 
Portfolio loans
—

—

$
4

$
4

Total assets on a recurring basis at fair value
—

—

$
4

$
4

 
 
 
 
 
September 30, 2015
 
 
 
 
in millions
Level 1
Level 2
Level 3
Total
ASSETS MEASURED ON A RECURRING BASIS
 
 
 
 
Portfolio loans held for sale
—

—

$
169

$
169

Total assets on a recurring basis at fair value
—

—

$
169

$
169

 
 
 
 
 
Change in Fair Values of Level 3 Portfolio Loans Held for Sale, Portfolio Loans, and Consolidated Education Loan Securitization Trusts
The following table shows the change in the fair values of the Level 3 portfolio loans held for sale, portfolio loans, and consolidated education loan securitization trusts for the three- and nine-month periods ended September 30, 2016, and September 30, 2015.
 
in millions
Portfolio Student
Loans Held For Sale

Portfolio Student
Loans

Balance at December 31, 2015
—

$
4

Settlements
—

(1
)
Balance at September 30, 2016 (a)
—

$
3

 
 
 
Balance at June 30, 2016
—

$
3

Settlements
—

—

Balance at September 30, 2016 (a)
—

$
3

 
 
 
Balance at December 31, 2014
—

$
191

Gains (losses) recognized in earnings(b)
$
(4
)
1

Settlements
(6
)
(13
)
Loans transferred to held for sale
179

(179
)
Balance at September 30, 2015 (a)
$
169

—

 
 
 
Balance at June 30, 2015
$
179

—

Gains (losses) recognized in earnings(b)
(4
)
—

Settlements
(6
)
—

Loans transferred to held for sale
—

—

Balance at September 30, 2015 (a)
$
169

—

 
 
 
 
(a)
There were no purchases, sales, issuances, gains (losses) recognized in earnings, transfers into Level 3, or transfers out of Level 3 for the three- and nine-month periods ended September 30, 2016. There were no purchases, sales, issuances, transfers into Level 3, or transfers out of Level 3 for the three- and nine-month periods ended and September 30, 2015.
(b)
Gains (losses) were driven primarily by fair value adjustments.
Components of Assets from Discontinued Operations
The discontinued assets of Austin included on the balance sheet are as follows. There were no discontinued liabilities for the periods presented below.
 
in millions
September 30, 2016

December 31, 2015

September 30, 2015

Cash and due from banks
$
15

$
15

$
15

Total assets
$
15

$
15

$
15

 
 
 
 
Combined Results of Discontinued Operations
The combined results of the discontinued operations are as follows:
 
Three months ended September 30,
 
 
Nine months ended September 30,
 
in millions
2016

2015

 
2016

2015

Net interest income
$
6

$
9

 
$
20

$
29

Provision for credit losses
1

7

 
3

9

Net interest income after provision for credit losses
5

2

 
17

20

Noninterest income
1

(2
)
 
4

1

Noninterest expense
4

5

 
13

13

Income (loss) before income taxes
2

(5
)
 
8

8

Income taxes
1

(2
)
 
3

3

Income (loss) from discontinued operations, net of taxes (a)
$
1

$
(3
)
 
$
5

$
5

 
 
 
 
 
 
 
(a)
Includes after-tax charges of $6 million and $7 million for the three-month periods ended September 30, 2016, and September 30, 2015, respectively, and $18 million for both the nine-month periods ended September 30, 2016, and September 30, 2015, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.
Combined Assets of Discontinued Operations
The combined assets of the discontinued operations are as follows. There were no discontinued liabilities for the periods presented below.
 
in millions
September 30, 2016

December 31, 2015

September 30, 2015

Cash and due from banks
$
15

$
15

$
15

Held-to-maturity securities
1

1

1

Portfolio loans at fair value
3

4

—

Loans, net of unearned income (a)
1,625

1,824

1,891

Less: Allowance for loan and lease losses
18

28

23

Net loans
1,610

1,800

1,868

Portfolio loans held for sale at fair value
—

—

169

Accrued income and other assets
28

30

33

Total assets
$
1,654

$
1,846

$
2,086

 
 
 
 
 
(a)
At September 30, 2016, December 31, 2015, and September 30, 2015, unearned income was less than $1 million.