Acquisition, Divestiture, and Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 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:

Year ended December 31, in millions	2016		2015		2014
Net interest income	$	26	$	36	$	77
Provision for credit losses	13		21		21
Net interest income after provision for credit losses	13		15		56
Noninterest income	6		4		(111		)
Noninterest expense	17		17		24
Income (loss) before income taxes	2		2		(79		)
Income taxes	1		1		(30		)
Income (loss) from discontinued operations, net of taxes (a)	$	1	$	1	$	(49	)

(a) Includes after-tax charges of $24 million, $23 million, and $32 million for the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively, 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.

December 31, in millions	2016		2015
Held-to-maturity securities	$	1	$	1
Portfolio loans at fair value	3		4
Loans, net of unearned income (a)	1,562		1,824
Less: Allowance for loan and lease losses	24		28
Net loans	1,541		1,800
Accrued income and other assets	28		30
Total assets	$	1,570	$	1,831

(a) At December 31, 2016, and December 31, 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 portfolio loans accounted for at fair value at December 31, 2016, and December 31, 2015.

December 31, 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%

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 December 31, 2016, and December 31, 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.”

in millions	December 31, 2016			December 31, 2015
	Principal		Fair Value	Principal		Fair Value
Portfolio loans at carrying value
Accruing loans past due 90 days or more	$	22	N/A	$	26	N/A
Loans placed on nonaccrual status	5		N/A	8		N/A
Portfolio loans at fair value
Accruing loans past due 90 days or more	—		—	$	1	$	1

Portfolio Loans at Fair Value and Related Contractual Amounts

The following table shows the portfolio loans at fair value and their related contractual amounts at December 31, 2016, and December 31, 2015.

in millions	December 31, 2016				December 31, 2015
	Contractual Amount		Fair Value		Contractual Amount		Fair Value
ASSETS
Portfolio loans	$	3	$	3	$	4	$	4

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 December 31, 2016, and December 31, 2015.

December 31, 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

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 years ended December 31, 2016, and December 31, 2015.

in millions	Portfolio Student Loans Held For Sale			Portfolio Student Loans
Balance at December 31, 2014	—			$	191
Gains (losses) recognized in earnings (a)	$	(3	)	1
Sales	(161		)	—
Settlements	(11		)	(13		)
Loans transferred to held for sale	179			(179		)
Loans transferred to portfolio	(4		)	4
Balance at December 31, 2015 (b)	—			$	4
Settlements	—			(1		)
Balance at December 31, 2016 (b)	—			$	3

(a) Gains (losses) were driven primarily by fair value adjustments.

(b) There were no purchases, sales, issuances, gains (losses) recognized in earnings, transfers into Level 3, or transfers out of Level 3 for the years ended December 31, 2016 and December 31, 2015.

Components of Income (Loss) from Discontinued Operations, Net of Taxes

The components of “income (loss) from discontinued operations, net of taxes” for Austin are as follows:

Year ended December 31, in millions	2016	2015	2014
Noninterest expense	—	—	$	4
Income (loss) before income taxes	—	—	(4		)
Income taxes	—	—	(1		)
Income (loss) from discontinued operations, net of taxes	—	—	$	(3	)

The components of “income (loss) from discontinued operations, net of taxes” for Victory, which includes the additional gain recorded as of March 31, 2014, on the sale of this business, are as follows:

Year ended December 31, in millions	2016	2015	2014
Net interest income	—	—	$	12
Noninterest income	—	—	10
Noninterest expense	—	—	1
Income (loss) before income taxes	—	—	21
Income taxes	—	—	8
Income (loss) from discontinued operations, net of taxes	—	—	$	13

Components of Assets and Liabilities 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.

December 31, in millions	2016		2015
Cash and due from banks	$	15	$	15
Total assets	$	15	$	15

Combined Results of Discontinued Operations

The combined results of the discontinued operations are as follows:

Year ended December 31, in millions	2016		2015		2014
Net interest income	$	26	$	36	$	89
Provision for credit losses	13		21		21
Net interest income after provision for credit losses	13		15		68
Noninterest income	6		4		(101		)
Noninterest expense	17		17		29
Income (loss) before income taxes	2		2		(62		)
Income taxes	1		1		(23		)
Income (loss) from discontinued operations, net of taxes (a)	$	1	$	1	$	(39	)

(a) Includes after-tax charges of $24 million, $23 million, and $32 million for the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively, determined by applying a matched funds transfer pricing methodology to the liabilities assumed necessary to support the discontinued operations.

Combined Assets and Liabilities of Discontinued Operations

The combined assets and liabilities of the discontinued operations are as follows:

December 31, in millions	2016		2015
Cash and due from banks	$	15	$	15
Held-to-maturity securities	1		1
Portfolio loans at fair value	3		4
Loans, net of unearned income (a)	1,562		1,824
Less: Allowance for loan and lease losses	24		28
Net loans	1,541		1,800
Accrued income and other assets	28		30
Total assets	$	1,585	$	1,846

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