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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment Portfolio
The table below presents the overview of our investment securities portfolio as of March 31, 2016 and December 31, 2015.
Table 3.1: Overview of Investment Securities Portfolio
(Dollars in millions)
 
March 31, 2016
 
December 31, 2015
Securities available for sale, at fair value
 
$
40,092

 
$
39,061

Securities held to maturity, at carrying value
 
25,080

 
24,619

Total investment securities
 
$
65,172

 
$
63,680
Schedule of Available-for-Sale Securities
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of March 31, 2016 and December 31, 2015.
Table 3.2: Investment Securities Available for Sale
 
 
March 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses(1)
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
4,934

 
$
32

 
$
0

 
$
4,966

RMBS:
 
 
 
 
 
 
 
 
Agency(2)
 
25,187

 
248

 
(68
)
 
25,367

Non-agency
 
2,613

 
314

 
(26
)
 
2,901

Total RMBS
 
27,800

 
562

 
(94
)
 
28,268

CMBS:
 
 
 
 
 
 
 
 
Agency(2)
 
3,732

 
48

 
(25
)
 
3,755

Non-agency
 
1,719

 
35

 
(5
)
 
1,749

Total CMBS
 
5,451

 
83

 
(30
)
 
5,504

Other ABS(3)
 
1,037

 
2

 
(1
)
 
1,038

Other securities(4)
 
317

 
3

 
(4
)
 
316

Total investment securities available for sale
 
$
39,539

 
$
682

 
$
(129
)
 
$
40,092

 
 
December 31, 2015
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses(1)
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
4,664

 
$
5

 
$
(9
)
 
$
4,660

RMBS:
 
 
 
 
 
 
 
 
Agency(2)
 
24,332

 
165

 
(212
)
 
24,285

Non-agency
 
2,680

 
368

 
(22
)
 
3,026

Total RMBS
 
27,012

 
533

 
(234
)
 
27,311

CMBS:
 
 
 
 
 
 
 
 
Agency(2)
 
3,690

 
21

 
(47
)
 
3,664

Non-agency
 
1,723

 
16

 
(24
)
 
1,715

Total CMBS
 
5,413

 
37

 
(71
)
 
5,379

Other ABS(3)
 
1,345

 
1

 
(6
)
 
1,340

Other securities(4)
 
370

 
2

 
(1
)
 
371

Total investment securities available for sale
 
$
38,804

 
$
578

 
$
(321
)
 
$
39,061

__________
(1) 
Includes non-credit-related OTTI that is recorded in accumulated other comprehensive income (“AOCI”) of $25 million and $22 million as of March 31, 2016 and December 31, 2015, respectively. All of this amount is related to non-agency RMBS.
(2) 
Includes Federal National Mortgage Corporation (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Government National Mortgage Association (“Ginnie Mae”).
(3) 
ABS collateralized by credit card loans constituted approximately 65% and 71% of the other ABS portfolio as of March 31, 2016 and December 31, 2015, respectively, and ABS collateralized by auto dealer floor plan inventory loans and leases constituted approximately 16% and 11% of the other ABS portfolio as of March 31, 2016 and December 31, 2015, respectively.
(4) 
Includes foreign government bonds and equity investments.
Investment Securities Held to Maturity
The table below presents the amortized cost, carrying value, gross unrealized gains and losses, and fair value of securities held to maturity as of March 31, 2016 and December 31, 2015.
Table 3.3: Investment Securities Held to Maturity
 
 
March 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Unrealized Losses Recorded in AOCI(1)
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
 
$
199

 
$
0

 
$
199

 
$
1

 
$
0

 
$
200

Agency RMBS
 
22,846

 
(1,018
)
 
21,828

 
1,216

 
(6
)
 
23,038

Agency CMBS
 
3,155

 
(102
)
 
3,053

 
164

 
(1
)
 
3,216

Total investment securities held to maturity
 
$
26,200

 
$
(1,120
)
 
$
25,080

 
$
1,381

 
$
(7
)
 
$
26,454

 
 
December 31, 2015
(Dollars in millions)
 
Amortized
Cost
 
Unrealized
Losses Recorded in AOCI(1)
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities
 
$
199

 
$
0

 
$
199

 
$
0

 
$
(1
)
 
$
198

Agency RMBS
 
22,561

 
(1,048
)
 
21,513

 
692

 
(72
)
 
22,133

Agency CMBS
 
3,012

 
(105
)
 
2,907

 
87

 
(8
)
 
2,986

Total investment securities held to maturity
 
$
25,772

 
$
(1,153
)
 
$
24,619

 
$
779

 
$
(81
)
 
$
25,317

__________
(1) 
Represents the unrealized holding gain or loss at the date of transfer from available for sale to held to maturity, net of any subsequent accretion. Any bonds purchased into the securities held for maturity portfolio rather than transferred, will not have unrealized losses recognized in AOCI.
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position
The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2016 and December 31, 2015.
Table 3.4: Securities in an Unrealized Loss Position
 
 
March 31, 2016
 
 
Less than 12 Months
 
12 Months or Longer
 
Total
(Dollars in millions)
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
0

 
$
0

 
$
1

 
$
0

 
$
1

 
$
0

RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
4,679

 
(22
)
 
4,019

 
(46
)
 
8,698

 
(68
)
Non-agency
 
437

 
(13
)
 
162

 
(13
)
 
599

 
(26
)
Total RMBS
 
5,116

 
(35
)
 
4,181

 
(59
)
 
9,297

 
(94
)
CMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
590

 
(3
)
 
927

 
(22
)
 
1,517

 
(25
)
Non-agency
 
341

 
(2
)
 
229

 
(3
)
 
570

 
(5
)
Total CMBS
 
931

 
(5
)
 
1,156

 
(25
)
 
2,087

 
(30
)
Other ABS
 
368

 
(1
)
 
177

 
0

 
545

 
(1
)
Other securities
 
210

 
(3
)
 
19

 
(1
)
 
229

 
(4
)
Total investment securities available for sale in a gross unrealized loss position
 
$
6,625

 
$
(44
)
 
$
5,534

 
$
(85
)
 
$
12,159

 
$
(129
)
 
 
December 31, 2015
 
 
Less than 12 Months
 
12 Months or Longer
 
Total
(Dollars in millions)
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
3,096

 
$
(9
)
 
$
1

 
$
0

 
$
3,097

 
$
(9
)
RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
12,025

 
(110
)
 
4,420

 
(102
)
 
16,445

 
(212
)
Non-agency
 
355

 
(10
)
 
155

 
(12
)
 
510

 
(22
)
Total RMBS
 
12,380

 
(120
)
 
4,575

 
(114
)
 
16,955

 
(234
)
CMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
1,352

 
(9
)
 
1,148

 
(38
)
 
2,500

 
(47
)
Non-agency
 
739

 
(13
)
 
330

 
(11
)
 
1,069

 
(24
)
Total CMBS
 
2,091

 
(22
)
 
1,478

 
(49
)
 
3,569

 
(71
)
Other ABS
 
825

 
(5
)
 
255

 
(1
)
 
1,080

 
(6
)
Other securities
 
250

 
0

 
19

 
(1
)
 
269

 
(1
)
Total investment securities available for sale in a gross unrealized loss position
 
$
18,642

 
$
(156
)
 
$
6,328

 
$
(165
)
 
$
24,970

 
$
(321
)
Schedule of Contractual Maturities for Securities
Table 3.6: Contractual Maturities of Securities Held to Maturity
 
 
March 31, 2016
 (Dollars in millions)
 
Carrying Value
 
Fair Value
Due after 1 year through 5 years
 
$
199

 
$
200

Due after 5 years through 10 years
 
1,251

 
1,355

Due after 10 years
 
23,630

 
24,899

Total
 
$
25,080

 
$
26,454

The following tables summarize the remaining scheduled contractual maturities, assuming no prepayments, of our investment securities as of March 31, 2016.
Table 3.5: Contractual Maturities of Securities Available for Sale

 
March 31, 2016
 (Dollars in millions)
 
Amortized Cost
 
Fair Value
Due in 1 year or less
 
$
505

 
$
505

Due after 1 year through 5 years
 
5,545

 
5,584

Due after 5 years through 10 years
 
2,194

 
2,234

Due after 10 years(1)
 
31,295

 
31,769

Total
 
$
39,539

 
$
40,092

__________
(1) 
Investments with no stated maturities, which consist of equity securities, are included with contractual maturities due after 10 years.
Schedule of Expected Maturities and Weighted Average Yields of Investment Securities by Major Security Type
The table below summarizes, by major security type, the expected maturities and weighted-average yields of our investment securities as of March 31, 2016.
Table 3.7: Expected Maturities and Weighted-Average Yields of Securities
 
 
March 31, 2016
(Dollars in millions)
 
Due in
1 Year or Less
 
Due > 1 Year
through
5 Years
 
Due > 5 Years
through
10 Years
 
Due > 10 Years
 
Total
Fair value of securities available for sale:
U.S. Treasury securities
 
$
214

 
$
4,233

 
$
519

 
$
0

 
$
4,966

RMBS:
 
 
 
 
 
 
 
 
 
 
Agency
 
323

 
17,587

 
7,457

 
0

 
25,367

Non-agency
 
14

 
851

 
1,535

 
501

 
2,901

Total RMBS
 
337

 
18,438

 
8,992

 
501

 
28,268

CMBS:
 
 
 
 
 
 
 
 
 
 
Agency
 
55

 
1,846

 
1,854

 
0

 
3,755

Non-agency
 
117

 
516

 
1,116

 
0

 
1,749

Total CMBS
 
172

 
2,362

 
2,970

 
0

 
5,504

Other ABS
 
110

 
846

 
82

 
0

 
1,038

Other securities
 
210

 
5

 
0

 
101

 
316

Total securities available for sale
 
$
1,043

 
$
25,884

 
$
12,563

 
$
602

 
$
40,092

Amortized cost of securities available for sale
 
$
1,048

 
$
25,625

 
$
12,295

 
$
571

 
$
39,539

Weighted-average yield for securities available for sale(1)
 
1.03
%
 
2.01
%
 
3.19
%
 
7.40
%
 
2.43
%
Carrying value of securities held to maturity:
U.S. Treasury securities
 
$
0

 
$
199

 
$
0

 
$
0

 
$
199

Agency RMBS
 
7

 
3,705

 
14,583

 
3,533

 
21,828

Agency CMBS
 
0

 
133

 
2,464

 
456

 
3,053

Total securities held to maturity
 
$
7

 
$
4,037

 
$
17,047

 
$
3,989

 
$
25,080

Fair value of securities held to maturity
 
$
7

 
$
4,183

 
$
17,996

 
$
4,268

 
$
26,454

Weighted-average yield for securities held to maturity(1)
 
7.13
%
 
2.71
%
 
2.57
%
 
3.36
%
 
2.72
%
__________
(1) 
The weighted-average yield represents the effective yield for the investment securities and is calculated based on the amortized cost of each security.
Schedule of Credit Losses Related to Debt Securities Recognized in Earnings
The table below presents a rollforward of the credit-related OTTI recognized in earnings for the three months ended March 31, 2016 and 2015 on investment securities for which we had no intent to sell.
Table 3.8: Credit Impairment Rollforward
 
 
Three Months Ended March 31,
(Dollars in millions)
 
2016
 
2015
Credit loss component, beginning of period
 
$
199

 
$
175

Additions:
 
 
 
 
Initial credit impairment
 
0

 
5

Subsequent credit impairment
 
6

 
10

Total additions
 
6

 
15

Reductions due to payoffs, disposals, transfers and other
 
(1
)
 
0

Credit loss component, end of period
 
$
204

 
$
190
Schedule of Gross Realized Gains and Losses on Sale and Redemption of Available-for-Sale Securities Recognized in Earnings
The following table presents the gross realized gains and losses on the sale and redemption of securities available for sale, and the OTTI losses recognized in earnings for the three months ended March 31, 2016 and 2015. We also present the proceeds from the sale of securities available for sale for the periods presented. We did not sell any investment securities that are classified as held to maturity.
Table 3.9: Realized Gains and Losses and OTTI Recognized in Earnings
 
 
Three Months Ended March 31,
(Dollars in millions)
 
2016
 
2015
Realized gains (losses):
 
 
 
 
Gross realized gains
 
$
3

 
$
9

Gross realized losses
 
(3
)
 
(7
)
Net realized gains (losses)
 
0

 
2

OTTI recognized in earnings:
 
 
 
 
Credit-related OTTI
 
(6
)
 
(15
)
Intent-to-sell OTTI
 
(2
)
 
0

Total OTTI recognized in earnings
 
(8
)
 
(15
)
Net securities gains (losses)
 
$
(8
)
 
$
(13
)
Total proceeds from sales
 
$
1,923

 
$
1,342
Schedule of Outstanding Contractual Balance and Carrying Value of Credit-Impaired ING Direct Debt Securities
The table below presents the outstanding balance and carrying value of the acquired credit-impaired debt securities as of March 31, 2016 and December 31, 2015.
Table 3.10: Outstanding Balance and Carrying Value of Acquired Credit-Impaired Debt Securities
(Dollars in millions)
 
March 31, 2016
 
December 31, 2015
Outstanding balance
 
$
3,190

 
$
3,285

Carrying value
 
2,386

 
2,480
Schedule of Changes in Accretable Yield of Acquired Securities
The following table presents changes in the accretable yield related to the acquired credit-impaired debt securities for the three months ended March 31, 2016.
Table 3.11: Changes in the Accretable Yield of Acquired Credit-Impaired Debt Securities
(Dollars in millions)
 
Three Months Ended March 31, 2016
Accretable yield, beginning of period
 
$
1,237

Accretion recognized in earnings
 
(54
)
Net reclassifications from nonaccretable difference
 
62

Accretable yield, end of period
 
$
1,245